The Karnataka High Court held that blocking electronic credit ledger under Rule 86A without a prior hearing and independent reasons violates natural justice and is unsustainable in law.
The court ruled that genuine purchasers cannot lose ITC because a supplier failed to deposit GST. Section 16(2)(c) must be applied only to fraudulent or collusive cases.
The Court ruled that issuing deficiency memos beyond 15 days is contrary to GST law. Tax authorities must adhere strictly to timelines and compensate taxpayers with statutory interest for delays.
The Supreme Court affirmed that a single SCN covering several years is valid where fraudulent ITC patterns span periods, enabling holistic investigation under the CGST Act.
The Court ruled that issuing an SCN before the pre-SCN reply period expires violates natural justice. The key takeaway is that authorities must allow the full reply window before initiating adjudication.
This decision clarifies that affiliation and related functions lack commercial intent and consideration. As a result, GST cannot be imposed on such statutory activities.
The judgment quashed GST demands raised after resolution plan approval for earlier periods. It reinforces that authorities must submit claims during CIRP or lose the right to recover.
The High Court ruled that GST authorities must consider binding CBIC circulars on valuation. Failure to do so makes demands on corporate guarantees without consideration unsustainable.
The Court held that export consignments are regulated by the Foreign Trade Policy, not domestic food safety norms. FSSAI standards cannot be enforced unless expressly incorporated into the FTP.
The Tribunal held that state-fixed maximum ticket prices do not excuse failure to pass on GST rate cuts. Cinema owners must reduce prices commensurately despite pricing caps.
