Karnataka High Court Sets Aside Ex-Parte GST Order Passed Without Allowing Reply To Show Cause Notice

The Karnataka High Court has set aside an ex-parte GST order passed against Medizen Labs Pvt. Ltd. after noting that the adjudicating authority issued the order without considering any reply from the taxpayer. The court observed that, in the facts of the case, it would be appropriate to give the assessee an opportunity to respond to the show cause notice before the matter is decided on merits. A single-judge bench of Justice S. Sunil Dutt Yadav was hearing a writ petition filed by the...

Gujarat High Court Grants Interim Relief To Export Units In Kandla SEZ From Cess Liability

The Gujarat High Court on 26 February, held that Esskay Niryat Corporation and RR Exports operating from the Kandla Special Economic Zone (SEZ), are protected from coercive action under the Health Security and National Security Cess Act, 2025, while the matter is pending before the Court. A Division Bench of Justice A.S. Supehia and Justice Pranav Trivedi, while hearing petitions filed by the two units, granted interim relief by staying recovery steps and issued notice to the Union...

No GST On Tariff, Licence Fees Collected By Haryana Electricity Commission: Punjab Haryana High Court

The Punjab and Haryana High Court on 26 February set aside a show cause notice seeking GST on tariff petition and licence fees collected by the Haryana State Electricity Regulatory Commission, holding that these fees arise from statutory regulatory functions and are not in the course of business. A Division Bench of Justice Lisa Gill and Justice Ramesh Chander Dimri allowed the writ petition and quashed the notice, observing:“Learned counsel for respondents points out that review has been...

Gujarat High Court Holds GST Order Against Pacific Cyber Technology Invalid For Overlooking Reply

The Gujarat High Court on 5 February set aside a GST detention and demand order passed against Pacific Cyber Technology Pvt. Ltd., observing that the adjudicating authority failed to consider the explanation submitted by the company regarding delay in movement of goods due to a technical fault in the vehicle. A Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi held: “It appears that the appellate authority has not even remotely adverted to the explanation tendered by...

Bombay High Court Stays Multiple GST Notices On Leasehold Transfers Until Supreme Court Ruling

The Bombay High Court on 25 February granted interim protection to taxpayers facing GST proceedings on the assignment of leasehold rights, directing that recovery actions and adjudication of show cause notices be stayed until the Supreme Court of India decides the issue. A Division Bench of Justices G.S. Kulkarni and Aarti Sathe was hearing multiple writ petitions filed by companies challenging GST demands on the transfer or assignment of leasehold rights in industrial plots and buildings,...

Cash Seizure Without 'Reason to Believe' Violates CGST Act: Bombay High Court

The Bombay High Court on 10 March quashed the seizure of Rs. 1 crore in cash by the Directorate General of GST Intelligence (DGGI) from Smruti Waghdhare, holding the action arbitrary and without authority under the CGST Act. A Division Bench of Justice G.S. Kulkarni and Justice Aarti Sathe was hearing a writ petition challenging the seizure, under which Rs. 60 lakh was recovered from her premises and Rs. 40 lakh from her parents' residence during search operations. The judges held: “On a...

Bombay High Court Allows GST Fraud Case Accused To Travel Abroad, Says Right To Travel Part Of Personal Liberty

The Bombay High Court has recently observed that the right to travel abroad forms part of the fundamental right to personal liberty under Articles 14 and 21 of the Constitution and that such liberty cannot be restricted merely on the basis of apprehensions that are not supported by material on record. The court permitted a businessman facing prosecution in a GST fraud case to travel overseas for business as well as personal reasons, observing that conditions requiring prior permission before...

Input Tax Credit Transfer On Company Amalgamation Not Restricted By State: Gujarat High Court

The Gujarat High Court on 5 March held that input tax credit (ITC) cannot be denied on the amalgamation of companies merely because the transferor and transferee entities are registered in different States. A Division Bench comprising Justice A. S. Supehia and Justice Pranav Trivedi heard a petition filed by Emerson Process Management (India) Pvt. Ltd. challenging the refusal of GST authorities to allow the transfer of ITC following the amalgamation of Pentair Valves and Controls India Pvt....

Supreme Court Issues Notice On Plea Over Denial Of Use Or Refund Of Compensation Cess ITC After Coal Cess Scrapped

The Supreme Court on Monday issued notice on a writ petition challenging the denial of utilisation or refund of accumulated Compensation Cess input tax credit (ITC) after the cess on coal was scrapped. The petition, filed by Carbon Resources Pvt. Ltd., claims the change has left the company with around Rs 23 crore in compensation cess credit that has become unusable because no mechanism was provided to either utilise or refund it. A bench comprising Chief Justice of India Surya Kant and...

GST Summary Notice Cannot Replace Statutory Show Cause Notice: Gauhati High Court

The Gauhati High Court has held that a summary of a show cause notice issued in Form GST DRC-01 cannot substitute the requirement of a proper show cause notice under the GST law.Justice Soumitra Saikia quashed the order dated August 29, 2024, issued against the taxpayer, Md. Shoriful Islam, under the GST regime after observing that the tax authorities had only issued a summary of the show cause notice along with an attachment containing the determination of tax.The petitioner was issued a...

Madras High Court Upholds Same-Month ISD Credit Rule Under CGST, Dismisses Reliance Jio's Challenge

The Madras High Court on 5 March upheld the validity of Rule 39(1)(a) of the Central Goods and Services Tax Rules, 2017, which mandates that an Input Service Distributor (ISD) must allocate tax credits within the same month in which an invoice is received. A Bench comprising Chief Justice Manindra Mohan Shrivastava and Justice G. Arul Murugan was hearing a batch of writ petitions filed by Reliance Jio Infocomm Ltd, challenging the provision governing the timing of distribution of Input Service...

Gujarat High Court Grants Bail To Lawyer Accused Of Filing GST Return For 'Non-Existent, Fake Entities'

The Gujarat High Court recently granted bail to an advocate who was arrested for allegedly filing GST returns for firms that are claimed to be non-existent, fake entities.Sanghani has been booked under Sections 132 (1)(b) (whoever issues any invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder leading to wrongful availment or utilisation of input tax credit or refund of tax), and 132 (1) (c) (whoever avails input tax...