Author: admin_gst

Personal hearing in GST adjudication remains mandatory; orders issued without it may be quashed and reconsidered after hearing.
Case-Laws
GST
Personal hearing before an adverse GST order is required to satisfy principles of natural justice. Where the State cannot establish that an opportunity of hearing was granted, a challenge based on procedural unfairness is sustainable. An adverse GST order issued without such hearing is liable to be quashed, while the Department may pass a fresh order only after providing a proper opportunity of hearing.
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Reasoned GST appellate orders are required before re-credit or liability recomputation, requiring fresh examination on remand.
Case-Laws
GST
Re-credit of excess tax to an electronic credit ledger requires examination of the taxpayer's entitlement under the applicable refund framework and CBIC circulars. Relief cannot be granted without recorded reasons; the direction permitting re-credit was therefore set aside and remanded for a fresh speaking order. Recomputation of GST liability also requires a disclosed and reasoned basis, with reference to self-assessed and auto-generated returns and audit reports on record. The unexplained reduction of assessed liability was set aside and remanded for fresh determination after hearing both sides.
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E-way bill vehicle mismatch supports tax-evasion inference and sustains penalties where Part B lacks timely correction.
Case-Laws
GST
Valid e-way bill compliance requires Part B to identify the vehicle actually transporting goods. Where a vehicle breaks down and goods are transferred, the movement must be supported by contemporaneous evidence and the e-way bill must be updated or freshly generated before transit. A later e-way bill issued by the purchaser does not cure a vehicle mismatch where the driver holds the supplier's invoice and no contemporaneous material establishes purchaser-led transport. Such discrepancies are not merely technical and can support an inference of intent to evade tax. Penalty proceedings under Section 129 for transport without a valid e-way bill were confirmed.
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GST on actionable claims: retrospective valuation rules govern pending online gaming, betting and casino proceedings.
Case-Laws
GST
GST on actionable claims arising from betting and gambling, including online gaming and fantasy sports played with stakes, remains payable under the GST framework. The Supreme Court sustained the levy and the validity of the relevant provisions, Rule 31A, Rules 31B and 31C; the 2023 amendments and Rules 31B and 31C operate clarificatorily and retrospectively. Pending show-cause proceedings must be decided on that basis, with casino valuation recomputed under Rule 31C. Following an undertaking to adjudicate accordingly, the petitioner withdrew the petition without pressing reliefs.
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Effective hearing in GST adjudication requires actual opportunity to respond; ineffective service through a former auditor invalidated ex parte proceedings.
Case-Laws
GST
Effective opportunity of hearing in GST adjudication was denied where electronic notices were sent to e-mail credentials registered with an erstwhile auditor, leaving the taxpayer without effective knowledge of the proceedings. The High Court treated the explanation of loss of contact with the auditor as plausible and bona fide, and found that the resulting inability to respond justified intervention against the ex parte adjudication. The adjudication order and summary were quashed, with fresh consideration directed after a 10% deposit of the tax demand and filing of a response and supporting documents. The authority must issue a reasoned order after affording an opportunity to respond.
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Rectification timelines are directory, preserving authority's power to decide timely applications on merits after three months.
Case-Laws
GST
A timely filed rectification application remains capable of decision on merits after the three-month disposal timeline expires. The requirement that the competent authority decide the application “as far as possible” within that period is directory: it requires an endeavour to comply but neither makes the authority functus officio nor removes its jurisdiction after three months. Rejection solely on the ground that the disposal period had expired was quashed, and the application was remitted for a merits-based decision within three months.
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Proof of service for statutory summons is essential before alleging deliberate non-compliance or evasion during investigation.
Case-Laws
GST
Proof of service and acknowledgment of statutory summons are necessary to support an allegation of deliberate or wilful non-compliance during an investigation. Mere issuance of summons, without material establishing that the person concerned received and acknowledged them, does not establish intentional disobedience or evasion of appearance. On those facts, declining cognizance of the complaint was treated as free from jurisdictional error. Fresh summons may be issued where legally permissible, provided they are duly served and proof of service is maintained. No conclusion follows on the merits of the investigation or on any underlying liability or offence.
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Physical verification before GST registration cancellation is required where fake-enterprise allegations rest solely on an official list.
Case-Laws
GST
Cancellation of GST registration based solely on a list identifying an enterprise as fake requires prior physical verification of its registered business premises, particularly where the registrant has responded to the show-cause notice with documents relating to State Authority proceedings. Treating the enterprise as non-operational without that verification was improper. The show-cause notice and cancellation order were quashed, while preserving the proper officer's ability to verify the premises under the GST Rules and take further action in accordance with law.
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GST portal restoration depends on a reasoned hearing and verification of bona fide registered proprietor status before GSTR-1 access.
Case-Laws
GST
Restoration of blocked GST portal access for furnishing Form GSTR-1 requires effective consideration of the taxpayer's supporting material. The taxpayer must submit a comprehensive representation in response to the information notice, and the competent authority must decide it through a reasoned and speaking order after granting a personal hearing. Where the material establishes that the taxpayer is a bona fide registered proprietor, the GST portal must be activated within 48 hours to enable Form GSTR-1 filing. The merits of the restoration request remain subject to fresh independent determination by the competent authority.
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Personal hearing and statutory payment window: GST adjudication cannot proceed without hearing or before the payment period expires.
Case-Laws
GST
GST adjudication involving penalty or other adverse liability requires an opportunity of personal hearing. A show-cause notice stating that personal hearing is inapplicable, followed by an adjudication order without a hearing, breaches the statutory hearing requirement and principles of natural justice; a hearing in an unrelated earlier matter does not cure that defect. Section 74A(8)(ii) allows payment of tax and applicable interest within 60 days of the show-cause notice without penalty, with proceedings deemed concluded. Adjudication before expiry of that payment period contravenes the provision. Orders issued in breach of either requirement are unsustainable.
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Service-taxability of farm-product trading turnover requires examination before liability can be sustained on an unresponded adjudication.
Case-Laws
GST
Service-tax liability on turnover from trading in farm products requires examination of whether that turnover is exigible to service tax before liability can be sustained. Where the adjudicating order proceeded on the basis that no response was filed and no personal hearing was attended, reconsideration is required after allowing the taxpayer to respond and submit relevant material. The service-tax order was quashed and the proceedings restored for fresh consideration, with the taxpayer's response to be considered without rejection solely for delay. The writ petition was partly allowed.
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Anticipatory bail requires extraordinary circumstances and was refused where custodial interrogation was necessary in alleged forgery investigation.
Case-Laws
GST
Anticipatory bail was refused where allegations of cheating and forgery involved inducing purchases through fictitious firms and using forged invoices to evade deposit of collected tax. The accusations prima facie indicated the accused's involvement, while the investigation remained at an early stage. Custodial interrogation was considered necessary to establish the manner of the alleged offences and obtain material linking the accused to the fictitious firm. As pre-arrest bail requires extraordinary and exceptional circumstances, and none were established, the petition was dismissed without addressing the trial merits.
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Top Delhi High Court stories on Thursday
GST
Dated:- 10-9-2026
PTI
New Delhi, Sep 10 (PTI) Following are the top Delhi High Court stories on Thursday: LGD15 DL-HC-BHATIA-DEFAMATION (1:46 PM)

New Delhi: The Delhi High Court on Thursday asked the Cockroach Janta Party (CJP) co-convenors Saurav Das and Ashutosh Ranka to take down certain allegedly objectionable posts against BJP national spokesperson and senior advocate Gaurav Bhatia.

LGD20 DL-HC-SALMAN-FILM (3:18 PM)

New Delhi: The makers of “Kala Hiran: The Battle for Legal”, purportedly based on actor Salman Khan, on Thursday told the Delhi High Court that the movie is not ready for release as it is yet to get the censor board's certification.

LGD33 DL-HC-G

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India in Full Flow — The Decade of Demand
GST
Dated:- 10-9-2026
PTI
AILBIEA's Silver Jubilee Knowledge Conference brings the GST Appellate Tribunal, senior Customs leadership, global suppliers and Capt. Raghu Raman to Mumbai on 11 September 2026 — headlined by a live, open-floor deliberation on EMI – AEO whose Outcome Document goes to CBIC
Mumbai, India: The All India Liquid Bulk Importers & Exporters Association (AILBIEA), the apex national body for India's liquid bulk trade, will host its Silver Jubilee Knowledge Conference on Friday, 11 September 2026, from 10:00 a.m. to 4:45 p.m., at The Regal Ballroom, Hotel Trident, Nariman Point, Mumbai – 21. Themed “India in Full Flow — The Decade of Demand”, the conference precedes the Silver Jubilee Evening, which commences at the muhurat of 6:21 p.m. in the same venue.

A working agenda, not a ceremonial one
The conference opens at 10:00 a.m. with the inauguration and the welcome address by Shri Jayyannt Laps

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okers and surveyors to state plainly what is working in the Authorised Economic Operator framework, what is not, and what must change. Interventions will be captured live and consolidated into a formal Outcome Document for submission to the Central Board of Indirect Taxes and Customs, as India moves towards its AEO coverage targets for 2028. Themes include the trust-based framework, faceless examination, National E-Bond and Transfer of Ownership, Participating Government Agencies routing under SWIFT 2.0, and Customs Integrated Systems 2.0.

The afternoon: global suppliers, reform from the Department, and the flagship address
At 2:00 p.m., the Global Suppliers Panel, moderated by Shri Avinash Maheshwari of Geo-Chem Laboratories (Cotecna Group), brings the world's suppliers into candid conversation with India's buyers. It features Mr. Reece H. Cannady of the U.S. Grains & BioProducts Council, U.S.A.; Shri Vikash Sharma, Director, Godrej International Trading & Investment, Singapore;

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odrej Industries Group, Aegis Vopak, Supreme Petrochem Ltd., VVF Limited, AWL Agri Business and Hindustan Unilever Limited. AGS 360, from Atlantic Global Shipping (AGS), is the Digital Partner for the Silver Jubilee celebrations, which will also mark its India launch — an integrated digital maritime information and intelligence application bringing port information, vessel tracking and port call estimates onto a single platform. Media Partners are Daily Shipping Times, EXIM and friends from the Logistics Media Ecosystem.

Shri Jayyannt Lapsiaa, President, AILBIEA, said: “We did not want a Silver Jubilee conference of speeches. We wanted a room where the trade says plainly what it needs, the Government hears it directly, and something leaves the room in writing. Twenty-five years have taught us that when industry and Government speak with trust, trade moves faster and the nation gains.”
The Silver Jubilee Evening follows, commencing at the muhurat of 6:21 p.m., with a special

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Regular bail in GST evasion prosecution followed completed investigation, documentary evidence, low interference risk, and anticipated trial delay.
Case-Laws
GST
Regular bail in alleged GST-evasion proceedings involving suppression of online money-gaming receipts was granted after investigation had concluded. The High Court treated the documentary nature of the proposed evidence and the official status of witnesses as indicating negligible risk of evidence tampering or witness influence. It also considered the maximum punishment, Magistrate-triable nature of the offences, prolonged custody, societal roots of the accused, and the likelihood of trial delay. Bail was made subject to bonds and conditions against tampering with evidence, influencing witnesses, leaving the country without permission, or misusing liberty.
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Blocked electronic credit cannot fund appellate pre-deposit until Rule 86A restrictions are lifted through a reasoned unblocking process.
Case-Laws
GST
Blocked electronic credit ledger balances cannot be utilised for an appellate pre-deposit while a valid debit restriction under Rule 86A remains in force. Section 49(4) permits electronic credit ledger utilisation towards output-tax liabilities only subject to prescribed conditions and restrictions; it does not create an absolute right to use blocked credit. Rule 86A operates as a provisional measure requiring written reasons and permits unblocking when the grounds for restriction cease. Pending unblocking requests require expeditious consideration, with a reasoned order and reasonable opportunity where rejection is proposed.
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Input tax credit eligibility requires prior adjudication; vague notices and new appellate grounds cannot defeat inverted-duty refunds.
Case-Laws
GST
Vague show-cause notices alleging ineligible input tax credit without identifying invoices, the nature of ineligibility, or the basis for rejection cannot support denial of an inverted-duty refund. Invoice details supplied by the taxpayer do not cure that defect, and an appellate authority cannot introduce a distinct ground not stated in the notice, as doing so breaches natural justice. Eligibility of unutilised input tax credit must be determined through proceedings for wrongful availment or utilisation before the credit can be disallowed. Refund proceedings cannot be used collaterally to decide credit eligibility; absent a prior determination, refund denial on that basis is unsustainable.
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Dishonest intention at inception prevents contractual indemnity disputes from being treated solely as civil claims for FIR quashing.
Case-Laws
GST
Contractual indemnity does not bar criminal prosecution where allegations disclose cognizable offences rather than a mere civil breach. Claims that an agent introduced non-existent suppliers, produced documents to establish their genuineness, and facilitated fabricated GST invoices and supporting records for wrongful input-tax-credit claims may indicate dishonest intent from the inception of the transactions. Such disputed allegations require determination in criminal proceedings and cannot be conclusively resolved through inherent-jurisdiction proceedings to quash an FIR. The criminal proceedings were permitted to continue without any determination on the merits.
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Statutory Bar on GST Appellate Remand Requires Independent Verification and a Reasoned Fresh Decision on Merits
Case-Laws
GST
Section 107(11) of the CGST Act permits the appellate authority to conduct further inquiry and then confirm, modify or annul the appealed order, but bars it from remanding the matter to the adjudicating authority. Verification of documents and figures supporting a GST demand must therefore be undertaken by the appellate authority itself, including by calling for records where necessary. Section 107(12) requires a reasoned appellate order identifying the points for determination, the decision and the supporting reasons. A direction requiring the original authority to verify evidence and delete an untenable demand constitutes an impermissible remand and gives that authority a second opportunity. The appeal must be decided afresh after independent verification and observance of natural justice.
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Appellate remand powers under GST exclude sending matters back; appellate authorities must verify evidence and decide appeals finally.
Case-Laws
GST
Section 107(11) of the CGST Act permits an appellate authority to conduct or cause further inquiry and then confirm, modify or annul the order under appeal; it does not permit remand to the adjudicating authority. The appellate authority must independently verify relevant documents and figures and issue a reasoned final order identifying the points for determination, its decision and reasons. A direction requiring the adjudicating authority to re-examine evidence and delete or confirm a tax demand exceeds appellate jurisdiction. The appeal must instead be decided afresh by the appellate authority after necessary verification and observance of natural justice.
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Voluntary GST Payments During Investigation Require Statutory Formalities, Supporting Refund Where Coercion or Procedural Defects Exist
Case-Laws
GST
Voluntary GST payments during investigation under section 74(5) require genuine voluntariness and payment of the associated interest and penalty. DRC-03 payments lacking interest and penalty, coupled with absence of the rule 142(2) DRC-04 acknowledgment, may not qualify as voluntary payments. Where no prior demand or liability ascertainment exists and payment follows an unexplained direction to appear, recovery proceedings under section 79 do not cure the defect. Refund rejection was set aside, with refund plus interest directed, while issues in pending show-cause and adjudication proceedings remained open.
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Monetary thresholds for departmental appeals require interest-only GST disputes to be measured by disputed interest, not broader tax amounts.
Case-Laws
GST
Departmental appeals in interest-only GST disputes must be assessed against the disputed interest amount under the applicable monetary-limit circular. Where the interest in dispute is below the prescribed threshold for appeals before GSTAT and no specified exclusion applies, the departmental appeal is not maintainable and must be dismissed. The monetary threshold applies specifically to the interest component in an interest-only dispute rather than to any broader tax amount.
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Input Service Distributor credit supports SEZ units' integrated tax refund where exported services are zero-rated.
Case-Laws
GST
Rule 89 permits an SEZ unit exporting zero-rated services on payment of integrated tax to claim refund where it used input tax credit proportionately distributed through an Input Service Distributor. The supplier-only refund restriction in the proviso to Rule 89(1) applies to direct supplies of goods or services to an SEZ unit, preventing duplicate supplier and recipient claims. It does not apply where corporate-level input services are distributed as credit and no supplier can seek the refund. The declaration under Rule 89(2)(f) likewise applies only to direct, tax-collected supplies to an SEZ unit; its absence does not bar such a refund claim. Refund rejections were set aside for processing.
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Anti-profiteering in regulated housing excluded price-capped LIG/MIG units, while HIG buyers received individual ITC benefits, interest and penalty.
Case-Laws
GST
Statutorily capped LIG and MIG apartment prices, which permitted only direct-cost recovery and excluded overheads, administrative expenses and indirect taxes, did not give rise to profiteering; the analysis was confined to commercially priced HIG units. Eligible HIG purchasers were entitled individually to commensurate additional input-tax-credit benefits, without cross-adjusting excess passed to one purchaser against another purchaser's shortfall. Post-occupancy-certificate sales and unsold units were excluded from taxable-supply computation. Unpassed benefit attracted 18% compensatory interest from collection until refund. A continuing contravention after the penalty provision commenced attracted 10% penalty, subject to statutory waiver on payment within 30 days.
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Section 61 return scrutiny is not mandatory before fraud-based input tax credit proceedings, leaving factual invoice disputes for adjudication.
Case-Laws
GST
Section 61 return scrutiny is a pre-adjudicatory verification mechanism and is not a mandatory prerequisite for tax-determination proceedings under Section 74A. Rule 99 applies only where return scrutiny has actually commenced. Independent verification alleging that works-contract sub-contractors were fictitious or non-existent may provide the factual foundation for fraud-based input tax credit proceedings. Disputes over the actual existence of suppliers, provision of services, and genuineness of invoices require evidentiary adjudication rather than threshold writ review. A show-cause notice should not ordinarily be challenged in writ jurisdiction where statutory adjudication remains available and no jurisdictional defect or recognised exception is established.
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