Penalty under Section 129(1)(a) applies when owner is identified; Section 129(1)(b) invoked erroneously Issue Whether the penalty for goods detained due to the absence of an E-way bill should be calculated under Section 129(1)(a) (where the owner comes forward) or Section 129(1)(b) (where the owner does not come forward), given that the goods were accompanied… Read More »
Amount paid during investigation adjusted as Pre-deposit; Payment via Electronic Credit Ledger (ECL) held valid Issue Adjustment of Prior Payments: Whether an amount deposited “under protest” during the investigation/adjudication proceedings can be adjusted towards the mandatory 10% pre-deposit required for filing an appeal under Section 107. Mode of Payment: Whether payment of the mandatory pre-deposit… Read More »
Demand Order quashed for exceeding SCN amount; Violation of Section 75(7) Issue Whether an Adjudicating Authority can pass an order confirming a demand (Tax + Penalty) of Rs. 38.61 Lakhs when the Show Cause Notice (SCN) issued under Section 73 only proposed a demand of Rs. 5.11 Lakhs, effectively violating the statutory cap under Section… Read More »
SCN quashed for demanding ITC reversal from buyer without action against defaulting supplier Issue Whether the Department can initiate proceedings under Section 73 to deny Input Tax Credit (ITC) to a bona fide purchaser solely because the supplier failed to remit the tax, without first invoking the discrepancy-matching mechanism under Section 42 and taking recovery… Read More »
System-generated GST Cancellation SCN without Officer’s Name/Office held invalid Issue Whether a Show Cause Notice (SCN) for cancellation of GST registration is valid if it is purely “system generated” and fails to mention the name, designation, or office of the issuing authority, and whether a cancellation order based on such a defective notice can be… Read More »
Writ petition not entertained due to Alternative Remedy; Petitioner relegated to Appellate Authority with interim protection Issue Whether the High Court should entertain a Writ Petition challenging an adjudication order on the grounds of natural justice violation (non-supply of documents/denial of cross-examination) when an effective statutory remedy of appeal under Section 107 of the GST… Read More »
Negative blocking of Electronic Credit Ledger under Rule 86A held impermissible; Restriction limited to available balance Issue Whether the Department can validly invoke Rule 86A to block an amount exceeding the available balance in the Electronic Credit Ledger (ECL), thereby creating a “negative balance,” or if the power to restrict is limited only to the… Read More »
IMPORTANT GST CASE LAW 09.12.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 11 (Exemption) Kerala Academy for Skills Excellence, In re Fees received by a State Skill Mission entity from skill partners who are not NSDC/SSC-approved for the relevant schemes are not exempted under Entry 69 of Notification No. 12/2017-CT (Rate), especially… Read More »
Share of fees from Training Partners taxable; ITC allowed even if expenses paid via Government Grants I. GST on Skill Development Training Fees Issue Whether the share of fees received by a State Skill Development Mission from its training partners is exempt from GST under Notification No. 12/2017-Central Tax (Rate). Whether fees collected directly from… Read More »
“Negative Blocking” of Electronic Credit Ledger held illegal; Blocking limited to available balance Issue Whether the tax authorities, under Rule 86A, can block an amount in the Electronic Credit Ledger (ECL) that exceeds the actual available balance, thereby creating a “negative balance” or a lien on future credits. Facts The Action: The Department issued a… Read More »