S.67 Of CGST Act & S.110 Of Customs Act Are Pari Materia; GST Department Must Give Notice To Assessee Before Extending Seizure Period: Delhi HC
2 weeks, 2 days ago

S.67 Of CGST Act & S.110 Of Customs Act Are Pari Materia; GST Department Must Give Notice To Assessee Before Extending Seizure Period: Delhi HC

Live Law  

The Delhi High Court has held that an assessee must be issued notice within six months of seizure of its goods under Section 67 of the Central Goods and Services Tax Act 2017, failing which the goods must be returned by the Department. The High Court said even if it is assumed that the two provisions were not pari materia, the underlying logic and reasoning rendered by the Supreme Court in IJ Rao would apply to the provisions of the CGST Act and to the case in hand. “Sufficient cause” cannot mean a reason known only to the concerned officials for extending the period of seizure to the detriment of the affected person, thereby denying him his entitlement to the goods.” The Department had also argued that the judgment in IJ Rao will not apply because of Rule 140 of the CGST Rules, 2017 which, when read with Section 67 of the CGST Act, provides for the provisional release of seized goods. Rejecting this submission, the Court held, “The fact that Rule 140 of the Rules provides for release on a provisional basis of seized goods does not obliterate the proviso to Section 67 of the CGST Act, including the need for showing “sufficient cause” for extending the period of retaining the seized goods.” The Respondents had also argued that the Petitioner did not show how the retention of the goods would be prejudicial or that they would be diminishing in value.

Court Customs Act Held Period Notice Department Act Gst Goods Seizure Six Months Petitioner Pari Seized Cgst Cgst Act Sufficient Cause Seized Goods Pari Materia Materia Ij Rao  seizure  s110  cgst  pari  goods  notice  materia  provisions  petitioner  held  hc  period  court  seized  act  gst  s67

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Customs Dept Repeatedly Told To Serve Notices, Orders On Assessee Via Email: Delhi High Court Seeks Compliance
6 days, 18 hours ago

Customs Dept Repeatedly Told To Serve Notices, Orders On Assessee Via Email: Delhi High Court Seeks Compliance

Live Law  

The Delhi High Court has asked the Customs Department to scrupulously comply with its “repeated” direction to serve notices, orders on an assessee under the Customs Act, 1962 via email. “.in order to avoid improper service to parties and to avoid ex-parte proceedings, it is incumbent that service of notices, communications and orders ought to be effected even through email …

[CGST ACT] Dept Can't Seize Goods If Quantity Or Weight Of Goods Is Found Correct On Physical Verification: Calcutta High Court
3 weeks ago

[CGST ACT] Dept Can't Seize Goods If Quantity Or Weight Of Goods Is Found Correct On Physical Verification: Calcutta High Court

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The Calcutta High Court stated that GST department cannot seize the goods if the quantity or weight of the goods is found correct on physical verification. The Division Bench of Chief Justice T.S Sivagnanam and Justice Hiranmay Bhattacharyya noted that the quantity or the weight of the goods, which were carried in the vehicle, has been found to be correct …

S.73 CGST Act | SCN, Order Issued Without Signature Of Proper Officer Is 'Ineffective': Gauhati High Court
2 months ago

S.73 CGST Act | SCN, Order Issued Without Signature Of Proper Officer Is 'Ineffective': Gauhati High Court

Live Law  

The Gauhati HIgh Court has held that the Show Cause Notice issued to an assessee under Section 73 of the Central Goods and Services Tax Act, 2017, the Statement issued along with the SCN as well as an Order passed under Section 73 must mandatorily be signed by the Proper Officer. Justice Soumitra Saikia observed, “As it is the statutory …

Penalties Like Seizure, Detention Of Goods In Transit U/S 129 CGST Act Shouldn't Be Imposed To Penalise Minor Breaches: Delhi High Court
2 months ago

Penalties Like Seizure, Detention Of Goods In Transit U/S 129 CGST Act Shouldn't Be Imposed To Penalise Minor Breaches: Delhi High Court

Live Law  

The Delhi High Court has held that Section 129 of the Central Goods & Services Tax Act, 2017 which pertains to detention, seizure and release of goods while in transit cannot be invoked for imposing penalties for minor breaches, like incomplete e-way bill. A division bench of Justices Yashwant Varma and Harish Vaidyanathan Shankar further held that Section 129 cannot, …

Impermissible For GST Officers To Pressurize Taxpayers To Pay Tax Without Following Requisite Procedure: Delhi High Court
1 year, 3 months ago

Impermissible For GST Officers To Pressurize Taxpayers To Pay Tax Without Following Requisite Procedure: Delhi High Court

Live Law  

The Delhi High Court has held that it is impermissible for the officers to pressurize the taxpayers to pay tax without following the requisite procedure, notwithstanding that it may be apparent that such tax is due and payable.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the assessee's statement cannot be read as acknowledgement of any …

Section 67(2) Of The GST Act Does Not Empower Seizure Of Currency Available In Premises During Search: Delhi High Court
1 year, 6 months ago

Section 67(2) Of The GST Act Does Not Empower Seizure Of Currency Available In Premises During Search: Delhi High Court

Live Law  

The Delhi High Court has held that Section 67 of the GST Act does not empower the seizure of currency available on premises during a search.The bench of Justice Vibhu Bakhru and Justice Purushaindra Kumar Kaurav has directed the department to remit the amount seized to the petitioner’s bank account within a period of two weeks, along with accrued interest.The …

Person In Whose Custody The Goods Are Found To Produce Information Within A Reasonable Time: Delhi High Court
1 year, 11 months ago

Person In Whose Custody The Goods Are Found To Produce Information Within A Reasonable Time: Delhi High Court

Live Law  

The Delhi High Court has held that it would be open for a person found in the custody of goods to produce the relevant information in its possession with respect to the goods within a reasonable time on being required to do so by the Commissioner.The bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that none of …

No Provision In GST Act for Confiscating Currency From The Premises : Delhi High Court
2 years, 1 month ago

No Provision In GST Act for Confiscating Currency From The Premises : Delhi High Court

Live Law  

The Delhi High Court ruled that there is no provision in the GST Act that would allow for the forcible removal of currency from the premises of any person.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the powers of search and seizure are draconian powers and must be exercised strictly in terms of the …

Payment Of Tax And Penalty To Release Detained Goods Can’t Be Treated As “Admission” On The Part Of Assessee: Delhi High Court
2 years, 1 month ago

Payment Of Tax And Penalty To Release Detained Goods Can’t Be Treated As “Admission” On The Part Of Assessee: Delhi High Court

Live Law  

The Delhi High Court has held that the payment of tax and penalty to release the detained goods shall not be treated as "admission" on the part of the assessee.The division bench of Justice Vibhu Bakhru and Justice Amit Mahajan has observed that the petitioner had paid the tax and penalty for the release of the goods and that the …

Tax Cases Weekly Round-Up: 4 September To 10 September, 2022
2 years, 6 months ago

Tax Cases Weekly Round-Up: 4 September To 10 September, 2022

Live Law  

Bombay High Court Case Title – SAT Industries Limited v. Union of India & Anr. Madras High Court Case Title: India Yamaha Motor Private Limited Versus The Assistant Commissioner Citation: 2022 LiveLaw 384 The Madras High Court has ruled that interest on late GST remittances is levied even if credit in electronic cash or credit ledgers is available. Versus The …

Prosecution For Customs Duty Evasion Can't Be Initiated As The Valuation Of The Goods Is Less Than Rs.1 Crore: Delhi High Court
2 years, 9 months ago

Prosecution For Customs Duty Evasion Can't Be Initiated As The Valuation Of The Goods Is Less Than Rs.1 Crore: Delhi High Court

Live Law  

The Delhi High Court has ruled that the prosecution of the petitioner cannot be initiated under Section 135 of the Customs Act as valuation of the goods is less than Rs.1 Crore. The Director of Revenue Intelligence filed a criminal complaint under Section 132 and 135 of the Customs Act, before the Trial Court. The petitioner stated that there was …

GST : No Detention Of Goods If There Is Bona Fide Dispute On Tax Rate, Holds Kerala HC [Read Judgment]
6 years, 2 months ago

GST : No Detention Of Goods If There Is Bona Fide Dispute On Tax Rate, Holds Kerala HC [Read Judgment]

Live Law  

A single bench of Kerala High Court in N.V.K.Mohammed Sulthan Rawther and Sons v. Union of India,held that the process of detention of the goods under section 129 of the Goods and Services Tax Act cannot be resorted to when the dispute is bona fide, especially, concerning the exigibility of tax and,more particularly, the rate of that tax.The judgment was …

Delhi HC slams Customs Department for disobeying Court orders, imposes 10,000 as costs [Read Order]
8 years, 7 months ago

Delhi HC slams Customs Department for disobeying Court orders, imposes 10,000 as costs [Read Order]

Live Law  

Delhi High Court on Wednesday slammed the Customs Department for disobeying High Court and Supreme Court rulings, on the issue of duty payable on imported goods.The Bench comprising Justice S. Muralidhar and Justice Najmi Waziri, noted it to be “another instance of open defiance of the law and the judgments of the Courts by a statutory authority vested with both …

Delhi HC slams Customs Department for disobeying Court orders, imposes 10,000 as costs [Read Order]
8 years, 7 months ago

Delhi HC slams Customs Department for disobeying Court orders, imposes 10,000 as costs [Read Order]

Live Law  

Delhi High Court on Wednesday slammed the Customs Department for disobeying High Court and Supreme Court rulings, on the issue of duty payable on imported goods.The Bench comprising Justice S. Muralidhar and Justice Najmi Waziri, noted it to be “another instance of open defiance of the law and the judgments of the Courts by a statutory authority vested with both …

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