Indirect Tax Monthly Alert – July 2025

Restoration of Cancelled GST Registration Permissible if Dues Cleared: The High Court (HC) ruled that GST registrations can be restored if all outstanding dues are settled.
Recovery Notice Issued Without Prior Service on Taxpayer Quashed: The HC annulled a recovery notice that was issued without first informing the taxpayer.
Remand Ordered as Department Failed to Follow Due Process of Law: The HC ordered a remand due to the department’s failure to adhere to proper legal procedures.
Relief Not Denied Merely Due to Procedural Delay in Filing Appeal: The HC clarified that delays in the appeal process should not automatically deny relief to taxpayers.
HC Upholds ITC Rejection for Lack of Evidence and Non-Existent Suppliers: The HC upheld the rejection of Input Tax Credit (ITC) claims due to insufficient evidence and non-existent suppliers.
Right to Reason Prevails as HC Quashes GST Cancellation: The HC emphasized the need for reasoning in decisions, quashing a cancellation of GST registration due to lack of justification.

Perishable Goods Cannot Be Withheld Indefinitely Rules HC: The HC determined that perishable goods should not be held indefinitely by customs authorities.
Mis-description Alone Won’t Deny Advance Authorization Benefit: The HC ruled that a mere mis-description of goods should not result in the denial of advance authorization benefits.
CESTAT Delhi Sets Aside Penalty for Lack of Collusion in Cargo Diversion: The CESTAT (Customs, Excise and Service Tax Appellate Tribunal) dismissed a penalty related to cargo diversion due to insufficient evidence of collusion.
No Shield from Customs Action Without Domestic Incorporation of Treaty Provisions: The CESTAT stated that taxpayers cannot avoid customs actions unless the relevant treaty provisions are incorporated domestically.
CESTAT Sets Aside Overlapping Cenvat Demands on Education: The CESTAT annulled overlapping Cenvat demands concerning educational services, citing redundancy in claims.