The High Court quashed a GST assessment holding that solar power contracts must be taxed at an effective 8.9% under applicable notifications, not 18%.
The court held that interest is payable when the actual refund is made after the statutory 90-day period, even if the refund order was passed earlier.
Relying on the spirit of Section 62, the Court ruled that compliance after delay nullifies best judgment assessments, though interest liability may remain.
The judgment clarified that delayed installment interest arises from a debtor–creditor relationship, not a service supply, and therefore cannot be subjected to GST.
The High Court held that assessment orders under Section 62 of the CGST Act automatically lapse once pending returns are filed with late fee, barring recovery action.
The High Court affirmed the assessment by applying its earlier decision while directing payment of differential tax to enable statutory compliance.
The court held that a works contractor cannot challenge a GST assessment months after becoming aware of it, as a rectification application was already pending.
The High Court allowed a religious society to submit delayed audit documents, citing the treasurer’s age and Covid-19 as valid reasons, directing authorities to reconsider exemption under Section 11.
The Court held that assessments under Section 73 without prior Rule 142(1)(A) notices are invalid. Section 61 scrutiny must be completed first, and unsatisfactory explanations require issuance of the notice. The assessments were quashed, and the matter remanded to the proper officer.
Andhra Pradesh High Court held that notices issued under Sections 148-A and 148 outside the faceless assessment scheme are illegal, emphasizing strict compliance with Section 151(A) and E-Assessment Scheme, 2022.
