Tag: Bombay HC

ArticleGST Article

Doctrine of Proportionality applied to restore GST Registration on the condition of the  Taxpayer making complete payment

byCA Bimal Jain

The Hon’ble Bombay High Court in the case of Azaria Corp LLP v. The Deputy Commissioner of State Tax [Writ Petition No. 443 of 2025, order dated September 20, 2025] held that permanent cancellation of GST registration for procedural lapses, such as failure to file returns or timely pay dues, is disproportionate if the taxpayer has subsequently paid all outstanding amounts including dues, interest, and late fees, and made additional CSR contribution as directed by the Court.​

ArticleGST Article

Blocking of Electronic Credit Ledger under Rule 86A Requires Recorded Reasons and Timely Post-Decisional Hearing

byCA Bimal Jain

The Hon’ble Bombay High Court in the case of  Rithwik Projects Private Limited v. Union of India & Ors. [Writ Petition No. 12116 of 2025, order dated October 01, 2025] held that blocking the credit ledger account under Rule 86A of the CGST Rules without providing a timely post-decisional hearing violates principles of natural justice, and such orders must be set aside if statutory conditions are not followed.​​

ArticleGST Article

Issuance of pre-show cause consultation is mandatory before issuing show cause notices above ₹50 lakhs

byCA Bimal Jain

The Hon’ble Bombay High Court in the case of Rochem Separation Systems India Pvt. Ltd. v. Union of India & Ors. [W.P. No. 822 of 2021, order dated September 23, 2025] held that pre-show cause consultation (as mandated for service tax demands over ₹50 lakhs by CBIC’s Master Circular No. 1053/02/2017-CS dated March 10, 2017 and CBIC’s Circular No. 1076/02/2020-Cx dated November 19, 2020 is compulsory for the department and binding. Show cause notices issued without this mandatory pre-consultation are liable to be quashed, though revenue may issue fresh notices after due process, and the limitation period is to be excluded for the duration of court proceedings and consultation.

ArticleGST Article

Writ Jurisdiction not invocable Against GST Adjudication Order Solely for Erroneous Section Reference in SCN/ Order

byCA Bimal Jain

The Hon’ble Bombay High Court in M/s. MRJS Lead Private Limited held that a writ petition challenging the GST adjudication orders cannot be maintained merely because the show cause notice invoked an allegedly incorrect section when the Petitioner has already availed statutory appellate remedies and that these arguable jurisdictional issues may be raised before the appellate authority and do not justify bypassing the remedy provided by law.

ArticleGST Article

No GST at the time of entering into a JDA but, will arise at transfer/possession via conveyance/allotment letter only with actual transfer under conveyance

byCA Bimal Jain

The Hon’ble Bombay High Court in the case of Provident Housing Ltd. held that there is no GST liability on the developer under a Joint Development Agreement (JDA) when the developer becomes the owner of the property pursuant to conveyance, rendering all prior claims under the JDA extinguished.