IMPORTANT GST CASE LAWS 25.09.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 6 Lotus Valley Resort v. Union of India Where CGST officials had initially issued a Show Cause Notice (SCN) for a given period (A.Y. 2021-22 and 2022-23), the proceedings subsequently initiated by SGST officials for the same period were barred… Read More »
The rule to levy interest on a profiteered amount is prospective, not retrospective. Issue Can interest at 18% be levied on a profiteered amount for a period that occurred before the specific rule empowering the levy of such interest was introduced into the CGST Rules, 2017? Facts The Directorate General of Anti-Profiteering (DGAP) investigated the… Read More »
No penalty can be imposed for an expired e-way bill if the delay in transit was caused by a genuine, documented vehicle breakdown and there is no evidence of tax evasion. Issue Can a penalty be levied under Section 129 of the CGST Act, 2017, for an expired e-way bill when the taxpayer provides a… Read More »
GST proceedings cannot be initiated against a person who is already deceased. Issue Are show-cause notices and subsequent demand orders issued under the GST Act legally valid if they are issued in the name of a proprietor who is already deceased at the time of their issuance? Facts The petitioner was the wife and legal… Read More »
An order determining evaded sales without any reasoning is arbitrary and invalid. Issue Is an appellate order sustainable in law if it determines the amount of “evaded sales” based on “evaded purchases” but provides no reasoning or basis for its calculation, making the determination appear arbitrary? Facts Following a survey at the assessee’s business premises,… Read More »
Parallel GST proceedings by State and Central authorities for the same period are barred. Issue Can State GST authorities initiate and conclude proceedings against a taxpayer for a specific period if the Central GST authorities have already initiated proceedings on the same subject matter for that same period? Facts The Central GST authority initiated proceedings… Read More »
A taxpayer can’t belatedly challenge their changed GST status after failing to act on intimation. Issue Can a taxpayer successfully challenge their changed status from a “composition” to a “regular” taxpayer at a late stage in the proceedings, if they failed to object or take any action when they were first formally intimated about the… Read More »
A fresh hearing must be given for cancellation after a proprietor’s death during COVID. Issue Should a retrospective cancellation of a GST registration be sustained if the legal heir of the deceased proprietor was unable to respond to the show-cause notice due to the proprietor’s demise, especially when these events occurred during the COVID-19 pandemic?… Read More »
A reassessment notice is contrary to law if it gives the taxpayer less than the statutorily mandated minimum of seven days to file a reply. Issue Is a show-cause notice issued under Section 148A(b) of the Income-tax Act, 1961, legally valid if it provides the assessee with less than the minimum seven-day period to file… Read More »
A mandatory transfer to a Special Reserve under the RBI Act is considered an appropriation of profit and must be added back while calculating book profit for MAT purposes. Issue Is the amount transferred by a company to a Special Reserve, as mandated by Section 45IC of the RBI Act, 1934, an allowable deduction from… Read More »