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Latest High Court Ruling on Tax Matters

01 May, 2024 • Admin
Latest High Court Ruling on Tax Matters
1. Gauhati High Court Ruling on Input Tax Credit (ITC) Case: M/s Narayan Enterprise vs. Union of India Key Issue: Denial of Input Tax Credit (ITC) to a bona fide buyer due to non-payment of tax by the supplier. High Court Order: Held that if the purchasing dealer possesses a valid Tax Invoice, has received the goods, and made payments through banking channels, ITC cannot be denied solely due to a default committed by the supplier. 2. Calcutta High Court Ruling on Retrospective Cancellation Case: Shyamalmay Paul vs. Assistant Commissioner, SGST Key Issue: Disallowance of ITC to a genuine buyer on account of the retrospective cancellation of the supplier’s GST registration. High Court Order: Ruled that retrospective cancellation of a supplier's GST registration cannot be the sole ground to penalize or deny ITC to a bona fide buyer who complied with Section 16(2) at the time of the transaction. 3. High Court Rulings on Section 148 Reassessment Notices Key Issue: Issuance of reassessment notices under Section 148/148A without adhering to statutory time limits or procedural mandates. High Court Order: Reaffirmed that reassessment proceedings initiated without providing a proper opportunity of hearing under Section 148A(b) or issued beyond the statutory limitation period are legally unsustainable and liable to be quashed. 4. Madras High Court Ruling on Non-Filing vs. Late Filing Key Issue: Levying both Late Fees and General Penalty simultaneously for non-filing of GSTR-9 (Annual Return). High Court Order: Upheld that late fees under Section 47(2) apply not only to delayed filings but also to non-filing, and the imposition of a general penalty under Section 125 alongside late fees is legally valid.