Relief to Petitioner in case where Show Cause Notice does not clearly indicate reasons for which registration is cancelled
Revenue Department cannot cancel the GST Registration of an assessee where specific reasons are not provided.
Tag: SCN
ITC of recipient cannot denied without conducting due diligence of supplier
The Hon’ble Calcutta High Court in Suncraft Energy Private Limited and Another v. The Assistant Commissioner, State Tax set aside the order of reversing excess credit availed in Form GSTR-3B as compared to Form GSTR-2A and held that the demand notice issued to the assessee for reversing the ITC could not be sustained without proper inquiry into the supplier’s actions.
Higher penalty cannot be levied where owner of goods come forward in case of detention
The Hon’ble Allahabad High Court in M/s.Margo Brush India & Ors. v. State of U.P set aside the penalty order passed under Section 129(1)(b) of the UPGST Act by the adjudicating authority and held that penalty u/s 129(1)(b) of the UPGST Act was unjustified and untenable…
Revenue Department cannot pass subsequent order in the matter which is already been adjudicated
The CESTAT, Ahmedabad, in Neeraj Sharma v. Commissioner of Customs, Kandla [Customs Appeal No. 12056 of 2018-DB dated July 24,…
No Service tax on incentives received by travel agents from airlines or CRS companies
The Hon’ble Supreme Court in Principal Commissioner Central Excise Delhi I v. SOTC Travels Services Private Limited dismissed the Appeal filed by the Revenue Department by relying on the judgement wherein it was held that the Performance linked bonus (“PLB”) and Computer reservation service (“CRS”) fees received by airline agents are not subject to service tax under the category of ‘Business Auxiliary Services’ (“BAS”).
No penalty in case of commission of illegal act without mens rea
The Hon’ble Delhi High Court in Rajeev Khatri v. Commissioner of Customs set aside the penalty order passed under Section 112(a) of the Customs Act, 1962 and held that assessee cannot be penalized for abetting the illegal import as there is no evidence that assessee has knowledge of the import of prohibited goods.
Order passed before the dates provided for filing of reply and personal hearing is violative of principles of natural justice
The Hon’ble Allahabad High Court in Sunil Enterprises v. Commissioner Commercial Tax set aside the order passed by the Adjudicating Authority and held that once the dates have been fixed and communicated to the assessee for the purpose of filing of written reply and for the purpose of oral hearing then no adjudication order could be passed before the dates have passed.
SCN issued without issuance of DRC-01A is valid where entire tax amount is disputed by taxpayer
SCN issued without issuance of DRC-01A is valid where entire tax amount is disputed by taxpayer.
Rectification application rejected due to non-cooperation by assessee during assessment
The Hon’ble Madras High Court in Seoyon E-Hwa Summit Automotive India (P.) Ltd. v. Deputy Commissioner (ST)-I held that rejection of rectification application filed under section 161 of the CGST Act, 2017 is justified as the assessee has not cooperated with the Assessing Officer during the assessment.
Granting 12 hours to reply to a SCN is violation of the principles of Natural Justice
The Hon’ble Gujarat High Court in Dineshkumar Chhaganbhai Nandani v. Income Tax Officer set aside the assessment order and held a proper opportunity must be given to the Assessee whenever a Show cause notice or an assessment order is issued and further commented that it is very difficult to file a reply to the Show Cause Notice within 12 hours.