IMPORTANT GST CASE LAWS 16.10.2025 Section Case Law Title Brief Summary Citation Relevant Act Section 6 Tansam Engineering and Construction Company v. Commissioner, CGST and Central Excise, Rourkela When State GST authorities initiate proceedings (issuing a DRC-01A or SCN) for wrongful Input Tax Credit (ITC) under Section 74, Central GST authorities are barred from taking… Read More »

Confiscation of Excess Stock is Impermissible; Regular Assessment is the Correct Path. Issue Can the GST authorities resort to the harsh measure of confiscating goods under Section 130 for an alleged excess of stock found during a survey of a business premise, or is the proper legal recourse limited to initiating assessment proceedings under Section… Read More »

Detention of Goods Upheld for Lack of Delivery Challan During Weighment Trip. Issue Can goods in transit be lawfully detained and penalized under Section 129 of the CGST Act for not being accompanied by any prescribed documents (like a delivery challan), even if the movement is for a short distance to a weighbridge for which… Read More »

Waiting for a Rectification Order is Sufficient Cause to Condone a Minor Delay in Appeal. Issue Can the time a taxpayer spends waiting in good faith for a decision on a rectification application be considered a “sufficient cause” to condone a minor delay in filing a statutory appeal under the GST Act? Facts The assessee… Read More »

The Supreme Court upheld the High Court’s order, which balanced the release of recovered GST funds with conditions to secure the revenue’s interest pending an appeal. Issue What conditions can be imposed on a taxpayer for the release of an amount recovered by tax authorities, pending the disposal of a statutory appeal, to balance the… Read More »

Bail was granted in an ITC fraud case due to prolonged custody and the completion of the investigation, satisfying the triple test for bail. Issue Should regular bail be granted to an accused in a Goods and Services Tax (GST) Input Tax Credit (ITC) fraud case who has been in prolonged custody, especially after the… Read More »

Proportionate ITC Admissible on Structural Supports for Plant and Machinery Within a Works Contract. Issue Can Input Tax Credit (ITC) be claimed on specific structural steel components used exclusively to support machinery (like overhead cranes and HVAC systems) when they are part of a composite works contract for the construction of an immovable property (a… Read More »

A Show Cause Notice (SCN), not a preliminary summons, marks the formal start of a GST proceeding, and the authority that issues it first gets exclusive jurisdiction over the matter. Issue Can State and Central GST authorities conduct parallel proceedings against a taxpayer on the identical subject matter? Further, what specific action—an initial summons for… Read More »