GST Daily
Dear Reader,
Today’s newsletter analytically summarizes the top GST stories reported at taxmann.com .
HC set aside order as assessee was asked to appear for personal hearing within 2 hours of receiving SCN
The petitioner was a registered person under the current GST regime. The department issued a show cause notice (SCN) proposing to block the petitioner's Input Tax Credit (ITC) under Rule 86-A in respect of purchases made from a particular supplier. It filed a writ petition against the order and contended that a reasonable opportunity was not provided to submit relevant documents and explain the facts and circumstances.
The Honorable High Court noted that the SCN was served on petitioner by e-mail and the personal hearing was fixed on the same date at 2.00 pm, i.e. within two hours from the time of receipt of the e-mail. The Court further noted that the petitioner had been directed to reverse an ITC of a substantial value and such action had been taken pursuant to the SCN, which the petitioner asserts was received on the date of hearing.
The Court observed that a reasonable opportunity was not provided to the petitioner to submit the necessary documents and provide an explanation to the department. Therefore, the Court held that the impugned order was to be set aside and the matter was to be remanded for reconsideration.
ITC reversed late at night during search proceedings was not voluntary and to be returned to taxpayer: HC
Santosh Kumar Gupta v. Commissioner, Delhi Goods & Services Tax Act - [2024] 158 taxmann.com 226 (Delhi)
The petitioner was engaged in the business of manufacturing and trading of electrical goods. The department conducted a search at his business premises and the petitioner was compelled to reverse the ITC amounting to Rs. 22,14,226. He filed a writ petition seeking a refund of ITC as he was compelled to reverse ITC.
The Honorable High Court noted that the petitioner had filed FORM GST DRC-03 but there was no acknowledgement of receipt by the Department by issuing FORM GST DRC-04. Also, the petitioner had filed a writ petition after one month from a recording of the statement and the same was being retracted.
The Court also noted that the petitioner may have reversed ITC in intimidating circumstances and he would not reverse ITC in normal course late at night. Therefore, the contention of the department that the reversal was voluntary was not acceptable and the Court directed the department to restore ITC.
That’s it from us for today! Stay Tuned for more updates from Taxmann.com .
Taxmann.com | Research – The Legal Repository on Tax | Corporate Law & Accounting that India Trusts
?????????? ??????????????.?????? | ????????????????:
An AI-based search engine designed to recreate and simplify the way you conduct your legal research. A combination of features that are impeccably specified are tied by a common thread:
? Making your legal research easy and efficient.
? With a Search Engine containing the most extensive database on tax and corporate laws in India, it fetches the relevant document in a single click. ? The platform sets itself apart by providing – Integrated and Annotated texts of statutory materials with legislative history.
? 'Three-Line-Digest', 'Head Note'/'Digest' in every case law. Along with a list of backward & forward case linking of judicial analysis & its 'Check Viability tool', which helps you determine which case law is reliable.
Subscribe Now and Transform the Way You Work! https://taxmann.social/zy3Fb