CGST Act | Gujarat High Court Upholds Power To Confiscate Goods During Transit For Tax Evasion, Clarifies Scope Of S.129 & 130

The Gujarat High Court has upheld the power of GST authorities to confiscate goods and conveyances during transit where there is a clear intent to evade tax, and has clarified the scope and interplay of Sections 129 and 130 of the Central Goods and Services Tax (CGST) Act, 2017. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi, while deciding a large batch of writ petitions, held that Sections 129 (detention and seizure of goods in transit) and 130 (confiscation of...

GST | CBIC Circulars Cannot Shield Dubious Transactions; Must Operate Within Statutory Framework: Calcutta High Court

The Calcutta High Court held that CBIC (Central Board of Indirect Taxes & Customs) circulars are binding on departmental officers but cannot be used as a protective shield in cases where the genuineness of the transaction or invoices is in doubt. Justice Om Narayan Rai stated that it cannot be doubted that a circular issued by the Central Board of Indirect Taxes & Customs would be binding on all its officers but at the same time there can also not be any cavil to the...

Delhi High Court Quashes ₹45.36 Crore GST Demand Against NBCC After Finance Ministry Clarification

The Delhi High Court has recently quashed a Rs 45.36 crore GST demand raised against NBCC (India) Ltd, a state-owned construction and project management company under the Ministry of Housing and Urban Affairs, in connection with the redevelopment of East Kidwai Nagar, New Delhi.A division bench of Justice Prathiba M Singh and Justice Shail Jain set aside the demand after relying on a clarification issued by the Ministry of Finance, which stated that the Union Ministry itself was the principal...

Delhi HC To Hear IndiGo's Plea For ₹900+ Crore IGST & Customs Duty Refund On Re-Imported Aircraft Parts; Customs Alleges No Double Levy

The Delhi High Court is set to hear a plea by Interglobe Aviation Limited (Indigo) over denial of an estimated refund of over Rs. 900 crores of Integrated Goods and Services Tax (IGST) and Customs duty on re-imported aircraft parts that were repaired abroad. The Customs Writ Petition filed on December 11, 2025 was mentioned before a Bench comprising Justice Prathiba M. Singh and Justice Shail Jain. As a common practice in the Aviation sector, aircraft components overseas are sent for...

Delhi High Court Flags Validity Of Reports In IGST Refund Denial On Export Of Mouth Fresheners/Pan Masala; Directs Expeditious Examination

The Delhi High Court in a matter involving export of mouth freshner/pan masala, where two differing Test Reports were issued and refund of Integrated Goods and Services Tax (IGST) was denied, has flagged validity of Central Revenues Control Laboratory (CRCL) test reports. Justice Prathiba M. Singh and Justice Shail Jain were hearing writ petitions filed by Exporters/Petitioners of tobacco products including pan masala and mouth fresheners who had challenged the letter issued by Customs...

GST Abolished Ad Tax, Doesn't Bar Municipal Licence Fees on Hoardings: Bombay High Court

The Bombay High Court recently held that the introduction of the Goods and Services Tax regime does not take away the power of municipal corporations in Maharshtra to levy licence fees on hoardings and sky-signs. The court clarified that GST abolished only advertisement tax and not regulatory charges imposed under municipal law. A division bench of Justice G S Kulkarni and Justice Advait M Sethna, made the observation while dismissing a large batch of petitions filed by outdoor advertising...

GST | Non-Mentioning Vehicle Number In Part-B Of E-Way Bill Is Curable Defect: Karnataka High Court

The Karnataka High Court in a matter concerning non-uploading of Part-B of E-way Bill, has set aside the revisional order and restored the order of Appellate Authority which allowed release of seized vehicle and imposed a General Penalty of Rs. 25000. Justice S.R. Krishna Kumar directed to refund the entire amount imposed on the Petitioner as penalty excluding Rs. 25000 as also instructed to return the bank guarantee. The Karnataka High Court emphasized on how omission of vehicle...

Uttarakhand High Court Quashes GST Order After Authorities Ignored Adjournment Request While Assessee Was Abroad

The Uttarakhand High Court has quashed a Goods and Services Tax (GST) demand order passed against an assessee after the department ignored his request for adjournment on the ground that he was abroad at the relevant time. The petitioner had approached the Court challenging an order issued under Section 73 of the CGST/SGST Act, contending that the adjudicating authority proceeded in absence of petitioner despite being duly informed that he was outside India and unable to participate in...

ITC Cannot Be Denied For Non-Filing Of TRAN-1 Due To Transition Issues When GST Regime Came Into Effect: Delhi High Court Allows Credit Of ₹99 Lakh

The Delhi High Court held that legitimate transactional Input Tax Credit (ITC) cannot be denied when the assessee was unable to file TRAN-1 due to a GST portal glitch during the shift to the GST regime. The bench noted that since the form could not be filed in time, the distribution could not take place as per Rule 39(1)(a) of the CGST Rules within one month.Rule 39(1)(a) of the Central Goods and Services Tax (CGST) Rules, 2017, mandates that an Input Service Distributor (ISD) must...

CGST Act | Gauhati High Court Reads Down S.16(2)(aa); Says ITC Can't Be Denied To Bona Fide Buyer For Supplier's Default

The Gauhati High Court has held that Input Tax Credit (ITC) cannot be denied to a bona fide purchaser merely because the supplier failed to upload invoice details in Form GSTR-1, and has read down Section 16(2)(aa) of the CGST Act and AGST Act to protect genuine taxpayers. A Division Bench comprising Chief Justice Ashutosh Kumar and Justice Arun Dev Choudhury disposed of a writ petition filed by the assessee, M/s McLeod Russel India Limited, holding that while the provision itself is...

PVC Raincoats Classified As Plastic Articles And Not Textile Apparel, Attract 18% GST: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has ruled that PVC raincoats are to be treated as plastic articles and not textile apparel, and therefore attract 18% GST. The ruling came on an application filed by a Gujarat-based manufacturer of PVC and plastic raincoats. The applicant had sought clarity on whether PVC raincoats should be taxed at 5% as apparel or at 18% as articles of plastic. The applicant is engaged in the business of manufacture, resale, deal, purchase, import,...

Logistics Operator Can Charge GST At 5% For Transporting Empty Containers By Rail, ITC Inadmissible: Gujarat AAR

The Gujarat Authority for Advance Ruling (AAR) has held that GST at 5% was applicable for transportation of empty containers by rail, but without Input Tax Credit (ITC) and same would be covered by general entry (i) at Serial No. 09 viz. Transport of goods by rail (other than services specified at item no. (iv)). The Gujarat AAR comprising Mr. Vishal Malani (Member- Central Tax) and Ms. Sushma Vora (Member- State Tax) examined the two competing entries (i) and (iv) at Serial No. 9 of...