ITC Allowed on Insurance for Stock & Premises; Section 17(5) Block Limited to Motor Vehicles. Issue Whether Input Tax Credit (ITC) availed on insurance premiums for stock, plant & machinery, and business premises (under a Standard Fire and Special Perils Policy) can be denied by treating it as “motor vehicle insurance” under the blocked credit… Read More »
MGO Charges for Short-Lifting Natural Gas are Not Liable to GST. Issue Whether “Minimum Guaranteed Off-take” (MGO) charges collected by a supplier from a buyer for short-lifting of natural gas (i.e., lifting less than the contracted quantity) constitute consideration for a taxable service of “agreeing to tolerate an act” or are merely non-taxable liquidated damages/compensation… Read More »
Ex Parte Order Quashed for Being Passed on Non-Notified Date Without Hearing Issue Whether an adjudication order passed under Section 74 of the GST Act is legally valid if it is passed ex parte on a date different from the one fixed for the personal hearing, without issuing any fresh notice to the taxpayer for… Read More »
Punjab & Haryana HC Grants Regular Bail in Fake ITC Case due to Compliance with Interim Bail Issue Whether an accused in a GST fraud case involving alleged fake Input Tax Credit (ITC) and non-existent firms is entitled to regular bail, particularly when they have complied with the conditions of interim bail without misuse, have… Read More »
Mixture of Dals and Spices is a “Mixed Supply” Taxable at 5% (Highest Rate Applicable) Issue How should a pre-packaged mixture of pulses and spices (sold as ‘Mixed Talimpu Dinusulu’) be classified under GST—whether as a composite supply or mixed supply—and what is the applicable tax rate when all individual ingredients attract the same rate… Read More »
Punjab & Haryana HC Grants Regular Bail in ₹13 Crore GST Fraud Case Involving Fake ITC Issue Whether the petitioners, accused of creating fake entities and fraudulently availing Input Tax Credit (ITC) worth approximately ₹13 crores, are entitled to regular bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), considering their prolonged… Read More »
Section 74 Invocation Invalid Without Specific Finding of Fraud or Intent to Evade; Demand Quashed Issue Whether a GST demand issued under the extended period of limitation (Section 74) is legally sustainable if the adjudicating authority fails to record a specific finding that the short payment of tax or wrong availment of ITC was due… Read More »
GST Demand Based on Assumed Input-Output Ratio (2:1:3) Quashed; Evidence of Suppression Mandatory. Issue Whether an adjudicating authority can legally sustain a demand for suppressed turnover under Section 74 of the CGST Act solely by applying a theoretical input-output ratio (e.g., 2:1:3 for cement-sand-pebbles) to the inward supplies, without providing concrete evidence of actual sales… Read More »
Appellate Order Quashed for Denial of Hearing After Adjournment Request; Remanded on Condition of Additional Deposit. Issue Whether the Appellate Authority (Commissioner Appeals) violated the principles of natural justice by passing an order on the merits of the case without granting a personal hearing, specifically after the appellant had sought an adjournment for the scheduled… Read More »
Pre-Deposit Requirement Cannot be Retrospectively Applied to Penalty-Only Appeals. Issue Whether an appeal against an adjudication order imposing only interest and penalty (where tax was already paid) can be rejected for non-payment of pre-deposit, specifically when the statutory amendment mandating pre-deposit for such cases (Finance Act, 2025) was not in force at the time of… Read More »