Goods and Services Tax

CGST Delhi South Commissionerate detects fraudulent availment of Input Tax Credit (ITC) of around Rs.60.59 crore through bogus invoices valued at Rs.397.23 crore; one arrested
GST
Dated:- 29-4-2026

In another significant enforcement action against GST fraud, the Anti-Evasion Branch of CGST Delhi South Commissionerate has arrested the son of a director of the beneficiary entity in a major case involving fraudulent availment and utilisation of Input Tax Credit (ITC) of Rs.60.59 crore through bogus invoices valued at Rs.397.23 crore.

Investigation revealed that a non-functional entity was engaged in the fraudulent passing of inadmissible ITC without any actual supply of goods or services. Verification of its declared place of b

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Natural justice in GST registration cancellation: non-speaking orders without hearing were quashed and remanded for fresh adjudication.
Case-Laws
GST
HC quashed cancellation of GST registration and rejection of revocation because the show-cause notices and orders were non-speaking, lacked due consideration of the taxpayer's submissions, and were passed without affording a personal hearing. The Court held that cancellation of registration carries serious civil consequences and must comply with natural justice, including a reasoned decision. The impugned notices and consequential orders were set aside, and the matter was remanded to the original authority for fresh adjudication after hearing the petitioner and passing a speaking order.
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Natural justice in rectification proceedings requires hearing and consideration of submissions before a reasoned fresh decision.
Case-Laws
GST
The rectification order was set aside for breach of natural justice because it had been passed without affording the petitioner a hearing and without considering its submissions and documents. The Court treated this procedural illegality as the ative defect and directed de novo consideration by the designated authority. The authority was permitted to issue a fresh show cause notice, grant personal hearing, and pass a reasoned and speaking order, with all rival contentions left open for fresh adjudication.
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Reasoned adjudication required: non-speaking order quashed for ignoring submissions despite prior remand.
Case-Laws
GST
A non-speaking order passed after de novo adjudication was quashed because the authority failed to consider the petitioner's submissions, despite an earlier remand requiring a fresh, reasoned decision after hearing all contentions. The Court applied the principle that an adjudicating authority must deal with the assessee's replies and cannot cure an earlier defect by issuing a bald order. As the same infirmity persisted in the second round, the matter was remanded for fresh consideration and a reasoned order in accordance with law, with all contentions kept open.
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Time-barred GST appeals upheld, but fresh merits adjudication ordered subject to deposit and reply compliance.
Case-Laws
GST
Statutory appeals were rejected as time-barred because the delay exceeded the condonable period, and the High Court found no legal basis to interfere with that appellate rejection. The dispute concerned GST assessment orders arising from return mismatches, with intimations already issued, so no further interference was warranted on that record. However, on the petitioners' express consent, the Court directed fresh adjudication on merits after payment of the balance disputed tax or required disputed tax, as applicable, and filing replies with supporting documents; the impugned orders were treated as addenda to the show cause notices. Any bank attachment was to stand vacated only upon compliance with those conditions.
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Director's personal bank account cannot be attached for company tax dues; only separate penalty liability may be recovered.
Case-Laws
GST
Sections 89(1) and 174(2)(e) of the CGST Act could be used only to recover liabilities that had already crystallised under the earlier regime. The High Court held that Section 87 of the Finance Act, 1994 did not permit recovery of a company's tax dues from its directors' personal assets, and the garnishee power in Section 87(b)(i) could not justify attachment of a director's personal bank account for the company's liability. Recovery could proceed only for the separate penalty imposed on the director under Section 78A, and because that penalty had been paid, the lien over the remaining balance was unsustainable.
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Natural justice in GST cancellation demands disclosure of relied-upon material before deciding revocation and related proceedings.
Case-Laws
GST
Natural justice requires disclosure of relied-upon inspection material before deciding revocation of GST registration cancellation. The Court directed the authorities to furnish the inspection material, the director's letters, and the Chartered Accountant's letter through proper channel, allow the petitioner to file a supplementary reply, hear the petitioner, and then decide the pending revocation application. It also directed adjudication of the pending DRC-01 proceedings for the relevant tax period. No final determination on the merits of the cancellation was made; the operative emphasis was on a fair opportunity to meet the material relied upon before orders are passed.
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Statutory university affiliation fees were held outside GST as a non-commercial educational function and, alternatively, exempt educational services.
Case-Laws
GST
GST was held not to apply to affiliation fees collected by a statutory university because granting affiliation under the State university law was part of its regulatory and educational mandate, not a commercial supply in the course or furtherance of business. The Court held that Sections 7 and 9 of the CGST Act could not be used to characterise such statutory functions as taxable services, and therefore the demand under Section 74 lacked jurisdiction. In the alternative, the Court held that affiliation-related activity would also fall within the exemption for educational services, since affiliation forms part of the educational framework for admissions, courses and degree conferment.
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AI, IndiGo, SpiceJet seek ATF price relief; say airline industry on verge of 'stopping operations'
GST
Dated:- 28-4-2026
PTI
Mumbai, Apr 28 (PTI) Air India, IndiGo and SpiceJet have told the government that the country's airline industry is under extreme stress and on the verge of “stopping operations”, as they sought revision in ATF pricing and financial support.

The West Asia turmoil has pushed up oil prices, and airspace restrictions have increased airlines' operating costs, especially on long-haul routes. Aviation Turbine Fuel (ATF) accounts for around 40 per cent of a carrier's operational expenses.

Against this backdrop, the Federation of Indian Airlines (FIA) has written to the civil aviation ministry, seeking steps

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or immediate and meaningful financial support to tide over the current situation,” it said in a letter on April 26.

Also, the airlines have sought temporary deferment of excise duty on ATF, which is at 11 per cent.

“With the abnormal increase in ATF prices from the pre-crisis period, adding rupee depreciation to the increased prices, the 11 per cent excise duty also increases manifold for the airlines and adds to the ATF price as a big impact on airlines,” they said.

Last month, the government limited the hike in ATF price to Rs 15 per litre for domestic operations, but for international operations, the price rose by Rs 73 per litre.

The airlines said the situation has practically made international operations, along with domest

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Approved resolution plan barred continued recovery action and compelled unblocking of input tax credit.
Case-Laws
GST
An approved corporate insolvency resolution plan was treated as ative, and because the State had not lodged its claim in the insolvency proceedings and its challenges to the approval order had failed, it could not continue the impugned recovery action or keep the petitioner's input tax credit blocked. The Court quashed the notice and directed unblocking of the ITC and release of the amount admissible in law. This relief was granted without prejudice to any other recovery action that may remain available to the State under law.
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Consideration of audit report in input tax credit dispute led to remand for fresh adjudication.
Case-Laws
GST
Wrongful availment and distribution of input tax credit was interfered with because the competent authority had not considered the petitioner's audit report and other material on record. The petitioner claimed the Section 65(6) audit report gave a clean chit for the disputed input tax credit distributed by the ISD for 2018-19 and 2019-20, and the respondents placed no rebuttal to that plea. The High Court held that the impact of the audit report required adjudication, set aside the impugned order, and remanded the matter for fresh decision after considering both sides' submissions. All merits, including the show cause notice and objections, were left open.
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Documentary evidence and cooperation justified anticipatory bail in a GST input tax credit investigation despite economic offence allegations.
Case-Laws
GST
Anticipatory bail was granted in a GST investigation for alleged wrongful availment of input tax credit because the allegations rested mainly on documentary material, the relevant records had already been furnished, and no compelling basis for custodial interrogation was shown. The Court also relied on the petitioner's cooperation with the inquiry, absence of placed criminal antecedents, and deposit of the amount alleged to have been evaded. On that basis, arrest was found unwarranted, and pre-arrest protection was allowed subject to conditions requiring surrender, execution of bond, regular appearance, travel restriction, and full cooperation with the investigation.
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Writ jurisdiction for lack of officer competence under GST upheld; adjudication quashed for absence of proper authorisation.
Case-Laws
GST
Writ jurisdiction remained available because the challenge went to the very competence of the officer who passed the GST adjudication order, and an alternative remedy does not bar interference where the impugned action is alleged to be without jurisdiction. Reading Section 2(91) of the CGST Act with Section 6 of the Union Territory GST Act, the HC held that a State tax officer can act as a proper officer only subject to notification issued on the Council's recommendation. As no such recommendation existed authorising the officer concerned, the adjudication was invalid and was quashed, with liberty to the competent authority to pass a fresh order in accordance with law.
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Retrospective input tax credit relief under Section 16(5) overrides Section 16(4), requiring fresh reconsideration of the claim.
Case-Laws
GST
A HC held that the retrospective insertion of Section 16(5), with a non obstante clause overriding Section 16(4), permitted a registered person to avail input tax credit for the specified financial years if the Section 39 return was filed up to 30.11.2021. Because the return here had been filed on 28.11.2020 for the January to March 2020 period, the claim fell within that extended statutory window and could not be rejected as time-barred under Section 16(4). The impugned order and summary order were set aside, and the matter was remitted for fresh adjudication under Section 16(5), leaving other contentions open.
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GST detention penalty requires a speaking order on the show cause notice; payment alone does not end adjudication.
Case-Laws
GST
Payment of the demanded tax, penalty and fine in GST detention and confiscation proceedings did not dispense with the proper officer's duty to adjudicate the show cause notice by a formal, reasoned order. The Court held that consideration of the taxpayer's reply and issuance of a speaking order are part of natural justice and necessary to preserve the statutory appellate remedy. Because the release order did not amount to final adjudication and no reasoned order had been passed, the penalty order could not stand and was set aside. Liberty was granted to pass a fresh speaking order after personal hearing and complete the statutory summary.
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Provisional attachment under GST may be relaxed when substitute security protects revenue and business operations can resume.
Case-Laws
GST
Provisional attachment of bank accounts under GST can be relaxed where substitute security adequately protects revenue. The High Court accepted the petitioner's fixed deposit as sufficient security, permitted operation of the attached accounts, and quashed the attachment only to that extent. The investigation, scrutiny of invoices and other material, and any future show cause notice were left unaffected. The deposit was directed to remain available for adjustment against any liability finally determined, and to be returned with accrued interest if the final adjudication favoured the petitioner.
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Input tax credit blocking based only on cancelled registration fails after restoration, with credit allowed to be used in law.
Case-Laws
GST
Blocking of input tax credit could not be sustained where the impugned action rested solely on cancellation of GST registration and that registration was later restored. Once the cancellation ceased to exist, the foundation for blocking the credit disappeared, and the communication was liable to be withdrawn. The HC therefore quashed the blocking communication and held the petitioner entitled to utilise the input tax credit in accordance with law. Other contentions were not examined on merits and were left open.
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Provisional attachment under the CGST Act ends once a final order under Section 74 is passed.
Case-Laws
GST
A provisional attachment of a bank account under the CGST Act does not continue after a final order is passed under Section 74. Applying the Supreme Court ruling in Om Prakash Gupta, the High Court held that the earlier attachment ceased on the passing of the final adjudication order and no separate adjudication on the attachment was required. The matter was disposed of on that basis.
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Multiple tax periods cannot be clubbed in one GST show cause notice; year-wise limitation and liability apply separately.
Case-Laws
GST
A show cause notice under the CGST Act cannot club multiple financial years into one proceeding, because liability, annual return compliance and limitation operate separately for each tax period. A single notice combining distinct years would impermissibly aggregate different due dates and limitation consequences; the impugned notice was therefore quashed. The Court also held that, within the State, its own later decisions on this point were binding, and the contrary Delhi High Court view could not prevail. The Supreme Court's in limine dismissal of the challenge to that view did not attract merger and did not displace the binding effect of the Court's decisions. Liberty was reserved to issue a fresh notice in accordance with law.
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Statutory interest on delayed refund accrues automatically after expiry of the six-month period; principal cannot be paid alone.
Case-Laws
GST
Interest on a delayed refund accrued automatically once the statutory six-month period expired without payment, and the department could not release only the principal while withholding the interest component. The High Court held that the statutory mandate required interest to be computed from the day after expiry of the six-month period until disposal, and directed payment of the interest within two weeks. It further directed that any further default would attract interest at 18% per annum from 16.02.2026 until actual payment, recoverable from the officer responsible rather than the State exchequer.
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Mandatory GST pre-deposit governs appeal filing; merits can be examined only after a valid appeal with delay condonation.
Case-Laws
GST
Under GST, a statutory pre-deposit is mandatory for maintaining an appeal, and alleged payment of tax during adjudication cannot be used to bypass that requirement. Contentions going to the merits of penalty or liability must be examined only after a valid appeal is filed before the appellate authority. Where the appeal period has lapsed, the appellant may be given liberty to file the appeal with the prescribed deposit and seek condonation of delay, leaving both delay and merits for appellate consideration.
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Transitional input tax credit must be decided within Section 140's confined scope; vague appellate findings led to remand.
Case-Laws
GST
Transitional input tax credit under Section 140 must be examined within its own confined jurisdiction, and issues falling within MVAT proceedings cannot be imported without a proper Section 140 analysis. The appellate authority's findings were vague, non-speaking and did not show a legally structured consideration of the limited credit issue. The High Court therefore set aside the appellate order and remanded the matter for fresh, independent adjudication on transitional input tax credit after hearing both sides, with all contentions left open.
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GST reimbursement under works contract upheld; contractor entitled to tax refund with interest on proven payment.
Case-Laws
GST
A post-01.07.2017 works contract was held to fall under the GST regime, so the contractor could not insist on the pre-GST tax rate. Clause 42.1 was construed to entitle reimbursement of Central and State taxes actually levied and paid on completed items of work, and CGST/SGST were held covered within that expression. The absence of an incorporated Schedule A could not defeat the contractual reimbursement right. GST returns and portal statements were accepted as proof of payment. The refusal to reimburse was found arbitrary and violative of Article 14, and interest at 12% per annum was awarded from the respective dates of payment. The writ petition was held maintainable because the dispute turned on contract interpretation, not disputed facts.
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Retrospective application of amended refund formula secures inverted duty structure refund under the CGST regime
Case-Laws
GST
The HC held that Notification No. 14/2022-Central Tax amending Rule 89(5) of the CGST Rules had to be applied even to refund applications filed before 5 July 2022, following the final view in Ascent Meditech Ltd. The appellate authority's failure to consider that notification and the related clarification rendered its rejection of the refund claims unsustainable. On a composite reading of Section 54(3) and the Rules, the petitioner was entitled to refund of accumulated input tax credit arising from the inverted duty structure, and the original and appellate rejection orders were quashed.
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Clear disclosure in GST DRC-01 required for proposed penalty; ambiguity vitiates adjudication and notice must be rectified.
Case-Laws
GST
FORM GST DRC-01 must itself disclose the proposed tax, interest and penalty, because Rule 142 requires service of the statutory summary notice in the prescribed form and the noticee's right under Section 74(8) depends on clear particulars to make payment within time. A penalty demand cannot be sustained solely on recitals in an annexed detailed notice where no separate statutory form is prescribed. Ambiguity in DRC-01 as to the proposed penalty was a procedural defect and a breach of natural justice, which vitiated confirmation of penalty in the adjudication order. The order was set aside, and the authority was permitted to issue a rectified notice and proceed afresh after giving opportunity to the taxpayer.
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