Rule 86A allows an officer to freeze only the ITC actually available in the ledger; it does not grant the power to create a negative balance if the ledger is empty. Facts of the Case The Action: The GST authorities invoked Rule 86A to block the Input Tax Credit (ITC) of the assessee, alleging that… Read More »
Assam High Court: GST Registration Must Be Restored if All Pending Returns and Dues are Paid. The Chronology of the Case The Default: The Petitioner failed to file GST returns for a continuous period of six months. The Cancellation: Following a Show Cause Notice (SCN) and a personal hearing, the Superintendent cancelled the registration under… Read More »
GSTAT Orders Builder to Refund ₹98.72 Lakh Profiteered ITC Benefit with Interest and Penalty. Facts of the Case The Projects: Three RERA-registered housing projects—Pebbles, Hynish Tower-10, and Greens. The Investigation: Following complaints from homebuyers, the Standing Committee on Anti-Profiteering referred the matter to the Director General of Anti-Profiteering (DGAP). Re-investigation: After an initial report and… Read More »
Each financial year is a separate unit of assessment; clubbing them into one notice is a jurisdictional error that collapses the GST legal framework. Facts of the Case The Notice: The Deputy Commissioner issued one unified SCN covering a five-year block from FY 2018-19 to 2022-23. The Allegation: The Department alleged suppression of facts and… Read More »
Assam High Court Grants Bail: GST Arrest Before BNSS Notice Appearance Time is Procedurally Defective. Invalidation of GST Arrest for BNSS Procedural Defect The Facts of the Case The Investigation: The Anti-Evasion Unit conducted a search and investigation into a firm for allegedly orchestrating a ₹35 crore fake Input Tax Credit (ITC) racket through non-existent… Read More »
Odisha High Court: Limitation Period Under Section 54 Cannot Bar Refund of Duplicate GST Payments. The Dispute: Double Payment and the “Limitation” Trap A duplicate payment made by mistake is not “tax” but a “deposit”; therefore, the statutory two-year limit for tax refunds does not apply. The Chronology of the Case 08.02.2021: The Petitioner first… Read More »
Gujarat High Court: ITC Not Blocked Under Section 17(5)(d) for Land Sub-Plotting Without Construction Activity. The Dispute: Sub-Plotting vs. Construction (Section 17) ITC on goods and services used for sub-plotting land cannot be blocked under Section 17(5)(d) if no “construction” of an immovable property is undertaken. Facts of the Case The Business: The Petitioner (an… Read More »
Gujarat High Court: Limitation for GST Appeal Commences from Date of Rectification Order Rejection. The Chronology of the Case 12.08.2024: Original Adjudication Order (Order-in-Original) was passed. 05.11.2024: Within the three-month window for appeal, the Petitioner filed a Rectification Application under Section 161 to correct errors apparent on the face of the record. 19.03.2025: The Rectification… Read More »
Rajasthan High Court Quashes GST Appeal; Search Authorizing Officer Cannot Act as Appellate Authority. The Legal Maxim: “No One Shall Be a Judge in His Own Cause” The Rajasthan High Court, in the case of M/s Ramjilal Mohanlal v. Union of India (2026), recently addressed a fundamental breach of natural justice where a senior officer… Read More »
Bombay High Court Quashes Demand; Non-Supply of Verification Reports Violates Principles of Natural Justice Facts of the Case The Claim: The Petitioner, a GST-registered chemical manufacturer, claimed transitional Input Tax Credit (ITC) from the pre-GST regime using TRAN-1 and TRAN-2 forms. The Audit: The Department conducted an audit of these transitional claims and issued a… Read More »