GST update No 339 on Circular by Kerala Government regarding detention and seizure

It is commonly observed that the revenue authorities do not follow the prescribed procedure while invoking the detention proceedings which results into unnecessary litigation on technical grounds. Furthermore, there had been various instances wherein the taxpayers are unable to file an appeal against the impugned detention order either due to manual issuance of order or due to technical glitches on the GST portal etc. To put an end to unnecessary disputes on this issue, recently initiative has been taken by Kerala Government by issuing a Circular having number as 10/2022 dated 10.11.2022 in respect of judgment rendered by High Court in WP No.17454 of 2022 and 17463 of 2022 dated 20.07.2022. The detailed discussion on this Circular is subject matter of our present update.

Before proceeding to the clarification issued by the Kerala Government, we would like to draw your attention to practical situations wherein the aggrieved assessees are unable to prefer an appeal before first appellate authority since the detention orders in GST MOV-09 is not issued. Although, issuance of GST MOV-09 and GST MOV-07 is an online process yet the revenue authorities are reluctant to upload the orders on GST portal and rather issue manual notices and order. Nevertheless, there had been cases wherein owing to the technical lapses and connectivity issues, manual statutory forms are issued without resorting to the online procedure.

However, since the mechanism of filing online appeal is designed such that it is linked to GST MOV-09 which is uploaded on the GST portal, the business houses find it difficult to prefer an appeal where manual documents are issued to them. Hence, the assesses are deprived of their statutory rights of filing an appeal against these proceedings merely on the grounds of non-uploading of orders on GST portal due to network issues, portal fixations, software problems etc. This increases the miseries of the business organisations manifolds. The taxpayers may have to make entire payment of tax and penalty under exigencies vide DRC-03 but may be willing to challenge the order.

To put an end to all the anomalies and bring uniformity in the procedure, the above referred Circular was issued. The option to permit physical filing of appeals was also considered. As per the Rule 113 of CGST Rules, 2017, the appellate authority shall issue a summary order in GST APL-04 indicting the final amount of demand. As per Standard Operating Procedure, GST APL-04 can be issued against an Application Reference Number (ARN) which is generated on filing of electronic application for appeal.

Therefore, it was ordered to strictly adhere to the instructions issued. It was ordered that issuance of manual forms for detention and seizure of goods should be avoided as far as possible. Instead, the final orders such as GST MOV-09 should be provided online regardless of the fact that whether the payment is made voluntary or not vide DRC-03. In case, the taxpayer intends to file an appeal and GST MOV-09 was not provided, the same should be issued immediately electronically. The procedure as prescribed vide Circular No. 41/15/2018-GST dated 13.04.2018 should be adhered to.

The above clarification is a welcoming clarification by the taxpayers wherein all the disputes and discussions will now be ended. It is expected that now the departmental officers will follow proper procedure as regards to detention of goods for the ease of taxpayers. Looking at the other side of the bush, it is now highly anticipated that other state Governments shall also address this issue and issue suitable clarifications in this respect at the earliest possible. Moreover, clarification should also be issued by CBIC.

Comments

GST update No 339 on Circular by Kerala Government regarding detention and seizure

Post a Comment

Query