GST registration cancelled on the ground that the petitioner is holding another GST registration as a tax deductor at source/tax collector at source - HELD THAT:- The impugned cancellation of GST registration was quashed and the matter remitted for fresh orders on merits, with liberty to cancel any alternate GST registration held as tax deductor or tax collector.... ... ...

Personal hearing under section 75(4) of the CGST Act - Mandatory grant of personal hearing before passing an adverse order under section 75(4) of the CGST Act - HELD THAT: - Section 75(4) operates in two independent contingencies, separated by the word "or": a hearing must be afforded when requested by the person chargeable with tax or penalty, and also where the proper officer proposes to pass an adverse order. The latter requirement applies irrespective of whether a reply has been filed. Th... ... ...

Ex parte GST assessment - Opportunity to reply to show-cause notice Assessment confirmed for want of a reply to the GST show-cause notice for the tax period 2019-20 - HELD THAT: - As the assessment had been confirmed without a reply to the show-cause notice, and the petitioner undertook to deposit 50% of the IGST and cess demand after adjusting amounts already recovered, an opportunity was granted to submit a reply with supporting documents. [Paras 7, 8, 9, 10, 11] The matter was remitted ... ... ...

GST appellate jurisdiction over central adjudication orders - competent appellate forum for an appeal arising from an adjudication order passed by a Central GST authority HELD THAT: - Accepting the conceded legal position on grounds of propriety and consistency, the Court held that an appeal against an order of adjudication passed by a Central Authority must be heard by the Appellate Authority under the CGST Act and not by the State Appellate Authority. [Paras 7] The impugned State Appella... ... ...

Bail in CGST prosecution - Presumption of innocence - Pre-trial detention not punitive - Right to speedy trial - Documentary evidence Grant of bail in a CGST prosecution concerning alleged diversion of online-gaming merchant funds received through a payment-gateway escrow account - HELD THAT: - Pre-conviction detention is not punitive and must serve the purpose of securing the accused's attendance at trial. The investigation had been completed and the complaint filed; the evidence was doc... ... ...

Foundational allegations of fraud, wilful misstatement or suppression of facts - Section 74 notice for wrongful availment of input tax credit Validity of the show cause notice for alleged wrongful availment of input tax credit under Section 74 of the HPGST Act, where the notice did not identify and correlate the alleged fraud, wilful misstatement or suppression of facts with the asserted default - HELD THAT: - Invocation of Section 74 requires the notice itself to disclose foundational facts ... ... ...

Violation of natural justice in service of GST show cause notice Validity of adjudication where the GST show cause notice was uploaded only under the 'Additional Notice and Orders' tab without separate intimation to the petitioners - HELD THAT: - The Court found that, as the notice was uploaded only under the specified portal tab and no separate intimation was given, the petitioners were unable to respond to it. This constituted a violation of the principles of natural justice and war... ... ...

Effective opportunity of hearing in GST assessment - Principles of natural justice Validity of GST assessment where the personal hearing was fixed before expiry of the time allowed to submit the reply to the show-cause notice - HELD THAT: - Fixing the personal hearing before the deadline for filing the reply did not afford an effective opportunity of hearing and resulted in breach of the principles of natural justice. See M/S MODINE THERMAL SYSTEMS PRIVATE LIMITED [2025 (6) TMI 989 - UTTARAKH... ... ...

Condonation of delay in filing GST appeal - Opportunity to explain delay Rejection of a delayed GST appeal without considering the appellant's explanation for delay - HELD THAT: - The appeal was rejected because the notice requiring a response on delay remained unanswered. As the explanation that the appellant was undergoing medical treatment was not rebutted, the Court found sufficient cause to afford one opportunity to justify the delay beyond the stipulated period. [Paras 4] The rej... ... ...

Pecuniary jurisdiction to block input tax credit - Authority of the Deputy Commissioner to block input tax credit beyond the prescribed pecuniary limit HELD THAT: - The Deputy Commissioner admitted that the blocked input tax credit exceeded the pecuniary jurisdiction conferred by the Commissioner's administrative order and that the entry was consequently corrected and unblocked. The Court held that exercise of jurisdiction requires self-discipline and that an authority must not act to ... ... ...

Extinguishment of government dues under approved insolvency resolution plan - Exercise of writ jurisdiction despite alternative statutory appeal Extinguishment of unfiled GST claims under approved resolution plan - Effect of approval of the resolution plan on unfiled GST dues for Financial Year 2021-22 and interest for delayed GSTR-3B returns for July and August, 2021 - HELD THAT: - An approved resolution plan binds government authorities, and statutory dues relating to a period preceding its... ... ...

Exercise of writ jurisdiction against GST adjudication despite alternative statutory remedy - Bar against parallel GST proceedings - identity of subject matter - Writ challenge based on alleged breach of natural justice HELD THAT: - The statutory bar against parallel proceedings is attracted only where the proceedings concern the same subject matter, to be identified with reference to the relevant tax period, transactions, invoices, precise input tax credit liability and allegations in the re... ... ...

Withholding of GST refund pending anti-evasion proceedings - Commissioner's opinion of fraud or malfeasance under Section 54(11), CGST Act - Statutory refund withholding independent of judicial stay Pending proceedings under Section 54(11), CGST Act Withholding of export IGST refund under Section 54(11) of the CGST Act during a pending anti-evasion investigation into input tax credit claimed from allegedly non-genuine suppliers - HELD THAT: - Section 54(11) requires that the refund-genera... ... ...

Section 54(11) of the CGST Act permits withholding an export IGST refund where the underlying refund order is subject to appeal or other pending proceedings and, after hearing the taxable person, the Commissioner independently concludes that release would adversely affect revenue because of fraud or malfeasance. This statutory safeguard operates without a separate judicial stay; a proposed appeal alone is insufficient, but an already commenced anti-evasion investigation may qualify as pending proceedings. Material concerning allegedly non-genuine or non-operational suppliers and unestablished goods movement supported the withholding. Questions on supply genuineness remained for GSTAT; withholding was sustained and writ relief refused.

Approved resolution plans bind government authorities, extinguishing pre-approval statutory dues not lodged in insolvency proceedings or provided for in the plan, where the plan covers known and unknown, assessed and unassessed claims. Such extinguishment prevents subsequent GST demand notices, adjudication and recovery because determination cannot survive independently of the extinguished liability. The CGST first-charge provision yields to the IBC's overriding effect, and liquidation cannot revive the liability. Writ jurisdiction remains available despite an appellate remedy where proceedings lack jurisdiction and the dispute is a pure legal issue on admitted facts; a pre-deposit appeal need not be pursued.

Section 74 of the HPGST Act requires a show cause notice to state the foundational facts showing that wrongful availment or utilisation of input tax credit resulted from fraud, wilful misstatement, or suppression of facts to evade tax. Bare, alternative recitals of those expressions, without identifying the taxpayer's precise conduct and linking it to the alleged default, do not meet that requirement. An ITC mismatch or short payment alone cannot justify Section 74 unless the notice records supporting reasons and facts. The High Court set aside the defective notice, permitted a fresh notice within 60 days without limitation bar, and kept the challenge to ITC provisions open.

Bail in a CGST prosecution involving alleged diversion of online-gaming merchant funds was granted because pre-conviction detention is not punitive and must secure attendance at trial. Completed investigation, filing of the complaint, documentary evidence, Magistrate-triable offences, and absence of criminal antecedents or material showing witness tampering, flight risk, repeat offending, or exceptional circumstances meant continued custody was unjustified. Delay likely to prevent trial completion within a reasonable time further supported release, subject to attendance and non-interference safeguards.

GST demand challenges founded on claims that supplies were exempt fuelwood and charcoal require substantiation during adjudication; where that defence is not properly supported, the statutory appeal is the appropriate remedy. The taxpayer may clarify an apparently incorrect reference to Form GSTR-8A before the Appellate Authority by filing supporting material. Despite substantial recovery of the confirmed demand, an appeal filed within the permitted period must be decided without applying limitation.

Ex parte GST assessment is addressed where statutory appellate limitation prevents appellate recourse. Fresh consideration is contemplated because the demand was made ex parte, provided the taxpayer files a reply to the show-cause notice, treats the impugned order as an addendum, and makes pre-deposit of the disputed tax. The respondent must then decide the matter on merits after hearing the taxpayer. Non-compliance permits proceedings in accordance with law as though the writ petition had been dismissed in limine.

Rule 86A limits restrictions on input tax credit in an electronic credit ledger to one year and provides a statutory route for unblocking. A person whose credit is blocked must approach the Commissioner for an order under Rule 86A(2). Where registration is subsequently cancelled and a demand is determined, unblocking cannot be pursued solely by relying on issues concerning communication of the blocking reasons. The cancellation and demand orders must first be validly challenged; an unblocking request may then be made in accordance with law.