Customs And GST Alert – March 2026

CASE LAW UPDATES

AEROCOM CUSHIONS PVT LTD v. ASSISTANT COMMISSIONER (ANTI-EVASION), CGST, NAGPUR-I

[2026] 182 taxmann.com 432

Bombay High Court holds that assignment of leasehold rights in a plot of land allotted by the Maharashtra Industrial Development Corporation (MIDC) by the lessee in favour of a third-party assignee represents transfer of benefits arising out of an immovable property, and is not a supply of service. The Court holds that, in such a transaction, the essential element of supply of service in the course or furtherance of business is absent, rendering the transaction outside the levy of GST.

SAHIL ENTERPRISES v. UNION OF INDIA

[2026] 182 taxmann.com 144

Tripura High Court holds that section 16(2)(c) of the Central Goods and Services Tax Act, 2017 (CGST Act) ought not to be interpreted to deny input tax credit (ITC) to the purchaser in a bona fide transaction, and it should be read down and applied only where the transaction is found to be not bona fide or