How a GST demand is raised often decides whether it survives. This digest groups 23 recent rulings on the invocation of section 74, service of notices and orders on the portal, orders without DIN, audits, proceedings after a taxpayer's death, provisional attachment and other procedural issues.
Each heading links to our detailed posts.
Key trends from these rulings
- After the Supreme Court's 2026 ruling in Tata Steel, GSTAT benches are insisting that the show cause notice itself must state the foundational facts of fraud or suppression; detection in audit or late payment is not enough (Summit Hotels, Conduent, RLCR 7).
- Paying tax and interest before the notice is a strong shield against penalty (Aditi Enterprises, Conduent).
- Notices and orders placed only under the 'Additional Notices and Orders' tab have led courts to remand cases (Sabari Infra, East Coast Constructions); service on an unauthorised employee is not valid service (Saral Wire Craft, Supreme Court).
- Orders without a DIN are being set aside (Edifice), as are assessments that tax all-India figures in one state (Ralco Synergy).
- On death of a taxpayer, the Delhi High Court allowed proceedings to begin against the legal heir under section 93, while the AP High Court set aside an order passed against a deceased proprietor without notice to the legal representative.
Section 74, suppression and penalty
- GSTAT Kolkata - Summit Hotels & Resorts: GSTAT Kolkata dismisses Revenue appeal: late payment of tax and late returns, all disclosed, cannot attract section 74; SCN lacked foundational facts (Tata Steel).
- GSTAT Bengaluru - Conduent Business Services: GSTAT Bengaluru sets aside s.74 penalty: audit detection is not suppression and tax with interest was paid before the SCN; bias plea rejected.
- GSTAT Chandigarh - RLCR 7 Super Market: GSTAT Chandigarh upholds consolidated SCN for July 2017 to March 2022 but sets aside section 74 demand built on boilerplate audit wording; remand under section 73.
- GSTAT Lucknow - Aditi Enterprises: GSTAT Lucknow sets aside ₹23.40 lakh penalty as ₹2.34 crore tax was paid via DRC-03 before SCN, and orders month-wise recomputation of ₹75.23 lakh interest.
- Gujarat HC - Amul (GCMMF): Gujarat HC quashes section 74 order against Amul federation: HO services to branches with full ITC and no invoice are valued Nil under Rule 28 and circulars.
Service of notices, portal tabs and DIN
- Madras HC - Sabari Infra: Madras HC quashes five section 74 orders for 2017-18 to 2021-22 as notices sat in the 'Additional Notices and Orders' tab and went unnoticed; fresh orders ordered.
- Madras HC - East Coast Constructions: Madras HC sets aside a section 73 order as DRC-01A and DRC-01 were hosted under 'View Additional Notices and Orders'; department told to address the portal issue.
- Madras HC - S V Engineering: Madras HC sets aside ex parte section 74 orders: portal upload is valid service, but if no reply, officer should use other modes under section 169, preferably RPAD.
- Supreme Court - Saral Wire Craft: Supreme Court holds an adjudication order handed to a daily-wage kitchen boy is not valid service; limitation runs from actual knowledge and appeal must be heard.
- AP HC - Edifice (Bharat): Andhra Pradesh HC sets aside a DRC-07 order that carried no DIN, following Pradeep Goyal (SC) and CBIC Circular 128/47/2019; fresh assessment allowed.
- Madras HC - Ralco Synergy: Madras HC quashes a Tamil Nadu GST order that taxed all-India turnover and expenditure, calling it non-application of mind; remand on 5% deposit.
Audit and cancelled registration
- Gujarat HC - Hubergroup India: Gujarat HC rejects time-bar challenge to GST audit: under the Explanation to section 65(4), commencement is the later of document submission or audit at premises.
- Rajasthan HC - Ashoka Fabricast: Rajasthan HC dismisses writ with Rs 25,000 costs: section 65 audit covers periods when the person was registered, even if registration was later cancelled.
Death of taxpayer, insolvency and attachment
- Delhi HC - Jaiwanti: Delhi HC upholds section 93: GST penalty proceedings can be started after death against the legal heir; merits left to appeal; account of ₹15.40 lakh ordered.
- AP HC - order against deceased proprietor: AP High Court sets aside GST assessment passed after proprietor's death; department may reassess only after notice to the legal representative under section 93.
- P&H HC - Ballarpur Industries: P&H HC quashes GST demands of ₹1.62 crore for periods before CIRP against Ballarpur Industries under Ghanashyam Mishra; post-CIRP demand remains.
- Bombay HC - 1Pay Mobileware: Bombay HC quashes DGGI's provisional attachment of a payment aggregator's accounts: escrow money is not its property and no GST liability was shown.
- Jharkhand HC - writ against SCN: Jharkhand HC dismisses writ against SCN and section 73(9) order: reply and appeal are the remedies unless the notice is wholly without jurisdiction.
Other notable levy and valuation rulings
- GSTAT Lucknow - Natasha Automobiles: GSTAT Lucknow restores ₹25.66 lakh cess demand on Natasha Automobiles, holding SUV ground clearance is measured unladen even before 26.07.2023.
- GSTAT Raipur - Cent Bank Home Finance: GSTAT Raipur holds recovery of a written-off loan is exempt under Entry 27 of Notification 12/2017 and remands to examine certified bank records.
- HP HC - R.T. Pharma: HP HC sets aside Rs 12.71 lakh late fee for GSTR-9/9C filed on 13.03.2023, holding Notification 7/2023 amnesty benefit cannot be denied to earlier filers.
- Kerala HC - V.P. Sugathan: Kerala HC dismisses writ of Devaswom tender holder: liability to pay GST is statutory, but right to collect it from recipients depends on contract terms.
- Karnataka HC - JSP Green Wind (fees under RE policy): Karnataka HC reads down fee clause in Renewable Energy Policy 2022-27: under Article 265 a fee needs statutory backing and quid pro quo; GO requirement upheld.
What businesses should do now
- Read every section 74 notice for specific facts of fraud or suppression; challenge mechanical recitals on the Tata Steel test.
- Check both notice tabs on the GST portal regularly and keep screenshots.
- Verify that every notice and order carries a DIN and is issued to the correct person.
- Pay admitted tax and interest before the notice where possible, to limit penalty exposure.
Frequently asked questions
Can section 74 be invoked for late payment of tax?
GSTAT Kolkata held no, where all facts were disclosed and the notice lacked foundational facts of suppression.
What if a notice was placed in the 'Additional Notices and Orders' tab?
Madras and Bombay High Court rulings have remanded such cases, holding the taxpayer deserved a fair chance.
Need help with a GST dispute?
GST Folio prepares replies to show cause notices, appeals before the Appellate Authority and GSTAT, refund claims and ITC reconciliations for businesses across India. Call or WhatsApp +91 80513 31315 or email gstfolio@zohomail.in.
This digest summarises judgments and orders added to our case law library in October 2026. Each linked post explains one ruling in more detail. It is general information, not legal advice; the outcome of any case depends on its own facts and the full text of the order.
Need help? Call/WhatsApp +91 80513 31315 or email gstfolio@zohomail.in.