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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/2013-14/2056

Whether non submission of relied upon documents by adjudicating authority amounts to violation of principle of natural justice?

Case:-  ATUL MANUFACTURERS V/S COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD
 
Citation:- 2013 (297) E.L.T. 459 (Tri.-Ahmd.)
 
Brief Facts:- The assessee filed these stay applications and the Hon’ble Tribunal after allowing the stay petitions, take up the appeals themselves for disposal. The main issue involved in these appeals is regarding classification of the product of the appellant. The appellant’s claim is that the product merits classification under Chapter No. 31, while the department’s contention is that the product merits classification under Chapter 38.

Appellant’s Contention:-The appellants submit that the entire show cause notice proceeds on the ground that the Chemical Examiner in his report dated 17-3-2010 has come to a conclusion that their product does not merit classification under Chapter No. 31. It is his submission that while adjudicating the issue, the adjudicating authority has relied upon a letter/report of Chemical Examiner dated 1-7-2011, which was obtained by the adjudicating authority after the personal hearing was concluded and also they were not provided the copy of the same. It is his submission that this specific plea was taken before the first appellate authority who has also not considered their plea in a proper perspective. It is his submission that having not given the copy of the said report, the entire case goes beyond the charges levelled in the show cause notice.
 
Respondent’s Contention:-The Respondents reiterates the findings of both the lower authorities.
 
Reasoning of Judgment:- The Hon’ble Tribunal held that the show cause notice proceeds on the ground that Chemical Examiner’s report dated 17-3-2010, which opines that product of the appellant will not get covered under Chapter No. 31. On perusal of the record, they find that adjudicating authority has relied upon the Chemical Examiner’s report dated 1-7-2011, copy of which was not provided to the appellant. In their view, both the lower authorities have erred in not providing the copy of the said report to the appellant on which they are deciding the classification issue. To that extent, both the orders stands passed in violation of principles of natural justice.
In order to meet the ends of justice, they find that the matter should be remitted back to the adjudicating authority. Accordingly, without expressing any opinion on the merits of the case, keeping all the issues open, directing the lower authorities to give a copy of the letter dated 1-7-2011 to the assessee, they set aside the impugned order and direct the adjudicating authority to reconsider the issue afresh, after following the principles of natural justice.
 
Decision:- The appeal was allowed by way of remand.
 
 
Comment:-The gist of this case is that it is very important that all the evidences and documents relied upon by the adjudicating authority while deciding a particular issue are being made available to the assessee also. Non submission of chemical examiner report on the basis of which classification was decided under chapter 38 amounts to gross violation of the principles of natural justice. 

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