Interim Bank Guarantee Securing Short-Paid Tax Need Not Be Enhanced to Cover Penalty for Perishable Goods Release Issue Whether an interim order directing a bank guarantee equivalent only to the alleged short-paid tax for releasing a perishable consignment should be modified to include the penalty amount. Whether the authority before whom the interim bank guarantee… Read More »
GST DAILY DIGEST 15.05.2026 Relevant Act Section(s) Case Law Title / Authority Brief Summary Citation / Notification No. CGST / APGST Act Sec. 160 / 169 Subbaiah Gas Agency vs. Assistant Commissioner of Central Tax An assessment order lacking the Assessing Officer’s signature is invalid. Mere service via uploading it on the GST portal does… Read More »
An Assessment Order Passed Against a Non-Filer Stands Deemed Withdrawn Upon Filing a Valid Return Issue Whether a best-judgment assessment order passed under Section 62(1) against a non-filer of GST returns, along with its recovery and garnishee proceedings, stands automatically withdrawn by virtue of the deeming clause in Section 62(2) if the taxpayer subsequently files… Read More »
Advance Ruling Denied for Failure to Examine Whether Land Conversion Fee Constitutes a Supply. Issue Whether the AAR and AAAR were justified in rejecting an advance ruling application by only deciding the exclusion under Section 7(2) of the CGST Act without first determining whether the payment of land conversion fees constitutes a “supply” under Section… Read More »
Adjudication Orders Passed Under Section 74 Without Granting a Mandatory Personal Hearing Are Legally Void Issue Whether the Revenue authorities can pass an adverse assessment order under Section 74 without providing a personal hearing, and whether the taxpayer’s failure to file a written reply waives the statutory requirement of a mandatory hearing. Facts The petitioner… Read More »
Section 79 Recovery Notices Do Not Require Separate Authorization or Fresh Adjudication Post Final Assessment Issue Whether a recovery notice issued to a bank under Section 79(1)(c) is legally valid if it was issued without a separate administrative authorization and without initiating fresh adjudication proceedings under Section 73 or 74, despite a prior assessment order… Read More »
Consolidated Show Cause Notice Clubbing Multiple Financial Years Under Section 74 Is Legally Impermissible Issue Whether the Revenue authorities can issue a single, consolidated Show Cause Notice (SCN) clubbing multiple financial years or tax periods under Section 74, or if they are mandatorily required to issue separate, year-wise notices. Facts The petitioner challenged a consolidated… Read More »
Admitting Liability and Making Voluntary Payments Estops a Taxpayer From Challenging Fraud-Based Demand Orders in Writ Petitions Issue Whether a taxpayer, who failed to reply to a Show Cause Notice alleging fraud/willful suppression, voluntarily deposited tax and partial interest/penalty, and admitted liability during the personal hearing, can subsequently challenge the invocation of Section 74 (fraud… Read More »
Interim Protection Granted and GST Recovery Stayed on Transfer of Leasehold Rights Awaiting Supreme Court Judgment. Issue Whether the assignment or transfer of leasehold rights in land and buildings to third-party assignees constitutes a taxable supply under Section 7 of the CGST/MGST Act, and whether interim protection should be granted to taxpayers pending the final… Read More »
Concessional IGST Rate Denied for Goods Diverted to Third-Party Manufacturer Instead of Direct Port/Warehouse Export Delivery. Issue Whether the petitioner is entitled to the concessional IGST rate of 0.1% under Notification No. 41/2017-Integrated Tax (Rate) when the manufactured packaging goods were delivered to a third-party manufacturer for filling rather than being moved directly to a… Read More »