Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *  Dept. Can’t Classify Product as Zarda Scented Tobacco After Repeatedly Approving It As Chewing Tobacco: CESTAT *  Mere Uploading Of GST Order On Portal Is Not “Valid” Service: Tripura HC *  CGST Can Proceed Even If SGST Closed Similar Case Earlier: Delhi HC *  SC upholds 28% GST on online gaming with retrospective effect. *  West Bengal Govt cuts E-way Bill Threshold limit to Rs. 50,000 for intra-state goods movement. *  Criminal Prosecution Under Central Excise Act Can’t Continue After CESTAT Sets Aside Duty Demand on Merits: Punjab & Haryana High Court. *  Madras High Court Quashes GST Assessment Orders for Denial of Personal Hearing; Remands Matter Subject to 10% Deposit *  Ex Parte GST Order: Madras High Court Directs Immediate Removal of Bank/ITC Attachment Upon 25% Deposit *  J.K. Cement Receives GST Demand Order of Rs 8,02,113/- from Ahmedabad Tax Authority *  Delhi Police EOW Busts Alleged Rs. 128 Crore GST Fake Invoice Network. *  REPLY TO SCN CAN’T BE TREATED AS “EMPTY FORMALITY”: ORISSA HIGH COURT QUASHES GST DEMAND OF RS. 57.30 LAKH *  Challenge to CGST Provisions restricting ITC to Bonafide Purchasers : Allahabad HC issues notice *  CBIC Notifies Revised Customs Tariff Values for Edible Oils, Gold, Silver, Brass Scrap and Areca Nuts *  Delhi HC Orders Removal of GST Attachment After Statutory 1 Year Period Expired *  GSTAT Extends Relaxed Appeal Filing Guidelines till December 31, 2026 *  AO fails to Provide Import - Export Data from DGFT to Taxpayer for Reconciliation *  Gold, Silver Imports To Get Costlier As Govt Raises Customs Duty To 10%  *  GSTAT Enables Pre-Payment Access to Document Upload and Checklist for GST Appeal Filing *  GST Portal Restrictions Can’t Override Statute: Gujarat HC Allows Cross-State Transfer Of CGST ITC After Amalgamation *  Centre Revises HS Codes for Large Diameter Steel Pipes Used in Oil & Gas Pipelines *  Customs Duty Liability Arises On Warehouse Clearance Date: Supreme Court *  Government lifts export ban on de-oiled rice bran *  CESTAT Grants 12% Interest on Pre-Deposit for Investigation from Date of Deposit till Refund and Denies Interest on Interest. *  Government Overhauls GST Classification Framework for Non-Alcoholic Beverages; Fruit Juice Drinks, Milk-Based Beverages and Caffeinated Drinks to Attract Revised 5% and 40% GST Rates from May 1, 2026 *  India’s gross GST collections hit a record Rs 2.42 lakh crore in April, up 8.7% *  Customs clearance stalled, revenue hit over MRP dispute *  Shipping Corporation explores Middle East routes as Hormuz tensions disrupt cargo movement *  India, Kenya signs MoU for exchange of pre-arrival customs information *  No demand of Taxes under Reverse Charge if Tax Already Discharged by Service Provider under forward charge *  The India-New Zealand Free Trade Agreement, signed "once-in-a-generation" deal that eliminates tariffs on 100% of Indian exports to New Zealand
Subject News *  Consignment Sales Can’t Be Reclassified as Inter-State Sales Based on Pre-Agreement Evidence: CESTAT *  Exporter Can’t Be Denied Advance Authorization Benefit Due To ICEGATE Technical Glitch: Delhi High Court *  No GST Demand For Mere Wrong Set-Off Of IGST Credit Under CGST And SGST Heads: Kerala HC. *  Cenvat Credit Can’t Be Denied on Input Services Having Nexus With Manufacturing Activities: CESTAT *  Pending Proceedings Can’t Survive Without Saving Clause: Calcutta High Court Quashes GST Demand of Rs. 6.28 Crore After Omission of Rule 96(10) *  Madras HC Quashes GST Demands on TASMAC (Tamil Nadu State Marketing Corporation) Bar Licence Fee *  GST Proceedings Cannot Survive Omitted Rule Without Saving Clause: Calcutta HC *  Provisional Release Can’t Be Denied Solely On Dept. Suspicion Of Misclassification And Undervaluation Of Imported Goods: CESTAT *  Businesses Should Not Be Kept Outside GST Regime Without Due Process: Gauhati High Court *  Punjab & Haryana HC Directs Reconsideration of Contractors’ Claim for Additional GST Payment After Tax Rate Hike From 12% to 18% *  S. 108 Statements Can’t Be Sole Basis Without Following Section 138B Procedure: CESTAT *  Bombay High Court Frames Key Questions on Mandatory Distribution of ITC U/s 20 CGST Act *  Filing of Annexure-B for Refund Applications involving Accumulated ITC using the offline utility in GST portal: GSTN *  No Service Tax on Parent Company’s Un-Invoiced Cost Allocations Without Actual Service or Consideration: CESTAT  *  Calcutta High Court Upholds GST Classification of Polypropylene Leno Bags as Plastic Products *  DRC-01 Summary Can’t Replace Mandatory SCN: Gauhati High Court *  GSTAT Issues Major Bench Allocation Framework; All Appeals to First Go Before Division Bench *  ITC Blocking Without Reasoned Order Violates Rule 86A; Punjab & Haryana HC Directs Release of Credit *  Allahabad HC Refuses Bail to CGST Superintendent In Rs. 70 Lakh Bribery Case *  S.130 Can’t Be Invoked Without Prior Tax Determination U/s 73/74: Allahabad High Court Quashes GST Confiscation Proceedings *  SC grants Bail to Rs 54cr GST case  *  Karnataka HC Sets Aside Duplicate GST Orders, Orders Fresh Hearing on GSTIN Cancellation *  DRC-01 Summary Can’t Replace Mandatory SCN: Gauhati High Court *  Transfer Of Unutilized ITC After Amalgamation - Supreme Court Issues Notice *  PUNJAB & HARYANA HC QUASHES GST CANCELLATION NOTICE FOR FAILURE TO PROVIDE CBIC ENQUIRY REPORT *  LICENSE FEE, TECHNICAL ASSISTANCE CHARGES NOT INCLUDIBLE IN CUSTOMS VALUE UNLESS THEY ARE A CONDITION OF SALE: CESTAT *  DELHI HC ORDERS REMOVAL OF GST ATTACHMENT AFTER STATUTORY 1 YEAR PERIOD EXPIRED *  CUSTOMS BROKER CAN’T BE FAULTED JUST BECAUSE EXPORTER’S GST REGISTRATION WAS PREVIOUSLY CANCELLED: CESTAT   *  Supreme Court Dismisses Review Plea Against Delhi HC Ruling Holding Real Operator Behind Fake GST Firms Liable As ‘Taxable Person  *  GST Appeal Can’t Be Rejected Merely Because DRC-07 Was Not Uploaded On Portal: Bombay High Court  

Comments

Print   |    |  Comment

PJ/Case Law/2016-17/3360

whether rebate allowable when there is mismatch between the particulars mentioned in invoice and ARE-1?

Case:- LIFETIME INTEREXPO PVT. LTD. Versus UNION OF INDIA
 
Citation:-2016 (342) E.L.T. 199 (All.)

Brief facts:-
The petitioner claimed rebate of Central Excise Duty on alleged export of certain goods. The Assistant Commissioner, Customs and Central Excise, Agra (hereinafter referred to as the “A.C., C.C.E.”) issued show cause notice dated 11-11-2005 stating that on scrutiny of petitioner’s rebate claim it was found that description of goods in invoice No. 27 dated 19-6-2005 and in ARE-I No. 7/2005-06 did not match and excise duty which was payable was not paid in all four invoices and, therefore, it appears that claim of petitioner was not genuine.
Petitionersubmitted reply dated 16-11-2005 and thereafter the A.C., C.C.E. passed order dated 16-12-2005 finding that description of goods did not tally and even the gross weight and net weight of goods shown in ARE-I and shipping bills also do not tally. It thus rejected rebate claim of petitioner for Rs. 4, 17,058/. There against petitioner preferred appeal wherein also the Appellate Authority found that description of goods did not tally. Similarly on the question of gross weight and net weight difference, petitioner could not explain the same and, therefore, it also dismissed appeal vide order dated 29-8-2006 and confirmed the order of A.C., C.C.E. and petitioner’s revision was rejected vide order dated 5-6-2009.
 
Appellant’s contention:-
Sri Udit Chandra, learned counsel appeared  for the petitioner. Learned counsel for the petitioner submitted that the grounds mentioned in show cause notice have been widened in passing the impugned orders and his claim has been rejected on certain grounds not stated in show cause notice. He placed reliance on Commissioner of Central Excise, Chandigarh v. M/s. Shital International, AIR 2010 SCW 6835 = 2010 (259)E.L.T.165 (S.C.); Commissioner of Customs, Mumbai v. M/s. Toyo Engineering India Ltd., AIR 2006 SCW 5167 = 2006 (201)E.L.T.513 (S.C.); Madhav Steel v. Union of India and Others, Writ Petition No. 2706 of 2006, decided on 10-8-2010 [2016 (337)E.L.T.518 (Bom.)]; Formica India Division v. Collector of Central Excise and Others, 1995 Supp.(3) SCC 552 = 1995 (77)E.L.T.511 (S.C.); Commissioner of Central Excise, New Delhi v. M/s. Hari Chand Shri Gopal and Others, 2011 AIR SCW 1119 = 2010 (260)E.L.T.3 (S.C.); and, Kusheshwar Prasad Singh v. State of Bihar and Others, 2007(11) SCC 447.
 
Respondent’s contention:- Sri Siddharth Shukla, Advocate appeared on behalf of respondents and reiterated the submissions.
 
Reasoning of judgment:- However, Hon’ble judge found  that so far as description of goods did not tally with the invoice no. 27 and ARE-I are concerned, it was mentioned in show cause notice and was found to be correct. The petitioner was unable to give explanation in this regard. Similarly, for the purpose of difference of weights, the details were discussed in the order of A.C., C.C.E. and petitioner got opportunity even before Appellate Authority but was unable to explain the same satisfactorily. The difference could not be explained even before this Court.
Mismatch ofgoods mentioned in invoices and AREs was one of the grounds taken by A.C., C.C.E. It was true that A.C., C.C.E. had referred to such dispatch only in respect of invoice No. 27 and ARE-I No. 7/2005-06 but the Appellate Authority had considered on this aspect in respect to other invoices also as is evident from paras 10, 11 and 12 of the judgment and he found that goods did not match not only in respect of invoice No. 27 but invoice No. 30 also and in respect of invoice No. 28 he found that gross weight and net weight of goods shown did not tally. This very defect was also found in invoice No. 30. In the revision preferred by petitioner the above findings recorded by Appellate Authority were not shown perverse or contrary to material on record.
In viewthereof, they also did not find any justification to interfere with aforesaid findings of facts.
Coming to thedecisions cited at Bar on behalf of petitioner, they found that in Commissioner of Central Excise, Chandigarh v. M/s. Shital International (supra) the court found that notice issued to assessee-company did not mention any of the ingredients required to substantiate the charge which may justify rejection of his stand and levy of Cenvat and other duty additionally.
InCommissioner of Customs, Mumbaiv. M/s. Toyo Engineering India Ltd.(supra) the Revenue sought to raise certain issues for the first time in second appeal before Tribunal though these issues were never raised commencing from show cause notice, initial order passed by Assessing Authority and in the first appeal. It was in these circumstances, the Court observed that department cannot travel beyond the show cause notice and even in the grounds of appeal these points were not taken but that was not the case herein.
Similar was the case in Formica India Division v. Collector of Central Excise (supra) where the Revenue intended to raise an issue for the first time before High Court which was held impermissible by Apex Court. Similarly, other decisions did not help petitioner. They, therefore,did not find any reason to interfere with the impugned orders.
The writ petition lacked merit and hence was Dismissed. Interim order, if any, stands vacated.
 
Decision:-
Petition dismissed
 
Comment:-
The gist of this case is that as assessee was unable to correlate the documents submitted with the rebate claim, the claim was not admissible to him. Here had he contested the fact that all the other parameters mentioned in invoice, ARE-1 and shipping bill perfectly correlate to each other and merely difference in description of goods and weight was not a substantial reason to deny the rebate claim, there were major chances that he would have been granted the refund. There have been various judgements wherein it has been held that denying the benefit to a assessee merely on procedural and technical lapses was not accurate and justified.
 
Prepared by:- Monika Tak

Department News


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