Author: admin_gst

Two Appeals Allowed Under Section 107 CGST Act with Specified Pre-Deposit Conditions and Extended Filing Deadline
Case-Laws
GST
HC determined that the petitioner may file two appeals challenging orders dated 28th January 2025 and 1st February 2025 under Section 107 of CGST Act, 2017. Pre-deposit shall be made only for the total amount of Rs. 81,41,737/- from the Order-in-Original dated 28th January 2025, comprising Rs. 64,31,703/- and Rs. 17,10,034/-. No additional pre-deposit is requir

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Tax Credit Denied: Dealer Fails to Prove Transaction Validity Under Section 74 GST Regulations
Case-Laws
GST
HC dismissed the writ petition challenging the assessment order under Section 74 of GST enactments. The court upheld the denial of Input Tax Credit due to the provisional nature of the credit and the supplier's failure to remit taxes to the government. The burden of proving the transaction's genuineness rests with the purchasing dealer. The court found no merit in the petitioner'

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LNG Pipeline Construction Denied Input Tax Credit Due to Infrastructure Classification Under CGST Section 17
Case-Laws
GST
The AAR ruled that the Tie-in pipeline, which transfers re-gasified LNG from FSRU to the National Grid, does not qualify as “plant and machinery” under Section 17 of the CGST Act. Despite using various technical systems and devices, the pipeline remains a structure laid outside factory premises. Consequently, the applicant is precluded from claiming Input Tax Credit

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Municipal Services Deemed Labour, Not Core Constitutional Functions, Disqualifying Tax Exemption Under Notification 12/2017
Case-Laws
GST
The AAR determined that the applicant's services to municipal councils, including property survey, numbering, measurement, and data digitalization, constitute pure labour services not directly related to constitutional functions under Articles 243G or 243W. While facilitating property tax assessment is essential for municipal operations, these specifi

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GST Registration Cancellation Order Invalidated Due to Procedural Lapses in Notice and Hearing Principles
Case-Laws
GST
HC ruled that GST registration cancellation order violated principles of natural justice by: (1) issuing show cause notice for one ground but cancelling registration on an undisclosed separate ground, (2) failing to provide petitioner opportunity of being heard, and (3) passing quasi-judicial order without applying mind to constitutional protections under Articles 14 a

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Infrastructure Service Payments: Interest in Deferred Installments Now Taxable Under GST Section 15(2)(d)
Case-Laws
GST
AAR held that interest receivable on deferred payment in Equated Yearly Installment under Annuity Model is subject to GST. Pursuant to Section 15(2)(d) of CGST Act, the interest component shall be includible in taxable value. The classification and GST rate for such interest shall mirror the original taxable supply of road construction and maintenance services. The rul

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Diagnostic Medical Equipment Classified Differently: Infantometer at 12% GST, Stadiometer at 18% Based on Specific Design and Use
Case-Laws
GST
AAR ruled on classification of diagnostic medical equipment. For infantometer, the authority determined it qualifies as a diagnostic medical instrument under Heading 9018, primarily used by pediatricians to measure infant length and assess growth/malnutrition, thus attracting 12% GST. Conversely, stadiometer was classified under Heading 9017 as

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Maharashtra State Electricity Transmission Company Limited Wins GST Exemption for Penalty Recoveries and Financial Adjustments Under Rule 2(102)
Case-Laws
GST
AAR held that various financial transactions by MSETCL, including liquidated damages, forfeiture of security deposits, penalty recoveries, and write-back of unclaimed balances, do not constitute taxable supply under GST. The recoveries are primarily punitive measures to discourage non-serious contractors or accounting adjustments

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Specialized Fruit Protection Bags Classified as Sacks Under Tariff Heading 48194000 with Unique Protective Coating Properties
Case-Laws
GST
AAR ruled that fruit protection bags manufactured from coated kraft paper with specialized protective properties are classifiable under Tariff Heading 48194000 for sacks and bags, not under Tariff Heading 4805. The bags, sealed on three sides and designed to fully enclose fruits, possess characteristics beyond standard paper products. The chemical c

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Testing and Commissioning of Rail Tracks Classified as Pure Construction Service Under GST, Taxed at 18% Rate
Case-Laws
GST
AAR determined that the testing and commissioning service for rail tracks does not qualify as a composite works contract under Sl. No. 3(vi)(a) of Notification 11/2017-Central Tax (Rate). The service constitutes a pure construction service under Chapter heading 9954, classified specifically under Sr. No. 3(xii) of the notification. Consequently, the service is char

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Baby Car Seats Classified Under HSN 94018000, Distinct from Vehicle Seats and Baby Carriages, Affirming Specific Safety Classification
Case-Laws
GST
AAR held that baby car seats are correctly classified under HSN code 94018000, not under 87150010 or 87089900. The seats are specialized safety attachments for infants in motor vehicles, distinct from primary vehicle seats or baby carriages. They are additional attachments affixed to existing vehicle seats, designed specifically for safe in

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Shot Blasting Service on Customer Castings Classified as Job Work Under Section 2(68) CGST Act, Attracting 12% GST Rate
Case-Laws
GST
AAR determined that shot blasting service performed by the applicant on customer's castings within customer's premises constitutes a job work service under SAC 9988. The service meets definitional criteria of job work as per section 2(68) of CGST Act, 2017, involving processing of goods belonging to a registered person. Ownership of goods remains unchange

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Legal Battle Over ITC Time Limits: Section 16(4) Bars Delayed Credit Claims for Import Taxes Beyond Specified Timeframe
Case-Laws
GST
AAR held that Section 16(4) of CGST Act, 2017 imposes a time limitation on Input Tax Credit (ITC) availment, which applies uniformly to all ITC types, including IGST paid on imports. The ruling emphasizes that the term 'invoice' encompasses documents evidencing tax payment like Bill of Entry. Consequently, the applicant is precluded from claiming IGST pai

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Arunachal DyCM calls for GST drive to boost compliance, revenue
GST
Dated:- 12-6-2025
PTI
Itanagar, Jun 12 (PTI) Arunachal Pradesh Deputy Chief Minister Chowna Mein on Thursday directed the Tax, Excise & Narcotics department to step up efforts in bringing all eligible businesses, particularly hotels, restaurants, and resorts, within the GST threshold under mandatory registration.
Chairing a departmental review meeting here, Mein, who also heads the department, emphasised the need for awareness campaigns and outreach programmes in collaboration with Arunachal Chamber of Commerce & Industries (ACCI) to educate stakeholders about the benefits and necessity of GST compliance.
The meeting reviewed the state's GST collection perform

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the current financial year, marking an increase of nearly 151 per cent.
GST collections also saw significant growth from Rs 227.94 crore in 2017-18 to Rs 1,825.87 crore in 2024-25, reflecting improved compliance and an expanded tax base, officials said.
In the excise sector, the department collected Rs 299.36 crore in 2024-25, marking a 46.62 per cent increase over the previous fiscal, they added.
To further assist taxpayers, the department has operationalised 16 GST seva kendras (GSKs) at key locations. These centres are equipped with biometric verification systems for Aadhaar-based authentication and physical premise checks to prevent fraudulent registrations.
Mein reiterated the state government's commitment to modernising tax admini

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Advisory on filing of Amnesty applications under Section 128A of the CGST Ac
GST
Dated:- 12-6-2025

1. As on 08.06.2025, a total of 3,02,658 waiver applications have been filed through SPL-01/ 02. However, it has come to notice that certain taxpayers are facing difficulties in filing amnesty applications under Section 128A on the GST portal. In view of the approaching last date for submission, various trade bodies have submitted representations requesting an alternate

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CBI apprehends Superintendent, CGST, Amroha and a Tax Advocate while accepting illegal gratification of Rs. One Lakh
GST
Dated:- 12-6-2025

The Central Bureau of Investigation (CBI) has apprehended two accused including Superintendent of CGST, Amroha and a Tax Advocate while accepting illegal gratification of Rs. 1,00,000/- (as the 1st installment of demanded undue advantage of Rs. 4 Lakh) from the complainant.
A case was registered by CBI on 09.06.2025 on the basis of a complaint against the two said accused. The Complainant controls the business affairs of his family concern private company. The allegation in the complaint was that the accused Superintendent had issued penalty notice to the complainant's family concern privat

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Tax Assessment Order Quashed: Deputy Commissioner Must Provide Fair Hearing and Reasoned Decision Under Section 75(3)
Case-Laws
GST
HC quashed the original tax assessment order and directed the Deputy Commissioner to provide a hearing and issue a reasoned order considering the taxpayer's reply. The court held that the show cause notice remained valid and proceedings could continue beyond three months. The statutory provision under Section 75(3) allows issuance of remand orders within tw

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GST Registration Cancellation Overturned: Taxpayers Granted Opportunity to Rectify Statutory Return Non-Compliance and Revive Registration
Case-Laws
GST
HC allowed the petition challenging GST registration cancellation, following precedent in Tvl. Suguna Cutpiece Center's case. The court held that petitioners must be provided an opportunity to rectify statutory return non-compliance and revive their GST registration, thereby preventing automatic cancellation. This approach aims to balan

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Ex Parte Order Under GST Act Section 107 Overturned Due to Procedural Flaws and Insufficient Reasoning
Case-Laws
GST
HC set aside the ex parte order passed under Section 107 of GST Act, finding procedural irregularities despite multiple hearing opportunities being provided to the petitioner. Although the petitioner's non-appearance through tax consultant was not fully justified, the appellate authority's order lacked substantive reasoning and did not comply with statutory requirements.

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Unique Reference Number (RFN) Now Validates GST Portal Communications, Eliminating Need for Additional Document Identification Numbers
Circulars
GST
CBIC clarified that for communications generated through the common GST portal with a verifiable Reference Number (RFN), quoting of Document Identification Number (DIN) is unnecessary. The circular modifies previous guidelines by recognizing RFN as a valid unique identifier for electronic communications. This decision aims to streamline adm

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CBI arrests Superintendent, CGST, Amroha and a Tax Advocate in a bribery case; Recovers Rs 3 lakh cash and property papers etc. from the residence of accused public servant
GST
Dated:- 11-6-2025

The Central Bureau of Investigation (CBI) today i.e. 10.06.2025 arrested two accused including Superintendent of CGST, Amroha and a Tax Advocatein an on-going investigation into a bribery case.
A case was registered by CBI on 09.06.2025 on the basis of a complaint against the two said accused. The Complainant controls the business affairs of his family concern private company. The allegation in the complaint was that the accused Superintendent had issued penalty notice to the complainant's family concern private company on account of n

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Tax Liabilities Resolved: Petitioner Allowed to Settle Outstanding Dues Under GST Circular No. 238/32/2024 with Full Waiver Consideration
Case-Laws
GST
HC ruled that the petitioner may discharge outstanding tax liabilities pursuant to Circular No. 238/32/2024 GST dated 15th October, 2024. The court directed the tax authority to accept all dues, including taxes, interest, penalties, and charges as per the demand notice. Since the petitioner failed to deposit taxes during the Covid-19 per

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Procedural Violations Invalidate Notice: Natural Justice Principles Require Fair Hearing and Opportunity to Respond
Case-Laws
GST
HC held that the impugned notifications and show cause notice (SCN) were procedurally defective due to violation of natural justice principles. Citing precedent in a similar case involving Neelgiri Machinery, the court determined that the petitioner was not provided adequate opportunity for personal hearing. Despite portal modifications after 16th January 202

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Writ Petition Succeeds: BPCL Machines Released After Court Finds No Tax Evasion in Stock Transfer Proceedings
Case-Laws
GST
HC allowed the writ petition challenging detention and confiscation of 4 MPD machines intended for stock transfer between BPCL locations. The court found no tax evasion, noting e-way bill was generated prior to detention order and goods were not for trade. Relying on precedent cases, the court quashed the detention orders dated 10.7.2023 and 29.1.2021, determining

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Procedural Fairness Prevails: SCN Communication Defect Nullifies Proceedings, Mandates Fresh Review Under Natural Justice Principles
Case-Laws
GST
HC held that the SCN issued on 29th September 2023 was not properly brought to the petitioner's notice, violating principles of natural justice. Given the lack of opportunity to be heard and no reply filed, the court remanded the matter back to the concerned Adjudicating Authority. The decision requires the department to ensure proper communi

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