Karnataka High Court held that levy of interest u/s. 50 of the Central Goods and Services Tax Act, 2017 on delayed filing of return not justified as cash is deposited to Electronic Cash Ledger on or before the due date and the amount towards tax by way of Electronic Credit Ledger was available in the Electronic Credit Ledger.
The Court ruled that a 67-day delay in filing GST appeal deserved condonation as the taxpayer was pursuing statutory remedies. The appellate authority was directed to hear the appeal on merits.
The High Court ruled that the appellate authority has power to condone delay under Section 107(4) of the GST Act. The key takeaway is that GST appeal timelines are not mandatory and require consideration on merits.
Emphasizing the gravity of cancellation, the Court intervened where illness prevented compliance. The key takeaway is that genuine hardship can warrant restoration of registration.
The judgment reiterates that reassessment cannot be initiated merely because the AO takes a different view later. Jurisdictional limits under tax law were strictly enforced.
The court held that reopening after four years based on a different view of the same expenditure amounts to a change of opinion. Absence of failure to disclose material facts made the reassessment invalid.
The ruling reiterates that reassessment after four years requires a clear failure by the assessee to disclose material facts. Absence of such failure rendered the notice unsustainable.
The court held that reopening beyond four years is invalid when the recorded reasons do not allege failure to disclose material facts. Full disclosure by the assessee barred reassessment.
The ruling confirms that reassessment based on investigation inputs cannot proceed without independent application of mind by the Assessing Officer. Prior scrutiny of share capital defeated the reopening.
Calcutta High Court held that West Bengal Industrial Development Corporation’s [WBIDC] demand for transfer fee in relation to leasehold lands acquired via resolution process. Accordingly, the present appeal is dismissed.
