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Matter to be remanded back since 36% GST instead of 18% levied because financials didn’t reflect state-wise turnover: HC?
Tvl. Future General India Insurance Co. Ltd. v. Assistant Commissioner (State Tax) (FAC) - [2024] 159 taxmann.com 628 (Madras)
The petitioner was engaged in business of providing insurance products. It received an audit notice and submitted documents in response to said notice and asked to explain difference in turnover between P & L account and balance sheet on one hand and GSTR-9 on other. It was explained that difference arose as a result of fact that financial statements pertained to operation of entity at a Pan India level, whereas GSTR 9 return was limited to turnover in Tamil Nadu. Thereafter, an order was passed and petitioner filed writ petition against it since SGST and CGST was imposed at 18% each.??
The Honorable High Court noted that the turnover for an entity operating in multiple States in India as reflected in financial statements and turnover attributable to its operations in Tamil Nadu would vary and bifurcation of total and Tamil Nadu turnover is only germane. The Court also noted that GST has been imposed at 36% instead of applicable rate of 18%. Therefore, it was held that the impugned assessment order was to be quashed and matter was remanded for reconsideration.
Gujarat HC direct GST dept. to pass revision order u/s 108 against cancellation of GST without giving reasons?
In the present case, the petitioner filed writ petition challenging order of cancellation passed by GST authorities on ground that such orders did not contain detailed reasons for cancellation of registration of petitioner. It was contended that guidelines were issued to GST authorities to issue appropriate show cause notice containing all necessary details and information and to provide reasonable opportunity of hearing to tax payers.??
The Honorable High Court noted that the instructions were issued by Hon'ble Division Bench of this Hon'ble Court in the case of Aggarwal Dyeing to all field formations laying down procedure to be followed while dealing with subject of cancellation of registration. But, in the instant case, SCN and order of cancellation of registration did not contain any reason for cancellation.??
Thus, the Court directed Competent Authority to issue notice with reasons and exercise powers under Section 108 for initiating suo motu revision so as to revise impugned order of cancellation of registration.??
That’s it from us for today! Stay Tuned for more updates from Taxmann.com .
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