Indirect Tax Amicus, April 2026

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Goods and Services Tax (GST)

Notifications and Circulars 

• GSTAT Delhi State Bench commences operation
• GSTAT Chennai Bench commences operation
• GSTAT Hyderabad Bench commences operation – Registrar Court functional from 20 April for rectification of defects
• GSTAT Agra Bench commences operation 

Ratio decidendi 

• Detention and seizure during transit – State Proper Officer cannot discharge such functions under IGST Act where origin and culmination of sales is outside said State – Andhra Pradesh High Court
• Detention during transit – Timelines under Section 129(3), for issuance of notice and passing of order, are directory and not mandatory; Proper Officer however to explain reasons for delay – Allahabad High Court
• ITC fraud – Cancellation of supplier’s registration cannot solely be the basis for cancellation of buyer’s registration – Bombay High Court
• ITC fraud – Alert notice of non-existence of supplier is not enough to deny ITC to buyer – Orissa High Court
• Consolidated show cause notice for multiple financial years/tax periods – Bombay High Court refers issue to its Larger Bench
• Demand invoking Section 76 is not justified when tax is paid through another distinct person in same State – Madras High Court
• Recovery of tax dues from Bank of assessee – Section 79 does not require issuance of notice to defaulting assessee – Andhra Pradesh High Court
• Import of goods – Jurisdiction to levy, assess and collect IGST vests only with Customs authorities – Andhra Pradesh High Court
• Personal hearing is mandatory even if ‘no personal hearing’ selected by assessee in reply – Gujarat High Court
• GSTAT – Online transfer of case mistakenly filed before Principal Bench to State Bench – Directions issued to Registry, GSTN and NIC teams – GSTAT Principal Bench
   

Customs and FTP

Notifications and Circulars 

• RoDTEP and RoSCTL – Specified benefits in line with Drawback made available
• SEZ supplies to DTA – Concessional customs duty notified for one year
• Re-exports from DTA to SEZ – Drawback available
• Petrochemicals – Customs duties reduced till June 2026
• E-commerce – Ease of doing exports through courier mode

Ratio decidendi

• Extra-territorial applicability of Customs Act – Amendment made in 2018 is not retrospective and is only for a limited extent – Bombay High Court
• RoDTEP – Goods not totally ‘restricted’ if appropriate quota allows export subject to certain approval – Bombay High Court
• Customs department cannot redetermine FOB value of exports to curtail Drawback and MEIS benefit – CESTAT New Delhi
• Import at concessional rate of duty for specific purpose – Non-compliance with IGCR Rules when is not fatal – CESTAT Chennai
• Provisional release of goods imported without import authorization and required registration with BIS – Such goods not prohibited per se but only deemed prohibited – CESTAT Chandigarh
   

Central Excise, Service Tax and VAT

Ratio decidendi 

• Sabka Vishwas (Legacy Dispute Resolution) Scheme – Unilateral rectification of Form SVLDRS-3 by the Department to enhance demand is wrong – Supreme Court
• ’Earthen roofing tiles’ are covered under ’pottery’ – Exemption to certain products manufactured by units approved by Khadi Board to be interpreted purposively – Kerala High Court
• Conversion of waste PET bottles into PET flakes is not ‘manufacture’ – CESTAT Chennai
• Cenvat credit – Proportionate reversal on common inputs – Formula prescribed from 1 April 2011 can be used for the period before April 2011 – CESTAT Chandigarh