GST Daily
Dear Reader,
Today’s newsletter analytically summarizes the top GST stories reported at taxmann.com.
The proceedings were initiated against the petitioner by the issuance of show cause notice in Form GST-DRC-01 proposing recovery of transitioned CENVAT credit in terms of Section 73(1) of the CGST Act, 2017 along with interest and penalty. It filed writ petition and raised the question of the lack of jurisdiction of the adjudicating authority to decide upon the availment of CENVAT credit by the petitioner.
It was contended that proceedings for wrongful availment of CENVAT Credit had been initiated by the revenue under Section 73 (1) of CGST Act instead of relevant provisions of Finance Act read with Rule 14 of Cenvat Credit Rules 2004 and disallowed CENVAT credit carried forward by the petitioner by filing TRAN-1.
The Honorable High Court noted that as per Section 73 of CGST Act, 2017, the proceeding can be initiated for non-payment of any tax or short payments or for erroneous refund or for wrongfully availing or utilizing input tax credits which are available under CGST Act. However, Section 73 does not speak of CENVAT Credit as CGST Act does not provide for CENVAT Credit rather term has been subsumed in expression input tax credit both relating to the supply of goods or services. The assumption of jurisdiction to determine whether CENVAT Credit was admissible under existing law by invoking provisions of Section 73 of the CGST Act was not proper in the eyes of the law.
Therefore, the Court held that the initiation of proceedings under Section 73 (1) of CGST Act, 2017 against the petitioner for the transition of CENVAT Credit as being inadmissible under existing law was beyond jurisdiction.
The GST registration of the petitioner was cancelled. It was found that there was no option to initiate the revocation of cancelled registration by the department after the revocation order. The petitioner filed a writ petition directing the GST department to revoke the cancellation of the registration pursuant to the revocation order and not to levy a late fee/penalty for late filing of returns.
The High Court noted that earlier a temporary mechanism to restore cancelled registration was created in the back end and an advisory vide e-mail was issued. Now, new functionality has been developed and deployed in the name of "Restoration of Cancelled Registration" as a permanent mechanism, to facilitate restoration based on an appeal order obtained against cancellation. The Court directed the department to circulate functionality developed to GST officers, an association of traders and industries and the tax bar association for revocation of cancellation in respect of an order passed by the Appellate Authority or High Court.
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com
Register Now for Taxmann's Classes | [Virtual] Workshop on Handling GST Notices, Summons & Departmental GST Audit – A Practical Perspective
1 Session | 1 Speaker | 180 Minutes
?? 20th December 2022 (Tuesday) | ?? 3:00 PM – 6:00 PM (IST)
Fees: ? 795/- + GST @18% Extra
Register Now! (Limited Slots Available): https://taxmann.social/jeD0u
Faculty:
? CA (Dr) Ayush Saraf – Practising Chartered Accountant | Vice-Chairman of the Guwahati Branch of the ICAI
Dr Saraf has vast experience in GST Matters and specializes in litigation work. He has also co-authored a book, 'Practical Guide to GST Compliances,' published by Taxmann. He regularly writes and speaks on GST matters in various forums.
Key Learnings:
?? Basic understanding of a Show Cause Notice
?? Summons under the GST Law
?? Understanding different types of notices under the GST Law
?? How to conduct departmental GST Audit
?? Case Laws under various scenarios
Benefits to Participants:
?? Get Replies to your Queries
?? Complimentary Access to the GST Module of Taxmann.com | Practice for one month
?? Complimentary Virtual Access to Taxmann's Practical Guide to GST Compliances for one month [Virtual/e-Book]
?? Certificate of Participation
?? Relevant For:
? Chartered Accountants
? Cost Accountants
? Company Secretaries
? Departmental Officers
? Tax Practitioners
? Tax & Finance Heads
? Taxpayers
? Articled Assistants
? Audit Assistants