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Ex parte GST assessment remitted for fresh adjudication subject to reply filing and pre-deposit compliance.
Case-Laws
GST
Validity of an ex parte GST assessment order was not examined on merits. The matter was remitted for fresh adjudication, subject to the petitioner's compliance with the conditions relating to filing a reply and depositing 10% of the disputed tax in case of any shortfall in the amount already stated to have been paid. The operative effect is that the assessment was set aside from substantive consideration and the respondent must reconsider the matter after the stated procedural and pre-deposit requirements are met.
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Premature challenge to revisional notice rejected; goods released conditionally pending revision and final order.
Case-Laws
GST
A writ challenge to a notice initiating revision under Section 108 was held premature because no final revisional order had yet been passed. The High Court left open the petitioner's objections on jurisdiction and maintainability to be raised before the revisional authority and declined interference at the threshold. At the same time, it protected the petitioner by directing conditional release of the goods pending revision, subject to an additional deposit, filing of an affidavit undertaking to abide by the revisional order, and participation in the revisional proceedings. The writ petition was disposed of without examining the merits of the revision challenge.
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Input tax credit reconciliation requires factual verification; belated GST appeal remanded for merits despite limitation, subject to deposit.
Case-Laws
GST
The High Court held that a belated GST appeal concerning reconciliation of input tax credit mismatch could not be rejected on limitation alone where the records showed possible inconsistency in IGST, CGST and SGST credit availment and the authorities had not verified whether the disputed credits and payments were correctly accounted for. Because factual reconciliation was necessary to determine whether excess or short credit had been availed and whether the claimed payments had been given proper effect, the matter was remitted to the appellate authority for fresh disposal on merits without reference to limitation, subject to an additional deposit by the petitioner. If that condition was not met, the authorities were left free to proceed in accordance with law.
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Excise duty on diesel exports cut to Rs 23/ltr, ATF exports to Rs 33/ltr
GST
Dated:- 1-5-2026
PTI
New Delhi, May 1 (PTI) The government has cut the windfall gains tax on the export of diesel to Rs 23 per litre and aviation turbine fuel to Rs 33/litre, effective Friday.

The finance ministry, in a statement, said there will be no change in existing excise duty rates on petrol and diesel for domestic consumption.

The special additional excise duty on export of diesel was reduced to Rs 23 per litre from Rs 55.5 per litre, and aviation turbine fuel to Rs 33 per litre from Rs 42 per litre.

The road and infrastructure Cess on the export of diesel will be nil for the next fortnight, beginning May 1.

The rate of duty on e

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IMEC momentum to boost Karnataka exports amid global trade disruptions
GST
Dated:- 30-4-2026
PTI
Bengaluru, Apr 30 (PTI) Karnataka’s exporters are set to benefit as the India-Middle East-Europe Economic Corridor (IMEC) gathers momentum as an alternative to traditional maritime choke points, a senior tax official said, pointing to shifting global trade routes amid ongoing geopolitical tensions.

Addressing a seminar on “Navigating Geo-Political Challenges: Policy Measures and Preparedness to Build Resilience,” Kotraswamy M, Commissioner of Central Tax, Bengaluru North, said disruptions around key routes such as the Strait of Hormuz and the Suez Canal had underscored the need for more reliable corridors.

The event was o

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, the Strait of Hormuz, or even the Cape route, which are costly in terms of freight and sailing time, Kotraswamy said.

He added that exporters were also seeing gains from policy measures under the Goods and Services Tax (GST) regime.

“As exports are treated as zero-rated supplies under GST, the effective tax incidence on exports is zero per cent, allowing businesses to claim refunds on input taxes paid,” he said.

Kotraswamy noted that over 90 per cent of refund claims were now processed within seven days, compared to 15 to 30 days earlier.

He further said recent recommendations had enabled automatic refund processing and reduced documentation, cutting compliance costs by 20 to 25 per cent and easing working capital pres

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llion.

Emphasising the need for adaptability, K Ravi, senior vice president of BCIC, said in today’s volatile global landscape, resilience is no longer optional as it is a strategic imperative. Geopolitical challenges are reshaping trade dynamics and compelling businesses to rethink risk, cost, and continuity.

Sivasankari Murugan of ECGC highlighted support mechanisms available to exporters, including insurance products and policy interventions such as the RELIEF Scheme and the Export Promotion Mission.

She said such measures reflected a strong commitment to safeguarding industry competitiveness, and added that platforms like the seminar help stakeholders build the collaborative mindset required to navigate uncertainty. PTI GMS

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Additional input tax credit must be passed on under anti-profiteering law; GST and interest were also upheld on refund.
Case-Laws
GST
Additional input tax credit under GST that increased the ITC-to-purchase ratio was treated as a benefit required to be passed on through commensurate price reduction under anti-profiteering law; the plea that unutilised ITC under an inverted duty structure was not a real benefit, and that prices were fixed by contract, was rejected. The profiteered amount was held to include the GST component because the excess was collected from buyers inclusive of tax. Interest was held mandatory on the amount not passed on, running from collection until refund. Penalty under Section 171(3A) was held attracted for the contravention period, subject to the statutory proviso on timely deposit.
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Statutory university fees are not taxable supply under GST when collected for mandatory affiliation and NOC functions.
Case-Laws
GST
State universities collecting affiliation fees and no-objection certificate fees were held not to make a taxable supply under GST because their affiliation and NOC functions were mandatory statutory duties, not voluntary commercial activity carried on in the course or furtherance of business. The Court distinguished the universities from the State Government and local authorities, and applied the definition of business in Section 2(17) to conclude that such receipts did not fall within Section 7. The GST assessment orders on those fees were therefore set aside, and the exemption notifications were not examined.
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Reasoned refund orders are mandatory: non-speaking rejection of input tax credit refund was set aside and remanded for fresh hearing.
Case-Laws
GST
A refund rejection must be supported by a reasoned and speaking order that deals with the taxpayer's material submissions; where the authority records no specific finding and ignores the reply, the rejection is vitiated for lack of application of mind. The High Court set aside the impugned refund order and corrigendum concerning unutilized input tax credit, and remanded the matter for fresh adjudication after issuance of a fresh show cause notice and grant of personal hearing. It also held that the subsequent notices for earlier financial years had been issued without considering the petitioner's submissions, so those notices were directed to be decided de novo, with the merits left open.
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Alternative statutory remedy bars writ relief where no exceptional ground or strong prima facie vires challenge is shown.
Case-Laws
GST
A writ petition challenging GST search, seizure and adjudicatory action was declined because the petitioners had an efficacious statutory appeal and no exceptional ground for writ interference. The Court also found no prima facie merit in the objections to officer competence or adjudication by the officer concerned, noting the notification assigning powers to Central Tax Officers and the absence of any substantive merits challenge. A vires challenge to the impugned circulars was not entertained because such a challenge must be raised at the earliest and requires a strong prima facie case, which was not shown. The petitioners were left to pursue the appellate remedy, without any final adjudication on merits.
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GSTAT appeal remedy upheld as writ interference was refused in a GST refund dispute over document deficiencies and hearing opportunity.
Case-Laws
GST
A writ challenge to rejection of a GST refund was declined because the Court found no jurisdictional defect or breach of natural justice warranting Article 226 interference. It held that there is a material distinction between lack of jurisdiction and an erroneous exercise of jurisdiction, and that disputes over the correctness of factual findings, including adequacy of supporting refund documents, should be pursued in the statutory appellate forum. The Court also rejected the argument that the GSTAT was inefficacious, noting that the Tribunal had begun functioning and could hear appeals. The petitioner was relegated to the statutory appeal, with all merits left open.
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Electronic cash ledger deposit is not payment until appropriation; delayed GST attracts interest and wrong credit recovery was curtailed.
Case-Laws
GST
Mere deposit of cash in an electronic cash ledger does not amount to payment of GST unless the amount is appropriated to the Government exchequer under Section 49(1) read with Rule 87(6) and (7); where appropriation occurs later, the tax liability is discharged only then and interest remains payable for the period of delay. Input tax credit arising from reverse charge could not be availed before appropriation, but separate recovery of the wrongly availed credit was not justified after the taxpayer later made the debit entries and the amount stood appropriated. The Court also found that the question whether the omission reflected inadvertence or suppression with intent to evade tax required fresh factual consideration, and the composite order for two tax periods was set aside with remand for separate orders.
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CGST Delhi South Commissionerate detects fraudulent availment of Input Tax Credit (ITC) of around Rs.60.59 crore through bogus invoices valued at Rs.397.23 crore; one arrested
GST
Dated:- 29-4-2026

In another significant enforcement action against GST fraud, the Anti-Evasion Branch of CGST Delhi South Commissionerate has arrested the son of a director of the beneficiary entity in a major case involving fraudulent availment and utilisation of Input Tax Credit (ITC) of Rs.60.59 crore through bogus invoices valued at Rs.397.23 crore.

Investigation revealed that a non-functional entity was engaged in the fraudulent passing of inadmissible ITC without any actual supply of goods or services. Verification of its declared place of b

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Natural justice in rectification proceedings requires hearing and consideration of submissions before a reasoned fresh decision.
Case-Laws
GST
The rectification order was set aside for breach of natural justice because it had been passed without affording the petitioner a hearing and without considering its submissions and documents. The Court treated this procedural illegality as the ative defect and directed de novo consideration by the designated authority. The authority was permitted to issue a fresh show cause notice, grant personal hearing, and pass a reasoned and speaking order, with all rival contentions left open for fresh adjudication.
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Time-barred GST appeals upheld, but fresh merits adjudication ordered subject to deposit and reply compliance.
Case-Laws
GST
Statutory appeals were rejected as time-barred because the delay exceeded the condonable period, and the High Court found no legal basis to interfere with that appellate rejection. The dispute concerned GST assessment orders arising from return mismatches, with intimations already issued, so no further interference was warranted on that record. However, on the petitioners' express consent, the Court directed fresh adjudication on merits after payment of the balance disputed tax or required disputed tax, as applicable, and filing replies with supporting documents; the impugned orders were treated as addenda to the show cause notices. Any bank attachment was to stand vacated only upon compliance with those conditions.
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Director's personal bank account cannot be attached for company tax dues; only separate penalty liability may be recovered.
Case-Laws
GST
Sections 89(1) and 174(2)(e) of the CGST Act could be used only to recover liabilities that had already crystallised under the earlier regime. The High Court held that Section 87 of the Finance Act, 1994 did not permit recovery of a company's tax dues from its directors' personal assets, and the garnishee power in Section 87(b)(i) could not justify attachment of a director's personal bank account for the company's liability. Recovery could proceed only for the separate penalty imposed on the director under Section 78A, and because that penalty had been paid, the lien over the remaining balance was unsustainable.
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Natural justice in GST cancellation demands disclosure of relied-upon material before deciding revocation and related proceedings.
Case-Laws
GST
Natural justice requires disclosure of relied-upon inspection material before deciding revocation of GST registration cancellation. The Court directed the authorities to furnish the inspection material, the director's letters, and the Chartered Accountant's letter through proper channel, allow the petitioner to file a supplementary reply, hear the petitioner, and then decide the pending revocation application. It also directed adjudication of the pending DRC-01 proceedings for the relevant tax period. No final determination on the merits of the cancellation was made; the operative emphasis was on a fair opportunity to meet the material relied upon before orders are passed.
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Reasoned adjudication required: non-speaking order quashed for ignoring submissions despite prior remand.
Case-Laws
GST
A non-speaking order passed after de novo adjudication was quashed because the authority failed to consider the petitioner's submissions, despite an earlier remand requiring a fresh, reasoned decision after hearing all contentions. The Court applied the principle that an adjudicating authority must deal with the assessee's replies and cannot cure an earlier defect by issuing a bald order. As the same infirmity persisted in the second round, the matter was remanded for fresh consideration and a reasoned order in accordance with law, with all contentions kept open.
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Natural justice in GST registration cancellation: non-speaking orders without hearing were quashed and remanded for fresh adjudication.
Case-Laws
GST
HC quashed cancellation of GST registration and rejection of revocation because the show-cause notices and orders were non-speaking, lacked due consideration of the taxpayer's submissions, and were passed without affording a personal hearing. The Court held that cancellation of registration carries serious civil consequences and must comply with natural justice, including a reasoned decision. The impugned notices and consequential orders were set aside, and the matter was remanded to the original authority for fresh adjudication after hearing the petitioner and passing a speaking order.
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Statutory university affiliation fees were held outside GST as a non-commercial educational function and, alternatively, exempt educational services.
Case-Laws
GST
GST was held not to apply to affiliation fees collected by a statutory university because granting affiliation under the State university law was part of its regulatory and educational mandate, not a commercial supply in the course or furtherance of business. The Court held that Sections 7 and 9 of the CGST Act could not be used to characterise such statutory functions as taxable services, and therefore the demand under Section 74 lacked jurisdiction. In the alternative, the Court held that affiliation-related activity would also fall within the exemption for educational services, since affiliation forms part of the educational framework for admissions, courses and degree conferment.
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AI, IndiGo, SpiceJet seek ATF price relief; say airline industry on verge of 'stopping operations'
GST
Dated:- 28-4-2026
PTI
Mumbai, Apr 28 (PTI) Air India, IndiGo and SpiceJet have told the government that the country's airline industry is under extreme stress and on the verge of “stopping operations”, as they sought revision in ATF pricing and financial support.

The West Asia turmoil has pushed up oil prices, and airspace restrictions have increased airlines' operating costs, especially on long-haul routes. Aviation Turbine Fuel (ATF) accounts for around 40 per cent of a carrier's operational expenses.

Against this backdrop, the Federation of Indian Airlines (FIA) has written to the civil aviation ministry, seeking steps

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or immediate and meaningful financial support to tide over the current situation,” it said in a letter on April 26.

Also, the airlines have sought temporary deferment of excise duty on ATF, which is at 11 per cent.

“With the abnormal increase in ATF prices from the pre-crisis period, adding rupee depreciation to the increased prices, the 11 per cent excise duty also increases manifold for the airlines and adds to the ATF price as a big impact on airlines,” they said.

Last month, the government limited the hike in ATF price to Rs 15 per litre for domestic operations, but for international operations, the price rose by Rs 73 per litre.

The airlines said the situation has practically made international operations, along with domest

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Writ jurisdiction for lack of officer competence under GST upheld; adjudication quashed for absence of proper authorisation.
Case-Laws
GST
Writ jurisdiction remained available because the challenge went to the very competence of the officer who passed the GST adjudication order, and an alternative remedy does not bar interference where the impugned action is alleged to be without jurisdiction. Reading Section 2(91) of the CGST Act with Section 6 of the Union Territory GST Act, the HC held that a State tax officer can act as a proper officer only subject to notification issued on the Council's recommendation. As no such recommendation existed authorising the officer concerned, the adjudication was invalid and was quashed, with liberty to the competent authority to pass a fresh order in accordance with law.
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Consideration of audit report in input tax credit dispute led to remand for fresh adjudication.
Case-Laws
GST
Wrongful availment and distribution of input tax credit was interfered with because the competent authority had not considered the petitioner's audit report and other material on record. The petitioner claimed the Section 65(6) audit report gave a clean chit for the disputed input tax credit distributed by the ISD for 2018-19 and 2019-20, and the respondents placed no rebuttal to that plea. The High Court held that the impact of the audit report required adjudication, set aside the impugned order, and remanded the matter for fresh decision after considering both sides' submissions. All merits, including the show cause notice and objections, were left open.
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Documentary evidence and cooperation justified anticipatory bail in a GST input tax credit investigation despite economic offence allegations.
Case-Laws
GST
Anticipatory bail was granted in a GST investigation for alleged wrongful availment of input tax credit because the allegations rested mainly on documentary material, the relevant records had already been furnished, and no compelling basis for custodial interrogation was shown. The Court also relied on the petitioner's cooperation with the inquiry, absence of placed criminal antecedents, and deposit of the amount alleged to have been evaded. On that basis, arrest was found unwarranted, and pre-arrest protection was allowed subject to conditions requiring surrender, execution of bond, regular appearance, travel restriction, and full cooperation with the investigation.
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Approved resolution plan barred continued recovery action and compelled unblocking of input tax credit.
Case-Laws
GST
An approved corporate insolvency resolution plan was treated as ative, and because the State had not lodged its claim in the insolvency proceedings and its challenges to the approval order had failed, it could not continue the impugned recovery action or keep the petitioner's input tax credit blocked. The Court quashed the notice and directed unblocking of the ITC and release of the amount admissible in law. This relief was granted without prejudice to any other recovery action that may remain available to the State under law.
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Multiple tax periods cannot be clubbed in one GST show cause notice; year-wise limitation and liability apply separately.
Case-Laws
GST
A show cause notice under the CGST Act cannot club multiple financial years into one proceeding, because liability, annual return compliance and limitation operate separately for each tax period. A single notice combining distinct years would impermissibly aggregate different due dates and limitation consequences; the impugned notice was therefore quashed. The Court also held that, within the State, its own later decisions on this point were binding, and the contrary Delhi High Court view could not prevail. The Supreme Court's in limine dismissal of the challenge to that view did not attract merger and did not displace the binding effect of the Court's decisions. Liberty was reserved to issue a fresh notice in accordance with law.
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