Author: admin_gst

Portal-only service of contested GST adjudication orders does not trigger limitation for statutory appeal filing.
Case-Laws
GST
GST adjudication orders uploaded only on the common portal do not trigger the limitation period for a statutory appeal where the order-in-original was passed after contest. An assessee that replied to the show-cause notice cannot claim ignorance of those proceedings, but may pursue the appellate remedy within the prescribed period under the applicable principle for portal-only service. The writ petition was disposed of on that basis, leaving the assessee to file the statutory appeal.
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Excess ITC reversal through DRC-03 remains valid despite blank reasons column, while interest and penalty waiver may apply.
Case-Laws
GST
Excess input tax credit relating to invoices for FY 2018-19 to 2020-21 was treated as validly reversed through debit entries in the electronic cash and credit ledgers reported in Form GST DRC-03. Absence of reasons in column 8 did not invalidate the reversal, as that field was not mandatory; Form GST DRC-04 acknowledged payment and the reconciliation statement supported full reversal. Section 16(5) extended the relevant ITC entitlement. For a Section 73 demand within Section 128A, interest and penalty require fresh computation after hearing, with waiver available subject to the prescribed procedure.
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Regular bail in alleged excise-duty evasion refused due to pending investigation and risk of influencing evidence.
Case-Laws
GST
Regular bail was refused in allegations of operating an unregistered filtered tobacco manufacturing unit and evading central excise duty. Ownership of the unit and the occurrence of duty evasion were treated as matters to be proved at trial. Given the gravity of the allegations, the pending investigation and charge-sheet, and the risk that release could enable influence over evidence, bail was considered inappropriate at that stage. No opinion was expressed on the merits, and expeditious prosecution and trial were requested.
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Interest on refunded ocean freight IGST must be granted under the applicable precedent within the prescribed timeframe.
Case-Laws
GST
Interest on refunded IGST collected on ocean freight for July 2017 to March 2021 is to be granted in accordance with the principles specified in Paradeep Phosphates Ltd. The claim was treated as identical to that precedent, and the authorities were directed to pay the applicable interest within six weeks. The operative relief concerns interest on the refund of illegally collected IGST, rather than the refund entitlement itself.
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Reasonable apprehension of arrest is essential for pre-arrest bail; a CGST summons alone does not establish it.
Case-Laws
GST
Pre-arrest bail under the BNSS requires a reasonable apprehension of arrest. A summons under section 70 of the CGST Act requiring a person to provide a statement and documents does not, by itself, establish that apprehension where no notice under section 35(3) of the BNSS has been issued. An application for anticipatory bail in those circumstances is not maintainable. The applicant may seek appropriate protection if a notice under section 35(3) is subsequently issued.
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Bill-to ship-to export refunds survive toll-data objections when undisputed transport and export records prove physical movement.
Case-Laws
GST
Refund of accumulated input tax credit on exported goods remains available where bill-to ship-to supplies are supported by undisputed e-way bills, transportation, export and banking records establishing delivery and export. GST law does not require movement to commence from the supplier's registered premises, and toll plaza receipts are not a mandatory condition for credit; toll data cannot override documentary proof of physical movement. Cancellation of upstream suppliers' registrations does not by itself invalidate credit where the direct supplier is validly registered and the claimant lacks involvement in upstream irregularities. Fresh allegations and unsupported evidence beyond the show cause notice cannot be raised at the Tribunal stage, absent exceptional circumstances under the applicable evidence rules.
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Criminal antecedents justified bail refusal, while appointment of a Special Judge was sought to expedite charge framing.
Case-Laws
GST
Bail was refused because the petitioner's criminal antecedents indicated habitual offending. The Supreme Court found no reason to allow the bail petition and directed the petitioner, who was on interim bail, to surrender before the concerned court within two weeks. Delay in framing charges resulted from the absence of a posted Special Judge; the Chief Justice of the High Court was requested to appoint a Special Judge promptly so that charges could be framed and the trial expedited.
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Valid GST service requires acknowledgment or response; portal-only uploads do not trigger appeal limitation or sustain ex parte adjudication.
Case-Laws
GST
Portal-only uploading of a show-cause notice or order-in-original in the GST Common Portal's “View Additional Notices and Orders” tab does not by itself constitute valid service. Service is sufficient only where receipt is acknowledged or the taxpayer files a reply. The retrospective amendment permitting GST Rules functions through the Common Portal does not designate it as a formal mode of service for notices or adjudication orders. Consequently, portal-only upload does not commence the appeal limitation period for contested adjudication orders; where ex parte adjudication followed without a reply, proceedings are restored to the show-cause notice stage.
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Regular bail in pending GST evasion investigation declined due to alleged unaccounted stock, undocumented purchases, and offence gravity.
Case-Laws
GST
Regular bail in a pending GST evasion prosecution was declined at the investigation stage, given alleged excess stock, mismatches between documented sales and inventory, and unrecorded purchases and storage without invoices. The alleged conduct involved taxable goods not entered in the books of account and was treated as an economic offence. With investigation continuing and no charge sheet presented, the gravity of the allegations was considered insufficiently compatible with granting bail at that stage, without addressing the merits of the prosecution.
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Real estate anti-profiteering methodology requires fresh GSTAT consideration after the input-tax-credit-to-turnover computation order was quashed.
Case-Laws
GST
Anti-profiteering computation for real estate projects based on pre-GST and post-GST input-tax-credit-to-turnover ratios requires reconsideration in light of the Delhi High Court's determination on the applicable methodology. The High Court quashed the anti-profiteering order and remanded the computation issue to GSTAT for fresh consideration under that determination. It expressed no view on the merits, kept all parties' contentions open, and left the challenge to the validity of the statutory provision and rules unresolved.
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Ex parte GST rectification cannot replace fresh adjudication when replies were ignored and personal hearing was denied.
Case-Laws
GST
Rectification of an ex parte GST adjudication order cannot become a merits review through another ex parte order. Where the authority omitted to consider the assessee's replies, the defect went to the root of adjudication and required recall of the original order followed by a fresh personal hearing. Although the authority could correct an apparent error on its own motion and exercise inherent procedural-review power to cure denial of hearing, it could not sustain a revised demand without considering the replies and hearing the assessee. The subsequent ex parte rectification order was set aside and the matter remitted for fresh adjudication after granting an opportunity of hearing.
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Common Portal service alone does not validly serve contested GST notices or trigger appeal limitation periods.
Case-Laws
GST
GST notices and contested adjudication orders uploaded solely on the Common Portal, without acknowledgement of receipt or a reply, do not constitute sufficient service for the stated purposes. Portal-only upload of a show-cause notice is insufficient service, and portal-only communication of a contested order-in-original does not commence the limitation period for filing an appeal. Relief is available to affected taxpayers through the remedies recognised for defective service where notices or orders were communicated only through the Common Portal.
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Restoration of GST registration appeal ensures merits consideration after limitation-based dismissal is set aside under binding precedent.
Case-Laws
GST
Restoration of a statutory GST appeal against cancellation of registration was addressed through a High Court precedent. The writ petition was disposed of on the same terms as that precedent, reopening the appellate remedy. The appeal is to be considered on its merits rather than dismissed as time-barred.
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Uncomputed GST liability for transporter supports regular bail in alleged clandestine goods transportation without invoices and e-way bills.
Case-Laws
GST
Regular bail was granted to a transporter accused of facilitating clandestine transport of goods without invoices and e-way bills under the CGST Act. No GST liability had been computed or determined against the transporter, who was neither the manufacturer nor supplier of the goods. Considering this, the filing of the charge-sheet, the period of custody, and the likely duration of trial, bail was considered appropriate without addressing the merits. Release was made subject to the bond and surety conditions fixed by the trial court.
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GST registration cancellation for prolonged return default may operate during default, while time-barred appeals cannot be revived through writs.
Case-Laws
GST
GST registration may be cancelled for failure to furnish returns for the stipulated continuous period after an opportunity of hearing. Cancellation taking effect from a date within the period of default is not retrospective in the strict sense; however, an earlier effective date requires objective, valid reasons. A separate notice on the effective cancellation date is unnecessary where notice of the underlying non-compliances has been issued. GST appellate authorities cannot condone delay beyond the statutory maximum period. Writ jurisdiction cannot ordinarily bypass that limitation, except in exceptional circumstances such as patent lack of jurisdiction or a complete breach of natural justice.
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Road-access annuity exemption excludes deferred payments that constitute consideration for taxable road works-contract services under concession arrangements.
Case-Laws
GST
Entry 23A of Notification No. 12/2017 exempts services of providing access to a road or bridge against annuity under Heading 9967; it does not exempt road construction, design, operation and maintenance supplied as works-contract services under Heading 9954. Deferred annuity payments under a road concession agreement may therefore constitute taxable consideration where they represent the unpaid balance of project costs. Clarificatory circulars may state the applicable statutory position and guide implementation. Taxability depends on the notification and the actual nature of the supply, while an earlier advance ruling based on an erroneous understanding does not bind implementing authorities after legal clarification.
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Classification of Psyllium seeds as dried goods denies fresh-produce exemption and results in GST liability.
Case-Laws
GST
Psyllium seeds (Isabgol) supplied as raw material to processing units fall under tariff sub-heading 1211 90 13, as the tariff entry and HSN Notes specifically cover Psyllium seeds. Exemption for fresh or chilled goods depends on the condition of the seeds at the time of supply. Storage in dry, ventilated godowns, without information on storage duration, gives the seeds a dried character; they therefore cannot be treated as fresh or chilled. The specific exemption for fresh or chilled goods and the alternative exemption for goods of seed quality are unavailable. Dried Psyllium seeds are liable to GST at 5%.
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Regular bail in GST input tax credit fraud granted after investigation concluded and continued custody lacked justification.
Case-Laws
GST
Regular bail was granted to an active partner accused of availing GST input tax credit through firms whose registrations had been cancelled from inception for non-existence or non-operation. Investigation had concluded and a complaint had been filed. Given the maximum prescribed punishment and the absence of reasonable grounds for continued custody, further detention was considered unwarranted. Bail was made subject to stipulated conditions, without affecting the Department's ability to take other measures available in law or the merits to be determined at trial.
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Criminal antecedents alone cannot defeat bail where GST evidence is documentary and prolonged pre-trial detention lacks justification.
Case-Laws
GST
Bail in GST prosecutions involving alleged fraudulent input tax credit through fake invoices should not be denied solely because of criminal antecedents where no exceptional risk of evidence tampering, witness intimidation, evasion, or misuse of liberty is shown. Completed investigation, a filed complaint, predominantly documentary evidence, Magistrate-triable offences, and the absence of an immediate prospect of trial completion support release, consistent with the presumption of innocence and the non-punitive nature of pre-trial detention. Bail was granted subject to conditions preventing interference with evidence or witnesses, similar offences, unauthorised foreign travel, and requiring attendance before the trial court.
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Bail in GST input tax credit prosecutions requires concrete risks, not criminal antecedents alone, where investigation is complete.
Case-Laws
GST
Bail in GST prosecutions involving alleged fraudulent input tax credit depends on whether detention is necessary to secure trial attendance or prevent interference with justice. Criminal antecedents alone do not justify refusal without material indicating a risk of absconding, witness intimidation, evidence tampering, repetition of offences, or other obstruction. Pre-trial detention is not punitive, particularly where investigation is complete, the prosecution rests on documentary evidence, and trial may be delayed. The offence being triable by a Magistrate and carrying limited maximum punishment, together with the absence of assessment proceedings that could affect the alleged contravention, supported release on conditions protecting the trial and prosecution evidence.
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Extended limitation notices require pleaded fraud or suppression with intent to evade tax, otherwise they are unsustainable.
Case-Laws
GST
Extended limitation under Section 74 of the SGST/CGST Act requires a show-cause notice to specifically allege fraud, wilful misstatement, or suppression of material facts with intent to evade tax. A notice issued for the relevant tax period without disclosing these statutory ingredients cannot be sustained. The impugned notice was quashed, while the tax authorities retained liberty to issue a fresh notice in accordance with law.
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Legal possession for GST registration cannot be denied solely because landlords dispute the tenant's lease rights.
Case-Laws
GST
GST registration requires the registering authority to verify whether the applicant has legal possession of the business premises, without conducting a detailed adjudication of landlord-tenant disputes over the scope of lease rights. Lease documents permitting showroom operations, co-lessees' authorisation for a managing partner to form and operate a partnership firm, and landlords' own proceedings indicating the partner's possession may prima facie establish the firm's legal possession for registration purposes. Where a registration application lacks required supporting documents, a fresh application may be filed with those documents and must be considered in accordance with these principles within the stipulated period.
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Input tax credit reversal amendment operates prospectively, while unsupported fraud allegations require assessment under ordinary demand procedures.
Case-Laws
GST
CBIC monetary-limit instructions bind central tax officers, not the Tribunal. Where a composite order covers multiple demands, the total amount involved must be considered; appeals concerning recurring issues or statutory interpretation fall outside the monetary-limit bar. Duty credit scrips became exempt supplies in 2017, but their exclusion from aggregate exempt supplies for proportionate input tax credit reversal applies prospectively from 5 July 2022. The later amendment conferred a prospective benefit and did not retrospectively alter earlier reversal obligations. Extended demand proceedings require material showing fraud, wilful misstatement or deliberate suppression intended to evade tax; mere non-declaration is insufficient. Absent such material, tax liability must be determined under the ordinary demand procedure after hearing the taxpayer.
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Input tax credit benefits must reach eligible property buyers, with interest and potential anti-profiteering penalties for shortfall.
Case-Laws
GST
Additional input tax credit arising in a construction project must be passed to eligible buyers through commensurate price reductions under the anti-profiteering framework. Buyer-wise verification may establish that substantial credit has been passed on while identifying outstanding benefit due to remaining recipients. Unpassed benefit attracts interest from the date of supply because recipients were deprived of the monetary benefit; it cannot generally be withheld against disputed consideration where a separate consumer dispute remains pending. Continuing failure to pass on benefit after the penalty provision took effect can also attract a penalty, subject to the statutory relief available where the profiteered amount is deposited within the prescribed period.
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Parallel GST proceedings require identical subject matter, while fact-intensive objections should ordinarily proceed through statutory appeal.
Case-Laws
GST
Parallel GST proceedings are barred only where Central and State proceedings concern the same subject matter. Common input tax credit issues or the same financial year alone do not establish that condition; the respective show-cause notices, allegations, transactions, computations, evidentiary material and proposed liabilities require comparison. Where an effective statutory appeal is available and the objection requires examination of the underlying record, writ jurisdiction need not be exercised. Failure to raise the objection in a written reply and participation in adjudication may be relevant to discretionary writ relief, without deciding the objection on its merits. The parallel-proceedings issue and demand challenge remain available for appellate consideration.
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