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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/2014-15/2355

Extended period not invocable if there are contrary decisions.

Case:-  NEOGEN CHEMICALS LTD Vs COMMISSIONER OF CENTRAL EXCISE, BELAPUR
 
Citation:- 2014-TIOL-371-CESTAT-MUM
 
Brief facts:-The appellant is in appeal against the impugned order wherein CENVAT Credit availed on MS angle, MS beam, etc. has been claimed by the appellant as capital goods, which were used for foundation/structure of the machine/equipment, was denied by the lower authorities on the premise that as these items were used in erection of supporting structure, which are embedded to earth, therefore, they are not entitled to take credit.
 
Appellant’s contentions:-Ld. Counsel for the appellant submits that they have taken the input credit of these items during the period 2006-08 and show cause notice came to be issued on 22.05.2009 by invoking the extended period of limitation.
 
As the issue whether the CENVAT credit on these items is available or not was in dispute during the period and by the decision of Vandana Global 2013 (293) ELT 186 dated 30.04.2010 = (2010-TIOL-624-CESTAT-DEL-LB), the Larger Bench of this Tribunal held against the assessee. In these circumstances, extended period of limitation is not invocable. To support, he relied on ITC Ltd. vs. CCE 2012 (258) ELT 292. He also relied on CCE vs. Doodhganga Krishna Shakari Sakkare Karkhane Niyamit 2013 (297) ELT 361.
 
Respondent’s contentions:- On the other hand ld. AR submits that in the light of the decision in Vandana Global(supra) andSaraswati Sugar Mills 2011 (270) ELT 465 (SC) = (2011-TIOL-73-SC-CX) the appellants are notentitled to take credit and in the light of the decision of Vandana Global (supra), extended periodof limitation is invocable.
 
Reasoning of judgment:- In the light of the decision of Vandana Global (supra) the appellant have no case. But on limitation, they are having a case in spite of the decision of ITC Ltd. (supra). As the issue whether the appellant are entitled to take CENVAT Credit on the impugned items during the period or not was in dispute and the same was referred to the Larger Bench of the Tribunal and this Tribunal in Vandana Global (supra) decided the matter against the assessee. Therefore, when the issue of eligibility of credit was in dispute during the impugned period, the extended period is not invocable. Accordingly, they hold that in this matter, the extended period of limitation is not invocable.
 
Decision:- The appeal is allowed.
 
Comment:- The analogy of the case is that the CENVAT credit  on MS angle, MS beam, etc. as capital goods, used for structure of machine/equipment is not allowed as it was used in the errection of supporting structure. However, the extended period of limitation is not invocable as there were contrary decisions during the material period of time and the issue was settled only after the larger bench decision in the case of Vandana Global.  
 
Prepared by: Monika Tak

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