Disallowance under section 14A in absence of exempt income - Revenue expenditure on compensation for tenancy rights HELD THAT:- No appeal has been carried from the order Morgan Stanley India Securities Pvt. Ltd.2020 (2) TMI 489 - BOMBAY HIGH COURT] which has been followed by the Division Bench of the High Court of Judicature at Bombay [High Court] in the impugned order [2026 (1) TMI 1689 - BOMBAY HIGH COURT] we see no reason to interfere with the impugned judgment and order of the High Court;... ... ...

Matter was listed before the Registrar's Court for the curing of defects - appellant neither appeared nor took steps to cure the defects raised by the Registry, which were duly notified and made available to them on the GSTAT online filing portal. HELD THAT:- Despite being afforded a total of five effective hearing opportunities across a span of two months to rectify the 33 fundamental and technical defects detailed above, the appellant has shown complete disregard and failed to cure them... ... ...

Penalty u/s 129 for expired e-way bill - Intention to evade tax Sustainability of penalty for transport of goods with an expired e-way bill in the absence of independent evidence of intention to evade tax - HELD THAT: - Expiry of the e-way bill may establish a procedural or documentary lapse, but cannot, by itself, establish a deliberate attempt to evade tax. The factual basis for penalty must be established after considering the surrounding circumstances. In the present case, the record disc... ... ...

Failure of removing defects raised by registry at the end of appellant - HELD THAT:- Failure of removing defects raised by registry at the end of appellant reveals sufficient ground to believe that the Sate did not pay proper heed in such regard considering the facts that appeal is meritless. It would not be in the interest of justice to afford more opportunity to cure the defects at the end of appellant. Thus, instant appeal is liable to be dismissed at this stage.... ... ...

Reasoned appellate adjudication - GSTR-1 and GSTR-3B mismatch - verification of actual tax liability Adequacy of the ex parte appellate order confirming tax, interest and penalty on an unreconciled discrepancy between GSTR-1 and GSTR-3B - HELD THAT: - A numerical difference between GSTR-1 and GSTR-3B is the starting point for inquiry and does not, by itself, establish short-payment of tax. The authority was required to ascertain the cause of the discrepancy, reconcile the returns with the lia... ... ...

Penalty for technical discrepancies in transport documents - Intention to evade tax Imposition of penalty for address and business-particular discrepancies in documents accompanying transportation of areca nuts - HELD THAT: - The goods were accompanied by a tax invoice and e-way bill, and no discrepancy was found in their quantity or quality. A discrepancy in the address or other particulars, without independent and reliable evidence of deliberate contravention and intent to evade tax, could ... ... ...

Passing on additional input tax credit to homebuyers - Re-investigation after flawed anti-profiteering methodology - Functus officio in remanded anti-profiteering investigation - Directory time limit for anti-profiteering investigation report - Natural justice in revised anti-profiteering methodology - Prospective application of anti-profiteering penalty Re-investigation after flawed anti-profiteering methodology - Binding judicial precedent - Validity of the re-investigation of a pending rea... ... ...

Section 129 detention after completion of transit - Penalty for curable e-way bill Part-B omissions - Natural justice in adjudication proceedings Section 129 detention after completion of transit - Penalty for curable e-way bill Part-B omissions - Legality of detention, tax demand and penalty for an unupdated Part-B of the e-way bill after the vehicle had reached the consignee's premises - HELD THAT: - Section 129 authorises detention of goods while in transit; it could not be invoked aft... ... ...

Input tax credit on construction of resort building - Retrospective substitution of plant and machinery in blocked credit provision - Construction on taxable person's own account - Proof of input tax credit eligibility - Interest on wrongly availed and utilised input tax credit - Penalty for non-payment after show cause notice Reasoned appellate orders - Failure to consider binding precedent - Effect of the appellate authority's failure to address the cited Supreme Court ruling [2024 ... ... ...

Input tax credit where consideration is unpaid beyond 180 days - Input tax credit on financial/commercial credit notes - Interest on delayed reversal of input tax credit - Suppression of facts for GST demand and penalty Non-payment of consideration within 180 days - Interest on delayed reversal of input tax credit - Liability to reverse proportionate input tax credit and pay interest where consideration for spot welding machines remained unpaid beyond 180 days - HELD THAT: - The ledger establ... ... ...

Pre-decisional hearing before blocking input tax credit Blocking of input tax credit in the Electronic Credit Ledger despite an adjournment request made at the pre-decisional hearing - HELD THAT: - Where the taxable person was called upon to appear and the blocking order was passed on the same day, the authority, if disinclined to grant the requested adjournment, was required to record reasons for refusing it. The absence of such reasoned consideration warranted interference and a fresh exami... ... ...

Failure to consider reply before cancellation of GST registration - Reasonable opportunity of hearing Cancellation of GST registration without consideration of the reply and supporting material placed by the petitioner - HELD THAT: - In view of the serious consequences of cancellation, the petitioner was required to be afforded every reasonable opportunity. The failure to consider the reply, filed both online and otherwise, resulted in hardship without due opportunity. [Paras 4] The cancel... ... ...

GST adjudication without consideration of reply to show cause notice - GST adjudication on return mismatch Validity of GST adjudication for mismatch between Form GSTR-1 and Form GSTR-3B without considering the reply filed to the show cause notice - HELD THAT: - The adjudicating authority proceeded on the footing that no reply had been filed, though the petitioner had responded in the prescribed form. This constituted a definite failure to consider the reply and warranted restoration of the pr... ... ...

Mandatory personal hearing before adverse GST adjudication Validity of an adverse GST adjudication made without notifying the assessee of the date, time and venue of personal hearing - HELD THAT: - Where a show-cause notice contemplates an adverse decision, Section 75(4) requires that an opportunity of hearing be afforded to the person chargeable with tax or penalty irrespective of whether such hearing is requested. Failure to notify the assessee of the date, time and venue of hearing constit... ... ...

Natural justice in GST penalty for e-way bill expiry - GST penalty for non-extension of e-way bill - Imposition of 200% GST penalty solely for non-extension of an e-way bill despite delayed transit - HELD THAT: - The Court found that the penalty related entirely to non-extension of the e-way bill and held that imposition of 200% penalty merely because the goods did not reach their destination within its validity period violated principles of natural justice. In light of the Division Bench ... ... ...

Non-consideration of reply to show cause notice - Principles of natural justice in GST adjudication Validity of the GST demand adjudication made without considering the reply furnished in Form GST DRC-06 to the show cause notice - HELD THAT: - The adjudication order incorrectly recorded that no reply had been filed, although the petitioner had furnished a reply in Form GST DRC-06. The Court held that the demand could not stand when the reply to the show cause notice had not been taken into ac... ... ...

Blocking of input tax credit - Statutory remedy for unblocking electronic credit ledger Entitlement to unblocking of input tax credit blocked in the electronic credit ledger - HELD THAT: - The restriction on input tax credit operates for one year under Rule 86A(3). After the credit was blocked, the petitioner was required to approach the Commissioner for an order under Rule 86A(2), but had not done so. In view of the subsequent cancellation of registration and determination of demand, relief ... ... ...

Procedural compliance with Form GST DRC-03A for waiver under section 128A Rejection of an application for waiver of interest and penalty under section 128A solely for non-filing of Form GST DRC-03A, where the tax amount had earlier been debited through Form GST DRC-03 - HELD THAT: - Failure to file Form GST DRC-03A was held to be procedural, provided the amount earlier debited had not subsequently been utilised towards another tax liability. Verification was required as to whether the amount ... ... ...

Adjudication of GST demand - Input tax credit on invoices issued by cancelled suppliers - Conditions governing fresh adjudication of the GST demand, including reverse-charge tax liability and input tax credit claimed on invoices issued by suppliers with cancelled registrations HELD THAT: - Without deciding the merits of the disputed liabilities, the Court quashed the demand order and remitted the matter for fresh adjudication. The remand was conditional upon payment in cash of interest on the... ... ...

GST registration - opportunity to respond to notice seeking clarifications - fresh consideration on response to clarification notice Rejection of a GST registration application for failure to respond to the notice seeking additional information and clarifications - HELD THAT: - The registration application had been rejected solely because no response was furnished to the notice issued in Form GST REG-03. The Court granted a conditional opportunity to furnish the response and directed fresh co... ... ...