Addition under Section 68 cannot be sustained merely due to high share premium when investors are identifiable, traceable, and supported by audited financial records.
Summons under Section 70 of the CGST Act was only a step in the process of inquiry. Mere issuance of summons could not be equated with arrest or initiation of recovery proceedings.
The High Court set aside the assessment after finding that the order was passed before the scheduled video hearing. The ruling underscores that granting a requested personal hearing under Section 144B is mandatory.
The High Court held that appeals filed after the maximum period under Section 107 of the CGST Act are not maintainable. Writ jurisdiction cannot be used to override mandatory limitation periods.
The High Court held that an eight-day delay in filing a GST appeal within the condonable period deserved consideration. The rejection was set aside to restore the taxpayer’s right to be heard.
The High Court ruled that defaults arising from a Chartered Accountant’s actions are attributable to the taxpayer. Alleged misappropriation by the consultant does not invalidate GST demand orders.
The court held that once all GST dues, interest, and penalties are cleared, authorities must consider revocation of cancellation. Permanent cancellation after compliance was found unjustified and contrary to the statutory scheme.
The High Court ruled that Rule 86A cannot be invoked to block ITC beyond the balance available in the electronic credit ledger. Negative blocking was held to be without jurisdiction.
The Court held that issuing a single GST notice covering several financial years is without jurisdiction under Section 74. Each tax period must be assessed separately.
The High Court held that once a company undergoes CIRP and new management is installed, GST authorities must recognize this legal shift and cannot act as if the old management continues.
