GST Weekly Flashback: 30 November To 06 December 2025

Supreme Court Fraudulent GST ITC | Supreme Court Upholds Composite GST Demand; Rejects Plea on ‘Non-receipt of Notice’ and ‘Bunching of Years’ The Supreme Court of India has dismissed the Special Leave Petition affirming a major tax demand raised by the Delhi GST authorities for alleged fraudulent availment and utilisation of Input Tax Credit (ITC). Supreme Court Upholds 100% GST Penalty for Wilful Suppression of Facts Over Non-Filing of Monthly Returns Case Title: M/S Sriba Nirman Company Versus The Commissioner (Appeals), Guntur, Central Tax And Customs & Ors. Case No.: Diary No.38833/2025 The Supreme Court has upheld 100% GST penalty for wilful suppression of facts over non-filing of monthly returns. The Andhra Pradesh High Court has upheld the imposition of a 100% penalty under Section 74 of the CGST Act, holding that the assessee’s failure to file mandatory monthly returns and remit GST dues amounted to wilful suppression of facts with an intention to evade tax. The writ petition challenging the penalty order was dismissed, and the consequential recovery proceedings initiated by the authorities were sustained. Delhi High Court Avail Statutory Appeal Remedy | Delhi High Court Refuses to Interfere with Rs. 9.60 Crore GST Demand Case Title: Manpar Exim Inc Versus Additional Director, DGGI Case No.: W.P.(C) 18204/2025, CM APPL. 75277/2025, CM APPL. 75278/2025 & CM APPL. 75279/2025 The Delhi High Court has declined to entertain a writ petition challenging an Order that confirmed a total GST demand and penalty of Rs. 9.60 crore for alleged fraudulent availment and passing on of fake Input Tax Credit (ITC). Delhi High Court Directs Taxpayer to Pursue Appellate Remedy in Alleged Fraudulent ITC Case Case Title: Inder Bahadur Singh Versus Additional Commissioner Ward 24-Zone 1 Case No.: W.P.(C) 15853/2025 & CM APPL. 64911/2025 The Delhi High Court has refused to entertain a writ petition filed by M/s Yamini Bearing Enterprises, challenging a GST adjudication order that raised demands relating to alleged fraudulent availment of Input Tax Credit (ITC), and has directed the petitioner to pursue the statutory appellate remedy instead. The Court has permitted the petitioner to file an appeal against the adjudication order by January 15, 2026, clarifying that any such appeal shall be decided on merits and not dismissed on limitation grounds. Late Issuance Of Deficiency Memos—Can’t Be Used To Deny Or Limit Interest On GST ITC Refund: Delhi High Court Case Title: M S G S Industries Versus Commissioner Of Central Tax And GST Delhi West Case No.: W.P.(C) 7485/2024 & CM APPL. 31186/2024 The Delhi High Court has held that late issuance of deficiency memos—can’t be used to deny or limit interest on GST Input Tax Credit (ITC) refund. Delhi HC Allows Delayed GST Appeal After Tax Consultant’s Death Leaves Filing Incomplete Case Title: Aggarwal Traders Versus Sales Tax Officer Case No.: W.P.(C) 18176/2025 & CM APPL. 75182/2025 The Delhi High Court has allowed Delhi-based proprietary concern to file a delayed statutory appeal against a GST demand of Rs. 35.61 lakh for FY 2019–20. Delhi High Court Quashes All GST Proceedings Based on Deleted Rule 96(10) Against Exporters Case Title: Vinayak International Housewares P Ltd Versus UOI Case No.: W.P.(C) 3154/2023 The Delhi High Court, while granting major relief to exporters, has ruled that no proceedings can continue under Rule 96(10) of the CGST Rules, since the provision has been formally omitted from the statute without any saving clause. The omitted Rule 96(10) of the Central Goods and Services Tax (CGST) Rules restricted exporters from claiming a refund of Integrated Tax (IGST) paid on exports if they had already availed certain input tax benefits or exemptions. Repeated Errors in GST Orders; Delhi HC Directs CGST Chief Commissioner to Circulate Advisory for Correctness of FYs Case Title: M/S A V Metals Marketing Pvt Ltd Versus Principal Commissioner CGST And Anr Case No.: W.P.(C) 18230/2025 The Delhi High Court has directed the Chief Commissioner of Central Tax, CGST Delhi Zone to circulate an advisory across all Commissionerates, instructing officers to exercise utmost caution while mentioning financial years, due dates for replies and other material particulars in Show Cause Notices (SCNs) and adjudication orders. Delhi HC Orders Restoration of Cancelled GST Registration of Garment Exporter Citing COVID Illness, Portal Access Issues Case Title: Justwork Technologies Private Limited Versus Sales Tax Officer/Class II STO, DGST & ANR. Case No.: W.P.(C) 17969/2025 & CM APPL. 74336/2025 The Delhi High Court has set aside a GST assessment order passed against a tech firm for the tax period from April 2019 to March 2020, holding that the adjudication was completed without granting the company a fair opportunity to respond or be heard. Delhi High Court Quashes GST Order Against Tech Firm Subject To Rs. 20,000 Cost Case Title: Justwork Technologies Private Limited Versus Sales Tax Officer/Class II STO, DGST & ANR. Case No.: W.P.(C) 17969/2025 & CM APPL. 74336/2025 The Delhi High Court has set aside a GST assessment order passed against a tech firm for the tax period from April 2019 to March 2020, holding that the adjudication was completed without granting the company a fair opportunity to respond or be heard. Risk of AI ‘Hallucinating’ Fake Judgments: Delhi HC Directs GST & IT Dept. to Exercise Caution, Verify Case Laws Before Issuing SCNs Case Title: Ms J M Jain Prop Sh Jeetmal Choraria Versus UOI Case No.: W.P.(C) 16754/2025 & CM APPL. 68768/2025 The Delhi High Court has highlighted the risk of Artificial Intelligence hallucinating, by citing fake and non- existent judgements and directed the GST Department as well as the IT Department to exercise utmost caution while citing judgements and must take full responsibility in case the same is cited or generated by using Artificial Intelligence softwares. Moreover, before issuing SCNs or finalising assessments, all judgements ought to be verified. Calcutta High Court Mere Upload Of Notices Under “Additional Notices & Orders” Tab On GST Portal Doesn’t Ensure Effective Service: Calcutta HC Case Title: M/s. Birla Brothers Private Limited and another Vs. The Deputy Commissioner of Revenue Case No.: WPA 26252 of 2025 The Calcutta High Court has held that mere upload of notices under the “Additional Notices & Orders” tab on the GST portal does not ensure effective service, especially when adverse consequences are contemplated. IGST ITC Reported In GSTR-9 Can Be Allowed As Set-off, Even If It Was Missed In Monthly GSTR-3B: Calcutta HC Case Title: Laxmi Ghosh Vs. The State of West Bengal & Ors. Case No.: W.P.A. 20364 of 2025 The Calcutta High Court has held that Input Tax Credit (ITC) under Integrated Goods and Service Tax (IGST) reported in GSTR-9 can be allowed as set-off, even if it was missed in monthly GSTR-3B. Natural Justice in GST Rectification: Calcutta High Court Reaffirms Right to be Heard Case Title: JCI Chemicals India Pvt. Ltd. v. The State of West Bengal & Ors. Case No.: WPA 21260 of 2025 The Calcutta High Court has set aside an order passed by the Deputy Commissioner, Chowringhee Division, Kolkata North CGST & CX Commissionerate after finding that the petitioner/assessee was denied the opportunity of a personal hearing in its Goods and Service Tax (GST) rectification application. GST | Pre-Deposit Requirement Deemed Satisfied After Dept. Recovered Entire Disputed Tax: Calcutta High Court Case Title: Arup Kumar Chatterjee v. Assistant Commissioner of State Tax Case No.: WPA 20961 of 2025 The Calcutta High Court has set aside an order of the GST appellate authority that had dismissed an appeal for non-compliance with the statutory pre-deposit requirement since the GST authorities had already recovered more than 10% of the disputed tax, the mandatory pre-deposit condition under Section 107(6) of the WBGST/CGST Act, 2017 stood satisfied, and the appeal must now be heard on merits. “Where Lawyer Entrusted with Filing Appeal Dies, It Is Understandable That Litigant May Require Time to Collect Papers and Engage New Counsel”: Calcutta HC Case Title: Sri Hara Prasad Das Vs. State of West Bengal and others. Case No.: WPA 26527 of 2025 The Calcutta High Court has set aside an order passed by the appellate authority under Section 107 of the WBGST/CGST Act, 2017 after finding that the authority failed to properly examine the taxpayer’s application seeking condonation of delay in filing the appeal. The Court held that the legal issue—non-consideration of a valid delay condonation request—vitiated the appellate order. Punjab and Haryana High Court P&H HC Sets Aside GST Appellate Authority’s Order for Wrong Limitation Calculation Case Title: Laxmi Metal And Machines Versus UOI Case No.: CWP-24192-2025 (O&M) The Punjab and Haryana High Court has set aside the First Appellate Authority’s order dismissing the refund appeal as time-barred, holding that the authority had “incorrectly computed” the limitation period and ignored the legal requirement of treating the communication date as day zero. Rajasthan High Court Active Role In Creation Of Bogus Firms, Clandestine Clearance Of Goods: Rajasthan HC Denies Bail in Multi-Crore GST Fraud Case Case Title: Narendra Choudhary Versus UOI Case No.: S.B. Criminal Miscellaneous Bail Application No. 14559/2025 The Rajasthan High Court (Jaipur Bench) has denied bail to an accused, Narendra Choudhary allegedly involved in a sprawling, organized GST evasion racket, observing that the magnitude of the fraud, ongoing investigation, and possibility of tampering with evidence made it inappropriate to grant bail at this stage. Rajasthan HC Grants Interim Protection to Solar Firm; Says No Coercive Action on GST Rate Reduction Dispute Case Title: M/s Mrigendra Solar Energy Pvt. Ltd. Versus Rajasthan Urja Vikas And It Services Limited Case No.: S.B. Civil Writ Petition No. 23179/2025 The Rajasthan High Court has granted interim relief to solar firm, restraining authorities from taking any coercive action over a contentious communication directing the company to acknowledge a reduction in GST rates and initiate proceedings before the State Electricity Regulatory Commission. 2022 FAQ Imposing Restricting Refund of Pre-July 18, 2022 Unutilised ITC Struck Down: Rajasthan High Court Case Title: Swastik Oil Industries Versus UOI Case No.: D.B. Civil Writ Petition No. 11549/2023 In a significant ruling impacting thousands of businesses facing blocked refunds under the inverted duty structure, the Rajasthan High Court, Jaipur Bench has held that refund applications pertaining to unutilised Input Tax Credit (ITC) accrued prior to July 18, 2022 cannot be denied on the basis of the FAQ/Circular dated November 10, 2022. Karnataka High Court Rent From Leasing Out Residential Premises Wouldn’t Be Exigible To GST: Karnataka HC Directs Dept. To Reconsider Refund Application Case Title: Bhandary Gas Agency Versus Joint Commissioner Of Commercial Taxes Case No.: 05/11/2025 The Karnataka High Court while directing the Goods and Service Tax (GST) department to reconsider the refund application held that the rent received by leasing out residential premises for students, staff, and teachers would not be eligible for GST. Karnataka HC Quashes GST Revision Order Passed After Audit Without Issuing SCN Case Title: M/S Navayuga Engineering Company Limited Versus Joint Commissioner Of Commercial Taxes Case No.: Writ Petition No.26955 Of 2025 (T-Res) The High Court of Karnataka has set aside a revision order passed by the Commercial Tax Department under the Goods and Services Tax law, holding that revisional powers cannot be exercised without first initiating mandatory proceedings under the GST assessment framework. Orissa High Court Orissa HC Directs Taxpayer to GSTAT as Tribunal Finally Becomes Functional Case Title: Abhijit Nayak Versus The Commissioner of (CT & GST) Case No.: W.P.(C) No.32643 of 2025 The Orissa High Court has disposed of a writ petition challenging a GST demand order after holding that the petitioner must now approach the Goods and Services Tax Appellate Tribunal (GSTAT), which has been operationalised with a staggered filing schedule. Jammu & Kashmir and Ladakh High Court Barter Trade Taxable Under GST: J&K And Ladakh HC Dismisses 35 Petitions Against GST Notices to Cross-LoC Traders Case Title: M/s New Gee Enn & Sons Versus UOI Case No.: WP(C) 1938/2024 The High Court of Jammu & Kashmir and Ladakh at Srinagar has dismissed a batch of 35 writ petitions filed by cross-LoC traders who challenged the GST show cause notices issued to them under Section 74 of the Central Goods and Services Tax (CGST) Act, 2017. Andhra Pradesh High Court No Actual Movement of Goods: AP High Court Upholds Penalty for Fake Billing, Bogus ITC Claims The Andhra Pradesh High Court has upheld a penalty imposed under the AP VAT Act after finding that fake tax invoices and waybills were issued to enable purchasers to claim ineligible Input Tax Credit (ITC) without corresponding movement of goods. The court dismissed the writ petition filed against the penalty order dated 27 August 2020. GST | Grounds of Missing DIN or Signature Not Sufficient After Long Delay: Andhra Pradesh High Court Case Title: Bodanpu Venkata Naga Jagan Mohan Reddy Versus The Assistant Commissioner Case No.: Writ Petition No: 25952/2025 The Andhra Pradesh High Court has dismissed a writ petition filed by a works contractor challenging a Goods and Services Tax (GST) assessment order on the grounds of absence of a Document Identification Number (DIN) and lack of physical or digital signature, holding that the petitioner approached the Court with an unjustifiable delay. Punjab and Haryana High Court GST Dept. Can’t Fill Old Wine In New Bottle: P&H HC Quashes Reblocking Of ITC After Expiry Of 1 Year On Same Grounds Case Title: NB International Versus Commissioner, Central Goods And Services Tax And Others Case No.: CWP-4938-2025 The Punjab and Haryana High Court has held that the GST Department cannot re-block Input Tax Credit (ITC) after the expiry of one year on the same grounds and said that the Tax Department cannot “fill old wine in a new bottle” by reissuing lapsed blocking orders. Negative ITC Blocking in ECL is Illegal Under Rule 86A: Punjab & Haryana HC The Punjab and Haryana High Court has held that the Goods and Services Tax (GST) authorities cannot block a taxpayer’s Electronic Credit Ledger (ECL) by creating a negative balance under Rule 86A of the GST Rules. Punjab & Haryana High Court Issues Notice in Plea Challenging Competence of Authority Issuing GST Circulars; SCN Proceedings to Continue Case Title: Shree Shyam Enterprises V/S Union Of India And Others Case No.: CWP-35245-2025 The Punjab and Haryana High Court has issued notice to the Union of India in a petition challenging the validity of the circular whereby the functions of ‘proper officer’ under various provisions of the CGST Act were further assigned to different classes of central tax officers. on the ground that they were allegedly issued by an authority not competent under the CGST Act, 2017. Kerala High Court GST Recovery Proceedings Can Be Initiated Against Supplier, Only If Proceedings Initiated Against Purchaser Did Not Materialize: Kerala HC Case Title: M/S.K.V.Joshy & C.K. Paul Versus The Assistant Commissioner Case No.: WP(C) NO. 24617 OF 2024 The Kerala High Court has held that the recovery proceedings can be initiated against the supplier, only if the proceedings initiated against the purchaser did not materialize. Trial Court Ghaziabad CGST Commissionerate: Court Sends Accused to Judicial Custody in Rs. 73.70 Crores GST Evasion Case A Special Chief Judicial Magistrate (SCJM) Court in Meerut has ordered the judicial custody of an accused arrested by the CGST Commissionerate, Ghaziabad, for alleged tax evasion amounting to ₹73.70 crores. Mumbai Court Grants Bail to Businessman Accused of ₹114-Crore GST Fraud Case Title: Shri. Vipul Prabhatkumar Maheshwari Versus Assistant Commissioner of State Tax Case No.: R. A. NO. 959 OF 2025 S. K. Fokmare, the Additional Chief Judicial Magistrate, 19th Court, Esplanade, Mumbai, has granted bail to Vipul Prabhatkumar Maheshwari, who was arrested in connection with an alleged GST fraud exceeding ₹114 crore. Mumbai Court Grants Bail to Businesswoman Accused in Rs. 56-Crore GST ITC Fraud Case Case Title: Rachana Prabhatkumar Maheshwari Versus Assistant Commissioner of State Tax Case No.: R. A. NO. 958 OF 2025 S. K. Fokmare, the Additional Chief Judicial Magistrate, 19th Court, Esplanade, Mumbai has granted bail to Rachana Prabhatkumar Maheshwari, accused in a major Goods and Services Tax (GST) input tax credit (ITC) fraud case involving alleged wrongful availment and passing of ITC worth over Rs. 56 crore. GST Fake Invoice Network: Meerut Court Rejects Bail, Citing Deep-Rooted Economic Offence Case Title: Shakib Qureshi Versus Union of India Case No.: First Bail application No. 6230 of 2025 A Meerut court has rejected the bail plea of an accused allegedly at the centre of a sprawling fake invoice and GST fraud racket valued at more than ₹254 crore in bogus invoices and ₹45.84 crore in fraudulent Input Tax Credit (ITC). AAR GST Not Payable on Liquidated Damages in Surat E-Bus Project: Gujarat AAR Applicant’s Name: JMB Ecolife The Gujarat Authority for Advance Ruling (AAR) has held that liquidated damages recovered for breach of contractual obligations under an electric-bus project are not subject to GST.

GST Weekly Flashback: 30 November To 06 December 2025

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Pressure Relief Valves Used In Common Rail Fuel Injection Systems Classifiable As “Safety Or Relief Valves” Under Customs Tariff Item 8481 40 00: CESTAT

Chilli Seeds for Sowing Not ‘Spices’: CESTAT Rejects Customs Demand

Re-Import Duty Exemption Can’t Be Denied Solely for Lack of ‘Marks and Numbers’ When Identity of Goods Is Proven: CESTAT

Mis-declaration of Imported Fabric Justifies Re-classification, Confiscation, Penalties: CESTAT

Pressure Relief Valves Used In Common Rail Fuel Injection Systems Classifiable As “Safety Or Relief Valves” Under Customs Tariff Item 8481 40 00: CESTAT

Chilli Seeds for Sowing Not ‘Spices’: CESTAT Rejects Customs Demand

Re-Import Duty Exemption Can’t Be Denied Solely for Lack of ‘Marks and Numbers’ When Identity of Goods Is Proven: CESTAT

GST Weekly Flashback: 30 November To 06 December 2025

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