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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
Subject News *  GST summons: anticipatory bail maintainable without arrest order, but relief denied in evasion case: Allahabad High Court. *  GST Appeal can’t be decided without hearing taxpayer’s objections to fresh evidence: Allahabad High Court. *  GST ITC can’t be reversed merely because supplier grants discount without reducing tax liability: GSTAT. *  Mere quoting of GST provision is not a valid charge: GSTAT quashes ITC denial. *  Personal hearing mandatory before adverse GST order, even without taxpayer’s request: Rajasthan High Court. *  Parallel bail pleas without full disclosure amount to abuse of process Rs. 43.08 crore GST case sent for fresh hearing: Supreme Court. *  GST refund based on unchallenged advance ruling can’t be recovered using later circular: GSTAT. *  Payment of GST alone doesn’t end interest and penalty liability when tax and interest remain unpaid beyond 30 days of notice: GSTAT. *  GST demand over builders’ 80% procurement rule requires reasoned adjudication: GSTAT. *  Eligible ITC doesn’t automatically entitle taxpayers to compensation cess refund on domestic sales: GSTAT. *  GST confiscation order passed before reply deadline invalid: GSTAT. *  GST interest can’t be retained after tax refund on delayed export receipts: Punjab & Haryana High Court. *  GST appeal can’t be dismissed over pre-deposit shortfall without opportunity To respond: Bombay High Court. *  DGGI SCN can’t be challenged before reply and adjudication:Chhattisgarh High Court. *  GST input tax credit can’t be denied solely due to supplier’s retrospective registration cancellation: GSTAT. *  GST notice must explain fraud allegations; merely repeating section 74 Is not enough:  Himachal Pradesh High Court. *  Audit detection alone can’t justify GST fraud penalty; specific suppression must be proved: GSTAT. *  GST order uploaded only under ‘Additional Notices’ tab without separate intimation set aside: Calcutta High Court. *  Service Tax appeal can’t be rejected for missing pre-deposit proof when payment is already recorded: CESTAT. *  SGST dept. can’t hear appeal against CGST order: Calcutta High Court. *  Mere dispatch of tax order can’t prove service or make appeal time-barred: CESTAT. *  Dealer incentives can’t be taxed merely on ledger entries: CESTAT. *  DGFT orders quashed for failure to supply DRI letter relied upon in SCN: Bombay High Court. *  GST penalty u/s 122(1A) can’t apply to Pre-2021 transactions; unregistered beneficiaries also covered: Delhi High Court. *  Expired E-way bill caused by wrong PIN code can’t justify GST penalty without intent to evade tax: GSTAT. *  Used railway rails can’t be taxed as track material without proof they are fit for reuse: CESTAT. *  Earlier DGGI notice doesn’t bar separate GST demand on different issue: Delhi High Court. *  ITC dispute involves no question of law: GSTAT directs appeal to Vice-President. *  Earlier DGGI notice doesn’t bar separate GST demand On different issue: Delhi High Court. *  No E-way bill required for interstate goods movement in november 2017: GSTAT quashes detention and penalty.  

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GST update /2026-27/0035

GST update on Ratnesh Singla
GST UPDATE
Hon’ble Court: HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Case Title: Ratnesh Singla vs Directorate General of GST
Petition No.: CRM-M No.15552 of 2026 (O&M)
Hon’ble Judge(s) HON'BLE MR.JUSTICE SURYA PARTAP SINGH
Date of Order 18.05.2026
Outcome In favour of the Appellant

Brief Facts of the Case
GST Authorities conducted a raid operation on the principal place of business of the petitioner and its partner on allegations of fraudulent GST transactions and availment of fake ITC in an illegal manner Pursuant to the raid proceedings, the petitioner was taken into custody and investigation was initiated under the provisions of the CGST Act, 2017. The department alleged that the petitioner was involved in creation and operation of fake firms for passing inadmissible ITC without actual supply of goods or services, thereby causing loss to the Government revenue. The petitioner remained in judicial custody for approximately four months and thereafter approached the High Court by means of current writ petition seeking grant of regular bail.
Relevant Section
• Section 132 of CGST Act, 2017
• Section 69 of CGST Act, 2017
• Section 439 of Cr.P.C.
• Article 21 of Constitution of India
Question before Hon’ble Court
Whether the petitioner accused of GST offences involving alleged fake transactions and wrongful ITC availment was entitled to grant of regular bail?
Brief Arguments by Petitioner
• The petitioner strongly contended that the department has illegally alleged that the petitioner and his partner had availed fraudulent Input Tax Credit through fake invoices issued. However, there was no credible evidence available with the department to substantiate such serious allegations.

• The petitioner submitted that all relevant documents like duly certified balance sheets, GST invoices, E-way bills, and other supporting business records proving actual business operations had already been provided to the authorities. These documents clearly established that genuine business activities were being carried out and that there was no wrongful availment of ITC without actual transactions. Despite this, the department allegedly ignored the valid explanation and proceeded to illegally arrest the petitioner on 20.01.2026.


• Arrest Was Illegal and Procedurally Improper
The petitioner further challenged the legality of the arrest. It was argued that the petitioner was actually detained on 19.01.2026, whereas the formal arrest was shown on 20.01.2026, Further, the grounds of arrest were not communicated to the petitioner prior to arrest.

• The petitioner contended that he had already undergone incarceration for more than four months and had no criminal antecedents. It was further argued that the alleged offence was punishable with a maximum imprisonment of five years. Further, the entire evidence in the case was documentary in nature which had already been collected by the department and therefore further judicial custody of the petitioner would serve no useful purpose.
Brief Arguments by Respondent
• The respondent department opposed the bail application by contending that the allegations pertained to serious economic offences involving GST fraud and wrongful availment of ITC. The department focused on the gravity and magnitude of the alleged GST evasion causing substantial loss to the Government revenue.

• The department contended that merely because certain documents were seized on 19.01.2026, it cannot be inferred that the petitioner was illegally detained on that date. It was submitted that the petitioner was present before the Superintendent, Anti-Evasion, CGST Commissionerate, Ludhiana on 19.01.2026 and his statement was recorded under Section 70 of the CGST Act. Thereafter, an authorization order under Section 69(1) of the CGST Act was duly passed by the Principal Commissioner, CGST Ludhiana, pursuant to which the petitioner was formally arrested on 20.01.2026.

• The respondent specifically denied the allegation of the petitioner that the grounds of arrest were not supplied before arrest. It was contended that the grounds of arrest had been duly served upon the petitioner in accordance with law.


• The department argued that if released on bail, the petitioner may tamper with evidence and adversely affect the investigation proceedings.
Cases Relied Upon
Case Law Citation
Balwinder Singh versus State of Punjab and another 2024 SCC Online SC 4354
Satender Kumar Antil vs Central Bureau of Investigation (2022) 10 SCC 51
P. Chidambaram vs Directorate of Enforcement (2020) 13 SCC 791
Dataram Singh vs State of Uttar Pradesh (2018) 3 SCC 22
Arnesh Kumar vs State of Bihar (2014) 8 SCC 273
Findings and Judgement
• Right to Speedy Trial is a Constitutional Right
The Court emphasized that the right to speedy trial forms part of fair, just and reasonable procedure guaranteed under Article 21 of the Constitution of India. The Court noted that the petitioner had already remained in judicial custody for approximately four months. The Court observed that prolonged detention before conclusion of trial cannot be justified as it was observed that the trial was not likely to conclude in the near future. Accordingly, continued incarceration of the petitioner for an indefinite period was held to be unjustified.

• No Evidence Showing Possibility of Tampering
The Court observed that the respondent department failed to convince the Court that the petitioner, if released on bail, would tamper with evidence or influence witnesses. Further, there was nothing on record to show likelihood of non-cooperation by the petitioner.
• Bail is the Rule and Jail is the Exception
The Court referred to the principles laid down in Dataram versus State of Uttar Pradesh and anotherwherein the Hon’ble Supreme Court held that:
• presumption of innocence is a fundamental principle of criminal jurisprudence;
• grant of bail is the general rule;
• and incarceration before conviction should remain an exception.
The Court observed that denial of bail must be justified on strong reasons and courts must periodically introspect whether continued detention is actually necessary.
• Bail Cannot Be Denied Merely Due to Seriousness of Allegations
The Court thereafter referred to the judgment of the Hon’ble Supreme Court in Sanjay Chandra (supra) wherein it was held that the benefit of bail cannot be denied merely because the allegations are serious or involve huge loss to the State exchequer. The Court observed that while considering bail applications, the constitutional right to speedy trial guaranteed under Article 21 of the Constitution of India must also be kept in mind.
• Undisputed facts of the instant case
Before proceeding with the decision, the Court emphasised on the undisputed facts of the case which were relevant for the decision which are reproduced as follows:
i) the petitioner is already in custody for a period of approximately four months; ii) the petitioner has clean antecedents;
iii) the maximum punishment prescribed for the commission of offence allegedly committed by the petitioner, is imprisonment up to 7 years;
iv) the entire evidence to be collected by the investigating agency is documentary in nature, and therefore, detention of petitioner in judicial custody is not likely to serve any purpose;
v) argument of learned Senior Standing counsel for the respondent fails to convince that if released on bail the petitioner may tamper with the evidence as in the last four months the search of collection of evidence must have been completed by the petitioner;
vi) the trial is not likely to be concluded in near future;
vii) the detention of petitioner in judicial lock-up is not likely to serve any purpose;
viii) there is nothing on record to show that while on bail, the petitioner is likely to tamper with the evidence or influence the witnesses; and
ix) there is nothing on record to show that while on bail, the petitioner will not participate/cooperate in trial.

Accordingly, the petition was allowed and bail was granted subject to the conditions:
• the petitioner shall not influence, threaten or induce any person connected with the case or interfere with the evidence;
• the petitioner shall inform the trial Court about any change in address during pendency of the trial; and
• the petitioner shall not leave India without prior permission of the trial Court.
 
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