Author: admin_gst

Recovery from Electronic Credit Ledger without following Section 78 three-month waiting period ruled illegal and arbitrary
Case-Laws
GST
HC held that respondents' recovery of amount from petitioner's Electronic Credit Ledger/Electronic Cash Ledger under Section 79 of GST Act, 2017 was illegal and arbitrary. Court found that pursuant to Section 78, recovery proceedings cannot be initiated within three months of demand becoming payable unless reasons are recorded. Additionally, under Section 112(9), deposit of 10% of demand stays remaining amount, with three-month limitation for appeal filing. CBIC circular dated 11.07.2024 permits pre-deposit even when appellate tribunals are not constituted. Since respondents recovered amount on 29.01.2025 without complying with statutory requirements, HC quashed and set aside the recovery action. Petition allowed.
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Cash Credit Account Not Attachable Under Section 83 MGST Act, Represents Bank Liability Not Taxpayer's Property
Case-Laws
GST
HC held that a cash credit account cannot be provisionally attached under Section 83 of MGST Act, as it represents a bank liability rather than a property belonging to the account holder. The court determined that the statutory language of “any property including bank account” does not encompass cash credit accounts. Relying on precedential decisions from Gujarat and Calcutta HCs, the court ruled the provisional attachment order as unauthorized, arbitrary, and illegal. The petition was consequently allowed, quashing the impugned order and preventing the attachment of the cash credit account.
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Landmark GST Notice Invalidated: Section 74 Enforcement Lacks Jurisdictional Basis and Legal Substantiation
Case-Laws
GST
HC held that the SCN u/s 74 of GST Act, 2017 was issued without jurisdiction. The court found no ingredients present for invoking Section 74, specifically noting absence of allegations of fraud, wilful misstatement, or material suppression. Relying on precedent in a similar case involving the same tax officer, the court determined that the notice lacked requisite legal foundations. Consequently, the HC quashed and set aside the impugned notice, thereby allowing the petition and rendering the SCN legally ineffective.
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Independent Design Services Qualify as Zero-Rated Export, Entitling Firm to Full Input Tax Credit Refund with Statutory Interest
Case-Laws
GST
HC ruled that the petitioner, providing design and engineering services to foreign recipients on a principal-to-principal basis, does not constitute an agency relationship. The court determined that the petitioner is an independent entity supplying services directly to its foreign counterparts, thereby qualifying as zero-rated supplies under Section 2(6) of IGST Act. Consequently, the petitioner is entitled to refund of unutilized Input Tax Credit relating to export services, including statutory interest under Section 56 of CGST Act. The petition was allowed, mandating the tax authorities to process the refund claim.
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Importers Can Claim Input Tax Credit on Re-Assessed Bill of Entry Within Specified Time Limits Under GST Rules
Case-Laws
GST
AAR ruled on Input Tax Credit (ITC) eligibility for import IGST. The authority held that TR-6 challan is not a valid document for ITC availment under GST rules. Bill of entry, whether original or re-assessed, is an eligible document for ITC, subject to Section 16(4) of CGST Act time limitations. The time limit for ITC on differential IGST begins from the re-assessment date of bill of entry, provided the re-assessment is not due to fraud or wilful misstatement. The ruling emphasizes that ITC availment must be completed by the 30th November following the financial year or annual return filing, whichever is earlier.
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Developer's Land-Transfer Deal Triggers Full GST Liability Under Joint Development Agreement with One-Third Land Value Deduction
Case-Laws
GST
The AAR determined that the developer-promoter's transaction involving undivided share of land and constructed residential units does not qualify as a “sale of land” under Item No. 5 of Schedule III of CGST Act. The Joint Development Agreement and subsequent sale of apartments attract GST liability. Despite the applicant's contention that the composite value represents land sale and should be exempt, the ruling clarifies that the transaction involves supply of service and goods, rendering GST applicable. The applicant must pay GST on the transaction value, with a permissible one-third deduction for land value, particularly for transactions executed before the completion certificate or first occupation of residential units.
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Taxpayer Wins Challenge Against Conflicting Tax Assessment Orders Under GST Section 161, Highlighting Procedural Fairness
Case-Laws
GST
HC allowed the writ petition, quashing the subsequent order (Ext.P8) and rejection order (Ext.P14), recognizing that the initial order (Ext.P7) had already conclusively adjudicated the assessment discrepancies for 2017-2018. The court held that under Section 161 of the GST Act, rectification can be initiated suo motu when an error is apparent on record, particularly in cases involving mutually conflicting departmental orders. The petitioner's timely email communication within the statutory period was deemed significant in establishing the basis for rectification, despite the technical non-compliance with portal submission requirements.
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Legal Challenge Denied: Partnership Firm's Late Appeal Rejected Due to Insufficient Justification for Prolonged Delay
Case-Laws
GST
HC dismissed the appeal, finding no sufficient cause to condone the 7-month and 20-day delay in filing. Despite medical prescriptions explaining partial delay, the court held that as a partnership firm, other partners could have acted. The petitioner failed to provide a comprehensive explanation for the entire delay period. The court emphasized that statutory service through portal upload is valid, and supplementary communications are facilitative. Applying Section 107(4), the appellate authority's refusal to extend time limitation was deemed consistent with fiscal discipline and procedural mandates, warranting no judicial intervention under constitutional review.
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Tax Notice Invalidated: Procedural Gaps Expose Systemic Service Flaws in GST Assessment Proceedings Under Section 169
Case-Laws
GST
HC set aside the assessment order due to procedural deficiencies in notice service. Despite portal upload, the court found insufficient efforts to ensure effective communication with the petitioner. The HC emphasized that merely uploading notices on the GST portal does not constitute proper service, especially when alternative notification methods under Section 169 were available. The court highlighted the need for officers to apply due diligence in serving notices to prevent ex parte orders that could lead to unnecessary litigation. The matter was remanded for fresh consideration, with the petitioner willing to pay 25% of the disputed tax, thus ensuring principles of natural justice were upheld.
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GST Assessment Order Challenged: Writ Petition Dismissed, Statutory Appeal Route Recommended Under Section 107
Case-Laws
GST
HC dismissed the writ petition challenging a GST assessment order related to ineligible input tax credit (ITC) from a non-existent taxpayer. The court held that disputed factual issues regarding audit findings and time limitation could not be adjudicated at this stage. The petitioner was granted liberty to prefer a statutory appeal under Section 107 of the GST Act, thereby preserving their right to challenge the order through appropriate appellate mechanisms without prejudicing their substantive legal rights.
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Legal Challenge Halts Tax Proceedings Against Dissolved Company, Citing Procedural Flaws and Violation of Natural Justice Principles
Case-Laws
GST
HC quashed tax proceedings initiated against a dissolved company under GST Act, finding the impugned orders were passed without application of mind and violated principles of natural justice. The court determined that initiating proceedings against a company already dissolved (effective 30/09/2022) is legally untenable. Consequently, the original orders and subsequent recovery proceedings were set aside, rendering them invalid. The court emphasized that administrative actions against a dissolved corporate entity lack legal sanctity and cannot be sustained.
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Pharmaceutical Importer Exempted from Multiple GST Registrations When Operating Through Free Trade Warehousing Zone
Case-Laws
GST
In a ruling by AAR, a pharmaceutical goods importer operating through a Free Trade Warehousing Zone (FTWZ) in Tamil Nadu was found not obligated to obtain a separate GST registration in the state. The decision hinged on the interpretation that sales of goods within FTWZ before home consumption clearance do not constitute a taxable supply. The warehousing activities, deemed to be in a customs-bonded area outside India's customs territory, do not trigger GST registration requirements. The applicant's existing registration in Telengana was deemed sufficient to manage potential tax compliances arising from future goods clearance into the domestic tariff area.
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Union Minister of Commerce & Industry Shri Piyush Goyal Reviews Progress of NICDC-led Industrial Nodes in Andhra Pradesh
GST
Dated:- 17-6-2025

Shri Piyush Goyal Calls for Innovation-Driven Industrial Nodes with Dedicated Startup Zones, Global Investment Conclaves, and Real-Time Project Monitoring
Union Minister of Commerce & Industry, Shri Piyush Goyal, chaired a high-level review meeting on 15th June 2025 at the Tobacco Board, Guntur, to assess the progress of NICDC-led industrial nodes in Andhra Pradesh under various industrial corridors.
The review focused on the development of three major nodes in the state-Krishnapatnam Industrial Area under the Chennai-Bengaluru Industrial Corridor (CBIC), Orvakal Industrial Area under

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ves to attract targeted foreign investments. He further called for the creation of a centralized dashboard to enable real-time monitoring of project progress and urged the adoption of advanced testing and quality control mechanisms to ensure world-class infrastructure.
Reaffirming the Government of India's commitment to transforming Andhra Pradesh into a symbol of industrial excellence and innovation, the Minister said the state is poised to become “Swarnandhra Pradesh”-a beacon of inclusive and sustainable industrial growth.
The meeting was attended by Member of Parliament (Guntur) Dr. Chandra Sekhar Pemmasani; Minister of State for Rural Development & Communications, Shri T.G. Bharath; Minister of Industries & Commerce, Government of An

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ementation.
Andhra Pradesh: India's Emerging Industrial Powerhouse
Andhra Pradesh is the only state in the country to host industrial nodes under three separate Industrial Corridors. With integrated planning, robust infrastructure, and strong institutional backing, these projects mark a new era of industrialization in the state and the nation:
* Krishnapatnam Node (2,006 acres): Investment potential of approx. Rs.10,500 crore with employment generation of 1 lakh jobs.
* Orvakal Node (2,621 acres): Projected investment of Rs.12,000 crore and employment for approx. 45,000 people.
* Kopparthy Node (2,596 acres): Expected to attract Rs.8,800 crore with job creation for approx. 54,000 individuals.
About NICDC
The National Industrial Co

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Subject: Introduction of Enhanced Inter-operable Services Between E-Way Bill Portals
GST
Dated:- 17-6-2025

GSTN is pleased to inform that NIC shall be launching the new E-Way Bill 2.0 portal (https://ewaybill2.gst.gov.in) on 1st July 2025, featuring enhanced inter-operable E-Way Bill functionalities. The portal is being introduced to provide enhanced inter-operability between the existing E-Way Bill 1.0 Portal (https://ewaybillgst.gov.in) and the new portal.
1. Objective
The new E-Way Bill 2.0 portal has been developed in response to taxpayers' demands for continuity in services during exigencies. It enables cross-portal access to critical E-Way Bill functionalities, ensuring seamless o

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real-time synchronised architecture wherein E-Way Bill data will be mirrored across both systems within seconds
b) In the event of a technical issue or downtime on the E-Way Bill 1.0 portal, taxpayers may perform all necessary operations (e.g., updating Part-B) on the E-Way Bill 2.0 portal and carry the E-Way Bill slip generated therefrom.
c) This dual-system approach is designed to eliminate dependency on a single portal and ensure business continuity.
4. Availability via API
All the above services will also be made available to taxpayers and logistics operators through APIs, in addition to the web portal interface. These APIs are currently hosted on the sandbox environment for testing and integration pu

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Statutory Notice Invalidated: Section 74 Requirements Not Met, Jurisdictional Defects Render Notice Procedurally Flawed
Case-Laws
GST
HC allowed the petition challenging a statutory notice, finding that the jurisdictional requirements for invoking Section 74 were not satisfied. The court determined that the notice lacked essential ingredients of fraud, wilful misstatement, or material fact suppression. The notice's language referenced Section 73 and sought further explanation, indicating an absence of preconditions necessary to invoke Section 74. Consequently, the court held the notice was procedurally invalid and unsustainable, thereby granting relief to the petitioner by nullifying the challenged notice.
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GST Registration Cancellation Challenge Succeeds: Petitioner Granted Hearing and Two-Month Resolution Timeline
Case-Laws
GST
HC allowed the petitioner's challenge to GST registration cancellation, directing the adjudicating authority to: (1) grant a personal hearing to the petitioner, and (2) decide the revocation application within two months of such hearing. The court recognized the petitioner's procedural grievance regarding non-resolution of the registration cancellation matter and mandated a time-bound resolution mechanism. The interim order provides the petitioner an opportunity to present their case and ensures a definitive outcome within a specified timeframe, thereby addressing the administrative delay in processing the GST registration revocation application.
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Exporters Win Big: GST Rule 96(10) Overturned, Clearing Path for Unrestricted Input Duty Refund Claims
Case-Laws
GST
HC analyzed the validity of Rule 96(10) of CGST Rules, 2017 regarding export refund claims. The Court held that Notification No. 20/2024 omitting Rule 96(10) would apply prospectively and to all pending proceedings as of 8th October, 2024. The omission enables exporters to maintain IGST refund claims without restrictions on input duty exemptions. The petitions were allowed, with show cause notices and original orders quashed, effectively providing relief to exporters by removing procedural barriers to refund claims under the GST framework.
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Bank Attachment Upheld as Writ Petition Dismissed for Missed Limitation Period and Available Alternative Remedies
Case-Laws
GST
HC dismissed the writ petition challenging bank attachment, finding no merit in the petitioner's claim. The court held that since the Order-in-Original was not challenged within the prescribed 60-day statutory limitation period and alternative remedies were available, judicial intervention was unwarranted. The court emphasized adherence to procedural timelines and declined to entertain the petition that was filed beyond the stipulated time limit, effectively upholding the original order and consequent bank attachment.
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Tax Fraud Kingpins Caught: Massive Rs. 11.97 Crore ITC Scam Exposes Systematic Revenue Manipulation Under CGST Sections
Case-Laws
GST
HC denied bail in tax fraud case involving fraudulent Input Tax Credit (ITC) exceeding Rs. 11.97 crore. Despite petitioners' claims of being permanent residents, the court found substantial evidence of systematic tax evasion under CGST Act Sections 132(1)(b), 132(1)(c), and 132(1)(f). The court emphasized the potential risk to investigation process beyond physical disappearance, noting the ability to manipulate evidence and procedural systems. Given the significant public revenue implications and prima facie documentary evidence of fraudulent practices, the bail applications were dismissed, prioritizing the integrity of the ongoing financial investigation.
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Data Hosting Services Export Classification Remanded for Comprehensive Review Under Recent Appellate Guidance and GST Circular
Case-Laws
GST
HC remanded the matter regarding export classification of data hosting services. The court directed the Appellate Authority to reconsider the impugned orders in light of recent appellate orders and GST circular dated 10th September, 2024. The existing orders were passed prior to subsequent appellate rulings. The court set aside the challenged Orders-in-Appeal and referred the matter back to the Commissioner (Appeals) for fresh evaluation, effectively allowing the petition through procedural remand without definitively resolving the substantive export services classification issue.
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Foreign Affiliate Service Valuation Upheld: GST Refund Claim Validated Under CBIC Circular No. 210/4/2024 Guidelines
Case-Laws
GST
HC adjudicated a GST refund claim involving services rendered by a foreign affiliate to a domestic related entity. The court referenced precedential judgments in Thales India Pvt. Ltd. and Metal One Corporation Pvt. Ltd., which addressed similar legal controversies regarding service valuation under CBIC Circular No. 210/4/2024. The Department conceded no challenge to the prior order, resulting in the court directing full refund processing of Rs. 8,99,61,147/- to be credited within two months. The petition was consequently disposed of, affirming the petitioner's entitlement to the claimed refund amount.
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High-Stakes Tax Dispute: Fraudulent Input Tax Credit Challenge Rejected, Statutory Appeal Path Remains Open Under Section 107
Case-Laws
GST
HC dismissed writ petition challenging tax authority's show cause notice (SCN) for fraudulent Input Tax Credit (ITC) availment. The court held that allegations of ITC fraud require detailed factual investigation and are not suitable for writ jurisdiction. Statutory appeal under Section 107 of CGST Act, 2017 remains available to the petitioner. The court emphasized that consolidated SCN across multiple financial years does not inherently invalidate proceedings, and future appeals can address specific procedural challenges. Dismissal was based on lack of exceptional circumstances and availability of alternative statutory remedy.
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High Court Orders Reopening of Advance Ruling Proceedings Under CGST Act, Directs Fresh Evaluation with New Evidence
Case-Laws
GST
HC remanded the matter to the Authority for Advance Ruling following the Supreme Court's decision in Safari Retreats Pvt. Ltd. and subsequent retrospective amendments to the CGST Act. The impugned orders dated 24 May 2019 and 6 November 2019 were set aside. Both parties were granted permission to submit additional evidence within four weeks. The Petitioner was directed to appear before the Authority on 14 July 2025, with the Authority instructed to expedite the decision-making process. The petition was disposed of, effectively reopening the advance ruling proceedings for fresh consideration in light of recent legal developments.
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Tender Notification Challenged: GST Waived for Human Hair Auction Participants, Mandatory 18% Tax Requirement Struck Down
Case-Laws
GST
HC adjudicated a challenge to a tender notification's GST condition. The petitioner contested the mandatory 18% GST requirement for auction participants of human hair. The HC determined that based on central government notifications and departmental circulars, human hair collection does not attract GST. Consequently, the court modified clause 23 of the tender notification, prohibiting the respondent from mandating 18% GST from auction participants. The writ petition was disposed of, effectively invalidating the GST imposition and providing relief to potential tender participants.
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Legal Notice Invalidated: Procedural Defect in Communication Renders Show Cause Order Unenforceable, Petitioner Granted Extended Response Time
Case-Laws
GST
HC held that the show cause notice (SCN) issued on 27th September, 2023, was not properly communicated to the petitioner, violating principles of natural justice. Following precedent in a similar case, the court remanded the matter back to the adjudicating authority. The impugned order was set aside, and the petitioner was granted time until 10th July 2025, to file a reply to the SCN. The court directed that hearing notices must be e-mailed to the petitioner and not merely uploaded on the portal, ensuring proper opportunity to be heard.
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