Author: admin_gst

Tax Recovery Halted: Statutory Timelines Violated, Premature Action Rejected, Full Refund and Interest Ordered Under CGST Act Sections 78 and 79
Case-Laws
GST
HC held that the recovery of tax dues from the petitioner was premature and in violation of statutory provisions under Sections 78 and 79 of CGST/BGST Act, 2017. The Recovery Officer was mandated to wait three months from the date of service order before initiating recovery proceedings. The impugned orders rejecting Input Tax Credit claims were set aside due to retrospective amendment under Section 16(5). Respondent authorities were directed to refund the recovered amount of Rs.50,75,214/- within two weeks, with 12% per annum interest in case of default. The second appeal could not be preferred as the Tribunal was not constituted, effectively suspending the appeal timeline.
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CBI arrests an Inspector of Central Goods & Service Tax (CGST), Regional GST Office, Prayagraj (UP) for demanding and accepting bribe amount of Rs. 10,000/- from the complainant
GST
Dated:- 6-5-2025

Central Bureau of Investigation (CBI) has arrested an accused Inspector of Central Goods & Service Tax (CGST), Regional GST Office, Prayagraj (UP) for demanding and accepting bribe amount of Rs. 10,000/- from the complainant.
A case was registered by CBI on 03.05.2025 against two accuse

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CBIC Introduces Streamlined GST Registration Grievance Resolution Process with Clear Communication Protocols
Circulars
GST
The CBIC issued Instruction No. 04/2025-GST establishing a comprehensive grievance redressal mechanism for GST registration applications. The mechanism mandates Zonal Principal Chief Commissioners/Chief Commissioners to: (1) publicize dedicated email addresses for applicants to submit grievances, (2) forward state jurisdiction grievances to relevant authorities, (3) ensure timely resolution of complaints, and (4) submit monthly reports to DGGST. Applicants can submit grievances with Application Reference Number (ARN), jurisdiction details, and brief issue description, enabling a structured approach to addressing registration application concerns and providing transparent communication channels between taxpayers and tax administration.
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Small-scale industrialists from Marathwada demand competitive power tariff, GST tribunal
GST
Dated:- 5-5-2025
PTI
Chhatrapati Sambhajinagar, May 5 (PTI) Small-scale industrialists from Marathwada demanded competitive electricity rates for industries in Maharashtra and a GST tribunal in Chhatrapati Sambhajinagar during their interaction with Deputy Chief Minister Ajit Pawar.
A Marathwada Association for Small-Scale Industries and Agriculture (MASSIA) delegation, led by its president

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Tax Demand Order Nullified: Procedural Flaws and Official Misconduct Expose Critical Violations in Seizure Process
Case-Laws
GST
HC invalidated tax demand order due to procedural irregularities in inspection and seizure. The court found the seizure order was improperly prepared without independent witnesses, and documents were admittedly tampered by a tax official. The court set aside the demand order dated 09.05.2024, admonished the Deputy Commissioner against future document manipulation, and warned of potential disciplinary action. The writ petition was allowed, rendering the original tax assessment null and void based on violations of BGST/CGST Act, 2017 and CrPC procedural requirements.
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Tax Evasion Challenge Rejected: Delayed Response and Procedural Lapses Undermine Writ Petition Against GST Proceedings
Case-Laws
GST
HC dismissed the writ petition challenging tax proceedings related to GST evasion and bogus invoices. The court found the petitioners were not diligent, having delayed their response to the show cause notice for six months and only raising objections when personal hearing was imminent. The HC held this was not a fit case for extraordinary writ jurisdiction under Article 226, directing petitioners to pursue appellate remedies. The court granted a 30-day window to file an appeal with pre-deposit, ensuring merit-based consideration without limitation bar, while explicitly noting that the order's observations would not prejudice the appellate proceedings.
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Tax Assessment Order Invalidated: Procedural Delays Breach Statutory Timelines and Compromise Fairness of Judicial Process
Case-Laws
GST
HC invalidated an ex parte service tax assessment order due to procedural irregularities. The court found that the order-in-original was passed five years after the show cause notice, significantly exceeding the prescribed statutory time limits under Section 73(4B) of the Finance Act. Despite Section 73(4B) not mandating a strict time frame, the court held that prolonged delays without substantive justification render the assessment and accompanying penalties void. The petitioner's challenge was upheld, with the impugned order set aside, emphasizing the importance of adhering to reasonable adjudication timelines in tax proceedings.
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Legal Heir Wins Challenge to GST Tax Liability Order After Procedural Fairness Violation Under Natural Justice Principles
Case-Laws
GST
HC allowed the writ petition, setting aside the impugned GST tax liability order against the legal heir. The court emphasized principles of natural justice, requiring issuance of a fresh notice and providing an opportunity for personal hearing to the successor proprietor. The decision aligns with precedent established in a prior Division Bench ruling involving similar circumstances of tax proceedings against legal heirs of a proprietorship firm, ensuring procedural fairness in tax assessment processes.
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Interim Relief Granted: GST Tariff Dispute Halts Recovery Proceedings with Directives for Procedural Review
Case-Laws
GST
HC order grants interim relief in tax classification dispute. Petitioner challenged GST reclassification from 12% to 18% tariff item, alleging procedural impropriety and violation of natural justice. Court found merit in submissions regarding jurisdictional concerns and arbitrary order issuance. Interim order stayed recovery proceedings, directing respondents to file counter-affidavit within four weeks. Based on CBIC circular and similar precedent from Karnataka HC, court provided temporary relief pending comprehensive review of tax classification and procedural compliance.
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High Court Validates Arbitral Award, Confirms Arbitrator's Reasoning and Upholds Section 34 Principles of Arbitration Act
Case-Laws
GST
HC upheld the arbitral award, finding no grounds for interference under Section 34 of the Arbitration and Conciliation Act, 1996. The court determined that the arbitrator's reasoning was legally sound and based on available evidence. The award did not demonstrate patent illegality or violation of public policy. The court emphasized its limited review role, noting it cannot re-appreciate evidence or modify the arbitral award. Consequently, the petition challenging the arbitral award was dismissed, affirming the arbitrator's decision on contractual terms and GST liabilities.
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Judicial Resolution Enables Export Tax Refund Despite Minor GST Number Discrepancy in Shipping Bill Documentation
Case-Laws
GST
HC adjudicated a dispute concerning IGST refund involving an inadvertent GST number error in a Shipping Bill. The court found that despite the initial mismatch in exporter details, documentary evidence supported the petitioner's claim. The HC directed respondent No. 2 to amend the Shipping Bill in the EDI system and respondent No. 3 to make corresponding modifications in the GST portal to facilitate the refund of Rs. 12,26,862/- within twelve weeks. The procedural discrepancy was resolved through judicial intervention, enabling the petitioner to claim the rightful export-related tax refund.
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Procedural Defect Leads to Invalidation of Tax Assessment Order, Mandating Proper Signature and Identification Number
Case-Laws
GST
HC invalidated the assessment order due to absence of assessing officer's signature and DIN number. Following precedential decisions in prior cases involving similar procedural defects, the court set aside the impugned order in Form GST DRC-07 and notice in Form GST DRC-16. The 1st respondent was granted liberty to conduct a fresh assessment, with mandatory requirement to issue a properly signed order containing a DIN number and providing prior notice to the petitioner.
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Faceless GST system needed; Rs 80,000 cr GST dues must be resolved: Delhi CM Rekha Gupta
GST
Dated:- 3-5-2025
PTI
New Delhi, May 3 (PTI) Delhi Chief Minister Rekha Gupta on Saturday stressed on making the Goods and Services Tax (GST) system “faceless” and transparent, while highlighting that Rs 80,000 crore of GST dues of the Delhi government are pending due to disputes and other reasons.
Addressing the third Accounting Standard Day organised by the Institute of Chartered Accountants of India (ICAI), Gupta said she had instructed GST officers not to summon businessmen to their offices if they are already appearing in court.
“Make our system faceless. Tax should be collected in a hassle-free manner,” she said.
She praised the

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Advisory for Biometric-Based Aadhaar Authentication and Document Verification for GST Registration Applicants of Sikkim
GST
Dated:- 3-5-2025

Dear Taxpayers,
This is to inform taxpayers about recent developments concerning the application process for GST registration. It is advised to keep the following key points in mind during the registration process.
1.  Rule 8 of the CGST Rules, 2017 has been amended to provide that an applicant can be identified on the common portal, based on data analysis and risk parameters for Biometric-based Aadhaar Authentication and taking a photograph of the applicant along with the verification of the original copy of the documents uploaded with the application.
2.  The above-said func

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mentioned in point 3(a), she/he can proceed with the application as per the existing process.
5.    However, if the applicant receives the link as mentioned in point 3(b), she/he will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail.
6.    The feature of booking an appointment to visit a designated GSK is being enabled for the applicants of Sikkim and the applicants can book slots from 1st May, 2025..
7.    After booking the appointment, the applicant gets the confirmation of appointment through e-mail (the appointment confirmation e-mail), she/he will be able to visit the designated GSK as per the chosen schedule.
8.    At the time of the

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Legal Notice Invalidated Due to Procedural Flaws: Insufficient Hearing Breaches Natural Justice Principles Under Finance Act and CGST Act
Case-Laws
GST
HC finds SCN under Finance Act, 1994 and CGST Act, 2017 procedurally defective. The 2nd respondent failed to provide adequate hearing and did not properly consider the petitioner's submissions, violating principles of natural justice. Consequently, the impugned order dated 21.03.2022 was set aside and the matter remanded for fresh consideration, ensuring the petitioner receives fair opportunity to present arguments. The court's intervention rectifies procedural irregularities without adjudicating the substantive merits of the original dispute, thereby upholding fundamental principles of administrative justice.
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Procedural Defect Nullifies Order: Natural Justice Violated by Improper Notice Service, Hearing Rights Upheld
Case-Laws
GST
HC found violation of natural justice principles due to improper service of Show Cause Notice (SCN) uploaded on 'Additional Notices Tab' without Petitioner's knowledge. Following precedent in similar case, Court set aside the impugned order and remanded matter for fresh adjudication. Department directed to provide personal hearing, consider Petitioner's submissions and reply, and pass a reasoned order on merits after ensuring proper procedural compliance.
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Directors' Tax Liability Limited: CGST Act Section 88(3) Restricts Recovery Mechanisms for Liquidated Companies
Case-Laws
GST
HC adjudicated directors' liability in a liquidated company under CGST Act, holding that Section 88(3) permits recovery of tax, penalty, and interest only when determined under CGST Act. Section 174(2)(e) preserves recovery mechanisms under prior Act, 1944, mandating separate legal proceedings. The court allowed the writ petitions, setting aside impugned notices while permitting respondents to pursue alternative recovery remedies consistent with the Act, 1944's legal framework, thus restricting directors' liability to CGST Act-assessed dues and maintaining distinct procedural pathways for tax recovery.
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Directors Face Strict Liability for GST Violations Under Sections 107 and 122(1A), Requiring Detailed Scrutiny of Individual Roles
Case-Laws
GST
HC determined directors' liability for GST non-compliance, finding Section 107 and 122(1A) of CGST Act applicable. The Court held that directors must be held responsible for fraudulent ITC availing and non-filing of returns, with the caveat that specific individual responsibilities require detailed factual scrutiny. The HC directed the Department to communicate appellate remedies within two weeks, mandating that any appeal filed within 30 days shall be adjudicated on merits without limitation bar. The core issue involves determining which directors retained transactional benefits and their precise organizational roles in potential tax irregularities.
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Ex-parte Order Quashed: Natural Justice Principles Upheld, Petitioner Granted Fair Hearing and Right to Respond
Case-Laws
GST
HC set aside ex-parte order against petitioner due to violation of natural justice principles. The court found that no opportunity for personal hearing was provided before issuing demand with interest and penalty. The impugned order was quashed, directing the adjudicating authority to consider petitioner's reply to show cause notice and submissions during personal hearing, and pass a fresh order. The challenge to underlying notifications was also held subject to ongoing Supreme Court proceedings in a related matter, ensuring procedural fairness and preserving petitioner's right to be heard.
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Procedural Fairness Prevails: SCN Upload Without Notice Invalidates Order, Mandates Fresh Hearing and Reasoned Decision
Case-Laws
GST
HC found violation of natural justice due to improper service of show cause notice (SCN) uploaded on 'Additional Notices Tab' without Petitioner's knowledge. Following precedent in similar case, HC set aside the impugned order and remanded matter for fresh consideration. Department mandated to provide personal hearing, consider Petitioner's reply, and pass a reasoned order on merits. Petition disposed of with directions for de novo proceedings ensuring procedural fairness.
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Natural Justice Prevails: Procedural Defect Nullifies Order, Mandates Proper Notice and Fair Hearing Under Principles of Natural Justice
Case-Laws
GST
HC found violation of natural justice where SCN was uploaded on 'Additional Notices Tab' without petitioner's knowledge. Following precedent in similar case, HC set aside the impugned order and remanded matter for fresh adjudication. Department mandated to provide personal hearing, consider petitioner's submissions, and pass a reasoned order on merits after giving proper opportunity to respond. Petition disposed of with directions for de novo proceedings ensuring procedural fairness.
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Pending Supreme Court Decision Halts Tax Notification Challenge, Mandates Fair Hearing for Petitioner
Case-Laws
GST
HC held that the challenge to Notifications No. 9/2023-Central Tax and No. 56/2023-Central Tax shall be subject to the Supreme Court's pending decision in M/s HCCSEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors. The Court directed the Adjudicating Authority to provide a personal hearing to the Petitioner, consider the previously filed reply to the Show Cause Notice, and issue a fresh reasoned order. The writ petition was disposed of, mandating procedural fairness and an opportunity to be heard in compliance with principles of natural justice.
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Judicial Intervention Halts Tax Proceeding: Violation of Natural Justice Leads to Order Reversal and Remand for Fair Hearing
Case-Laws
GST
HC set aside the impugned order N/N. 56/2023-Central Tax due to violation of principles of natural justice. SCN uploaded on 'Additional Notices Tab' without actual knowledge of the Petitioner, resulting in ex parte adjudication without personal hearing. Following precedent in similar case, HC remanded matter for fresh consideration, directing department to provide proper notice, conduct personal hearing, and pass reasoned order after considering Petitioner's submissions on merits.
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Pending Supreme Court Decision Governs GST Tax Notification Challenge, Personal Hearing Mandated for Fair Adjudication
Case-Laws
GST
HC ruled that the challenge to GST tax notifications shall be subject to the Supreme Court's pending decision in M/s HCCSEW-MEIL-AAG JV v. Assistant Commissioner of State Tax & Ors. The court found the prior adjudication order cryptic and unreasoned, directing the adjudicating authority to provide personal hearing to the petitioner, consider the petitioner's reply to show cause notice, and issue a fresh reasoned order. The writ petition was disposed of, with the final outcome contingent upon the Supreme Court's forthcoming ruling on the challenged notifications.
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High Court Suspends GST Tax Credit Reversal Order, Awaits Supreme Court Guidance on Notification Validity
Case-Laws
GST
HC ruled that the challenge to GST notifications and retrospective registration cancellation will be subject to SC's pending decision in M/s HCC-SEW-MEIL-AAG JV v. Assistant Commissioner of State Tax. The impugned order demanding Rs. 4,34,04,126/- for Input Tax Credit reversal was set aside. The matter was remanded to the adjudicating authority for fresh hearing, with portal access granted to the petitioner for filing replies and accessing hearing notices. The petition was disposed of, contingent on the Supreme Court's ultimate determination of the notifications' validity.
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