GST Demand Stayed As Audit Report Issued By Unauthorised Officer: Orissa High Court Finds Prima Facie Jurisdictional Defect

The Orissa High Court has stayed further proceedings arising from a Goods and Services Tax (GST) demand-cum-show cause notice issued under Section 73 of the Central Goods and Services Tax Act, 2017, after finding a prima facie jurisdictional defect in the audit process that formed the basis of the demand. The interim order was passed in a writ petition which challenged an audit notice and a consequential demand-cum-show cause. The demand was issued following an audit report...

GST | Parallel Proceedings On Sanctioned Refund An 'Overstep': Orissa High Court Quashes Recovery Proceedings As Appeal Order Stands

The Orissa High Court in a matter concerning, Double Jeopardy on Refund of about Rs. 14 crores where recovery proceedings were initiated under Section 73 for Refund already sanctioned by the Appellate Authority, has quashed the Show Cause Notice for recovery. In a recent judgment, the Division Bench, comprising Chief Justice Harish Tandon and Justice Murahari Sri Raman, observed that by initiating recovery the Joint Commissioner sought to revive a Review Order differing with the...

GST | Failure To Prove Dispatch Of Hearing Notice Doesn't Automatically Mean No Personal Hearing Was Given: Delhi High Court

The Delhi High Court has held that merely because the tax department is unable to place on record proof of dispatch of a personal hearing notice such as entries in a dispatch register, speed post receipts, or email records— it does not automatically follow that no opportunity of personal hearing was granted.A division bench of Justices Prathiba M. Singh and Shail Jain refused to entertain a writ petition challenging GST orders passed in a case involving allegations of fraudulent availment of...

BNSS Procedures Mandatory For GST Arrests Despite Revenue Nature Of Investigation: Gauhati High Court

The Gauhati High Court held that even though GST investigations are revenue in nature, arrests made by GST officers must strictly comply with the mandatory procedural safeguards prescribed under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). Justice Pranjal Das opined that even with regard to arrest by revenue authorities under GST, the procedural compliance under Sections 35/47/48 B.N.S.S. are essential, failing which, the arrest may become bad in law. In the case at hand,...

IGST Not Leviable On Clinical Observation Studies Provided To Foreign Recipients: Karnataka High Court

The Karnataka High Court held that IGST (Integrated Goods and Services Tax) is not leviable on clinic observation studies for foreign recipients, as such services qualify as export of services with the recipient located outside India. Justice S.R. Krishna Kumar stated that having regard to the specific observations made in the 37th GST Council Meeting, whereby it was resolved to clarify the tax liability in GST liability in relation to foreign recipients for R & D services...

Punjab & Haryana High Court Bars 'Negative Blocking' Of ITC Beyond Available Credit Under Rule 86A CGST Rules

The High Court of Punjab and Haryana has held that tax authorities cannot block a taxpayer's Electronic Credit Ledger (ECL) beyond the Input Tax Credit (ITC) actually available at the time of action, and that creating a negative ITC balance under Rule 86A of the CGST Rules, 2017 is without jurisdiction. A Division Bench of Justice Lisa Gill and Justice Parmod Goyal was hearing a writ petition filed by M/s Garg Furnace Limited, which challenged the blocking of its ECL on 01.10.2025...

GST | Calcutta High Court Quashes Excess ITC Demand Pertaining To Initial Years Of GST Rollout

The Calcutta High Court has quashed the order passed by Appellate Authority dismissing appeal against Section 73 demand, preliminary, “without appreciating the worth of the documents”. Justice Om Narayan Rai observed that there was 'total non-consideration of material on record' upon tracing through the paper book as well as relevant documents annexed to the writ petition which were also placed on record before the Appellate Authority (AA). For the period April 2018 to March 2019,...

GST | Stereo System In E-Rickshaw An Input, Calcutta High Court Grants Refund To Manufacturer

The Calcutta High Court, in a matter concerning admissibility of Input Tax Credit (ITC) for purchase of 'stereo system' to be used in E-rickshaw, has granted Refund claim of Unutilized Input Tax Credit under inverted duty structure amounting to approximately ₹8 lakhs. The Calcutta High Court was called-upon to decide whether "Stereo System" was an input/ raw material in manufacturing of E-rickshaw covered by HSN-87031090. Also, whether ITC involved in purchase of "stereo system" would...

GST Refund Claim Cannot Be Rejected Unless Mandatory Procedure Under Rule 92(3) CGST Rules Is Followed: Jharkhand High Court

The High Court of Jharkhand has set aside GST refund rejection orders passed against Carbon Resources Private Limited, holding that the tax department violated mandatory procedure and principles of natural justice while rejecting the refund claim. A Division Bench comprising Chief Justice Tarlok Singh Chauhan and Justice Rajesh Shankar was hearing two writ petitions challenging a refund rejection order and a subsequent rectification order passed by the Assistant Commissioner, Central...

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...

Appellate Authority Must Consider Cess-Disclosure In Annual Return, 'No Negative Mandate' For Late-Filing: Calcutta High Court

The Calcutta High Court in a matter concerning non-disclosure of Cess in monthly return GSTR-3B which came to be rectified by filing annual return in GSTR-09, has set aside appellate order. The High Court has directed the Authority to revisit the matter and consider subsequent rectification in GSTR-09 of initial error of non-disclosure. In an order dated November 26, 2025 the Single Bench of Justice Om Narayan Rai noted that at the time of finalization of the books of account,...

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...