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Daily Intelligence Capsule — 25 August 2026

Live EditionTuesday, 25 August 2026

GST / Case Law

No IGST on Ocean Freight for CIF Imports: Madras HC Says Enough Is Enough

GST / Case Law

The Madras High Court quashes IGST demand orders on ocean freight paid under reverse charge for CIF imports, applying the Supreme Court's ruling in Union of India v. Mohit Minerals.

Read the briefing

GST / Case Law

Nine Minutes Late: Why GSTAT Refused to Call This Tax Evasion

The Lucknow Bench of GSTAT deletes a Rs. 2.63 lakh penalty where an e-way bill was generated nine minutes after vehicle interception, holding it a bona fide procedural lapse.

Read: Nine Minutes Late: Why GSTAT Refused to Call This Tax Evasion

GST / Case Law

Cross Rs. 1.5 Crore and Your Composition Scheme Is Already Over

GSTAT Hyderabad holds the GST composition option lapses automatically once turnover crosses Rs. 1.5 crore, and Rule 35 cum-tax valuation applies even if not specifically claimed.

Read: Cross Rs. 1.5 Crore and Your Composition Scheme Is Already Over

Income Tax / Case Law

Your Supplier's Tax Problems Aren't Automatically Your Client's Problem

ITAT Delhi deletes a Rs. 95.76 crore bogus-purchase addition, holding a supplier's later GST cancellation and ITR non-filing cannot taint a documented purchase.

Read: Your Supplier's Tax Problems Aren't Automatically Your Client's Problem

GST / Case Law

Rs. 28.81 Crore Demand, Zero Hearings: Orissa HC Isn't Having It

The Orissa High Court sets aside a Rs. 28.81 crore GST demand after the assessee was denied a personal hearing it had specifically requested in writing.

Read: Rs. 28.81 Crore Demand, Zero Hearings: Orissa HC Isn't Having It

Did You Know

Settled Law Can Take Years to Actually Settle

The Madras HC's ocean-freight ruling didn't break any new legal ground — it just applied a Supreme Court precedent that's been settled for years. And yet fresh demands on the exact same point keep landing at field level.

Quiz of the Day

Nine Minutes Late

Your client's vehicle, carrying motorcycles fully covered by proper tax invoices and delivery challans, is intercepted by a GST Mobile Squad at 7:25 AM. The e-way bill is generated at 7:34 AM — nine minutes after interception. The department imposes a Section 129 penalty of Rs. 2,63,330, arguing a post-interception e-way bill cannot retrospectively validate movement. Is the department right? Answer: No — per GSTAT Lucknow's ruling in M/S Lucknow Automotives v. Assistant Commissioner (Mobile Squad), Gonda & Ors. (19 August 2026), a short delay absent evidence of suppression, undervaluation or fake documentation is a bona fide procedural lapse, not evasion. The identical penalty was set aside on these facts.