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Corporate News *  Service tax penalty can’t survive when assessee acted on dept.’s own view of non-taxability: Delhi High Court. *  GST section 74 extended limitation questionable when form 26AS mismatch was already known: Karnataka High Court grants interim relief. *  CGST demand prima facie impermissible after state GST settlement under section 128A: Bombay High Court. *  Supreme Court asks GSTAT to sympathetically consider delay as taxpayers pursued remedy before wrong forum. *  Supreme Court stays Tripura High Court ruling protecting genuine buyers from ITC denial over supplier’s GST default. *  Diary entries alone can’t prove clandestine removal of goods: CESTAT quashes excise penalty on steel trader. *  Customs could investigate preferential tariff claims even before sec. 28DA: Delhi High Court. *  Customs dept. relied on fake AI generated case laws: supreme court quashes Rs. 425.28 crore penalty. *  No GST exemption in affiliation and annual registration charges for admission or conduct Of examinations: GSTAT. *  Mere invoices, cheque payments insufficient to establish genuine movement of goods: GSTAT restores Rs. 43.44 lakh ITC demand. *  Consolidated GST show cause notice covering multiple financial years is not without jurisdiction: Delhi High Court. *  Construction of independent houses on separate plots not taxable as ‘Residential Complex’ without common facilities: CESTAT. *  GST penalty exceeding statutory maximum unsustainable; Allahabad High Court quashes ? 50,000/- penalty after taxpayer filed return and paid late fee. *  GST order against standard chartered bank passed without hearing set aside by Bombay High Court. *  Retracted statements can’t be relied upon without cross-examination: CESTAT quashes gold confiscation. *  Burden to prove misclassification lies on customs department: CESTAT. *  CESTAT quashes Rs. 98 lakh excise demand on clearance of used refractory brick scrap. *  Service tax demand on irrigation works quashed: Karnataka High Court rules sale of goods component not taxable as service. *  GSTAT restores tax and penalty for transporting iron scrap without E-way bill citing intent to evade tax. *  Madras High Court stays GST recovery from directors without opportunity to show cause under section 89. *  Madras high court stays GST recovery notice against directors; finds prima facie case on applicability of section 79(1)(c). *  Procedural lapses can’t justify harsh punishment without serious customs breach: CESTAT quashes customs broker licence revocation. *  Service tax payable on land leasing and sports complex charges: CESTAT. *  Settled customs dispute can’t be reopened through Article 226 challenge to interest liability: Delhi High Court. *  Mere facilitation of customs clearance can’t establish knowledge of smuggling: Madras High Court. *  GST registration cancellation stayed: Allahabad High Court questions 99% ITC utilisation cap under rule 86B. *  Composition scheme lapses automatically on crossing Rs. 1.5 crore turnover: GSTAT. *  Gujarat High Court quashes GST cancellation orders after officer relied on non-existent AI-generated case laws. *  Importers liable for customs duty benefits availed through manipulated scrips: Delhi High Court. *  Procedural E-way bill lapse alone can’t justify penalty where genuine transaction and absence of tax evasion are established: GSTAT.
Subject News *  Documentary evidence dominates probe, further custody unwarranted: mumbai court grants bail in Rs. 22.44 crore customs duty evasion case. *  Business premises can’t remain sealed for non-participation in GST search: Allahabad High Court. *  GST pre-deposit must be refunded proportionately when taxpayer partly succeeds in appeal: Bombay High Court. *  Supreme Court grants 30 days to file GST appeal; keeps pre-deposit issue open due to deposit in parallel CGST proceedings. *  GST demand can’t exceed amount proposed in SCN: Allahabad High Court quashes Rs. 20.47 Crore order. *  Hundreds-of-crores GST demand and heavy 10% pre-deposit no ground to bypass statutory appeal: Punjab & Haryana High Court. *  Delhi High Court refuses to entertain challenge to gold confiscation due to statutory appeal remedy and unexplained delay. *  Procedural error in customs broker licence inquiry can be rectified through remand: Delhi High Court. *  GSTR-2A mismatch alone can’t justify ITC denial without invoice-wise verification; personal hearing mandatory: GSTAT. *  GST order passed without uploading personal hearing notices violates sec. 75(4): Allahabad High Court. *  TAX EVASION - Sec. 74 GST SCN quashed for not spelling out fraud, wilful misstatement or suppression: Allahabad High Court. *  STPI’s SOFTEX certification and NoC charges taxable as business support services: CESTAT. *  Suspicion can’t replace proof: CESTAT quashes penalty in alleged gold-smuggling operation. *   Limitation runs from communication of order: Madras High Court upholds rejection of delayed GST Appeals. *  Rajasthan High Court quashes GST demand over unsigned show cause notice. *  ITC recovery upheld where supplier failed to deposit GST: Rajasthan High Court. *  Customs commissioner’s empowered to make port trust liable for duty on pilfered goods: Supreme Court. *  Rectification proceedings can’t be used to challenge an uncontested GST assessment through a writ petition: Andhra Pradesh HC. *  GST proceedings against deceased proprietor unsustainable without notice to legal heir: GSTAT. *  Mere availment of ineligible self-assessed ITC doesn’t amount to suppression without evidence of fraud or wilful misstatement: GSTAT. *  Disposal of mining overburden by entity authorised by mining lease holder constitutes taxable service: CESTAT. *  Toll plaza data not mandatory for ITC refund: GSTAT. *  Disputed GST fraud allegations require investigation: Punjab and Haryana High Court makes interim bail absolute in alleged fraud and GST fraud case. *  Non-manufacturer contractor liable to deposit excess excise duty collected from buyer: CESTAT. *  GST order can’t reject taxpayer’s reply as “not satisfactory” without reasons: Madhya Pradesh High Court. *  Uncorroborated statements can’t establish alleged diversion of duty-free goods: CESTAT. *  Erection services were not liable to service tax prior to 10th september 2004: CESTAT. *  Sec. 74 GST notice must spell out statutory ingredients for invoking extended tax demand proceedings: Allahabad High Court. *  No jurisdictional bar under section 6(2)(b) in parallel CGST SGST proceedings: Delhi High Court refuses to bypass GST appeal remedy. *  Madras High Court remits GST demand for fresh adjudication after taxpayer claims it was unaware of SCN following business closure.  

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GST Update No 124 on E-filing of Appeal in GST era

GST Update No 124 on E-filing of Appeal in GST era
GST Law is introduced and implemented by Government of India in order to reduce the complexities faced by the taxpayers. Consequently, in order to develop an easy tax reform, compliances were digitalized including the filing of appeal. However, owing to technical difficulties and the time required for developing required IT infrastructure, there have been various infractions in complying with the requirements of the GST Law. Recently, an issue came before Hon’ble Kerala High Court in the case of JOSE JOSEPH V/S ASSISTANT COMMISSIONER OF CENTRAL TAX AND EXCISE wherein the appeal was rejected as time barred as the same was filed manually instead of electronically, that too, beyond the stipulated time period. The outcome of this decision is subject matter of our today’s update. The issue involved in the case was regarding electronic filing of the appeal of refund claims. The petitioner was aggrieved by the fact that the order was not uploaded on the common portal and hence, they could not file the appeal in the electronic form which is mandatory as per the provisions. The order was communicated to the petitioner on 10.04.2019. Hence, the petitioner filed the appeal manually which was rejected as being time barred. The petitioner contended that since the order was not uploaded, it was not possible for them to electronically file the appeal. Reliance was placed on Gujarat High Court’s judgement in case of GUJARAT STATE PETRONET LIMITED V. UNION OF INDIA. The Counsel for the department argued that in order to reduce the difficulties faced by taxpayers during electronic filing, manual filing of appeals is also accepted. Further, they argued that as there was delay of more than 180 days in filing the appeal as against the stipulated period of 3 months from date of communication of order with a condonation delay of further 1 month, their appeal was rejected as time barred. The Court held that as the order was not uploaded on the portal, the petitioner was unable to file the appeal electronically. The Court held that the rejection of appeal as time barred by Appellate Authority is not justified when the department defaulted in complying with the statutory provisions.The period of limitation shall not start from the receipt of physical copy of order by the petitioner but from the date when it is uploaded on the portal. Hence, the right to appeal cannot be denied to the petitioner on the grounds of delay in filing appeal. Reliance was placed on the decision given in the case of GUJARAT STATE PETRONET LIMITED V. UNION OF INDIA wherein it was held that uploading the order and filing of appeal are intertwined activities and hence, appeal can be filed within 3 months only after the order is uploaded on the portal. The idea behind digitalization is to promote uniformity and reduce paper work for the ease of taxpayers so that corruption is eradicated. However, default in compliances on account of lapses by revenue authorities cannot snatch the right of appeal available to the assessee. In past, there have been instances wherein Apex Court and the High Courts have ruled that substantial benefit cannot be denied on account of procedural/technical lapses and appropriate relief has been granted to the assessee. To illustrate- there were lot of technical glitches while filing TRAN-1 during the initial stages of GST implementation but courts have provided reliefs to the assessee in genuine cases. The above decision is also beneficial as it seeks to ensure that the right of appeal is not extinguished for procedural lapses occurred on part of revenue authorities.
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