Indian Courts, Tribunal Issue Multiple GST Rulings
Indian Courts, Tribunal Issue Multiple GST Rulings
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Key Points
1
Pulso Global’s application carried ARN AD321125003459G, dated November 22, 2025, and the company sought withdrawal by email on July 17, 2026; the Kerala Authority therefore issued no ruling on any of the proposed GST questions.
2
The Delhi dispute involved an alleged input-tax-credit demand of approximately ₹5.71 crore. The taxpayer said State GST proceedings covered 2017-18 through 2019-20, while the DGGI investigation covered July 2017 to March 2024; DGGI argued that its investigation, which included searches beginning in December 2020, concerned bogus invoices and alleged transactions without actual movement of goods.
3
In rejecting the departmental GSTAT appeal, the Tribunal stressed that filing an appeal and maintaining it are distinct: a Commissioner’s approval or authorization to appeal does not itself allow the Revenue to bypass the statutory monetary threshold or create an automatic right to a merits hearing.
4
In the King Enterprise case, the State argued that hearing communications had also been sent by email and post, but it could not produce evidence establishing those communications. The company additionally said it possessed records addressing discrepancies between its returns and purchase-related tax data, including evidence that the supplier had filed the relevant returns before its GST registration was later cancelled.
5
The Madhya Pradesh High Court found that PVCON Engineering’s challenges—including whether the DGGI officer was the proper officer and whether natural justice was violated—involved disputed factual questions requiring examination of documents by the GST Tribunal. It also declined to let the company use writ jurisdiction simply to avoid the mandatory pre-deposit requirement for a Section 112 appeal.
Indian courts and tribunals have issued several GST rulings in recent months, but most focused on procedural rules rather than core tax questions. TaxGuru reported that a Kerala court dismissed one company's application without ruling on whether healthcare services qualified for tax breaks. Meanwhile, a Delhi court said taxpayers can challenge overlapping tax investigations in the proper appellate forum, and a tribunal rejected a government penalty appeal for falling below legal thresholds.
Kerala Authority Dismisses Healthcare Company's GST Exemption Question
Pulso Global withdrew its application to the Kerala Authority for Advance Ruling on November 22, 2025 (ARN AD321125003459G). The company pulled the filing via email on July 17, 2026, seeking clarity on whether its home healthcare services, equipment rentals, medical supplies, and patient transport were tax-exempt or separately taxable. TaxGuru noted that the Authority issued no ruling on any of these questions because the withdrawal prevented adjudication.
Delhi Court Routes Overlapping Investigation Challenge to Appellate Authority
The Delhi High Court declined to hear a writ petition challenging overlapping tax proceedings. A taxpayer faced a ₹5.71 crore input-tax-credit demand in State GST proceedings covering 2017-18 to 2019-20, while the DGGI investigation spanned July 2017 to March 2024. TaxScan reported that the court held such objections under Section 6(2)(b) must be raised before the statutory appellate authority—not through writ petitions after adjudication orders issued. The DGGI said its investigation involved bogus invoices and transactions without actual goods movement.
Tribunal Rejects Revenue's ₹6.16 Lakh Penalty Appeal
The GST Appellate Tribunal dismissed a departmental appeal involving a ₹6.16 lakh penalty because it fell below the ₹20 lakh statutory monetary threshold. TaxGuru explained that the Tribunal stressed a key distinction: filing an appeal differs from having a right to succeed. A Commissioner's approval to appeal does not bypass the monetary threshold or grant automatic merits review. The Revenue could not demonstrate an exception to the rule.
Karnataka and Madhya Pradesh Courts Set Procedural Standards
The Karnataka High Court set aside a ₹91 lakh demand against King Enterprise because the State conducted proceedings without a proper hearing. TaxGuru reported that though the State claimed it sent hearing notices by email and post, it produced no proof of delivery. King Enterprise had records addressing mismatches between its returns and purchase data, showing the supplier had filed returns before its registration was cancelled. In Madhya Pradesh, the High Court directed PVCON Engineering to pursue jurisdictional and natural-justice challenges through the GST Tribunal rather than through writ petitions, citing disputed factual questions and the mandatory pre-deposit requirement under Section 112 appeals.
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