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Corporate News *  GST authorities’ certification not mandatory for reimbursement, but tax payment must be proven: Karnataka HC *  Contractor can’t seek gst reimbursement through writ when contract has arbitration clause: Karnataka HC *  Unsigned Order Is No Order in Law: AP HC Quashes GST Assessment Order for Want of Officer’s Signature *  Customs Can’t Levy Rs. 1.36 Crore Cost Recovery Charges Without Proof of Full-Day Officer Deployment: CESTAT  *  12% IGST Payable On Imported Dialysis Machine Parts: CESTAT *  Bombay High Court Admits Challenge to GST Limitation Extension Notifications; Grants Protection Against Coercive Recovery *  Criminal Case Can’t Run Parallel to GST Proceedings on Same Facts: Allahabad High Court *  Allahabad High Court Stays GST Detention Order; Directs Release of Vehicle and Goods on Deposit of Rs. 1.44 Lakh *  Service Tax Can’t Be Levied on Loss-Making Contracts: Gujarat High Court *  GSTN Mandates Ship-to GSTIN in e-Invoice and e-Way Bill APIs; Introduces Voluntary e-Way Bill Closure Facility from August 1, 2026 *  GST Appeal Can’t Be Rejected as Time-Barred When Taxpayer Was Pursuing Rectification Remedy: Telangana High Court *  Absence of E-Way Bill and Transport Documents Justifies Customs Seizure U/s 110: Gauhati HC *  Madras High Court Upholds GST Late Fee and Penalty for Non-Filing of Annual Return, Dismisses Challenge  *  GST Records, Purchase Documents Sufficient to Discharge Burden Under Customs Act: CESTAT Orders Release of 3.65 Kg Gold  *  No Sugar Cess Payable on Sugar Exported Out of India: CESTAT *  Road Construction Services Exempt and SCN Time-Barred: CESTAT Quashes Service Tax Demand Based Solely on Form 26AS  *  ITC Freeze Upheld After GST Dept Find Suppliers Were Allegedly Fake Bill-Trading Entities: Madras HC  *  Haryana GST Dept. Directs Physical Intimation of SCNs and Demand Orders By Post Despite Portal Service  *  Service Tax Liability Can’t Be Computed Without Extending Benefit Of Cum-Tax Valuation Where Consideration Received From Customers Was Inclusive Of Service Tax: CESTAT *  CA Certificate and Buyer Confirmation Sufficient to Rebut Unjust Enrichment: CESTAT   *  SEZ Service Tax Refund Can’t Be Denied for Invoice Discrepancies When Services Were Used for Authorized Operations: CESTAT *  Madras High Court Stays GST Order, Finds Prima Facie Merit in Plea Against S. 74 Proceedings Based on S. 73 Intimation. *  Madras High Court Stays GST Order Denying ITC on Captive Solar Power Plant *  CBIC Continues Tariff Values for Gold, Silver, Edible Oils and Areca Nuts Under Customs Valuation Framework *  Customs Dept. Can’t Deny Exemption Benefits Based On Laboratory Test Reports Not Drawn As Per ISI: CESTAT *  No Service Tax On Reimbursed Salary of Seconded Employee: CESTAT *  Customs Dept. Can’t Deny Exemption Benefits Based On Laboratory Test Reports Not Drawn As Per ISI: CESTAT *  Service Tax Not Payable on Hostel Buildings Rented to Educational Institutions: CESTAT *  GST Penalty on Partners Valid Even for Pre-2021 Transactions U/s 122(1A): Gauhati High Court  *  KYC Verification Of Importer By Customs Broker Through Govt. Portals Enough, No Physical Verification Required: 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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