GST Weekly Flashback (08–14 February 2026) brings together the most significant developments under the Goods and Services Tax law during the week, covering important judgments of the Supreme Court and various High Courts, key notifications and official announcements issued by the GST authorities, and notable advance rulings by the AAR and appellate rulings by the AAAR.
This weekly roundup offers a concise yet comprehensive snapshot of crucial legal interpretations, compliance updates, and policy changes that taxpayers, professionals, and businesses need to track to stay updated with the evolving GST regime in India.
Supreme Court
Refund Not Payable to Assessee When Tax Incidence Passed On To Consumers: Supreme Court Directs Torrent Power to Deposit Rs. 19.28 Crore
The Supreme Court has set aside the Gujarat High Court’s judgment that had permitted Torrent Power Ltd. to retain a refund of Rs. 19.28 crore in a designated account for eventual adjustment in consumer tariffs and directed that the entire refund amount be transferred to the Consumer Welfare Fund under Section 57 of the Central Goods and Services Tax (CGST) Act, 2017.
Time Limit To File Statutory Appeal In Fraudulent ITC Availment : SC Refuses to Entertain Assessee’s Writ
The Supreme Court has refused to interfere with the Delhi High Court’s order dismissing writ petitions related to the extended the time to file a statutory appeal till March 1, 2026 in a fraudulent Input Tax Credit (ITC) availment case.
Delhi High Court
Intent To Cancel GST Registration Retrospectively Must Be Expressly Stated In SCN: Delhi High Court
The Delhi High Court has held that intent to cancel GST registration retrospectively must be expressly stated in show cause notice (SCN) and restored the registration subject to clearance of dues.
GST Dept. Ignored IBC Moratorium: Delhi HC Quashes Demand
The Delhi High Court has quashed the GST demand as the department has ignored the IBC Moratorium.
Bombay High Court
GST Demands Must Be Raised Year-Wise, Not Through Consolidated Notices: Bombay High Court
The Bombay High Court while quashing the Consolidated Notices held that the time limit operate year by year. Section 73(10) and 74(10) of the CGST Act fix the time limit to issue an assessment order within three years (Section 73) or five years (Section 74) from the last date for filing annual returns for the year to which the tax dues relate. Consolidation would collapse these years, specific steps and grounds, harming the tax payers’ ability to respond year by year and violating the explicit year wise structure of the statute.
GST Dept. Acted in ‘Utterly Casual and Mechanical Manner,’ By Issuing Templated SCN: Bombay HC Quashes GST Cancellation
The Bombay High Court (Circuit Bench at Kolhapur) set aside a GST registration cancellation after finding that the tax authority acted in an “utterly casual and mechanical manner,” issuing a templated show-cause notice and passing an order that contradicted it without specifying any defects or objections.
Priority of Banks’ Secured Dues Over GST and MVAT Claims: Bombay High Court
The Bombay High Court has reiterated that dues of secured creditors registered with the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) enjoy priority over all other government dues, including Goods and Services Tax (GST) and Maharashtra Value Added Tax (MVAT).
GST summons Issued For Inquiry, Don’t Amount To Detention: Bombay High Court
The Aurangabad Bench of the Bombay High Court has dismissed a criminal writ petition seeking Rs. 10 lakh compensation for alleged illegal detention by GST authorities, holding that summons issued under Section 70 of the Central Goods and Services Tax (CGST) Act do not mandate a prior seven-day notice and that the petitioner was not illegally detained.
Madras High Court
GST ITC Can’t Be Denied If Filed Before 30.11.2021: Retrospective Relief Under Finance Act 2024, Says Madras HC
The Madurai Bench of the Madras High Court has held that Input Tax Credit (ITC) cannot be denied merely on the ground of delay if it was claimed within the extended time limit provided under the amended GST law.
Assessee Can’t Plead Ignorance of GST Assessment After Participating in Proceedings: Madras HC
The Madurai Bench of the Madras High Court held that the assessee cannot plead ignorance of GST Assessment after having participated in the proceedings. However, the Court granted liberty to file a statutory appeal subject to payment of 20% of the disputed tax amount.
Madras High Court Revokes GST Registration Cancellation for Non-Filing Due to Health Issues, Bars Use of Unverified ITC
The Madurai Bench of the Madras High Court has revoked the GST registration cancellation and held that the reason cited for non-filing of returns—health problems—appeared genuine, while imposing stringent conditions on compliance and utilization of Input Tax Credit (ITC).
Assessee Can’t Plead Ignorance of GST Assessment Order After Participating in Proceedings: Madras HC Refuses to Condone 8 Months Delay
The Madurai Bench of the Madras High Court has held that an assessee who had actively participated in GST assessment proceedings cannot later claim ignorance of the GST assessment order to justify delay in filing an appeal.
GST Portal Notice Alone Not Enough: Madras HC Insists on Alternate Service Despite RPAD Discontinuation From Sept 1, 2025
The Madurai Bench of the Madras High Court has held that while uploading notices on the GST portal constitutes valid service, tax authorities must explore alternative modes of service under Section 169 of the GST Act if there is no response from the assessee.
GST Assessment Order Passed Under Omitted S. 74 for AY 2025–26 Quashed: Madras HC
The Madurai Bench of Madras High Court has set aside a GST assessment order passed under Section 74 of the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017 for the assessment year 2025–26, holding that the proceedings were initiated under a provision that stood omitted with effect from April 1, 2024.
GST Payable On Affiliation Fees Collected by Universities: Madras High Court
The Madurai Bench of the Madras High Court has held that affiliation fees collected by universities from affiliated colleges are amenable to levy of Goods and Services Tax (GST).
Allahabad High Court
Time Spent in Rectification, Writ Proceedings Must Be Excluded from Limitation: Allahabad High Court Allows GST Appeals
The Allahabad High Court has ruled that the time spent by a GST assessee in pursuing statutory rectification proceedings or bona fide writ petitions must be excluded while computing the limitation period for filing statutory appeals, by applying the principles of Section 14 of the Limitation Act, 1963.
GST Proceedings Can’t Initiated Against Deceased Sole Proprietor: Allahabad HC
The Allahabad High Court has set aside GST proceedings initiated against a deceased sole proprietor, holding that issuance of a show cause notice and passing of an adjudication order against a dead person is legally unsustainable.
SMS Based Blocking Of Electronic Credit Ledger Is Illegal Where Supplier’s GST Registration Remains Valid: Allahabad High Court
The Allahabad High Court has held that SMS based blocking of Electronic Credit Ledger is illegal where the supplier’s GST registration remains valid and no proceedings under Sections 73/74 of the CGST Act, 2017 are initiated.
Allahabad High Court Quashes GST Penalty for Tax Paid Under Wrong Head
The Allahabad High Court, Lucknow Bench, has set aside GST penalty and appellate orders holding that tax already paid under the wrong head (CGST/SGST instead of IGST) cannot be treated as tax evasion or non-payment.
No Writ Interference at Show Cause Stage in GST Fraud Allegations: Allahabad High Court
The Allahabad High Court has reiterated that writ courts should not ordinarily interfere at the stage of issuance of a show cause notice under the Goods and Services Tax regime, particularly where allegations of fraud and disputed questions of fact are involved. Declining to quash a show cause notice issued under Section 74 of the CGST Act, 2017, the Court held that such issues are better examined during statutory adjudication proceedings.
Suspended Supplier’s Invoice Invalid; Goods Without E-Way Bill Liable for Detention: Allahabad HC
The Allahabad High Court has upheld the detention and penalty proceedings initiated by the State tax authorities under Section 129(1)(b) of the UPGST Act.
Rajasthan High Court
Same Officer Can’t Authorise GST Search And Hear Appeal: Rajasthan High Court
The Rajasthan High Court has set aside a GST appellate order after finding that the same officer had acted both as the authorising authority for GST search proceedings and later as the appellate authority in the very same case, rendering the appellate decision legally unsustainable.
Andhra Pradesh High Court
GST Assessment Not Invalid Merely for Absence of DIN if Portal-Generated Reference Number Exists: Andhra Pradesh High Court
The Andhra Pradesh High Court has dismissed a writ petition challenging a GST assessment and subsequent recovery proceedings on the ground that the assessment order did not mention a Document Identification Number (DIN) and that prior show cause notices were allegedly unsigned.
Mud Engineering And Chemical Supplies Form Composite Supply Under GST: Andhra Pradesh High Court
The Andhra Pradesh High Court has held that the supply of mud engineering services along with drilling chemicals and additives constitutes a composite supply.
Gauhati High Court
GST | Issuance Of Only Summary SCN Without Proper, Signed Notice Violates Statutory Provisions: Gauhati High Court
The Gauhati High Court has set aside a GST demand order after holding that issuance of only a summary of a show cause notice without a proper, signed notice violates statutory provisions and principles of natural justice.
GST SCN Limitation | Calculation of ‘At Least 3 Months’ U/s 73 Means 3 Calendar Months, Not 90 Days: Gauhati High Court
The Gauhati High Court has held that the phrase “at least 3 months” under Section 73(2) of the CGST/AGST Act refers to 3 calendar months and not 90 days. Upholding a show cause notice (SCN) issued on 29 November 2024, the Court dismissed a writ petition challenging the notice as time-barred.
Gujarat High Court
Writ Courts Can’t Condone Delays In Filing GST Appeals Beyond Maximum Statutory Period: Gujarat HC
The Gujarat High Court has held that courts cannot condone delays in filing GST appeals beyond the maximum statutory period, even while exercising writ jurisdiction under Article 226 of the Constitution.
Rectification Proceedings Must Be Considered While Computing Limitation for GST Appeals: Gujarat High Court
The Gujarat High Court has held that the period for filing an GST appeals must be computed after taking into account the pendency and disposal of a rectification application.
Calcutta High Court
GST Appellate Order Can’t Travel Beyond SCN: Calcutta HC
The Calcutta High Court has held that an appellate authority cannot confirm a tax demand on grounds that were never part of the original show cause notice.
GST Provisional Attachment Lapses After 1 Year: Calcutta HC
The Calcutta High Court has ruled that provisional attachment of property and bank accounts under Section 83 of the Central Goods and Services Tax (CGST) Act automatically ceases after the expiry of one year from the date of the attachment order, and cannot be continued thereafter. Neither the GST authorities nor banks can continue to freeze accounts on the strength of an attachment order that has outlived its statutory life.
Karnataka High Court
Employer–Employee Relationship Outside GST Net: Karnataka HC Quashes IGST Demand on Salaries Paid to Expat Employees
The Karnataka High Court has set aside a show cause notice proposing to levy Integrated Goods and Services Tax (IGST) of over Rs. 85.51 crore on salaries paid to foreign national employees, holding that such payments arise from a genuine employer–employee relationship and are not liable to GST.
Jharkhand High Court
No Fresh Pre-Deposit Required for GSTAT Appeal When Sufficient Amount Already Deposited: Jharkhand High Court
The Jharkhand High Court has held that a taxpayer who has already made a substantial pre-deposit at the first appellate stage cannot be compelled to make an additional pre-deposit while filing an appeal before the Goods and Services Tax Appellate Tribunal (GSTAT), particularly when the earlier deposit exceeds the statutory requirement.
No Fresh 20% Pre-Deposit for GSTAT Appeal If Earlier Deposit Exceeds Requirement: Jharkhand High Court
The Jharkhand High Court has held that no additional pre-deposit can be insisted upon for filing an appeal before the GST Appellate Tribunal (GSTAT) when the amount already deposited at the first appellate stage exceeds the statutory 20% requirement.
Tripura High Court
Bona Fide Purchaser Can’t Be Denied ITC for Seller’s Default: Tripura High Court Reads Down S. 16(2)(c)
The Tripura High Court has held that a bona fide purchaser cannot be denied Input Tax Credit (ITC) merely because the selling dealer failed to deposit the tax collected from the purchaser.
Lower Court
DGGI Ghaziabad | Meerut Court Sends Alleged Rs. 27.99 Crore GST Evasion Accused to Judicial Custody
The Court of the Special Chief Judicial Magistrate, Meerut, has remanded Rajiv Kumar to judicial custody till February 25, 2026, in connection with an alleged Goods and Services Tax (GST) evasion of approximately Rs. 27.99 crore.
DGGI Meerut | Fake ITC Racket of Over Rs. 5000 Crore Unearthed; Court Sends Accused to Judicial Custody
A Meerut special court has remanded the accused, Sageet Kumar and Shiv Divedi to judicial custody after investigators uncovered a complex network of bogus firms suspected of generating fraudulent Input Tax Credit (ITC) worth more than Rs. 5000 crore.
GSTAT
GST Return Mismatch: Appellate Authority Can’t Convert S. 74 Proceedings to S. 73: GSTAT Orders Fresh Adjudication
In the GST return mismatch case, the Delhi Bench of Goods and Services Tax Appellate Tribunal (GSTAT) has held that once proceedings initiated under Section 74 of the CGST Act (fraud, suppression, or wilful misstatement) fail, the Appellate Authority cannot itself determine liability under Section 73. Instead, in terms of Section 75(2) of the Act, the matter must be remanded to the Proper Officer for fresh determination.
AAAR
No GST On Contributions to District Mineral Foundation But Applicable on NMET Payments: AAAR
The Telangana State Appellate Authority for Advance Ruling (AAAR) has held that contributions made to the District Mineral Foundation (DMF) are not liable to Goods and Services Tax (GST), while payments made to the National Mineral Exploration Trust (NMET) continue to attract GST.
AAR
18% GST Payable On ‘Masala Paan’ Or ‘Meetha Paan’: AAR
The Maharashtra Authority of Advance Ruling (AAR) has ruled that 18% Goods and Service Tax (GST) is payable on ‘Masala Paan’ or ‘Meetha Paan’.
No GST On Separately Invoiced Diesel, Petrol Charges in Fleet Operations: AAR
The Chhattisgarh Authority for Advance Ruling (AAR) has held that diesel and petrol charges, even when invoiced separately on a per-kilometre basis, do not attract GST and continue to remain outside the GST framework, being taxable under the pre-GST regime of Central Excise Duty and State VAT.
GST Follows Suppliers, Customers And Not Goods: AAR
The Tamil Nadu Authority of Advance Ruling (AAR) has held that Goods and Service Tax (GST) follows suppliers, customers and not goods.
