Author: admin_gst

Omitted GST refund rule applies to pending recovery proceedings, requiring reconsideration where no savings clause preserves prior operation.
Case-Laws
GST
Omission of Rule 96(10) of the Central Goods and Services Tax Rules, 2017, without a savings clause was treated as applying to pending refund-recovery proceedings. Applying the Supreme Court pronouncement on the effect of such omission, the High Court set aside the refund-recovery orders and remanded the matters for fresh consideration under that principle. The merits of the refund-recovery claims were not decided.
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Post-cancellation GST notice service requires an alternative mode; portal-only assessment breaches natural justice and permits fresh proceedings.
Case-Laws
GST
Service of a GST show-cause notice solely through the portal after cancellation of registration may deny the taxpayer a proper opportunity to respond. Once registration is cancelled, the taxpayer is not required to continue checking the GST portal; an alternative mode of service is required. An assessment founded only on such portal-based notice breaches principles of natural justice and was set aside. Fresh proceedings may be initiated upon proper notice, and any recovered amount remains subject to the final outcome of those proceedings.
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Reusable gunny bag classification determines GST treatment based on continued packing utility and sale value.
Case-Laws
GST
Used jute gunny bags without plastic coating remain classifiable as reusable packing bags under Heading 6305 where they are intact, identifiable and fit for repacking agricultural produce. Classification turns on the goods' condition, essential character, commercial identity and functional utility at supply; prior use or auction sale does not by itself convert them into scrap. Worn sacks and bags fall outside Heading 6309, while Heading 6310 applies only to worn-out textile materials fit solely for recovery. GST is determined by sale value per piece: 5% up to the prescribed threshold and 18% above it. Torn, worn-out or cut bags unfit for reuse require separate classification examination.
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Compulsory acquisition compensation is not a GST supply, making tax deductions from land acquisition awards unlawful and refundable.
Case-Laws
GST
Compulsory acquisition of land and attached structures under eminent-domain powers is an expropriation, not a supply of goods or services for GST purposes. Land and buildings are immovable property and cannot be treated as goods, while a landowner does not provide any service through statutory acquisition. GST deducted from acquisition compensation therefore lacks statutory basis, is beyond the acquiring authority's power, and must be refunded with interest. Interest awarded on compensation under the Land Acquisition Act to account for the period until payment forms part of compensation and is not subject to tax deduction at source.
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Show-cause notice limits penalty liability: imposing a handler's proposed penalty on the petitioner required fresh adjudication.
Case-Laws
GST
Penalty under section 122(1A) of the CGST Act must be imposed consistently with the person identified in the show-cause notice. Specified penalties were proposed against the petitioner, while the separate section 122(1A) penalty was proposed against its handler/operator; nevertheless, both penalties were imposed on the petitioner. As this mixing of proposed penalties was not specifically controverted, the penalty order was quashed and remanded for fresh adjudication after hearing the petitioner, with other issues left open.
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GST registration cancellation requires independent satisfaction and tangible evidence; nil GSTR-3B turnover alone cannot establish business discontinuance.
Case-Laws
GST
Cancellation of GST registration under Section 29 requires the Proper Officer's independent satisfaction, based on cogent and tangible material, that a statutory ground for cancellation exists. Nil turnover declared in GSTR-3B returns alone does not establish discontinuance of business, especially where material indicates that business continued from the registered premises. A show-cause notice founded solely on nil turnover does not disclose a circumstance warranting cancellation. The cancellation and rejection of revocation were quashed, while the authority retained liberty to verify whether the business continued and proceed in accordance with law.
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GST amnesty waiver timing depends on when input tax credit was availed, excluding later-period claims despite earlier debit notes.
Case-Laws
GST
GST amnesty waiver eligibility for interest and penalty depends on the disputed input tax credit being availed within the prescribed statutory period, rather than on the financial year in which the underlying debit notes were issued. Excess credit first claimed in the December 2020 return fell outside the scheme's temporal scope despite its connection with debit notes from 2018-19. Guidance or decisions concerning input tax credit mismatch reconciliation cannot extend an expressly limited statutory period. The waiver was unavailable, and the interest and penalty on the excess credit claim were sustained.
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Portal-only GST service does not trigger appeal limitation without acknowledged receipt or response to notice.
Case-Laws
GST
Portal-only service of GST show-cause notices is insufficient where there is no acknowledgement of receipt or response to the notice. Similarly, uploading a contested order-in-original solely on the Common Portal does not commence the limitation period for filing an appeal. Taxpayers affected by notices or adjudication orders served only through the portal may seek the remedies available for defective service, including protection against limitation being calculated from the portal-upload date alone.
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Delayed GST statutory appeals proceed on merits only after tax, interest and penalty deposit conditions are met.
Case-Laws
GST
Delayed statutory appeals against GST assessment orders may be pursued where the taxpayer undertakes to pay outstanding tax and interest and deposits 10% of the penalty. Upon compliance, the appellate authority must decide the appeal on merits without applying limitation. If the conditions are not met, tax recovery may proceed after due notice. The permission remains conditional on these payments.
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GST valuation notices must disclose the applicable rule; confirmation on a different rule violates natural justice.
Case-Laws
GST
GST valuation proceedings require the show-cause notice to identify the valuation rule on which the proposed demand rests. Where a notice invokes Rule 28(a), but the adjudicating authority finds that rule inapplicable and instead confirms the demand under Rule 27(c), the taxpayer must receive notice and an opportunity to respond to that distinct basis. Substituting the valuation rule at adjudication causes prejudice and breaches natural justice. A fresh show-cause notice is required before proceedings may be pursued on the revised valuation basis.
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Sale of hazardous detained goods must proceed promptly when unpaid GST penalties trigger statutory disposal powers.
Case-Laws
GST
Section 129(6) of the GST Acts requires detained goods to be sold or otherwise disposed of to recover an unpaid penalty after the prescribed period. Its proviso permits a shorter period where goods are perishable, hazardous or likely to depreciate. Inflammable bulk bitumen qualifies as hazardous goods, so the continuing availability of an appeal does not displace the obligation to initiate disposal where risk to the goods and conveyance warrants prompt action. Sale should proceed through public notice, with notice to the owner, within the stipulated timeframe.
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Tariff classification of medicated toilet soap places it under the residual GST entry rather than the concessional toilet-soap entry.
Case-Laws
GST
Medicated Toilet Soap is classified under tariff item 34011110, separate from other toilet soaps classified under tariff item 34011190. The revised GST notification adopts the Customs Tariff nomenclature and interpretative rules. The concessional Schedule I entry for toilet soap applies only to products under tariff item 34011190 and does not extend to Medicated Toilet Soap. Medicated Toilet Soap therefore falls under the residual Schedule II entry and attracts GST at 18% (9% CGST and 9% SGST).
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GST appeal delay condonation restored merits adjudication where factual challenge to tax levy required a hearing.
Case-Laws
GST
Condonation of delay beyond the ordinarily condonable period for a GST appeal was considered appropriate where rectification proceedings were not the sole explanation and the tax levy was disputed on factual grounds requiring adjudication on merits. The delay dismissal was set aside, the appeal was restored, and merits were left open for decision after an opportunity of hearing. The approach accords with treatment of a similar factual situation involving delayed GST appellate proceedings.
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SC sets aside show cause notice to Tata Steel over input tax credit availed during FY19-23
GST
Dated:- 26-8-2026
PTI
New Delhi, Aug 26 (PTI) The Supreme Court has set aside a show cause-cum-demand notice against Tata Steel from tax authorities over an “alleged irregular availment of input tax credit” amounting to over Rs 1,000 crore between the financial years 2019 and 2023.

According to the notice, the steel major was required to show cause before the Additional/Joint Commissioner of Central GST & Central Excise, Jamshedpur, Jharkhand within 30 days “as to why the Goods and Service Tax (GST), amounting to Rs 1007,54,83,342 for the period FY2018-19 through FY2022-23 shall not be demanded and recovered” from the company.

Th

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of suppression of facts, merely to avail the extended period of limitation would barely suffice and puts to peril the notice under Section 74,” the bench said.

Tata Steel had contended before the top court that there is no allegation of fraud, willful misstatement or suppression of facts.

The dispute arose from a show cause notice issued to Tata Steel for the financial years 2018-19, 2019-20 and 2020-21 concerning an alleged mismatch of Input Tax Credit (ITC) and short payment of tax.

The notice was issued under Section 74 of the Central Goods and Services Tax Act, which deals with GST demand involving fraud or suppression.

The steel major submitted that the notice contained no factual allegations establishing fraud, wilful mis

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GST demand limitation bars late notices unless extended recovery is supported by foundational fraud or suppression facts.
Case-Laws
GST
GST demand limitation under Section 73 runs from the due date for the annual return; extensions of those due dates change its commencement, and pandemic-period exclusion must be applied when calculating the three-year period. A notice issued after the resulting deadline cannot be sustained under the ordinary limitation. Recourse to Section 74's five-year period requires the Assessing Officer's satisfaction, based on disclosed foundational facts, that fraud, wilful misstatement or suppression caused the tax shortfall or excess input tax credit. Audit objections and bare statutory assertions are insufficient. The show-cause notice and consequential order were set aside, with liberty for fresh Section 74 proceedings within the applicable extended limitation.
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Bail in fraudulent input tax credit allegations granted where investigation was nearly complete and further custody unnecessary.
Case-Laws
GST
Bail was granted to an accused alleged to have operated a firm used for fraudulent availment of input tax credit, although the firm was registered in his spouse's name. The High Court treated the investigation concerning the accused as almost complete and considered that certain co-accused had already received bail. Balancing the detention period against the nature and gravity of the allegations, it found that further custodial detention was unnecessary for the investigation. Release was subject to a bond and surety, monthly appearance before the Investigating Officer, and compliance until submission of the charge-sheet.
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Fair hearing in budgetary support claims requires an opportunity to explain input tax credit declaration discrepancies before determination.
Case-Laws
GST
Fair hearing in budgetary support claims requires the claimant to receive an opportunity to explain discrepancies between an input tax credit declaration and a Chartered Accountant certificate submitted at the respondents' direction. Where the declaration contains an asserted error, the officer must call for an explanation and consider supporting material before concluding the claim on merits. A claim cannot be finally determined merely by relying on the discrepant declaration without this opportunity. The challenged order was set aside to that extent, with directions to permit supporting documents and reconsider the claim after a reasonable hearing.
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Input tax credit time limits: Section 16(5) preserves entitlement where the relevant return was filed before the cut-off.
Case-Laws
GST
Section 16(5) of the Central Goods and Services Tax Act overrides section 16(4) and preserves input tax credit entitlement for specified financial years where the return under section 39 was filed by 30 November 2021. For Financial Year 2018-19, a return filed on 23 October 2019 fell within the preserved period. Denial of the related input tax credit was therefore impermissible, and the Order-in-Original denying the claim was set aside and quashed.
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Assignment of long-term leasehold rights transfers benefits of immovable property and falls outside taxable GST supply.
Case-Laws
GST
Assignment by sale or transfer of long-term leasehold rights in land and building to a third-party assignee constitutes transfer of benefits arising from immovable property. The assignee replaces the original allottee as lessee. Such assignment falls outside taxable supply under section 7(1)(a), clause 5(b) of Schedule II and clause 5 of Schedule III of the GST law, and is therefore not liable to GST. On this basis, the GST order concerning the assignment was quashed and the writ petition was allowed.
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Mandatory e-way bill generation before movement makes subsequent production ineffective against tax-evasion penalties for intercepted taxable goods.
Case-Laws
GST
Rule 138(1) requires prescribed information to be furnished and an e-way bill generated before taxable goods begin moving. Transport without an e-way bill at interception was treated as establishing intent to evade tax, because later online generation could not cure the failure of statutory monitoring or prevent potential account manipulation. A manually issued invoice was not regarded as an equivalent safeguard. The appellate authority's contrary reliance on precedent was distinguished, and the original tax and penalty order under the detention provisions was restored.
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E-way bill delay without evidence of tax evasion remains a procedural lapse, requiring penalty to be set aside.
Case-Laws
GST
Transportation of motorcycles without an e-way bill at interception was treated as a procedural lapse where the e-way bill was generated shortly thereafter and the transaction was fully traceable through invoices, challans, accounts, bank records, and vehicle identification details. No discrepancy in quantity, value or classification, nor evidence of suppression, undervaluation, fake documents, unaccounted goods or intent to evade tax, was identified. The penalty was therefore set aside, and the deposited amount was refundable in accordance with law, subject to verification and statutory requirements.
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Assignment of long-term leasehold rights transfers immovable-property benefits and remains outside GST supply for third-party assignees.
Case-Laws
GST
Assignment of long-term leasehold rights in land and building to a third-party assignee transfers benefits arising from immovable property. Where the assignee replaces the original allottee as lessee, the transaction falls outside the scope of supply and is not liable to GST. Applying the binding ruling on comparable assignments, upheld by dismissal of the SLP, the High Court quashed the show cause notice and assessment order levying GST and allowed the writ petition.
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Psyllium seed classification treats dried Isabgol as taxable rather than exempt fresh or chilled plant material
Case-Laws
GST
Psyllium seeds (Isabgol) supplied in natural, raw and unprocessed form after procurement through APMC auctions are classified under Customs Tariff sub-heading 1211 90 13. The seeds are treated as dried rather than “fresh” or “chilled” plants or plant parts and therefore do not qualify for exemption under the relevant entry for fresh or chilled goods under HSN 1211. The stated conclusion treats the supply as taxable at 5%, notwithstanding a conflicting reference to exemption for goods of seed quality.
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GST/TDS non-deposit must follow the statutory GST framework; later substantive penal provisions cannot apply retrospectively to earlier defaults.
Case-Laws
GST
GST/TDS non-deposit arising from payments for Gram Sabha works falls primarily within the U.P. Goods and Services Tax Act, 2017, which provides a complete mechanism for determination of default, interest, penalty, prosecution and compounding. General penal provisions cannot be invoked unless allegations independently establish a distinct offence, such as dishonest misappropriation, forgery, cheating or wrongful gain. Substantive penal law applies prospectively: a penal provision introduced after the alleged 2017-18 default cannot create or alter the applicable offence. Proceedings based solely on Section 316(5) BNS were therefore unsustainable, while action under the GST Act remained available.
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Extended GST limitation requires specific fraud or suppression allegations in the show-cause notice; bare assertions invalidate proceedings.
Case-Laws
GST
Extended limitation under Section 74 of the CGST Act for fraud, wilful misstatement or suppression of facts requires the show-cause notice itself to disclose specific allegations and the factual basis supporting that inference. A bare reference to “fraud or concealment of facts” does not establish a valid basis for invoking the extended period, and deficiencies in the notice cannot be cured through a counter affidavit. Where the ordinary limitation period has expired, including applicable exclusion of time, an unsupported invocation of extended limitation renders the notice unsustainable. Further proceedings based on such a notice cannot continue.
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