Mandatory Refund of Recovered Tax Dues Beyond Pre-Deposit Where GST Tribunal Is Not Operational 1. The Core Dispute: Recovery vs. Right to Appeal The petitioner’s tax dues were recovered by the Revenue department following a “Summary of Demand” (Annexure-C). The petitioner intended to challenge this order before the GST Appellate Tribunal (GSTAT) under Section 112,… Read More »
Quashing of Consolidated Show Cause Notices and Composite Assessment Orders Covering Multiple Financial Years 1. The Core Dispute: “Bunching” of Multiple Financial Years The tax authorities issued a single consolidated Show Cause Notice (SCN) to the petitioner, covering a span of five financial years (from 2019-20 to 2023-24). Subsequently, a single composite assessment order was… Read More »
Quashing of Illegal “Negative Blocking” of Input Tax Credit Beyond Available Ledger Balance 1. The Core Dispute: Creating an Artificial “Debt” via Rule 86A During the period from January 2025 to October 2025, the tax authorities blocked the petitioner’s Electronic Credit Ledger (ECL) under Rule 86A. The block was not limited to the balance currently… Read More »
IMPORTANT GST CASE LAWS 17.02.2026 Section Case Law Title Core Ruling / Summary Citation Section 54 Union of India v. Torrent Power Ltd. [Landmark SC Ruling] If tax incidence (IGST on ocean freight) was passed to consumers, the refund must go to the Consumer Welfare Fund, not the company. Click Here Rule 86A Dua Metals… Read More »
Condonation of Delay and Amnesty Window (CBIC Notification No. 53/2023) 1. The Core Dispute: Amnesty Scheme vs. Statutory Timeline The petitioner, a registered works contractor, failed to file an appeal within the normal 120-day statutory period against an assessment order (Ext.P2). However, on November 2, 2023, the CBIC issued Notification No. 53/2023 (Ext.P5), which provided… Read More »
Reconciliation and Remand in GSTR-1 vs. GSTR-3B Mismatch Cases 1. The Core Dispute: Return Mismatch vs. Fraud Allegations The appellant faced a tax demand of approximately ₹27 Lakhs due to a discrepancy between the outward tax liability declared in GSTR-1 (higher) and the tax paid in GSTR-3B (lower) for FY 2018-19. Proper Officer’s Stand: Initially… Read More »
Quashing of Consolidated SCN and Composite Assessment Orders 1. The Core Dispute: “Bunching” of Multiple Financial Years The primary legal challenge was the practice of “bunching”—where the tax department issues a single Show Cause Notice (SCN) and a single Assessment Order covering multiple financial years (e.g., FY 2019-20 to 2023-24). Petitioner’s Stand: Argued that each… Read More »
Supreme Court Reverses Direct Refund of Unconstitutional Ocean Freight Tax 1. The Core Dispute: Unjust Enrichment vs. Class Restitution The petitioner, a power distribution company, paid IGST and Service Tax on ocean freight for natural gas imports on a CIF (Cost, Insurance, and Freight) basis. Following the landmark Mohit Minerals judgment, which declared the levy… Read More »
Portal Upload Alone Is Not “Effective Service” if Taxpayer Is Unresponsive 1. The Core Dispute: Digital “Empty Formalities” vs. Natural Justice The tax authorities issued a Show Cause Notice (SCN) and subsequent reminders solely by uploading them to the GST portal. Because the petitioner did not respond to these digital notifications, the Assessing Officer (AO)… Read More »
High Court Quashes “Negative Blocking” of Electronic Credit Ledger 1. The Core Dispute: “Negative Blocking” Beyond Available Credit The tax authorities used Rule 86A to block the Electronic Credit Ledger (ECL) of several taxpayers. However, since the petitioners had little or no balance in their ledgers at the time, the officers created an artificial negative… Read More »