Penalty for Delayed ITC Reversal Unjustified as Credit Reversed and No Undue Benefit Accrued Issue Whether a penalty under GST law is legally sustainable for the delayed reversal of wrongfully transitioned Input Tax Credit (ITC) on obsolete inventory, when the taxpayer voluntarily reversed the credit and maintained a sufficient credit balance throughout, resulting in no… Read More »
SCN Quashed: ASMT-12 Closure Under Section 61 Bars Future Demand on Same Issues Issue Whether GST authorities can initiate demand proceedings under Section 73 regarding specific discrepancies (such as ITC mismatches) after they have already scrutinized those same discrepancies under Section 61, accepted the taxpayer’s explanation, and formally closed the proceedings by issuing Form GST… Read More »
Premature SCN and Time-Barred Audit Quashed; Case Remanded to Pre-SCN Stage. Issue Whether a Show Cause Notice (SCN) issued before the expiry of the deadline granted to file a reply is valid, and whether an audit report issued beyond the statutory three-month limit from the commencement of audit is legally sustainable. Facts Audit Notice: The… Read More »
Ex-Parte GST Orders Set Aside as Notice on Old Portal Denied Effective Hearing to Successor. Issue Whether ex-parte GST assessment orders are legally valid when the Show Cause Notices (SCNs) were uploaded to the GST portal of the erstwhile proprietorship (which remained active but unmonitored by the successor), thereby denying the petitioner an effective opportunity… Read More »
GST Demand for Pre-Sale Dues Invalid Against Company Sold as Going Concern Under IBC. Issue Whether a GST demand under Section 73 for tax periods prior to the sale of a corporate debtor as a “going concern” during liquidation can be enforced against the successful purchaser, or if such dues are extinguished under the “clean… Read More »
Subsequent non-existence of supplier cannot invalidate past ITC; HC remands case for evidence consideration. Issue Whether Input Tax Credit (ITC) can be denied to a purchaser solely on the ground that the supplier was found non-existent during a physical verification conducted years after the transaction, especially when the adjudicating authority disregards the documentary evidence of… Read More »
Liquidated Damages for Breach of Concession Contract Are Not Taxable Consideration; GST Not Applicable Issue Whether liquidated damages imposed for material default, breach, or non-performance under a Concession Agreement constitute consideration for a taxable “supply” (such as “agreeing to tolerate an act” under Schedule II of the CGST Act), or are merely non-taxable compensation for… Read More »
ITC Denied on Land Lease Rentals for Factory Construction; Section 17(5)(d) Block Applies. Issue Whether a manufacturing company (Agratas Energy) is eligible to claim Input Tax Credit (ITC) on GST paid under Reverse Charge Mechanism (RCM) for long-term annual lease rentals of industrial land used to set up a factory, or if such credit is… Read More »
IMPORTANT GST CASE LAWS 14.11.2025 Section Case Law Title Brief Summary Citation Relevant Act 65 Varian Medical Systems International India (P.) Ltd. v. Union of India A show cause notice (SCN) issued before the expiry of time granted for pre-SCN submissions violated natural justice. The audit order passed beyond the three-month limitation was set… Read More »
GST Order Quashed; Notice Uploaded to “Hidden” Portal Tab is Not Effective Service. Issue Whether a GST Show Cause Notice (SCN) is considered “effectively served” on a taxpayer if it is uploaded only to the “View Additional Notice and Orders” tab on the GST portal, and whether an ex parte order passed as a result… Read More »