GST Daily
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Welcome to Taxmann.com | Newsletter – Reporting the Facts with Taxmann's Analysis. Today's Edition Brings to You Comprehensive Coverage of GST Case Laws | Statutory Updates | Analysis.
1. HC grants interim protection to assessee as notification extending time limit for passing order lacks GST Council’s approval
The petitioner was aggrieved by the action on the part of the Central Board of Indirect Taxes and Customs in issuance of Notification No. 56/2023 dated 28.12.2023 extending time limit for passing order under section 73(9) for financial years 2018-19 & 2019-20. It filed writ petition and challenged the notification on ground that there was no recommendation of GST Council, which was mandatory requirement for issuance of said notification.
The Honorable High Court noted that there was no recommendation insofar issuance of said notification was concerned. Therefore, it was held that prima facie it appeared that the notification was not in consonance with provisions of Section 168A. However, the Central government was further taking steps for purpose of getting GST council ratification, which was yet to take place.
Therefore, the Court was of the view that the notification could not stand scrutiny of law and all consequential actions so taken on basis of such notification would also fail. Thus, the Court held that no coercive action would be taken on basis of impugned assessment order and department was directed to file affidavit.
2. HC set-aside order confirming demand as SCN didn’t specify date, time and venue for personal hearing
In the present case, a show cause notice (SCN) was issued to the petitioner under Section 73 of the CGST Act, 2017, seeking a response within thirty days from the date of the notice. The petitioner failed to respond and the department issued an assessment order under Section 73(9) of the Act confirming a demand of Rs. 18,54,576/-. It filed writ petition against the assessment order and contended that it was not afforded a proper opportunity for a hearing by the authority.
The Honorable High Court noted that the SCN indicated that an opportunity for a hearing might be provided, however it failed to specify any date, time, or venue for the hearing. The assessment was based on a show cause notice denying the petitioner the right to a personal hearing. Therefore, the proceedings based on the defective show cause notice must go. Thus, it was held that the SCN as well as impugned order confirming demand was to be set aside.
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