CGST |Tripura High Court Reads Down Section 16(2)(c), Shields Bona Fide Buyers From ITC Denial

The Tripura High Court has read down Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, holding that while Input Tax Credit can be claimed only if the tax charged by the supplier is paid to the Government, the provision cannot be applied to deny credit to a bona fide purchaser for the supplier's default.A Division Bench of Chief Justice M S Ramachandra Rao and Justice S Datta Purkayastha observed that while Parliament is competent to impose conditions on the availment of ITC,...

Tax Authorities Cannot Resurrect Repealed VAT Powers After GST Regime, Nor Retain Deposits Without Statutory Backing: Tripura High Court

The Tripura High Court has held that where show-cause notices imposing penalty under Section 77 of the Tripura Value Added Tax Act, 2004 (TVAT Act) were issued after delay of 9 years, long after the repeal of the TVAT Act after GST Regime, are arbitrary, illegal and vitiated by malafides. The Court further held that the State cannot retain the security deposit taken for VAT registration once the GST regime does not mandate a security deposit for transporters. A Division Bench comprising...

Penalty Paid Under Economic Duress Not Voluntary Admission Of Liability Under GST Act: Tripura High Court

The Tripura High Court recently held that payment of a penalty under economic duress cannot be treated as a “voluntary” admission of liability, and tax authorities remain legally obligated to pass a final, reasoned order under the Tripura State GST Act, 2017. The ruling came in the case of R G Group, a Tripura-based supplier of electrical goods, whose consignment was detained in July 2024 by GST enforcement officials over alleged expired E-Way bills and vehicle discrepancies. The Bench,...

GST ITC Available On Work Contract Services For The Construction Of Hotel Building: Tripura High Court

The Tripura High Court has held that in providing taxable work contract services for the said construction of a hotel building, the assessee is entitled to take an input tax credit on the goods and services being utilized for providing the taxable work contract services.The bench of Acting Chief Justice Aparesh Kumar Singh and Justice Arindam Lodh has observed that the assessee has fulfilled all the conditions of work contracts as he is providing work contract services under a contract for the...

Arbitrary Orders Driving Taxpayer To File Appeal By Depositing 50% Of The Disputed Taxes: Tripura High Court Imposes Cost Of Rs. 25,000 On The Taxes Recoverable From His Salary

The Tripura High Court has imposed a cost of Rs. 25,000/- on the Commissioner of Taxes to be recovered from his salary and to be paid to the Tripura High Court Bar Association for passing an order in an arbitrary manner.The division bench of Acting Chief Justice T. Amarnath Goud and Justice Arindam Lodh observed that orders were passed by the authorities in an arbitrary manner, which was driving taxpayers to file appeals by depositing 50% of the disputed taxes. The Court also ruled that a...

State Of Tripura Has No Jurisdiction To Levy VAT For Supply Of LPG Cylinder Under Work Orders Executed Outside The State: Tripura High Court

The Tripura High Court has ruled that the State of Tripura has no jurisdiction to levy VAT under the Tripura Value Added Tax Act, 2004 (TVAT), on transport or supply of LPG cylinders to Tripura under the work orders executed outside the State. The bench of Acting Chief Justice T. Amarnath Goud and Justice Arindam Lodh held that that the situs of the sale would be the place where the contracts were executed. The Court further held that transport of LPG cylinders by the assessee under the...

Execution Of Arbitration Awards;Section 47 Of CPC Not Applicable : Tripura High Court

The High Court of Tripura has held that Section 47 of CPC which provides for certain questions to be determined by the executing Court does not apply to execution of an arbitration award under the A&C Act. The bench of Justice S.G. Chattopadhyay held that the executing court, exercising power under Section 36 of the Act, cannot entertain any objections against the award and a party can only challenge the award in terms of Section 34 of the A&C and no objection can be raised...

Most People Possessing Exotic Species Are Animal Lovers, Cannot Direct Govt To Criminalize Non-Declaration: Tripura High Court

The petitioner had sought prosecution of those who haven't made declaration about possession of exotic animals and birds in accordance with an advisory issued by the Centre in June 2020