GST Daily
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Today’s newsletter analytically summarizes the top GST stories reported at taxmann.com.
The petitioner filed a writ petition before the High Court against the order of cancellation of registration passed by the Superintendent. The issue in the given case was that the show cause notice pertaining to the given cancellation order did not contain any reason why the authority proposed to cancel the registration. Instead, in the show cause notice itself, the department contended that the registration was obtained by means of fraud, wilful misstatement or suppression of facts. ? ? ?
Later, physical verification of the premises was carried out by the department and it was reported that no one was found at such a premise and the door was found sealed by DGGI Chennai. Also, the verification report was not uploaded on the designated portal. ? ? ?
In this regard, the petitioner’s registration was then cancelled on account of an enquiry pending against the petitioner, which was being carried out by the DGGI, Chennai concerning the supply of ‘spurious goods’. However, nothing was due from the petitioner on account of tax, interest, penalty or cess. ? ? ?
Based on the above facts, the High Court held that the impugned order has gone beyond the frame of the show cause notice wherein no specific reason was mentioned as to why the registration was being cancelled by the department. Therefore, the High Court set aside the order of cancellation of registration. ? ? ?
Rule 96 of the Central Goods and Services Tax Rules, 2017 provides for the refund of IGST paid on the export of goods. Further, it is also provided that in a few specified scenarios, the refund may be withheld. One such scenario is where on the basis of data analysis and risk parameters, the Principal Director General/Director General of Directorate General of Analytics and Risk Management (DGARM) is of the opinion that in order to safeguard the interest of revenue, the verification of credentials of the exporter including the verification of ITC availed by the exporter is essential before granting the refund. Therefore, in such cases, the refund claim is first transmitted to the jurisdictional proper officer of the Central tax, State tax and Union Territory tax in the system generated Form GST RFD-01. ? ? ?
In this regard, the CBIC has issued detailed instructions providing the manner of processing and sanction of IGST refunds where such a refund is withheld in terms of the above-said provisions. ? ? ?
In view of these detailed instructions, the SOPs earlier issued, dated 23-01-2020 and 20-05-2020, prescribing the procedure to be followed for verification of the risky exporters are superseded by these instructions.
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com
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