TaxTMI 
TaxTMI 
TaxTMI 
Know Your Limits. Part 8. ( a series under GST)
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....now Your Limits. Part 8. ( a series under GST)<br>By: - K Balasubramanian<br>Goods and Services Tax - GST<br>Dated:- 6-8-2025<br>1. The law has given certain powers to the tax officials to ensure that taxes, as payable as per law, are duly paid to the Government without any evasion. It does not mean that the tax officers have unlimited powers and they may traverse beyond the legal provision....
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....s. One such event happened recently on which the Delhi High Court has intervened in the most appropriate time to save justice to the common man from tax authorities. 2. Interestingly, as against the taxpayer alone, the dealing advocate is also summoned by the GST officials for personal appearance before them. While it is not clear as to whether the GST officials have some material evidence to con....
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....clude that the advocate also has joined the tax payer in collusion, the premises of the dealing advocate was also raided and material evidences, belonging to other clients were also taken away by the tax officials. Under these circumstances, left with no option, the advocate was forced to know the doors of the jurisdictional High Court at the eleventh hour. 3. The Division Bench in W P Civil 1102....
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....1 of 2025 on 28/07/2025 in the matter of Puneet Batra Versus Union Of India & Ors. - 2025 (8) TMI 311 - DELHI HIGH COURT intervened and ordered for additional information to proceed further in the matter. 4. The observations of the Delhi High court are furnished below in the same language: 5. Considering the facts of the case, this Court would like to be, first satisfied as to in what....
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.... manner a search and seizure was conducted at the office of an Advocate, inasmuch as any documents that may have been given by the client to his lawyer are purely confidential in nature and are protected by attorney-client privilege. 6. The Advocate cannot be subjected to harassment in this manner unless and until there is some material for the GST Department to show that the ad....
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....vocate himself is not merely representing his client but is also personally involved in the alleged illegality. For the said purpose, some prima facie material would have to be shown by the GST Department. 7. In so far as the CPU is concerned, since it could be consisting of belonging to other clients of the Petitioner, the same shall not be opened in any manner and the contents of the said....
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.... CPU shall not be downloaded by the GST Department without the presence of the Petitioner or any of his Authorised Representative. 8. Case is posted for further hearing. GST Department to file affidavit. 9. It is an accepted and known fact to everyone that the powers are to be used judiciously. The broad categories of tax payers may be grouped in three categories (if not more) such as genu....
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....ine persons as the first category., second category being cases where there could be some short payment of tax but this may be due to interpretational issues or Bonafide beliefs on the practice they follow. The third category may be persons who intend to avoid payment of taxes. While approaching the different categories of people, the approach of the tax officials should be soft and lenient ....
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....for first category, nominal penalty of whatever minimum possible on second category. Let the tax officials utilize powers to the extent the law permits on third category. 10. In practice, almost in all cases, the maximum penalty as allowed by law is imposed on all categories of tax payers. Even minor errors, typographical errors in E way Bills also attract huge penalties, disregarding the facts o....
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....f the case. 11. It is high time that GST Council may intervene and necessary instructions to all tax officials whether Central or State may be issued to avoid such cases where Jurisdictional High Court intervene and comment adversely. 12. The number of writs being filed in various jurisdictional high courts are alarmingly on the higher side and the precious time of Judges are wasted on pro....
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....cedural issues rather than on legal interpretations. 13. The Government may either ensure that GSTAT benches all over India start functioning at least from 01/01/2026 so as to minimize the writs or take appropriate departmental actions against erring tax officials. 14. The officers in general and State Level officers in particular, whose Orders In Original or Orders In Appeal are set aside or qu....
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....ashed by the Jurisdictional High Court at a later date must be educated by the Jurisdictional Commissioners to avoid passing such orders in future.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....