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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/2015-16/2758

Delay in filing appeal is condonable only on satisfactory cause.

Case:-COMPETENT AUTOMOBILES CO. LTD. VERSUSCOMMR. OF SERVICE TAX, NEW DELHI
 
Citation:-2015 (38) S.T.R. 238 (Tri. - Del.)
 
Brief facts:-The assessee preferred this appeal on 3rd April 2013 against the Order-in-Original No. 33/VKG/2007, dated 27-9-2007 passed by the Commissioner (Service Tax), New Delhi confirming Service Tax levy of Rs. 1,26,48,080.91 apart from interest under Section 75 for providing Business Auxiliary Service during February 2004 to March 2006, on the gross commission received from Maruti Finance, a unit of Maruti Udyog Ltd. Rs. 24,65,694.27 already remitted by the assessee was appropriated and is so recorded in the order.
Against the adjudication order, the assessee filed writ petition (Civil No. 8089/2012) along with miscellaneous application No. 20133 of 2012 before the Delhi High Court. By the order dated 21-12-2012, the High Court dismissed the writ petition as withdrawn, granting liberty to seek appropriate statutory remedies by way of rectification and/or revision as the case may be, in terms of such request addressed by the Counsel for the appellant herein, before the High Court.
Thereafter the assessee filed Service Tax Appeal No. 4175 of 2012 against a notice demanding remittance of the adjudicated liability. This appeal was dismissed as withdrawn on 19-3-2013 granting liberty to the assessee to file an appeal challenging the adjudication order. Thereafter the present appeal was filed on 3-4-2013. The assessee seeks condonation of a delay of 1916 days, pleading the above circumstances as justification therefore.
 
Appellant’s contention:-Ld. Counsel for the appellant refers to the judgment in Esha Bhattacharjee v. Managing Committee of Raghunathpur Nafar Academy & Ors. - 2014 All India Services Law Journal (page 20) for the proposition that the expression “sufficient cause” in the statute of limitation must receive a liberal construction; the principles governing limitation should apply appropriately, depending on the facts and circumstances of a given case; that once a valuable right has accrued in favour of one party as a result of the failure of the other party to explain the delay by showing sufficient cause and its own conduct, it will be unreasonable to take away that right on the mere asking of the applicant, particularly when the delay is directly a result of negligence, default or inaction of that party; that justice must be done to both parties equally; however, there should be a liberal, pragmatic, justice-oriented and a non-pedantic approach applied for consideration of an application for condonation of delay.
 
Respondent’s contention:- In 1968, a Constitution Bench in Trilokchand Motichand and others - AIR 1970 Supreme Court 898 an occasion to consider whether belated or stale claims are bound to be considered when presented in a writ petition filed under Article of the Constitution. Chief Justice Hidyatulla in concurring opinion (with concurrences recorded by Justices Bachawat and Mitter; Justices Hegde and Sikri dissenting) clearly ruled that the Court will not inquire into belated and stale claims or take note of evidence of neglect of one’s own rights for a long time. Majority pointed out that the Court would not only but should not entertain the stale claim. Court ruled that utmost expedition is the sine qua non for presenting the claim for adjudication; the party aggrieved must move the Court at the earliest possible time to explain satisfactorily all semblance of delay.
 
Reasoning of judgment:- In the facts and circumstances of this case, it is apparent that the adjudication order dated 27-9-2007 was challenged by the assessee by way of writ petition in 2012 after lapse of five years and withdrew the writ petition, obtaining liberty to pursue appropriate statutory remedies. Thereafter, the assessee filed an appropriate appeal against the order of demand and not the adjudication order. This appeal was dismissed as withdrawn on 19-3-2013. Thereafter is the present appeal filed on 3-4-2013 with a delay of nearly six years (1916 days). The adjudication order dated 27-9-2007 is to be nullity for patent lack of jurisdiction. It is a formal order passed by the authority exercising statutory powers authorizing assessment of Service Tax liability. Finance Act, 1994 clearly provides an appellate remedy to be pursued within three months from the date of order of which the assessee is aggrieved.
In the circumstances, the petitioner/assessee cannot gainfully contend that it had a reasonable or bona fide reason in not pursuing the appellate remedy, within limitation period of three months. This application does not plead any satisfactory cause for condonation of the delay of 1916 days in preferring appeal.
In the aforesaid circumstances, there are no merits nor any satisfactory cause shown for condoning the delay. The application for condonation of delay is therefore dismissed. Consequently, the appeal stands rejected.
 
Decision:-Application dismissed/Appeal rejected
 
Comment:- The analogy of the case is that assessee cannot gainfully contend reasonable cause or bona fide reason in not pursuing appropriate remedy within limitation period of 3 months without proving the same. The present application fails as there was no satisfactory cause for delay. This indicates that every delay cannot be condoned unless and until it is supported by valid and genuine reasons.
 
Prepared by:- Monika Tak

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