News Update

News date: 13-Apr-2024

The Hon'ble Allahabad High Court disposed of the writ petition with the observation, the penalty be reduced in terms of Section 129(1)(a) of the State Act.

Case Reference: Writ Tax No. 1053 of 2023


  • Appellant: Krishna Traders

  • Respondent: Assistant Commissioner

πŸ—“οΈ Date of Judgment: 02/04/2024

πŸ‘©β€βš–οΈ Hon'ble Justices: Saumitra Dayal Singh and Donadi Ramesh, JJ.

πŸ“ Summary of Judgment: In this case, the Allahabad High Court addressed the challenge raised against an order under Section 129(1)(b) of the U.P.G.S.T. Act, 2017 imposing a penalty on Krishna Traders. The court emphasized that despite the subsequent cancellation of petitioner's registration, the transaction in question should not be deemed non-traceable to a bona-fide person. It was noted that the Tax Invoice issuance was not doubted and the petitioner was a registered dealer at the time of the transaction. Consequently, the court directed a reduction in the penalty under Section 129(1)(a) of the State Act.

πŸ“š Legal Ruling: The High Court directed the immediate release of goods and the vehicle upon payment of the due amount within three weeks. Moreover, it instructed the Commissioner of Commercial Tax, U.P., to establish a mechanism allowing the owner/third party to file appeals electronically in cases of seizure or penalty imposition. Temporary IDs should be created for this purpose, ensuring accessibility to the appeal process.

βš–οΈ Judgment Conclusion: The Court disposed of the writ petition, emphasizing the need for procedural fairness and access to appeal mechanisms. It highlighted the importance of facilitating electronic appeals and ensuring proper communication for compliance.

πŸ“Œ Key Takeaways:

  • Upheld petitioner's rights despite subsequent registration cancellation.

  • Emphasized the importance of electronic appeal mechanisms.

  • Directed immediate release of goods and vehicle upon payment.

News date: 02-Oct-2023

The requirement of 6Digit HSN code by registered person having turnover more than 05 Crore on e-invoices and e-way bills has been deferred.

VCLA Comment: It is advisable to make practise of putting HSN of minimum 06 Digits on e-invoice, and e-waybills without waiting for implementation date.

GST Case Law Discussion:  Legal Victory Alert! πŸ›οΈ

GST Case Law - #Refund #ZeroPeriod #superemecourt

Mahalaxmi Exports Through Its Proprietor Mr Sushil Kohli .....Appellant


Commissioner of Delhi Goods and Services Tax and Ors. .....Respondent

Sharing an extract of a recent judgment dated 26.09.2023 by the Hon'ble Justice Vibhu Bakhru and Amit Mahajan, JJ. (Delhi High Court), which has far-reaching implications for businesses seeking GST refunds in the wake of the COVID-19 pandemic. 

In CM APPL. 50155/2023 (for exemption) and W.P.(C) 12697/2023, the Hon'ble Court addressed a critical issue concerning the refund of unutilized Input Tax Credit (ITC) for zero-rated supplies under the CGST and SGST Acts.

Key Takeaways from the Judgment:

Background: The petitioner sought a refund of Rs. 6,57,568/- for the period from April 1, 2019, to September 30, 2019.

Relevant Timelines: The refund application was filed on November 28, 2021. The authorities acknowledged it on December 30, 2021, requisite form (GST RFD-02), but also issued a Show Cause Notice (SCN) on the same day.

The Issue: The authorities argued that the application was time-barred under Section 54(1) of the CGST Act.

The Petitioner's Response: The petitioner cited the COVID-19 pandemic as a genuine reason for the delay in filing the application.

The Impugned Orders: Despite the petitioner's arguments, the refund application was rejected on January 28, 2022. An appeal met the same fate on August 11, 2023, due to limitation.
Legal Basis for the Petitioner's Claim: The petitioner relied on Supreme Court orders and a notification issued by CBIC.

The Notification: Notification no. 13/2022-Central Tax dated July 5, 2022, excluded the period from March 1, 2020, to February 28, 2022, for filing refund applications.

Court's Decision: The court found that the petitioner's application was within the time limit when considering the excluded period. The impugned orders were set aside, and the petition was allowed.

Relief for the Petitioner: The respondents were directed to process the petitioner’s refund application, along with applicable interest, within two weeks.
This judgment underscores the importance of flexibility and understanding exceptional circumstances, like the pandemic, in tax matters. It's a win for businesses navigating complex GST regulations. πŸ†

News date: 29-Sep-2023

GSTN temporarily halts e-Invoice auto-population in GSTR-1 from September 26 to 29, 2023, for system upgrades.

Normal auto-population resumes on September 30, without impacting the next month's GSTR-1 filing.

For detailed information on the temporary e-Invoice auto-population pause, visit link:

News date: 28-Sep-2023