This weekly round-up analytically summarizes the key stories related to the High Court reported at Taxscan.in during the previous week from November 8 to November 14, 2021.
The Punjab and Haryana High Court granted bail to a person alleged of floating bogus firms to facilitate big firms to save on GST in a fraudulent manner.
The Telangana High Court Refund of balance in electronic cash ledger cannot be denied for the mere existence of Non Functional alternate Forum on paper. The division bench of Acting Chief Justice M.S.Ramachandra Rao and Justice T.Vinod Kumar ruled that the petitioner cannot be compelled to wait for an eternity to agitate its claim seeking a refund of the amount to which it is entitled to under the statute and also blocking its funds affecting its cash flows, merely because of the existence of (nonfunctional) alternate forum/remedy on paper, by not invoking the jurisdiction under Article 226 of the Constitution of India. Further, the mere existence of alternative remedy is no bar for invoking the jurisdiction under Article 226 of the Constitution of India, when the right to carry on business is being impeded, resulting in violation of fundamental right as guaranteed under Article 19(1)(g) of the Constitution of India
The Kerala High Court has sought the GST Council’s Response on the exclusion of Petrol & Diesel from Goods and Service Tax (GST). The division Bench Chief Justice S. Manikumar and Justice Shaji P Chaly asked the GST council to file a statement in this regard within ten days. The Court was adjudicating upon a petition filed by Kerala Pradesh Gandhi Darshanvedhi challenging the decision of the GST council.
The Calcutta High Court quashed GST Demand and remands the matter back to the Appellate Authority due to Violation of the Principle of Natural Justice. The single bench of Justice Md. Nizamuddin observed that the impugned order is in gross violation of the principle of natural justice by not considering the adjournment petition of the petitioner and also passing the impugned order on a different date without intimation to the petitioner.
The Allahabad High Court quashed the cancellation of GST Registration as no opportunity of hearing was accorded. The single bench of Justice Jayant Banerji held that the denial of opportunity of hearing to the petitioner as is mandated in the first proviso to sub-section (2) of Section 29 of the Act of 2017 vitiates the proceedings as well as the orders canceling the registration of the petitioner.
The Gauhati High Court directed the authority to pass a reasoned order in respect of Accused taxpayers involved in passing on fake Input Tax Credit without movement of actual goods. The single-judge bench of Justice Achintya Malla Bujor Barua held that ends of justice would be met if an opportunity is given to the petitioner taxpayer to appear before the respondent Joint Commissioner of State Taxes, Guwahati with all relevant materials that he may desire to rely upon and satisfy the authorities in their investigation pursuant to the earlier summons dated 10.09.2021. Accordingly, as agreed upon by the parties, the petitioner shall appear before the Joint Commissioner of State Taxes, Guwahati on 08.11.2021 on 11.00 am and upon his appearance, the aforesaid authority shall give due audience to the petitioner and take on board all such relevant materials that he may produce as well as the contention that the petitioner may desire to raise.
The Calcutta High Court quashed the Income Tax Assessment Order and remanded the matter back to AO for violation of the principle of natural justice. The single bench of Justice Md Nizamuddin held that there is no use in keeping this writ petition pending and interest of justice will be served, if the impugned assessment order dated 20th March 2021 is set aside and the respondent Assessing Officer is directed to pass a fresh assessment order in accordance with law and bypassing a reasoned and speaking order after observing principles of natural justice by affording the opportunity of hearing to the petitioner.
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