Goods and Services Tax

Condonation of delay in statutory appeal upheld where the writ remedy was pursued bona fide and delay was otherwise uncondonable.
Case-Laws
GST
The HC followed its earlier decision in an identical matter and held that delay in filing the statutory appeal could be condoned where the appellate authority had no power to condone delay and the writ remedy was pursued bona fide. The writ petition was allowed on the same terms as in Shobhalal, the original and appellate orders were quashed, and the appellate authority was directed to hear and decide the already filed appeal on merits in accordance with law, subject to compliance with the statutory deposit and other dues directed by the Court.
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Natural justice requires alternative service of GST notice after cancellation of registration; order quashed for invalid notice.
Case-Laws
GST
Where GST registration had already been cancelled, the assessee was not required to keep monitoring the GST portal for service of a show cause notice under Section 73. The Court held that, in such circumstances, notice had to be served through alternative modes; failure to do so amounted to breach of natural justice, so the impugned order was quashed, with liberty to the department to issue a proper notice and proceed in accordance with law.
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Writ petition not entertained where an efficacious CGST Appellate Tribunal remedy remained available and could address the same grounds.
Case-Laws
GST
The HC declined to entertain the writ petition because an effective statutory appeal remedy before the CGST Appellate Tribunal was available. It noted that the Tribunal under Section 112 of the CGST Act had started functioning and that, under the notified extension, appeals against orders communicated before 01.04.2026 could be filed up to 30.06.2026. As the impugned order-in-appeal fell within that category, the petitioner could raise the same grounds before the Tribunal. The petitioner was relegated to the appellate remedy with liberty to file the appeal within the extended period.
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Efficacious alternative remedy bars writ review where statutory appeal remains available and merits are left open.
Case-Laws
GST
A writ petition challenging an adjudication order was not examined on merits because an efficacious statutory appeal was available and the limitation period for filing that appeal was still running. The HC sustained the preliminary objection, held that the petitioner's grounds could be tested before the appellate authority, and disposed of the petition without expressing any view on the merits. All issues were left open for consideration in appeal, and the petitioner was permitted to pursue the statutory appellate remedy within the time granted.
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Healthcare services exemption upheld where revenue-sharing clinical services remained direct patient care, not taxable support services.
Case-Laws
GST
Healthcare services supplied by a clinical establishment through doctors, specialists and para-medical personnel were held exempt under Notification No. 12/2017-Central Tax (Rate) read with the CBIC circular, because the substance of the arrangement was direct diagnosis, treatment and medical care to patients. The revenue-sharing structure did not convert the service into manpower supply or business support, and classification under SAC 9985 was rejected. The show cause notices seeking GST on exempt healthcare services were without jurisdiction and were quashed. The writ petitions were maintainable despite the alternative remedy objection because the notices proceeded on an erroneous denial of exemption and the foundational jurisdictional facts were absent.
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Registered owner's right to appeal in goods detention proceedings secured through supply of MOV forms and login credentials.
Case-Laws
GST
The High Court addressed the registered owner's access to the statutory remedy in detention and seizure proceedings and held that the relevant MOV forms, along with the temporary ID and password, should be furnished to the petitioner on the e-mail address stated in MOV-09. It noted that, although the forms had been prepared in the name of the driver or person in charge, the right of appeal vested in the owner of the goods. The petitioner was therefore permitted to pursue the statutory remedy, with limitation computed from compliance with the direction and no objection as to limitation to be raised.
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GST appellate remedy revived as Tribunal becomes functional; writ challenge not examined, with limitation protection and pre-deposit credit.
Case-Laws
GST
Availability of the GST Appellate Tribunal rendered the writ challenge unnecessary, as the Court noted that the Tribunal had been constituted, its procedural rules notified, and Members appointed. The petitioner was therefore relegated to the statutory appellate remedy, and the Court declined to examine the impugned orders on merits. An appeal was permitted to be filed within the period notified by the Central Government, with a direction that no limitation objection be raised if filed within that period. The amount already deposited under the interim order was treated as compliance with the statutory pre-deposit requirement, subject to production of the certified copy of the interim order and proof of deposit, and any appeal defects were to be cured within the stipulated time.
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CGST search, sealing and provisional attachment upheld where statutory remedies were available and taxpayer did not cooperate.
Case-Laws
GST
No overlapping proceedings under Section 6(2)(b) were established, because the petitioner did not show that any other competent authority had already initiated action on the same subject matter. The Court held that search and seizure under Section 67, including sealing of premises when required, and provisional attachment under Section 83 were within the CGST framework. It further held that statutory remedies existed for release of seized goods and de-sealing, yet the petitioner bypassed those remedies and did not cooperate with summons or the investigation. In these circumstances, the availability of an alternative efficacious remedy barred interference under Article 226, and the writ petition was dismissed.
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Alternate statutory remedy in tax disputes: writ petition dismissed; GST officers held competent under delegated powers.
Case-Laws
GST
Writ jurisdiction is ordinarily not exercised in tax matters where an efficacious statutory appeal exists, and the petitioner's challenges to classification, exemption, annuity receipts, composite supply, notifications and circulars were held to fall within the appellate framework. The Court found no exceptional ground such as patent lack of jurisdiction or violation of natural justice, noting that the petitioner had participated in adjudication and was heard. It also held that the Additional Director, DGGI, and the Additional Commissioner, CGST, were validly empowered as proper officers under the statutory notifications to issue the notice and adjudicate it. The writ petition was dismissed with liberty to pursue the statutory appeal.
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Restoration of cancelled GST registration permitted after pending returns and statutory dues are filed and verified.
Case-Laws
GST
Cancelled GST registration may be restored on filing an appropriate application after furnishing pending returns and paying outstanding tax dues, interest, late fee and penalty, if any. The Court followed the approach adopted in similar matters and noted the petitioner's compliance steps and readiness to discharge remaining statutory liabilities. It directed the petitioner to apply within the time granted, required the competent authority to verify compliance, and ordered restoration of the registration in accordance with law.
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Pre-show-cause GST settlement right upheld: assessee may discharge demand with tax, interest and reduced penalty if timely invoked.
Case-Laws
GST
Section 74(5) of the GST law read with Rule 142(1A) confers a statutory pre-show-cause opportunity to settle the proposed demand by paying tax, interest and reduced penalty, and the Rule must be read consistently with that right. The High Court held that use of the word “may” in Rule 142(1A) cannot defeat the mandatory effect of the principal legislation. Non-issuance of DRC-01A does not by itself make DRC-01 without jurisdiction, but where the noticee invokes the statutory benefit in reply, the assessee cannot be denied the option to discharge the demand. As the petitioner raised that plea, the adjudication was to stand satisfied on payment within the time granted.
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Condonation of delay requires consideration of pleaded explanations; rejection as time-barred set aside for non-speaking order.
Case-Laws
GST
The HC set aside the appellate order rejecting the appeal as time-barred because the authority failed to consider the petitioner's pleaded grounds for condonation of delay, including the assertion that filing was delayed due to counsel's mistake after documents had been handed over. Rejection of limitation without dealing with these material explanations amounted to non-consideration of relevant contentions and a non-reasoned decision. The matter was remitted to the appellate authority for fresh consideration in accordance with law after notice to the petitioner.
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Bona fide pursuit before a wrong forum entitled the petitioner to limitation exclusion under Section 14.
Case-Laws
GST
The Court held that time spent bona fide pursuing GST appellate relief before a wrong forum could be excluded under Section 14 of the Limitation Act, and that this question was distinct from condonation under Section 5. It distinguished authorities on Section 5 as dealing with self-contained special limitation schemes, not exclusion of time under Section 14. Applying the principle in Prakash Medical Stores, the Court found the petitioner had genuinely pursued the appeal before the Commissioner, CGST, Kanpur, and that period could not be ignored in computing limitation. The order rejecting the appeal as time-barred was set aside and the matter remitted for fresh decision.
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Fresh psyllium seeds supplied unprocessed qualify for specific GST exemption over the general seed-quality entry.
Case-Laws
GST
Raw, unprocessed Psyllium seeds (Isabgol) procured directly from farmers through APMC auctions, and supplied without drying, freezing, crushing or other processing, were treated as fresh goods under heading 1211. The Authority relied on tariff and HSN notes to hold that goods retained their natural character up to supply and did not fall within entries for frozen or dried goods. It also held that the specific exemption for fresh or chilled goods under Entry 87 of Notification No. 10/2025-Central Tax (Rate) prevailed over the more general exemption for goods of seed quality. Accordingly, the supply was held exempt from GST.
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Statutory canteen credit is allowed only for employer-borne costs for regular employees, not recovered amounts or contract workers.
Case-Laws
GST
Input tax credit on statutory canteen services is restricted by the blocked credit rule for food and beverages, but credit remains available where the employer is legally obliged to provide the facility under the Factories Act. Accordingly, canteen services for regular employees qualified only to the extent the cost was actually borne by the employer; any portion recovered from employees was outside admissible credit. Canteen services attributable to contract workers did not qualify, because they were not employees, no corresponding statutory obligation was shown, and the inward service was not used for any outward supply of the same category. The admissibility of credit was therefore confined to the employer's own statutory expenditure.
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GST applies to reserved housing flats transferred under inclusive housing obligations, with value based on comparable market sales.
Case-Laws
GST
Transfer of MHADA-reserved flats after the occupancy certificate was held taxable as works contract service, not a GST-exempt sale of immovable property. The post-completion exclusion did not apply because the applicant had undertaken a binding pre-approval obligation to construct and transfer the earmarked flats, and received additional FSI as non-monetary consideration in return. Since GST consideration includes non-cash benefits, the supply was not wholly post-occupancy and remained within Schedule II. For valuation, the Authority held that the price paid by MHADA allottees was not the sole consideration and that the MHADA-administered rate was not open market value. GST value had to be based on comparable flats sold to non-MHADA buyers in the same project.
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Recording reasons in writing is mandatory before blocking input tax credit under Rule 86-A; later explanations cannot cure the defect.
Case-Laws
GST
Blocking of input tax credit under Rule 86-A requires the competent authority to record reasons to believe in writing before exercising the power. The High Court held that a bare statement alleging fraudulent availment of ITC, without disclosure of the supporting reasons in the order itself, is a jurisdictional defect. Reasons supplied later through affidavit or instructions could not cure the invalidity, because the legality of the order must be tested on the reasons recorded at the time of decision. The blocking order was set aside, with liberty to pass a fresh order in accordance with law.
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Writ jurisdiction cannot bypass expired GST appeal remedy absent jurisdictional error or breach of natural justice.
Case-Laws
GST
Writ jurisdiction was not entertained to challenge GST proceedings after the statutory appeal period had expired, because the petitioner had replied to the show cause notice and been heard, so jurisdictional error and breach of natural justice were not established. The High Court held that Article 226 cannot be used to bypass a special appellate scheme with a limited condonable period, especially in tax matters where diligence is required. In the absence of a proper explanation for delay or any patent illegality, the petition was dismissed, with liberty to proceed in accordance with law and without affecting any future appeal.
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Bail in CGST prosecution: pre-trial detention must be exceptional where investigation is complete and trial is delayed.
Case-Laws
GST
In a prosecution under Section 132 of the CGST Act, the High Court held that pre-trial custody must remain exceptional because liberty cannot be curtailed on a punitive basis before conviction. Bail was granted after noting that the maximum sentence was five years, the matter was triable by a Magistrate, investigation was complete, complaint had been filed, there was no criminal antecedent or material showing risk of tampering, intimidation, flight, or non-cooperation, and the case was largely documentary. The Court also considered that charge had not been framed and trial was unlikely to conclude soon, so continued detention would amount to punitive custody rather than securing the trial.
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BOT road concession treated as taxable works contract; toll rights counted as consideration, not exempt toll access service.
Case-Laws
GST
A BOT road concession under GST was treated as a works contract supply because the concessionaire undertook construction, operation and maintenance of immovable property, and the right to collect toll with other contractual rights constituted non-monetary consideration by way of barter. The Court held that the sub-contract did not extinguish the concessionaire's separate tax liability under its agreement with NHAI, as the two contracts were distinct and there was no privity with the EPC contractor. The claimed exemption for toll access service was denied because it does not extend to construction service under Heading 9954; toll collection rights were treated as deferred consideration for construction. The writ was entertained since the tribunal was non-functional, but the challenge ultimately failed.
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Parallel GST adjudication barred on same subject matter; authorities must coordinate and issue a reasoned order after hearing.
Case-Laws
GST
Parallel GST adjudication on the same subject matter cannot continue once proceedings have been initiated by one authority, and Central and State authorities must coordinate to ermine which authority will proceed so the assessee is not exposed to duplicate adjudication for the same period and contravention. The Court also permitted the taxpayer to file fresh responses to the notices and directed the competent authority to consider the replies and supporting documents, hear the taxpayer, and pass a speaking and reasoned order in accordance with law. The constitutional challenge was not pressed, and the merits of the input tax credit claim were left open.
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Natural justice in GST cancellation: cryptic rejection and premature hearing notice justified writ relief despite appeal remedy.
Case-Laws
GST
HC held that cancellation of GST registration and rejection of the revocation application were vitiated by breach of natural justice. The authority had invited and received a reply but rejected it by a cryptic order without addressing the defence or recording reasons, making the decision arbitrary and non-speaking. The cancellation and revocation notices were also defective because the hearing date was fixed before expiry of the time granted to reply, denying a meaningful opportunity of hearing. Although the general rule favours the statutory appellate remedy, writ jurisdiction under Article 226 remained available where the impugned orders were patently illegal, arbitrary, or passed without fair hearing. The impugned orders were set aside and the writ petition was entertained.
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GST bail in input tax credit prosecution granted where documentary evidence and no criminal antecedents supported release.
Case-Laws
GST
HC granted bail in a GST prosecution alleging wrongful availment and passing on of input tax credit through transactions linked to a non-existent firm. The Court noted that no notice under Section 74 of the GST Act had been issued to the applicant's firm, no cancellation proceedings had been taken against its registration, and the supplier's registration was cancelled only after the relevant transactions. As the record then consisted of tax invoices, e-way bills and freight bills, and there were no criminal antecedents, the Court applied the principle that offences resting on documentary evidence ordinarily justify bail in the absence of extraordinary circumstances, and ordered release on conditions.
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Retrospective ITC extension under GST saves claims filed by 30.11.2021 from limitation-based reversal, while other objections remain open.
Case-Laws
GST
Retrospective insertion of Section 16(5) of the CGST Act saved input tax credit claims for the specified financial years when returns were filed up to 30.11.2021, notwithstanding the limitation in Section 16(4). The High Court followed its earlier common order and quashed the impugned reversal to the extent it denied ITC solely on limitation, making that coercive action unsustainable on that ground alone. The Department's liberty was preserved to proceed in accordance with law on separate issues such as discrepancy, wrong availment, excess claim, or fake ITC, if any.
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Composite works contract exemption for sewerage projects depends on local authority status and final goods-value threshold.
Case-Laws
GST
Construction and commissioning of an underground sewerage scheme was treated as a composite works contract, not a pure service, because it involved construction of sewer networks, wet-wells, pump-houses, rising mains, treatment plant, and supply, erection, testing and commissioning of equipment. For Entry 3A exemption, the Authority held that the goods-value test applies to the composite supply as a whole, not to separate sub-units, and that a Nagar Parishad qualifies as a local authority. It also found the sewerage work related to municipal public health and sanitation functions under Article 243W. Exemption was available from 25.01.2018 on the record, but only conditionally, if the actual goods component at completion did not exceed 25% of the contract value.
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