Goods and Services Tax

GST Appellate Tribunal Procedure Rules 2025 Streamline Dispute Resolution with Electronic Filing and Clear Judicial Protocols
Notifications
GST
The GSTAT Procedure Rules, 2025 comprehensively regulate the procedural framework for the Goods and Services Tax Appellate Tribunal, establishing comprehensive guidelines for filing appeals, conducting hearings, maintaining records, and managing tribunal proceedings. Key provisions include electronic filing mechanisms, detailed procedural requirements for appeals, standards for document submission, rules governing authorized representatives, and protocols for case disposal. The rules emphasize transparency, efficiency, and structured judicial processes, providing a systematic approach to resolving GST-related disputes through a specialized appellate mechanism with clearly defined operational parameters.
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Taxpayer Challenge Rejected: Rule 86A(1)(a) Upholds ITC Blocking with Procedural Safeguards for Administrative Review
Case-Laws
GST
HC upheld the blocking of Input Tax Credit (ITC) under Rule 86A(1)(a) of Bihar GST Rules, 2017, finding sufficient material justifying the interim measure. The court confirmed the administrative order's validity while preserving the taxpayer's procedural remedy to challenge the ITC blockage. The respondent was directed to expeditiously consider and pass a reasoned order if the petitioner submits a request, ensuring principles of natural justice are maintained during the administrative process. Application disposed of with procedural guidance for potential future challenges.
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Tax Refund Challenge Rejected: Petitioner Must First Exhaust Statutory Appeals Under Section 107 of CGST Act
Case-Laws
GST
HC dismissed the writ petition challenging tax refund rejection, holding that the petitioner must first exhaust statutory appellate remedies under Section 107 of CGST Act before seeking judicial intervention. The court found the challenge premature, as the underlying adjudication order comprehensively addressed factual issues. The petitioner was directed to pursue the prescribed administrative appeal mechanism, thereby maintaining procedural propriety and preventing premature judicial interference in tax dispute resolution.
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GST Assessment Order Valid: Statutory Time Limit Extended Through Government Notifications for Fiscal Year 2017-18
Case-Laws
GST
HC held that the assessment order dated 13.12.2023 was not time-barred due to successive government notifications extending the statutory time limit for GST assessment proceedings for FY 2017-18. Specifically, notifications dated 21.07.2022 and 24.04.2023 extended the time limit to 31.12.2023, rendering the impugned order legally valid. Since the order was passed within the extended timeline and the notifications were not challenged, the writ petition was deemed non-maintainable, with the statutory remedy of appeal being the appropriate recourse. Consequently, the HC dismissed the petition.
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Goods Seized After Supplier Proves Non-Existent, GST Proceedings Upheld Under Section 130 with Full Legal Validity
Case-Laws
GST
HC dismissed the petition challenging GST proceedings involving goods transportation. The court found that the supplier (M/s. Sunrise Enterprise) was a non-existent entity, and the petitioner obtained goods with a bill from an invalid supplier. Based on physical verification confirming the supplier's non-existence, the court upheld the confiscation of goods under Section 130 of the GST Act. Neither the goods supplier nor the truck owner attempted to secure release, leading to the petition's rejection and maintaining the original GST authority's order.
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Corporate Debt Resolution Shields Restructured Company from Post-Approval Tax Demands Under Insolvency and Bankruptcy Code
Case-Laws
GST
HC ruled that additional tax demands against the corporate debtor (CD) after NCLT's Resolution Plan approval are invalid. The court held that post-resolution plan claims by creditors would impede the implementation of the approved restructuring process. Specifically, assessment orders and demand notices for tax years 2012-13, 2013-14, and 2017-2018 were quashed. The fundamental legal principle affirmed is that once an NCLT-approved Resolution Plan is in place, subsequent creditor claims are precluded to ensure a clean slate for corporate revival. The petition was consequently allowed, protecting the integrity of the insolvency resolution mechanism under the IBC.
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Legal Service via Common Portal Under GST Act Section 169(1)(d) Deemed Valid, Ex Parte Orders Set Aside with Partial Tax Deposit Requirement
Case-Laws
GST
HC held that service of notices via common portal under Section 169(1)(d) of GST Act constitutes sufficient legal service, despite potential ineffectiveness. While respondents adopted an alternative service mode, they failed to ensure effective communication. The ex parte assessment orders were set aside, with fault attributed to both parties. The matter was remanded to the Assessing Officer, with petitioner directed to deposit 10% of disputed tax within four weeks, effectively providing an opportunity for reassessment while ensuring partial tax compliance.
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Leasehold Rights Transfer for Lump-Sum Payment Exempted from GST Under Section 7(1)(a) of CGST Act
Case-Laws
GST
HC held that assignment of leasehold rights of an industrial plot by a lessee to a third party for a lump-sum consideration does not constitute a supply under GST regulations. The court determined that such a transaction involving transfer of immovable property benefits falls outside the scope of Section 7(1)(a) of CGST Act and is not subject to CGST levy under Section 9. The court consequently invalidated the Show Cause Notice issued to the petitioner, effectively ruling in favor of the petitioner and exempting the transaction from GST implications.
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GST Rate Dispute: Works Contract Services Remain at 18% Based on Tender Submission Date and Prevailing Tax Conditions
Case-Laws
GST
HC dismissed the petition regarding GST rate applicability. The court held that the GST rate for works contract services remained 18% at the time of tender submission, as per SRO-GST-11 dated 8th July, 2017. The subsequent notification reducing the rate to 12% on 21st September 2017 would apply prospectively. Special Condition 49 stipulates that tender rates are inclusive of taxes prevailing on the last date of tender receipt. The court found no grounds to apply the reduced GST rate retrospectively, emphasizing that the original 18% rate was applicable when the tender was submitted. The petition lacks merit and was consequently dismissed.
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Tax Credit Saved: Technical Error Can't Block Legitimate Claim When Substantive Rights Are Clear and Verifiable
Case-Laws
GST
CESTAT allowed appellant's appeal, holding that transitional service tax credit of Rs. 6,15,409/- is admissible despite procedural error in form TRAN-1. The tribunal determined that technical glitch in entering data at incorrect serial number does not vitiate substantive rights. Revenue directed to treat data entered at Sr. No. 5 as equivalent to entry at Sr. No. 11, recognizing that procedural infirmities cannot defeat legitimate tax credit entitlement under Section 142(11)(c) and Rule 118 of CGST Rules, 2017. The core principle affirmed is that substantial rights supersede minor procedural non-compliance in tax credit transition.
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Syndicate Operator Denied Bail in Rs.56.78 Crore GST Evasion Case Involving Online Gaming Platforms
Case-Laws
GST
DSC denied bail in GST evasion case involving online money gaming platforms. The accused, identified as a key operator in a syndicate, allegedly evaded approximately Rs.56.78 Crore in GST through clandestine online services. Court emphasized economic offences are gravest societal crimes, noting critical investigation stage and potential risk of accused misusing liberty if released. Substantial incriminating evidence, including third-party payment app usage and unissued invoices, substantiated Department's allegations. Given offense's significant economic impact and ongoing investigation, bail application was conclusively rejected.
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Tax Credit Fraud Syndicate Exposed: Systematic Fake ITC Scheme Unravels with Overwhelming Forensic Evidence of Rs. 15 Crore Fraud
Case-Laws
GST
DSC dismisses anticipatory bail application involving systematic tax credit fraud. Investigation revealed a complex nexus of fictitious firms (M/s Khwaish Enterprise, M/s Sunrise Enterprises, M/s AC Goel Tradelinks) systematically generating fake Input Tax Credit (ITC) without actual goods supply. Forensic analysis of GSTR-2A records demonstrated over 90% fraudulent transactions, with cumulative fake ITC estimated at approximately Rs. 15 crores. Key accused, who failed to cooperate with investigation despite multiple summons, was determined to be a critical syndicate member. Court found substantial evidence of deliberate tax evasion and economic fraud, consequently rejecting anticipatory bail application.
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Electronic Service via Common Portal Legally Valid Under GST Act, Section 169(1)(d) Enables Direct Digital Notification Without Additional Requirements
Case-Laws
GST
HC held that service of notice/order via common portal is valid under GST Act. Section 169(1)(d) independently provides for electronic service through common portal, without requiring additional notification under Section 146. The statutory provision explicitly enables serving decisions, orders, summons, and notices electronically. The petitioner's contention challenging portal-based service was rejected. The court set aside impugned orders, directing petitioner to deposit 25% of disputed taxes within four weeks. The judgment affirms the legal validity of electronic service mechanisms in GST proceedings.
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Supplier Status Challenge: GST E-Way Bill Penalty Reduced from Rs.7,36,490 to Rs.25,000 Under Section 2(105)
Case-Laws
GST
HC ruled that the petitioner, not being a 'supplier' under GST Act Section 2(105), was improperly penalized Rs.7,36,490/- for failing to generate Part-B of E-Way Bill during goods transportation for job work. The court found the penalty disproportionate, considering the petitioner had generated Part-A of E-Way Bill and provided a valid Delivery Challan. The impugned order was modified, reducing the penalty to Rs.25,000/- and directing respondents to refund the excess amount through Electronic Cash or Credit Ledger, thereby partly allowing the petition and rectifying the unjustified punitive action.
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IGST Refund Dispute Remanded: Tax Authority Must Provide Hearing and Reconsider Order Under Rule 96B
Case-Laws
GST
HC remanded the matter concerning IGST refund dispute, setting aside the Deputy Commissioner's order dated 30.08.2024. The court directed the petitioner to file response to the show cause notice by 02.05.2025, mandating the tax authority to provide personal hearing and issue a fresh order in compliance with legal principles. While rejecting jurisdictional challenges, the court set aside the demand order under Rule 96B due to non-retrospective application and insufficient administrative consideration, effectively providing the petitioner an opportunity to present legal arguments before the tax authority.
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Zero-Rated Services Refund Upheld: Registration Gaps Cannot Block Input Tax Credit Claim Under Sections 54(1) and 16(3)
Case-Laws
GST
HC allows petitioner's claim for input tax credit (ITC) refund on zero-rated services, holding that registration without specific service category details does not invalidate refund eligibility. The court interpreted Sections 54(1) and 16(3) of CGST and IGST Acts harmoniously, determining that a registered person can claim refund irrespective of service category omissions in registration application. The court directed the tax authority to verify and process the ITC refund claim, setting aside previous rejection orders and emphasizing procedural flexibility in tax credit claims.
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Criminal Proceedings Under CGST Act Require Prudent Evaluation of Evidence and Proportionality Before Arresting Taxpayers
Case-Laws
GST
HC held that CGST authorities must exercise prudence before initiating criminal proceedings against a taxpayer. In this case, the arrest for alleged fraudulent Input Tax Credit was premature and disproportionate, as no prior adjudication or quantified demand under Section 74 of CGST Act was established. The court emphasized that government authorities must balance revenue protection with protecting taxpayers' reputation and personal liberty. Considering the lack of evidence tampering risk and petitioner's cooperation, the court granted bail with two sureties of Rs. 10,000 each, subject to ACJM Siliguri's satisfaction, effectively ruling the arrest was unwarranted and procedurally flawed.
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Leasehold Rights Transfer of Industrial Plot Not Taxable Under GST, Exempt from Levy per CGST Act Provisions
Case-Laws
GST
HC ruled that assignment of leasehold rights for an industrial plot, involving transfer of land and constructed buildings to a third party for a lump-sum consideration, does not constitute a taxable supply under GST regulations. The court determined that Section 7(1)(a) of CGST Act, read with Clause 5(b) of Schedule II and Clause 5 of Schedule III, shall not apply to such transactions. Consequently, the transfer is exempt from CGST levy under Section 9 of the CGST Act. The judgment effectively clarifies the tax treatment of leasehold rights transfer in industrial land allocation scenarios, providing significant relief to lessees undertaking such property assignments.
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GST Registration Cancellation Voided: Procedural Fairness Demands Proper Hearing and Opportunity to Defend Business Interests
Case-Laws
GST
HC ruled that due to the death of key business principals and potential violation of natural justice principles, the GST registration cancellation proceedings against the Petitioner were procedurally flawed. The Court set aside the impugned order, remanded the matter to the adjudicating authority, and directed the Petitioner be granted a substantive opportunity to defend itself, including filing a reply within 30 days and receiving a personal hearing on merits.
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Tax Appeal Allowed Beyond Limitation Period: Exceptional Relief Granted Based on Delayed Knowledge and Statutory Compliance
Case-Laws
GST
HC granted relief to the Petitioner by permitting an appeal against the tax demand of Rs. 7,88,611/- beyond standard limitation period. Despite not interfering with the original order, the Court recognized the Petitioner's claim of delayed knowledge and allowed appeal filing subject to mandatory pre-deposit requirements under Section 107 of CGST Act. The decision effectively provides an exceptional opportunity to challenge the impugned order on substantive merits, while maintaining procedural compliance with statutory timelines and tax regulations.
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Retrospective Penalty Under Section 122(1A) Challenged: Legal Challenge Highlights Potential Procedural Irregularity in Statutory Application
Case-Laws
GST
HC granted ad-interim relief to petitioners challenging retrospective application of penalty under Section 122(1A). The court found a prima facie case exists, noting the statutory provision was enacted on 1 January 2021 but sought to impose penalties for period prior to enforcement (July 2017 to December 2020). The court's interim order suggests substantial merit in petitioners' arguments, referencing a prior judicial precedent. Balance of convenience favors petitioners, indicating potential procedural irregularity in retrospective penalty imposition. Petition disposed with interim relief granted.
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High Court Quashes GST Registration Cancellation Order for Deceased Taxpayer's Heir Due to Lack of Substantive Evidence
Case-Laws
GST
HC allowed the petition challenging a GST registration cancellation order under section 93(1)(a) of CGST Act, 2017. The order against a deceased taxpayer was deemed perverse and unsustainable, as the respondent failed to provide material evidence demonstrating the petitioner's continued operation of the deceased father's proprietary concern after obtaining a fresh registration. The court found no substantive basis for holding the petitioner liable for the deceased's tax obligations, effectively nullifying the impugned order without establishing legal continuity of business operations.
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Judicial Intervention Halts Tax Penalty Enforcement, Mandates Goods Release and Security Compliance Under Section 112
Case-Laws
GST
HC held that the appeal against the Additional Commissioner's order under Section 112 of UPGST Act, 2017, cannot be immediately adjudicated due to non-constitution of appellate tribunal. The penalty order is stayed, and seized goods shall be released subject to compliance with Rule 140 of CGST Rules, 2017. The previously deposited penalty amount shall be adjusted against security requirements. The modification application was allowed, providing interim relief to the petitioner pending tribunal formation.
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Landmark CGST Act Amendment: Interim Deposit Reduced from 20% to 10% Under Finance Act, 2024 Provisions
Case-Laws
GST
HC modified its prior interim order regarding CGST Act amendment, reducing the mandatory deposit from twenty percent to ten percent as per the Finance (No. 2) Act, 2024. The court interpreted Section 112(8) and Section 143, concluding that the statutory amendment directly impacts the interim deposit requirement. Consequently, the original direction for twenty percent deposit shall now be construed as a ten percent deposit, effectively aligning with the recent legislative modification. Application disposed of with consequential relief.
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Corporate Insolvency Resolution Plan Bars Pre-Approval Tax Proceedings, Extinguishing Dues and Preventing New Recovery Attempts Under Section 31(1)
Case-Laws
GST
HC held that once a Resolution Plan is approved under IBC Section 31(1), only debts specified in the plan remain payable, binding on all authorities. Tax proceedings relating to the period prior to plan approval stand extinguished. The impugned show cause notice and order under Section 73 of CGST Act for Financial Year 2019-20, issued after the Resolution Plan's approval on 26.10.2020, were deemed invalid and without jurisdiction. Consistent with Supreme Court precedent, the tax authorities cannot initiate or continue proceedings for pre-resolution plan dues. The petition was allowed, quashing the impugned SCN and order, effectively recognizing the clean slate principle post-corporate insolvency resolution process.
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