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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/2013-14/1692

 

 Case:- PAHARPUR COOLING TOWERS LTD VERSUS COMMISSIONER OF C.EX., RAIPUR

Citation:-2013 (31) S.T.R. 227 (Tri.- Del.)


Brief Facts:-This appeal is two years old and rolling on the Board from 2-7-2012 for hearing while interim order was passed on 9-01-2009 waiving pre-deposit. Notice has been issued in sequence seeking presence of the assessee to contest its case. It appears that the assessee is abusing process of law to enjoy the benefit of interim order. Revenue being prejudiced the appeal is decided by this order ex-parte.
The following of the issues are in this case:
(i)             Whether the noticee was entitled to abatement of 67% from the value of commercial or industrial construction service under Notification No. 15/2004-S.T., dated 10-09-2004, even without including the value of free supplied materials in the gross amount of taxable service?
(ii)           Whether the advance received before providing the taxable service is chargeable to service tax;
(iii)          Whether the noticee  are entitled to benefit of Cenvat credit;
(iv)          Whether there are calculation errors in the show case notice; and
(v)           Whether the demand is time-barred.
 
Reasoning of judgment:- We have considered the submission from both sides and we conclude that the principal issue of abatement was denied by the ld Adjudicating authority in terms of para 13.10 of the adjudication order. Upon examination of the Circular No. 80/10/2004-S.T, dated 10-09-2004 Revenue intended taxation by value addition, but the assessee refuted the same. Adjudicating authority appears to have rightly decided the issue against the assessee following taxation of incremental value rightly principle. In so far as taxing of the advance is concerned, there is no ambiguity in the law. Law prescribes that the consideration received before, during and after providing of taxable service should enter into the net of the service tax. Therefore, that issue also goes against the assessee.
The third issue of claim was examination by the ld. adjudicating authority in para-15 of the adjudication order. Appellant failed to support its claim when photocopies of the invoices were only adduced before the Adjudicating Authority. The Authority noted that when inclusion of the value of goods is not done, assessee failed to support its claim of abatement.
Law is well settled that Cenvat credit is allowable to avoid cascading effect. If taxability does not arise, admissibility of Cenvat credit does not arise. Therefore, adjudication has rightly been done on this count also denying benefit.
So far as the calculation error is concerned, authority considered appropriately in para 16 of the order. We do not intervene to that.
So far as time-bar is concerned it is clear that when the conduct of the appellant makes clear that abatement was claimed not in accordance with law and so the proceeding was not time-barred. Therefore, section 73 of the Finance Act, 1994 was rightly invoked and adjudication was done in accordance with law.
 
Decision:-Appeal is dismissed.
Comment:-The crux of this case is that appellant has taken benefit under the notification no. 15/2004 S.T. dt. 10/09/2014, whereby abatement of 67% in Commercial or Industrial Construction Services is availed without even including the value of materials in the gross amount of taxable service. Moreover, credit was also taken on the basis of photocopies of the invoices that is clearly prohibited in law. In nutshell, it was held that extended period was correctly invoked and the appeal was dismissed, being devoid of any merits.

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