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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 DELHI HC REFUSING TO CONVENE SUMMON PROCEEDINGS THROUGH VIDEO CONFERENCING 164/202021

GST UPDATE ON DELHI HC REFUSING TO CONVENE SUMMON PROCEEDINGS THROUGH VIDEO CONFERENCING 164/202021
The use of technology has increased manifold during the prevalent pandemic times. The style of working in courts have also tremendously changed wherein personal hearings through video conferencing has become the need of the hour. However, even during such difficult times, when COVID is set to spread at its peak, recently, the Hon’ble Delhi High Court refused to tender statement and adduce evidence through video conferencing in the case of P. V. RAO VERSUS SENIOR INTELLIGENCE OFFICER, DGGSTI & OTHERS [W.P. NO. 8975/2020 DT 18.11.2020]. The reasoning adopted by the Hon’ble High Court is the subject matter of discussion of our present update.  
The petitioner is presently employed by Think and Learn Private Limited (Company) in the capacity of Chief Financial Officer (CFO). This company is engaged in the business of providing online courses, classes etc. through its website and mobile applications by the brand name “BYJU’s”. DGGSTI carried out an investigation under section 67 of the CGST Act in relation to the company, for evasion of GST on books/printed material being supplied by the company by mis-declaring such supplies under the exempted category. In this regard, from 27th to 29th October, 2020, DGGSTI along with a team of officers visited the premises of the Company at Bengaluru for carrying out an inspection under Section 67 of the CGST Act in order to ascertain the admissibility of the exemption being availed by the company. The Petitioner asserts that his statement was recorded on 28th October, 2020 from 2:00 pm to 6:00 pm. However, owing to his ill health and age-related morbidities, he fell severely unwell during the recording of his statement and accordingly consulted a doctor who prescribed medication and advised rest for a period of three days.Subsequently, petitioner was summoned to tender his statement and present evidence on 5th November, 2020 at New Delhi. The petitioner represented that, owing to his ill health and rising number of COVID cases across the country, it was not safe for him to travel to New Delhi for recording his statement and requested that he be permitted to appear through video conference. The request of the petitioner was declined and summon was again issued to appear on 10.11.2020 and so the petitioner has filed writ petition for seeking a writ of Mandamus to record his statement through video conference. The revenue authorities contended that the request of petitioner is not liable to be accepted as he has not cooperated in the investigation proceedings.
 
The counsel for the petitioner produced medical reports to support their contention that it is not safe for the petitioner to travel during pandemic and expose himself to such a big risk. Reliance was also placed on decision given by Hon’ble Telangana High Court in the case of Ilangovan G. Versus Union of India & Others in similar situation. Reference was also made to Supreme Court decision given in the case of State of Maharashtra Vs Dr. Praful B. Desai [2003 (4) SSC 601] wherein recording of evidence of a witness by way of video conferencing was permitted. Reliance was also made on the decision of this Court in the case of National Building Construction Company Limited Vs Union of India [2019 (20) G.S.T.L. 515 (Del).] to submit that personal presence of senior officer may not be necessary unless there are compelling reasons.
 
The counsel for the department objected for allowing the request of the petitioner on the grounds that petitioner can have support system helping him and clarifications/answers can be motivated and influenced which may adversely affect the ongoing investigation.
 
The Hon’ble High Court held that the certificates/blood test reports produced only indicate that the petitioner is undergoing treatment of hypertension and diabetes and has high risk factor for heart disease and do not indicate any serious health issues that could prevent the petitioner from travelling from Bangalore to New Delhi. Accordingly, the High Court directed the petitioner to be medically examined by government hospital as to his fitness to travel and make statement but the learned counsel for the petitioner pointed that it is not the case of the petitioner that he is unable to undertake travel from Bangalore to New Delhi. It was submitted that although the petitioner can travel but considering the pandemic situation, he is exposed to risk of contacting the COVID-19. Thereafter, the High Court held that having regard to the past non-cooperative conduct of the petitioner and mere apprehension or fear of petitioner of contacting COVID-19 infection cannot be reason for the Court to interfere in investigation proceedings. Hence, the court rejected the plea of the petitioner and directed to proceed with investigation proceedings with all safety measures and protocols of social distancing.
 
The above decision is a setback for the assessees as it indicates non-sympathetic view of the High Court as regards interrogation and summon proceedings are concerned. The High Court refused to accept the request of the petitioner on the grounds that recording of statement in court during trial proceedings is different and so the benefit of decisions relied upon cannot be extended in the present situation. We all know the atmosphere of pressure created during the course of summon proceedings and probably this is the real reason for not allowing summon proceedings to be convened through video conferencing, even in this pandemic situation.
 
 
This is solely for educational purpose.
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