GIST OF RECENT PRONOUNCEMENTS ON GST (PART-XV)

[Dr. Sanjiv Agarwal]

Goods and Services Tax (GST), introduced from July 1, 2017 is more than one year old now but has resulted in operational and implementation disruptions affecting all stakeholders.  GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council his however, making regular changes to fix the anomalies and hardships faced by taxpayers.

Taxpayers have already challenged various provisions of GST laws and rules framed thereunder with about 200 writs being filed in different courts. High courts and Supreme court have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBIC may move to Supreme court where the verdict is against the Government. Recently, CBIC has issued directions to be officers to defend the writs. Further, we have now rulings from Authority for Advance Ruling and Anti-profiteering Authority also. Even the orders from Appellate Authority for Advance Ruling have also started pouring in.

Here are few more judicial pronouncements for information and guidance of various stakeholders. It is expected that the litigation by way of writs is bound to go up as time passes by unless the Government comes out with proactive approach and solutions.

• In Rajan Joseph v. Assistant State Tax Officer, Kollam 2018 (6) TMI 620 - KERALA HIGH COURT, where Competent Authority had detained goods of assessee under section 129 of Central Goods and Services Tax Act as also Kerala State Goods and Services Tax Act, said authority was directed to complete adjudication provided for under section 129 within a week and release goods, if assessee complies with rule 140(1) of Kerala State Goods and Services Tax Rules.

• In New Shiva Transport Service v. State of U.P 2018 (6) TMI 425 - ALLAHABAD HIGH COURT, where Competent Authority had seized goods of assessee under transport as well as vehicle on account of non filing of Part-B of E-way bill, said authority was directed to release goods and vehicle on assessee furnishing security other than cash or bank guarantee equivalent to proposed tax.

• In Shri Ram Tiles & Sanitary Ware v. Union of India 2018 (6) TMI 110 - PUNJAB AND HARYANA HIGH COURT, where assessee filed writ petition seeking relief in regard to online submission of GST TRAN-1 and subsequently prayed that it may be allowed to withdraw petition with liberty to raise a notice of demand before Concerned Authority, assessee was permitted to raise a notice of demand within two weeks, which shall be decided by Concerned Authority within a period of next two weeks.

• In Manjunathaa Rock Drills v. Assistant State Tax Officer 2018 (5) TMI 1736 - KERALA HIGH COURT , where Assessee purchased certain goods from State of Tamil Nadu and transported same to a dealer in State of Kerala and Competent Authority of Kerala State Goods and Services Tax Department detained said goods under section 129 of Kerala State GST Act and issued on assessee a notice. Assessee filed writ petition seeking appropriate directions to Competent Authority to complete adjudication provided for under section 129 in respect of goods detained, said authority was directed to complete adjudication within two weeks.

• In J.V.D. Cera Coating and Colours (P.) Ltd. v. State of U.P 2018 (5) TMI 1703 - ALLAHABAD HIGH COURT , where Competent Authority, exercising under section 67(2) of U.P. GST Act, had conducted search on assessee and seized goods and thereafter passed an order under section 67(6) directing assessee to deposit tax and penalty to extent of ₹ 9.53 lakhs, said authority was directed to release goods on assessee depositing ₹ 3 lakhs and furnishing security for balance amount.

• In Indo Alusys Industries Ltd. v. Commissioner of Central Excise, Alwar 2018 (6) TMI 78 - CESTAT NEW DELHI , where assessee was engaged in manufacture of Aluminium Hollow Sections and it sold said item and paid duty on value and subsequently it raised supplementary invoice on account of price variation and paid duty, it was held that no interest shall be payable on delayed payment of duty on account of supplementary invoice.