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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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PJ/Case Laws/2011-12/1156

Abatement under Notification No. 1/2006-ST

Case: Indian Oil Corporation Ltd. Vs Commr. of C. Ex., Mumbai-II 
 
Citation: 2011 (22) S.T.R. 282 (Tri.-Mumbai)
  
Issue:- Abatement under Notification No. 1/2006-ST – condition of not availing cenvat credit for taking abatement benefit not applicable on service recipient of GTA. 
 
Brief Facts:- Appellants had availed cenvat credit of service tax paid on GTA service during the period from May 06 to July 06 and availed benefit of abatement under Notification no. 1/2006- ST dated 1.03.2006 read with notification no. 12/2003-ST. Department sought to deny the Cenvat credit so taken on the ground that the appellants had availed inadmissible exemption provided under Notification no. 1/2006-ST dated 1.03.2006. The Adjudicating Authority confirmed the demand alongwith interest against the appellant in terms of Rule 14 of Cenvat credit Rules, 2004 and imposed equal amount of penalty on appellant under Section 11AC of the Act r/w Rule 15 of Cenvat Credit Rules. In appeal, the Commissioner (Appeal) upheld the order of the Adjudicating Authority. Aggrieved by the said order the applicant filed appeal before Tribunal and sought waiver of pre-deposit. The appellant has also filed stay application of recovery of amount demanded.  
 
Appellant’s Contention:- Appellant submitted that they were service recipient and deemed provider of service. That Notification no. 1/2006-ST and Notification No. 12/2003-ST require the service provider not to avail Cenvat Credit on capital goods, inputs and input services. Notification no. 12/03 similarly restricted the service provider from availing the notification benefit. But the restriction laid down in the Notification did not apply on them who are service recipient. Appellant relied on the finding of Tribunal in case of Commr. of C.Ex., Rajkot Vs. Sunhill Ceramics Pvt. Ltd. [2008(9)S.T.R. 530 (Tri. Ahmd.)] wherein it has been held that  the condition of not taking credit of duty paid on inputs or capital goods used for providing such taxable service necessarily should relate to the service actually rendered by the Transport Agency. The respondent has not actually rendered the said services and as a consignor he has not availed the credit of duty paid on inputs or capital goods for providing such taxable services.  
 
The appellant further submit that they have already deposited 50% of the duty demand on direction of the Commissioner (Appeals) to decide their appeal.
 
Respondent’s Contention:- Departmentsubmitted that the appellant had availed inadmissible exemption provided under Notification no. 1/2006- ST read with Notification no. 12/2003-S.T. The Notification allowed abatement of 75% of the taxable value for the purpose of discharge of service tax under the category of GTA service on the condition that the service provider had not availed credit on inputs and capital goods and input service used for providing the service. Exemption is also subject to the condition that the service provider has not availed the benefit of Notification no. 12/2003-ST but in this case the appellants have availed Cenvat credit.
 
Reasoning of Judgment:- The Tribunal found that merit in the contention of the appellants. It was held that the restriction as to admissibility of abatement with reference to non availment of cenvat credit applies to the service provider. The appellant is a service recipient of the GTA service and discharged the service tax in terms of Section 68(2) of the Finance Act, 1994. It was held that the appellant is entitled to abatement denied to it as per the impugned order. Reliance was placed on the judgment given in the case of Commr. of C. Ex., Rajkot Vs. Sunhill Ceramics Pvt. Ltd.
 
Decision:- Appeal allowed with consequential relief. 

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