GST exemption on rice: rejected or damaged paddy unfit for human consumption is outside the exemption and taxable.
Rejected or damaged paddy that lacks seed quality characteristics (seed purity, sprouting capacity, freedom from seed borne disease) is not food quality rice and does not qualify for the rice exemption. Where such paddy is directed to industrial uses or animal feed, it falls outside the exemption notification and must be classified under the appropriate HSN heading for paddy/rice in the husk; applicability of concessional rates depends on factual proof of quality and end use. (AI Summary)

Input Tax Credit entitlement requires genuine transactions and supplier verification to avoid denial and enforcement action.
Input Tax Credit (ITC) under GST is vulnerable to fake invoicing, where fabricated invoices are used to claim credit; liability can attach to recipients unless they demonstrate genuine transactions and statutory compliance. Courts have required detailed evidentiary examination before denying ITC and indicated that supplier registration cancellation alone does not justify automatic disallowance if the buyer maintained proper records. Recommended safeguards include stronger laws, better detection mechanisms, supplier verification, buyer education, and robust documentation practices. (AI Summary)

Adjudication principles require service of show cause notices, reasoned orders, fair hearings and compliance with prescribed timelines.
Adjudication under the GST regime requires adherence to principles in Section 75: proper service of Show Cause Notice, issuance of reasoned orders within prescribed timelines, grant of hearings and limited adjournments, confirmation of demand only as per the notice, exclusion of appeal periods in limitation, recovery of unpaid self-assessed tax, mandatory interest, and prohibition on duplicate penalties. Orders must observe natural justice, be issue-wise reasoned with evidence, specify appellate remedies, and contain structured contents to ensure clarity, fairness and enforceability. (AI Summary)

Court structure reform: new criminal procedure defines court classes, magistrate roles and jurisdictional limits across divisions.
The New Criminal Procedural law establishes a hierarchical criminal court and executive magistracy structure: Courts of Session, First and Second Class Judicial Magistrates, and Executive Magistrates. It mandates session divisions and district organisation, provisions for appointment and deployment of Sessions Judges and Additional Sessions Judges, mechanisms for temporary disposal of urgent matters, designation of Chief and Sub Divisional Judicial Magistrates, creation of Special Courts and Special Magistrates, and rules governing local limits, delegation, and subordination among judicial and executive magistrates. (AI Summary)

IGST refund deduction: exporters who opt for higher duty drawback face refund only after deducting the differential drawback.
Exporters who voluntarily elect the higher rate of duty drawback under column "A" are eligible for IGST refund on zero-rated supplies only after deduction of the differential duty drawback; where column rates are identical or the exporter refunds the differential drawback (or the court directs its deduction), IGST refund may be allowed accordingly. Shipping bills served as refund applications and interest accrues from the shipping bill date until actual refund. (AI Summary)

Exemption for sewage-treated water: supply to industries attracts nil GST under Entry 99 of the exemption notification.
The AAR held that purified sewage-treated water supplied to industries falls within the residual description of water in Entry No. 99 of the Exemption Rate Notification and is therefore chargeable at a nil rate for GST, the decision resting on the exclusion of specified water categories by separate entries and classification of treated sewage as purified water. (AI Summary)

RCM reconciliation: disclose opening balance for mismatches between RCM tax paid and ITC claimed to enable future credit adjustments.
Taxpayers must declare an opening balance in the RCM Liability/ITC Statement when there is a mismatch between RCM tax paid and ITC claimed in GSTR 3B: disclose a positive opening balance where RCM paid exceeds ITC claimed (and was not reversed), and disclose a negative opening balance where ITC claimed exceeds RCM paid. No disclosure is required when there is no mismatch, when lower ITC reflects ineligible credit, or when short availments were already recorded as temporary reversals intended for future reclaim. (AI Summary)

Maintainability of refiled Section 94 application: earlier dismissal remains binding, refiling barred as moratorium misuse under Code
The Tribunal analysed whether withdrawal of a restoration application with liberty to refile erases the effect of a prior unchallenged dismissal for non compliance; it concluded that the earlier dismissal attained finality and that a refiled application can be non maintainable where prior dismissal stands and the refile appears to perpetuate misuse of the interim moratorium, noting that liberty to withdraw an IA is distinct from liberty to cure consequences of an earlier dismissal. (AI Summary)

Waiver of interest and penalty under Section 128A permits tax regularisation on specified past GST liabilities upon payment.
The Council recommended insertion and notification of Section 128A with Rule 164 and associated forms to allow waiver of interest and penalty where tax is paid by a notified date, accompanied by circulars explaining eligibility. It also proposed special rectification procedures for orders denying ITC where new Sections 16(5) and 16(6) render ITC available, prospective omission of select sub rules in Rules 89 and 96 to facilitate IGST refunds on exports following reassessed imports, and issuance of clarifications and notifications to operationalize these measures. (AI Summary)

Restrictions on associations: SEBI rules bar unpermitted collaborations by market entities and enable Board action for violations.
SEBI amendments prohibit regulated entities and their agents from direct or indirect associations with persons who provide unregistered advice or make unpermitted claims about securities, defining association to include money transactions, client referrals and IT interactions; permit exceptions for investor-education and Board-specified digital platforms with adequate safeguards; require regulated entities to prevent such conduct by associated persons; and empower the Board to take disciplinary or penalty action for violations. Amendments also add IFSC definitions and relax certain listing thresholds and sub-clause applicability for IFSC-listed companies. (AI Summary)

Seizure of cash limited under GST: cash not treated as goods and cannot be seized unless part of stock in trade.
Section 67 of the CGST Act authorises inspection, search and seizure but its operation is constrained by definitions distinguishing goods and money, the requirement that seized items be relevant to proceedings or liable for confiscation, and the proviso limiting retention to what is necessary for examination or inquiry; cash not forming part of stock in trade ordinarily cannot be seized and prolonged retention or appropriation without adjudicatory process is impermissible. (AI Summary)

Authority to levy interest and penalties clarified by Finance Act, but procedural bypass may invite constitutional challenge.
The Finance Act, 2024 amends the Customs Tariff Act to supply explicit machinery for levying and recovering interest and penalties on customs and IGST demands-addressing judicially noted gaps-but the introduction of substantive provisions without full parliamentary debate raises constitutional concerns that may prompt judicial review of procedural fairness and legislative transparency. (AI Summary)

Types of punishments codified: range from capital to community service, with commutation, fine defaults and solitary rules.
Chapter II of the Bharatiya Nyaya Sanhita, 2023 prescribes punishments including death, life imprisonment, imprisonment (rigorous or simple), forfeiture of property, fine and community service; permits courts to direct rigorous or simple terms; treats life imprisonment as equivalent to a specified term for fractional calculation; provides detailed rules for fines and default imprisonment including proportional remission and levy periods; authorises government commutation of sentences without offender consent and defines the appropriate Government; limits cumulative punishments for composite offences; regulates solitary confinement durations; and prescribes enhanced penalties for repeat offences in specified chapters. (AI Summary)

GST liability retroactivity: pre-enactment transactions not subject to GST; refund claims must be processed promptly.
The court allowed withdrawal of the writ petition so the petitioner could pursue refund of GST allegedly deducted on pre enactment contract payments; it directed that any refund representation be processed strictly in accordance with law and expeditiously, preferably within eight weeks of receipt. (AI Summary)

Exemption for pure services denied where recipient is not a government or local authority and functions don't match constitutional entrustment.
Services providing assistance in filing corporate tax returns to BWSSB do not meet Entry 3 exemption because (i) BWSSB is neither the Central Government, a Union territory nor the State Government or a Local Authority - its members are appointed and it lacks municipal fund/control attributes - and (ii) the services are not related to functions entrusted to Panchayats under Article 243G or to Municipalities under Article 243W of the Constitution. (AI Summary)

Time limit for show cause notice: failure to issue within six months requires return of seized goods to owner.
Where goods seized under seizure powers require service of the prescribed notice challenging confiscation or penalty within a statutory six month period, failure to give that notice within the prescribed period obliges return of the goods to the person from whose possession they were seized; mode of service governs reckoning of compliance and administrative or technical delays do not, of themselves, extend the statutory limitation. (AI Summary)

Input tax credit eligibility: invoices and e-way bills alone insufficient; physical movement and delivery proof required.
Input tax credit cannot be established by tax invoices, e-way bills or goods receipts alone; the claimant must prove the actual physical movement of goods and genuineness of transactions by producing vehicle details, freight payment evidence, delivery acknowledgements and payment particulars, and by ensuring reporting and tax payment conditions are met by suppliers. (AI Summary)

Bank account validation requirement: validated bank details now block GSTR 1/IFF filing unless added in registration.
Rule 10A mandates furnishing and validation of a bank account in GST registration before filing FORM GSTR 1 or using IFF; GSTN portal functionality will block filing without validated bank-account details. GSTN has also launched an RCM Liability/ITC Statement to report reverse charge liabilities and corresponding ITC for monthly and quarterly filers, with prescribed procedures for declaring and rectifying opening balances. Amendments effected by the Finance (No. 2) Act, 2024 remain uncommenced pending central notification and corresponding state-level changes. (AI Summary)

E-way bill expiry during transit without intent to evade tax removes basis for penalty and warrants refund of deposits.
The court held that an expired e-way bill during transit, caused by vehicle breakdown and where goods were accompanied by invoices, did not demonstrate intent to evade tax; consequently, the penalty imposed under the transit penalty provision was set aside and the amounts deposited were directed to be refunded within a short period. (AI Summary)

Reassessment and advance tax requirement overturned after documentary proof disproved alleged higher sale consideration.
Re-assessment relied on Form 61A intelligence alleging a higher sale consideration; AO added the difference as unexplained income and applied special tax treatment. The assessee produced the sale deed and bank loan confirming a lower consideration and challenged jurisdictional compliance and applicability of the advance-tax proviso. The tribunal found the AO's assumption incorrect, accepted documentary proof of actual consideration and funding, and concluded the addition and application of the advance-tax requirement were unsustainable. (AI Summary)