IMPORTANT GST CASE LAWS 16.12.25

Relevant Act	Section	Case Law Title	Brief Summary	Citation
Central GST Act, 2017	Section 67 (Search & Seizure)	Korfex Industries (P.) Ltd. v. State of Rajasthan	Writ relief for release of detained goods was denied as the investigation revealed collusion to defraud revenue via fake ITC. Equitable jurisdiction under Article 226 cannot be invoked by those with inequitable conduct or misuse of the GST framework.	Click Here
Central GST Act, 2017	Section 69 (Power to Arrest)	Mukul Sharma v. Commissioner	Bail was granted to an applicant accused of GST evasion using fake firms. Since the investigation was complete, the case was documentary, and the applicant had no criminal history and had been in custody for 1.5 years, further incarceration was unjustified.	Click Here
Central GST Act, 2017	Section 74 (Demand – Fraud/Suppression)	Bp Oil Mills Ltd v. Additional Commissioner Grade-2	Invocation of Section 74 was held unwarranted where the petitioner had full documentation and banking records for purchases. Allegations of “bogus dealer” were unsustainable as there was no evidence of fraud or suppression, and the supplier’s registration had been restored.	Click Here
Central GST Act, 2017	Section 129 (Detention of Goods in Transit)	Birds RO System (P.) Ltd. v. State of U.P.	Generating an e-way bill after interception does not cure the violation of moving goods without one. Detention and penalty under Section 129(3) were legally justified, regardless of technical glitches or lack of intent to evade tax.	Click Here
Central GST Act, 2017	Section 132 (Offences & Punishment)	Nirmal Kumar Sharma v. Union of India	Due to conflicting views between coordinate benches on whether arrest warrants for economic offences can be converted into bailable warrants as a matter of right, the matter has been referred to a Larger Bench.	Click Here

For More :- Read Important GST case laws 15.12.2025