Indirect Tax Digest | 24 May 2024

Bombay High Court - Recovery proceedings cannot be initiated against a former director.

Allahabad High Court - Recovery proceedings can be initiated against a Taxpayer who has wrongly availed input tax credit on procurements made from a non-existent and bogus supplier.

Karnataka High Court - Upholds the constitutional validity of Section 16(4) of the Central Goods and Services Tax Act, 2017 read with Rule 61(5) of the Central Goods and Services Tax Rules, 2017.

Telangana High Court - The balance in the Electronic Credit Ledger cannot be made negative as per Rule 86A of the Central Goods and Services Tax Rules, 2017.

Supreme Court - Penalty cannot be imposed under Section 11(2) of the Foreign Trade (Development and Regulation) Act, 1992 for non-fulfilment of export obligation.

Gujarat High Court - Show Cause Notice alleging non-payment of Service tax cannot be issued merely based on the information from the Income-tax Department without disclosing the nature of services rendered.