Indian High Courts issue rulings on GST law and procedural limitations

The Calcutta High Court has quashed GST penalty proceedings against detained vehicles, ruling that orders passed under section 129(3) of the Central Goods and Services Tax Act, 2017, were barred by limitation. The court ordered the release of the vehicles after finding that penalty orders were issued 175 days after the statutory deadline.

In a separate legal discussion regarding GST litigation, questions have arisen concerning the applicability of subsequent Supreme Court judgments to earlier High Court decisions that have already attained finality. This is particularly relevant to Input Tax Credit (ITC) denials occurring when suppliers fail to deposit tax. While the Gujarat High Court upheld the constitutional validity of Section 16(2)(c) of the CGST Act, it noted the difficulties faced by bona fide purchasers and called for legislative intervention and better technological verification to prevent disproportionate burdens on genuine dealers.