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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/2012-13/1286

When intimation of exemption availed given, there is no suppression of facts.

Case:- ENVIRONMENT PLANNING COLLABORATIVE versus COMMR. OF SERVICE TAX, AHMEDABAD
 
Citation:-2012 (27) S.T.R. 28 (Tri.-Ahmd.)
 

 
Brief Facts:-Assessee is a service provider of scientific and technical consultancy services to UNDP and the demand of service tax is made on the ground that the appellant is not eligible for exemption to the services provided by them to UNDP and also liable to penalty on the same for suppressing the facts to the revenue.
 
Appellant Contention’s:-The Appellant submits that the department issued show cause notice for demand of service tax and penalty on services provided to UNDP. As per the Notification No. 48/98-S.T., there were five services liable to service tax and Service provided to UNDP is eligible for the exemption. Show cause notice was received in November 2006 for demand of service tax and penalty on the same. Appellant submit that while filling the ST-3 returns with covering letter indicating the amounts received from UNDP for rendering of services, they had claimed exemption under Notification No. 48/98-S.T. There is no acknowledgement of the department on the covering letter even though ST-3 returns have rubber stamp of the department. The facts clearly show that there was no sup­pression of facts on the part of the appellant and the covering letter was indeed submitted but the stamp was not put on it. The covering letter had been admittedly received for the period end­ing 9/2001, 3/2002 and 3/2003 would clearly show that there was no intention on the part of the appellant to suppress facts or indulge in misdeclaration with intention to evade service tax. Therefore, the demand is time- barred and extended period could not have been invoked in this case.
 
Respondent Contention’s:-The Respondent sub­mits that the fact remains that appellant is not able to show that the return though was acknowledged, the covering letter intimating about receipt of amounts for services rendered has not been acknowl­edged. Under these circumstances suppression of fact has been correctly in­voked.
 
Reasoning of Judgement:-We have considered the submissions made by both the sides and it is found that the Appellant had intimated the department about the availment of exemp­tion in respect of services provided to UNDP for two periods from 25-10-2002 and for the period ending in March 2003, which would show that appellant had bona fide belief that they were eligible for exemption. When an assessee intimates the de­partment by way of two letters and subsequently also he intimates, and in the middle there is no rubber stamp on the covering letter and only on the ground that covering letter does not have a rubber stamp, even though ST-3 returns at­tached to the covering letter had the rubber stamp, is not a convincing way of invoking the extended period and demand of service tax and imposing penalty. In view of the fact that appellants have intimated the department on three occa­sions in the covering letter with the returns and only in the middle for one period of ST-3 return, such intimation was given but covering letter was not having rubber stamp, on that ground only the bona fide belief cannot be questioned. Department has not been able to make out a case of suppression of facts and justification for invocation of extended period. In view of the above, appeal is allowed with consequential relief to the appellants.
 
Decision: -Appeal Allowed.
 
Comment:In this case also the analogy is that the revenue is required to prove with evidences that there has been suppression of facts with intention to evade payment of duty for invoking the extended period of limitation. When the intimations have been given by the assessee to the department on several occasions, it cannot be said that there has been suppression of facts by the assessee.
 
 
 
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Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com