SUMMARY OF IMPORTANT CASE LAWS DURING MAY 2021

 

SUPRIMKUMAR JITENDRABHAI PATEL [GUJARAT HIGH COURT]

Date: May 3, 2021

Case No: R/CRIMINAL MISC.APPLICATION NO.1724 of 2021

Subject: Generation of eway bills of 16 firms by concealing the identity of the real purchaser and real seller.

A close perusal of the complaint prima facie reveals that there are 16 firms, which were part of scrutiny by the investigating agency. As per the case of the prosecution, the applicant is involved in misusing the registration numbers of these 16 firms and the total tax evasion by generating eway bill without revealing the true identity of the real purchaser or real seller is stated to be ₹ 9,60,47,253/. The applicant is also ready and willing to deposit some of the amount. Taking into consideration the facts of the case, nature of allegations, gravity of offences, role attributed to the accused, without discussing the evidence in detail, the Court allowed the Bail application.

M/S. SADHANA PHARMA INDUSTRIES [DELHI HIGH COURT]

Date: May 3, 2021

Case No: W.P.(C) 5076/2021

Subject: Refund of CGST along with interest

The Writ Petition was filed with the prayer, ‘issue a writ of mandamus or any other writ, order or direction in the nature thereof directing the respondents to refund the amount of ₹ 2,40,33,532/- for the period of April, 2020 – May, 2020 along with interest thereon to the petitioner as per previous law’. The Hon’ble High Court directed the concerned respondent authorities to decide the claim of the petitioner for refund as stated in the memo of this writ petition, in accordance with law, rules, regulations and Government policies applicable to the facts of the case, especially, looking to the decision rendered by the Supreme Court in Mafatlal Industries Ltd. vs. Union of India, (1997) 5 SCC 536, as expeditiously as possible and practicable.

ROSHNI SANA JAISWAL VERSUS COMMISSIONER OF CENTRAL TAXES, GST DELHI (EAST) [DELHI HIGH COURT]

Date: May 12, 2021

Case No: W.P.(C) 2348/2021 & CM No. 6860/2021

Subject: Provisional attachment of Bank accounts of petitioner / Director of the company - availment of ITC against fake/ineligible invoices

The petitioner claimed, in her voluntary statement, that she was paid ₹ 1.50 crores in the FY 2019-2020 for rendering services in her capacity as a mentor/advisor to Milkfood Ltd. Therefore, even if we assume, for the moment, that, since investigations are on against the taxable person, and therefore, proceedings are pending under Section 67 of the Act, there is nothing placed on record to show that there was material available with the respondent, linking the petitioner to purported fake invoices. In other words, in the absence of such material, the impugned action concerning provisional attachment of the petitioner’s bank accounts, which is otherwise a “draconian” step, was unsustainable.

M/S. DUBAI CHAMBER OF COMMERCE AND INDUSTRY [AUTHORITY FOR ADVANCE RULING, MAHARASHTRA]

Date: May 24, 2021

Case No: GST-ARA-35/2019-20/B-14

Subject: Question regarding intermediary services, requirement to obtain registration and levy of GST

From the Receipts and Payments Statement for the period ending 31st March 2019 it was observed that, the Applicant has received Remittances from their Head Office which is excess of the expenditure incurred, during the said period, by ₹ 2,49,664/- which is surplus amount received. This amount is shown as closing cash balance by the applicant. This is nothing but profit for the applicant. It was held that the applicant satisfied all the conditions of an intermediary. As per the provisions of Section 13 (8) of the IGST Act, 2017, the place of supply in subject case of the applicant as an intermediary would be the location of the supplier of services i.e., the location of the applicant which is located in the State of Maharashtra, India.

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