The Kerala High Court ruled that coercive tax recovery against an assessee must be kept in abeyance while the NFAC considers the pending delay condonation and stay petitions. The Court directed the NFAC to decide the delay condonation petition within two months, and if successful, rule on the stay petition within one month thereafter.
Court directed a fresh assessment, holding that flavoured milk is correctly classified as milk with added sugar (Entry 0402). This classification takes precedence over general beverage entry, ensuring lower 5% GST rate applies.
Kerala High Court held that the statue permits taxpayer to correct bonafide errors by self-verification of assessment and payment of liability until the notice is issued under section 73 of the CGST. Accordingly, bonafide error in assessment and intimation in DRC-03 is directed to be allowed.
Recognizing initial technical difficulties in GST compliance, the Kerala High Court allowed taxpayers to reapply for ITC relief under CBIC Circulars 183/2022 and 193/2023, requiring officers to examine claims within 30 days.
High Court ruled that an AO’s failure to determine if a unit sale was a slump sale (S.50B) or short-term capital gain (S.50) made the assessment erroneous and reversible under Section 263.
Kerala High Court clarified that proceedings under Section 73 apply only where tax is unpaid, short-paid, or wrongly availed. Since the taxpayer only adjusted ITC under the wrong head without causing loss to the exchequer, the GST demand was quashed.
Court ruled that writing off bad debts in balance sheet and profit and loss account is sufficient under Section 36(1)(vii), clarifying that closing each debtor’s ledger account is unnecessary.
Limitation under Rule 68B of the second schedule to the Income Tax Act did not apply to RDDB Act (Recovery of Debts Due to Banks and Financial Institutions Act, 1993) proceedings as Rule 68B of the IT Act had no mandatory application to recoveries under the RDDB Act
Form 3CL was not a determinative document for claiming deduction, and non-production of the same did not amount to wilful non-disclosure or suppression of material facts under Explanation 1 to Section 147.
These Public Interest Litigations are filed by the petitioners substantially seeking the relief of including the petrol and diesel under the GST regime so as to achieve a harmonized national market as contemplated under Article 279 (A) of the Constitution of India.
