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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/2016-17/3064

Whether Cenvat credit can be deny in case of non-availability of documents which are not the prescribed documents in terms of the Cenvat Credit Rules?
Case:- VEER-O-METALS PVT. LTD. Versus COMMISSIONER OF C. EX., BANGALORE-III
Citation:- 2016 (331) E.L.T. 475 (Tri. - Bang.)
Issue:- Whether Cenvat credit can be deny in case of non-availability of documents which are not  the prescribed documents in terms of the Cenvat Credit Rules?
Brief Facts:-The appellant is engaged in the manufacture of sheet metal enclosures, pressed components, mechanical assemblies, etc., classifiable under Chapters 84 and 85 of the Central Excise Tariff Act, 1985. They were also availing the benefit of Cenvat credit of duty paid on the inputs received by them and utilised in the manufacture of their final product. The appellant’s factory was visited by the Central Excise officers, who conducted various checks and verifications. On scrutiny of the documents, it was found that though the appellant was maintaining Goods Receipt Notes (GRNs) for receipt of the goods at the factory gate and the BIN Cards for showing issuance of the materials, such documents were not available in respect of 11 invoices. As such, the visiting officers entertained a view that the appellant has availed the Cenvat credit without actually receiving the inputs. The statement of one Shri Jayaram who was in-charge for maintaining the said BIN cards was recorded who could not confirm the accountal of the goods. On the abovebasis, proceedings were initiated against the appellant by way of issuance of a show cause notice alleging wrong availment of Cenvat credit availed during the period June, 2007 to January, 2008. The said proceedings culminated into an order passed by the Additional Commissioner, confirming the demand along with confirmation of interest and imposing penalty of identical amount. The said order stands upheld by Commissioner (Appeals).  Hence the appellant has filed appeal before Tribunal.
Appellant’s Contention:- The appellant submits that they receive around 1200 invoices in a year and maintain all the requisite documents. Non-maintenance of GRNs and BIN cards in respect of 11 invoices out of huge number of 1200 invoices cannot be adopted as a ground for denial of the credit by arriving at a finding that only invoices were received without the corresponding receipt of inputs. He submits that such inputs were duly accounted by them in their Cenvat credit account and used in the manufacture of the final product, which was cleared on payment of duty. Such clearances of final product were not possible without the receipt of the inputs. He submits that there being no other evidence on record reflecting upon the non-receipt of the inputs, the Revenue’s case is liable to be rejected.
Respondent’s Contention:- Learned AR appearing for the Revenue reiterates the findings of the lower authorities.
Reasoning of Judgment:- The Tribunal considering the submissions made by both the sides, finds that the credit availed by the appellant in respect of 11 invoices stands denied on the sole ground that there are no corresponding GRNs and BIN cards. The appellants have explained that out of the huge number of invoices being received by them, such non-maintenance or non-availability of GRNs and BIN cards cannot be held to be leading to the conclusive findings of non-receipt of inputs. They find force in the above contention of the learned advocate. The Revenue has not made any enquiries from the sender of the inputs, as reflected in the invoice. The appellants have recorded the invoices, inputs along the available Cenvat credit in their statutory records. They also find force in the appellant’s contention that in the absence of the inputs in question, corresponding final products could not have been manufactured by them. The non-availability of the said documents which are not even the prescribed documents in terms of the Cenvat Credit Rules and the purpose of which is only to show the receipt of the materials at the factory gate, cannot be held to be conclusive evidence so as to arrive at a finding of the non-receipt of the goods. In the absence of any corroborative evidence, they find no merits in the Revenue’s stand. Accordingly, the impugned orders are set aside and the appeal is allowed with consequential relief to the appellant.
Inasmuch as the appeal stands allowed on merit, the plea of limitation raised by the assessee is not being adverted to.
Decision:- Revenue’s order set aside and assessee’s appeal allowed with consequential relief.
Comments:- The Tribunal has decided the case that the revenue has not produce any corroborative evidence against the assessee. Even the revenue has not made any enquiries from the sender of the inputs, as reflected in the invoice. The tribunal also consider that the non-availability of the said documents which are not even the prescribed documents in terms of the Cenvat Credit Rules and the purpose of which is only to show the receipt of the materials at the factory gate, cannot be held to be conclusive evidence so as to arrive at a finding of the non-receipt of the goods
 
 
 
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