Delhi High Court Upholds GST Notice Based On Income Tax Intelligence; Cautions Dept Against AI-Generated Fake Citations In SCN

The Delhi High Court in a writ petition has upheld Show Cause Notice (SCN) issued by the GST Department which was based on an intelligence, by the Income Tax Department The Division Bench, comprising Justice Prathiba M. Singh and Justice Shail Jain held the challenge to the SCN as 'premature' and noted existence of a clandestine server that revealed a parallel accounting system and...

Long-Pending GST Refund Appeals Hurt Businesses: Delhi High Court To Appellate Body

The Delhi High Court has observed that long pendency of GST appeals seeking tax refund can hurt financial front of businesses.A division bench of Justices Prathiba M. Singh and Shail Jain made the observation while dealing the plea of a foreign education consultancy company, whose appeals for tax refund have been pending since four long years.The High Court had recently held that...

Refund On Zero-Rated Supplies Cannot Be Denied Based On Deemed Export Circular: Gujarat High Court Sets Aside Recovery Orders

The Gujarat High Court has recently held that the Petitioners—100% EOUs exporting goods without payment of tax—were entitled to refund of unutilised ITC under Section 54(3) read with Rule 89(4), and that their exports did not fall within the category of “deemed exports.”The Court ruled that Circular No. 172/04/2022-GST and Rule 89(4A) were inapplicable, quashed the withdrawal and...

LiveLawBiz: Business Law Daily Round-Up: November 26, 2025

ArbitrationArbitration | Unconditional Stay On Execution Of Award Only In Exceptional Cases: Supreme CourtPower To Extend Arbitrator's Mandate Lies With Civil Court Of Original Jurisdiction, Not Appointing Court: Telangana High CourtBombay High Court Upholds Arbitral Award In Favour Of TCS; Rejects UP Assembly's 'Frustration' Claim Over Cancelled Recruitment ExamIBCPending Appeal Against...

No Authority Under GST Act To Reserve Judgement & Deliver It Later Without Issuing Notice To Assessee: Allahabad High Court

The Allahabad High Court has held that nothing under the Goods and Service Tax Act, 2017 the relevant rules, and notifications, allows the authorities to reserve judgements on the fixed date and pass them later, especially without informing the assessee. The petitioner was issued a show cause notice on 17.02.2022. The petitioner submitted a reply but the respondent passed an order...

Loss of ITC Due To Corporate Debtor's Default In GST Filing Is Not Operational Debt: NCLT Mumbai

The National Company Law Tribunal at Mumbai has recently held that operational creditors cannot claim GST-related dues arising from a corporate debtor's failure to file returns once the GST department has already lodged its own claim in liquidation. A coram of Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati rejected the appeal filed by Instakart Services...

Delhi High Court Slams GST Authorities For 'Mechanically' Cancelling Registration Of BoAt's Parent Company

The Delhi High Court has slammed the GST authorities for cancelling the registration of Imagine Marketing Ltd., the parent company of smart wearables brand boAt, without considering the company's replies.A division bench of Justices Prathiba M. Singh and Shail Jain further criticised the GST Appellate Authority, which upheld the cancellation in a 'cavalier' manner. The judges...

GST Migration Not Taxpayer's Burden: Delhi HC Directs CESTAT To Hear Appeal After Pre-Deposit Was Made Under Excise Head Due To Portal Failure

The Delhi High Court has held that where the Service Tax portal had become non-functional after the migration to the GST regime, the taxpayer cannot be compelled to make the mandatory pre-deposit strictly under the Service Tax ledger for maintainability of an appeal. The Court observed that once the deposit has already gone to the Government exchequer under the Excise Head. A...

No Further Anti–Profiteering Action Required Once Contractor Remits Residual ITC Benefit: GSTAT New Delhi

The Goods and Services Tax Appellate Tribunal (GSTAT), Principal Bench at New Delhi, has held that when a contractor voluntarily remits the residual input tax credit (ITC) benefit identified by the Directorate General of Anti‑Profiteering (DGAP) to its principal, no separate anti-profiteering action is required under Section 171 of the Central Goods and Services Tax Act, 2017...

Karnataka High Court Orders Refund Of ₹10 Crore, Says Payment During GST Search Was 'Not Voluntary' U/S 74(5) CGST Act

The Karnataka High Court held that the assessee's payment of Rs. 10 crores could not be treated as a voluntary payment under Section 74(5) of the CGST Act (Central Goods and Services Tax Act), as the DRC-03 shows 'NIL' entries for both interest and penalty. The bench observed that the 'NIL' entries clearly indicated that the payment was made by the assessee under coercion and...

Cannot Cancel GST Registration Without Passing Reasoned Speaking Order: Allahabad High Court

The Allahabad High Court has held that while cancelling GST registrations, authorities must pass reasoned and speaking orders. It held that doing otherwise would render the order unsustainable in the eyes of the law. “Once the impugned cancellation order has been passed without putting any proper notice or affording any opportunity of hearing to the petitioner, the same itself is...

GSTAT Drops Proceedings Against Eclat Serum Supplier After DGAP Fails To Trace Gujarat Firm

The GST Appellate Tribunal at Delhi recently dropped anti profiteering proceedings against Shree Suktam Enterprise, a Gujarat supplier in the chain of biotech company S R Lifesciences. The tribunal observed that the Director General of Anti Profiteering (DGAP) was unable to trace the firm or obtain evidence to determine whether the benefit of a 10 percent GST rate reduction on the skin...