Goods and Services Tax

Zero-Rated Exports: Merchant Exporters Win Relief from Compensation Cess, Ensuring Smooth Working Capital Flow Under GST
Case-Laws
GST
HC held that supplies to merchant exporters qualify as zero-rated export under IGST Act. While petitioners are technically liable to pay 160% Compensation Cess in absence of specific exemption notification, the court recognized this creates unnecessary working capital blockage. The levy is essentially revenue neutral since merchant exporters can claim full refund under sections 16 and 54(3) of GST Act. The matter was remanded to GST Council to consider granting exemption from Compensation Cess for export supplies, aligning with existing GST/IGST exemptions. Petition allowed with directions to review the Compensation Cess levy mechanism for export-oriented supplies.
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Fraudulent Tax Credit Claims Rejected: Partial Cooperation Insufficient to Secure Pre-Arrest Bail
Case-Laws
GST
HC denied pre-arrest bail application involving fraudulent Input Tax Credit (ITC) claims. Despite petitioner's partial cooperation with investigating authorities and appearing after interim bail, the court rejected the anticipatory bail. The court noted the prima facie evidence of ineligible ITC amounting to Rs. 3.42 Crores, which is below the Rs. 5 Crores threshold. The application was deemed non-maintainable, with a directive for the petitioner to fully cooperate in the ongoing investigation. The bailable nature of the offense and absence of immediate arrest risk were key considerations in the court's reasoning.
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Tax Fraud Writ Dismissed: High Court Upholds Rs. 56.2 Crore ITC Penalty Order Against 527 Firms for Contradictory Claims
Case-Laws
GST
HC dismissed writ petition challenging tax penalty order involving alleged fraudulent Input Tax Credit (ITC) of Rs. 56.2 crores across 527 firms. The Court found no violation of natural justice, noting the petitioner's contradictory statements and lack of arbitrary administrative action. The impugned order was deemed appropriate, with the Court declining to interfere under Article 226 jurisdiction, emphasizing the need for circumspection when large-scale tax fraud is alleged. Petition was consequently rejected, upholding the Department's findings and penalty order.
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Tax Authority's Power Affirmed: SGST Jurisdiction Validated Under Section 6(2)(b) for Comprehensive Tax Proceedings Review
Case-Laws
GST
HC determined the jurisdictional authority of SGST to initiate and adjudicate tax proceedings. The court held that under Section 6(2)(b) of CGST Act, the DGST Department must reconsider the prior appellate order and reassess the show cause notice and subsequent impugned order. The impugned order was set aside, with instructions to place the Commissioner's (Appeals-I) order before DGST for fresh consideration and comprehensive review of the underlying tax matter.
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Tax Authorities Cannot Double-Levy When Self-Assessed Returns Already Filed Under Section 37 of GST Act
Case-Laws
GST
HC held that Section 75(12) of WBGST & CGST Act, 2017 cannot be invoked when self-assessed tax under Section 37 is already included in returns under Section 39. The court quashed the demand notice raised by tax authorities, finding that alternative legal provisions under Sections 65, 66, 67, 73, or 74 should have been pursued if discrepancies were identified. The consequential demand for tax period 2020-21 was set aside, effectively ruling in favor of the petitioner and invalidating the original order dated 20th December, 2024.
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Taxpayer Wins Appeal: GST Return Filing Reinstated with Opportunity to Rectify Outstanding Tax Compliance
Case-Laws
GST
HC allows petitioner's appeal challenging registration cancellation, remanding matter to respondent at show-cause notice stage. Petitioner directed to file belated GST returns from April 2020 onwards, paying outstanding tax, interest, and penalties. Respondent-Authority must consider submitted returns, with discretion to pursue appropriate legal proceedings excluding non-filing of returns for over six months. Original cancellation order and subsequent appellate orders quashed, providing procedural relief while maintaining regulatory compliance obligations.
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GST Registration Dispute: Voluntary Compliance and Remedial Actions Prevail, Section 29(2)(c) Interpretation Highlights Procedural Flexibility
Case-Laws
GST
HC adjudicated a GST registration cancellation dispute, finding that while the petitioner initially failed to comply with statutory filing requirements under section 29(2)(c), subsequent remedial actions were significant. The court recognized the petitioner's voluntary compliance by paying outstanding GST, interest, and penalties, and demonstrating willingness to adhere to regulatory mandates. Consequently, the HC quashed the show cause notice and cancellation order, effectively reinstating the petitioner's registration, thereby balancing procedural compliance with principles of natural justice and providing an opportunity for rectification.
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GST Registration Restored: Procedural Flaws Invalidate Cancellation Order Despite Non-Compliance with Statutory Filing Requirements
Case-Laws
GST
HC quashed GST registration cancellation order due to procedural irregularities. Despite petitioner's non-compliance with GST Act by failing to file returns for six consecutive months, the court found a violation of natural justice principles. The petitioner demonstrated willingness to rectify defaults by paying outstanding GST, interest, and penalties. The court set aside the show cause notice and subsequent orders, effectively reinstating the petitioner's GST registration while mandating future compliance with statutory requirements.
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Tax Authority Ordered to Reconsider ITC Reversal Notice After Procedural Fairness Violation and Improper Double Recovery Attempt
Case-Laws
GST
HC held that the tax authority improperly issued a show-cause notice demanding reversal of Input Tax Credit (ITC) without considering the petitioner's prior voluntary reversal. The non-speaking order violated principles of natural justice by seeking double recovery of tax. The court remanded the matter, directing the authority to issue a fresh order focusing on potential interest or penalty for late ITC reversal, and provide the petitioner an opportunity to be heard. The order emphasizes procedural fairness and prevents excessive tax recovery, mandating a comprehensive review of actual tax compliance before imposing additional financial burden.
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Tax Appeal Dismissed: Case Remanded for Fresh Hearing with Full Opportunity to Present Evidence and Challenge Original Order
Case-Laws
GST
HC dismissed the appeal involving tax computation for the period 1st April 2018 to 31st March 2019, where the original order was passed ex parte due to non-response to show cause notice. Despite time limitation challenges, the court determined that remanding the matter to the appellate authority would be most appropriate. The HC noted the electronic availability of records and the potential for more efficient factual assessment by the appellate authority. Consequently, the petition was disposed of by remanding the case back to the appellate authority for substantive merit-based adjudication, effectively providing the petitioner an opportunity to present their case and challenge the original tax order.
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Accused Granted Bail Due to Procedural Lapses in Arrest, Violation of Constitutional Rights Highlighted in Detailed Order
Case-Laws
GST
HC granted bail to the petitioner after finding procedural irregularities in arrest. The court observed non-compliance with Sections 41/41A of Cr.P.C. and Sections 47/48 of BNSS, specifically the failure to communicate grounds of arrest and “reasons to believe” to the accused. Noting substantial investigation progress and unnecessary custodial interrogation, the court held that the arrest violated constitutional safeguards under Articles 21 and 22(1). The absence of Document Identification Number in authorization documents further strengthened the bail application. Bail was granted subject to standard conditions, emphasizing procedural compliance in law enforcement actions.
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Procedural Fairness Prevails: GST Appeal Overturned Due to Lack of Adequate Hearing Opportunity Under Section 107
Case-Laws
GST
HC held that principles of natural justice were violated as petitioner was not provided adequate opportunity of hearing. The appeal's rejection under Section 107 of GST Act was deemed improper due to procedural unfairness. The appellate authority's order dated 19.03.2024 and tax determination order dated 08.02.2021 were set aside. Petitioner was directed to submit detailed explanation within six weeks, and the authority was mandated to complete further proceedings within two months of receiving the explanation. Petition allowed with specific procedural directives.
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Job Work Classification Dispute Escalates: Technical Disagreement on GST Treatment Triggers Formal Appellate Review Under Section 98(5)
Case-Laws
GST
The AAR encountered conflicting interpretations regarding the classification of job work under Section 2(68) of the CGST Act and the nature of service supply under Section 7(1A) read with Schedule-II. Due to fundamental disagreements between authority members on the tariff classification and applicable GST rate, the matter was formally referred to the Appellate Authority in Jaipur as per Section 98(5) of the CGST Act, 2017, without reaching a definitive substantive ruling on the underlying legal questions presented by the applicant.
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Clarification on Late Fee for Delayed GSTR-9C: Comprehensive Calculation Under Section 47 with Waiver Provision for FY 2022-23
Circulars
GST – States
The GoK Commercial Taxes Dept clarified the late fee applicability for delayed FORM GSTR-9C submission. For annual returns where reconciliation statement (FORM GSTR-9C) is mandatory, late fee under KGST Act Section 47 will be leviable for the entire period from the original due date until complete annual return submission. Late fee is calculated comprehensively for both FORM GSTR-9 and FORM GSTR-9C, not separately. Additionally, a waiver notification exists for delayed filings up to FY 2022-23 if FORM GSTR-9C is submitted by 31st March 2025, with no refunds for previously paid late fees.
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Clarification regarding GST Tax Rates for Pepper, Raisins, Popcorn, Concrete Blocks, and Utility Vehicles Under Circular 38/2024
Circulars
GST – States
The Karnataka Commercial Taxes Dept. issued Circular No. GST-38/2024 clarifying multiple GST rate and classification issues based on the 55th GST Council meeting recommendations. Key clarifications include: (1) pepper of genus Piper attracts 5% GST, and agriculturists supplying dried pepper are GST-exempt; (2) agriculturists supplying raisins are GST-exempt; (3) ready-to-eat popcorn with salt/spices attracts 5-12% GST depending on packaging; (4) autoclaved aerated concrete blocks with >50% fly ash content fall under HS 6815; and (5) amended compensation cess for utility vehicles applies from 26.7.2023, with specific criteria for engine capacity, length, and ground clearance.
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HC Allows Tax Credit Appeal Despite Missing Docs, Affirms Right to Challenge Procedural Decisions Under Section 16(5)
Case-Laws
GST
HC held that the Petitioner's claim for Input Tax Credit (ITC) involving belated GST return filing under Section 16(5) of CGST Act, 2017 constitutes an appealable order per Section 107. The court determined that factual aspects regarding non-filing of returns and potential procedural deficiencies should be evaluated by the Appellate Authority. Despite absence of documentary evidence, the Petitioner was granted permission to pursue appellate remedy, effectively allowing further judicial review of the tax credit claim through appropriate legal channels.
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Seized Goods Held Pending Investigations: Departments Must Notify Petitioner and Preserve Evidence Without Immediate Release
Case-Laws
GST
HC adjudicated a petition regarding illegal seizure of goods, finding that ongoing investigations by GST and Income Tax Departments preclude immediate release. The court directed: (i) Departments must provide notice to Petitioner of proceedings, (ii) Petitioner may seek goods' release through statutory provisions under CGST Act or Income Tax Act, and (iii) Departments shall not dispose of seized goods until investigations and adjudication are completed. The court explicitly noted no examination of case merits and disposed of the petition, enabling Petitioner to pursue administrative remedies for potential goods' release.
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Bail Upheld in Massive Tax Refund Fraud Case Despite Allegations of Fraudulent Claims Exceeding 63 Crores
Case-Laws
GST
HC dismissed the petition seeking recall of bail in a fraudulent IGST refund case. The respondent, arrested for allegedly claiming fraudulent tax refund exceeding 63 crores, was granted bail by the MM after careful consideration of facts. The court found no justification to interfere with the bail order, noting that previous prosecutions were primarily for non-appearance under IPC Sections 174, 175, and no formal complaint had been filed. The ASJ had already evaluated the respondent's prior involvement, and the Department failed to demonstrate any improper exercise of judicial discretion. Consequently, the petition challenging the bail order was rejected.
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High Court Suspends GST Recovery Demand, Grants Interim Relief and Allows Affidavit Filing by End of Year
Case-Laws
GST
HC granted interim relief in GST recovery matter, staying demand order until end of December 2025. The court recognized a prima facie case raised by petitioner and allowed filing of affidavit-in-opposition within four weeks, with potential reply within subsequent three weeks. Jurisdictional challenge accepted, with liberty to mention after affidavit exchange period. Interim order aligns with previous judicial precedent in similar matter, providing temporary suspension of recovery proceedings pending final adjudication.
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High Court Clarifies: Lessee's Industrial Land Rights Transfer Not Taxable Under GST, Exempting Lump Sum Property Assignments
Case-Laws
GST
HC held that assignment of leasehold rights for industrial land by a lessee to a third party for a lump sum consideration does not constitute a supply under GST provisions. The court determined that Section 7(1)(a) of the GST Act, read with Schedule II, Clause 5(b) and Schedule III, Clause 5, does not attract GST levy for such transactions involving transfer of immovable property rights. Following the precedent set in a prior Gujarat HC decision, the court recognized this as a significant legal issue affecting multiple pending petitions, effectively providing relief to industrial land lessees by exempting such assignments from GST taxation.
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Fortis Trademark Auction Validated: FHL Secures Rights at Rs 200 Crores, Overcoming Legal Challenges and Valuation Objections
Case-Laws
GST
HC held that the auction sale of the Fortis trade mark was valid and fair. The court confirmed the sale to FHL at Rs 200 Crores, rejecting objections to the valuation and auction process. Section 92 of CGST Act was deemed inapplicable to the court auctioneer. Upon sale confirmation, FHL shall become the trade mark owner with full rights, authorized to seek transfer in the trade mark registry. The court directed parties to comply with GST laws and compliance requirements. The sale proceedings will be listed before the Joint Registrar for final confirmation, subject to balance amount payment, with further directions possible if needed.
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Statutory Remedy Under CGST Act Precludes Writ Petition, Emphasizing Exhaustion of Administrative Remedies First
Case-Laws
GST
HC dismissed the writ petition for lack of maintainability, holding that an alternate statutory remedy exists under the CGST Act, 2017. The court emphasized the rule of exhausting statutory remedies before invoking extraordinary writ jurisdiction under Article 226. The detailed show cause notice served to the petitioner demonstrated procedural compliance, and no exceptional circumstances warranted judicial intervention. The court clarified that alternate remedy is not an absolute bar to writ petition, but in this instance, the petition was deemed non-maintainable without expressing opinions on the substantive merits of the case.
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Tax Fraud Exposed: Systematic Evasion Through Fake Invoices Leads to Denial of Pre-Arrest Bail Under GST Regulations
Case-Laws
GST
HC denied pre-arrest bail in tax fraud case involving fraudulent ITC claims. Evidence prima facie indicated petitioner's proprietorship of enterprise generating fake GST invoices without actual goods/services supply. Despite prior interim protection and multiple notices, petitioner remained evasive and untraceable. Court determined petitioner was deliberately circumventing legal proceedings and misusing interim bail concessions. Consequently, the bail petition was summarily dismissed, rendering petitioner vulnerable to potential arrest and prosecution for systematic tax evasion through fabricated documentation.
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Thane businessman duped of Rs 4.5 cr in GST fraud
GST
Dated:- 12-5-2025
PTI
Thane, May 12 (PTI) A 60-year-old businessman from Maharashtra's Thane city was allegedly duped of Rs 4.5 crore by a man who carried out transactions through his company and evaded payment of Goods and Services Tax (GST), police said on Monday.
Based on a complaint, the police registered a case under sections 318(4) (cheating), 336 (forgery) and other relevant provisions of the Bharatiya Nyaya Sanhita and IT

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Challenging GST Assessment: Stone-Boulder Sales Price Comparison Invalidated Under Section 61 of Jharkhand GST Act
Case-Laws
GST
HC held that GST-ASMT-10 notices issued under Section 61 of Jharkhand GST Act, 2017 comparing petitioners' stone-boulder sales price with market price are ultra vires and without jurisdiction. The court determined that merely selling goods at a lower than market price does not automatically constitute a taxable discrepancy. The notices were deemed improper as they exceeded statutory powers, and the court quashed the notices, effectively ruling in favor of the petitioners by invalidating the tax department's assessment approach.
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