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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 Law/2013-14/1615

Declaration on letter head is sufficient when no format has been prescribed.
Case:- M/s HERO CYCLES LTD Vs COMMISSIONER OF CENTRAL EXCISE, GHAZIABAD
 
Citation:- 2013-TIOL-901-CESTAT-DEL
 
Brief facts:-This appeal is filed by M/s Hero Cycles Ltd. against the Order in Appeal No.172-CE/GZB/2008 Dated 29.08.2008. The brief facts of the case are that the appellants were holding the Service Tax Registration Certificate for discharging the service tax liabilities on the services of "Goods Transport Agency by Road" in terms of provisions of Section 68(2) of the Finance Act, 1994 & Rule 2(1) (d) (v) of the Service Tax Rules, 1994. The Scrutiny of ST-3 Returns of the appellants for the period April, 05 to March, 06 revealed that they had paid service tax on the services of GTA on 25% of gross amount of value without, submitting declaration/certificate from the provider of the said services for the facility of Cenvat Credit on inputs and capital goods and the benefit under Notification No.12/03 ST dated 20.06.2003, as required under Notification No.32/2004-ST dated 03.12.2004. Thus, the appellants were alleged to have wrongly availed exemption under Notification No.32/2004 ST ibid. In view of non-submission of the said declarations, the appellants were required to pay service tax on gross value (100% of the taxable value) and not on 25% of gross value, hence they were alleged to have short paid Service Tax by Rs. 38,70,588/- & Rs. 77,341/- (Edu. Cess) [Total Rs. 39,47,929/-]. A Show Cause Notice dated 20.10.2006 was issued to the appellants demanding service tax of Rs. 39,47,929/- along with interest and also proposing penalties on appellants. Show Cause Notice was adjudicated by the original authority vide order dated 11.10.2007. Appellants preferred appeal before Commissioner (Appeal) who Vide impugned order upheld confirmation of service tax along with interest and set aside the imposition of penalty. Appellants filed the present appeal against the impugned order.
 
 
Respondent Contentions:-Respondent contend that the declaration as stated in point (1) and (ii) below should be made on the body of the consignment note:
 
(i) The credit of duty paid on inputs or capital goods used for providing such taxable service has  not been taken under the provisions of the Cenvat Rules, 2004; or
 
(ii) The goods transport agency has not availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.12/2003-Service Tax, dated the 20th June, 2003 [2003 [503(E), dated the 20th June, 2003.
 
Reasoning of Judgment:-Issue in this appeal relates to abatement of 75% of gross amount charged by Goods Transport Agency under Notification 32/2004-ST dated 03.12.2004. For sake of convenience, this Notification is reproduced below:
 
"In exercise of the powers conferred by Sub-section(1) of section 93 of the finance Act, 1994 (32 of 1994), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service provided by a goods transport agency to a customer, in relation to transport of goods by road in a goods carriage, from so much of the service tax leviable thereon under section 66 of the said Act, as is in excess of the service tax calculated on a value which is equivalent to twenty five per cent, of the gross amount charged from the customer by such goods transport agency for providing the said taxable service:
 
Provided that this exemption shall not apply in such cases where -
 
(i) The credit of duty paid on inputs or capital goods used for providing such taxable service has been taken under the provisions of the Cenvat Rules, 2004; or
 
(ii) The goods transport agency has availed the benefit under the notification of the Government of India in the Ministry of Finance (Department of Revenue) No.12/2003-Service Tax, dated the 20th June, 2003 [2003 [503(E), dated the 20th June, 2003]
 
Also the tribunal in case of  M/s Paliwal Home furnishing Vs Commissioner of Service Tax, Delhi reported in 2011 (22) STR (53) has held as under:
 
“ It has not been denied by the Department that the certificate regarding non availment of Cenvat Credit and benefit of exemption under Notification No.12/03- S.T. from the respective Goods Transport Agencies had been produced by the appellant. When the exemption under Notification No. 32/04-ST and its successor Notification No.1/06-ST is subject to condition that the Cenvat Credit on the inputs or capital goods used for providing the GTA service has not been availed by the GTA or benefit of exemption Notification No.12/03-ST, dated 20th June 2003 has not been availed by the GTA and the Notification does not prescribe any format in which the certificate to this effect is to be provided, in our view, the certificates given by the GTAs on their letter heads in this regard are sufficient and the Department cannot insist that such certificates should on each consignment note. In view of this, the impugned order is not correct. The same is set aside. The stay application also stands disposed of."
 
Following the above cited decision, the Tribunal found that the appellant were eligible for availment of exemption under notification no. 32/2004 as amended. Accordingly, the appeal was allowed.
 
Decision: - Appeal allowed.
 
Comment: -The essence of this case is that when the exemption notification does not prescribes any format in which the certificate to effect the provisions of the law is required to be furnished, the certificates given by GTA on their letter heads are sufficient and the department cannot insist that such declaration should be there on each consignment note.
 
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