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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/2013-14/2047

Larger bench not liable to answer when matter already decided by High Court or Supreme Court.

Case:-HINDUSTAN AERONAUTICS LTD. Versus COMMR. OF SERVICE TAX, BANGALORE

Citation:-2013 (32) S.T.R. 783 (Tri.- LB)       

Brief facts:-In the present appeal , the taxable service in issue is not photography service but repair and maintenance service. The dispute arose in the context of the assessee claiming benefits under Notification No. 12/2003-ST., dated 20-6-2003. While the assessee claims benefits of exemption Notification No. 12/2003-S.T., for excluding the cost of the goods sold or deemed to have been sold to the service recipient; Revenue premised that the benefit of Notification No. 12/2003-ST. must be confined to sale of goods, excluding "deemed sale" i.e. the value of goods incorporated into a composite transaction involving service and sale. This is thecompeting position between the parties which has resulted in the order of reference; and at a point when the decision of the Larger Bench was not pronounced.  The Larger Bench in Aggarwal Colour Advance Photo System reported in 2011 (23) S.T.R. 608 (Tri. - LB)answered the reference by holding that;
(a) for the purposes of Section 67 of the Finance Act, 1994 (the Act), the value of services in relation to photography would be the gross amount charged including the cost of goods and materials used and consumed in the course of rendering such ser­vice; the cost of unexposed film etc. would stand excluded in terms of Explana­tion to Section 67, if sold to the client; and
(b) that the value of other goods and material, if sold separately would be excluded under exemption Notification No. 12/2003 and the term 'sold' appearing there under has to be interpreted using the definition of 'sale' in the Central Excise Act, 1944 and not as per the meaning of "deemed sale" under Article 366(29A)(b) of the Constitution.

Appellant’s contention:-Theappellant urged that the Delhi High Court explained the scope of Section 67 of the Act as being limited to ascertaining value of only the service component, wherever complex transactions involving service and sale elements including deemed sale are presented for valuation of a transaction as a taxable service. The appellant has  contended in this appeal and other learned counsel for intervenors that the jural bases of both aspects answered by the Larger Bench in Aggarwal Colour Advance Photo Systemis eclipsed by binding authority, of other decisions of Supreme Court and in particular, the decision of the Delhi High Court inG.D Builders.

Respondent’s contention:-The respondent is agreed that the judg­ment of the Delhi High Court and the other judgments of the Supreme Court which have clarified the distinct locii of taxability of service and of sale of goods in the context of provisions of the Act and of sales tax legislations, considered within the overarching constitutional allocation of discrete legislative powers, to the Union and State legislatures, ought to be considered, without treating the Larger Bench decision in Aggarwal Colour Advance Photo System as providing a quietus to the complex matrix of issues, of taxability of goods and services.

Reasoning of judgment:-After hearing both sides, it is concluded that since it is the submission of the counsel and representatives of the respective parties that the core of the dispute stands settled by higher authority of the Supreme Court and the Delhi High Court, they do not consider necessary to answer the issues referred for our consideration The grievance of the appellant is in the circumstances more appropriately decid­ed by the regular Bench which will now consider all relevant decisions presented for its consideration and resolution. Thus, in the circumstances they decline to answer the reference and rent the appeal, for disposition on merits, to the regular Bench.

Decision:- Answer to reference refused.

Comment:-The analogy that is drawn from this case is that when the issue under dispute stands settled by higher court, the larger bench may refuse to answer the issue that is referred to it and may transfer the matter back to the regular division bench for disposal on merits.   

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