Punjab & Haryana HC Grants Regular Bail in Fake ITC Case due to Compliance with Interim Bail Issue Whether an accused in a GST fraud case involving alleged fake Input Tax Credit (ITC) and non-existent firms is entitled to regular bail, particularly when they have complied with the conditions of interim bail without misuse, have… Read More »
Mixture of Dals and Spices is a “Mixed Supply” Taxable at 5% (Highest Rate Applicable) Issue How should a pre-packaged mixture of pulses and spices (sold as ‘Mixed Talimpu Dinusulu’) be classified under GST—whether as a composite supply or mixed supply—and what is the applicable tax rate when all individual ingredients attract the same rate… Read More »
Punjab & Haryana HC Grants Regular Bail in ₹13 Crore GST Fraud Case Involving Fake ITC Issue Whether the petitioners, accused of creating fake entities and fraudulently availing Input Tax Credit (ITC) worth approximately ₹13 crores, are entitled to regular bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), considering their prolonged… Read More »
Section 74 Invocation Invalid Without Specific Finding of Fraud or Intent to Evade; Demand Quashed Issue Whether a GST demand issued under the extended period of limitation (Section 74) is legally sustainable if the adjudicating authority fails to record a specific finding that the short payment of tax or wrong availment of ITC was due… Read More »
GST Demand Based on Assumed Input-Output Ratio (2:1:3) Quashed; Evidence of Suppression Mandatory. Issue Whether an adjudicating authority can legally sustain a demand for suppressed turnover under Section 74 of the CGST Act solely by applying a theoretical input-output ratio (e.g., 2:1:3 for cement-sand-pebbles) to the inward supplies, without providing concrete evidence of actual sales… Read More »
Appellate Order Quashed for Denial of Hearing After Adjournment Request; Remanded on Condition of Additional Deposit. Issue Whether the Appellate Authority (Commissioner Appeals) violated the principles of natural justice by passing an order on the merits of the case without granting a personal hearing, specifically after the appellant had sought an adjournment for the scheduled… Read More »
Pre-Deposit Requirement Cannot be Retrospectively Applied to Penalty-Only Appeals. Issue Whether an appeal against an adjudication order imposing only interest and penalty (where tax was already paid) can be rejected for non-payment of pre-deposit, specifically when the statutory amendment mandating pre-deposit for such cases (Finance Act, 2025) was not in force at the time of… Read More »
Penalty Payment for Goods Release Doesn’t Absolve Officer from Passing Order; Refund Ordered with Interest Issue Whether the payment of a proposed penalty by a taxpayer solely to secure the immediate release of detained goods constitutes a “voluntary” admission of liability/waiver, thereby absolving the Proper Officer from passing a mandatory, reasoned order (MOV-09) under Section… Read More »
High Court Sets Aside Rejection of Rectification; Duplication of ITC Demand Must Be Examined Issue Whether the rejection of a rectification application under Section 161 of the CGST Act is legally sustainable when the petitioner demonstrates a prima facie duplication of a tax demand (excess ITC) that was already covered in a previous adjudication order… Read More »