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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/2010-11/1179

rebate can be adjusted towards the amount of interest to be paid by the assessee for delay in payment of arrears of duty under section 11-AA

Case: -COMMISSIONER OF CENTRAL EXCISE, BANGALOREv/sSTELLA RUBBER WORKS (UNIT-II)
 
Citation:- 2011-TIOL-325-HC-KAR-CX
 
Issue:-Whether the rebate can be adjusted towards the amount of interest to be paid by the assessee for delay in payment of arrears of duty under section 11-AA of the Central Excise Act?
 
Brief Facts:- Respondent-assessee was engaged in the business of manufacture of tread rubber. On meeting intellect that Respondent was suppressing the value of their clearances by fraudulent means with the intention to avoid Excise duty, the Excise officers visited the premises and seized the related documents and records of the assessee. Department issued show cause notice to the appellant demanding differential amount of duty payable by the assessee for the period from 1982-83 to 1984-85. The request of the Respondent to pay the aforesaid amount in instalment was rejected by the department. The assessee paid the amount in two instalments. While rejecting there request for payment of amount in instalments they were informed that the delay in payment would result in interest liability under Section 11-AA of the Central Excise Act. But the Respondent did not paid the amount of interest.
             
Respondent-assessee had another unit for which rebate was claimed. The rebate was sanctioned but the sanctioned amount of the rebate was appropriated towards the amount of interest which was due from the assessee. Aggrieved by the said action, the assessee preferred an appeal to the Tribunal.
 
The Tribunal held that the rebate could not be adjusted against the interest amount due of the assessee. Hence, Revenue is in appeal before the Tribunal.
 
Appellant’s Contention:-  Respondentcontended that by virtue of Section 11 of the Central Excise Act 1994, the Revenue was empowered to adjust the amounts due to the revenue by the way of interest against the amount due by the department to the assessee by means of rebate. Therefore, Section 11 would deal with the recovery of the sums due to the government by the assessee.
 
Reasoning of Judgment: - The High Court held that provision of Section 11 provided that if any if any duty or sums due to the Central Government under the Act and recovery of certain amounts, if any person owing money to the assessee, the revenue may proceed against such person and recover the duty and other sums due to the government. It was held that it is in the nature of garnishee proceedings. The said provision does not contemplate adjustment of monies due to the assessee towards the amount due to the revenue. Therefore, reliance placed on the said provision is of no help to the Revenue. Apart from this provision there were no provision pointed out which provided that such adjustment of dues can be done by the Revenue to adjust the amounts due to them as against the amounts due by them to the assessee.
 
The High Court held that the Tribunal was justified that the adjustment of the amounts due to the revenue by the way of interest against the amount due by the department to the assessee by means of rebate was not based on any statutory provision. When once the adjudicating authority had held that the assessee was entitled to refund of the amount which they had paid to the department in absence of a specific provision authorising the revenue adjusting the amount of interest towards due to them, it was improper to them to make such adjustment. As without any authority of the law they could not adjust the amounts which were due to the assessee. Further they committed no legality in setting off the said amounts.
 
Decision: - Appeal dismissed.
 

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