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 »
Input Tax Credit Eligibility for Second-Hand Motor Vehicle Dealers 1. The Core Dispute: Defining the Scope of ITC Restrictions The applicant, a dealer in second-hand motor vehicles, purchases used cars from both registered and unregistered persons. To enhance market value, the dealer performs minor repairs and refurbishment (replacing spare parts, painting, etc.) and incurs various… Read More »
Denial of IGST Exemption Correction and Bill of Entry Amendment 1. The Core Dispute: Wrongful Exemption Claim on Imported Dates The petitioners, GST-registered importers, imported semi-dried dates but wrongly claimed an IGST exemption intended only for fresh dates. The Error: Consignments were cleared with Nil IGST based on this misdeclaration. The Audit: A post-clearance audit… Read More »
Inefficacy of Exclusive Portal-Based Notice Service 1. The Core Issue: Procedural Formality vs. Effective Communication The petitioner challenged an ex parte assessment order on the grounds that the department failed to provide actual notice or a personal hearing. All communications, including the Show Cause Notice (SCN), were exclusively uploaded to the GST Common Portal. Taxpayer’s… Read More »
Quashing of Best Judgment Assessment Based on Identity Confusion 1. The Core Issue: Portal-Based Data vs. Actual Identity The petitioner, a former works contractor, had closed his business in 2016 (pre-GST era) and therefore never registered under GST. However, the tax department initiated Best Judgment Assessment under Section 63, which is specifically designed for unregistered… Read More »
IMPORTANT GST CASE LAWS 12.02.2026 Section Case Law Title Core Ruling / Summary Citation S. 6(2)(b) Saraswati Spinning v. State of H.P. [Parallel Proceedings] If one authority (State/Centre) initiates adjudicatory proceedings (issues an SCN), the other is barred from starting a parallel adjudication on the same subject matter. Summons for investigation may continue, but final… Read More »
Grant of Anticipatory Bail and the Principle of Double Jeopardy 1. The Core Dispute: Repetitive Prosecution for the Same Offence The applicant was accused of the wrongful utilization of Input Tax Credit (ITC). Fearing arrest by the state authorities, the applicant filed for Anticipatory Bail. Applicant’s Stand: He argued that he had already been arrested… Read More »
Immediate Release of Perishable Goods to Established Owner 1. The Core Dispute: Ownership vs. Detention The case involved the interception of Areca nuts (supari) during transit. Despite being accompanied by a valid e-Way Bill and tax invoice, the goods were seized by the respondent authorities under Section 129. Appellant’s Stand: Claimed ownership of the consignment… Read More »
Jurisdictional Invalidity of Composite Show Cause Notices (SCNs) 1. The Core Dispute: Consolidation vs. Independent Tax Periods The Revenue department has frequently adopted a practice of “bunching” or clubbing multiple financial years into a single Show Cause Notice (SCN) or a composite assessment order. This is often done for administrative convenience or to extend the… Read More »
Determining the “Relevant Date” for Refund After Correcting Payment Heads 1. The Core Dispute: When Does the Two-Year Limitation Start? The petitioner mistakenly paid the Kerala Flood Cess (KFC) through the regular GSTR-1 portal instead of the dedicated KFC-A return. Realizing the error, the petitioner made a fresh payment under the correct head on 10.03.2025.… Read More »