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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/2011-12/1494

Invocation of Extended period when not justified

Case: Commissioner of C. Ex., Mysore V/s Reid & Taylor (India) Ltd.
 
Citation: 2012 (25) S. T. R. 85 (Tri. - Bang.)
 
Issue:- Payment of Service tax on GTA from Cenvat Credit – Extended period of limitation cannot be invoked when decisions of Tribunal giving different view and bona fide error made by assessee.
 
Brief Facts:- During the period from January, 2005 to March, 2006, the respondents utilized cenvat credit for payment of service tax on GTA services received by them. Revenue entertained a view that this is not correct and accordingly proceedings were initiated which has resulted in impugned order wherein the Id. Commissioner has held in favour of the respondents on merits relying upon several decisions of the Tribunal. Revenue is in appeal.
 
Appellant’s Contention:- Ld. DR on behalf of the Revenue submitted that in the case of FTC Ltd. v. CCE, Guntur [2011-TIOL-568-CESTAT- BANG = 2011 (23) S.T.R. 41 (Tri.-Bang), the Tribunal has taken a view that Service tax on GTA services received by assesses who are engaged in providing some taxable service/manufacture of dutiable final products cannot pay service tax on GTA services received by them by utilizing cenvat credit. He submits that this is the latest decision and fairly admits that there were several decisions in the past wherein a view was taken that cenvat credit can be used for payment of service tax on GTA services by recipients.
 
Respondent’s Contention:- Ld. Counsel submitted that there were several decisions wherein a view was taken in favour of the respondents and in the case of CCE, Belgaum v. Shri Tubes & Steels Pvt. Ltd. [2011 (21) S.T.R. 370 (Tri.-Bang.)], the Tribunal also took the same view and in fact in that case the Tribunal had considered several decisions rendered on the same subject unlike in ITC Ltd. case where only Panchmahal Steel Ltd. [2008 (12) S.T.R. 447 (Tribunal)] case was referred to. Further he also submits that respondent has a very strong case on limitation and all the decisions rendered by the Tribunal were in favour of the respondents and therefore suppression of facts or misdeclaration could not have been invoked and in this case show-cause notice was issued in December, 2007 where the period for which the demand has been made is from January, 2005 to March, 2006.
 
Reasoning of Judgement:- The Tribunal held that since they find that on limitation itself appeal can be allowed, it do not proposed to go into merits at all in view of the fact that two co-ordinate Benches have taken different views on the subject. Of course in the case of ITC Ltd. in para 8 and 8.1. provisions of Rule 2(r) and Rule 2(q) of Cenvat Credit Rules have been discussed and on this ground also decisions have been differentiated. However, the fact remains that till the decision in the case of ITC Ltd., all the decisions were in favour of the respondents and therefore invoking suppression or misdeclaration etc. for confirmation of demand is not in order. Further, they also take note of the submission made by the Id. Counsel that even the original adjudicating authority has taken a view that the failure on the part of the assessee is acceptable as a bona fide error and cannot be attributed to be wilful intention to evade tax. In view of the above discussion, appeal fails on the ground of limitation alone and not going into merits since appeal can be rejected only on this ground. Appeal filed by the Revenue as well as the Cross-objection filed by the respondent gets disposed of.
 
Decision:- Appeal disposed off.

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