Gauhati High Court Holds DRC-01 Cannot Replace Statutory Show Cause Notice Under GST Act

The Gauhati High Court on 13 May held that GST authorities under the Assam GST Act cannot initiate and conclude proceedings under Section 73 solely on the basis of a Summary Show Cause Notice in Form GST DRC-01, reiterating that issuance of a proper statutory show cause notice is a mandatory precondition for raising a tax demand. Justice Manish Choudhury allowed the petition filed by Riyan Enterprises and set aside the adjudication order passed under Section 73 of the Assam GST Act for alleged...

Punjab & Haryana High Court Rules PLC Not Separately Taxable, Sets Aside DLF Advance Ruling Orders

The Punjab and Haryana High Court on 13 May held that Preferential Location Charges (PLC) collected by developers for offering a preferred location within a housing project form part of the composite construction service and cannot attract separate taxation. A Division Bench of Justices Deepak Sibal and Lapita Banerji allowed a writ petition filed by DLF Limited and quashed the Advance Ruling Authority order dated 28 August 2020 and the Appellate Authority for Advance Ruling order dated 28...

BOT Concessionaire Liable To Pay GST On Toll Rights Received As Consideration: Rajasthan High Court

The Rajasthan High Court on 22 May held that toll collection rights granted under a Build-Operate-Transfer (BOT) concession agreement constitute consideration for taxable works contract services and are not exempt from GST merely because toll collection itself enjoys exemption. A Division Bench of Justices Arun Monga and Sandeep Shah dismissed a writ petition filed by CG Tollway Ltd challenging orders of the GST authorities that had demanded Rs. 16.36 GST, interest and penalty on services...

Gujarat AAR Allows ITC On Inputs, Services Used To Set Up CCV Tower For Insulated Cable Manufacturing

The Gujarat Authority for Advance Ruling (AAR) has ruled that Apar Industries Ltd. can avail Input Tax Credit (ITC) on goods and input services used for setting up a Continuous Catenary Vulcanization (CCV) tower at its manufacturing facility. The tower is used in the manufacture of insulated electrical cables. A bench comprising CGST Member Vishal M. Ladani and SGST Member Subham Roy passed the ruling in an application filed by Apar Industries Ltd. “On going through the layout of the CCV tower...

Gujarat AAR Declines To Answer GIFT SEZ Co-Developer's GST Zero-Rating Query On SEZ Supplies

The Gujarat Authority for Advance Ruling has declined to answer whether endorsement by the Specified Officer is mandatory for claiming zero-rated GST treatment on supplies involving Special Economic Zone entities and whether alternative documentary evidence could suffice. It held that the applicant's queries fell outside the scope of advance ruling jurisdiction. A bench of CGST Member Vishal Muni and SGST Member Subham Roy passed the ruling on an application by Waystar Properties LLP, a...

GSTAT Delhi Upholds Anti-Profiteering Order Against Builder, Directs ₹63.93 Lakh Refund

The Goods and Services Tax Appellate Tribunal (GSTAT) at Delhi has upheld anti-profiteering proceedings against Siddha Infradev LLP and directed the builder to refund ₹63.93 lakh, along with 18% interest, to nine eligible homebuyers after finding that it failed to pass on the benefit of additional input tax credit in its Kolkata housing project. A single-member bench of Technical Member Anil Kumar Gupta, ruled, “Procedural delays by a statutory authority, in the absence of any prescribed...

Delhi High Court Protects IndiGo From Coercive Action In ₹458 Crore GST Dispute

The Delhi High Court on Friday protected InterGlobe Aviation, which operates India's largest airline IndiGo, from coercive action over a ₹458.26 crore goods and services tax (GST) demand linked to compensation received from a foreign engine supplier. A division bench of Justices Nitin Wasudeo Sambre and Ajay Digpaul issued notice to the GST department and granted interim protection to the airline after observing that, prima facie, the amount received by IndiGo appeared to be “compensation”, and...

Revenue Must Rebut Taxpayer's Claimed Date Of GST Order Communication With Cogent Evidence: Allahabad High Court

The Allahabad High Court has reiterated that where a taxpayer discloses the actual date of communication of an order under the Uttar Pradesh Goods and Services Tax Act, 2017, the burden shifts to the Revenue to rebut that assertion with cogent material. It further held that the appellate authority is bound to give an independent finding on the date of communication of the order. Referring to the decisions of the division bench of the Allahabad High Court in Bambino Agro Industries Limited v....

Calcutta High Court Treats Polypropylene Sacks As Plastic, Not Textile Products In GST Dispute

The Calcutta High Court has held that polypropylene leno bags manufactured by Mega Flex Plastics Limited should be treated as plastic sacks, not textile products, for GST purposes. A Division Bench comprising Justice Debangsu Basak and Justice Md. Shabbar Rashidi observed that the company's bags were commonly known in the market as “plastic sacks” and not textile sacks. The court held, “The sacks manufactured by the appellant are commonly known in the market as plastic sacks. They are not...

GSTAT Extends Relaxed GST Appeal Filing Guidelines On Portal Till December 31, 2026

The Goods and Services Tax Appellate Tribunal (GSTAT) Principal Bench, New Delhi, has extended till December 31, 2026 the relaxed filing framework for appeals on the GSTAT Portal, citing difficulties faced by appellants during the initial phase of the portal's functioning. The extension has been granted through an office order dated May 14, 2026.The order continues the earlier relaxation measures introduced through an office order dated January 20, 2026 and instructions issued on March 10,...

GST Audit Completion Does Not Bar Further Tax Proceedings for Unpaid Tax: J&K and Ladakh High Court

The High Court of Jammu & Kashmir and Ladakh has recently held that completion of a GST audit does not prevent tax authorities from initiating further proceedings for unpaid or short-paid tax.Referring to section 65(7) of the CGST Act, the court observed, “A plain reading thereof makes it abundantly clear that where an audit conducted under sub-section (1) of Section 65 results in detection of tax not paid, short paid, erroneously refunded, or input tax credit wrongly availed or utilized,...

ITC Claims Filed Before 30 November 2021 Cannot Be Rejected on Limitation Ground: Karnataka High Court

The Karnataka High Court has held that Input Tax Credit (ITC) claims rejected as time-barred under Section 16(4) of the Central Goods and Services Tax Act, 2017 must be reconsidered where GST returns for the relevant financial years were filed on or before 30 November 2021, in view of the retrospective insertion of Section 16(5) of the CGST Act. A Single Judge Bench of Justice S. Sunil Dutt Yadav allowed the writ petition filed by ABE Security Mechanics Private Limited, set aside the show cause...