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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/2016-17/3071

Validity of Order passed after 16 months of conclusion

Case-EXCEL PRODUCTION AUDIO VISUALS PVT. LTD. Versus UNION OF INDIA
 
Citation-2016 (332) E.L.T. 254 (Bom.)
 
Brief Facts-This petition under Article 226 of the Constitution of India challenges the order passed by the Commissioner of Customs (Airport-II), Airport Special Cargo, Chhatrapati Shivaji Maharaj International Airport, Mumbai.
 
Appelants Contention-Mr. Shah, learned counsel appearing on behalf of the petitioners submits that in the present case the adjudicating authority heard the petitioners on 5th November, 2013 but the impugned order is dated 30th March, 2015, dispatched on 31st March, 2015 and received thereafter. Thus, it has been passed nearly 16 months after the date of personal hearing.
It is common ground that the Hon’ble Supreme Court has emphasized time and again that the orders pursuant to a personal hearing either by a court or the Tribunal or any quasi judicial body ought to be passed expeditiously and within a reasonable time. What could be said to be a reasonable time depends upon the facts and circumstances in each case.
 
Respondents Contention-Mr. Jetly assures the Court that the order should be passed as expeditiously as possible and in any event within a period of three months from today.

Reasoning Of Judgement-However, bearing in mind that the Revenue’s orders have immediate impact and parties ought to know their position in financial year to year, it is not proper that such an enormous delay should take place. It is not a case where any reason can be assigned for a hopelessly delayed order. They accept this statement, made on instructions, as an undertaking given to this Court. They clarify that each and every contention of the petitioner is kept open. They direct that in passing a fresh order, the adjudicating authority shall not be influenced by any of the earlier observations and findings. He shall pass an order after fresh application of mind to the controversy. In the circumstances, on this short ground alone, they quash and set aside the impugned order. The subject show cause notice shall now be reheard and readjudicated by the adjudicating officer. Meaning thereby, a fresh order shall be passed after a personal hearing to the petitioner. Mr. Jetly assures the Court that the order should be passed as expeditiously as possible and in any event within a period of three months from today. They accept this statement, made on instructions, as an undertaking given to this Court. They direct that in passing a fresh order, the adjudicating authority shall not be influenced by any of the earlier observations and findings. He shall pass an order after fresh application of mind to the controversy. Rule is made absolute in the above terms, with no order as to costs.
 
Decision-Petition allowed

Comment-The gist of the case is that that in passing a fresh order, the adjudicating authority shall not be influenced by any of the earlier observations and findings. And, since in the given case the order is passed after 16 months of conclusion of personal hearing such delay is unreasonable and accordingly the adjudication order set aside and cause notice to be reheard and redecided within three months.

Prepared By-Neelam Jain
 

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