Plea In Delhi High Court Challenges GST Demand Notices Based On Uncorrected Return

The Delhi High Court on Tuesday heard a petition challenging GST demand notices allegedly issued on the basis of an uncorrected return, despite the petitioner's claim that revised returns had been considered during audit proceedings.The division bench of Justices Anil Kshetrapal and Shail Jain was hearing a plea filed by an engineering design consultant company.Senior Advocate Puneet Agrawal for the Petitioner-company submitted that while filing its GST return for the financial year 2014–15, a...

Delhi High Court Allows Exporter To Approach GST Authorities For Interest On Refund

The Delhi High Court has permitted an exporter to approach the GST authorities for payment of interest on an allegedly delayed refund under Section 56 of the Central Goods and Services Tax Act, 2017.The division bench of Justices Anil Kshetrapal and Shail Jain was hearing a petition filed by a lithium-ion battery recycler, which is engaged in the export of unwrought cobalt powder used in scrap batteries.Petitioner submitted that it had applied on January 22, 2022, for refund of ₹31.44 lakh...

S. 76 CGST Act | Appellate Authority Can Decide Reasonable Period For Issuing Show Cause Notice: Delhi High Court

The Delhi High Court has held that the GST Appellate Authority is competent to decide what constitutes a "reasonable period" for issuance of a show cause notice under Section 76 of the Central Goods and Services Tax (CGST) Act, 2017.The Division Bench of Justices Anil Kshetrapal and Shail Jain thus refused to entertain a writ petition in this regard, by bypassing the statutory appellate remedy.The petition was filed by a security services company, challenging a show cause notice dated September...

Madras High Court Holds Later Clarifications Cannot Take Away 7% Drawback On Bus Bodies, Quashes Denial

The Madras High Court on 30 July held that Customs authorities cannot deny exporters the benefit of a beneficial drawback circular through later clarifications unless the original circular granting the concession has been withdrawn, quashing orders rejecting 7% brand rate drawback claims on the bus body portion of exported passenger buses. Justice Hemant Chandangoudar allowed the petitions filed by Ashok Leyland Limited and set aside the revisional orders dated 8 March 2022 and the CBEC...

Allahabad High Court Seeks Centre's Response On GST Appellate Tribunal Vacancies In Uttar Pradesh

The Allahabad High Court has sought an affidavit from the Department of Revenue, Ministry of Finance, Government of India detailing the efforts being made to fill vacancies in the GST Appellate Tribunal benches in Uttar Pradesh. In a petition filed by S.S. Pharma, the issue of GST appellate tribunals not sitting was brought before the High Court. Justice Piyush Agrawal had directed the state counsels to seek instructions on the appointments, sittings, and disposal of cases by the Appellate...

10% Pre-Deposit For Penalty-Only GST Appeals Cannot Apply Retrospectively: GSTAT Hyderabad

The Hyderabad Goods and Services Tax Appellate Tribunal (GSTAT) on 28 July held that the 10% pre-deposit requirement introduced for penalty-only appeals under the proviso to Section 112(8) of the Central Goods and Services Tax (CGST) Act cannot be applied retrospectively. A Bench comprising Judicial Member Justice Sushil Kumar Sharma and Technical Member Duvvuri Krishna Srinivas allowed the appeal filed by Reddy Veeranna Constructions Pvt. Ltd. and held that the amended provision would not...

ITC Cannot Be Denied For Bona Fide GSTIN Reporting Mistake: Tripura High Court

The Tripura High Court on 27 July held that a taxpayer cannot be denied Input Tax Credit (ITC) due to a genuine mistake in reporting invoices under the wrong Goods and Services Tax Identification Number (GSTIN), when the error does not result in any loss of revenue to the Government. A Division Bench comprising Chief Justice M.S. Ramachandra Rao and Justice Biswajit Palit allowed the writ petition filed by Ashutosh Bandyopadhay and directed the GST authorities to permit rectification of Forms...

Recovery Of Inadmissible Pre GST CENVAT Credit Must Proceed Under Earlier Tax Laws: GSTAT Thane

The Goods and Services Tax Appellate Tribunal (GSTAT), Thane Bench, has recently clarified that GST authorities cannot use Section 74 of the Central Goods and Services Tax (CGST) Act to question tax credits that businesses earned before GST came into force and later carried forward into the GST system. Section 74 allows tax authorities to recover tax where they allege fraud, suppression of facts or wilful misstatement. The tribunal held that this provision cannot be used to determine whether...

New 10% GST Appeal Pre-Deposit Not Applicable If SCN Issued Before October 1, 2025: Delhi High Court

The Delhi High Court has held that the amended provision requiring a 10% pre-deposit of the penalty for filing appeals against penalty-only orders under the Central Goods and Services Tax (CGST) Act cannot be applied to adjudicatory proceedings that were initiated before the amendment came into force on October 1, 2025.The Division Bench of Justices Anil Kshetrapal and Shail Jain held that the petitioners' right to appeal vested when the show cause notice (SCN) was issued on June 25, 2025, and...

Karnataka High Court Rules Secret Commission Claims Need Evidence, Upholds ₹53.48 Lakh Disallowance

The Karnataka High Court on 9 July held that a taxpayer cannot claim deduction for alleged secret commission payments as business promotion expenditure without proving the claim through adequate evidence, and upheld the disallowance of Rs. 53.48 lakh claimed as a business deduction. A Division Bench of Justices S.G. Pandit and K.M. Manmadha Rao dismissed Rampur Arvind's (taxpayer) appeal and upheld the orders of the Income Tax Appellate Tribunal, the Commissioner of Income Tax (Appeals) and the...

S.107 CGST Act | GST Appellate Authority Can Conduct Further Inquiry, Permit Cross-Examination: Delhi High Court

The Delhi High Court has held that the appellate authority under Section 107 of the Central Goods and Services Tax (CGST) Act, 2017 is empowered to conduct such further inquiry as may be necessary while deciding an appeal and, in an appropriate case, can permit cross-examination of witnesses, notwithstanding the statutory bar on remanding matters to the adjudicating authority.The Division Bench of Justices Anil Kshetarpal and Shail Jain made the observation while refusing to entertain a writ...

Delhi High Court Declines Writ Against Ex Parte GST Order, Cites Statutory Appeal

The Delhi High Court has declined to entertain a writ petition challenging an ex parte GST adjudication order. It observed that disputed questions of fact relating to the validity and sufficiency of service of notices under Section 169 of the Central Goods and Services Tax Act, 2017, are more appropriately examined by the statutory appellate authority. A division bench of Justices Anil Kshetarpal and Amit Mahajan was hearing a challenge to an order that imposed a penalty of over ₹2.39 crore on...