Daily Intelligence Capsule — 9 August 2026
Latest EditionLatest Edition — Sunday, 9 August 2026Case Law
Supreme Court Stays Fresh GST Show Cause Notice, Flags Jurisdictional Error in Parallel Proceedings
The Supreme Court has stayed a fresh Section 74 CGST show cause notice after finding it duplicated a demand already pending in statutory appeal — a reminder that parallel proceedings on the same tax demand raise a substantial jurisdictional question.
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Bombay High Court: Interest Dispute Must Be Adjudicated by Speaking Order Before GST Garnishee Recovery
Bombay High Court holds that where a bona fide dispute exists over Section 50 interest computation, the department must first pass a speaking order before resorting to garnishee proceedings under Section 79 of the CGST Act. BVG India Ltd. v. Union of India.
Read: Bombay High Court: Interest Dispute Must Be Adjudicated by Speaking Order Before GST Garnishee RecoveryCase Law
ITAT Mumbai Denies Tax-Neutral Demerger: Why the Holding Company's Shares Weren't Enough
ITAT Mumbai denies ₹240+ crore in carried-forward losses in Sterling Holiday Resorts Ltd. v. DCIT, holding that a holding company's shares cannot substitute for the resulting company's own share issuance under Section 2(19AA) of the Income-tax Act.
Read: ITAT Mumbai Denies Tax-Neutral Demerger: Why the Holding Company's Shares Weren't Enough