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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 313 on rejection of E-appeal filed timely for non-submission of certified order

GST update No 313 on rejection of E-appeal filed timely for non-submission of certified order
It is well established that the concept of E-filing of appeal is acting as both roadblock and added advantage for the assessee at the same time. However, owing to the differences in information technology and continuation of past practices of taxpayers regarding making submissions in physical copies, the hardships faced by taxpayers always has an upper hand. Recently, one such case was reported before Karnataka High Court in the case of G.G. AGENCIES GIRIJESHWAR RICE MILL V/S STATE OF KARNATAKA & ORS. The decision imparted in this case is subject matter of discussion of our present update.
The petitioner sought various reliefs such as Writ of Certiorari, Writ of Mandamus etc. Referring to Memorandum of Petition, the petitioner filed an appeal as on 30.03.2019 within the prescribed time as per Section 107 of CGST Act, 2017. It was submitted that the appeal was filed electronically within prescribed time as on 30.03.2019 which was evidenced by acknowledgement in this respect. The same was also intimated to the departmental officers as well vide letter dated 12.10.2021. It was argued by the petitioner that the appeal was rejected on invalid grounds of non-submission of certified copy of order and therefore, liable to be set aside. Furthermore, no opportunity of hearing was provided which is a complete violation of natural justice.
The counsel of respondent dismissed the appeal on grounds that the appeal is time barred and there is no merit in the present appeal.
The Court stated that on perusal of Memorandum of Appeal and acknowledgement produced by the petitioner, it is crystal clear that that the appeal is preferred as on 30.03.2019 i.e. within the time since the date of impugned order is 02.02.2019. Consequently, it is factually incorrect and contrary to materials on record.Further, neither sufficient nor reasonable opportunity of hearing was provided to the assessee thereby resulting into violation of principles of natural justice. Hence, the case was remitted back to the adjudicating authority to reconsider the submissions of the assessee in accordance with provisions of law. The reliance was placed on following in this respect:
• Shree Jagannath Traders Vs. Commr. of State Tax Odisha, Cuttak – 2022 (58) G.S.T.L. 160 (Ori.)
• M/s. Atlas PVC Pipes Ltd. Vs. State of Odisha and others – 2022-TIOL-957-HC-Orissa-GST
• Sri. Lakshmi Venkateshwara General Merchants and Commission Agents Vs. State of Andhra Pradesh – 2021 (51) G.S.T.L.8 (A.P.)
• Sri. Siddhi Kalko Bhagavan Stone Crusher Vs. Assistant Commissioner of Service Tax, Vizianagaram – 2020 (42) G.S.T.L.328 (A.P.)
• Ali Cotton Mill Vs. Appellate Joint Commissioner (ST) – 2022 (56) G.S.T.L. 270 (A.P.)
It was further stated that as long as the appeal is preferred electronically within time, merely because of delay in the submission of certified copy physically, it cannot be concluded that appeal was filed beyond the prescribed time. Presently, online appeal was filed as on 30.03.2019, within time and therefore, the impugned order is liable to be set aside.
The above decision is a favourable decision wherein once again it is stated that substantial benefits cannot be denied merely because of procedural lapses. It is worth mentioning over here that filing of appeal is a statutory right of the assessee which cannot be denied on basis of illogical arguments. The revenue authorities ought to follow the favourable judicial pronouncements on the issue so that unnecessary litigations can be avoided.
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