Goods and Services Tax

Detenue held in illegal custody beyond 24-hour limit violating Article 22 fundamental rights
Case-Laws
GST
HC found that the detenue was held in illegal custody by respondents beyond the constitutionally mandated 24-hour period, violating Article 22 fundamental rights. The detenue was arrested at 12:02 PM on 04.06.2025 but produced before the jurisdictional Magistrate only at 9:25 PM on 05.06.2025. The court issued show cause notice to respondents for potential contempt proceedings rega

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GST appeal delay can be condoned under Section 5 of Limitation Act when sufficient cause shown
Case-Laws
GST
The HC set aside the appellate authority's order dismissing a GST appeal filed beyond the prescribed four-month limitation period under Section 107(4) of CGST Act, 2017. The Court held that Section 5 of the Limitation Act, 1963 applies for condonation of delay in GST appeals, as it has not been expressly or impliedly excluded by Section 107 of the CGST Act. Following established

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Bail granted to accused in CGST evasion case upheld after chargesheet filing constituted material change in circumstances
Case-Laws
GST
HC dismissed petition seeking recall of bail order granted to respondent charged with CGST evasion worth crores. Petitioner argued bail was granted merely one month after rejection of second application without changed circumstances. HC held filing of chargesheet constituted material change in circumstances, shifting considerations from investigation co

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Petition seeking recall of bail order in Input Tax Credit fraud case dismissed for lack of merit
Case-Laws
GST
The HC dismissed a petition seeking recall of a bail order in a case involving fraudulent availing of Input Tax Credit through ineligible invoices. The court distinguished between challenging bail orders on merits versus cancellation for condition violations, noting that recall requires demonstrating improper exercise of discretion while cancellation involves breach of bail con

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AAR exempts subsidised canteen charges from GST under Factories Act statutory obligations framework
Case-Laws
GST
AAR ruled that subsidised canteen charges for both regular and contract employees are exempt from GST under statutory obligations framework. The Factories Act mandates canteen facilities for all workers, including contract labour, without distinction. Per CBIC Circular No. 172/04/2022-GST, perquisites provided under contractual obligations arising from statutory mandates do

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Registration cancellation overturned as suspension prevents tax recovery without evidence of evasion practices
Case-Laws
GST
The HC set aside the cancellation order dated 6th August 2024 and the subsequent appellate order dated 21st March 2025, restoring the petitioner's registration. The court found that while registration was cancelled for non-filing of returns, there was no evidence of dubious tax evasion practices. Emphasizing that suspension would be counterproductive to revenue in

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GST officer's tax determination invalid due to improper show cause notice and denial of hearing opportunity under Section 73 and 75
Case-Laws
GST
The HC set aside the impugned order dated 19.12.2023, finding violations of natural justice principles and statutory requirements. The court held that the Proper Officer failed to issue a valid show cause notice under Section 73, as the summary in GST DRC-01 cannot substitute for a proper SCN. The determination of tax and attached order were d

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Electronic Credit Ledger blocking order quashed under Rule 86A for violating natural justice principles
Case-Laws
GST
The HC quashed the order blocking petitioner's Electronic Credit Ledger under Rule 86A, finding violation of natural justice principles. The court held that respondents failed to provide pre-decisional hearing and the impugned order lacked independent reasons to believe, impermissibly relying on borrowed satisfaction from enforcement authority reports. Following preceden

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Writ petition dismissed as effective statutory appeal remedy available to Commissioner Central Tax Appeal
Case-Laws
GST
The HC dismissed the petition on maintainability grounds, holding that an effective alternate remedy existed through statutory appeal to the Commissioner, Central Tax (Appeal) against the adjudicating authority's order. While acknowledging that the rule against entertaining Article 226 petitions when statutory appellate remedies are available is not rigid and exception

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Petitioner gets partial relief as penalty under Section 74 GST requires fresh consideration after amnesty settlement
Case-Laws
GST
The HC disposed of the petitioner's challenge to an assessment order after the petitioner discharged tax liability and interest under an amnesty scheme settlement. The court balanced revenue and petitioner interests by remitting the matter to the first respondent for reconsideration of the penalty imposition under Section 74 of the GST enactment only. While

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GST Section 129 penalty reduced for technical breach, export incentives allowed despite procedural violations
Case-Laws
GST
The HC allowed the writ petition concerning GST penalty under Section 129. The petitioner had violated prescribed conditions but had voluntarily paid the penalty and successfully exported goods. The court determined that while the petitioner was liable for proceedings under Section 129, a lesser penalty was justified. The HC held that export incentives cannot be de

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HC quashes dismissal of ITC rectification application under Section 16 TNGST/CGST Act directing fresh consideration
Case-Laws
GST
HC allowed the writ petition challenging dismissal of rectification application concerning ITC entitlement under TNGST/CGST Act 2017. Court found petitioner established prima facie case for interference, noting amendments to Section 16 and potential limitation issues under Section 14 of Limitation Act 1963 favoring petitioner. HC observed respondent summarily

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Revenue authority's rejection of rectification application quashed due to factual error about petitioner's timely response
Case-Laws
GST
HC quashed the impugned order rejecting petitioner's rectification application due to procedural error. The revenue authority incorrectly stated petitioner failed to reply to show cause notice, despite petitioner's timely response dated 22.01.2025 being duly acknowledged in Form GST DRC 06. Court found petitioner established grounds for judicial interf

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GST assessment orders upheld despite claimed clerical errors causing Rs 4.41 crore turnover suppression
Case-Laws
GST
The HC dismissed a writ petition challenging GST assessment orders under Section 73(9) CGST/BGST Act, 2017. The petitioner claimed clerical errors caused turnover suppression totaling Rs.4,41,27,934.50 across December 2018 and January 2019 returns, with mismatches between GSTR-3B and GSTR-1 filings. The assessing authority quantified liability for suppressed turnover, wr

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Tax authority order set aside for failing to credit 58% differential amount remitted through electronic ledger
Case-Laws
GST
The HC set aside the tax authority's order dated 07.05.2024 confirming the entire original tax demand against the petitioner. The court found that the impugned order failed to consider that petitioner had remitted 58% of the differential amount through electronic credit ledger debit. The HC held that no credit was given for this substantial remittance, necessitati

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Plastic Rooter Trainer Cups classified under CTH 3926 90 99 not HSN 8201 90 00, GST rate 18%
Case-Laws
GST
The AAR classified plastic Rooter Trainer Cups used for plant propagation under CTH 3926 90 99 rather than HSN 8201 90 00. The Authority determined that since the product is manufactured from plastic, it falls under Chapter 39 “Plastics and Articles thereof” of the Customs Tariff. The cups did not qualify under any specific 4-digit headings within Chapter 39, thus falling under the

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Auctioneer's commission on cardamom auctions liable to GST despite exemption claims for agricultural commission agents
Case-Laws
GST
The AAR held that commission earned by an auctioneer for conducting cardamom auctions is liable to GST at applicable rates. The applicant provided comprehensive services including storage, grading, pooling cardamom from different origins, and converting them into auction lots, beyond merely facilitating sales. The Authority rejected the argument that “auct

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Assessment order set aside for violating natural justice despite GST Portal service under Section 169
Case-Laws
GST
The HC set aside the respondent's assessment order dated 06.02.2025 for violating principles of natural justice. Although the show cause notice was uploaded on the GST Portal, the petitioner claimed non-awareness and lack of personal hearing opportunity. The Court held that while portal service is sufficient, the officer should have explored alternative service modes under

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Medical officer leave fees non-taxable under GST but inspection fees from institutions attract 18% GST under Section 7
Case-Laws
GST
The AAR held that fees collected from medical officers for Leave Without Allowance do not constitute taxable supply under GST. Such fees arise from employer-employee relationships governed by service rules and serve as administrative deterrent measures rather than consideration for services rendered. No contractual obligation exists to provide goods or ser

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Third-party marketing organization denied GST exemption on yoga course fees due to failure proving pure agent status under Rule 33.
Case-Laws
GST
AAR held that third-party organization marketing exempted yoga courses cannot claim GST exemption on yoga course fees collected on behalf of yoga institutions. While Rule 33 CGST Rules 2017 permits exclusion of amounts collected by pure agents, applicant failed to provide documentary evidence establishing compliance with mandatory conditions i

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AAR clarifies GST exemption for medical supplies depends on composite supply bundling with healthcare services
Case-Laws
GST
The AAR ruled on GST exemption applicability for medical supplies under N/N. 1/2017-Central Tax (Rate). For inpatients, medicines and medical supplies naturally bundled with healthcare services qualify as composite supply, making the entire transaction GST-exempt under Entry 74 of Notification 12/2017. For outpatients receiving treatment within hospital premises (

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Purified drinking water supplied via tanker lorries qualifies for GST exemption under Serial No. 99
Case-Laws
GST
AAR ruled that potable drinking water supplied through tanker lorries to government institutions and private customers qualifies for GST exemption under Serial No. 99 of Notification 02/2017-Central Tax (Rate). The applicant collected water from wells, conducted purification through filtration and chlorination to meet drinking water standards, and supplied in bulk quantities

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Proportionate refund from cancelled pre-GST lease agreement not taxable under GST as no supply involved
Case-Laws
GST
AAR held that proportionate refund received by the applicant upon cancellation of a pre-GST lease agreement is not taxable under GST. While property leasing constitutes supply of service, lease cancellation itself does not constitute taxable activity under CGST Act. Relying on CBIC Circular No. 178/10/2022-GST regarding coal block cancellation compensation, AAR determine

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Street lighting repair and maintenance services to Municipality qualify for GST exemption under Notification 12/2017-Central Tax
Case-Laws
GST
AAR ruled that the applicant's street lighting repair and maintenance services provided to Kayamkulam Municipality qualify for GST exemption under Serial No. 3A of Notification 12/2017-Central Tax (Rate). The Municipality constitutes a local authority under Section 2(69) of CGST Act, 2017, as defined in Article 243P of the Constitution. Since the

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GST registration cancellation quashed due to vague show cause notice violating natural justice under Section 29(2)(e)
Case-Laws
GST
HC set aside petitioner's GST registration cancellation under Maharashtra Goods and Services Tax Act, 2017, allowing the writ petition despite availability of alternative remedy. The show cause notice was deemed vague and deficient for merely citing Section 29(2)(e) regarding fraud, willful misstatement or suppression of facts without specifying the alleged

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