Goods and Services Tax

Rule 96(10) Omission Invalidates Administrative Orders, Challenging Procedural Continuity and Regulatory Enforcement Mechanisms
Case-Laws
GST
HC determined that Rule 96(10) of CGST Rules, 2017 was unconditionally omitted without a saving clause, rendering subsequent administrative orders invalid. Referencing SC precedent in Kolhapur Canesugar Works Ltd., the court held that rule omission differs from statute amendment, and Section 6 of General Clauses Act, 1897 does not apply. Consequently, the administrative order dated 30th January, 2025 was found procedurally improper, and its enforcement was stayed pending writ petition resolution. The ruling emphasizes that without explicit legislative saving provisions, pending proceedings cannot continue under an omitted rule.
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Tax Recovery Notice Against Deceased Taxpayer's Heirs Quashed Due to Procedural Irregularities in Statutory Communication
Case-Laws
GST
HC allowed the petition challenging tax recovery proceedings against legal heirs of deceased taxpayer. The court found the statutory notice issued to a deceased person was procedurally invalid, violating principles of natural justice. The STO failed to provide legal heirs an opportunity to be heard before confirming tax demand under Section 74 of the Act of 2017. Consequently, the recovery notice against the petitioners was deemed legally unsustainable, and the entire proceedings were nullified due to non-compliance with statutory requirements for proper notice and hearing.
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GST Assessment Order Invalidated Due to Procedural Unfairness, Denying Petitioner Proper Opportunity to Present Defense
Case-Laws
GST
HC found a violation of natural justice principles in the GST assessment order. The respondent issued a show-cause notice and scheduled a hearing, but failed to consider the petitioner's adjournment request and supporting documentation. Consequently, the court set aside the impugned order (Form GST DRC-07) dated 23.08.2024, determining that the administrative action did not provide adequate opportunity for the petitioner to present a comprehensive defense, thereby breaching fundamental procedural fairness.
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Maida Pappad Extrusion Snack Pellets Classified Under 1905 90 30, Confirmed for 5% GST Rate
Case-Laws
GST
AAR ruled that Maida Pappad, classified as un-cooked/un-fried snack pellets produced through extrusion, falls under tariff sub-heading 1905 90 30. The product is subject to 5% GST rate effective 27.07.2023, as per Notification No. 09/2023-Central Tax (Rate). The ruling emphasizes that advance rulings are case-specific and depend on individual factual circumstances, rejecting direct comparison with previous similar cases. The determination focuses on the product's manufacturing process and inherent characteristics to establish its precise tax classification.
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Tax Credit Case: Bail Granted to V.G. and R.D. Due to Insufficient Evidence and Limited Financial Involvement
Case-Laws
GST
DSC grants bail to accused V.G. and R.D. in tax credit case, finding insufficient evidence of direct involvement. Court noted lack of concrete proof beyond recorded statements, considered accused's 25% and 7% alleged benefit shares are below Rs.5 crore threshold. Accused in custody for 25 days, no further interrogation required. Bail granted on Rs.50,000 personal bond with surety, emphasizing proportionality between alleged offense and prolonged detention. Release orders issued immediately, without commenting on case merits. Procedural arrest requirements deemed satisfied.
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GST Registration Cancelled After Comprehensive Review Finds No Procedural Irregularities or Justifiable Grounds for Continuation
Case-Laws
GST
HC dismissed the writ petition challenging GST registration cancellation. The court found no merit in the petitioner's contentions regarding retrospective cancellation. The competent authority followed due process under the West Bengal GST Act, 2017, and exercised jurisdiction appropriately. The petitioner failed to produce satisfactory evidence or explanations to justify GST registration continuation. The court determined no procedural irregularities or violations of natural justice occurred, and the verification report was conducted in compliance with legal requirements. Consequently, the petition was rejected, and the GST registration cancellation was upheld.
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Government Hospital Support Services Deemed Tax-Exempt Under Public Health Constitutional Mandate
Case-Laws
GST
AAR determined that services provided to 54 government hospitals under DM&RHS constitute exempt supplies. The ruling hinged on constitutional provisions under Articles 243G and 243W, which define public health and hospital services as state government responsibilities. The services, including housekeeping, security, and maintenance support, directly relate to hospital facility operations. Consequently, these services fall under Entry No.3 of Notification No. 12/2017-CT (Rate), rendering them tax exempt. The exemption applies specifically to activities intrinsically linked to public health infrastructure maintenance, recognizing the essential nature of supporting government healthcare facilities.
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Integrated Terminal Project Deemed Composite Works Contract, Attracts 18% GST Under Section 2(119) of CGST Act
Case-Laws
GST
The AAR determined that the contract for installing terminals linking Western and Southern regions constitutes a composite works contract under Section 2(119) of CGST Act. The services involving transportation, freight, and insurance are inextricably linked to the overall project execution. The entire contract spans five segments but fundamentally aims to commission immovable property. Consequently, the services are classified under 'Construction Services' (SAC 9954) and attract 18% GST, negating any potential exemption claims. The ruling emphasizes the interconnected nature of the contract's components, treating transportation and related services as integral to the comprehensive works contract rather than standalone services.
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Refund Claim Upheld: Petitioner Wins Challenge Against Incorrect Rejection, Secures Full Refund with Interest under Section 56
Case-Laws
GST
HC allowed the petitioner's refund claim, quashing the respondent's rejection order. The court directed the respondent to grant a refund of Rs. 96,65,325/- with 6% interest per annum from 12.09.2021 until actual payment, as per Section 56 of CGST Act. The original ground for refund rejection was found factually incorrect, as the Appellate Authority had indeed specified the refund amount. The petition was consequently disposed of in favor of the petitioner.
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Government Dues Settlement Clears Property Sale Path, Orders Immediate Payment and Certificate Deletion Within Four Weeks
Case-Laws
GST
HC ruled in favor of petitioner, directing payment of outstanding government dues amounting to Rs. 21,99,700/- within four weeks from order receipt. Upon compliance, the second respondent must delete attachment endorsement from encumbrance certificate, thereby facilitating sale certificate registration for sixth respondent. The court's intervention resolved the recovery notice dispute by providing a clear pathway for resolution through specified monetary settlement, effectively removing administrative impediments to property transaction.
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Municipal Onion Market Leasing Deemed Public Function Exempt from GST Under Constitutional Municipal Powers
Case-Laws
GST
AAR determined that leasing 19 onion mandis to a contractor for daily fee collection constitutes a municipal function under Article 243W of the Constitution. The activity is exempt from GST as it falls within the scope of local authority's public functions. The transaction between the municipality and contractor is considered an inseparable public service activity, not a commercial supply of goods or services. The notification No. 14/2017-CT(Rate) applies, rendering the entire transaction outside the taxable domain. The key consideration was the functional nexus with constitutional municipal responsibilities, rather than the administrative mechanism of service delivery.
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GST Advance Ruling Rejected: Contractor's Application Deemed Inadmissible Under Section 97(2) CGST Act
Case-Laws
GST
AAR determined that the advance ruling application by the contractor regarding GST rate reimbursement was inadmissible. The ruling authority found the tax liability assessment question does not align with Section 97(2) of CGST Act, 2017. Due to the applicant's failure to respond to official notices and the nature of the query falling outside statutory provisions, no substantive ruling was issued. The application was effectively dismissed without addressing the underlying GST rate dispute between 5% and 12% for the works contract.
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Tapioca Flour Waste Classified as Livestock Feed Residue, Attracts 5% GST Under Chapter 23031000
Case-Laws
GST
The AAR determined that tapioca flour derived from dried tapioca root remnants is classified under Chapter heading 23031000, attracting 5% GST. The product, deemed unfit for human consumption and primarily used as livestock feed, was correctly categorized as “Residues of starch manufacture and similar residues”. The ruling, based on the applicant's submitted facts, rejected the rectification application under Section 98(2) of CGST/TNGST Acts, 2017, finding no procedural errors in the original advance ruling.
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Legal Appeal Reinstated: Signature Validation and Natural Justice Principles Protect Procedural Fairness in Landmark Ruling
Case-Laws
GST
HC allowed the petition challenging dismissal of appeal, finding substantial procedural irregularity. The court determined that the authorized signatory's signature was valid, and the original dismissal violated principles of natural justice. The impugned order was set aside, with the appeal restored to the original file for fresh merits-based consideration, ensuring procedural fairness and opportunity to be heard.
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Taxpayers Can Rectify Technical Errors in GST TRAN-1, Ensuring Legitimate Input Tax Credit Entitlements Without Penalty
Case-Laws
GST
HC held that a registered assessee who committed a technical error in filing GST TRAN-1 cannot be denied transitional tax credit. The court emphasized that procedural technicalities should not deprive an eligible taxpayer of legitimate tax benefits. Relying on SC precedents, the court directed the tax authorities to facilitate revision of the GST TRAN-1 form, recognizing the indefeasible nature of input tax credits. The writ appeal was dismissed, upholding the Single Judge's order that allows the taxpayer to rectify the inadvertent error in the transitional credit form.
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PWD Wins Partial Relief: GST Refund, Service Tax Payment Directed with Penalty Exemption Under Multiple Statutory Provisions
Case-Laws
GST
HC dismissed the writ petition while directing PWD authorities to refund Rs. 65.28 lakhs of GST to appellant's cash/credit ledger and pay Rs. 84,84,035/- towards service tax within a stipulated timeframe. The appellant must remit the service tax amount to authorities within three days of receipt. The court set aside penalties imposed under Sections 78 of Finance Act, Section 174 of CGST Act, and Sections 77(1)(a) and 77(2) of Finance Act, finding no justification for penalty imposition. The order upheld the principle of exhausting statutory appellate remedies and recognized administrative complexities in the transaction, ultimately allowing the appeal with specific monetary and procedural directions.
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Bengal's GST collection in FY 2024-25 higher than national-level: Mamata
GST
Dated:- 6-4-2025
PTI
Kolkata, Apr 6 (PTI) West Bengal Chief Minister Mamata Banerjee on Sunday said the state is steadily progressing in its own resource mobilisation efforts and has achieved 11.43 per cent growth in GST collection in 2024-25 financial year, which is two per cent more than the national level.
Banerjee said West Bengal in the 2024-25 financial year recorded a GST collection of Rs 4,808 crore more than the preceding year.
“Glad to share that West Bengal is steadily progressing in its own resource mobilisation efforts, which is evident from the fiscal results compiled at the end of the FY 2024-25. In GST in 24-25, we have collected Rs 4,

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Taxpayers Can Leverage Section 128A Benefits for Tax Payments Made Before 1st November 2024 with Specific Compliance
Circulars
GST – States
The circular addresses two key issues regarding Section 128A of the CGST Act, 2017. First, taxpayers who made tax payments through GSTR-3B before 1st November 2024 remain eligible for benefits under Section 128A, subject to proper officer verification. Second, for notices/orders spanning periods partially covered and outside Section 128A, taxpayers can file FORM SPL-01 or SPL-02 after paying tax liability for the covered period (FY 2017-18 to 2019-20). The appellate authority will then pass appropriate orders for periods outside the specified timeframe, allowing partial appeal withdrawal while maintaining the intent to avail Section 128A benefits.
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Pharmaceutical Exporter Wins IGST Refund Claim, Court Orders Immediate Manual Processing Despite Technical Challenges
Case-Laws
GST
HC upheld Petitioner's entitlement to IGST refund for pharmaceutical product exports from July 2017 to April 2018. Despite technical processing challenges acknowledged by Respondents, the court mandated manual refund processing within two weeks, consistent with the earlier Refund Sanctioning Order. The technical impediment was deemed insufficient to obstruct the Petitioner's legitimate refund claim. Petition was consequently disposed of, directing immediate compliance by Respondents.
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Legal Challenge Upheld: Statutory Non-Compliance Invalidates Order When Demand Exceeds Show-Cause Notice Amount Under Section 75(7)
Case-Laws
GST
HC found a violation of Section 75(7) where the demand amount (Rs. 59,27,500/-) exceeded the show-cause notice amount (Rs. 28,15,200/-). Despite procedural irregularities in hearing scheduling, the court primarily focused on the statutory non-compliance. The impugned order was set aside, and the matter was remanded to the respondent to provide proper opportunity of hearing and issue a fresh order in accordance with legal provisions, thereby allowing the petition and ensuring procedural fairness.
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Accused Granted Bail in GST Evasion Case After Careful Review of Investigation Status and Potential Flight Risk
Case-Laws
GST
HC granted regular bail to the accused in GST evasion case, finding no immediate risk of witness tampering or flight. Despite documentary evidence of alleged offenses and ongoing investigation, the court noted the trial has not commenced, co-accused has been released, and maximum punishment is five years. Bail was sanctioned subject to furnishing bail bonds and surety bonds to the trial court's satisfaction, with standard conditional compliance requirements.
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Legal Challenge to CGST Act Section 16(2)(c) Succeeds: Procedural Delay Condoned, Appeal Merits to Be Evaluated Fairly
Case-Laws
GST
HC adjudicated constitutional challenge to Section 16(2)(c) of CGST Act, determining procedural validity regarding time limitation. The court directed the Appellate Authority to consider the petitioner's time spent before the court as bona fide and condone delay in appeal filing. The impugned Order-in-Appeal was quashed and set aside, with the matter remanded to the Appellate Authority for merit-based evaluation. The court explicitly instructed that the appeal shall not be rejected solely on grounds of procedural delay, effectively providing equitable relief to the petitioner and ensuring substantive hearing of the underlying dispute.
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Tax Order Quashed: Procedural Defects Invalidate Summary Dismissal of Petitioner's Challenge Under Section 73(9)
Case-Laws
GST
HC allowed the petition challenging a tax order under Section 73(9) of CGST Act, 2017. The court found the original order non-speaking and procedurally defective, as the tax officer summarily dismissed the petitioner's reply without substantive reasoning. The order was set aside, directing the tax authority to reconsider the matter and provide a proper hearing to the petitioner, ensuring principles of natural justice are upheld. The decision emphasizes the requirement for reasoned, transparent administrative actions in tax proceedings.
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Legal Relief Granted: GST Registration Restored After Director's Death and Incorrect Professional Guidance
Case-Laws
GST
HC held that petitioner's GST registration cancellation was amenable to relief based on genuine circumstances of director's demise and consultant's incorrect advice. The court directed petitioner to file all pending GST returns within 4 weeks of registration restoration, accompanied by complete tax dues, applicable interest, and belated filing fees. The judicial intervention effectively provided an opportunity for procedural compliance and rectification of administrative non-compliance, recognizing the extenuating circumstances that led to the initial default.
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HC grants interim stay on Rs 2,500 crore GST demand against Hindustan Coco-Cola Beverages
GST
Dated:- 4-4-2025
PTI
Mumbai, Apr 4 (PTI) The Bombay High Court has granted an interim stay on a GST demand of approximately Rs 2,500 crore against Hindustan Coca-Cola Beverages Private Limited noting the revenue department's interpretation of the provisions appeared “prima facie incorrect”.
The show cause notice was issued in January based on findings that the company undervalued goods over seven assessment years by offering retrospective discounts to distributors.
As per the authorities, the discounts were structured in a way that reduced the taxable value of the supplies.
Distributors first extended discounts to retailers, and Coca

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