Goods and Services Tax

Secured creditors have priority under Section 26E SARFAESI Act over CGST dues for asset recovery
Case-Laws
GST
The HC held that under Section 26E of the SARFAESI Act, the secured creditor possesses priority over the secured asset concerning recovery of dues. Since the secured creditor had not taken possession of the property, the CGST authorities were justified in attaching the asset. Despite the admitted outstanding dues owed to both the CGST authorities and the secured creditor, the court allowed the secured creditor to proceed with enforcement against the secured asset. The ruling clarified that the CGST authorities' right to recover dues is subordinate to the secured creditor's interests, who must maintain transparent accounting and share transaction details with the CGST authorities. The court referred to established precedent confirming that statutory dues under other enactments, such as the MSMED Act, do not confer similar priority rights. The petition was accordingly disposed of.
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Refund of input tax credit limited to tax rate on principal input under Section 54(3)(ii) and Circular 135/05/2020
Case-Laws
GST
The HC held that the refund of input tax credit is limited to the tax rate applicable on the principal input, specifically crude sunflower oil. Relying on precedent, the Court affirmed that Circular No. 135/05/2020 applies only where input tax credit accumulation arises from a reduction in tax rates. The Court further concluded that the petitioner is not entitled to a refund under Clause (ii) of Sub-section (3) of Section 54 when the input and output supplies are identical. This interpretation aligns with the legal principles established in a prior HC ruling involving a similar issue. Consequently, the petition was allowed, confirming that refund claims must adhere strictly to the statutory and circular provisions governing input tax credit refunds.
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Ex-Parte Assessment Order Quashed for Violating Natural Justice Under Section 75(4) BGST Act 2017
Case-Laws
GST
The HC held that the impugned ex-parte assessment order violated principles of natural justice due to non-compliance with Section 75(4) of the BGST Act, 2017, as no opportunity for personal hearing was granted. The show cause notice failed to specify the date, time, and venue for personal hearing, which is mandatory and cannot be left to the petitioner to choose. Additionally, mere uploading of proceedings on the portal without serving notice through at least two prescribed modes under Section 169 was held insufficient. The court set aside the impugned actions and directed the competent authority to schedule a personal hearing with proper notice specifying date, time, and venue, ensuring adherence to statutory procedural safeguards. The petition was allowed accordingly.
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Writ Petition Dismissed on GST Registration Cancellation Under Section 73; Appeal Allowed for Interest and Penalty Issues
Case-Laws
GST
The HC dismissed the writ petition challenging the cancellation of registration under section 73 of the GST Act, 2017. The court held that the petitioner's admission and payment of the tax demand precluded relief on that ground. However, issues regarding interest and penalty may be contested through an appeal under section 107 of the Act, as no justification was shown for bypassing this statutory remedy. The petitioner was permitted to pursue such an appeal in accordance with law.
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Orders invalidated due to missing signatures on DRC-07, mandatory under statutory execution rules
Case-Laws
GST
The HC held that the impugned orders were vitiated due to the absence of signatures on the DRC-07 document, which is a statutory requirement. The court emphasized that when a statute prescribes a specific mode of execution, compliance with that mode is mandatory, and any deviation renders the act invalid. The lack of signatures on DRC-01 and DRC-07 could not be overridden by explanations in the counter affidavit or notes. Consequently, the petition challenging the orders was disposed of in favor of the petitioner, affirming that non-compliance with statutory formalities invalidates the impugned orders.
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Petition Dismissed for Bypassing Mandatory Pre-Deposit Requirement Under Article 226 Jurisdiction
Case-Laws
GST
The HC dismissed the petition, emphasizing the availability of an alternative and efficacious statutory remedy which the petitioner failed to utilize. The court held that the petitioner's attempt to circumvent the mandatory pre-deposit requirement for instituting an appeal was unjustified. The HC reaffirmed the principle that extraordinary jurisdiction under Article 226 cannot be exercised to bypass prescribed statutory procedures unless stringent conditions, as established by precedent, are met. The decision aligns with the SC's recent stance that statutory remedies should not be circumvented through constitutional petitions, thereby upholding the integrity of the statutory appeal process.
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Failure to allow cross-examination under CGST Act violates natural justice, tax and penalty set aside, case remanded
Case-Laws
GST
The HC held that the failure to provide the petitioner the opportunity to cross-examine witnesses whose statements were relied upon under the CGST Act violated the principles of natural justice. Cross-examination, as mandated by the Evidence Act and affirmed by the Apex Court, is integral to ensuring a fair hearing. Consequently, the court set aside the levy of tax and penalty and remanded the matter back to the authority for further proceedings, specifically directing that cross-examination be allowed. The writ petition was disposed of accordingly.
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Petition Dismissed on Tax Demand; No Natural Justice Violation Found, Alternative Remedy Available Under Law
Case-Laws
GST
The HC dismissed the petition challenging the impugned order demanding tax, interest, and penalty, holding that the Assessing Authority had duly considered the appellant's reply and provided an opportunity of hearing prior to issuance. The court found no violation of natural justice principles, rejecting the appellant's contention that the order was passed without due process. The appellant was found to have an alternative efficacious remedy and was granted liberty to file an appeal before the designated appellate authority within 30 days of receipt of the order. The appellate authority was directed to adjudicate the appeal in accordance with law within a reasonable timeframe, without raising limitation objections. Consequently, the writ petition was dismissed for lack of merit.
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Appeal Dismissed for Delay Without Considering Section 14 Exclusion; Audit Held Arbitrary and Quashed
Case-Laws
GST
The HC dismissed the petitioner's appeal under Section 107(1) of the CGST Act, 2017 solely on the ground of delay without accounting for the time excluded under Section 14 of the Limitation Act, constituting an erroneous exercise of jurisdiction. Consequently, the appellate order was quashed and the matter remanded for fresh consideration in accordance with law, allowing the petitioner the benefit of exclusion under Section 14. Additionally, the concurrent adjudication by the Assistant Commissioner (in conducting Audit) despite the pendency of appeal proceedings was held to be arbitrary and unsustainable, violating principles of natural justice and judicial discipline. The order passed by the Assistant Commissioner was quashed. Petition allowed.
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Writ Petition Dismissed; Appeal Allowed with Pre-Deposit Under Section 107 of GST Act Within 15 Days
Case-Laws
GST
The HC dismissed the writ petition for lacking prima facie merit. However, the petitioner was granted leave to file an appeal before the Appellate Commissioner within 15 days of receiving the order, subject to making the applicable pre-deposit as mandated by Section 107 of the GST Act. Upon compliance, the Appellate Commissioner was directed to adjudicate the appeal on its merits in due course. The writ petition was accordingly dismissed.
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Directive mandates timely record production for audits under Goa GST Act, 2017, per Article 149 compliance rules
Circulars
GST – States
The State Tax Commissioner issued a directive enforcing the timely production of records and information for audit purposes under the Goa GST Act, 2017, following an instruction from the CBIC. This directive mandates all officers to promptly provide requisite documents to the C&AG audit teams to facilitate statutory audits, as empowered by Article 149 of the Constitution. Non-compliance noted in prior audits necessitated this uniform implementation. Officers must also coordinate with taxpayers to obtain documents not held within government records. The instruction aims to ensure transparency and accountability in government revenue administration by obligating field formations to cooperate fully with audit authorities. Failure to comply may result in administrative consequences, underscoring the legal obligation to support audit functions under the applicable GST framework.
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New grievance process for GST registration issues under state tax rules ensures faster resolution and reporting
Circulars
GST – States
The Commissioner of State Taxes, Goa, instituted a grievance redressal mechanism for applicants facing issues with GST registration processing under state jurisdiction. Applicants dissatisfied with queries or grounds for rejection may file grievances via a designated email to the Additional Commissioner of State Tax (HQ), who is tasked with ensuring timely resolution and communication of outcomes. Complaints concerning central jurisdiction are to be forwarded to the appropriate central authority with notification to the GST Council Secretariat. The Additional Commissioner must also submit monthly reports on grievance handling to the Commissioner. This framework aims to expedite dispute resolution and maintain procedural compliance in GST registration applications within the state.
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Small traders get relief as Chhattisgarh govt waives VAT dues of up to Rs 25k in old cases
GST
Dated:- 12-7-2025
PTI
Raipur, Jul 12 (PTI) Small traders can heave a sigh of relief as the Chhattisgarh government has decided to waive VAT dues of up to Rs 25,000 in cases pending for more than 10 years, officials said on Saturday.
The move to write off old VAT dues is expected to benefit more than 40,000 traders and will help reduce litigation in more than 62,000 cases, significantly easing the compliance burden, they pointed out.
Simultaneously, multiple amendments to GST (Goods and Service Tax) provisions will also be introduced under the broader agenda of improving the business climate in the state, they said.
During the cabine

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r cent, providing much-needed relief to the business community,” it said.
“In an effort to bring uniformity, the provision related to 'Time of Supply' has been deleted with respect to taxability on vouchers, as there were conflicting views among various Advance Ruling Authorities on the matter. This amendment aims to bring clarity and consistency,” as per the release.
Additionally, a key amendment has been proposed to exclude SEZ warehousing transactions from the GST ambit, the release informed.
These involve goods kept in Special Economic Zone (SEZ) warehouses, which may be traded multiple times without any physical movement, the release said, adding the change is aimed at boosting trade activities in SEZs. PTI TKP BNM
News – Press

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Maharashtra bars, permit rooms declare bandh on July 14 to protest tax hikes
GST
Dated:- 12-7-2025
PTI
Mumbai, Jul 12 (PTI) Over 20,000 bars and permit rooms across Maharashtra will shut operations on July 14 to protest against the state government’s “draconian taxation”, said the Indian Hotel and Restaurant Association (AHAR) on Saturday.
The bandh is to oppose the state governmentÂ’s tax hikes, including rise in VAT (value added tax) on liquor to 10 per cent, a 15 per cent increase in annual licence fees and a 60 per cent spike in excise duty, in a span of one year, AHAR said in a statement.
These tax hikes are pushing the Rs 1.5 lakh-crore industry to the edge of collapse, it said.
“The entire hospitality sector in Maharash

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a death blow to an industry that contributes significantly to employment and state taxes,” said Shetty.
The 20,000-strong permit rooms and bars industry directly and indirectly employs over 20 lakh jobs, and supports a wider ecosystem of 48,000 vendors.
National Restaurant Association of India (NRAI), Hotel and Restaurant Association (Western India) – HRAWI, and affiliated as well as non-affiliated associations of hotels and restaurants in Maharashtra have extended their support to the July 14 bandh.
The industry also plays a vital role in MaharashtraÂ’s tourism-driven economy, especially in cities like Mumbai and Pune, they said.
“We stand united with our fraternity members across Maharashtra in expressing our deep concern over these r

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Mandatory deficiency notice under Rule 90(3) CGST excludes limitation period; right to appeal preserved under Section 107
Case-Laws
GST
The HC held that under Rule 90(3) of the CGST Rules, deficiency communication via Form GST RFD-03 is mandatory, and the period of deficiency communication is excluded from the two-year limitation under Section 54(1). In the case at hand, the Department claimed issuance of an SCN and rejection without reply, but the petitioner contended non-receipt or non-uploading of the SCN and rejection order, resulting in denial of the right to be heard. Since the final rejection order dated 2019 was only disclosed to the petitioner in 2025, the court allowed the petitioner to file an appeal before the Appellate Authority under Section 107. The Department's inability to produce the deficiency memo (Form GST RFD-03) undermined its justification to withhold the refund. The petition was accordingly disposed of, preserving the petitioner's right to challenge the refund rejection.
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Order set aside for violating natural justice by denying mandatory third personal hearing under relevant provisions
Case-Laws
GST
The HC found that the first respondent violated the principles of natural justice by passing the impugned order without granting the petitioner the mandatory third personal hearing as required under the relevant provisions. The petitioner had submitted a reply and requested an opportunity for a third hearing and to produce records, which was not afforded. Consequently, the HC set aside the impugned order and remitted the matter to the first respondent with a direction to provide the petitioner a personal hearing on 24-12-2024. The first respondent is to consider the petitioner's submissions and documents and pass a reasoned order on merits in accordance with law. The petition was disposed of accordingly.
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Assessment order under Section 74 set aside; proceedings to be reconsidered under Section 73 of CGST Act
Case-Laws
GST
The HC set aside the impugned assessment order issued under Section 74 of the CGST Act due to the petitioner's submission of a Chartered Accountant's certificate confirming supplies, receipt of goods, and payment including GST, despite the supplier's liquidation. The Court noted that initiation of proceedings solely for non-furnishing of the certificate was unwarranted, especially given Circular No.183/15/2022-GST allowing transaction verification by the respondent. The matter was remanded with directions to treat the proceedings as initiated under Section 73 of the CGST Act and to decide afresh in accordance with law. The petition was disposed of by way of remand, requiring the respondent to reconsider the case and pass appropriate orders under Section 73.
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Writ Petition Allowed, ITC Reversal and No Pre-Deposit Required Under GST Rules; Case Remanded for Fresh Adjudication
Case-Laws
GST
The HC allowed the writ petition and intra-Court appeal, setting aside the appellate authority's order dated 4th October 2024. The matter was remanded to the Assistant Commissioner, CGST and Central Excise, Dinajpur Division, for fresh adjudication. The court emphasized the necessity to afford the assessee an opportunity to reconcile the alleged wrongful availing of ITC, highlighting that if the ITC has already been reversed, the issue becomes revenue neutral, negating the requirement for any pre-deposit. The absence of interest levy by the adjudicating authority further indicated reversal of ITC. The HC underscored that these factual disputes must be resolved by the original authority, ensuring adherence to principles of natural justice.
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Court sets aside orders on ITC misuse under Sections 61 and 107 of WBGST/CGST Act, 2017 for non-response to notices
Case-Laws
GST
The HC set aside both the order passed by the proper officer and the appellate order concerning the petitioner's failure to respond to notices issued under Sections 61 and 107 of the WBGST/CGST Act, 2017, relating to alleged wrongful utilization of Input Tax Credit (ITC). Despite the petitioner's claim of illness preventing response, the court found no sufficient explanation for non-compliance with the scrutiny and show-cause notices. The imposition of interest on the petitioner for availing ITC was noted, though utilization details were unclear. Consequently, the challenge to the rejection of the appeal was allowed, and the petition was disposed of, effectively nullifying the prior adverse orders against the petitioner.
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Appeal Dismissed for 91-Day Delay; Both Parties Must Follow Filing Deadlines Under Limitation Rules
Case-Laws
GST
The HC dismissed the appeal as time barred due to a 91-day delay in filing. The court held that the appellant/department, alleging lack of diligence by the respondent/assessee, must also adhere to the limitation period for filing appeals. The principle of equal diligence applies to both parties. The statute requires a fresh refund application following rectification of deficiencies. The court modified the Single Bench's direction, ordering the respondent to rectify all noted deficiencies and submit a fresh refund application within two weeks of receiving the order's certified copy. The appeal was therefore dismissed, and the matter was remanded for compliance with these conditions.
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SCN Quashed for Denial of Fair Opportunity; Matter Remanded for Reconsideration with Extended Response Time
Case-Laws
GST
The HC invalidated the impugned order and set it aside, finding that the petitioner was denied a fair opportunity to contest the SCN issued on 12th December 2023, constituting a breach of natural justice. The court noted that the SCN was not properly communicated, and no reply was filed by the petitioner. Consequently, the matter was remanded to the Adjudicating Authority for reconsideration. The petitioner was granted an extension until 10th August 2025 to file a response to the SCN. Following the submission, the Adjudicating Authority is directed to issue a notice for a personal hearing. The petition was disposed of accordingly.
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Petitioner must file appeal under Section 107 CGST Act for fraudulent ITC misuse despite limitation period extension granted
Case-Laws
GST
The HC held that the petition challenging the impugned order involving large-scale fraudulent availing and passing off of Input Tax Credit (ITC) through misuse of provisional GST numbers was not maintainable due to the availability of an alternative remedy. The Court emphasized that an appeal under Section 107 of the CGST Act, 2017, constitutes a comprehensive remedy and must be pursued. Despite the limitation period having lapsed, the Petitioner was granted a one-month extension to file the appeal with the requisite pre-deposit. The matter was adjourned for further hearing accordingly.
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Demand exceeding show-cause notice amount violates Section 75(7) of GST Act; order quashed and remanded for fresh hearing
Case-Laws
GST
The HC held that the demand raised exceeded the amount specified in the show-cause notice, violating Section 75(7) of the GST Act, which prohibits confirming a demand beyond the specified amount or on grounds not mentioned in the notice. The impugned order, which demanded Rs. 41,84,920 against the notice amount of Rs. 23,69,062.50, was quashed. The matter was remanded to the respondent for providing the petitioner an opportunity to respond to the show-cause notice and to pass a fresh order in compliance with statutory requirements. The petition was allowed accordingly.
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Bail Granted to Accused in Fake Firm Input Tax Credit Case Under Relevant Laws
Case-Laws
GST
The HC granted regular bail to the applicants accused of creating and managing fake firms to wrongfully claim input tax credit. The offences are triable by a Magistrate with a maximum punishment of five years' imprisonment. The applicants had already spent approximately seven months in judicial custody. The investigation was complete, but charges had not yet been framed, and the trial had not commenced. Prosecution witnesses were official and unlikely to be influenced. Considering the trial's probable delay and the lack of utility in continued detention, the court allowed bail without expressing any opinion on the case's merits. The applicants were ordered released upon furnishing bail and surety bonds to the trial court's satisfaction.
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Notifications extending limitation under Section 168A CGST Act must have valid GST Council recommendation to be valid
Case-Laws
GST
The HC held that notifications issued under Section 168A CGST Act, purportedly extending limitation periods, must be strictly construed as exceptions to Section 73. The impugned notifications lacked a valid recommendation from the GST Council based on relevant material, rendering them unsustainable. While the GST Council's recommendation is mandatory, it is not binding on the government; however, post-issuance ratification by the Council does not cure the defect of absence of prior recommendation. The Court distinguished between extension of limitation (Section 168A) and computation of limitation (Supreme Court's orders under Article 142), holding that the notifications erroneously diminished limitation periods contrary to the Supreme Court's orders, thus violating legislative intent. Consequently, the notifications were quashed, and all matters were remanded to assessing authorities for fresh adjudication consistent with these findings.
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