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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/2010-11/1086

Opportunity of being heard

Case: M/s Hindustan Petroleum Corpn Ltd, Visakhapatnam v/s Commissioner of Central Excise & Customs, Visakhapatnam
 
Citation: 2010-TIOL-70-CESTAT-BANG
 
Issue:- Assessee should be given opportunity to present his case.
 
Brief Facts:- During the scrutiny of the records maintained by the appellants it appeared that they had recovered delivery charges, Barge/ Wharfage charges etc in excess of the value on which excise duty had been paid on clearances of various petroleum products to bunkers for coastal run vessels.
 
Show cause notice was issued proposing to demand duty not paid on these charges found to have been recovered under commercial invoices. The assessee did not reply to the show cause notice. The assessee did not substantiate before the Adjudicating Authority that the excess amounts collected were towards transportation eligible for abatement from the assessable value under Rule 5 of the Central Excise (Determination of Price of Excisable Goods) Rules, 2000.
 
The Commissioner found that the assessee had not shown transportation charges separately in the invoices so that the same could be deducted from the assessable value of the clearances made during the material period 01.08.2003 to 29.02.2004. The Commissioner found that the commercial invoices showed recovery of amounts other than the charges for transportation of goods. As regards the transportation charges such as Barge, Wharfage charges, delivery charges, actuals of which are admissible for deduction, the assessee had failed to furnish the relevant figures. Accordingly, it was held that an amount of Rs.6, 09,691/- was short paid by the assessee. The demand was confirmed adjudicating the notice issued invoking the larger period.
 
Appellant’s Contentions:- Appellant submitted that being a public sector undertaking they did not make any undue gain by evading duty due to the exchequer. The demand could not have been validly confirmed by the Commissioner in the absence of a finding of fraud, collusion, willful mis-statement of facts etc. The show cause notice was issued without arriving at a correct finding as to the nature of excess collection alleged against the appellant. The clearances of petroleum products by the appellants were governed by the pricing circulars issued periodically by their Headquarters and followed by different installations. The amounts found to have been collected in excess represented delivery charges/wharfage etc. entitled for exclusion from the assessable value under Rule 5 of the Central Excise (Determination of Price of Excisable Goods) Valuation Rules, 2000.
 
Appellant submits that they had failed to avail the opportunity to properly explain their case before the Adjudicating Authority. They submitted that given an opportunity, they would explain the nature of the amounts realized on the impugned clearances and that no excise duty was payable on such amounts found to have been collected by them. There was no suppression of facts on their part.
 
Reasoning of Judgment:- The Tribunal perused the order of the Commissioner wherein it was found that during the material period the appellant collected various higher cum-duty amounts under commercial invoices compared to the Central Excise invoices. It was found that the appellant had collected excess amount including other charges. The appellants had not furnished the details of transportation charges admissible as abatement in terms of Rule 5 of Central Excise Valuation Rules. Considering the submissions by the appellants that the excess amounts represented amounts admissible as abatement under Rule 5 of the Central Excise Valuation Rules and that they were not able to present their case properly before the Adjudicating Authority, the Tribunal remand the matter for fresh adjudication by the Commissioner.
 
Decision:- Appeal allowed by way of remand.
 
Comments:- The principle of natural justice requires that the party should be heard and represented before deciding the case. But in instant case, the party was not able to present their case properly. Hence the tribunal rightly remanded the case to original adjudication authority. 

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