Denial Of Input Tax Credit Limited To Depreciated Portion: Kerala High Court

The Kerala High Court on 18 February clarified that Section 16(3) of the CGST Act bars input tax credit only on the part of a capital good's tax component where depreciation is claimed, not on the whole tax component. Justice Ziyad Rahman A A quashed the show-cause notices issued to banking companies that had denied input tax credit on the entire tax component solely because depreciation was claimed on the unavailed portion. The Bench observed: “as far as prohibition contemplated under...

Electronic Credit Ledger Cannot Be Blocked Beyond One Year Under CGST Rules: Karnataka High Court

The Karnataka High Court on 25 February, held that the restriction imposed by blocking a taxpayer's electronic credit ledger under Rule 86A of the Central Goods and Services Tax Rules, 2017, cannot continue beyond one year, and any continuation of such blocking after the statutory period is illegal. Justice S. Sunil Dutt Yadav was hearing a writ petition filed by Jupiter Ventures challenging the action of the tax authorities in blocking its Electronic Credit Ledger on 21 November 2024. The...

Assessment Order Against Deceased Person Without Hearing Legal Heirs Invalid: Rajasthan High Court

The Rajasthan High Court on 26 February, held that assessment proceedings cannot be validly continued or concluded against the legal heirs of a deceased taxpayer under Section 93 of the CGST Act, which limits liability to the estate inherited, unless the authorities comply with mandatory principles of natural justice, including issuance of a proper notice and grant of an opportunity of hearing to the legal representative. A Bench of Acting Chief Justice Sanjeev Prakash Sharma and Justice...

GST Payable Separately On Municipal Works Contracts Unless Tender Includes It: Kerala High Court

The Kerala High Court, on 12 February, held that contractors executing works for local self-government institutions are entitled to payment of GST over and above the contract value, and that such tax cannot be treated as included in the quoted rates unless the tender conditions expressly so provide. Harisankar V. Menon stated that once government circulars categorically mandate that tendered rates for public works are to be quoted exclusive of GST, the municipality cannot subsequently treat GST...

Naming Judges In Affidavits Is “Totally Uncalled For”: Allahabad High Court

Recently, the Allahabad High Court strongly criticised the practice of naming judges in affidavits. Justice Samit Gopal, was hearing a case concerning tax evasion by a Chinese national residing temporarily in Greater Noida, where the Assistant Commissioner, CGST, in his affidavit, had mentioned the names of the judges whose judgments were cited. The Court observed: “This system of mentioning the names of Hon'ble Judges while giving reference to the judgments is totally uncalled for.” Alice...

Check-Posts Cannot Value or Confiscate Goods in Transit: Andhra Pradesh High Court

The Andhra Pradesh High Court has held that authorities stationed at GST check-posts lack jurisdiction to examine the valuation of goods or to confiscate and levy penalties merely because the goods are in transit. The Bench comprising Justice R. Raghunandan Rao and Justice T.C.D. Sekhar, observed that disputes relating to valuation and tax liability must be examined only by the jurisdictional assessing authority and not by proceedings initiated at the stage of interception under Sections 129 or...

Allahabad High Court Grants Oppo Interim Relief In ₹599 Crore GST Case, Issues Notice On Challenge To CGST Section 15(3)(b)

The Allahabad High Court has recently granted interim protection to Oppo Mobile India Private Limited in its challenge to the validity of Section 15(3)(b) of the Central Goods and Services Tax Act, 2017, after an adjudication order confirmed a total tax demand of Rs 599.07 crore along with equivalent penalty and interest under Section 74 of the Act, according to the writ petition. The order in challenge dated December 12, 2025, confirmed demands of Integrated Goods and Services Tax, Central...

Allahabad High Court Stays GST Order Confirming ₹13 Crore Tax Demand Against Dell India Arm

The Allahabad High Court has recently stayed the operation and effect of a GST demand order against Dell International Services India Private Limited, the Indian services arm of US technology major Dell, after recording its submission that a jurisdictional error had crept into the proceedings. Appearing for the company, counsel submitted that besides violation of principles of natural justice, the adjudicating authority had confirmed a higher demand than what was proposed in the show cause...

Bombay High Court Seeks Decision In 2 Months On Imagicaa's Plea For Tax Incentive Under State Tourism Policy

Observing that extension of tax incentives granted to Imagicaaworld Entertainment Limited involves a policy decision requiring inter-ministerial dialogue, the Bombay High Court has directed the Union of India, the State of Maharashtra, and other concerned authorities to take a decision on the company's pending representation within two months. A Division Bench of Justices G.S. Kulkarni and Aarti Sathe was hearing a writ petition filed by Imagicaaworld Entertainment Limited, which operates the...

“Access To Justice Cannot Be Held Hostage To Technology”: Allahabad High Court On Filing GST Appeals

The Allahabad High Court on 20 February addressed difficulties faced by taxpayers in filing appeals under the Goods and Services Tax Act, 2017 due to technological barriers in the online system. A Bench of Justice Saumitra Dayal Singh and Justice Indrajeet Shukla was hearing a case filed by Ennbee Living LLP, pertaining to the generation of a temporary id to file appeal under the Goods and Service Tax Act, 2017. The Bench emphasised: “Access to justice cannot be held hostage to technology...

GST Appellate Tribunal Can Grant Interim Relief, Including Stay On Recovery: Bombay High Court

The Bombay High Court has recently held that the GST Appellate Tribunal possesses inherent and incidental powers to grant interim relief. This includes protection against recovery pending disposal of appeals. The Court said that any interpretation to the contrary would render the appellate remedy “illusory” and defeat legislative intent. A Division Bench of Justices G.S. Kulkarni and Aarti Sathe was hearing a writ petition filed by The Hongkong and Shanghai Banking Corporation Ltd. The bank...

Bombay High Court Reaffirms Year-Wise Assessment In GST, Limits Scope of Section 74 Notices

The Bombay High Court (Nagpur Bench) recently, quashed a show cause notice issued against Rainbow Greeners Nagpur, under Section 74 of the CGST Act on the ground that it unlawfully clubbed five financial years in a single composite proceeding. A Division Bench of Justice Anil L. Pansare and Justice Nivedita P. Mehta wrote: “In the light of the statutory scheme, we find that there is no scope for consolidating various financial years/tax period which is attempted by the impugned Show Cause...