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Order set aside and matter remanded for fresh adjudication after breach of natural justice; petitioner must deposit Rs.25,000
Case-Laws
GST
HC remanded the matter to the adjudicating authority, setting aside the impugned order and directing fresh adjudication because the petitioner was not afforded audi alteram partem due to failure to file a reply to the show cause notice. The Court found a breach of natural justice and required that the adjudicator afford the petitioner an opportunity

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Detention and seizure under Section 129 GST quashed where genuine import documents and e-way bill later produced
Case-Laws
GST
The HC held that detention and seizure under section 129 of the GST Act was unwarranted where goods were accompanied by genuine import documents and an e-way bill subsequently produced before the seizure order; the record showed the vehicle and goods transported from one State to another and no dispute as to quality, quantity or weight. The court found no mens r

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Adjudication order set aside for confirming demand beyond show-cause notice; remand for fresh hearing under Section 75(7)
Case-Laws
GST
The HC dismissed the appeal as time-barred but allowed the petition insofar as the impugned adjudication order violated Section 75(7) of the Goods and Services Tax Act, 2017 by confirming a demand (Rs. 6,52,259.04) exceeding the amount and grounds specified in the show-cause notice (Rs. 2,34,626.52). The court held the defect as substantive and not cure

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Section 74 invocation requires clear allegation of fraud, wilful misstatement or suppression; notices defective, Section 73 recovery possible
Case-Laws
GST
HC quashed impugned show cause notices and orders issued under Section 74 of the TNGST Act, 2017, holding that invocation of the extended limitation provision requires clear allegation that non-payment, short payment, erroneous refund or wrongful ITC availing arose from fraud, wilful misstatement or suppression of facts. The notices

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Writ petition dismissed challenging penalty under s.122 CGST for fraudulent ITC via bogus firms; appeal lies under s.107 CGST
Case-Laws
GST
The HC dismissed the writ petition challenging imposition of penalty under s.122 CGST, finding fraudulent availment of input tax credit through creation and operation of non-existent bogus firms by the petitioner and associates. The court held that matters involving complex transactions and voluminous evidence arising from investigatory findings are

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DGGI Delhi Zonal Unit uncovers racket for fraudulently availaing Rs. 645 crore ITC; Key operator arrested
GST
Dated:- 14-11-2025

The Directorate General of GST Intelligence (DGGI), Delhi Zonal Unit, has uncovered a massive case of fraudulent availment and passing of Input Tax Credit (ITC) through a web of 229 dummy GST-registered firms, controlled and operated by a Delhi-based syndicate.
Acting on credible intelligence, DGGI officers conducted coordinated search operations at multiple premises across Delhi, unearthing huge cache of incriminating documents, digital devices, and ledgers that established the operation of non-existent firms engaged in issuing invoices without actual supply of goods or services. This included 162 m

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Petition dismisses challenge to GST cancellation but grants fresh hearing after Section 107 appeal rejected for delay
Case-Laws
GST
In HC, the petition challenging cancellation of the petitioner's GST registration was dismissed insofar as the statutory appeal under Section 107 was rejected solely for delay in filing; the impugned order of cancellation remains operative. For ends of justice, the Court granted the petitioner an equitable opportunity to be heard and directed the department

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Section 130 cannot replace assessment under Sections 73/74; Section 35(6) mandates tax determination for unrecorded goods
Case-Laws
GST
The HC held that proceedings under section 130 of the GST Act, initiated against the petitioner following a survey that disclosed excess unrecorded stock, were unsustainable; where goods are not recorded in statutory accounts, section 35(6) mandates determination of tax and invocation of the adjudicatory provisions of sections 73/74 mutatis mutandis. Th

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Petition allowed; multiple adjudication orders and single show-cause notice quashed, directing consequential action for implementation consistent with law
Case-Laws
GST
The HC allowed the petition, quashed the impugned adjudication orders and the show-cause notice, and directed appropriate consequential action. Specifically, the Court set aside Adjudication Order No. DCCT(Audit)-4.9/GST/DRC-7/T.No./2024-25 dated 31.08.2024 and Adjudication Order No. JCCT/DGSTO-4/ACCT(AUDIT)-4.6/GST/U-73

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Petitioner granted bail under conditions despite Section 132 offences; prolonged custody since 18.04.2025 deemed unjustified
Case-Laws
GST
The HC grants the petitioner bail, subject to furnishing bail/surety bonds to the satisfaction of the trial court/duty magistrate and compliance with any imposed conditions. The court notes the offences under Section 132 expose liability up to five years' imprisonment but recognizes economic offences require stern treatment; however the allegations (

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2 held for creating fake GST firms, claiming Rs 11.79 cr Input Tax Credit
GST
Dated:- 13-11-2025
PTI
Hyderabad, Nov 13 (PTI) Two persons have been arrested for allegedly being part of an inter-state network that created 10 fake GST-registered firms and fraudulently claimed Rs 11.79 crore Input Tax Credit (ITC), the police said on Thursday.
According to a release from the Cyberabad Police Commissionerate, the accused used forged documents to register the firms and generate fake invoices and fabricated turnovers, causing a loss of Rs 11.79 crore to the government.
The network operated across several states, using fake Aadhaar cards, PAN cards, electricity bills, rental agreements, and other forged documents. They also manipulat

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Liquidated damages under concession agreements are not consideration for taxable supply; GST not chargeable, reliance on Circular No.178/10/2022-GST
Case-Laws
GST
AAR held that liquidated damages paid by the applicant to the concessionaire under the concession agreement do not constitute consideration for a taxable supply and are not subject to GST; accordingly, the concessionaire is not entitled to avail input tax credit in respect of such receipts. The Authority applied Circular No.17

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Fusible interlining with 85%+ cotton classifiable under Chapter 52; textile composition test determines tariff treatment
Case-Laws
GST
AAR held that fusible interlining fabric composed of 85% or more cotton is classifiable under Chapter 52 of the Tariff Schedule. Relying on the legal effect of the Tribunal's prior order and Circular No. 5/89 concerning the treatment of fusible interlinings before the insertion and after deletion of Note 2(c) to Chapter 59, the Authority concluded that s

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93-day delay condoned due to consultant incapacitation supported by psychiatrist certificate; appellate order set aside, appeal restored
Case-Laws
GST
The HC allowed the writ petition, holding that the petitioners' explanation for a 93-day delay in filing the statutory appeal – namely incapacitation of their consultant supported by a psychiatrist's certificate – was reasonable, plausible and not indicative of gross negligence or deliberate laches. The court condoned the delay, set aside

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GST input tax credit for lease rental of land barred under section 17(5)(d) CGST Act, covering vacant portions
Case-Laws
GST
AAR held that the applicant is not entitled to claim input tax credit of GST charged on lease rental for land allotted for construction of an industrial unit, as such credit is specifically barred by section 17(5)(d) of the CGST Act. The bar applies irrespective of timing (pre-construction or post-construction), to any vacant portion of the leased land reserved fo

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Order quashes penalty under Section 129(1)(b); directs recalculation under Section 129(1)(a) where e-way bill and invoice identify registered dealer
Case-Laws
GST
The HC set aside the impugned order dated 18.10.2025 and allowed the petition, holding that where goods were accompanied by an e-way bill and tax invoice identifying a registered dealer, any liability could only arise under Section 129(1)(a) of the U.P. Goods and Services Tax Act, 2017; the Adjudicating Authority erred in comp

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Petition dismissed for procedural abuse and failure to comply with Section 107(6)(b) pre-deposit; Order II Rule 2 CPC applied.
Case-Laws
GST
The HC dismissed the petition challenging an ex parte order under Section 74 UPGST Act, holding the challenge misconceived and liable to be rejected. The court found the appellant pursued successive writs to evade the pre-deposit required by Section 107(6)(b) of the GST Act, failed to seek exemption from pre-deposit before the appellate authority a

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Retail inflation in October touches record low of 0.25 pc on GST cuts
GST
Dated:- 12-11-2025
PTI
New Delhi, Nov 12 (PTI) Retail inflation fell to a record low of 0.25 per cent in October following cut in GST rates on nearly 380 items of mass consumption coupled with subdued prices of vegetables, fruits and eggs.
October Consumer Price Index (CPI)-based inflation was lowest in the current series (base year 2012), which captures data since January 2014.
The inflation was 1.44 per cent in September and 6.21 per cent in October 2024.
According to the data released by the National Statistics Office (NSO), the food inflation declined to (-) 5.02 per cent in October.
The decline in headline inflation and food inflation during O

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per cent), Karnataka (2.34 per cent), Punjab (1.81 per cent) and Tamil Nadu (1.29 per cent).
The inflation was negative in several states, including Assam, Bihar, Chhattisgarh, Delhi and Uttar Pradesh.
Commenting on the data, Aditi Nayar, Chief Economist at ICRA, said the Reserve Bank's Monetary Policy Committee (MPC) is likely to pare its CPI inflation projection for FY2026 further from 2.6 per cent, driven by the soft sequential momentum in food prices as well as the impact of the GST rate rationalisation on several items in the CPI basket.
“This, along with the dovish tone of the October 2025 policy document, would support a 25-bps rate cut in the December 2025 policy review, unless Q2 FY2026 GDP growth surprises on the upside,” s

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Remit for fresh re-examination under s.75(2) whether penalty under s.74 instead of s.73 was inappropriate; reply within 30 days.
Case-Laws
GST
The HC remitted the matter to the respondent for fresh consideration whether the petitioner, who has paid the tax and limited its dispute to imposition of penalty and applicability of machinery provisions, validly contends that proceedings under s. 74 are inappropriate and should have been initiated under s. 73; the respondent is directed to exer

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Bail granted to accused under clauses (b),(c),(f),(l) of Section 132(1) CGST Act over alleged Rs.23.66 crore ITC
Case-Laws
GST
HC granted bail to the accused in respect of alleged offences under clauses (b), (c), (f) and (l) of Section 132(1) of the CGST Act, which attract maximum imprisonment of five years and fine. The Court observed the prosecution case is documentary and electronic, the allegations of wrongful availment/passing of ITC totalling Rs.23.66 crore remain to be proved, an

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Penalty Under s.129(3) GST Set Aside Where Part B E-Way Bill Not Generated Due To Technical Error, No Mens Rea
Case-Laws
GST
The HC quashed the impugned orders imposing penalty under s.129(3) of the GST Act and allowed the petition. The court found the record established non-generation of Part B of the e-way bill due to a technical error, which was not disputed, and no authority had recorded any finding of mens rea to evade tax. Absent any proven intent to evade payment of tax, the stat

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Petition dismissed; proceedings under Section 130 read with Section 122 and Section 35(6) upheld for unaccounted goods
Case-Laws
GST
The HC dismissed the petition and upheld the impugned orders instituting proceedings under section 130 read with section 122 of the GST Act against the respondent. Relying on statutory obligations under section 35 and sub-section (6) thereof, the Court affirmed that where a survey reveals unaccounted goods the Proper Officer may determine tax liability and

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Fresh demand on identical grounds barred when Section 61(2) explanation accepted; Section 73 notice and order quashed
Case-Laws
GST
HC held that the petition is maintainable and that issuance of a fresh demand on identical grounds previously examined under Section 61 is impermissible. The court construed Section 61(2) as creating an embargo on further demands, including those under Section 73, where the taxpayer's explanation was accepted; Section 73 contains no non-obstante provision t

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Writ petition dismissed as not maintainable over alleged fraudulent ITC and clandestine clearances; petitioner directed to pursue statutory appeal
Case-Laws
GST
The HC dismissed the writ petition as not maintainable in view of alleged fraudulent availment of Input Tax Credit and clandestine clearance of goods, holding that writ jurisdiction is ordinarily inappropriate where complex factual investigations, voluminous evidence and potential prejudice to the exchequer and the GST regime ar

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Next generation GST reforms led to growth in sales across sectors: Sitharaman
GST
Dated:- 11-11-2025
PTI
Coimbatore (Tamil Nadu), Nov 11 (PTI) Union Finance Minister Nirmala Sitharaman on Tuesday said that the implementation of next generation GST reforms on September 22 has led to a growth in sales across sectors, including automobiles, consumer durables, e-commerce among others.
During an interaction on Next Generation GST reforms at an event organised by the Tamil Nadu Vanigar Sangagalin Peramaippu here, she said her Ministry would continuously work on further simplifying the Goods and Services Tax system.
Sitharaman said Prime Minister Narendra Modi has been stressing the simplification of GST norms, rate cuts and product

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They are also called as SIN goods. For example, tobacco products like cigarettes come under this category.” In her brief address, she said that soon after the next generation GST reforms were introduced on September 22, sales of consumer durables has surged. “For example, sales of Air-conditioners doubled. Similarly, television manufacturers told us that they have seen a 30-35 per cent increase in sales of 43 and 55 inch televisions.” “This conveys that those people who had small television sets at their home opted for bigger ones after the GST reforms were introduced,” she said.
Traders engaged in sales via online, particularly e-commerce players, said that they have witnessed a 20 per cent sales jump, she added.
On the sales of automo

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