Supreme Court Clarifies GST Summons vs Proceedings 1. Issue Involved The primary issue before the Hon’ble Supreme Court was whether the issuance of summons under Section 70 of the Central Goods and Services Tax Act, 2017 by the Central GST authorities could be construed as the “initiation of proceedings” for the purposes of Section 6(2)(b) of the CGST Act, particularly when the State GST authorities had already issued a show cause notice (SCN) on the same subject matter.The question required the Court to interpret the scope of the expression “any…

Allahabad HC Quashes GST Confiscation for Excess Stock 1. Issue Involved The central issue before the High Court was whether proceedings under Section 130 of the GST Act, which relate to confiscation of goods, can be initiated merely because excess stock is found during a survey at a taxpayer’s premises, or whether in such cases, the proper and lawful course is to initiate proceedings for tax determination under Sections 73 or 74 of the GST Act. The question essentially revolved around the scope and applicability of Section 130 in cases where…

Kerala HC: No GST Penalty for ITC Reporting Errors 1. Issue Involved he central question before the Kerala High Court was whether Section 73 of the GST Act could be invoked against a registered dealer for wrong availment or utilisation of input tax credit (ITC), when the only lapse was a technical reporting error—the bifurcation of IGST credit into CGST and SGST in Form GSTR-3B—without any actual excess credit being availed or any loss of revenue to the Government. Facts of the Case The appellant, Rejimon Padickapparambil Alex, proprietor of…

Allahabad HC: GST Demand Beyond Show-Cause Notice Quashed 1. Issue Involved The core issue before the Hon’ble Allahabad High Court was whether a final demand order passed under Section 74 of the Goods and Services Tax Act, 2017 can lawfully include tax, interest, and penalty amounts exceeding those proposed in the original show-cause notice, and if such enhancement, without giving an opportunity of hearing or reply, constitutes a violation of Section 75(7) of the Act. The case also raised concerns about procedural fairness and communication of notices to the taxpayer. Facts…

Gujarat HC: Refund of Compensation Cess ITC Allowed on Coal Used for Exports 1. Issue Involved The central issue before the Gujarat High Court was whether a taxpayer is entitled to claim a refund of unutilized input tax credit (ITC) of compensation cess paid on coal used in manufacturing goods that are exported (zero-rated supplies), when such exports are made on payment of IGST and the final goods themselves are exempt from compensation cess. The petitioner also challenged the validity of Paragraph 5 of Circular No. 45/19/2018-GST dated 30.05.2018 and Paragraph…

Patna HC: Section 77 GST Refund Allowed for Wrong Head Tax Payment 1. Issue Involved The primary issue in this case was whether the limitation period for claiming a refund of tax wrongly paid under the incorrect head, i.e., CGST and SGST instead of IGST, should be reckoned from the date of the erroneous payment or from the date on which the correct tax was subsequently paid. The dispute centred on the applicability of Section 77 of the CGST Act, 2017, read with Section 19 of the IGST Act, 2017 and…

GST cash credit account relief – Section 83 GST attachment struck down by Bombay HC 1. Issue Involved The central issue before the Bombay High Court was whether a cash credit account can be provisionally attached under Section 83 of the Maharashtra Goods and Services Tax (MGST) Act, 2017, for protecting government revenue. The Court examined whether such an account qualifies as “property belonging to the taxable person” as mentioned in the provision. Facts of the Case The petitioner, Skytech Rolling Mill Pvt. Ltd., filed a writ petition under Article 226…

Sikkim HC Allows Refund of ITC on Business Closure 1. Issue Involved The central issue in this case was whether refund of unutilized Input Tax Credit (ITC) under Section 49(6) of the Central Goods and Services Tax Act, 2017 (CGST Act) can be claimed by a registered person upon closure of business, despite Section 54(3) limiting refund of ITC only to two situations – zero-rated supplies and inverted duty structure. The question was whether the absence of express provision for refund on closure amounts to denial of such refund, or whether…

Madras HC Quashes Composite GST Show Cause Notices 1. Issue Involved The central issue before the Hon’ble Madras High Court was whether the issuance of a single show cause notice (SCN) and a composite assessment order covering multiple financial years (2017-18 to 2022-23) is permissible under Sections 73 and 74 of the CGST/TNGST Act. The petitioner contended that bunching of SCNs for more than one financial year is contrary to statutory provisions, the limitation framework, and constitutional guarantees, while the respondent argued that the Act does not expressly prohibit such practice.…

Gujarat HC Quashes GST Demand Against Dissolved Company 1. Issue Involved The key issue involved in this case was whether the tax authorities could validly initiate proceedings under Section 73 of the Central Goods and Services Tax Act, 2017 (CGST Act) against a company that had already been dissolved pursuant to an order of voluntary liquidation and subsequent dissolution issued by the National Company Law Tribunal (NCLT). The core question was whether such demand orders and recovery actions issued in the name of a non-existent company could be sustained in law.…