The Gujarat High Court ruled that Section 130 can be invoked only when there is clear evidence of intent to evade tax. Routine or mechanical confiscation during transit was held impermissible.
n: The Court ruled that denying ITC for supplier non-compliance results in cascading tax. Authorities must ensure GST taxes only value addition and not penalise genuine buyers.
ITC denial is unjustified when the supplier was registered at the time of the transaction. Courts confirm bona fide purchasers retain credit if statutory conditions are met.
The judgment confirms that bona fide purchasers remain eligible for ITC even if the seller fails to deposit tax. The Court held that action must be taken against the defaulting seller, not the genuine buyer.
The Court clarified that Section 74 cannot be invoked against bona fide purchasers when the supplier had valid registration and paid due taxes at the time of sale.
J&K HC ruled that tax officers must consider a delayed reply to a GST SCN u/s 73 if filed before the final order, holding that ignoring it violates natural justice.
Delhi High Court rules that unregistered partnership firms can maintain writ petitions to enforce statutory rights under the CGST Act, as Section 69(2) limits only contractual claims.
GST arrest power under Section 69 is limited to grave offenses (evasion > ₹2 crore, or repeat fraud), requiring reasons to believe and adherence to Article 22 safeguards, with most offenses being non-cognizable and bailable.
Gauhati High Court granted bail in a GST arrest case, ruling the arrest violated mandatory Section 35(3) BNSS and Arnesh Kumar guidelines due to failure to issue prior notice or record specific written justification.
Karnataka High Court directs refund of ₹10 crores collected during GST search, holding the payment involuntary and not valid under Section 74(5) of the CGST Act.
