Lexicon of Litigation: Classical Maxims in the Modern GST Regime
A legal maxim is a concise statement encapsulating a principle or rule of law, often Latin in origin, and long revered in legal traditions worldwide. Though ancient, their applications remain contemporary, especially in interpretative jurisprudence and litigation strategy. In the Goods and Services Tax (GST) regime, these maxims have gained renewed relevance in the drafting of Show Cause Notices (SCNs), adjudications, and appeals. This article explores key legal maxims, their jurisprudential meanings, and their strategic use in GST-related proceedings supported with judicial precedents and interpretational insights.
Struggling with the pronunciation and understanding of Latin legal maxims has been a journey in itself. When I first encountered Latin legal maxims, they felt like a completely new language to me, even still it does. It took time to not only get the pronunciation right but to also truly understand their significance in legal contexts. Over the years, I've made it a point to read about these maxims whenever they pop up, and I actively look for ways to incorporate them into my future practice. And still learning this along in the journey.
These phrases, derived from Roman jurisprudence, are integral to legal writing and advocacy. Their concise articulation helps frame legal arguments with clarity, especially in complex cases involving indirect taxes such as GST, as these are well recognised in the legal field and convey lot of meaning in few words, without detailed elaboration. These maxims can shape arguments in show cause notices, appellate proceedings, or judicial interventions.
Legal maxims, when aptly used, assist tax professionals and litigators in asserting rights, defending against allegations, and seeking equitable relief. This article seeks to delve into ten essential legal maxims and interpret their practical relevance under India’s GST law.
1. Audi Alteram Partem – "Hear the Other Side"
Meaning: This fundamental principle of natural justice ensures that no person is condemned unheard.
GST Context:
• Applicable when SCNs are issued without offering the taxpayer a chance or insufficient time to respond.
• During audits or assessments, taxpayers must be given an opportunity to present explanations before Notices or orders are passed.
Application:
If the tax officer passes an ex-parte order without affording an opportunity to be heard, this maxim can be invoked under Sections 73 and 74 of CGST Act.
2. Nemo Judex in Causa Sua – "No One Should Be a Judge in Their Own Case"
Meaning: Prohibits bias in adjudication.
GST Context:
• Applicable in appeals if the appellate officer has a stake in the outcome.
Application:
• Challenge decisions where administrative and adjudicatory roles are improperly merged.
3. Lex Non Cogit Ad Impossibilia – "The Law Does Not Compel the Impossible"
Meaning: The law cannot mandate compliance with impractical or impossible acts.
GST Context:
• Invoked when GSTR-9C is demanded prior to GSTR-9 filing.
• Can also be used in case of Sec. 16(2)(c), where the buyer has paid entire amount but supplier fails to remit it to Govt.
• Can also support relief in cases of GST Portal errors or system glitches.
Application:
• Use in appeals or reply to SCNs where non-compliance is due to systemic hurdles or impossibility of compliance.
4. Pacta Sunt Servanda – "Agreements Must Be Kept"
Meaning: Upholds sanctity and enforceability of lawful agreements.
GST Context:
• Applicable in contract-related GST disputes, especially concerning tax clause violations in commercial contracts.
Application:
• Used in litigation involving non-compliance with contractual GST clauses, such as tax-sharing obligations or invoice mismatches.
5. Ubi Jus Ibi Remedium – "Where There is a Right, There is a Remedy"
Meaning: Denial of a legal remedy where a right exists is unjust.
GST Context:
• Applied when refund claims are denied or appellate rights are obstructed.
• Especially useful in litigation concerning blocked ITC or denial of procedural access.
Application:
• Asserted in writ petitions challenging delay or inaction by the department despite a rightful claim (e.g., refund under Section 54 of CGST Act).
6. Actus Non Facit Reum Nisi Mens Sit Rea – "An Act is Not Guilty Unless the Mind is Guilty"
Meaning: Establishes intent as a necessary component for penal liability.
GST Context:
• Differentiates between deliberate tax evasion and clerical mistakes.
• Used to challenge penalties imposed under Sections 122 and 132 without intent proof.
Application:
• Raise this maxim in appeal to nullify penalties for minor or genuine errors.
• This maxim can be raised in appeals to challenge penalties for minor or genuine errors, where there is no intent to defraud or evade taxes. As per Section 126 of the CGST Act, no penalty shall be imposed for minor breaches of tax regulations or procedural requirements, particularly for mistakes or omissions in documentation that can be easily rectified and were made without fraudulent intent or gross negligence.
7. Falsus in Uno, Falsus in Omnibus – "False in One Thing, False in Everything"
Meaning: If a statement is false in one part, the credibility of the entire statement is questioned.
GST Context:
• Argued by department in SCNs where one false document or entry undermines overall taxpayer credibility.
Application:
• Cautiously used in appeals either to challenge taxpayer credibility or to counter over-reliance on isolated errors.
8. Non Bis in Idem – "Not Twice for the Same Thing"
Meaning: Protects against double jeopardy or double punishment.
GST Context:
• Invoked when two notices are issued for the same period and issue.
• Relevant in cases of simultaneous penalty and prosecution for the same offense.
Application:
• Challenge repeated demands or dual penalties under Sections 73 and 74.
9. In Dubio Pro Reo – "When in Doubt, Favor the Accused"
Meaning: In case of ambiguity or doubt, the benefit goes to the accused.
GST Context:
• Useful in litigation where facts are disputed and interpretation is open-ended.
• Employed in appellate proceedings to argue for relief when facts are not conclusive.
Application:
• Employed in contesting tax demands based on estimations or presumptive assessments.
10. Quod Principi Placuit Legis Habet Vigorem – "What Pleases the Authority Has the Force of Law"
Meaning: Once lawfully enacted, the will of the legislature becomes law.
GST Context:
• Basis for enforcing GST Notifications, Circulars, and Council Recommendations.
Application:
• Cited to uphold enforceability of legal changes or to defend actions taken based on Government-issued directions.
11. Expressio Unius Est Exclusio Alterius – "The Expression of One Thing is the Exclusion of Another"
Meaning: When one thing is explicitly mentioned, others are excluded by implication.
GST Context: Used to interpret provisions that mention specific items, excluding others not mentioned.
Application:
• Applied in interpreting GST law to exclude items or scenarios that are not specifically listed in the law, ensuring clarity in compliance.
• For example, Section 17(5) of the CGST Act excludes certain input tax credits (ITC), such as on motor vehicles and certain goods, implying that these items cannot avail ITC, even if they would otherwise qualify under general provisions.
12. Noscitur A Sociis – "A Thing is Known by the Company it Keeps"
Meaning: The meaning of a word or phrase should be understood in the context of the words surrounding it.
GST Context: Helps in interpreting terms in GST law by considering the context of related provisions.
Application:
• Used to interpret ambiguous provisions by referring to the context of surrounding legal terms and clauses, ensuring consistent application.
• In Section 8 of the CGST Act, the term "composite supply" is interpreted in the context of its components, ensuring that mixed services and goods are correctly classified, applying a consistent interpretation to the scope of the term.
13. Ignorantia Juris Non Excusat – "Ignorance of the Law is No Excuse"
Meaning: A person cannot claim ignorance of the law as a defense for breaking it.
GST Context: Emphasizes the need for businesses to stay informed about GST provisions and updates.
Application:
• Used to deny claims for non-compliance based on a lack of knowledge of tax law, reinforcing the obligation of taxpayers to understand GST regulations.
Maxims Explained with Judicial Precedents and Contextual Application
1. ‘Lex Non Cogit Ad Impossibilia’
Arise Ind. Ltd. Vs. Commr. – Delhi H.C.
“It is trite that a law that is not capable of honest compliance will fail in achieving its objective. If it seeks & connected matters to visit disobedience with disproportionate consequences to a bona fide purchasing dealer, it will become vulnerable to invalidation on the touchstone of Article 14 of the Constitution.”
2. ‘Expressio Unius Est Exclusio Alterius’
Hukam Chand Shyam Lal Vs. UOI [1976 AIR 789, 1976 SCR (2)1060], Supreme Court:
“It is well settled that where a power is required to be exercised by a certain authority in a certain way, it should be exercised in that manner or not at all, and all other modes of performances are necessarily forbidden. It is all the more necessary to observe this rule where power is of a drastic nature and its exercise in a mode other than the one provided, will be violative of the fundamental principles of natural justice.”
3. ‘Noscitur A Sociis’
Sirpur Paper Mills Ltd. – A.P. High Court
“Associated words take their meaning from one another under the principle of “noscitur a sociis”. This principle is applied for ascertainment of the meaning of a doubtful word with reference to the meaning of words associated with it. From the definition of the words “Apparatus, Appliance, Equipment, Machine, Machinery, Plant, and Tool” as noticed above, one could find a common thread which runs through all these definitions and that common thread is the self-contained or complete nature of the goods.”
Parle Agro P. Ltd – Apex Court
“42. Applying the aforesaid principle of construction of ‘noscitur a sociis’ on Entry 71, it is clear that Item 5 of Entry 71 has to take colour and meaning from the other items included in Entry 71. Item 5 of Entry 71 uses the words “similar other products not specifically mentioned under any other entry in this list or any other schedule”. Thus, the products which are to be covered under Item No. 5 are similar other products. When Item No. 2 of the Entry 71 that is fruit juice, fruit concentrates, fruit squash, fruit syrup and pulp, and fruit cordial and item No. 4 that is health drinks of all varieties, are kept in mind the fruit juice-based drink shall fall in Item No. 5. Both High Court and Committee of Commissioners overlooked this principle while interpreting Item No. 5 of Entry 71.”
4. ‘Ignorantia Juris Non Excusat’
Asstt. Collr. V. Nagappa Chettiar – Madras H.C.
“Ignorance of law is undoubtedly no excuse. ‘Ignorantia juris non excusat’, as the saying goes. Therefore, the respondent cannot plead ignorance of law as a sufficient excuse for his failure to file the declaration. If this contention of the accused is to be upheld, no accused can be convicted for a similar offence, because illiteracy or ignorance due to other causes can always be pleaded.”
Strategic Role in Litigation and Drafting
Legal maxims not only add weight to legal submissions but also demonstrate a thorough understanding of jurisprudence. Legal maxims are much more than scholarly phrases — they are powerful instruments of justice. Under GST, where procedural challenges often intersect with legal complexity, these maxims play a vital role in ensuring balance, fairness, and predictability. Chartered Accountants and tax professionals should harness their utility not just for defense, but for creating persuasive, principle-based representations before tax authorities and appellate forums.
