Author: admin_gst

Regular bail in alleged input tax credit fraud granted after investigation concluded and evidence remained in departmental custody.
Case-Laws
GST
Regular bail in alleged input tax credit fraud involving fake invoices was granted after investigation was completed and the final complaint filed. The prosecution case was based on documentary and electronic material already held by the Department, so further custodial detention was not considered necessary. The period already spent in custody and the likely duration of trial also supported release. Bail was granted subject to the stipulated bond and surety conditions, without any opinion on the merits of the allegations.
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Adequate hearing before ex parte tax assessment requires fresh assessment after consequential demand and bank-account attachment are set aside.
Case-Laws
GST
Ex parte tax assessments must be preceded by adequate opportunity of hearing in accordance with principles of natural justice. The note reports that the High Court applied an earlier coordinate-bench approach to set aside an ex parte assessment, the consequential demand and bank-account attachment, and remit the matter for fresh assessment after giving the taxpayer an adequate hearing.
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Personal hearing in GST adjudication remains mandatory; inadequate notice and an unreasoned adverse order require fresh determination.
Case-Laws
GST
Effective personal hearing is mandatory before an adverse GST adjudication. Where a show-cause notice omits the hearing date, time and venue, the taxpayer must receive separate intimation, and selecting “No” for personal hearing does not remove the authority's statutory duty to provide it. The adjudicating authority must also consider available material and give reasons; non-appearance cannot validate an unreasoned order. Failure to provide hearing particulars, afford the required three hearing opportunities, and issue a reasoned decision breaches natural justice. The GST order was quashed and remanded for fresh adjudication, with the refund claim left for determination.
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Garnishee recovery requires prior adjudication, consideration of taxpayer replies, and a personal hearing before coercive recovery proceeds.
Case-Laws
GST
Garnishee recovery action carrying serious civil consequences requires prior adjudication where the taxpayer has raised disputed tax particulars and submitted replies. The material states that recovery should not proceed without considering those replies, providing a personal hearing, and issuing a reasoned order consistent with principles of natural justice. The recovery notice was kept in abeyance pending adjudication, with the authority required to hear the taxpayer and decide the matter within the stipulated period. All substantive merits remained open for determination.
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Proportionality in GST registration cancellation requires an opportunity to file pending returns and pay statutory dues before restoration.
Case-Laws
GST
Proportionality requires that GST registration cancelled solely for non-filing of returns be restored where no tax-evasion allegation exists and cancellation would hinder revenue recovery. As final tax liability can be determined only after returns are filed, the taxpayer must be given an opportunity to regularise the default by filing all pending returns and paying consequential tax, interest, fine and penalty. The cancellation was conditionally set aside, with restoration directed upon timely compliance; otherwise, the writ petition would stand automatically dismissed.
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Transitional GST credit must be examined by GST authorities, while VAT authorities cannot recover tax, interest or penalties.
Case-Laws
GST
Transitional input tax credit carried forward through Form TRAN-1 may be examined by the competent GST authority under Rules 117 and 121 of the GST Rules, 2017, rather than through a VAT assessment. A service provider was not entitled to claim VAT input tax credit because it was not engaged in the sale or purchase of goods, so disallowance of the credit in the VAT assessment was sustained. However, the VAT assessing officer lacked jurisdiction to recover tax, interest or penalty relating to credit transitioned into the GST regime; that demand was set aside.
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Section 73 notice timing does not require a three-month notice-to-order gap; inconsistent tax assessments require fresh consideration.
Case-Laws
GST
Section 73(2) must be read with the adjudication limitation in Section 73(10): it requires issuance of notice at least three months before expiry of the order-making limitation, but does not mandate a three-month interval between notice and adjudication. Reasonable opportunity to respond remains necessary under natural justice. The discussion also identifies that assessment orders for the same period cannot rest on contradictory assumptions that supplies are both exempt for input tax credit purposes and taxable otherwise. Subject to stipulated remittance after adjustment of recoveries, the inconsistent orders were set aside and remanded for fresh consideration, including examination of whether the supplies are exempt.
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Show cause notice limits GST demand grounds; wrong-head IGST payment may be appropriated against CGST and SGST liabilities.
Case-Laws
GST
A GST demand cannot rest on a basis outside the show cause notice without giving the taxpayer an opportunity to respond. The note states that an excess input tax credit determination based on a GSTR-2A comparison, differing from the notice and taxpayer's reply, required fresh consideration after reasonable opportunity. It also explains that section 77 does not apply where IGST was inadvertently paid under the wrong tax head rather than under the mistaken belief that the supply was interstate. The short-payment issue was remanded, with liberty to seek appropriation of IGST against CGST and SGST liability or pursue refund if procedurally required. The related bank-account attachment was to be lifted.
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Vested appellate rights protect pending penalty proceedings from later pre-deposit conditions unless legislation clearly requires retrospective application.
Case-Laws
GST
A vested right of appeal attaches when original adjudicatory proceedings commence, including the conditions for access to the appellate forum. The notes explain that a subsequently introduced, onerous pre-deposit requirement cannot apply to pending proceedings unless the amendment expressly or necessarily provides for retrospective operation. Where a show-cause notice imposing personal penalty liability preceded substitution of the proviso to section 107(6), the earlier appellate regime governs. The substituted requirement to deposit ten per cent of disputed penalties therefore does not apply to penalty-only appeals arising from that notice, although any admitted amount remains payable. The Appellate Authority has no inherent power to waive an otherwise applicable statutory pre-deposit.
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GST portal-only service of notices and orders is invalid when rules do not prescribe it as a service mode.
Case-Laws
GST
Service of GST show cause notices and adjudication orders solely by uploading them on the Common Portal was treated as invalid where the 2017 Rules did not prescribe the portal as a mode of service. The retrospective amendment concerning portal functions did not alter that position. Where the assessee lacked knowledge of the uploaded order and serious civil consequences followed, portal upload alone could not constitute valid service. Applying Luxmi Traders, the appellate remedy was to be considered on merits upon satisfaction of the statutory pre-deposit condition; recovery remained subject to final adjudication and the bank-account attachment was revoked.
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ITC Q1 profit declines 15.6 pc to Rs 4,508.79 cr; non-cigarette FMCG posts robust growth
GST
Dated:- 31-7-2026
PTI
Kolkata, Jul 31 (PTI) Diversified conglomerate ITC Ltd on Friday reported a 15.6 per cent decline in its consolidated profit for the June 2026 quarter to Rs 4,508.79 crore, as higher expenses and the impact of a sharp increase in excise duty on cigarettes weighed on profitability, even as its non-cigarette FMCG business delivered strong double-digit growth.

The Kolkata-headquartered company posted a consolidated profit of Rs 5,343.41 crore in the April-June quarter a year ago, according to a regulatory filing.

Revenue from operations rose 27.64 per cent to Rs 29,523.3 crore in the first quarter of FY27 from Rs

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rategy to protect market share and limit migration to illicit trade.

ITC said it implemented more than 30 interventions in a short span to re-architect and strengthen its cigarette portfolio across price points, including value-accretive offerings and leveraging key trademarks.

According to the company, staggered and agile pricing actions helped protect its consumer franchise while mitigating the risk of volume migration to illicit trade. However, the company did not clarify whether the entire burden of the higher excise duty had been passed on to consumers.

The higher excise incidence also impacted profitability during the quarter.

Meanwhile, the company's non-cigarette FMCG business continued to deliver strong growth.

Reven

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.

ITC said inflation in key raw materials such as fuel, edible oil, soap noodles and packaging materials, driven by the West Asia conflict, was mitigated through strategic inventory cover, commodity hedging and price-volume rebalancing initiatives.

On the broader business environment, the company said demand across both rural and urban markets remained resilient during the quarter, although imported inflation remains a key concern in the near term.

India is currently witnessing a significant monsoon deficit and lower kharif sowing levels compared with the corresponding period last year.

“Additionally, spatial and temporal variations in monsoon would remain a key monitorable. A protracted conflict in West Asia, alongside emerging

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Punjab extends deadline of one-time scheme for settling tax dues of pre-GST period till Sept 30
GST
Dated:- 31-7-2026
PTI
Chandigarh, Jul 31 (PTI) The Punjab government on Friday announced the extension of its one-time tax settlement scheme till September 30 for clearing pending dues for the period before the implementation of GST (goods and services tax).

The earlier deadline of the One-Time Settlement (OTS) Scheme 2025 was July 31.

GST, a unified taxation regime to replace multiple indirect taxes levied by central and state governments, was implemented nationwide on July 1, 2017.

The extension of the deadline will allow eligible taxpayers to settle pending tax disputes with substantial relief, said Finance, Excise

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ly policies aimed at resolving legacy tax disputes.

At the same time, Cheema said, the Excise and Taxation Department has intensified recovery proceedings against habitual defaulters of value added tax (VAT) through property attachment and auction.

More than Rs 12.39 crore has been recovered through enforcement action, with several defaulters opting for the OTS scheme after recovery proceedings were initiated, he said.

The department has scheduled 13 auction proceedings in August to recover around Rs 48.48 crore in outstanding dues, Cheema said and urged the taxpayers to settle their liabilities under the scheme before the auction dates.

Calling the extension a “strictly final” opportunity, Cheema warned that no further exte

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Statutory pre-deposit defects in GST appeals must be curable before dismissal, enabling merits-based appellate consideration after compliance.
Case-Laws
GST
Statutory pre-deposit compliance in GST appeals is described as a procedural requirement, requiring an opportunity to cure any deficiency before an appeal is rejected. The notes state that where the pre-deposit shortfall was rectified before the appellate authority issued its order, the appeal should proceed to determination on merits. Referring to similar High Court decisions, the text records that the appellate order was set aside and the GST appeal restored for fresh disposal after notice and adequate hearing.
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GST reimbursement under gas-sale contracts requires admissible proof, while prior invoice payments do not automatically establish waiver or estoppel.
Case-Laws
GST
Contractual reimbursement of GST on gas-transmission charges depends on a plausible reading of the Gas Sale Agreement, and an arbitral tribunal's construction is not displaced merely because another interpretation is possible. The notes state that reimbursement could not be sustained without admissible evidence linking GST-deposit receipts to the relevant gas transactions; reliance on unproved documents despite an unresolved objection offends natural justice. They also distinguish waiver from estoppel: waiver requires intentional relinquishment of a known right, while estoppel requires representation, reliance and alteration of position. Payment of prior invoices under a clause requiring payment before claims may preserve supply and does not, by itself, bar recurring invoice-based claims.
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Efficacious statutory appellate remedy bars writ review, while bona fide writ-pendency time may be excluded from appeal limitation.
Case-Laws
GST
An efficacious statutory appellate remedy under the Finance Act, 1994 may preclude writ review of a service-tax adjudication order where no jurisdictional error is shown. The note states that the petitioner had not timely replied to the show-cause notice and filed a reply only after adjudication; the writ petition was therefore not examined on merits and the petitioner was relegated to the statutory appeal. It further records that time spent bona fide pursuing a writ petition, instituted within the appeal limitation period, may be excluded when computing limitation for the appeal. The petitioner was permitted to file the appeal within 30 days, with interim protection temporarily continued.
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Natural justice in GST demand adjudication requires an effective hearing, permitting writ relief despite an alternative appellate remedy.
Case-Laws
GST
Failure to reply to a GST show-cause notice or participate in adjudication may warrant fresh consideration where non-participation resulted from inadequate information or instructions from an authorised representative and sufficient bona fide cause exists. The discussion stresses that principles of natural justice require a reasonable opportunity to file a reply, produce material and receive a personal hearing before the demand is determined. It also addresses writ jurisdiction despite an alternative GST appellate remedy, noting that judicial intervention may be available to secure an effective merits hearing. The deposited amount may be retained pending the outcome of fresh adjudication.
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Condonation of delay required where an unrepresented appellant had sufficient cause, restoring statutory appeal for merits review.
Case-Laws
GST
Condonation of delay should be considered through a justice-oriented approach where an appellant appearing without legal assistance could not file a condonation application or properly present grounds due to bona fide reasons, unavoidable circumstances and sufficient cause. The short delay was condoned because the appellant's lack of representation warranted an opportunity to pursue the statutory appeal with legal assistance. The appellate order was set aside, and the appeal was restored and remitted for fresh consideration on merits, with liberty to engage counsel and file additional grounds.
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Ex parte GST adjudication requires a fair opportunity to reply and be heard before fresh determination proceeds.
Case-Laws
GST
Ex parte GST adjudication orders passed after the taxpayer did not reply to show-cause notices or receive a hearing were set aside on the stated bona fide reasons, unavoidable circumstances and sufficient cause for the omission. A justice-oriented approach supported granting a further opportunity to file replies and participate in the proceedings. The matters for the relevant financial years were remitted for fresh adjudication from the reply stage, subject to the stipulated deposit and an opportunity of hearing; consequential recovery proceedings were also set aside.
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Commensurate price reduction is mandatory for input tax credit benefits; free construction work cannot satisfy anti-profiteering obligations.
Case-Laws
GST
Additional input tax credit benefits must be passed to each eligible homebuyer through a commensurate reduction in price. The Tribunal found that, although benefits were passed to four buyers, the balance remained unpaid to two and constituted contravention of the anti-profiteering requirement. Free additional construction work could not replace the mandated price reduction, regardless of its value or the buyers' acknowledgement. Interest was payable from collection of the higher amount until actual payment because recipients were deprived of their monetary entitlement. Penalty applied to the continuing contravention after the penal provision took effect, subject to the statutory exemption where the profiteered amount is deposited within the prescribed period.
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Advisory on Keeping on Hold the Proposed e-Way Bill Enhancements
GST
Dated:- 30-7-2026

GSTN had earlier issued advisories dated 9th June 2026 and 17th June 2026 regarding certain proposed enhancements to the e-Way Bill system, with the scheduled date of implementation as 1st August 2026. Detailed FAQs relating to these enhancements were also issued on 2nd July 2026.

It is hereby informed that the implementation of the above-mentioned enhancements has been kept on hold until furt

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Unsigned GST DRC forms challenge may be pursued through statutory appeal, subject to pre-deposit and delay condonation consideration.
Case-Laws
GST
Challenges were raised to GST adjudication proceedings on the ground that Form GST DRC-01, its attachment, and the order summary in Form GST DRC-07 lacked signatures. The High Court did not examine the merits of those objections. At the petitioner's request, it disposed of the writ petition with liberty to pursue the statutory appeal after making the required pre-deposit and filing an application for condonation of delay. The appellate authority may consider the delay application and, if satisfied, decide the appeal on merits in accordance with law.
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Extraordinary writ jurisdiction cannot revive a time-barred statutory GST appeal merely because appellate limitation has expired.
Case-Laws
GST
Extraordinary writ jurisdiction was declined where the taxpayer's statutory appeal against a GST demand had become time-barred. The notes state that the taxpayer submitted a physical reply to the show-cause notice because the portal had earlier been handled by a chartered accountant, but the final order recorded no reply and confirmed the demand. A rectification application under the GST Act remained pending but also appeared time-barred. The High Court dismissed the writ petition, stating that expiry of the statutory appellate limitation did not justify exercising jurisdiction under Article 226.
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Mandatory hearing before adverse GST determination protects natural justice; unconsidered replies invalidate resulting demand and appellate action.
Case-Laws
GST
Failure to consider a taxpayer's reply to a GST show-cause notice and to provide a hearing before an adverse determination breaches statutory requirements and principles of natural justice. Section 75(4) requires an opportunity of hearing where an adverse decision is contemplated, even without a written request. The GST determination, related demand proceedings and consequential appellate rejection were therefore set aside as unsustainable. The assessing authority may issue an appropriate notice and proceed in accordance with law.
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Statutory labelling and institutional-consumer packaging preserved GST exemption for frozen chicken cuts despite corporate names appearing on invoices.
Case-Laws
GST
Statutory labelling of a manufacturer's corporate name and address on unit containers does not amount to use of a brand name where the declarations are required for food-safety and legal-metrology compliance. After removal of brand logos, the frozen chicken cuts remained eligible for exemption; the corporate name on packages or invoices did not create a commercial brand connection. Packages supplied exclusively to institutional consumers were not treated as pre-packaged commodities intended for retail sale under the packaged-commodities rules. They therefore fell outside the amended taxable category for pre-packaged and labelled goods. The reported conclusion upheld exemption and deletion of the tax demand, interest and penalty.
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Commensurate price reduction for input tax credit cannot be replaced by free upgrades, with GST and interest repayable.
Case-Laws
GST
Additional input tax credit available to a real-estate developer after GST must be passed to eligible homebuyers through a commensurate reduction in price. Free structural upgrades, fittings or other collateral benefits cannot replace the prescribed price reduction, irrespective of their asserted value. Where higher consideration was collected inclusive of GST, the unpassed benefit includes the corresponding GST component and must be returned to homebuyers. The anti-profiteering framework also requires interest at 18 per cent per annum from collection of the higher amount until repayment. Penalty is not warranted where the relevant contravening conduct substantially concluded before the penalty provision came into force.
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