Bombay HC Allows Cross-State ITC Transfer on Amalgamation 1. Issue Involved The core issue in this case was whether Input Tax Credit (ITC) lying unutilized in the electronic credit ledger of a company registered in one state (Goa) can be legally transferred to another company registered in a different state (Maharashtra) upon amalgamation, under Section 18(3) of the Central Goods and Services Tax Act, 2017 (CGST Act), and Rule 41 of the CGST Rules, 2017. The GST portal restricted this transfer on the ground that both transferor and transferee must be…

Allahabad HC Quashes GST Assessment for Lack of Notice 1. Issue Involved The primary issue in the case was whether the assessment order passed under Section 62 of the GST Act was legally sustainable when the mandatory notice under Section 46 was not served upon the petitioner, and when the assessment order lacked any reasoning or reference to supporting material. Additionally, the case also involved the legality of the appellate authority dismissing the appeal on the ground of limitation, without addressing the fundamental procedural lapses in the original assessment. Facts of…

Bombay High Court Quashes GST Bank Recovery Notice Under Section 79 1. Issue Involved The core issue involved in this writ petition was whether a notice for recovery of tax dues under Section 79(1)(c) of the CGST Act, 2017, can be directly issued to a third party (i.e., a bank) in Form DRC-13, without first issuing any notice or intimation to the person from whom such dues are allegedly recoverable. The petitioner challenged the legality and validity of such a notice, asserting that the mandatory procedural requirements under the CGST Act…

Allahabad HC: Patanjali GST Penalty Proceedings Under Section 122 1. Issue Involved Whether penalty proceedings under Section 122 of the CGST Act, 2017, can be initiated independently and simultaneously with proceedings under Section 74 of the CGST Act?Whether the dropping of tax demand and penalty under Section 74 automatically results in abatement or invalidation of penalty proceedings under Section 122?Whether the penalty under Section 122 is civil in nature and adjudicable by departmental officers, or whether it is criminal and triable only by a magistrate under Section 134? Facts of…

Patna HC: ITC Allowed in Bill-to-Ship-to GST Transactions 1. Issue Involved Whether Input Tax Credit (ITC) under Section 16(2)(b) of the CGST/BGST Act, 2017 can be denied on the ground that physical receipt of goods by the registered person (dealer) did not occur, even though:The supplier delivered the goods directly to the end customer on the instructions of the dealer, andThe tax was duly paid by the supplier to the Government. Facts of the Case The petitioners were registered dealers engaged in the trading of various goods (e.g., electronics, lifestyle…

Kerala HC Strikes Down GST on Clubs & Associations: IMA Case 1. Issue Involved This case revolved around the following key constitutional and tax law issues:Constitutional Validity of GST Provisions:Whether Section 2(17)(e), Section 7(1)(aa) and the Explanation thereto under the CGST Act, 2017 and KGST Act, 2017 — which deem that services provided by a club/association to its members constitute "supply" — are constitutionally valid.Principle of Mutuality:Whether services provided by a mutual organisation like the Indian Medical Association (IMA) to its own members can be taxed under GST, considering the…

Madras HC: Mere GST Portal Upload Not Valid Service of Notice 1. Issue Involved The primary issue before the court was:Whether mere uploading of notices/orders on the GST portal satisfies the service requirements under Section 169 of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017, or whether additional modes of service must be followed to ensure compliance with principles of natural justice.The petitioners argued that they were unaware of the notices/orders uploaded on the GST portal due to a lack of communication, while the respondents contended that service…

Kerala HC on GST: Unsigned Assessment Orders Not Legally Valid | Fortune Service Case 2024 1. Issue Involved The primary issue before the court was:Whether an order issued under Section 73 of the CGST/SGST Acts must bear the digital or manual signature of the issuing officer to be considered legally valid and enforceable.The petitioners contended that the assessment orders issued against them were unsigned, making them invalid under the law. The tax authorities defended their actions, stating that the orders were uploaded on the GST portal, which they claimed was…