Indirect Tax Case laws - DEC 23.

 ·       Supreme court further dismiss SLP against decision of Calcutta High court given to Suncraft Energy which quashed demand of ITC against service recipient for mismatch in GSTR 2A and GSTR 3B in the absence of any investigation done at the end of supplier.

 

·       Kerala High court in the case of Josco Bullion held that when the issue before the Central GST and the State GST were not one and same. Therefore, the bar thus created under Section 6 will not come into play & hence state GST can open the matter which was not considered by central government.

 

·       Karnataka HC in the case of United Breweries grants ad-interim stay in a writ challenging show cause notice  seeking to levy GST on salary and other costs incurred by Head Office (HO) alleging that such costs incurred at HO amount to a service being provided to Branch Offices (Bos).

 

·       Delhi HC holds Tax Research Unit of the Department of Revenue lacks authority to issue GST circulars. 

 

·       Chennai High court in the case of Caterpillar India held that recovery can’t be made directly due to difference in GSTR-1 & GSTR-3B without following the procedure under Rule 88C of the CGST Rules, 2017. 

 

·       Madras High Court in the case of Lenovo India held that time limit of 2 years for filing refund claims under section 54(1) is to be considered directory and not mandatory. The judgment emphasizes the crucial distinction between the use of the terms "may" and "shall" in Section 54(1), indicating a discretionary rather than obligatory nature.

 

·       Bombay HC in the case of Star engineers  directed  GST authorities to permit petitioner to rectify Form GSTR-1 either through online or manual mode for F.Y 2021-22.

 

·       Telengana AAR in the case of Geekay wires Ltd held that ITC required to be reversed on inputs/finished goods lost in fire accident, steel scrap sold in open market.

 

The AAAR, Gujarat in the case of M/s. The Varachha Co-Op. Bank Ltd. observed that items like the Central Air Conditioning Plant, Lift, Electrical Fittings, and Fire Safety Extinguishers were categorized as immovable property, thereby making them ineligible for Input Tax Credit (“ITC”)