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Corporate News *  Refund can’t be denied merely for not challenging Bill of entry when exempt duty was paid inadvertently: Punjab & Haryana High Court. *  GST Appeal limitation must run from DRC-07 communication, not detailed adjudication order: Madras High Court. *  GST amnesty waiver covers self-assessed tax: Madras High Court. *  AIFTP seeks one-time GST amnesty to revive appeals dismissed for delay under section. 107. *  Customs cargo service provider suspension can’t continue indefinitely under regulation 11(2) of HCCAR: CESTAT *  Madras High Court stays GST demand after finding prima facie double taxation in ongoing housing project. *  GST appeal filed before extended deadline can’t be rejected on limitation without considering CBIC relief notification: Gujarat High Court. *  No right to representation against Anti-dumping findings: Delhi High Court *  Wrong service classification alone can’t justify extended limitation without proof of tax evasion: Rajasthan High Court. *  Importer can’t be penalised when exporter’s DFIA licence remained valid, fraud allegations failed: CESTAT. *  Registry can’t decide complex legal issues: GSTAT refers appeal over pre-deposit linked to Amalgamated Entity. *  GST ITC dispute over ERP software must be decided on proof of utilisation, not just bogus supplier allegation: Madras High Court. *  Supreme court stays GST SCN over parallel proceedings during pending statutory appeal *  CESTAT quashes excise duty demand on poultry cage weld mesh. *  Proforma invoice valid for availing CENVAT credit if service tax is paid: CESTAT. *  Commission retained on air tickets bought through GSA/IATA agents not taxable as business auxiliary service. *  CENVAT credit can’t be denied on duty-paid inputs from area-based exempt units: CESTAT. *  Gross GST collections surge 15.4% to reach Rs 2.11 lakh crore in July 2026. *  Ghaziabad DGGI | Court Extends Judicial Custody of 2 Accused Involved In GST Fake ITC Fraud of ?31.57 Crore Till 7 August 2026 *  Uploading GST Orders on Portal Alone Is Not Valid Service: Punjab & Haryana High Court *  Company Must Be Made Accused Before Fastening Vicarious Liability Against Director In GST Prosecution: Punjab & Haryana High Court. *  No liability without proof of prior knowledge of import misdeclaration: CESTAT drops penalties on customs broker orders. *  4-Day hearing notice violated natural justice: Rajasthan High court quashes Ex-parte GST registration cancellation appeal order. *  10% GST penalty pre-deposit rule not applicable where SCN issued before 1st October 2025: Delhi High Court. *  Stock discrepancy alone can’t prove clandestine removal: CESTAT. *  Dept. can’t deny refund for missing challan in its own records: CESTAT. *  GST dept. can’t arbitrarily treat same services as ‘Intermediary’ for one period and ‘Export of Services’ for others: Punjab & Haryana High Court. Orders. *  Manufacturers can’t claim proportionate cess relief for machines installed during the month: Gujarat High Court. *  GST dept. can’t rely on Prospective rule. 88B amendment to ignore existing judicial precedent: Gujarat HC. *  ITC relief denied where supplier fails to deposit tax: Supreme Court upholds validity of sec. 16(2)(c) of CGST Act.
Subject News *  GST Dept. must establish deliberate tax evasion before using extended limitation: GSTAT. *  GST officers can’t keep business premises sealed after search ends: Gauhati High Court. *  GST adjudication order ignoring CBIC circular challenged: Bombay HC grants ad-interim protection to Skoda Auto Volkswagen. *  Alleged evidentiary errors, cross-examination issues, earlier GST audit questions must be raised before Appellate authority: Delhi High Court. *  GST appeal can’t be rejected on erroneous limitation calculation: Madhya Pradesh High Court. *  Adjudication and Appellate orders passed without supplying seized documents to assessee quashed: Bombay High Court stays coercive GST recovery. *  GST search without sharing DIN violates transparency safeguards, but doesn’t invalidate search: Madras High Court. *  Statutory GST appeal can’t be circumvented by mere natural justice allegations: Bombay HC. *  Whether banks can simultaneously avail ITC u/s 17(2) and 17(4)? - Madras High Court stays GST adjudication against City Union Bank. *  Driver’s statement on plain paper has ‘Very Little Evidentiary Value’: Allahabad High Court quashes GST penalty order. *  CENVAT credit can’t be denied on duty-paid inputs from area-based exempt units: CESTAT. *  Ignoring taxpayer’s reply while rejecting GST refund is illegal: Bombay High Court. *  Dept. can’t allege suppression after earlier audit on same issue: CESTAT quashes Excise demand on limitation. *  Sales-tax concession cannot be denied unless government notification is expressly rescinded: Telangana High Court. *  GST appeal delay condoned after portal continued to show case as ‘Pending for order’: Rajasthan High Court. *  Customs duty exemption can’t be denied without test report to support reclassification: CESTAT. *  Recovery can’t continue during pending GST appeal: Punjab & Haryana High Court directs ITC unblocking after statutory pre-deposit. *  Revenue neutrality must be proven with evidence, not assumptions: Madras High Court restores Rs. 20.37 crore Excise demand. *  GST limitation applies to issuance of assessment order, not its service: Calcutta High Court. *  Time barred SCN can’t sustain service tax demand against sub-contractor: CESTAT. *  Absence of mandatory approval in GST sec. 74 adjudication, Karnataka High Court restrained dept. from coercive action. *  GST registration cancellation: Karnataka High court holds appeal u/s 107 is proper remedy *  Service tax tecovery from deceased proprietor’s widow quashed: Chhattisgarh High Court *  No coercive GST recovery against former partner till appeal is decided: Himachal Pradesh High Court. *  GST appeal barred by limitation, Rajasthan HC allows delayed appeal where delay was beyond taxpayer’s control. *  GST on diagnostic services must first be decided by AAR, not High Court: Delhi HC *  Interim relief granted against GST demand on RIICO land conversion premium: Rajasthan High Court *  Printing manufacturer’s name on packaging for statutory compliance is not branding, GST exemption can’t be denied: GSTAT *  Overseas marketing & support services are export of services, not intermediary services: CESTAT. *  Duty paid through CENVAT credit can’t be demanded again in cash: CESTAT  

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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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