GST Weekly Flashback: 02 To 08 November 2025

Here’s the Goods and Service Tax (GST) Weekly Flashback for the period from 02 to 08 November 2025. Supreme Court Supreme Court’s Big Relief on ITC: Buyer Not Liable for Seller’s Default Case Title: The Commissioner Trade And Tax Delhi Versus M/S Shanti Kiran India (P) Ltd. Case No.: Civil Appeal No(S).2042-2047/2015 The Supreme Court has upheld the right of genuine purchasing dealers to claim Input Tax Credit (ITC) even if the selling dealer fails to deposit the tax collected with the government. The judgment came in the case Commissioner, Trade and Tax, Delhi vs. M/s Shanti Kiran India (P) Ltd., wherein the Court dismissed appeals filed by the Delhi Trade & Tax Department. Delhi High Court Once Explanation Accepted, GST Dept. Can’t Raise Fresh Demand On Same Grounds: Delhi High Court Case Title: Kemexel Ecommerce Pvt. Ltd. Versus Sales Tax Officer Class Ii / Avato Ward 105, Zone 4, Delhi Case No.: W.P.(C) 16555/2025, CM APPL. 67859/2025 & CM APPL. 67860/2025 The Delhi High Court has held that once Explanation Accepted Under Section 61(2) of CGST Act, the GST Department cannot raise the Fresh Demand Under Section 73 on Same Grounds. The Bench of Justice Prathiba M. Singh and Justice Shail Jain quashed a demand of ₹53.46 lakh raised against a private company after the department had already accepted the taxpayer’s explanation during an earlier scrutiny of returns. Writ Jurisdiction Won’t Be Exercised In Fake GST ITC Cases: Delhi High Court Case Title: M/S R Gupta Metal Store Versus Central Goods And Services Tax Delhi North Case No.: W.P.(C) 15841/2025, CM APPL. 64879/2025 & CM APPL. 64880/2025 The Delhi High Court has refused to entertain writ petition in fake GST Input Tax Credit (ITC) cases. The bench of Justice Prathiba M. Singh and Justice Shail Jain hasrefused to entertain a writ petition which had challenged a demand order issued by the Central Goods and Services Tax (CGST) Department, Delhi North, over alleged fraudulent availment of input tax credit (ITC). The Court directed the firm to pursue the statutory appellate remedy under Section 107 of the CGST Act, 2017, by November 30, 2025. Rs. 20K Cost Imposed On Assessee For Not Replying To SCN Due To Accountant’s Fault: Delhi HC Case Title: M/S Swarn Cosmetic (India) Versus Union Of India & Ors. Case No.: W.P.(C) 16545/2025, CM APPL. 67842/2025 & CM APPL. 67843/2025 The Delhi High Court has remanded the matter back and gave the assessee to file the reply to show cause notice subject to payment of the cost of Rs. 20,000 to the CGST Department. The bench of Justice Prathiba M. Singh and Justice Shail Jain has observed that the only reason given by the Petitioner/assessee for not filing any reply to the SCN was that the Petitioner had appointed an accountant who was handling the Petitioner’s accounts, however, he had failed to bring to notice of the Petitioner, the details of the impugned SCN and the order. Consequently the SCN escaped the attention of the Petitioner and he did not take action within the prescribed period. Karnataka High Court ECrL Blocking Communicated via SMS Without Reasons, Pre-Decisional Hearing Quashed: Karnataka HC Case Title: M/S S. A. Enterprises Versus Assistant Commissioner Of Central Tax Case No.: Writ Petition No. 27868 Of 2025 (T-Res) The Karnataka High Court has quashed the blocking of electronic credit ledger (ECrL) which was communicated via SMS without reasons, pre-decisional hearing. Allahabad High Court ITC Can’t Be Denied When Supplier Was Registered at Time of Purchase: Allahabad High Court Quashes GST Demand Against Iron Scrap Trader Case Title: M/S Singhal Iron Traders Versus Additional Commissioner And Another Case No.: WRIT TAX No. – 1357 of 2022 The Allahabad High Court has quashed the demand of tax and penalty imposed on M/s Singhal Iron Traders, holding that Input Tax Credit (ITC) cannot be denied merely because the supplier’s GST registration was cancelled after the transaction took place. Gujarat High Court GST Dept. Can’t Invoke S. 74 Without Evidence of Fraud or Suppression: Gujarat HC Case Title: Zodiac Energy Ltd. Versus Assistant Commissioner Of State Tax, Unit-5 Case No.: R/Special Civil Application No. 13397 Of 2024 The Gujarat High Court has quashed a show-cause notice and subsequent tax order holding that the GST department cannot resort to Section 74 of the GST CAct in the absence of fraud, wilful misstatement, or suppression of facts. No GST On Leasehold Rights Transfer In Industrial Plots Allotted By Gujarat Industrial Development Corp.: Gujarat HC Case Title: Dhiraj Can Co. Pvt. Ltd. Versus The Union Of India & Ors. Case No.: R/Special Civil Application No. 3596 Of 2025 The Gujarat High Court has held that the transfer of leasehold rights in industrial plots allotted by the Gujarat Industrial Development Corporation (GIDC) does not attract Goods and Services Tax (GST). The division bench of Justice Bhargav D. Karia and Justice Pranav Trivedi has allowed a writ petition filed by Dhiraj Can Co. Pvt. Ltd.challenging a tax demand of Rs. 13.5 lakh raised by the State GSTdepartment. Punjab & Haryana HC GST | Negative Blocking Under R. 86A Is Not Permissible: Punjab & Haryana HC Case Title: Shyam Sunder Strips Versus UPO Case No.: CWP 23675-2025 The Punjab and Haryana High Court has held that the negative blocking under Rule 86A of the GST Rules is not permissible. The bench of Justice Lisa Gill and Justice Meenakshi I. Mehta has observed that in terms of Section 41(1) of the CGST Act, every registered person, subject to the conditions and restrictions as may be prescribed, is entitled to avail credit of eligible ITC. Such credit is to be availed by filing a return on self-assessment basis. Such an amount is then required to be credited in the taxpayer’s ECL. Sub-section (2) of Section 41 of the CGST Act provides that if ITC has been availed by a registered person in respect of supplies of goods or services or both and the tax payable on such supplies has not been paid by the supplier then such input tax is required to be reversed along with applicable interest. J&K And Ladakh High Court GST Registration Doesn’t Substitute For Mandatory Licensing Requirement: J&K And Ladakh High Court Case Title: Kehar Singh Versus Union Territory of J&K Case No.: WP(C) No. 2790/2025 The Jammu and Kashmir and Ladakh High Court has held that GST Registration does not substitute for mandatory licensing requirements. Rajasthan High Court Company’s Bank Account Can’t Be Frozen Citing Voluntary GST Registration Cancellation: Rajasthan HC Case Title: M/s. Bhilwara Trading Company Versus Bank Of Baroda Case No.: S.B. Civil Writ Petition No. 18322/2025 The Rajasthan High Court has held that the company’s bank account cannot be frozen on the grounds of voluntary cancellation of Goods and Service Tax (GST) cancellation. The bench of Dr. Justice Nupur Bhati directed the petitioner company to submit a representation along with documents showing GST exemption and directed the Bank to decide the representation within one month by passing a speaking order. Calcutta High Court DGGI Arrests Accused During Pendency of Anticipatory Bail Application: Calcutta HC Calls It “Very Sad State of Affairs” Case Title: Niaz Ahmed Case No.: CRM (A) 3234 of 2025 The Calcutta High Court has termed the incident “Very Sad State of Affairs” where the Directorate General of GST Intelligence (DGGI) arrested the accused, Niaz Ahmed during pendency of anticipatory bail application. Telangana High Court Amount Paid Towards GST Liability During Investigation Can’t Be Adjusted Towards Pre Deposit: Telangana HC Case Title: Annai Infra Developers Limited Versus Commissioner of Customs and Central Tax Case No.: Writ Petition No: 32612 Of 2025 The Telangana High Court has held that the amount paid towards the tax liability during investigation cannot be adjusted as against pre-deposit to be made for the purposes of preferring the appeal before the Appellate Tribunal. Challenge GST Penalty Order Before GSTAT: Telangana High Court Case Title: S. Ashok Kumar Versus The Commissioner of Customs and Central Tax Case No.: Writ Petition No: 32622 Of 2025 The Telangana High Court has disposed of a writ petition filed by S. Ashok Kumar, Managing Director of M/s Annai Infra Developers Ltd., Tamil Nadu, challenging a penalty order under the Goods and Services Tax (GST) laws, and directed the petitioner to instead approach the newly constituted GST Appellate Tribunal within the prescribed time window. Andhra Pradesh High Court GST Refund Can’t Be Denied on Limitation When Tax Was Paid by Mistake on Exempt Residential Renting: Andhra Pradesh HC Case Title: M/S. Nspira Management Services Private Limited Versus Assistant/ Deputy Commissioner Of Central Tax Case No.: Writ Petition Nos.18287 & 14905 Of 2024 The Andhra Pradesh High Court while quashing the defect memos, held that the GST refund cannot be denied on limitation when tax was paid by mistake on exempt residential renting. AAR Biofuel ITC: A Step Forward, But Clarity Remains Elusive for Industry Applicant’s Name: Jai Ambey Roadlines Private Limited The global imperative for sustainable energy solutions increasingly shapes policy discussions. For India’s vital goods transportation sector, embracing cleaner fuels like Hydrotreated Vegetable Oil (HVO) is a key step towards environmental goals. Export of Pre-Packaged Labelled Frozen Shrimp Upto 25 Kgs Attracts 5% GST: AAR Applicant’s Name: M/s Sandhya Aqua Exports Private Limited The Authority for Advance Ruling (AAR), Andhra Pradesh has held that the export of processed frozen shrimp packed in pre-packaged and labelled pouches or cartons up to 25 kilograms will attract Goods and Services Tax (GST) irrespective of the fact whether it is for domestic supply or for export outside the country. Maintenance Charges on Flow Meters Not Part of Composite Supply; Attract 18% GST: AAR Applicant’s Name: M/s Greater Visakhapatnam Smart City Corporation Limited The Andhra Pradesh Authority for Advance Ruling (AAR) has held that the maintenance charges collected by Greater Visakhapatnam Smart City Corporation Limited (GVSCCL) from Hindustan Petroleum Corporation Limited (HPCL) for upkeep of flow meters used to measure recycled water are not part of a composite supply and will therefore be taxed separately at 18% GST. Read More: GST Evasion Informer Can’t Claim Reward As A Matter Of Right: Delhi HC

GST Weekly Flashback: 02 To 08 November 2025

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