Gujarat High Court Says GST Arrest Valid Though Verbatim Signed 'Reasons To Believe' Copy Was Not Supplied

The Gujarat High Court has upheld the arrest of a person accused in a fake Input Tax Credit (ITC) racket, holding that while an arrestee must be furnished the “reasons to believe” forming the basis of arrest to enable a legal challenge, failure to provide a verbatim signed copy of the Commissioner's internal note does not vitiate the arrest. "Therefore, this Court, is of the opinion that the 'reasons to believe' recorded by the Commissioner has been furnished to the petitioner, facilitating him...

Gir Forest Deputy Conservator Not Liable For Service Tax As Tour Operator, Performed Sovereign Functions: Gujarat HC

The Gujarat High Court has dismissed the Central Excise Department's appeals seeking to recover over ₹3.44 crore in service tax from the office of the Deputy Conservator of Forests over charges collected from tourists visiting Gir Forest, holding that the officer was performing sovereign governmental functions and could not be treated as a tour operator. “The respondent - Deputy Conservator of Forest was discharging his sovereign function which cannot be brought within the purview of Service...

Gujarat High Court Says Arbitral Hearing Venue Cannot Alter Contractual Seat, Rejects Kirloskar's Plea

The Gujarat High Court on 8 May held that the juridical “seat” of arbitration cannot be shifted merely because arbitral proceedings were conducted elsewhere or because the arbitral tribunal recorded such a statement in procedural minutes, where the contract required any variation to be made only through a formal written amendment. A Division Bench of Chief Justice Sunita Agarwal and Justice D.N. Ray upheld a Commercial Court order refusing to shift the arbitration seat from Ankleshwar to...

Cognizance Of SCRA Offences Requires Complaint By Government, SEBI Or Stock Exchange: Gujarat High Court

The Gujarat High Court has quashed criminal proceedings against an accused in an alleged illegal securities trading case, holding that courts cannot take cognizance of offences under the Securities Contracts (Regulation) Act on the basis of a police report alone. “A plain reading of Section 26 of the Act suggests that no court can take cognizance of any offense punishable under the Act except on a complaint made by the Central Government, the State Government, the Securities and Exchange Board...

Gujarat HC Upholds Constitutionality Of CGST Provision Denying ITC To Buyers If Supplier Fails To Pay Tax

The Gujarat High Court has on Friday upheld the constitutional validity of a GST provision that denies input tax credit to a purchaser if the supplier has not deposited the tax with the government. The court upheld the validity of Section 16(2)(c) of the Central Goods and Services Tax Act, 2017, holding that entitlement to input tax credit is conditional upon actual payment of tax to the government. Emphasising that there was no constitutional infirmity in the provision, the court held, ...

Lease Termination, Eviction During IBC Moratorium Of Gujarat Hydrocarbons And Power SEZ Invalid: Gujarat HC

The Gujarat High Court has dismissed an appeal by Gujarat Industrial Development Corporation and upheld the quashing of its decision to terminate a lease and evict Gujarat Hydrocarbons and Power SEZ Ltd during insolvency proceedings. The court held that both the termination of the lease and the eviction action were “non est, illegal and bad in law” as they were taken during the moratorium period. “Given the object of Section 14(1) of the IBC' 2016, in the facts of the present case, neither the...

Taxpayer Must Be Heard Even If They Opt Out Of Personal Hearing Under GST Law: Gujarat High Court

The Gujarat High Court recently quashed a GST demand against a registered taxpayer, holding that authorities must grant a personal hearing before passing an adverse order and cannot bypass this requirement even if the taxpayer opts out in a form. A division bench of Justice A.S. Supehia and Justice Pranav Trivedi held that the statutory mandate governing adjudication has to be strictly followed. The court said, “the option of no personal hearing taken by the petitioner, cannot override the...

Delay In GST Appeal Condonable On Showing Sufficient Cause: Gujarat High Court

The Gujarat High Court on 17 April, held that a short delay in filing an appeal under the GST regime can be condoned if the appellant demonstrates “sufficient cause”, and that appellate authorities must apply their mind to the reasons instead of mechanically rejecting appeals on limitation. A Division Bench comprising Justices A.S. Supehia and Pranav Trivedi allowed the writ petition filed by Manjulaben Vinod Patel and quashed the appellate order rejecting the appeal as time-barred. The judges...

Correct Appeal Forum Depends On Officer's Actual Rank, Not What An Order Mentions: Gujarat High Court

The Gujarat High Court on 15 April 2026 held that the appellate forum under the Customs Act, 1962 must be determined by the actual rank and statutory authority exercised by the adjudicating officer, and not by any incorrect or clerical mention in the order. A Division Bench comprising Justices A.S. Supehia and Pranav Trivedi dismissed the Department's Tax Appeal and upheld the CESTAT's order, holding that the appeal was correctly filed before the Tribunal under Section 129A of the Customs Act,...

Revised IT Return Permissible Only For Bona Fide Discovery Of Omission Or Mistake: Gujarat High Court

The Gujarat High Court on 9 April, held that a taxpayer can file a revised return under Section 139(5) of the Income Tax Act, 1961 only when it discovers a bona fide omission or wrong statement in the original return filed under Section 139(1). The provision cannot be used to make deliberate or afterthought changes. The Bench of Justices A.S. Supehia and Pranav Trivedi emphasised that a valid revised return replaces the original return for all purposes under the Act, but only when it reflects...

Failure To Exercise Due Diligence By CA Is Professional Misconduct, No Dishonest Intent Needed: Gujarat High Court

The Gujarat High Court has recently held that a Chartered Accountant can be found guilty of professional misconduct solely for failing to exercise due diligence, rejecting the argument that absence of dishonest intent shields an auditor from liability. A Bench of Justices A.S. Supehia and Pranav Trivedi, interpreting the provision in the Chartered Accountants Act that defines professional misconduct (Clause 7 of Part I of the Second Schedule), said, “Thus, a Chartered Accountant in practice...

Gujarat High Court Sets Aside Move For Income Tax Reassessment In Land Sale, Bars Differing Stand On Evidence

The Gujarat High Court has set aside a tax reassessment notice issued in a land sale case, holding that the Income Tax Department cannot rely on the same evidence to take opposite positions against the buyer and the seller.The Division Bench comprising Justice A.S. Supehia and Justice Pranav Trivedi was dealing with a writ petition challenging a notice issued under Section 148 of the Income Tax Act for Assessment Year 2020–21.The case arose from a search conducted under Section 132 of the Income...