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Corporate News *  GST interest recovery after time-barred assessment set aside: MP High Court *  GST demand based on return scrutiny requires prior ASMT-10 notice: Gauhati High Court. *  GST hearing notices sent to wrong email: disputed service must be examined in statutory appeal: Delhi High Court *  Car dealer’s sales incentives, trade discounts not liable to service tax: CESTAT *  GSTAT may refuse appeals involving up to Rs. 50,000: GSTAT. *  Insurance premium remitted to insurer cannot be added to lender’s taxable service value: CESTAT. *  GST provisional attachment ends after one year: Delhi High Court declines immediate release of ?57.89 Lakh. *  Customs can’t apply new 100-unit import limit retrospectively: Telangana High Court quashes confiscation of used MFDs. *  E-Way bill Part-B lapse alone can’t justify GST penalty without intent to evade tax: GSTAT. *  Railway construction work doesn’t automatically qualify for 12% GST: GSTAT. *  GST exemption for northeast helicopter travel, coffee curing; GTA relief restricted for E-commerce goods from 1 November, 2026: FinMin. *  GST amendment allows same-line business ITC for hotels, restaurants and caterers from 1 November, 2026: FinMin. *  GST exemption covers banks’ internal fund transfer interest; NBFC co-lending services taxable: CBIC. *  Rs. 11,000 crore customs demand: volkswagen cites five-year limit, centre alleges delayed disclosure before Bombay High Court. *  GST e-invoice data services to face 28-hour downtime from october 31; GSTR-1 auto-population affected. *  GST on highway O&M services under toll-operate-transfer model linked to escrow debits from 1 November, 2026: FinMin. *  GST on delivery services: E-commerce operators to pay tax unless supplier liable for registration from 1 November, 2026: FinMin. *  GST reverse charge on passenger vehicle rentals: invoice condition changed from 6% to 9% CGST From 1 November, 2026: FinMin. *  Invoices, E-way bills not enough when goods don’t match records: GSTAT restores ?47.11 lakh tax and penalty. *  Railway contractors failing to produce consignor, consignee records liable to VAT as deemed dealers: Allahabad High Court. *  No pre-deposit for GST interest-only appeal when tax is fully paid: Bombay High Court quashes recovery notices. *  SUV ground clearance must be measured in laden condition for Pre-July 26, 2023 supplies: GSTAT quashes ?9.76 crore cess demand. *  GST demand can’t be confirmed without show cause notice; DRC-01 summary no substitute: GSTAT Bengaluru. *  GST post-sale discount conditions eased from November 1; 90% provisional refund extended to inverted duty claims: CBIC. *  DGGI Vijayawada: expansion of fake ITC probe alone no ground to cancel bail: Andhra Pradesh High Court. *  Customs can sample imported areca nuts to investigate misdeclaration: Calcutta High Court. *  Central Board of Indirect Taxes and Customs issued eight new GST circulars and notifications on October 26, 2026, to streamline compliance and enforcement. *  Detained goods claimed by owner can be released separately on payment of penalty: Madras High Court *  GST registration cancelled for non-filing of returns Can Be Restored on Conditions; Pending Dues Can’t Be Paid Using ITC: Madras High Court *  22% GST Compensation Cess Applies to SUVs: GSTAT.
Subject News *  Engineering consultancy for Indian project supplied to Japan not liable to service tax: CESTAT. *  Export overvaluation can be examined without fresh customs valuation: Delhi High court restores drawback recovery order. *  Wrong TRAN-1 column can’t defeat admitted Rs. 6.29 crore GST transitional credit: Bombay High Court. *  Bombay High Court quashes customs order after challenge over alleged AI-generated Supreme Court judgments. *  DGFT can’t reject import registration over HS code mismatch without opportunity to explain: Bombay High Court. *  GST notice despite advance ruling: Gujarat High court restrains final order without its permission. *  Common GST SCN not defective merely because it covers multiple noticees: Delhi High Court. *  GST interest recovery after time-barred assessment set aside: MP High Court. *  Excess stock estimated by eye can’t justify GST confiscation: GSTAT *  Customs can’t retain seized cash without timely notice or valid extension: Supreme Court leaves Rs. 1 lakh costs against DRI intact. *  Surat DGGI | further investigation can’t continue endlessly: Gujarat High Court grants bail in Rs. 43–44 crore fake GST input tax credit case. *  Customs broker’s hearsay statement, ?1.5 lakh transfer insufficient to establish nexus with heroin import: Bombay High Court grants NDPS bail. *  Seized diary entries alone can’t establish suppressed GST turnover without transaction-wise verification: GSTAT. *  Invoice numbering error can’t justify detention of areca nuts, ?6.65 lakh GST penalty: GSTAT. *  GST pre-deposit refund can’t be denied merely because dept. files appeal: CBIC. *  No reverse charge service tax on services received before April 18, 2006: CESTAT. *  Supplier’s retrospective GST cancellation alone can’t deny input tax credit; fraud must be established under section 74: GSTAT. *  E-Invoice portal glitch can’t justify 200% GST penalty without intent to evade tax: GSTAT. *  Cascading effect’ can’t override ?2 crore appeal limit: Delhi High Court dismisses Service Tax Appeals. *  GSTR-1 duplication can’t create tax liability without second supply: GSTAT. *  GST penalty can’t rest on driver’s uncorroborated statement when iron scrap matches valid documents: GSTAT. *  Accountant’s absence delayed stock entries: GSTAT rejects deptartment’s plea for confiscation. *  GST registration restored: Deptartment’s appeal becomes infructuous despite illegal delay condonation: GSTAT. *  Belated ITC-03 filing warrants fresh review of GST composition scheme denial: Madras High Court *  GST appeals can’t be dismissed for non-prosecution: GSTAT. *  GST refund can’t be rejected without SCN; appellate hearing can’t cure defect: GSTAT. *  Delhi High Court - An Advocate cannot claim client privilege as an absolute bar to a GST investigation where there is prima facie material suggesting his own involvement in the affairs under investigation. *  Madras High Court - SEZ unit is eligible to claim refund of unutilised ITC; such entitlement cannot be restricted merely because Rule 89 specifically refers to a supplier to an SEZ. *  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.  

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PJ case law/2026-27/06

Kwal Pro Exports
AUTHOR’s COMMENT : 
The judgement is a very welcoming judgement as it reinforces the principle that where there is no wilful misstatement or suppression of facts or fraud conducted then in such cases Section 74 cannot be imposed. Mere wrong availment or non-payment does not necessarily indicate collusion, wilful misstatement, or suppression of facts specially in those cases where invoice value has been paid along with tax to the suppliers. Therefore, tendency of the department to invoke Section 74 in routine cases is not justified. In the present case, the adjudicating authority itself has concluded that the essential ingredients of Section 74 were not established and has accordingly shifted the proceedings to Section 73. This finding is of considerable significance as it enables the appellant to avail the benefit of the amnesty scheme introduced under Section 128A of the CGST Act, subject to fulfilment of the prescribed conditions, thereby becoming eligible for waiver of the applicable interest and penalty.
Further, General Penalty under Section 125 cannot be invoked by Revenue department in every case as this penalty is specifically only for those cases where the facts are not covered by any specific penalty. Department officials should first look into the facts of the case carefully, before invoking any provisions of the act randomly. 

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