Author: admin_gst

Penalty upheld under Section 129(1)(b) GST for transit without e-way bill; modified to Section 129(1)(a) due to documents present
Case-Laws
GST
The HC upheld the levy of penalty under Section 129(1)(b) of the GST Act for transit of goods without an e-way bill, finding no evidence of technical error or inadvertence, as no e-way bill was generated prior to movement. The presence of a tax invoice with the goods established the petitioner as the owner, and the temporary suspension of the pu

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Criminal Proceedings for Unpaid Sale Consideration Don't Amount to Criminal Breach of Trust Under Section 406 IPC
Case-Laws
GST
The SC held that criminal proceedings initiated by the complainant for recovery of unpaid sale consideration do not constitute criminal breach of trust under Section 406 IPC, as mere sale transactions do not amount to entrustment of goods. The Court criticized the High Court for permitting criminal proceedings in a pure civil dispute, emphasizing that such reso

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Cancellation of GST Registration Set Aside for Non-Compliance with Rule 22(4) of CGST Rules, 2017
Case-Laws
GST
The HC set aside the cancellation of the petitioner's GST registration under Section 29(2)(c) of the CGST Act due to non-assignment of reasons and violation of natural justice. The court held that cancellation for non-filing of returns over six months must comply with the procedural safeguards under Rule 22(4) of the CGST Rules, 2017. Since the petitioner expressed willingness

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Approved resolution plans bar GST department from raising new tax demands under Section 73 CGST Act
Case-Laws
GST
The HC held that once a resolution plan is approved by the NCLT, the GST department is precluded from raising additional tax demands, as this would undermine the resolution process. Consequently, the assessment order dated December 29, 2023, issued under Section 73 of the CGST/UPGST Act, 2017 for the 2017-18 tax period, was quashed. The petition was allowed, affirming that p

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Bail Granted in GST Evasion Case Under Section 132, Subject to Cooperation and Personal Bond Conditions
Case-Laws
GST
The HC granted bail to the applicant accused of GST evasion by claiming false input tax credit, an offence punishable with imprisonment up to five years and compoundable. The applicant provided an undertaking to cooperate with the investigation and expressed willingness to pay the compounding fee, including GST liability and penalty. Considering the applicant's lack of p

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Detention and penalty order quashed due to expired e-way bill; valid new e-way bill presented before seizure order
Case-Laws
GST
The HC quashed the detention and penalty order concerning the seized goods due to the expiration of the initial e-way bill. The petitioner had generated and presented a subsequent valid e-way bill prior to the issuance of the seizure and penalty order. The authorities failed to consider the new e-way bill and did not establish any intent to evade tax. Conseque

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Regular Bail Granted for Forgery and GST Evasion Under Strict Statutory Bond Conditions
Case-Laws
GST
The HC granted regular bail to the petitioners accused of forgery, fraud involving signatures, and GST evasion, despite sufficient prima facie evidence against them. The court recognized that pre-trial custody should not equate to post-conviction punishment and noted the petitioners' detention since 20.03.2025. Considering the nature of the offenses and the applicable penal provisions,

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Petition dismissed; objections against property attachment must be filed within 15 days under Rule 159 of CGST Rules
Case-Laws
GST
The HC held the petition to be not maintainable due to the availability of an alternative and efficacious remedy under Rule 159 of the CGST Rules, 2017 for filing objections against property attachment under Section 83 of the CGST Act. The petitioner was directed to file objections within 15 days, failing which the petition would not be entertained. The comp

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Assessment Order Without Signature Declared Invalid Under CGST Act Sections 160 and 169, Fresh Assessment Ordered
Case-Laws
GST
The HC set aside the impugned assessment order in Form GST DRC-07 dated 23.01.2025 due to the absence of the assessing officer's signature, rendering the order invalid. Citing precedent from multiple Division Bench rulings, the Court reaffirmed that the signature on an assessment order is mandatory and cannot be cured by Sections 160 and 169 of the CGST Act, 20

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Assessment Order Set Aside for Lack of Personal Hearing and Improper Service Under GST Section 169
Case-Laws
GST
The HC set aside the impugned assessment order dated 21.01.2025 due to violation of natural justice principles, as the petitioner was not afforded a personal hearing and was unaware of the show cause notice served solely via the GST Portal. The Court held that mere portal upload does not constitute effective service when no response is received, and the assessing officer must

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Second Bail Application Dismissed Under Sections 132(1)(c) and 132(1)(i) of CGST Act Due to Non-Compliance
Case-Laws
GST
The HC dismissed the second bail application filed under sections 132(1)(c) and 132(1)(i) of the CGST Act, noting that the first bail application was not pressed after the applicant failed to comply with a prior court order to appear before the concerned court within two weeks. The court observed that the applicant remains out of custody and has flouted the consent or

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Assignment of Leasehold Rights in Industrial Plots Is Transfer of Property Benefits, Not Supply of Services Under GST Section 7(1)(a)
Case-Laws
GST
The HC held that the assignment by sale and transfer of leasehold rights of industrial plots allotted by a government agency constitutes transfer of benefits arising from immovable property and not supply of services. Consequently, Section 7(1)(a) of the Act, along with Clause 5(b) of Schedule 2 and Clause 5 of Schedule 3, does not apply, an

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GST registration cancelled for non-filing returns; restoration possible after pending dues and compliance under Rule 22(4) proviso
Case-Laws
GST
The HC upheld the cancellation of the petitioner's GST registration under Section 29(2)(c) of the CGST Act, 2017, due to non-filing of returns for six continuous months. However, relying on the proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017, the Court held that if the petitioner submits all pending returns and pays the outstanding t

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Cancellation of GST Registration Set Aside for Lack of Natural Justice and Non-Application of Mind
Case-Laws
GST
The HC rejected the respondents' contention regarding time-barred appeal and held the cancellation of GST registration invalid due to non-application of mind and violation of natural justice principles. The court found that the quasi-judicial authority failed to consider the petitioner's reply to the show cause notice, rendering the cancellation order non-speaking and legally

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Cancellation of GST Registration Under Section 29(2)(c) Valid; Restoration Allowed Under Rule 22(4) Proviso
Case-Laws
GST
The HC held that cancellation of GST registration under Section 29(2)(c) CGST Act for non-filing of returns for six continuous months is valid. However, pursuant to the proviso to sub-rule (4) of Rule 22 CGST Rules, if the petitioner is willing to furnish all pending returns and pay the outstanding tax, interest, and late fees, the empowered officer has jurisdiction

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Appeal dismissed: Central GST proceedings valid under Sections 6(2)(b), 67(1), and 73 of CGST Act
Case-Laws
GST
The HC dismissed the appeal challenging the issuance of the SCN under Section 73 of the CGST Act. It was held that the Central GST authorities had validly initiated proceedings first, including inspection under Section 67(1) and issuance of a show cause notice, thereby precluding the State GST authorities from initiating parallel proceedings on the same subject matter as per S

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Service of show cause notices only via GST portal violates Section 169, denying fair hearing and voiding ex parte orders
Case-Laws
GST
The HC found that service of show cause notices solely by uploading on the GST portal, without exploring alternate modes of service under Section 169 of the GST Act, violated principles of natural justice by denying the petitioner an effective opportunity of hearing. The impugned ex parte order dated 17.12.2024 was set aside due to inadequate service and

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Ex-parte GST penalty orders under Sections 47 and 125 set aside for lack of proper notice and hearing opportunity
Case-Laws
GST
The HC set aside the ex-parte assessment and penalty orders dated 26.12.2024 passed under the GST Act, holding that non-service of physical notices and failure to provide an opportunity of hearing violated principles of natural justice. The petitioner had been subjected to a late fee under Section 47, and the imposition of penalty under Section 125 without prop

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Advance Ruling Void for Nondisclosure Under Section 104; Appeal Dismissed for Suppression of Facts
Case-Laws
GST
The AAAR upheld the rejection of the appellant's claim regarding the classification of supply and applicable GST rate on plastic toys, as well as the entitlement to ITC on debit notes issued in 2020-21 for transactions in 2018-19. The authority found that the appellant failed to disclose all material facts as mandated under Section 104 of the CGST Act, 2017, constituting supp

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ITC Allowed on Inputs and Services for Concrete Tower Supporting Plant Machinery Under Section 17 CGST Act
Case-Laws
GST
The AAAR held that the appellant is entitled to avail ITC on inputs and input services used for constructing the concrete tower supporting and erecting VCV lines at its factory for manufacturing EHV cables. The concrete structure was deemed an essential foundation and structural support for plant and machinery, falling within the scope of the second explanation to sec

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Applicant building metro stations not a “Government Authority” under Para 2(zf) of Notification 12/2017-CT (Rate)
Case-Laws
GST
The AAR held that the applicant, a commercial entity engaged in constructing metro stations, does not qualify as a “Government Authority” under Paragraph-2(zf) of Notification No. 12/2017-CT (Rate) dated 28.06.2017, as amended. The applicant neither performs functions entrusted to a Municipality under Article 243W nor to a Panchayat under Article 243G of the Co

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GST Exemption Applies Only When Cattle Feed Is Supplied Directly for Feeding Under Notification 2/2017
Case-Laws
GST
The AAR held that the applicant's product classified under tariff heading 2302.10 as “cattle feed” qualifies for GST exemption under Notification No. 2/2017-Central Tax (Rate), S. No. 102, only when supplied for direct feeding to cattle. However, when the product is used as an ingredient to produce a new feed with enhanced nutritive value and not fed directly to animals,

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NSDC Training Partner Services Eligible for GST Exemption Under Notification No. 12/2017 Entry 69 and Section 2(31)
Case-Laws
GST
The AAR held that the applicant, as an approved NSDC training partner providing services under the Market Led Fee-based Services Scheme, is eligible for exemption under entry No. 69 of Notification No. 12/2017-Central Tax (Rate). Despite students being the ultimate service recipients, the partner universities collect and remit the consideration to the applica

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Artificial Turf Attracts 12% GST Alone, 18% GST When Supplied With Installation Under GST Rules
Case-Laws
GST
The AAR held that artificial turf/artificial grass qualifies as tufted turf under chapter 5703 and attracts GST at 12% as per entry 144 of Notification 1/2017-CT(R). When supplied with installation, it constitutes a works contract service under SAC 995428, involving transfer of property in goods and attachment to immovable property, thus treated as a composite supply of service

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Central Goods one held
GST
Dated:- 7-8-2025

The Anti-evasion Branch of the Central Goods & Services Tax (CGST) Delhi South Commissionerate has arrested a key individual for orchestrating the evasion of Goods and Services Tax (GST) of approximately Rs.16.30 crore. The arrest follows detailed analysis of GST return data.
The investigation revealed that three closely linked companies, engaged in manpower supply and facility management services, were consistently under-reporting their

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