Mandatory e-way bill requirement for inter-State movement of goods - Detention and penalty for non-production of e-way bill Requirement of an e-way bill for inter-State movement of goods on 24.11.2017 and sustainability of detention and penalty for its non-production - HELD THAT: - Though rule 138 provided the mechanism for e-way bills, its mandatory nationwide operation was brought into force only with effect from 01.04.2018. Consequently, an e-way bill was not compulsorily required for the ... ... ...

Duplicate adjudication by Central and State GST authorities - Parallel proceedings by Central and State GST authorities - Sustainability of the State GST assessment and rectification orders duplicating an earlier Central GST adjudication on the same issues for the same assessment period HELD THAT: - A comparison of the orders established that both proceedings concerned identical issues and the same assessment period. Since the Central GST authorities had issued the earlier order and the appea... ... ...

Adjustment of tax paid under incorrect GST heads - Interest on tax liability discharged under incorrect GST heads Appropriation of CGST and SGST paid through a clerical error towards the corresponding IGST liability on outward supplies - HELD THAT: - Although Section 77 does not expressly provide for a case of clerical payment under the CGST and SGST heads instead of the IGST head, its underlying principle applied because the entire tax liability had been discharged within the prescribed peri... ... ...

Provisional attachment of bank accounts under GST - Statutory lapse of provisional attachment after one year Continued freezing of bank accounts provisionally attached in connection with proceedings against a company after expiry of the statutory one-year period - HELD THAT: - A provisional attachment under Section 83 is a pre-emptive measure to protect revenue and ceases by operation of law upon expiry of one year from the attachment order. Revenue confirmed that no subsequent provisional... ... ...

Deficiency memo for time-barred GST refund claim - Show-cause notice before rejection of GST refund claim Validity of a deficiency memo issued to treat a GST refund application as time barred - HELD THAT: - Rule 92(3) prescribes issuance of notice and an opportunity of hearing where the proper officer proposes to reject a refund claim wholly or partly. In contrast, Rule 90(3) concerns remediable deficiencies requiring a fresh application after rectification, with consequential exclusion of th... ... ...

Penalty for delayed GSTR-3B tax payment - Statutory conditions for waiver of penalty - Validity of penalty imposed for delayed remittance of tax under GSTR-3B during the COVID-19 pandemic period HELD THAT: - The statute permits waiver of the penalty only where tax and interest are paid within thirty days of receipt of the show cause notice. As that statutory exception did not apply, the pandemic-related delay did not furnish a ground to waive the penalty. [Paras 4] The penalty imposed at 1... ... ...

Blocking of electronic credit ledger under Rule 86A - Deemed stay on recovery upon appellate pre-deposit - Effect of appellate pre-deposit on recovery proceedings HELD THAT: - A blocking order under Rule 86A is a provisional measure requiring recorded reasons and cannot operate beyond one year. The deemed stay arising on filing an appeal after making the prescribed pre-deposit stays recovery of the balance demand and precludes appropriation from either the electronic cash ledger or the blocke... ... ...

Conditional de novo adjudication of ex parte GST demand - Pre-deposit as condition for remand - HELD THAT: - The record disclosed service of an intimation in Form GST DRC-01A and a show-cause notice in Form GST DRC-01 under section 73; hence, no procedural irregularity warranting interference was established. Nevertheless, following the consistent view in similar circumstances, the Court granted an opportunity for de novo adjudication subject to deposit of 25% of the disputed tax and submissi... ... ...

De novo GST adjudication subject to conditional deposit - Ex parte GST assessment and remand for fresh adjudication - HELD THAT: - In view of the petitioner's undertaking to make the stipulated deposit, after adjustment of any cash recovery subject to verification, the assessment was treated as an addendum to the show-cause notice. Fresh adjudication was directed upon the petitioner filing a reply with supporting documents. [Paras 7, 8, 9, 10, 11] The assessment order was quashed and the ... ... ...

Provisional attachment under the CGST Act - one-year statutory lapse and no renewal Statutory lapse of provisional attachment of bank accounts - Absence of power to renew provisional attachment - Continuation of provisional attachment of the writ petitioners' bank accounts after expiry of one year under Section 83 of the CGST Act - HELD THAT: - An order of provisional attachment ceases to have effect upon expiry of one year. Section 83 contains no enabling provision for renewal, re-issuan... ... ...

Recovery proceedings pending second appeal Recovery proceedings pending second appeal - Statutory protection against recovery - Consideration of an application for withdrawal of recovery proceedings upon filing of a second appeal under the OGST Act. - HELD THAT: - Noting that the recovery notice preceded the filing of the second appeal, the Court permitted the petitioner to invoke the statutory remedy for protection against recovery and required the competent authority to examine the applicat... ... ...

Pre-cut-off notice issued under section 87(b) to create a bank-account lien, which stated the outstanding service tax duty, constituted written quantification of duty payable under section 121(r) of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. Quantification remained sufficient although the notice did not quantify interest and was addressed to the bank rather than the taxpayer. The service tax dues therefore stood quantified, making the taxpayer eligible for Scheme benefits; rejection of the declaration for lack of quantification was unsustainable, and writ relief followed.

Rule 86A blocking of an electronic credit ledger is a provisional measure that requires recorded reasons and cannot continue beyond one year. Filing an appeal with the prescribed pre-deposit creates a deemed stay of recovery for the remaining demand, preventing appropriation from the electronic cash ledger and the blocked credit ledger. That recovery stay does not automatically lift the separate Rule 86A blocking order. Unblocking must be sought independently, and any refusal should be issued through a speaking order after consideration of the request.

Provisional attachment of bank accounts under GST is a pre-emptive revenue-protection measure that ceases by operation of law one year after the attachment order. Continued freezing cannot rest on an expired attachment where no fresh provisional attachment order has been issued. Where account holders were not recipients of a later demand-cum-show cause notice, that notice did not provide a basis to maintain restrictions on their accounts. The lapsed attachments required the bank accounts to be defreezed and made operable upon production of a certified copy of the order.

Tax paid under the CGST and SGST heads through a clerical error may be appropriated towards the corresponding IGST liability where the entire liability was discharged within the prescribed period. Although Section 77 does not expressly address this payment error, its underlying principle avoids requiring the taxable person to make a duplicate payment and then pursue a refund. Interest should not apply where the required tax has already been remitted, albeit under incorrect GST heads. Appropriation may be made on application, with a refund application filed if required procedurally.

Parallel Central and State GST proceedings concerning identical issues for the same assessment period require avoidance of duplicate adjudication. Where Central GST authorities issue an earlier adjudication order and an appeal against it remains pending, subsequent State GST assessment and rectification orders addressing the same issues and period cannot be sustained. The overlap between the two proceedings makes the later State GST action duplicative of the prior Central GST adjudication.

Mandatory nationwide e-way bill compliance for inter-State movement of goods took effect only from 1 April 2018, despite rule 138 having provided the operational mechanism earlier. Non-production of an e-way bill for goods intercepted before that date therefore did not justify detention or penalty. Correspondence between the goods, invoice and transport documents, coupled with the absence of discrepancies or material indicating intent to evade tax, supported deletion of the detention proceedings and penalty. The Revenue's challenge against that deletion failed.

E-way bill validity requires Part B to state the actual vehicle used for movement; a concession for minor clerical errors does not cover entirely different vehicle particulars. Transport under an expired e-way bill bearing a wholly different vehicle number may support a rebuttable presumption of intent to evade tax. Mens rea is not required for a civil fiscal penalty unless the governing enactment makes it essential. The presumption remains rebuttable through surrounding facts, but failure to provide a satisfactory rebuttal supports penalty under the CGST/UPGST transport-of-goods provisions. On the stated facts, the penalty was sustained and the second appeal dismissed.

Inverted duty structure refund computation requires accurate determination of turnover of inverted-rated supplies and adjusted total turnover. The treatment of outward supplies allegedly taxable at a higher rate must be verified before deciding whether they form part of the relevant turnover figures. Where supporting invoices or other documents are unavailable and the relevant issue has not been examined, the admissible accumulated input tax credit refund cannot be correctly quantified. Refund computation requires fresh examination after production of relevant records and a reasonable opportunity for both sides to address the turnover treatment.

Pre-GST service tax paid on advances for flat bookings later cancelled after the appointed day does not qualify as input tax under the CGST/SGST Acts and cannot be carried as GST input tax credit. Where services are ultimately unprovided, the transitional provision requires the service-tax refund claim to be processed under the existing law and paid in cash. Taxpayers cannot adjust that claim through an electronic credit ledger without specific statutory authority. The claimed GST credit was therefore inadmissible.