Indirect Tax & ​Foreign Trade Insights - Issue 18

Indirect Tax_Sharp & Stellar_Issue_18.pdf

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Highlights

• Taxpayer’s GST Registration restored due to procedural lapses by department

• India tightens the Import Norms for Electronics and IT Products

Insights

The Calcutta HC in Amirul Islam Vs The State of West Bengal & Ors. (Cal HC, WPA 906/2024) dated 20/05/2024 has directed the restoration of a petitioner's GST registration that was cancelled due to procedural irregularities in the show-cause notice issued by the tax authorities.

The cancellation was challenged on the basis that separate notices i.e., in Form GST REG-31 and GST REG-17 were not issued. The court found that the procedural requirement to issue separate notices was mandatory. It was held that such lapses rendered the notice invalid, and consequently, the cancellation based on it was illegal.

The court emphasized the need to adhere to procedural norms and balance strict legal compliance with humanitarian considerations in exceptional circumstances.

Every passing day, as the litigation unfolds in GST, the courts are issuing several orders underscoring the importance of procedural requirements under the law specially when it comes to the orders or notices issued by the department. This can be very useful while evaluating a case for seeking remedy from any appellate authority as on account of several procedures being laid down under the GST laws, the officers generally omit or fail to follow any crucial step while completing the proceedings. Furthermore, the comments made by the Calcutta HC of following a humanitarian approach by the department can also be beneficial for matters to be contested under GST.

Period Covered: May 20, 2024, to May 26, 2024