Goods and Services Tax

Seizure and Penalty Under Section 129 CGST Quashed for Mere Wrong PIN Code in E-Way Bill
Case-Laws
GST
HC examined seizure of goods and penalty imposed u/s 129 CGST Act on the ground that the tax invoice mentioned an incorrect PIN code for the “ship to” address in a bill-to-ship-to transaction from Gujarat to West Bengal. The HC noted that the consignee's address was otherwise correct, all prescribed documents accompanied the consignment, and no other discrepancy or irregularity was found by the authorities. Relying on the applicable circular clarifying that proceedings u/s 129 should not be initiated where only the PIN code is incorrect and there is no intent to evade tax, the HC held the seizure and penalty unsustainable, set aside the impugned orders, and allowed the writ petition.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Appeal Dismissal for Alleged Amnesty Scheme Opt-In Quashed; Only Appellant May Withdraw, Matter Remanded for Fresh Hearing
Case-Laws
GST
The HC set aside the appellate authority's order dated 17 February 2025 dismissing the petitioner's appeal on the ground of the petitioner's alleged intent to avail an Amnesty Scheme. The HC held that, even if withdrawal of the appeal was a precondition to claim amnesty, only the petitioner could elect to withdraw; the appellate authority had no jurisdiction to dismiss the appeal suo motu absent any withdrawal request. Such dismissal, without notice or hearing, unlawfully deprived the petitioner both of eligibility under the Amnesty Scheme and of adjudication on merits. The HC remanded the matter to the appellate authority to rehear and decide the appeal afresh on merits, in accordance with law. The petition was allowed by way of remand.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Tax demand beyond show-cause notice violates s.75(7) KGST Act; assessment set aside and case remanded
Case-Laws
GST
The HC held that the impugned assessment order confirming tax demand of Rs. 6,93,77,821/-, in excess of the sum of Rs. 2,49,63,816/- proposed in the show-cause notice, was contrary to s.75(7) KGST Act and violative of principles of natural justice. It observed that the authority could not travel beyond the quantification in the SCN and that the rectification application was wrongly rejected on jurisdictional grounds. Consequently, the HC set aside the impugned order-in-original and the consequential order (Annexures-A and A1) and remanded the matter to the jurisdictional authority (R-3) for fresh consideration and reassessment strictly in accordance with law, after affording due opportunity of hearing to the petitioner. The petition was allowed by way of remand.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Omission of Rule 96(10) CGST Rules Ends All Pending Actions, Benefits Assessees Under Section 16 IGST Act
Case-Laws
GST
HC held that, consequent to the omission of Rule 96(10) of the CGST Rules w.e.f. 08.10.2024 and its inconsistency with s.16 of the IGST Act, no proceedings can validly continue under the said rule. All pending SCNs, consequential orders and appeals founded on Rule 96(10) were held to be non-sustainable, as the omission must operate to the benefit of all assessees in ongoing matters. In the present case, proceedings were only at the summons stage; hence, the HC quashed the summons, the SCN and all subsequent orders arising therefrom. The petitioner, having already made the additional 10% pre-deposit while pursuing appellate remedies, is entitled to refund/relief without being subjected to any further action under the omitted Rule 96(10). The writ petition was accordingly allowed.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Writ Against Section 74 CGST Show Cause Notice Rejected; Taxpayer Directed To Reply Within 15 Days
Case-Laws
GST
HC examined the challenge to a SCN issued u/s 74 of the CGST Act for recovery of tax, interest and penalty, where the petitioner contended absence of allegations of fraud and non-fulfilment of statutory ingredients. HC reiterated that though writ jurisdiction under Art. 226 can be invoked even at the SCN stage, such interference is warranted only when the notice is shown to be null for want of jurisdiction or issued by an incompetent authority. Finding no inherent lack of jurisdiction or incompetence in the issuing authority, HC declined to entertain the petition against the SCN. Petition was disposed of, granting petitioner up to 15 days to file reply, and directing adjudication with due hearing.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Petitioner society recognized as Government Entity under Clause (zfa) 13.10.2017 notification, securing full tax exemption relief
Case-Laws
GST
HC adjudicated that the petitioner-society qualifies as a “Government Entity” under Clause (zfa) of the 13.10.2017 notification, since it is controlled and substantially funded by the State and satisfies the statutory requirement of 90% or more participation by way of equity or control. Upon harmonious construction of the relevant notifications and definitions, HC held that the tax exemption granted to a “Government Entity” squarely applies to the petitioner. The contrary view taken by the fourth respondent, merely relying on the fact that other similar entities are paying tax, was found unsustainable in law. Consequently, the impugned communication dated 07.07.2021 was quashed and the writ petition was allowed in full.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Ex parte DRC-07 order set aside; fresh CGST/KGST adjudication deferred pending SLP on Notifications 56/2023, 25/2023
Case-Laws
GST
HC entertained the writ petition challenging an ex parte adjudication order passed under DRC-07 and the vires of Notifications No.56/2023-CT and 25/2023 FD 20 CSL 2023 under the CGST/KGST Act, 2017. Observing that the validity of the impugned notifications is sub judice before the Apex Court in Special Leave to Appeal (C) No.4240/2025 and that such decision will materially affect the impugned proceedings, HC set aside the ex parte adjudication order. HC remitted the matter to the 1st respondent for de novo adjudication strictly in accordance with law, to be undertaken only after disposal of the aforesaid SLP by the Apex Court, and after affording due opportunity of hearing to the petitioner. The writ petition was accordingly allowed by way of remand.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Cross-LoC trade constitutes intra-state trade, observes J-K High Court
GST
Dated:- 29-11-2025
PTI
Srinagar, Nov 28 (PTI) Jammu and Kashmir and Ladakh High Court has said the cross-Line of Control (LoC) trade between the Union territory and Pakistan-Occupied Kashmir constitutes intra-state trade under the GST Act, as PoK is legally a part of the territory of the erstwhile state of J&K.
The Court was hearing writ petitions filed by traders who had engaged in barter/supply transactions with people across the LoC during 2017-2019.
The petitioners have challenged the show-cause notices issued by tax authorities demanding GST, challenging the territorial and supply classification on various grounds.
A division bench comprising J

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Economic growth may exceed 7 pc, GDP to cross USD 4 tn mark in FY26: CEA
GST
Dated:- 28-11-2025
PTI
New Delhi, Nov 28 (PTI) Buoyed by more-than-expected 8.2 per cent GDP growth rate in the second quarter, Chief Economic Adviser V Anantha Nageswaran on Friday expressed optimism that India's economic growth will exceed 7 per cent this fiscal and the size of the GDP will cross the USD 4 trillion mark.
The Economic Survey tabled in Parliament in January had projected real economic growth of 6.3-6.8 per cent for FY26.
Briefing reporters after the release of the second-quarter GDP growth, Nageswaran said the Indian economy is expected to cross USD 4 trillion in the current fiscal year, given the current rate of growth.
India's Gros

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

nt in the preceding three months and 5.6 per cent in the year-ago period, was aided by a strong showing from the services sector, which clocked double-digit growth.
Improving price dynamics and tax reforms are expected to boost household disposable incomes, strengthening the near-term consumption outlook, he added.
The third quarter (October-December) of the current fiscal year has commenced on a sound footing, the CEA pointed out.
The cumulative GST collection growth of 9 per cent for April–October 2025 indicates that the underlying revenue stream has remained resilient, aided by firm consumption and improved compliance.
Healthy corporate sector balance sheets augur well for sustained private investments in H2 of FY26, he said.
Nagesw

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Indian economy remains world's fastest growing despite US tariffs
GST
Dated:- 28-11-2025
PTI
New Delhi, Nov 28 (PTI) India's economy grew at a higher-than-expected 8.2 per cent – the fastest pace in six quarters – in July-September, as front-loading of production ahead of GST rates cut boosted consumption that helped offset the impact of steep US tariffs.
The 8.2 per cent gross domestic product (GDP) growth, which follows a 7.8 per cent expansion in the preceding April-June quarter, helped India retain the title of the world's fastest growing major economy, according to official data released on Friday.
The GDP growth came ahead of the festive season consumption boost on the back of the implementation of a significant reduction in the goods and services tax (GST). It, however, does not factor in the full quarter impact of an additional 25 per cent punitive tariff on Indian exports that took the total levy to 50 per cent in August.
The expansion, which was more than China

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

fect on September 22.
Private consumer spending, which accounts for around 57 per cent of GDP, rose 7.9 per cent in July-September – the second quarter of the current 2025-26 fiscal – compared to a 7 per cent rise a quarter ago, according to data released by the National Statistics Office (NSO).
Manufacturing output rose 9.1 per cent against a growth of 7.7 per cent in the preceding quarter and 7.6 per cent in the year-ago period, while construction expanded 7.2 per cent from 7.6 per cent in the previous quarter. Government spending decelerated, declining 2.7 per cent in Q2, compared to a growth of 7.4 per cent in the previous quarter.
Finance Minister Nirmala Sitharaman said the GDP print shows that reforms and fiscal consolidation drove the Indian economy's robust growth and momentum.
“Various high-frequency indicators also point to continued economic momentum and broad-based consumption growth,” she said in a social media post. “The GDP estimates released today show the robust e

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

arter (October-December) of the current fiscal year has commenced on a sound footing, he pointed out.
Further, the rural demand remains resilient while urban demand is gaining traction post-GST rate cut.
While the real GDP growth at 8.2 per cent in the second quarter exceeded expectations, the nominal print was modest at 8.7 per cent.
The difference between real and nominal is the smallest since the third quarter of fiscal 2020.
The third quarter is expected to continue benefiting from a low base and deflator. Also, aiding is the GST rate cut that bolstered private consumption, complementing reduced income tax and interest rates cuts because of the RBI repo rate reductions.
Dharmakirti Joshi, Chief Economist, Crisil Ltd, said the GDP series is getting revised to a new base of 2022-23 from 2011-12, which will capture the economy better, but can lead to deviation from current estimates.
DBS Bank economist Radhika Rao said the impact of deflator and low base was also reflected in th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

India records six-quarter high GDP growth of 8.2 pc in Q2
GST
Dated:- 28-11-2025
PTI
New Delhi, Nov 28 (PTI) The Indian economy grew by a higher-than-expected 8.2 per cent a six-quarter high as increased factory production in anticipation of a consumption boost from the GST rate cut helped offset deceleration in farm output.
The growth in the second quarter, which compared to 7.8 per cent in the preceding three months and 5.6 per cent in the year-ago period, was also aided by a good showing by the services sector, which clocked double-digit growth.
The previous high at 8.4 per cent was posted in the fourth quarter (January-March) of fiscal 2023-24.
The expansion helped India retain its position as the world's fastest-growing major economy. During the July-September quarter, the Chinese economy grew by 4.8 per cent.
As per data released by the National Statistics Office (NSO), the Gross Domestic Product (GDP) in the first half of 2025-26 worked out to be at 8 per cent,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

tions, printing at a six-quarter high of 8.2 per cent in Q2 FY2026, and displaying an acceleration over the 7.8 per cent growth seen in Q1 FY2026, in contrast to the widespread market expectation of some moderation.
While the government's final consumption expenditure expectedly contracted, led by weak revenue spending, the growth in gross capital formation moderated between these quarters, she said, adding that discrepancies played an important role in bumping up the GDP growth in Q2 FY2026 compared to the preceding quarter.
“An adverse base, the potential negative impact of US tariffs and limited headroom for capital spending by the Government of India (vis-a-vis the Budget Estimates) may dampen the pace of growth from the robust 8 per cent seen in H1 FY2026. Nevertheless, the FY2026 real GDP expansion now appears set to materially exceed 7 per cent,” she noted.
With the Q2 FY2026 GDP growth exceeding 8 per cent, she said, the probability of a rate cut in the December 2025 MPC rev

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

imated at Rs 96.52 lakh crore against Rs 89.35 lakh crore in H1 of 2024-25, registering a growth rate of 8 per cent.
Nominal GDP or GDP at Current Prices in H1 of 2025-26 is estimated at Rs 171.30 lakh crore compared to Rs 157.48 lakh crore in H1 of 2024-25, showing a growth rate of 8.8 per cent, the statement said.
Gross Fixed Capital Formation (GFCF) has recorded a 7.3 per cent growth rate at Constant Prices against the growth rate of 6.7 per cent in Q2 of FY25.
The discrepancies (differences in values calculated using different methods of GDP estimation) jumped to Rs 1.62 lakh crore during the second quarter of this fiscal.
India's Q2 FY 2025–26 GDP growth came in stronger than expected at 8.2 per cent year-on-year, Rumki Majumdar, Economist, Deloitte India, said.
“With festive season spending and the momentum from GST 2.0 likely to support activity in Q3, we anticipate a significant upward revision to full-year growth estimates,” she said.
India's GDP deflator has fallen to i

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Vyapar Acquires Suvit to Transform IndiaÂ’s MSME and Tax Professional Ecosystem
GST
Dated:- 28-11-2025
PTI
Bengaluru (Karnataka) [India], November 28: A bold step toward India's most powerful accounting-tech ecosystem — Vyapar, one of the country’s leading business management platforms, has fully acquired Suvit, an AI-powered automation accounting software recognised by the Institute of Chartered Accountants of India (ICAI). The acquisition marks a significant step toward creating a connected digital ecosystem for MSMEs, CA and Tax Professionals, offering them a unified platform for business management, automation, and compliance.
Empowering MSMEs through a Unified Digital Future
IndiaÂ’s MSMEs form the backbone of the economy

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ls to handle more clients and manage their compliance efficiently. Ensuring to reduce their time and effort significantly. ”
SuvitÂ’s Role in the Next Phase of Growth
Founded by Ankit Virani, Suvit has become a trusted automation platform that helps tax professionals and businesses save as much time as possible on manual data entry and GST reconciliation. Its AI-led platform automates pre-accounting processes, enhances accuracy, and improves decision-making with advanced analytics.
“Suvit was built to simplify compliance for tax professionals,” said Ankit Virani, Founder and CEO of Suvit. “Joining Vyapar allows us to extend this vision to millions of MSMEs, combining automation and accessibility to deliver an integrated digital experie

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e multiple clients with greater ease.
Together, Vyapar and Suvit are redefining how IndiaÂ’s small businesses manage their financial operations, reducing complexity and improving compliance accuracy by driving the overall operational efficiency across the MSME landscape.
About Vyapar
Vyapar GST Billing and Accounting Software company is a Bengaluru-based business management solutions provider dedicated to simplifying financial operations for IndiaÂ’s SMEs.
With a mission to make business management effortless and affordable for MSMEs, Vyapar provides a comprehensive suite of tools that integrate billing, accounting, inventory management, GST filing, and cash flow management into a single, seamless platform. Trusted by over 1 Crore+ bu

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Coordinated CGST action ordered to avoid parallel adjudication, clarifying taxpayer duties under Section 6(2)(b) CGST Act
Case-Laws
GST
HC disposed of the writ petition by directing coordinated action between Central and State GST authorities in line with binding precedent on Section 6(2)(b) CGST Act. HC noted that Central authority has already issued a show cause notice, while State authority has issued prior summons and DRC-01A intimation. The petitioner is mandated to appear before the Central authority, file a detailed reply to the show cause notice with all contentions and documents by the stipulated date, and comply with all lawful summons and requisitions of the State authority, including informing it of the Central proceedings. Thereafter, State and Central authorities must communicate, verify the assessee's claims, and ensure no parallel adjudication on the same subject-matter, proceeding further only in accordance with law and principles of natural justice.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ITC disallowance on non-motor insurance under s.17(5) CGST Act quashed due to factual misclassification of policy
Case-Laws
GST
HC allowed the writ petition filed by the assessee, holding that the disallowance of Input Tax Credit (ITC) under s.17(5) CGST Act on insurance premium was without jurisdiction and based on an erroneous factual premise. The revenue had treated the insurance policy as motor vehicle insurance, whereas the record clearly showed it was for stock, premises, STFI cover, earthquake risk, and manufacturing equipment, which are not covered by the ITC restriction under s.17(5). As all other proposed additions had been dropped and only this ITC disallowance remained, the HC held that the impugned assessment order and notice were vitiated by incorrect assumptions of fact. The impugned order and notice were quashed and set aside.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Writ against GST show cause notice dismissed, assessees directed to pursue statutory remedy on classification dispute
Case-Laws
GST
The HC dismissed the writ petitions challenging the show cause notice on GST classification, holding them non-maintainable in view of the efficacious alternative statutory remedy. It was held that the proper Adjudicating Authority had issued the notice, and the case did not disclose either lack of jurisdiction or violation of natural justice to justify writ interference at the notice stage. The Petitioners were directed to submit their replies, raise all permissible legal and factual defences, and produce all relevant material before the Adjudicating Authority, which is best suited to undertake the necessary factual inquiry and determine the correct classification. Consequently, the HC declined to bypass the appellate hierarchy and refused to quash the show cause notice, dismissing the petitions.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Paisabazaar Deepens Retail Reach in NCR, will offer Udyam and GST Services for Small Businesses
GST
Dated:- 27-11-2025
PTI
Gurugram, Haryana, India (NewsVoir) Furthering its mission to enable underserved consumers to access financial products and make informed choices, Paisabazaar has introduced Udyam registration, GST registration, and GST filing services across its retail stores. These services are aimed at self-employed individuals—one of the most credit-challenged segments—who often face barriers arising from inadequate documentation, insufficient financial records, and limited familiarity with digital channels.
At these stores, trained experts would provide consumers with expert advice, curated recommendations according t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

rs can walk in and also explore various credit options, such as business loans, personal loans, home loans, etc., at these stores and get end-to-end assistance in choosing the right option for their credit requirements.
In addition to these services, consumers visiting Paisabazaar retail stores can check their free credit score and explore the best available loan and credit offers. Trained experts also assist them in understanding their credit profile, improving their credit health, and making better financial decisions.
Currently, Paisabazaar retail stores are operational in Gurugram (Jail Road), Noida (Sector 15) and New Delhi (Lajpat Nagar), where consumers can avail Udyam, Aadhaar and GST registration, along with expert assistance f

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST rate rationalisation boosts consumption; economy to maintain growth momentum: FinMin report
GST
Dated:- 27-11-2025
PTI
New Delhi, Nov 27 (PTI) The GST rate rationalisation gave a “measurable” boost to consumption, and the Indian economy is on a stable footing to navigate risks and maintain growth momentum through the current fiscal, a finance ministry report said on Thursday.
The Finance Ministry's Monthly Economic Review for October said that with inflationary pressures easing and recent tax reforms boosting household disposable incomes, the near-term consumption outlook appears increasingly positive.
Retail inflation has reached an all-time low in the current series, dropping to 0.25 per cent in October 2025, down from

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

re evident over the next two quarters,” it added.
Effective September 22, the GST rates on about 375 items were slashed, making mass consumption items cheaper. Also, GST rates of 5, 12, 18, and 28 per cent have been clubbed into two rates of 5 per cent and 18 per cent, resulting in a reduced price of 99 per cent of daily use items.
The finance ministry report said the external environment remains characterised by elevated trade policy uncertainty, though global pressures have moderated relative to earlier peaks.
With regard to growth prospects, it said that various independent economic assessments place real GDP growth for Q2 FY26 in the range of 7–7.5 per cent, indicating continued strength in underlying economic activity.
Overall,

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ned public capital expenditure, and firming rural and urban demand places the economy on a stable footing, positioning it to navigate emerging risks and preserve its growth momentum through the remainder of FY26,” said the Monthly Economic Review.
The report said that corporate performance remained healthy during the month, with sustained profitability and stable balance sheets. Domestic financial markets continue to draw strength from firm institutional participation.
The report called for structural reforms to sustain and accelerate job creation in the economy.
In a bid to reform the labour markets, the Government of India has implemented 4 Labour Codes: the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Socia

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Delay in Section 107 CGST appeals, refunds violates one-year limit; authority ordered to decide by 10 January 2026
Case-Laws
GST
The HC held that the prolonged non-disposal of statutory appeals filed in 2021, 2022, and 2023 under Section 107 of the CGST Act, 2017, and consequential delay in refund, was contrary to the statutory mandate requiring disposal within one year. Observing that such undue delay and blocking of refunds adversely affects business, the HC directed the Appellate Authority to adjudicate all pending appeals filed by the petitioner on or before 10 January 2026, by passing reasoned orders in accordance with law. The HC further directed that, if any refund is ultimately found due to the petitioner, the same shall be released along with statutory interest for the entire period of delay. The writ petition was accordingly disposed of.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST registration cancellation without reasons violates natural justice; mechanical orders set aside, registration restored under Section 29 CGST Act
Case-Laws
GST
The HC held that the cancellation of the petitioner's GST registration violated principles of natural justice, as the SCN was devoid of reasons and the Adjudicating Authority failed to consider the petitioner's timely replies and supporting documents. The HC found the orders of the Adjudicating Authority to be mechanical, templated, computer-generated and passed without application of mind, and characterised the approach as cavalier and negligent. The HC further held that the Appellate Authority's order, which ignored the material on record, was equally erroneous. Consequently, the HC set aside the appellate order dated 30.04.2025, the cancellation order dated 26.11.2024, and the revocation rejection dated 08.01.2025, and directed restoration of the petitioner's GST registration, disposing of the petition.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Negative blocking of ITC beyond available credit held ultra vires Rule 86A; excess electronic ledger block quashed
Case-Laws
GST
HC examined the challenge to negative blocking of ITC in the petitioner's electronic credit ledger beyond the credit actually available on the relevant date. Relying on its earlier ratio in Rawman Metal & Alloyes and concurring with views of other HCs that negative blocking is ultra vires Rule 86A, the HC held the impugned communication/order invalid to the extent it blocked ITC in excess of Rs. 7,06,770/-. As the petitioner did not dispute blocking up to Rs. 7,06,770/-, the order was sustained only to that limited extent. A writ of mandamus was issued directing the respondent authorities to immediately unblock ITC blocked over and above Rs. 7,06,770/- in the petitioner's electronic credit ledger. The writ petition was accordingly disposed of.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Single appeal allowed under Section 107 CGST Act against consolidated DRC-07 demand order spanning multiple financial years
Case-Laws
GST
HC adjudicated a writ petition challenging a consolidated SCN (DRC-07) and resultant common order dated 3 February 2025 covering multiple financial years under CGST. HC held that, notwithstanding the multi-year demand, a single, common order permits the assessee (Petitioner) to file one consolidated statutory appeal under Section 107 CGST Act before the Appellate Authority. HC granted liberty to file such appeal on or before 20 December 2025, extended the period for making the mandatory pre-deposit up to that date, and directed that any appeal so filed shall not be rejected on limitation grounds and must be decided on merits. Petition was accordingly disposed of.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Writ Petition Rejected: GST S.73 Order Challenge Barred for Bypassing S.107 Appeal and Limitation under Arts.226/227
Case-Laws
GST
The HC dismissed the writ petition filed by A against the adjudication order passed under S.73 of the GST Act on the ground of non-maintainability. It held that a statutory appellate remedy under S.107 was available and the appellate authority's power to condone delay is strictly confined to an additional thirty days beyond the initial three-month limitation, with no jurisdiction to extend it further. The impugned order dated 22.10.2024 was challenged only on 23.10.2025, with no sufficient cause pleaded for not availing the appellate remedy or for the belated approach to the HC. The HC found that A sought to circumvent the statutory scheme and therefore refused to exercise its writ jurisdiction under Arts.226/227.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Pre-deposit already paid under protest held sufficient, appeal restored and remanded for decision on merits
Case-Laws
GST
HC allowed the writ petition, holding that the appellate authority (R-1) had erred in dismissing the petitioner's appeal for alleged non-compliance with the mandatory 10% pre-deposit requirement. HC held that the amount already deposited by the petitioner under protest constituted sufficient compliance with the statutory pre-deposit condition and ought to have been reckoned for entertaining the appeal on merits. Consequently, the impugned order dated 28.02.2024 at Annexure-H was quashed and set aside. The matter was remanded to R-1 for fresh consideration of the statutory appeal on merits, strictly in accordance with law, without insisting on any further pre-deposit from the petitioner.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Relief Denied Under Art. 226 for GST Fraud Scheme Despite s.68 and r.138 Compliance; Costly Seizure Upheld
Case-Laws
GST
HC held that, although the procedural requirements under s.68 and r.138 CGST Rules for movement of goods were ostensibly complied with and the vehicle was no longer in transit, the petitioner's conduct disentitled it to equitable relief under Art. 226. The record established that the petitioner, in collusion with others, had devised a systematic scheme to defraud the revenue by fabricating sham transactions and availing fraudulent input tax credit through bogus entities and fictitious outward liabilities, exploiting systemic gaps in the GST framework. HC declined to interfere with the seizure and detention proceedings, refused the relief of release of goods and conveyance, and dismissed the writ petition with costs of Rs. 5,00,000 to be recovered from the petitioner-company through its Director.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Assessment under AGST Section 73 quashed for no proper show cause; DRC-01 summary not valid notice under Rule 142
Case-Laws
GST
HC held that the assessment proceedings under Section 73 of the AGST Act, 2017 were vitiated for violation of principles of natural justice, as no proper and prior show cause notice under Section 73(1) was issued to the petitioner. Service of only a Summary of Show Cause Notice in Form GST DRC-01 and an Attachment to Determination of Tax was held not to satisfy the mandatory requirements of Section 73(1) to (8), (10), (11) and Rule 142(1) of the AGST Rules, 2017. A summary was expressly held not to be a substitute for a substantive show cause notice by the proper officer. Consequently, the impugned order dated 25.02.2025 passed under Section 73(9) was declared unsustainable in law, set aside and quashed. The writ petition filed by the anonymized petitioner was accordingly disposed of.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =