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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
Subject News *  GST summons: anticipatory bail maintainable without arrest order, but relief denied in evasion case: Allahabad High Court. *  GST Appeal can’t be decided without hearing taxpayer’s objections to fresh evidence: Allahabad High Court. *  GST ITC can’t be reversed merely because supplier grants discount without reducing tax liability: GSTAT. *  Mere quoting of GST provision is not a valid charge: GSTAT quashes ITC denial. *  Personal hearing mandatory before adverse GST order, even without taxpayer’s request: Rajasthan High Court. *  Parallel bail pleas without full disclosure amount to abuse of process Rs. 43.08 crore GST case sent for fresh hearing: Supreme Court. *  GST refund based on unchallenged advance ruling can’t be recovered using later circular: GSTAT. *  Payment of GST alone doesn’t end interest and penalty liability when tax and interest remain unpaid beyond 30 days of notice: GSTAT. *  GST demand over builders’ 80% procurement rule requires reasoned adjudication: GSTAT. *  Eligible ITC doesn’t automatically entitle taxpayers to compensation cess refund on domestic sales: GSTAT. *  GST confiscation order passed before reply deadline invalid: GSTAT. *  GST interest can’t be retained after tax refund on delayed export receipts: Punjab & Haryana High Court. *  GST appeal can’t be dismissed over pre-deposit shortfall without opportunity To respond: Bombay High Court. *  DGGI SCN can’t be challenged before reply and adjudication:Chhattisgarh High Court. *  GST input tax credit can’t be denied solely due to supplier’s retrospective registration cancellation: GSTAT. *  GST notice must explain fraud allegations; merely repeating section 74 Is not enough:  Himachal Pradesh High Court. *  Audit detection alone can’t justify GST fraud penalty; specific suppression must be proved: GSTAT. *  GST order uploaded only under ‘Additional Notices’ tab without separate intimation set aside: Calcutta High Court. *  Service Tax appeal can’t be rejected for missing pre-deposit proof when payment is already recorded: CESTAT. *  SGST dept. can’t hear appeal against CGST order: Calcutta High Court. *  Mere dispatch of tax order can’t prove service or make appeal time-barred: CESTAT. *  Dealer incentives can’t be taxed merely on ledger entries: CESTAT. *  DGFT orders quashed for failure to supply DRI letter relied upon in SCN: Bombay High Court. *  GST penalty u/s 122(1A) can’t apply to Pre-2021 transactions; unregistered beneficiaries also covered: Delhi High Court. *  Expired E-way bill caused by wrong PIN code can’t justify GST penalty without intent to evade tax: GSTAT. *  Used railway rails can’t be taxed as track material without proof they are fit for reuse: CESTAT. *  Earlier DGGI notice doesn’t bar separate GST demand on different issue: Delhi High Court. *  ITC dispute involves no question of law: GSTAT directs appeal to Vice-President. *  Earlier DGGI notice doesn’t bar separate GST demand On different issue: Delhi High Court. *  No E-way bill required for interstate goods movement in november 2017: GSTAT quashes detention and penalty.  

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GST Update No 306 on 30 days notice to be given to file reply of SCN

GST Update No 306 on 30 days notice to be given to file reply of SCN
It is often observed that departmental officers do not follow proper and legal adjudication process and consequently, the business house have to face the repercussions of the same. Lately, there had been various cases wherein either the show cause notice was not issued or was not signed or was not uploaded on the GST portal. The aggrieved taxpayers knocked the doors of court to seek relief but the question as to “until when” is still unanswered. Recently, one such issue on the same subject matter was reported before hon’ble Bombay High Court in the case of M/S SHEETAL DILIP JAIN V/S THE STATE OF MAHARASHTRA & ORS. The decision imparted in this case is subject matter of discussion of our present update.
The petitioner raised a grievance since a show cause notice was issued under Section 73 of CGST Act, 2017 with maximum period of 7 day’s time to submit the reply. Furthermore, on the 8th day, the impugned order was passed by the departmental officer. It was argued that as per provisions of Section 73 of CGST Act, 2017, a period of 30 days is required to be given from the date of issue of show cause notice for filing reply by the assessee.
The Court therefore, upheld the submissions of the petitioner since as per provisions of Section 73 of CGST Act, 2017, a period of 30 days from issuance of show cause notice is to be given to file reply or make payment of tax along with interest. The statutory prescribed period cannot be reduced arbitrarily to 7 days. Further, the impugned order itself mentions a period of 30 days to submit the reply. It was therefore, stated that the order is passed erroneously and hence, the allegation of non-payment of tax within 30 days is improper and unjust. It was further held that the order is passed without application of mind and is contrary to the provisions of the Statue. The omission on the part of officers overburdens the dockets of the Courtand results into wastage of valuable judicial time. The officers were bashed since they failed to understand the hardships faced by the taxpayers. Further, it is difficult for the taxpayer to approach the Court and spend on a lawyer. It was therefore, held that the respondent will pay a sum of Rs. 10,000/- to PM Cares Fund as cost within a period of 2 weeks.
The above decision is yet another example of the fact that the departmental officers failed to perform their duties effectively. There had been various judicial precedents in the past as well wherein the same practices were followed by the departmental authorities. Reference can be drawn to various cases such as Bombay High Court in the case of Ramani Suchit Malushte v/s Union of India and Ors, Andhra Pradesh High Court in the case of Navya Foods (P) Ltd. V/s Superintendent Of Central Tax, Kerala High Court in the case of M/s Pee Bee Enterprises V/s Assistant Commissioner. Relevant updates on these have also been made by us having Serial No. 298, 296, and 124 respectively. However, it is high time that these departmental authorities should follow these binding judicial rulings otherwise the taxpayers will continue to face the difficulties and knock the doors of courts.
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