Tripura HC held ITC cannot be denied under Section 16(2)(c) if buyer is bona fide and no fraud is alleged under Section 73 proceedings. Court ruled GST ITC cannot be denied to genuine purchasers merely due to supplier’s tax default absent fraud or collusion.
Observing that the charge-sheet had been filed and the maximum punishment under Section 132 was five years, the Court granted bail. It relied on Supreme Court precedent emphasizing that prolonged incarceration and documentary evidence weigh in favour of release.
The Calcutta High Court quashed a GST adjudication order after finding it was based on grounds not mentioned in the show cause notice. The ruling reinforces that Section 75(7) prohibits confirmation of demand on new or different grounds without prior notice.
The High Court held that invocation of Section 74 is invalid where the show cause notice lacks specific allegations of fraud, wilful misstatement, or suppression of facts. Without recorded findings of mens rea, proceedings are without jurisdiction.
CESTAT Delhi ruled that subscription and redemption of mutual fund units do not constitute trading under Section 66D(e) of the Finance Act. As units are cancelled upon redemption and not transferred, no CENVAT credit reversal or extended limitation applies.
The Karnataka High Court ruled that clinical-trial and pharma R&D services to foreign clients qualify as export of services. It held Notification 04/2019–Integrated Tax to be clarificatory and retrospective, thereby quashing GST demands for the pre-notification period.
The Court held that CBIC Master Circulars require mandatory pre-consultation before issuing high-value excise/service tax demands, even where extended limitation for alleged fraud is invoked. Notices issued without compliance were quashed.
The Court held that Section 73 does not prohibit issuance of multiple show cause notices for the same tax period when they address different discrepancies. Only overlapping demands on identical facts are impermissible.
The Court held that Section 73 requires a minimum three-month gap between show cause notice and final order. Orders passed within a shorter period were quashed as violative of natural justice.
The High Court ruled that GST authorities must mandatorily apply Circular No. 183/15/2022-GST before disallowing ITC due to return mismatches. Mechanical reversal based solely on discrepancy was held unsustainable.
