GST Weekly Flashback: 07 To 13 December 2025

Here’s a Goods and Service Tax (GST) weekly flashback from 07 to 13 December, 2025. GST Rates/Exemptions Supreme Court Supreme Court Affirms GST Exemption on Leasing of Residential Premises Used as Hostels Case Title: The State Of Karnataka & Anr. Versus Taghar Vasudeva Ambrish & Anr. Case No.: CIVIL APPEAL NO. 7846 OF 2023 In a significant ruling impacting the rental accommodation and co-living sector, the Supreme Court of India has upheld a Karnataka High Court judgment granting Goods and Services Tax (GST) exemption on the leasing of residential dwellings used as hostels for students and working professionals. AP High Court Interest, Penalty Recovered by Chit Foreman Not Exigible To GST: AP HC Case Title: Stanlee (India) Enterprises Pvt. Ltd. Versus The Commissioner Of CGST Case No.: W.P.(C) 5370/2025 The Delhi High Court held that the department cannot deny or withhold refunds merely on the basis of alleged excess Input Tax Credit (ITC) without issuing a statutory Show Cause Notice (SCN). AAR 5% GST Payable On Supply of Premix Tea Sachets Along With Various Tea Products: AAR Applicant’s Name: M/s Jivraj Tea International Ruling Date: 04/12/2025 The Gujarat Authority of Advance Ruling (AAR) has held that 5% Goods and Service Tax (GST) is payable on supply of premix tea sachets along with various tea products which is a “mixed supply”. 5% GST Payable On Supply Of Imitation Zari Thread: AAR Applicant’s Name: Sai Ram Jari Industries Ruling Date: 29/11/2025 The Gujarat Authority of Advance Ruling (AAR) had held that 5% GST is applicable on Supply of imitation zari thread or yarn made from Plastic Film/Lacquered Coated Polyester film with Aluminium Metal which falls under 56050020. Quick Lime (90%) and Hydrated Lime (85% to 95%) Attracts 5% GST: AAR Applicant’s Name: M/s. Kaycce Industrial Chemicals Private Limited Ruling Date: 17.11.2025 The Tamil Nadu Authority of Advance Ruling (AAR) has held that quick lime (90%) and hydrated lime (85% to 95%) attracts 5% Goods and Service Tax (GST). GST Input Tax Credit Delhi High Court Delhi HC Directs GST Dept. to Release Refund with Statutory Interest After Delay in Processing ITC Claim Case Title: Phoenix Impex Versus Sales Tax Officer Class II AVATO Case No.: W.P.(C) 12424/2025& CM APPL. 54016/2025 The Delhi High Court has directed the GST department to credit a long-pending refund of Rs. 25.16 lakh, along with statutory interest, after observing that the department failed to process the taxpayer’s refund claim within the strict timelines mandated under the CGST Act. The refund pertained to unutilised Input Tax Credit (ITC) for November 2023, originally applied for on 15 January 2024. Delhi HC Allows Taxpayer to File Delayed Appeal in Alleged Fake ITC Case Case Title: Braham Prakash Versus Additional Commissioner Case No.: W.P.(C) 18673/2025, CM APPL. 77607/2025 & CM APPL. 77608/2025 The Delhi High Court has permitted a taxpayer to file a delayed appeal against a demand order issued under the Central Goods and Services Tax (CGST) Act, after observing that issues relating to the alleged denial of personal hearing and delayed uploading of the Show Cause Notice (SCN) warrant examination by the appellate authority. Refund Can’t Be Withheld on Alleged Excess ITC Without SCN: Delhi HC Case Title: Stanlee (India) Enterprises Pvt. Ltd. Versus The Commissioner Of CGST Case No.: W.P.(C) 5370/2025 The Delhi High Court held that the department cannot deny or withhold refunds merely on the basis of alleged excess Input Tax Credit (ITC) without issuing a statutory Show Cause Notice (SCN). Allahabad High Court ITC Can’t Be Denied When Supplier Was Registered at Time of Transaction: Allahabad HC Case Title: M/s Saniya Traders Versus Additional Commissioner Grade-2 And Another Case No.: WRIT TAX No. – 1743 of 2024 The Allahabad High Court has held that Input Tax Credit (ITC) cannot be denied when a supplier was registered at time of transaction. Gauhati High Court Gauhati HC Reads Down Section 16(2)(aa) of GST Act; Protects Bona Fide Buyers from ITC Denial Due to Supplier Default Case Title: M/s MCLEOD Russel India Limited Versus The Union of India Case No.: WP(C) NO.5725 OF 2022 The Gauhati High Court has held that Input Tax Credit (ITC) cannot be denied to a bona fide purchaser solely because the supplier failed to upload invoice details in GSTR-1. While the Court stopped short of declaring Section 16(2)(aa) of the CGST and AGST Acts unconstitutional, it read down the provision to protect genuine taxpayers from being unfairly burdened. AAR ITC Can’t Be Availed On Tax paid Against Customs Pre-Notice Consultation: AAR Applicant’s Name: Hansaben Jayantibhai Patel Ruling Date: 24/11/2025 The Gujarat Authority of Advance Ruling (AAR) has held that Input Tax Credit (ITC) cannot be availed against the pre-notice consultation letter under Section 28(1) of the Customs Act, 1962 in terms of the time line prescribed in Section 16(4) of the CGST Act, 2017. Meerut Court DGGI | Meerut Court Refuses Bail To Person Accused Of Availing Fraudulent ITC Through Non-Existent Firm Case Title: Hari Shankar Sharma Versus UOI Case No.: First Bail application No. 6406 of 2025 The Meerut Court has refused to grant bail to the person, Hari Shankar Sharma accused of availing fraudulent input tax credit (ITC) through non-existent firms. GST Registration Delhi High Court Delhi HC Quashes Retrospective GST Cancellation; Says Dept. Failed to Give Reasons Case Title: M/S Globe Coal Company Vs Commissioner Of DGST, Delhi And Other Case No.: W.P.(C) 7207/2025 The Delhi High Court has quashed the retrospective cancellation of GST registration issued to a Delhi-based business, holding that the GST department failed to provide any reasons justifying such a drastic action. The Court also ordered restoration of the GST registration, granting the petitioner full access to the GST portal to file pending returns. GST Registration Cancelled Without Considering COVID-Period Default: Delhi HC Says Appeal Can’t Be Dismissed Solely on Limitation Case Title: Ruby Bansal Versus C.G.S.T. Delhi East Commissioner Case No.: W.P.(C) 18496/2025 In a significant relief to a taxpayer whose Goods and Services Tax (GST) registration had been cancelled for non-filing of returns during the COVID-19 period, the Delhi High Court has set aside the rejection of her appeal as time-barred and directed the Appellate Authority to hear the matter on merits. Gauhati HC GST Registration Cancellation for GSTR Non-Filing: Gauhati HC Allows Restoration if Dues Are Cleared Case Title: M/S Barluit Organic Farmers Producer Company Limited Versus The Union Of India And 3 Ors Case No.: WP(C)/6502/2025 The Gauhati High Court has granted significant relief to Barluit Organic Farmers Producer Company Limited by allowing the firm an opportunity to restore its cancelled GST registration, subject to strict compliance with statutory requirements under the CGST Rules. Gauhati HC Quashes GST Registration Cancellation for Not Issuing Proper SCN; Says Mandatory 30-Day Period Ignored Case Title: Mrs Shobnam Ara Begom Mazumder @ Sabnamara Begum Mazumder Versus UOI Case No.: WP(C)/6789/2025 The Gauhati High Court has quashed the cancellation of GST registration of a goatery business after finding that tax authorities failed to adhere to statutory requirements and principles of natural justice. Gauhati High Court Allows Taxpayer to Seek Revival of Cancelled GST Registration After Filing All Pending Returns Case Title: Monojit Debnath Versus UOI Case No.: WP(C)/6486/2025 In a significant relief for small taxpayers who lost their GST registration due to prolonged non-filing of returns, the Gauhati High Court has permitted a Hailakandi-based proprietor to approach the GST authorities for restoration of his cancelled GSTIN, provided he clears all pending statutory compliances and dues. GST Order Karnataka HC Karnataka HC Quashes GST Demand Over ‘Same Officer Acting as Auditor and Adjudicating Authority’; Orders Fresh Proceedings by New Officer Case Title: Presidency Builders And Developers Versus The Deputy Commissioner Of Commercial Taxes (Audit) 3 Case No.: Writ Petition No. 28539 Of 2025 (T-Res) The Karnataka High Court has set aside an ex parte GST demand order issued against a Mangaluru-based real estate developer after holding that the same officer cannot issue audit observations and also adjudicate the show-cause proceedings, terming it a violation of legal procedure and natural justice. GST Evasion Chhattisgarh High Court Chhattisgarh High Court Grants Bail in Allegedly Creating Fake Invoices, E-way Bills Without Actual Supply Of Goods Case Title: Ishak Shah Versus UOI Case No.: MCRC No. 8616 of 2025 The Chhattisgarh High Court has granted regular bail to an accused arrested by the Directorate General of GST Intelligence (DGGI), Raipur Regional Unit, in a case involving allegations of creating bogus firms and availing/passing on fake Input Tax Credit (ITC) running into several crores by creating fake invoices and e-way bills without actual supply of goods. Chhattisgarh HC Grants Anticipatory Bail In GST Case Involving Alleged Fake Firms, E-Way Bills Case Title: Mohd. Farhan Versus State Of Chhattisgarh Case No.: MCRCA No. 1689 of 2025 The Chhattisgarh High Court has granted anticipatory bail to a Raipur-based freelance accountant accused of facilitating bogus GST registrations and generating fake e-way bills, observing that custodial interrogation was not essential as the investigation was largely documentary in nature. Rajasthan High Court Rajasthan HC Denies Bail in Rs. 95 Crore Online Gaming GST Evasion Case Involving DGGI Case Title: Manoj Kumar Versus State of Rajasthan Case No.: S.B. Criminal Miscellaneous Bail Application No. 13655/2025 The Rajasthan High Court has denied bail in Rs. 95 Crore online gaming GST evasion case involving Directorate General Of GST Intelligence (DGGI). The Justice Sameer Jain has ejected the regular bail applications filed under Section 483 of the Bhartiya Nagrik Suraksha Sanhita (BNSS), 2023 in a massive Rs. 95-crore GST evasion case linked to online gaming transactions, holding that the allegations reveal a serious economic offence, with substantial evidence of structured evasion, use of shell entities, and possible foreign links. Meerut Court DGGI | Meerut Court Orders Judicial Custody in Massive Online Gaming GST Evasion Racket Busted Case Title: UOI Versus Ravi Singh Date: 10/12/2025 A Special Chief Judicial Magistrate (Economic Offences), Meerut, has ordered the judicial custody of an accused, Rajan Chandra Joshi and Ravi Singh arrested by officers of the Directorate General of GST Intelligence (DGGI) in connection with an alleged large-scale GST fraud involving fake firms, bogus invoices, and wrongful availment of input tax credit (ITC). Pre-deposits Jammu & Kashmir and Ladakh High Court J&K High Court Allows Revival of GST Appeals After Pre-Deposit Default; Grants One Final Opportunity to Contest Tax Demands Case Title: Ajaz Ahmad Mir Versus Union Territory Of J And K And Ors Case No.: WP(C) 785/2024 CM(2045/2024) The High Court of Jammu & Kashmir and Ladakh at Srinagar has allowed restoration of the GST appeals—subject to the appellant depositing 10% of the disputed tax demand within four weeks. The bench of Justice Sanjeev Kumar and Justice Sanjay Parihar has disposed of the petition by giving four weeks’ time to the petitioner to make deposit of 10 per cent of the disputed amount with the appellant authority concerned within four weeks and subject to such deposit, the appeals filed by the petitioner which have been dismissed in terms of order dated 26th March, 2024 shall be restored to their original number and taken up for consideration on merits. IGST Karnataka High Court IGST Liability Depends on Destination of Goods, Not Origin; Says Transfer of Title Has No Nexus with Tax U/s 10(1)(a): Karnataka HC Case Title: M/S. Toyota Kirloskar Motor Pvt. Ltd Versus UOI Case No.: Writ Petition No.6126 Of 2024 (T-Res) The Karnataka High Court while interpreting Section 10(1)(a) of IGST Act, 2017, held that the Place of Supply (POS) of goods must be determined by considering the place where the movements of goods terminates for delivery to the recipient and not at the place where the movement of goods originates and the goods are handed over to the common carrier. Others Delhi High Court Delhi High Court Quashes Pre-Resolution GST Demands on Patanjali Foods, Clarifies Insolvency ‘Clean Slate’ Principle Case Title: Patanjali Foods Limited Versus Assistant Commissioner CGST Narela Division & Ors. Case No.: W.P.(C) 5784/2025&CM APPL. 26378/2025 The Delhi High Court has set aside GST demands raised against Patanjali Foods Limited for periods prior to the approval of its insolvency resolution plan, reaffirming that statutory dues not forming part of an approved resolution plan stand extinguished under the Insolvency and Bankruptcy Code (IBC). The ruling brings significant relief to companies taken over through insolvency proceedings on a “clean slate” basis. Delhi HC Quashes Rs. 45.36 Crore GST Demand on NBCC, Citing No Statutory Basis for Agent’s GST Liability on Services Case Title: M/S NBCC (India) Limited Versus Additional Commissioner CGST Delhi South Case No.: W.P.(C) 6687/2025 & CM APPL. 30335/2025 The Delhi High Court has quashed a Goods and Services Tax (GST) demand of Rs. 45.36 crore raised against NBCC (India) Limited in connection with the Kidwai Nagar (East) Redevelopment Project, after the Union Ministry of Finance categorically stated that the demand had “no merit” in law. Delhi HC Directs GST Dept. to Pay Interest After Refund Re-credit Delay Caused by Technical Glitches Case Title: Sumit Gupta Versus UOI Case No.: W.P.(C) 11728/2023 In a significant relief to a taxpayer facing prolonged delays in GST refund processing, the Delhi High Court has directed the Central Goods and Services Tax (CGST) authorities to sanction and release interest on the refund amount that was re-credited late due to persistent system-related issues. Calcutta HC Calcutta HC Appoints Arbitrator to Resolve Lease Renewal Dispute Between Property Owner and DGGI Case Title: G.E.T. Properties Private Limited Vs Union Of India Case No.: AP/160/2025 The Calcutta High Court, exercising its Ordinary Original Civil Jurisdiction, has appointed a sole arbitrator, Druva Ghosh, Senior Advocate to resolve a long-pending dispute between the property owner and the Directorate General of GST Intelligence (DGGI), Kolkata Zonal Unit, relating to renewal of a commercial lease and payment of enhanced rent. Irrigation & Waterways Department Wrongly Treated GST-Inclusive Turnover as “Suppression”, Rules Calcutta High Court in Tender Dispute Case Title: M/s. Abdul Matin Versus State of West Bengal Case No.: WPA No. 26282 of 2025 The Calcutta High Court has quashed the six-month debarment order issued against construction firm ruling that the Irrigation & Waterways Department wrongly concluded that the bidder had suppressed information by submitting turnover figures inclusive of GST. Andhra Pradesh High Court AP HC Quashes GST Assessment; Orders Reassessment at Uniform 8.9% for Solar EPC Supply Case Title: . M/S. Vikram Solar Limited Versus The Commissioner Of Central Tax Case No.: Writ Petition No: 4420/2025 In a significant ruling impacting tax treatment of solar Engineering, Procurement, and Construction (EPC) contracts nationwide, the Andhra Pradesh High Court has quashed a GST assessment order and directed the authorities to re-assess tax liability by applying a uniform effective rate of 8.9% on the gross consideration. Non-Monetary Perquisites Received by Dealers Constitute Taxable Supply; TDS-Deducted Benefits Also Treated as Consideration: AAR Applicant’s Name: KARTHIK AND CO Ruling Date: 17.11.2025 The Tamil Nadu Authority of Advance Ruling (AAR) has ruled that non-monetary perquisites received by dealers constitute taxable supply and TDS deducted benefits are also treated as consideration. Patna High Court Transport Owners Involved in Illegally Procuring Spirit Through Multiple GST Holders for Illicit Liquor Manufacturing: Patna High Court Grants Anticipatory Bail Case Title: Shashi Bhushan Kumar Versus The State of Bihar Case No.: Criminal Miscellaneous No.82658 Of 2025 The Patna High Court has granted anticipatory bail to a man accused in a case linked to the illegal procurement of spirit for manufacturing illicit liquor, observing that no material connected him to the seized consignment. Can Confiscation Under S. 130 Be Invoked Straight From S. 129 Detention? Gujarat HC Answers Case Title: M/S PANCHHI TRADERS Versus STATE OF GUJARAT Case No.: R/SPECIAL CIVIL APPLICATION NO. 9250 of 2020 The Gujarat High Court has ruled on a batch of over 120 connected petitions challenging the State tax department’s practice of directly invoking Section 130 (confiscation) of the CGST Act immediately after detaining goods under Section 129. Allahabad High Court Validity Of Combined Demand-Cum-SCN Issued For Multiple FY U/s 74 Of CGST Act Requires Judicial Scrutiny: Allahabad High Court Case Title: M/S S.D. Freshners Ltd. Versus Union Of India Case No.: Writ Tax No. – 7500 Of 2025 The Allahabad High Court granted interim protection to the petitioner observing that the central issue—validity of combined demand-cum-show-cause notices issued for multiple financial years under Section 74 of the CGST Act—requires judicial scrutiny.

GST Weekly Flashback: 07 To 13 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: 07 To 13 December 2025

Membership Required

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