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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/2015-16/2942

Rejection of refund application without granting personal hearing.

Case:- MATRIX PUBLICITIES AND MEDIA (I) PVT. LTD. VERSUS UNION OF INDIA
 
Citation:- 2015 (40) S.T.R. 447 (Bom.)
 
Brief facts:-By consent of parties, rule is made returnable forthwith and heard finally.
By this Petition under Article 226 of the Constitution of India, the Petitioners have challenged two orders, both dated 31st July, 2015 (Annexures A1 and A2 to the Petition), under which the Refund Applications of the Petitioners were rejected by the Respondents.
 
Appellant’s contention:- Mr. Paranjape, learned counsel appearing on behalf of the Petitioners, submitted that in the facts and circumstances of this case, the impugned orders were passed on the merits of the Refund Applications but without affording an opportunity of any oral hearing to the Petitioners. He submitted that according to the Petitioners, the services provided by them are qualified as export of service under Rule 6A of the Service Tax Rules, 1994 r/w Rule 3 of the Place of Provision of Services Rules, 2012. In these circumstances, the Petitioners vide their letters dated 19th March, 2015 and 18th June, 2015 filed Refund Applications alongwith documents as stated in the said letters. In fact, the said letters categorically stated that a personal hearing be accorded to the Petitioners before any adverse order is passed in relation to their refund claim, and they reserve their right to make submissions thereafter. Mr. Paranjape submitted that despite this, the impugned orders were passed on the merits of the Refund Applications and without giving the Petitioners any prior hearing.
 
Respondent’s contention:- Mr. Jetly, learned counsel appearing on behalf of the Respondents, could not dispute that a prior hearing (oral/personal) was not given to the Petitioners before the impugned orders were passed.
 
Reasoning of judgment:- In light of the above concession and the undisputed factual position, they allow the Writ Petition. They set aside the impugned orders and direct that the Refund Applications of the Petitioners shall be heard afresh by the Competent Authority.
Before passing a fresh speaking order, the Competent Authority shall give an opportunity of a personal hearing to the Petitioners and allow them to make their submissions and produce such other material as is permissible in law. After due consideration of the oral submissions and documents, the Competent Authority shall pass a speaking order assigning reasons.
It is clarified that they have not expressed any view on the merits of the Refund Applications and all contentions raised in that regard by both parties are kept open. While deciding the matter afresh, the Competent Authority shall not be influenced by any of the earlier conclusions as recorded in the impugned orders, each of which are quashed and set aside. Rule is made absolute in the aforesaid terms and with the above directions. However, they leave the parties to bear their own costs.

Decision:-Petition allowed
 
Comment:- The substance of the case is that refund application of petitioner rejected without granting him opportunity of hearing, even when specifically asked for. It is decided by the HC that matter be remanded for fresh decision after giving opportunity of hearing to petitioner and considering his submissions. Deciding the case without granting personal hearing is gross violation of the principles of natural justice.  

Prepared by:- Monika Tak

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