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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 ON CLARIFICATION REGARDING EXTENSION OF LIMITATION UNDER GST LAW IN TERMS OF ORDER OF SUPREME COURT

GST UPDATE ON CLARIFICATION REGARDING EXTENSION OF LIMITATION UNDER GST LAW IN TERMS OF ORDER OF SUPREME COURT
In the view of the Covid 19 situation the Supreme Court had issued an order dated 23rd March 2020 and on 27th April 2021 declaring that the period from 15th March 2020 till further orders, shall not be taken into consideration for counting the period of limitation prescribed under any general or special laws. Further, The Central Government, exercising its power under Section 168A of the CGST Act, 2017, vide Notification No. 35/2020-CT dated 03.04.2020, granted general extension for compliance under the CGST Act, 2017, IGST Act, 2017 and UTGST Act, 2017.Extension has been made applicable to appeals which were due to be filed between20th March, 2020 to 29th June, 2020. Many authors have opined that notification cannot go beyond Apex Court verdict. Hence, the impugned notification is not legally sustainable. Many associations have made representations in this regard to CBIC.
CBIC recently vide circular no. 157/13/2021-GST dated 20th july,2021 have given the clarification regarding extension of time limit in GST Law in terms of decision of Supreme Court dated 27.04.2021.The council has provided following clarifications :-
1.     The extension granted by Supreme Court extend only to the judicial and quasi- judicial proceedings in the nature of appeal/suits/petitions etc. and does not extend to every action or proceedings under CGST Act.
2.     The order of Supreme Court apply to the appeals, reviews, revisions etc., and not to original adjudication i.e. in case of any SCN is issued to  taxpayer than this extension of time limit will not apply.
3.     This Verdict of Highest Court of India will apply only to the judicial and quasi-judicial proceedings which need to be pursued within a time limit as provided in law. In case there is no limit given in the law than the order of extension will not apply.
4.     The proceedings which are under process (judicial or quasi-judicial which requires to be heard and disposed off) are need to disposed off via physical/virtual mode based on prevailing policies within the time limit.
5.     The following actions such as scrutiny of returns, issuance of summons, search, enquiry or investigations and even consequential arrest in accordance with GST law would not be covered by the judgment of the Hon’ble Supreme Court.
6.     It will not apply with regard to issuance of SCN, replies and passing order as the order applies only to the petition/applications/suits etc.
 
The circular says that the proceedings need to be initiated and compliances that are need to be done is to be done within specified time given in statue. The tax authorities will continue to dispose the proceedings like application of refund or application related to revocation or cancellation of registration without any extension of time limit.
              The board by providing the such kind clarification have invited the     litigation as the time limit has been extended only to the appeals reviews and revision and no limit has been extended for SCN, replies, order passing of petition etc. even though the assesses was facing same problem due to COVID -19. This is not logical as well as legally sustainable. Taxpayers, who are going to file appeal, will be giving extension in limitation due to COVID pandemic. But taxpayers, who are filing refund or reply to show cause notice or revocation of cancellation of registration or filing returns, are not suffering from pandemic and has to do compliance within time limit. CBIC is inviting unnecessary litigation and the technical interpretation of this judgement will invite litigation.  Moreover, such relaxations have been provided only to the assesse not to the department in case of departmental order or appeal. Govt. should have taken a liberal view by covering other situations in providing extension of time limit and follow the ratio decindandia of Apex Court decision.
 

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