Input tax credit - blocked-credit exclusions, specificity and burden of proof - Valuation of taxable supply - cess included in transaction value - Interest on wrongly availed and utilised input tax credit - Penalty for ineligible input tax credit Input tax credit - blocked-credit exclusions and burden of proof - Specificity of blocked-credit disallowance - Eligibility of input tax credit on brick-kiln-related vehicles, tyres and tubes, building materials, clothing gifts, food and catering, tr... ... ...

Input tax credit - retrospective extension of time for availment - GSTR-3B as return u/s 39 - Availment and utilisation of input tax credit - GSTR-9/GSTR-9C disclosure - effect on input tax credit - Show-cause notice - prohibition against new grounds of demand Sustaining a time-barred input tax credit demand on alleged non-receipt of supplies or non-payment of tax by suppliers when those grounds were absent from the show-cause notice and original adjudication - HELD THAT: - The original disal... ... ...

Invocation of section 74(1) for delayed GST payment - Foundational facts of fraud, wilful misstatement or suppression - HELD THAT: - The statutory power is conditioned on the notice disclosing foundational facts from which fraud, wilful misstatement or suppression with intent to evade tax may be inferred; a mechanical recital of those expressions is insufficient. As the show cause notice did not contain such foundational facts, it did not warrant invocation of section 74(1). [Paras 13] The... ... ...

Mandatory pre-movement e-way bill compliance - Detention and penalty for goods in transit without prescribed documents - Post-interception generation of transport documents Validity of penalty under section 129 for transportation of copper scrap without a tax invoice and e-way bill, where the documents were generated after interception - HELD THAT: - The statutory scheme requires generation of the e-way bill before commencement of movement and requires the person in charge of the conveyance t... ... ...

Penalty u/s 129 for misdescription of goods in transit documents - Post-interception generation of invoice and e-way bill Misdescription of goods in invoice and e-way bill - Intent to evade tax - Liability to tax and penalty for transporting copper scrap under an invoice and e-way bill describing aluminium scrap - HELD THAT: - The Tribunal found that separately identifiable, higher-value copper scrap had been carried in bags under loose aluminium scrap, whereas the contemporaneous transit doc... ... ...

Refund of unutilised input tax credit under inverted duty structure - CBIC circulars cannot curtail statutory refund entitlement Refund of unutilised ITC on sulphur supplied in customised packets, where packing materials attracted a higher rate of GST than the outward supply, notwithstanding CBIC circulars referring to identical input and output supplies - HELD THAT: - The packing materials were inputs used for making bulk sulphur marketable in customised packets and attracted a higher rate o... ... ...

Inverted-duty-structure refund on high-tax packaging inputs - Statutory refund entitlement prevailing over restrictive CBIC circulars Refund of accumulated ITC on packaging materials used for outward supply of sulphur in customised packets under an inverted duty structure, notwithstanding CBIC circulars treating input and output supplies as the same - HELD THAT: - The packing materials, being used for making sulphur marketable in customised packets, qualified as inputs and attracted a higher ... ... ...

Seizure of money and securities during GST search - Interpretation of goods and things under GST search-and-seizure power - Power under Section 67(2) of the CGST Act to seize cash and securities found during search - HELD THAT: - The statutory scheme draws a deliberate distinction between goods, money and things. Goods expressly excludes money and securities, while money is separately defined. In the absence of any definition extending things to money, the residuary expression cannot be construe... ... ...

Fresh GST registration - impossible condition of return filing Rejection of fresh GST registration for non-filing of returns after expiry of the statutory period for filing them - HELD THAT: - The prescribed period for furnishing the returns had elapsed, and it was not controverted that no notification extending that period had been issued. A person cannot be compelled to perform an impossible task; consequently, rejection of registration on that ground was unsustainable. [Paras 5] The rej... ... ...

Input tax credit conditional upon actual payment of tax by supplier - Insolvency proceedings and statutory input tax credit condition Mandatory tax-payment condition for input tax credit - Entitlement to input tax credit where the supplier has not actually paid the tax charged on the supply to the Government - HELD THAT: - Actual payment of the tax charged to the Government, subject to the statutory framework governing input tax credit, was held to be a mandatory condition. The Court accepted... ... ...

Doctrine of merger - time-barred statutory appeal - GST registration cancellation - further opportunity for bona fide non-response to show-cause notice Doctrine of merger - time-barred statutory appeal - Writ jurisdiction against GST-registration cancellation - Effect of dismissal of the statutory appeal as time-barred on merger of the original GST-registration cancellation order and exercise of writ jurisdiction - HELD THAT: - A summary rejection of the appeal on limitation did not result in... ... ...

Adjudication beyond show cause notice - Demand exceeding show cause notice - Adjudication on grounds not specified in notice Validity of the GST adjudication order determining tax, interest and penalty beyond the amount and grounds specified in the show cause cum demand notice - HELD THAT: - The Court held that the total demand determined in an adjudication order cannot exceed the amount specified in the show cause cum demand notice, and no demand can be confirmed on grounds other than those ... ... ...

Electronic Cash Ledger-payment of GST liability - Interest on delayed payment of GST - Natural justice in recovery of GST interest lectronic Cash Ledger-payment of GST liability - Interest on delayed payment of GST - Whether Deposit of self-assessed GST in the Electronic Cash Ledger, without debit towards the December 2018 liability, did not discharge that liability for the purpose of interest under Section 50(1) of the CGST Act? - HELD THAT: - The statutory scheme distinguishes credit of a d... ... ...

Seizure of cash u/s 67 of the CGST Act - Interest on illegally withheld cash - Return of seized electronic devices and bank card after issuance of show-cause notice Seizure of cash u/s 67 of the CGST Act - Interest on illegally withheld cash - Legality of seizure of cash during a search under section 67 of the CGST Act and entitlement to interest after its refund - HELD THAT: - Applying the views of the Delhi and Karnataka High Courts Deepak Khandelwal [2023 (8) TMI 929 - DELHI HIGH COURT] an... ... ...

Blocking of input tax credit - Genuineness of supplier transactions - Continuation of blocked input tax credit claimed on invoices of an allegedly fictitious supplier - HELD THAT: - The material on record undermined the contention that no prior opportunity had been given. However, the assertion that the supplier was registered and that the transactions could be supported by valid invoices and banking-channel payments warranted an opportunity for the petitioner to submit a detailed response and s... ... ...

Retention of seized mobile phones and bank debit cards beyond six months - Continued detention of seized mobile phones and bank debit cards in the absence of an order extending the seizure HELD THAT: - It was conceded that no order extending the seizure had been made. Consequently, under Section 67(7) of the CGST Act, the articles could no longer be retained under seizure. [Paras 3, 4] The Investigating Officer was directed to forthwith return the seized articles to the petitioner upon pro... ... ...

Input tax credit claimed in belated GSTR-3B returns - Reconsideration under inserted Section 65 of the CGST/KGST Act HELD THAT: - In view of the insertion of Section 65 and the admitted position that the returns had been filed before the cut-off envisaged by that provision, the claim required re-examination under the inserted provision. [Paras 4] The adjudication order and consequential garnishee notice were quashed, and the proceedings were restored to the stage of response to the show-ca... ... ...

Electronic service after cancellation of GST registration - Opportunity of hearing in GST adjudication - Validity of ex parte GST adjudication where the show-cause notice, issued after cancellation of registration, was served only through the Common Portal HELD THAT: - After cancellation of registration, the registered person may neither access nor remain obliged to access the Common Portal and may consequently remain unaware of proceedings initiated thereafter. The Commissioner's binding... ... ...

Opportunity of hearing in GST appellate proceedings - disposal of the GST appeal where no hearing was afforded after issuance of a subsequent hearing notice HELD THAT: - Following transfer of the appeal, a fresh hearing notice was issued and an adjournment was sought on the scheduled date. As no hearing was held thereafter, while the impugned order was passed pursuant to an earlier hearing, the appeal required reconsideration after affording the petitioner an opportunity of hearing. [Paras 6]... ... ...

Demand beyond show-cause notice under GST - scope of Section 75(7) of the Goods and Services Tax Act, 2017 - HELD THAT: - Section 75(7) prohibits an order from demanding tax, interest and penalty in excess of the amount specified in the notice, and from confirming a demand on grounds other than those specified therein. The impugned demand, being substantially in excess of the composite demand proposed in the show-cause notice, was ex facie contrary to that statutory limitation. [Paras 8, 9, 1... ... ...