Goods and Services Tax

Rs 172 crore fake input tax credit racket busted; chemical company owner held
GST
Dated:- 11-2-2026
PTI
Thane, Feb 11 (PTI) The Central Goods and Services Tax (CGST) authorities in Maharashtra's Thane have busted a racket allegedly involved in fraudulently availing input tax credit (ITC) of Rs 172 crore, and arrested a chemical company's owner for the scam, officials said on Wednesday.
The action was taken by the anti-evasion wing of the CGST and Central Excise of Thane Commissionerate.
In its probe, the commissionerate found that Bhaumik Girishbhai Gandhi, director of Florida Solvent Private Ltd, was the mastermind who fraudulently availed and passed ineligible ITC without the actual receipt and supply of goods to the tune of

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Validity of electronic assessment orders without DIN: portal reference number upheld; writ dismissed for laches.
Case-Laws
GST
Validity of electronically issued assessment orders was contested for absence of a DIN and unsigned show cause notices; the HC recorded that the assessment carried a portal-generated Reference No (auto-assigned and exclusive to that assessment) and rejected the challenge to electronic issuance on that basis. The HC also found the petitioner aware of assessment action and unable to explain delay between appeal rejection and writ filing; on the ground of laches the writ petition was dismissed. No substantive grounds raised in the petition were sustained.
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Show Cause Notice under Section 73: summary notices do not substitute formal notice; order quashed, de novo proceedings allowed.
Case-Laws
GST
Summary attachments in GST DRC-01 do not replace a formal Show Cause Notice under Section 73; the Statement under s.73(3) is distinct and cannot substitute the s.73(1) notice, and initiation without a proper Show Cause Notice is invalid – resulting in quashing of the impugned order. Notices, Statements and orders under Section 73 must be issued and authenticated by the Proper Officer as defined and in accordance with Rule 26(3); failure to provide personal hearing under s.75(4) vitiated the order – relief granted, accounts defreezed, and liberty given to initiate de novo proceedings with exclusion of the intervening period for limitation.
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Contract termination for breach due to unpaid license fees and GST; court refuses writ relief, allows contractual remedy.
Case-Laws
GST
The licence agreement is a binding contract whose express terms require timely payment of licence fee, GST and interest; the petitioner breached those obligations by accruing substantial arrears, and the court treated the GST obligation as a statutory levy not excluded by the contract-consequence: petitioner's confusion on GST rejected. The existence of an in contract dispute resolution/alternative remedy led the court to decline exercise of extraordinary writ jurisdiction under Article 226 and dispose of the writ petition, while permitting the petitioner to pursue remedies provided in the agreement.
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Place of business and GST registration for repair and maintenance services: HO in Maharashtra, no separate Odisha registration required.
Case-Laws
GST
Location of supplier and 'place of business' depend on where the supplier ordinarily runs the business; therefore the place from which supplies are made determines the location of services – outcome: services are located at the Head Office (HO). Whether FSEs constitute an agent or create a place of business was addressed by noting FSEs are employees who do not contract with customers independently and can be withdrawn by the HO – outcome: FSE presence in Odisha is not a separate place of business or fixed establishment. Registration liability follows the supplier location; outcome: no separate GST registration required in Odisha.
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Admissibility of advance ruling on GST liability for healthcare supplies rejected due to identical pending departmental proceedings and delayed filing
Case-Laws
GST
Admissibility of an advance ruling was denied because identical questions were already subject to departmental scrutiny and adjudication, so the proviso barring applications where proceedings are pending applied. The applicant filed an online application after the assessing officer issued a GST assessment notice and only completed manual submission years later after insistence, failing to supply required enclosures timely under prescribed filing procedures. The adjudication established demands following return mismatches and confirmed tax liability arising from claiming the enhanced threshold exemption while remaining voluntarily registered and not remitting tax. Consequence: the advance ruling application is rejected as inadmissible.
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Advance ruling on refund of unutilised input tax credit for inverted duty structure: application rejected as out of scope and inadmissible
Case-Laws
GST
Advance ruling sought on eligibility for refund of unutilised input tax credit arising from an inverted duty structure for manufacture and outward supply of cotton yarn; AAR holds that refund query falls outside the enumerated matters under the provision governing advance rulings and is therefore not maintainable, resulting in rejection of the application. AAR further finds the application inadmissible because the applicant is a consultant raising questions on behalf of a client and the question does not relate to supplies undertaken or proposed by the applicant; outcome: application liable to be rejected. AAR notes advance rulings may be void ab initio if obtained by fraud or suppression and that rulings bind the applicant and concerned officer.
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Royalty for mining rights treated as licensing services; GST applies and tax payable by recipient under reverse charge.
Case-Laws
GST
Royalty payments for mining leases are consideration for licensing services to excavate and explore minerals, not sale of goods; they therefore fall under licensing services for the right to use minerals (SAC 997337) and attract GST at 9% CGST + 9% SGST (total 18%). The supply is a taxable service provided by the State to a business and tax liability arises on the recipient under the reverse charge mechanism. The service cannot be classified as supply of goods attracting a 5% rate under the transfer-of-title entry and is therefore not chargeable under that entry.
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Andhra govt exempts Rs 20 crore stamp duty, registration fees for BPCL refinery, petro complex
GST
Dated:- 10-2-2026
PTI
Amaravati, Feb 10 (PTI) The Andhra Pradesh government has exempted stamp duty and registration fees amounting to over Rs 20 crore in favour of BPCL to facilitate the setting up of a greenfield refinery and petrochemical complex near Ramayapatnam Port in Nellore district.
G Sai Prasad, special chief secretary (FAC), Revenue (Registration. II) Department said the exemption pertains to the transfer of over 600 acres of land in Chevuru village, Gudluru mandal of Nellore district from Andhra Pradesh Maritime Board (APMB) to Andhra Pradesh Industrial Infrastructure Corporation (APIIC) and in turn from APIIC to BPCL

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s flow from the Andhra Pradesh Industrial Development Policy 4.0, launched on October 16, 2024.
In May 2025, the government accorded permission to APMB chief executive to transfer 6,000 acres of land from the maritime board to APIIC to complete the process of allocation of lands to Bharat Petroleum Corporation Ltd's (BPCL) project, exempting stamp duty and registration fees.
Though the Inspector General of Registration and Stamps had stated that the total value of the land stretching up to an extent of 600.4 acres as per market value basic register is over Rs 17.9 crore, the APIIC appraised it at over Rs 136 crore at the rate of Rs 22.6 lakh per acre.
Further, the Inspector General of Registration and Stamps stated that Nellore district

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Power to summon under Section 70 of CGST Act affirmed; summons not detention and compensation claim dismissed.
Case-Laws
GST
Power to summon under Section 70 of the CGST Act permits issuance of summons for inquiry and such attendance does not by itself constitute arrest or illegal detention; therefore no seven day prior notice is mandated by Section 70 and Order XVI C.P.C. requirement was held inapplicable. The petitioner attended and acknowledged multiple summonses without objection, was allowed mobile access and voluntary presence at GST Bhavan, and only upon ascertainment of involvement was arrested and produced before a Magistrate. The claim for compensation for alleged illegal detention was rejected and the petition dismissed.
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Service by uploading on GST portal and condonation of delay – Appellate Authority to reconsider and hear the appeal if delay excused
Case-Laws
GST
High Court considered condonation of delay where an adjudication order was allegedly served only by uploading on the GST portal; limitation does not commence if service was not properly effected. The HC observed the grounds for condonation were not previously presented to the Appellate Authority but granted the petitioner an opportunity to reapply within three weeks with supporting explanations and documents. The Appellate Authority must reconsider the condonation application in light of the Division Bench precedent in M/s Ram Kumar Sinhal and related judgments; if satisfied the delay is excusable or service was ineffective, it shall hear the appeal and the impugned appellate order will be set aside.
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Masala Paan classification as mixed supply and taxable as miscellaneous edible preparation; taxed at 18%.
Case-Laws
GST
Masala paan comprises multiple equally necessary ingredients, so it does not qualify as a composite supply with betel leaf as the principal supply; therefore it is a mixed supply with no single principal component. Applying mixed supply analysis and tariff interpretation, the product lacks a specific entry in Chapter 21 and falls to the residual classification as a miscellaneous edible preparation. The consequence is classification under HSN heading for miscellaneous edible preparations and taxation at 18% under the applicable GST schedule entry.
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Composite supply of hospital inpatient services treated as health care principal supply; room rent above Rs.5000/day remains taxable.
Case-Laws
GST
Tax treatment of bundled hospital charges was assessed: supplies to in patients (room, tests, medicines, consumables and care) constitute a composite supply with healthcare services as the principal supply under Section 2(30). Consequently the composite transaction is classifiable as inpatient health care and falls within the exemption scope of SI. No.74 read with section 8(a), but the proviso excludes exemption for room charges (other than ICU/CCU) when room rent exceeds Rs. 5,000 per day; such excess room rent is taxable even though other components remain exempt.
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Supply of canteen services to employees as business activity; recoveries are taxable while unrecovered perquisites are exempt
Case-Laws
GST
Supply of canteen services to employees falls within “in the course or furtherance of business” and therefore qualifies as supply under section 7(1), because incidental or ancillary activities connected to main business are covered; outcome: the activity is taxable as supply. Provision of canteen by a third party provider to the employer is a supplier-recipient transaction and the employer's recoveries from employees constitute consideration; outcome: amounts recovered from employees are subject to GST. Free or concessional canteen benefits constitute perquisites; outcome: only the concession portion is exempt as perquisite (non taxable), and unrecovered value is not taxable.
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Remand for fresh hearing after appellate authority failed to consider documentary evidence; appeal quashed and remanded.
Case-Laws
GST
Appellate authority failed to consider documentary evidence already placed before the adjudicating authority; accordingly the appellate order is quashed and the matter remanded for fresh hearing requiring consideration of those documents. The petitioner did not appear at the scheduled personal hearings despite service of notices, and the court found absence of fault in the appellate authority's decision to proceed given nonappearance; however the appellate authority was nevertheless obliged to examine the documentary record when adjudicating the appeal, and its failure to do so determined the remand outcome.
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Retrospective registration cancellation challenged for lack of reasons and prior notice, review petition dismissed as not maintainable
Case-Laws
GST
Retrospective cancellation of registration was found invalid because the Show Cause Notice lacked reasons supporting retrospective action and the petitioner was not placed on prior notice; that defect rendered the impugned order void. The review petition sought to reopen arguments already concluded in adjudication, but review jurisdiction cannot serve as an original hearing; therefore reopening overruled contentions was impermissible. The court found no manifest or material error on the face of the record amounting to a miscarriage of justice and accordingly dismissed the review petition.
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Condonation of delay in GST appeal under extended one month period leads to remand for adjudication on merits.
Case-Laws
GST
Section 107(4) of the Act allows the Appellate Authority to condone delay by permitting an appeal to be filed within an additional one month period if the appellant shows sufficient cause for missing the primary three or six month window; therefore a 15 day delay justified by non fanciful grounds cannot be defeated by a hyper technical threshold dismissal. The High Court found the respondents' insistence on an earlier cutoff date legally unsustainable, set aside the earlier order, condoned the delay, and remitted the matter to the appellate authority for adjudication on merits.
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Tax determination against deceased proprietor invalid where no notice to legal representative; appeal rejected without addressing jurisdictional defect.
Case-Laws
GST
Proceedings and a determination under the tax recovery provision were initiated and concluded against a sole proprietor who had died before the show cause notice; the court found the proceedings defective because no notice was directed to the legal representative after death, rendering initiation and the resulting order invalid. The appellate authority rejected the subsequent appeal on limitation without addressing this jurisdictional defect; because the procedural flaw went undecided by the appellate body, the impugned order could not be sustained and the writ challenging the determination was disposed of in favour of the petitioner.
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Revocation of GST registration and permission to file blocked returns; conditional defreezing of bank accounts after security and instalment application.
Case-Laws
GST
Revocation of cancelled GST registration was directed to be pursued by petitioners so they can file blocked GSTR-1 and GSTR-3B returns; outcome: court granted liberty to apply for revocation and for permission to file returns. Petitioners may apply for payment of outstanding tax by instalments under the statutory scheme; outcome: bank accounts will be defrozen on filing such application and providing sufficient security. Security must satisfy the regional GST rule on security for tax recovery. Administrative outcome: petitioners given one week to file applications and authorities two weeks to dispose of them.
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Input Tax Credit denial tied to supplier non filing of GSTR 3B; appellate order set aside for exceeding notice grounds and remanded for fresh hearing
Case-Laws
GST
Denial of input tax credit was grounded solely on the supplier's non-filing of Form GSTR-3B; when the supplier subsequently filed returns for the disputed months the original demands were rightly dropped for those months but remained for the month still unfiled. The appellate authority relied on additional grounds not pleaded in the notice to show cause, contrary to the principle that adjudication must remain within the confines of the notice. Because adjudication on extraneous grounds breaches the obligation to afford a hearing on those grounds, the appellate order was set aside and the matter remitted for fresh decision after affording an opportunity to be heard.
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Right to access seized electronic evidence: impugned adjudication treated as additional show cause notice, remand for fresh hearing and return of materials.
Case-Laws
GST
Right to access seized documents and electronic evidence requires that the adjudicating authority provide the affected party a meaningful opportunity to participate; absence of returned seized material prevented effective defence and appeal. The impugned adjudication is treated as an additional show cause notice, and the authority must hand over seized documents or copies and the seized CPU, allow a two week composite reply period from receipt, and conclude proceedings after affording an opportunity of hearing. The court remanded the matter for fresh adjudication and left all merits open to the adjudicating authority.
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Limitation and rectification under UPGST Act: appeals held maintainable despite delay where rectification was sought and deposits made.
Case-Laws
GST
Abeyance of limitation applies where a rectification application under the GST statute was pending; the time spent pursuing rectification is excluded and the appeal is maintainable despite delay, the Court applying the principle of bona fide pursuit before a wrong forum and directing the appellate authority to decide on merits. Because the petitioner deposited 10% in the leading matter and 25% in the connected matter, the appeals are to be treated as not barred by delay, and the appellate authority must decide them on merits within two months. Writ petitions disposed accordingly.
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Presumption of constitutionality for subordinate legislation and board directions under CGST act; challenged circular upheld, summons rescheduled.
Case-Laws
GST
A High Court reaffirmed the presumption of constitutionality for subordinate legislation and held that the central board may issue orders, instructions, or directions to Central Tax Officers to secure uniform implementation; those officers and implementation staff must follow them. The court accepted that assignment of functions to Central Tax Officers may be proposed by the Commissioner in the Board and approved by the Board, and therefore found no basis to invalidate the challenged administrative circular dated 5 July 2017. The writ petition was partly allowed only to reschedule compliance with a summons to a new date, and the challenge to the circular was dismissed.
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Service by uploading on GST portal may be insufficient; officer must use alternative modes, remand allowed subject to deposit.
Case-Laws
GST
When a tax notice was uploaded only on the GST portal and the recipient did not receive the original, the uploading was held insufficient to afford an effective personal hearing; the issuing officer must explore alternative modes of service (including registered post with acknowledgment) before proceeding ex parte. The impugned assessment was set aside for lack of opportunity of hearing and the matter remanded for fresh consideration, subject to the condition that the taxpayer deposit 25% of the disputed tax within four weeks; the setting aside takes effect from the date of that payment.
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Rectification and assessment dispute: conditional bank attachment vacated after 25% deposit; appeal may be decided on merits.
Case-Laws
GST
Rectification proceedings and assessment dispute concerning a tax demand were addressed by conditioning interim relief on a partial deposit: the taxpayer must deposit 25% of the disputed tax and have no other outstanding tax arrears for the bank attachment to be vacated. The appellate authority is permitted to decide the statutory appeal on merits even if limitation issues exist, provided the appeal is filed within the prescribed period. Failure to comply with the stipulated conditions permits the tax authority to resume recovery as if the petition were dismissed. Writ petition disposed accordingly.
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