Penal jurisdiction of transit State u/s 129 - Penalty for inter-unit stock-transfer invoice timing mismatch Penal jurisdiction of transit State under section 129 - Competence of Uttar Pradesh tax authorities to seize goods and impose penalty under section 129 where the interstate supply originated and terminated outside the State and no tax incidence arose within it - HELD THAT: - Following M/s Maruti enterprises vs State of U.P. [2026 (5) TMI 1510 - ALLAHABAD HIGH COURT] the Tribunal held th... ... ...

Deemed export refund to supplier - Clubbing of refund claims across financial years - Supply-wise limitation for deemed export refunds - Prior intimation in Form A for deemed exports - Interest on delayed GST refunds Deemed export refund to supplier - Supplier's entitlement to refund of tax on deemed export supplies where the recipient's undertakings contradicted the finding that both had claimed refund on the same supplies - HELD THAT: - The second proviso to Rule 89(1) permits the s... ... ...

GST recovery - Extended limitation for disclosed works-contract price adjustments - Writ challenge maintainability - GST show cause notice without jurisdiction GST recovery - Extended limitation for disclosed works-contract price adjustments - Invocation of Section 74(1) and extended limitation for recovery of GST on works-contract price-adjustment receipts disclosed in returns but treated as exempt under a bona fide belief - HELD THAT: - Section 74(1) requires a material-based conclusion, di... ... ...

Input tax credit - Retrospective extension of time for availment Application of Section 16(5) of the CGST Act to input tax credit denied as time-barred under Section 16(4) - HELD THAT: - The Court followed its earlier common order [2024 (10) TMI 1631 - MADRAS HIGH COURT], which both sides accepted as governing the petition. Under the retrospectively inserted Section 16(5), input tax credit relating to invoices or debit notes for financial years 2017-18 to 2020-21 may be availed in returns und... ... ...

Cancellation of GST registration for non-filing of returns - Entitlement to relief against cancellation of GST registration for non-filing of returns where the GST Portal barred belated filing for seeking revocation HELD THAT: - The Court regarded the controversy as settled by Motaleb Bhuyan Vs. The State Of Assam And Ors [2025 (3) TMI 670 - GAUHATI HIGH COURT] . Finding the facts similar, it held that the petitioners were entitled to the same relief. [Paras 7, 8, 9] The cancellation was q... ... ...

Waiver of interest and penalty under GST amnesty - Adjustment of tax payments through Form GST DRC-03A Recognition, for waiver under Section 128A of the CGST Act, of tax paid through Form GST DRC-03 bearing an incorrect financial year and subsequently adjusted against the relevant demand through Form GST DRC-03A - HELD THAT: - Under Rule 142(2B) of the CGST Rules, payment adjusted through Form GST DRC-03A is treated as payment towards the corresponding demand on the date of the original intim... ... ...

Validity of the general penalty under section 125 for delayed filing of GSTR-3B where the return had subsequently been filed, the late fee paid and the penalty exceeded the statutory maximum - HELD THAT: - The general penalty is subject to the maximum limit prescribed under the U.P. G.S.T. Act, 2017. The Court found that the impugned penalty exceeded that limit and noted that the petitioner had already filed the return and paid the late fee in accordance with law. These findings warranted interf... ... ...

GST arrest - Commissioner's reasons to believe - GST arrest communications - Mandatory Document Identification Number GST arrest - Commissioner's reasons to believe - Legality of arrest for alleged fraudulent input tax credit where the Inspector, rather than the Commissioner, recorded the reasons to believe under Section 69 of the CGST Act - HELD THAT: - Section 69 requires the Commissioner alone to form and record reasons to believe, based on credible material, concerning commission ... ... ...

Penalty for belated filing of GST returns - Absence of finding of deliberate delay - Justification for imposing penalty for belated filing of GST returns in the absence of a finding of deliberate delay HELD THAT: - The Court considered the petitioner's submission that the late fee under Section 47 of the U.P. GST Act had also been paid. In the absence of any finding that there was a deliberate attempt to file the returns late, the penalty imposed for belated filing was not justified. [Par... ... ...

GST adjudication - Coinciding dates for reply and personal hearing Procedural validity of input-tax-credit adjudication where the deadline for replying to the show cause notice and the date of personal hearing were identical - HELD THAT: - The date fixed for submitting a reply to a show cause notice must precede the date of personal hearing. Following M/s Mahaveer Trading Company [2024 (3) TMI 334 - ALLAHABAD HIGH COURT], the Court found that fixing both for the same date constituted a proced... ... ...

GST-E-way bill requirement for goods in transit Inapplicability of the E-way bill requirement to goods transported during 01.02.2018 to 31.03.2018 - HELD THAT: - Following M/s Godrej and Boyce Manufacturing Co. Ltd vs. State of U.P. and others [2018 (9) TMI 1261 - ALLAHABAD HIGH COURT] as followed in M/s Kei Industries Ltd vs. State of U.P. and Others [2019 (2) TMI 2161 - ALLAHABAD HIGH COURT] and M/s Varun Beverages Limited vs. State of U.P. and Others [2021 (10) TMI 429 - ALLAHABAD HIGH COU... ... ...

Anticipatory bail in connection with an investigation into alleged wrongful availment, utilisation and passing on of input tax credit. HELD THAT:- Pending consideration of the anticipatory bail application concerning alleged wrongful availment, utilisation and passing on of input tax credit, interim protection against coercive steps was granted until the next hearing, subject to the petitioner joining the investigation.... ... ...

Retrospective operation of clarificatory duty drawback circular - Interest on refunded duty drawback - All Industry Rate Duty Drawback - Purposive Construction - Doctrine of Fairness - Contemporanea Expositio HELD THAT:- The Special Leave Petition was dismissed; pending applications, if any, stood disposed of.... ... ...

Interest on delayed refund under Gujarat Sales Tax regime - Applicability of rate of interest upon commencement of Gujarat Value Added Tax - Doctrine of merger in assessment and appeal - Appellate correction of assessment gives legal shape to the assessment HELD THAT:- We are not inclined to interfere with the judgment and order passed by the High Court [2019 (3) TMI 968 - GUJARAT HIGH COURT]. The Special Leave Petition is, accordingly, dismissed.... ... ...

GST arrest under Section 69 of the CGST Act requires the Commissioner personally to form and record reasons to believe, based on credible material, concerning the specified offence, the requisite intent and the justification for arrest. The reasons must identify the underlying material, show due application of mind and be communicated to the arrestee; a bare recital is insufficient. Grounds of arrest and reasons to believe require an electronically generated Document Identification Number, subject to limited exceptions and prescribed regularisation. Inclusion in an arrest memo does not dispense with that requirement.

Tax paid through Form GST DRC-03 with an incorrect financial year can be adjusted against the relevant demand through Form GST DRC-03A. Under Rule 142(2B) of the CGST Rules, the adjusted amount is treated as paid towards that demand on the original DRC-03 intimation date. Accepted payment adjustments and appropriation of a pre-deposit that reduce outstanding principal tax to nil satisfy the principal-tax payment condition for interest and penalty waiver under Section 128A of the CGST Act. The competent authority must consider those adjustments in the Electronic Liability Register when examining the waiver application.

Extended GST recovery under Section 74(1) requires a material-based conclusion, discernible from the show cause notice, that non-payment resulted from fraud, wilful misstatement or suppression of facts with intent to evade tax. Mere non-payment or erroneous self-assessment under a bona fide belief is insufficient, and an approaching limitation deadline cannot replace the statutory preconditions. A writ challenge under Article 226 may be maintained at the show cause stage where jurisdictional conditions are absent, notwithstanding the availability of statutory remedies. An authority cannot establish jurisdiction by incorrectly determining the conditions governing its power.

Suppliers may claim refunds of tax on deemed exports when recipients have not availed input tax credit and furnish undertakings permitting the claims; both parties cannot claim refunds for the same supplies. Refund applications may combine tax periods across financial years. The two-year limitation is assessed for each supply by reference to the return relating to that supply, rather than the period entered in the application. Prior intimation in Form A is required for supplies to an export-oriented unit. An appellate order granting a refund against rejection is treated as an order under Section 54(5), and interest on refunds delayed beyond 60 days is governed by Section 56.

Inspection of goods in transit is distinct from penal jurisdiction under section 129. Where documented interstate goods merely pass through a State without a tax incidence there, its authorities cannot seize them or impose a penalty under that provision; documentary deficiencies may instead be reported to the GST authorities in the origin or destination State. Such seizure and penalties infringe freedom of trade and commerce under Article 301. Section 129 addresses deliberate tax evasion, not a revenue-neutral invoice timing mismatch between distinct registrations of the same business when valid tax invoices and e-way bills cover the movement.

Verified invoices and a Chartered Accountant's certificate substantiated the disputed IGST input tax credit, and Revenue accepted that the related demand was unsustainable. CGST and SGST payments already made required full appropriation; as no tax remained unpaid, the consequential interest demand was unsustainable. Penalties for wrongful credit availment were unsustainable following payment of tax and interest within the period prescribed by section 73(8) of the CGST Act, 2017. The same reasoning applied to the IGST penalty, alongside Revenue's acceptance that the entire demand was unsustainable.