Back Home Up

GIST of Important Judgements issued under GST Act

1. Detention of goods

Although the power to prescribe the documents that are to accompany the transportation of goods in the course of interstate trade is conferred on the Central Government, the same are not yet notified. It was held that detention of goods, for the sole reason that the transportation was not accompanied by the prescribed documents under the IGST Act/CGST Act/CGST Rules, cannot be legally sustained.

[Ascics Trading Company WP(C). No. 31328 of 2017 (M) - Kerala HC]

2. Seizure of Goods

In the interim, to facilitate the petitioners to carry on their legitimate business and taking note of the fact that rate of tax is 2.5% for areca nuts, under the Assam SGST Act, 2017 and they are to pay further 2.5% tax to the Central Government coffer, subject to the petitioners’ furnishing Bank guarantee for ₹ 30 lakh towards the estimated tax, to the Commissioner of State Tax, the seized goods should be released to the custody of the petitioners. However, the transportation and business of areca nuts will be subject to realization of due tax by the authorities and the Bank guarantee, ordered to be deposited, is only on estimation and is not on quantification of the payable tax. The Finance & Taxation Department is at liberty to estimate the precise payable tax and make the assessment.

[Kumar Traders And Company vs. State of Assam (2017) 9 TMI 749 - Gauhati HC]

3. Goods detained to be released on simple bond without sureties

The issue of misclassification and under valuation has to be gone into by the respective Assessing Officers and not by the Detaining Officer. In such circumstances, this Court is not inclined to permit the further detention of the goods. The petitioners shall be permitted release of the goods on the execution of simple bond without sureties as expeditiously as possible. The Detaining Officer shall inform the Assessing Officer of the 3rd respondent who would be entitled to take appropriate proceedings at the time of assessment of the 3rd respondent. The Assessing Officer of the petitioners in the other State at Tamil Nadu would also be intimated, the details of whom shall be furnished by the petitioners before release of the goods.

[Sameer Mat Industries vs. State of Kerala - K. Vinod Chandran, J. - W.P. (C) No. 36413 of 2017]

4. Cess on Import of Coal

The assessee had imported coal prior to the introduction of goods and service tax regime and had already paid clean energy cess at the prescribed rate. On the stock which the petitioner had not cleared, no credit had been allowed on such cess and Department again asked to pay fresh cess under the Goods and Service Tax (Compensation to States) Act, 2017.
In view of the fact that the validity of a Union legislation is questioned, court ordered for notice to be issued.

[FC Agarwal Coal Pvt. Ltd. vs. Union of India (2017) 10 TMI 880]

5. Advance Ruling

Where no facility for advance ruling was made available under GST, it was held that Department must accept manually application for advance ruling under GST since web portal would not be ready to accept the same till January, 2018

[Sanjeev Sharma vs. Union of India (2017) 9 TMI 1357-Delhi HC]

6. Advance Authorisation

Interim relief can be granted to an exporter to continue to make imports under Advance Authorization licences issued to it prior to 1-7-2017 without payment of IGST for export orders received by him before 1-7-2017, subject to verification by Customs Department in terms of such authorization.

[Narendra Plastic Private Limited W.P. (C) No. 6534/2017 & C.M. No. 27111/2017 Delhi HC]

7. Advance Authorisation

Interim relief can be granted to exporters to continue making duty free imports against Advance Authorization (AA) licences issued to them prior to 1-7-2017 where period of validity of licence remains unexpired, however the same shall be subject to certain conditions as prescribed.

[Chemico Synthetics Ltd. vs. UOI (2017) 86 57-Delhi-HC]

8. Transitional Credit

Where an interim relief on recovery of transitional CVD credit on imported gold bars was to be granted to assessee, it was held that where assessee having made out a prima facie case for grant of interim relief in their favour, no coercive steps can be taken by revenue to recover credit already availed by them till next date of hearing.

[Kundan Care Products Ltd. vs. UOI (2017) 84 251- Delhi HC]

9. Offset of IGST

In where the assessee was trying to offset its IGST liability partially from CGST credit and partially from SGST credit but disallowed by GSTN portal with a message to first offset CGST credit completely before cross utilization. As there is no provision in GST law against such utilisation, Department was directed to file reply by next hearing date.

[A & M Design & Print Production vs. UOI (2017) 10 TMI 253-Delhi HC]

10. The provisional ID and password for GST Registration not working

The provisional ID and password allotted to the petitioner for the purposes of GST was not working. With the result, petitioner was unable to migrate its certificate of registration and to file its return under the GST. In interim order it is directed by the Hon’ble Allahabad High Court that, no coercive action would be taken against the petitioner for not filing the GST return within the time stipulated.

[Radhey Lal Jaiprakash Neadarganj Dadri vs. State of U.P. WP No. 661 of 2017 –Allahabad HC]

Back to Top