Topic
Karnataka High Court upholds arrest under Section 69 of the CGST Act, ruling that simultaneous investigations by State and Central GST authorities do not render proceedings invalid. The judgment clarifies that dual enforcement does not constitute abuse of process, reinforcing powers to combat input tax credit fraud.
CESTAT rules that Cenvat credit cannot be denied based solely on third-party statements or fake invoices unless the Revenue proves the assessee's knowledge of fraud or provides corroborative evidence. The ruling reinforces natural justice principles, requiring direct evidence linking the assessee to fraudulent transactions to disallow credit claims.
CESTAT Chandigarh rules that denying an assessee the right to cross-examine witnesses whose statements form the basis of a tax demand violates natural justice and Section 9D of the Central Excise Act. The ruling reinforces procedural safeguards in quasi-judicial proceedings, impacting tax assessments and CENVAT credit disputes.
Madras HC clarifies that GST registration cancellation requires evidence of fraudulent financial nexus, not merely shared premises. The ruling protects businesses from arbitrary cancellations where Input Tax Credit claims lack physical movement proof but no fraud is established.