The Chhattisgarh High Court entertained the first bail application of the applicant accused of creating bogus GST firms, issuing fake invoices/E-way bills, and availing fraudulent ITC exceeding Rs.23 crore. Despite allegations of economic offence, the Court noted that the complaint had already been filed and the applicant had remained in custody since 08.08.2025. Considering ongoing investigation and likely delay in trial, regular bail is granted on the applicant furnishing requisite bond and surety

Heard the learned counsel appearing for the petitioner and learned counsels representing the respondents.

- The Gauhati High Court examined the constitutional validity of Section 16(2)(aa) of the CGST/AGST Act, which links Input Tax Credit entitlement to the supplier’s uploading of invoices in GSTR-1. The Court held that denying ITC to a bona fide purchaser due to a supplier’s non-compliance imposes an inequitable burden and defeats GST’s objective of avoiding tax cascading. While not striking down the provision, the Court read it down to protect genuine purchase

The Allahabad High Court granted interim protection against recovery proceedings arising from composite demand-cum-show cause notices issued under Section 74 for multiple tax periods. Relying on consistent interim orders and favourable decisions of other High Courts, the Court held that a prima facie case exists warranting stay of coercive action pending final adjudication.

The Delhi High Court held that GST demands relating to periods prior to approval of a Resolution Plan under the Insolvency and Bankruptcy Code, 2016 cannot be sustained once the corporate debtor is taken over on a “clean slate basis”. Since the final approval of the Resolution Plan for Ruchi Soya Industries Ltd. (now Patanjali Foods Ltd.) was on 04.09.2019, all statutory dues prior thereto stood extinguished, and fresh proceedings could be initiated only for the post-resolution period.

The Allahabad High Court quashed a GST demand raised under Section 73 where the show cause notice and adjudication order were issued in the name of a deceased proprietor. The Court held that proceedings against a dead person are void ab initio and liability under Section 93 can arise only after valid proceedings against legal representatives.

Interest on Delayed Refund under GST – Statutory Right of the Taxpayer Statutory Framework – Section 56 of the CGST Act, 2017

The Delhi High Court set aside an ex-parte GST demand order passed under Section 73 where the assessee failed to reply to the show cause notice and attend personal hearing, leading to bank account attachment under Section 83. While the validity of limitation-extension notifications under Section 168A is pending before the Supreme Court, the Court remanded the matter to the adjudicating authority, granted opportunity to file reply and personal hearing, lifted provisional attachment subject to safeguards, and imposed costs for belated approach.

The Delhi High Court declined to interfere with an order raising demands for alleged fraudulent availment of ITC and relegated the assessee to the statutory appellate remedy. The Court clarified the correct appellate authority in cases adjudicated by common adjudicating authorities under DGGI investigations involving multiple jurisdictions. It held that the appeal lies before the Commissioner (Appeals) having territorial jurisdiction over the adjudicating authority, as per applicable notifications and CBIC circulars, and granted protection from limitation.

The petitioner was arrested in a GST offence case and sought regular bail. The department registered a case alleging offences relating to wrongful availment of input tax credit and the petitioner was taken into custody on 28.05.2025.

Heard both sides and perused the materials placed on record. By consent of both sides, this writ is taken up for final disposal at the admission stage itself.

A case was registered alleging offences under the GST law and the petitioner was arrested on 28.05.2025. The petitioner filed this petition seeking bail in connection with that arrest.