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[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Father’s GST dues? You can’t just freeze son’s bank account.

Dept attached son’s bank account to recover deceased father’s GST arrears.

Bombay HC:

💥 Separate GST registration = separate taxable person
💥 Liability under Sec 93 must first be established through due process
💥 No notice + no hearing = illegal attachment

Court reminds:

📌 Bank attachment affects constitutional property rights under Article 300A

Recovery first, adjudication later — HC says not acceptable.

How often are coercive GST recoveries initiated without determining actual liability?

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #GSTIndia #GSTRecovery #NaturalJustice #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #TaxProfessionals #GSTUpdates #EaseOfDoingBusiness

Navin Vishwanathan vs State of Maharashtra — Bombay HC (WP No. 8709/2025)

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Can GST deny ₹20 Crore ITC just because GSTR-2A never showed it?

Karnataka HC says NO.

In a major win for taxpayers, the Court quashed a ₹20.01 Cr ITC demand raised against Biocon Ltd.

The Department compared GSTR-3B with GSTR-2A and alleged excess ITC.

The problem?

📌 FY 2018-19 GSTR-2A did not capture:
• Imports
• Import of services
• SEZ procurements

Yet ITC was denied because these credits were absent from GSTR-2A.

HC wasn't impressed.

⚖️ Key observations:

✅ Bill of Entry is the prescribed document for import ITC

✅ Section 16(2)(aa) wasn't even on the statute book during FY 2018-19

✅ Import/SEZ credits were wrongly disclosed in GSTR-3B but later corrected in GSTR-9

✅ Genuine reporting mistakes cannot defeat substantive ITC entitlement

The bigger question:

How can taxpayers be penalized for system limitations that GSTN itself later fixed?

⚖️ Biocon Limited v. State of Karnataka

WP No. 11918 of 2024 (T-RES)

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #InputTaxCredit #ITC #GSTR2A #GSTR3B #SEZ #ImportITC #GSTLitigation #GSTCaseLaw #TaxLaw #IndirectTax

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Can GST authorities recover tax from your customers before even determining your liability?

Madras HC says No.

Key ruling:

📌 Letters issued directly to customers asking them to pay the Government were quashed

📌 Recovery under Sections 79 & 83 cannot begin at the investigation/proposal stage

📌 Tax liability must first be adjudicated and crystallized

Court's message:

💥 No adjudication = No recovery

On cross-examination:

👉 Assessee argued that statements of a key witness were relied upon without allowing cross-examination

👉 HC held that cross-examination is not an absolute right in every GST dispute

👉 In ITC fraud cases, genuineness can also be proved through independent documentary evidence

Result:

✅ Pre-adjudication recovery letters quashed

✅ Assessee relegated to statutory appeal against adjudication orders

⚖️ Noordeen Enterprises v. Additional Director General & Anr.

W.P. Nos. 20547, 20549 & 20552 of 2023 | Madras HC

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #Section79 #GSTRecovery #ITC #NaturalJustice #CrossExamination #GSTLitigation #GSTCaseLaw #TaxLaw #IndirectTax

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Can GST be levied on healthcare services merely because they're routed through another hospital?

Karnataka HC says No.

Key ruling:

📌 GST exemption depends on the nature of service rendered to patients

📌 It does NOT depend on the contractual arrangement between healthcare entities

Department's argument:

👉 Assessee was providing taxable "support/manpower services" to another hospital

HC's response:

💥 Doctors, specialists, technicians and paramedical staff were directly involved in diagnosis, treatment and patient care

💥 Revenue-sharing from patient collections remained consideration for exempt healthcare services

Court also relied on CBIC Circular No. 32/6/2018-GST.

Important observation:

You cannot indirectly tax an exempt healthcare service by artificially splitting the arrangement into a taxable B2B transaction.

⚖️ Relief granted:

✅ All Section 73 SCNs quashed

⚖️ Healthcare Global Enterprises Ltd v. Assistant Commissioner of Commercial Taxes

WP No. 22236 of 2023 (T-RES) | Karnataka HC

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #HealthcareServices #GSTExemption #HospitalGST #Section73 #GSTLitigation #GSTCaseLaw #TaxLaw #IndirectTax

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Can a Director be personally penalized for the Company's GST liability?

Bombay HC says the question deserves examination.

📌 Company faced GST demand under Sec. 74

📌 Department imposed an identical ₹16+ Cr penalty on the Director under Sec. 122(1A)

Director argued:

👉 He acted only in his capacity as Director

👉 The alleged GST short-payment pertained to the Company

👉 Penalty cannot be imposed mechanically without proving direct involvement and personal benefit

HC takes note of Shantanu Sanjay Hundekari (Bombay HC), affirmed by the Supreme Court, and grants protection from recovery.

⚖️ Important principle:

GST law does not automatically make Directors liable for every Company default.

Vicarious liability must be specifically established.

⚖️ Girish Kumar Raval v. Union of India & Ors.

Writ Petition No. 4045 of 2026 | Bombay HC (Nagpur Bench)

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #DirectorLiability #Section122 #GSTLitigation #GSTCaseLaw #TaxLaw #IndirectTax #GSTAppeals #CorporateLaw

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 If nobody actually receives the GST order, has it really been 'served'?

That's the important question now before the Tripura High Court.

Taxpayer claimed:

📌 Adjudication order was never received
📌 Came to know about it only through an RTI application

Department argued:

👉 Order was uploaded on GST portal
👉 Speed Post was dispatched

But here's the catch:

💥 No proof of delivery was produced
💥 No Acknowledgement Due card was shown
💥 Even the Postal Department reportedly could not confirm delivery

Tripura HC continues protection against recovery.

A question that may affect thousands of GST disputes:

Can limitation run against a taxpayer for an order that was never effectively communicated?

⚖️ Nikhil Debnath v. Union of India & Ors.
WP(C) No. 708 of 2025 | Tripura HC

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #NaturalJustice #Section169 #GSTLitigation #GSTCaseLaw #GSTJudgment #TaxLaw #IndirectTax #CharteredAccountants #GSTUpdates

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 GST arrest challenge fails before Bombay HC.

Court upholds arrest by DGGI after finding due process was followed:

📌 "Reasons to believe" recorded and served
📌 Arrest authorization issued
📌 Grounds of arrest supplied in Hindi
📌 Family informed about arrest
📌 Magistrate satisfied before granting remand

HC reiterates:

💥 GST arrest powers will withstand judicial scrutiny where statutory safeguards are genuinely followed.

Important reminder for both taxpayers and authorities:

In arrest litigation, procedure is often as important as the merits.

⚖️ Abdul Karim v. Union of India
Criminal Writ Petition No. 42 of 2026 | Bombay HC

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #GSTArrest #DGGI #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #TaxProfessionals #GSTUpdates

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Paid ₹1.10 Cr during investigation. Dept still said "No pre-deposit, no appeal." HC intervenes.

Allahabad HC holds:

💥 Excess DRC-03 payment can satisfy Sec. 107 pre-deposit requirement
💥 Technical GSTN mapping issues cannot defeat statutory appeal rights

Court notes:

📌 DRC-03 payments are often not automatically linked to appeals
📌 GSTN has now introduced DRC-03A for mapping such payments

Important observation:

Procedure should facilitate appeals, not frustrate them.

HC goes a step further and directs issuance of State-wide administrative instructions to prevent similar hardship to taxpayers.

⚖️ Novitech Health Care Pvt. Ltd. v. Commissioner CGST & Central Excise & Ors.
Writ Tax No. 1845 of 2026 | Allahabad HC

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #DRC03 #PreDeposit #GSTAppeal #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #GSTUpdates

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 GST Appellate Order or Ctrl+C, Ctrl+V? Rajasthan HC wants answers.

Assessee demonstrated that the appellate order was allegedly a near-verbatim reproduction of the Order-in-Original.

Rajasthan HC observed:

💥 Prima facie, the appellate authority merely "copied and pasted" the adjudication order
💥 Adding a few case laws does not amount to appellate adjudication
💥 Technology cannot replace independent application of mind

The Court was so concerned that it:

📌 Summoned the appellate officer
📌 Directed filing of a personal affidavit
📌 Ordered appearance through VC
📌 Stayed both orders

A reminder:

An appeal is meant to review an order, not reprint it.

⚖️ Ircon PB Tollway Ltd. v. Union of India & Ors.
D.B. Civil Writ Petition No. 9602/2026 | Rajasthan HC

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #NaturalJustice #GSTAppeal #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #TaxProfessionals #GSTUpdates

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 The costliest GST mistake? Ignoring the SCN stage.

Taxpayer:

📌 Accepted audit observations
📌 Paid substantial tax through DRC-03
📌 Did not reply to SCN
📌 Did not dispute allegations of suppression
📌 Representative admitted liability during adjudication

Then, 10 months later, approached HC arguing:

👉 Section 74 wrongly invoked
👉 Penalty not sustainable
👉 Extended limitation invalid

Patna HC:

💥 You can't save your best arguments for the writ petition.

What is not contested during adjudication often becomes very difficult to challenge later.

Lesson:

The GST battle is usually won or lost at the SCN stage—not in the High Court.

This is precisely why engaging knowledgeable professionals at the notice stage is an investment, not a cost.

⚖️ Manju Devi Agarwal v. CBIC & Ors.
Civil Writ Jurisdiction Case No. 862 of 2026 | Patna HC

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #Section74 #SCN #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #TaxProfessionals #GSTUpdates

[GST Pro Advisory | Compliance & News @mayankagar1]

Can the auditor become the judge? Karnataka HC says first decide that question.

Assessee argued:

📌 Same officer conducted audit
📌 Same officer passed assessment order

Concern:

💥 Once an officer records findings during audit, can he impartially adjudicate the very same issues?

Karnataka HC remands matter.

Direction:

👉 Jurisdiction objection must be decided first
👉 Merits can wait

Important ruling on fairness and institutional impartiality in GST proceedings.

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag @rajendrakumarRK @BimalGST @CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #NaturalJustice #GSTAudit #GSTAssessment #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #GSTUpdates

Sumukha Ventures vs Joint Commissioner — Karnataka HC (WP No. 7772/2026)

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Congratulations GST taxpayers. New compliance requirement unlocked. 🚨

Before claiming ITC, now apparently ensure that your supplier:

📌 Files returns
📌 Pays GST
📌 Actually deposits tax with Govt
📌 Remains solvent
📌 Doesn’t disappear
📌 Doesn’t become “bogus” after 5 years
📌 And perhaps also remains morally committed to nation-building.

Because according to Gujarat HC:

💥 Even bona fide purchaser with invoice, payment, goods received & GSTR-2B reflection can lose ITC if supplier defaults.

Court says:

👉 ITC is only a “concession”
👉 Hardship to genuine buyers irrelevant
👉 You can re-avail later… whenever supplier decides to pay.

Fantastic business model:

Pay supplier. Pay GST. Lose ITC. Chase supplier. Fund Govt meanwhile.

Ease of Doing Business, but only for people who can perform forensic audits on every vendor in India.

@CAclubindia @Taxguru_in @Sudhirhalakhndi
@CAChirag @rajendrakumarRK @BimalGST @CA_HarshilSHETH @atulmodani @abhishekrajaram

#GST #GSTIndia #ITC #Section16 #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #TaxProfessionals #EaseOfDoingBusiness

Maruti Enterprise vs Union of India — Gujarat HC (R/SCA No. 18080/2023)

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Does dismantling possibility change nature of a slump sale? Madras HC to examine under GST.

Assessee argued:

📌 Windmill assets + land transferred together as one undertaking
📌 Transaction qualifies as transfer of going concern exempt under Notification 2/2017

Dept denied exemption saying:

👉 Windmills could be dismantled/sold separately

Interesting part:

💥 Order itself records that land and windmill assets were transferred together.

Madras HC notices prima facie contradiction, stays recovery.

Important case on scope of “going concern” and slump-sale exemption under GST.

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #GSTIndia #SlumpSale #GoingConcern #GSTExemption #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #GSTUpdates

Techno Electric & Engineering Co Ltd vs STO — Madras HC

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Simply depositing money into Electronic Cash Ledger does NOT mean GST is paid.

AP HC clarifies:

💥 Tax liability is discharged only when amount is actually debited/appropriated to Govt account
💥 Mere balance lying in cash/credit ledger is only a preparatory step

In this case:

📌 Assessee deposited RCM tax in ECL
📌 But failed to debit it within due date

Result:

👉 Tax liability later discharged
👉 But interest still payable for delay

Important distinction between:

💡 “Deposit into ledger” vs “Actual payment of tax”

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #GSTIndia #ElectronicCashLedger #RCM #GSTInterest #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #GSTUpdates

Sona Enterprises vs State of AP — AP HC (WP No. 31510/2024)

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Once Resolution Plan is approved under IBC, extinguished GST claims cannot be revived through ITC blocking.

Himachal HC:

💥 State failed to file claim during CIRP
💥 Resolution Plan attained finality upto SC
💥 GST authorities cannot continue recovery indirectly

Court quashes:

📌 GST SCN
📌 ITC blocking of ₹4.27 crore

Important reminder:

IBC resolution binds ALL stakeholders — including tax departments.

Can GST authorities continue coercive actions after insolvency claims already stand extinguished?

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #GSTIndia #IBC #Insolvency #ITC #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #NCLT #CharteredAccountants #GSTUpdates

Radiant Castings Pvt Ltd vs Joint Commissioner — HP HC (CWP No. 484/2024)

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Dept can issue multiple SCNs for same period on different issues… but taxpayer can’t file second refund claim for omitted invoices? Bombay HC disagrees.

HC holds:

💥 No bar in Sec 54 against subsequent refund claims
💥 Omitted invoices can be claimed later if within limitation

Court also says:

📌 GST law does not import “res judicata” into refund claims
📌 Technical objections cannot defeat legitimate refunds

Big relief where invoices get missed inadvertently in first filing.

Because apparently, procedural flexibility is not a one-way street only for the Department.

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #GSTIndia #GSTRefund #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #TaxProfessionals #GSTUpdates #EaseOfDoingBusiness

Valmet Flow Control Pvt Ltd vs UOI — Bombay HC (WP No. 14685/2025)

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Madras HC to examine refundability of excess TDS lying in Electronic Cash Ledger.

Reliance Infra says:

📌 Clients deducted excess GST-TDS u/s 51
📌 GST liability was already discharged through ITC
📌 Excess amount remained in Electronic Cash Ledger

Under GST law:

💥 Sec 49(6) permits refund of balance in Electronic Cash Ledger
💥 Refund claim filed u/s 54

However:

📌 Appellate authority reversed refund allegedly without proper verification
📌 Sec 74 also invoked despite no fraud/suppression allegation

Revenue argued:

👉 Assessee should approach GSTAT instead of HC

Madras HC has presently stayed recovery.

Important case on scope of cash refunds from Electronic Cash Ledger.

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #GSTIndia #GSTRefund #TDS #ElectronicCashLedger #Section54 #GSTAT #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Earlier GST proceedings don’t automatically block fresh action under another section/year.

Delhi HC clarifies:

💥 Sec 6(2)(b) bars parallel proceedings only when there is SAME:

📌 Subject matter
📌 Facts
📌 Contravention
📌 Tax period

Here:

👉 Sec 73 for FY 2019-20
👉 Sec 74 for alleged fake ITC in FY 2018-19

HC says: Different cause of action = separate proceedings valid.

Important clarification on scope of “parallel proceedings” under GST.

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #GSTIndia #Section74 #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #TaxProfessionals #GSTUpdates #EaseOfDoingBusiness

Ramada Engineering Industry vs Addl Commissioner — Delhi HC (WP(C) 1036/2026)

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 Missed Section 128A waiver deadline? Karnataka HC grants relief.

Dept rejected waiver application as “time-barred”.

Karnataka HC:

💥 3-month timeline under Sec 128A is directory, not mandatory
💥 “May” in provision shows flexibility, not rigid bar

Important fact:

📌 Assessee claimed order itself was never properly uploaded/served

HC orders reconsideration on merits.

Big relief for taxpayers facing technical rejection of waiver claims.

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #GSTIndia #Section128A #GSTWaiver #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #TaxProfessionals #GSTUpdates #EaseOfDoingBusiness

Sri Laxmi Borewell Agencies vs ACCT — Karnataka HC (WP No. 102773/2026)

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 West Bengal:
E-Way Bill now mandatory for intra-state movement above ₹50,000 from 1st June 2026.

Because apparently:
“Tax planning” in India became too innovative. 👀

Let’s be honest.

This move is clearly targeted at:
✅ Fake billing
✅ Circular trading
✅ Paper movement without actual goods
✅ Creative stock transfers

But as always:

A few misuse the system.
Everyone gets more compliance.

GST is slowly becoming
less about taxation and more about tracking.

Question is:

Will this actually stop evasion…
or just create newer “methods”? 🤐

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #EWayBill #GSTIndia #WestBengal #TaxPlanning #FakeInvoicing #CAIndia #IndirectTax

[GST Pro Advisory | Compliance & News @mayankagar1]

🚨 “All India Fake Registration Drive” is NOT a valid SCN reason by itself.

P&H HC quashes retrospective GST cancellation.

Why?

💥 SCN had vague allegations
💥 No specific grounds disclosed
💥 No clear proposal for retrospective cancellation

HC reminds:

📌 GST registration cannot be cancelled through template-style notices
📌 Natural justice requires precise allegations

Entire cancellation proceedings set aside.

How many GST cancellations today are based on copy-paste SCNs with zero particulars?

@CAclubindia @Taxguru_in @Sudhirhalakhndi @CAChirag
@rajendrakumarRK @BimalGST
@CA_HarshilSHETH @atulmodani @abhishekrajaram
#GST #GSTIndia #GSTRegistration #NaturalJustice #GSTLitigation #GSTCaseLaw #IndirectTax #TaxLaw #GSTJudgment #CharteredAccountants #TaxProfessionals #GSTUpdates #EaseOfDoingBusiness

Friend Enterprises vs CGST Commissioner — P&H HC (CWP-11574-2026)