Category Archives: GST

Proceedings against recipient without prior action against supplier for ITC mismatch impermissible; SCN Quashed Issue Whether the Department can initiate proceedings under Section 73 to reverse Input Tax Credit (ITC) from a bona fide purchasing dealer solely because the suppliers failed to upload returns or remit tax, without first invoking the discrepancy-matching mechanism and taking… Read More »

Supreme Court upholds refund of unutilized Compensation Cess ITC despite export on payment of IGST Issue Whether an assessee is entitled to a refund of unutilized Input Tax Credit (ITC) of Compensation Cess paid on inputs (coal), when the final goods are exported on payment of IGST (which is subsequently refunded), and the Department denies… Read More »

Proceedings deemed closed upon payment of 15% penalty when tax & interest paid pre-SCN under Section 74 Issue Whether a Show Cause Notice (SCN) issued under Section 74(1) and the subsequent demand order are sustainable when the assessee had already discharged the tax and interest liability before the issuance of the notice, and if the… Read More »

  COVID-19 limitation exclusion saves refund claim under Sec 77 for tax paid under wrong head Issue Whether the refund applications filed under Section 77 (tax paid under wrong head) for the period January 2019 to March 2022 were barred by limitation, or if they were saved by the exclusion of the COVID-19 period under… Read More »

Penalty for goods detention due to PIN code error with correct address unjustified: HC Issue Whether the detention of goods and imposition of penalty under Section 129 of the GST Act is justified when there is a minor one-digit error in the PIN code on the invoice/e-way bill, while the consignee’s address and other documents… Read More »

Imposition of interest and penalty quashed as demand cannot travel beyond SCN scope Issue Whether the adjudicating authority can legally impose interest and penalty in the final assessment order when the Show Cause Notice (SCN) issued for the relevant period proposed only the recovery of tax and contained no proposal or allegation regarding interest or… Read More »

Transporter not liable for consignor’s loading error; Vehicle seizure under Section 129(3) quashed Issue Whether a transporter can be held liable for tax evasion and have their vehicle seized under Section 129(3) of the GST Act due to a discrepancy (shortfall) in the quantity of goods compared to the E-way bill, when the error was… Read More »

GST cancellation order quashed for lack of reasoning; Suspension continued pending fresh adjudication Issue Non-Speaking Order: Whether a GST registration cancellation order is valid if it fails to assign reasons or address the documentary evidence (invoices, e-way bills, ledgers) submitted by the assessee in their defense. Suspension Validity: Whether the suspension of GST registration can… Read More »

Rejection of rectification application hindering appeal requires personal hearing; “Civil Consequence” test applied Issue Whether a personal hearing is mandatory before rejecting an application for rectification of mistake under Section 161, particularly when the alleged error (mismatch between detailed order and DRC-07) impedes the assessee’s ability to calculate the statutory pre-deposit for filing an appeal.… Read More »

Penalty for expired E-way bill quashed; GPS confirms arrival and unique engine numbers rule out evasion Issue Whether the detention of goods and imposition of penalty under Section 129 for an expired e-way bill is sustainable when the vehicle had already reached the destination within the validity period (proven by GPS) but was parked waiting… Read More »