Key Principles from the Supreme Court’s GST Jurisprudence
Satyam Shivam Papers (2022) – Expiry of E-Way Bill
- Mere expiry of e-way bill ≠ tax evasion.
- No evidence of mens rea or intent to evade → detention/penalty illegal.
- Court ordered refund of penalty with 6% interest + costs on dept.
Mohit Minerals (2022) – IGST on Ocean Freight (CIF Contracts)
- Import under CIF already includes freight in customs value.
- Levying separate IGST on freight = double taxation, struck down.
- Landmark principle: GST Council’s recommendations are persuasive, not binding on legislatures.
- Preserved fiscal federalism & legislative supremacy.
Skill Lotto Solutions (2020) – GST on Lotteries
- Lottery = “goods” (actionable claim) under GST law.
- Levy on lottery, betting, gambling valid; classification not arbitrary.
- Court upheld legislative competence under Article 246A.
- Valuation of tickets (face value) upheld as matter of policy.
Radha Krishan Industries (2021) – Provisional Attachment under Sec 83
- Provisional attachment = draconian power, must follow strict safeguards.
- Invalid if no proceedings pending under GST at time of attachment.
- Writ jurisdiction maintainable despite alternate remedy where natural justice violated.
- Attachment without reasons/material = arbitrary & illegal.
Tribunal’s & Court’s Broader Findings
- SC balances revenue protection with taxpayer rights & constitutional principles.
- Evolving jurisprudence ensures GST operates within defined boundaries.
- Priorities: fairness, economic reality, and proportionality in enforcement.
Key Takeaway
GST’s legal framework is steadily being shaped by the Supreme Court.
Taxpayers benefit as courts:
- Prevent misuse of powers (Satyam Shivam Papers, Radha Krishan).
- Uphold constitutional balance & federalism (Mohit Minerals).
- Validate legislative clarity on scope of “goods” (Skill Lotto).
These rulings serve as guiding lights for businesses and tax authorities as GST enters its 9th year.
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(The author is a practicing advocate, Co-Founder and Legal Head of RB LawCorp.
He specializes in GST law. Suggestions or queries can be directed to
ashsharma@rblawcorp.in. The views expressed in this article are strictly
personal.)