CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases | https://www.nyca.in ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases Tue, 25 Jun 2024 12:16:27 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.1 https://www.nyca.in/wp-content/uploads/2022/08/9060CA_logo_icai-1.jpg CA in Jaipur | CA. Yogesh Jangid |ITR Filing 2023 | Company Registration | NGO Registration | Income Tax Raid Cases | Audit | Inc Incroporation | CPA in India | Subsidy | Project Funding | GST | GST Raid Cases | Income Tax Notice Faceless | DRI Cases | https://www.nyca.in 32 32 Delhi High Court Rules in Favor of Assessee: Personal Hearing Opportunity Required in GST Case https://www.nyca.in/delhi-high-court-rules-in-favor-of-assessee-personal-hearing-opportunity-required-in-gst-case/ https://www.nyca.in/delhi-high-court-rules-in-favor-of-assessee-personal-hearing-opportunity-required-in-gst-case/#respond Tue, 25 Jun 2024 12:16:27 +0000 https://www.nyca.in/?p=11404 In the case of M/s. Shree Padma Industries v. Union of India, the Delhi High Court ruled that the assessee must be granted an opportunity for a personal hearing. The court set aside the previous order and emphasized the need for fair reassessment in GST disputes.

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Introduction

The Hon’ble Delhi High Court, in the case of M/s. Shree Padma Industries v. Union of India [Writ Petition (Civil) No. 6274 of 2024 dated May 17, 2024], ruled that an opportunity for a personal hearing should be granted to the assessee. The court remitted the matter back to the authorities, emphasizing the importance of providing a fair chance to the petitioner to be heard in person.

Facts of the Case

M/s. Shree Padma Industries (“the Petitioner”) was served a Show Cause Notice dated September 29, 2023 (“the Impugned SCN”) in reference to FORM GSTR-01, stating that there was an excess claim of ITC under Section 16(2)(c) of the Central Goods and Services Tax Act, 2017 (“the CGST Act”). The notice included Annexure-B, detailing the reasons under separate headings. The Proper Officer (“the Respondent”) demanded INR 9,04,200/- including the penalty in the Impugned SCN.

The Petitioner requested access to the tabular chart in Annexure B and activation of the GST Portal to file a reply. However, an order dated December 12, 2023 (“the Impugned Order”) was passed, disposing of the demand proposed in the Impugned SCN, stating that the Petitioner neither filed a reply nor appeared for the Personal Hearing despite reminders and opportunities provided through the GST portal.

Aggrieved by the Impugned Order, the Petitioner filed the present writ petition.

Issue

Whether an opportunity for a personal hearing should be granted to the Assessee?

Held

The Hon’ble Delhi High Court in Writ Petition (Civil) No. 6274 of 2024 held as follows:

  • Annexure-B and Communication: The Court observed that the Impugned Notice specifically mentioned an Annexure-B. The Petitioner claimed to have requested a copy of Annexure-B to file a reply, but neither was it provided, nor was the Petitioner informed about its non-existence. It was only during these proceedings that the Respondents clarified there was no Annexure-B and that the table in the Impugned SCN contained all the details.
  • Reason for Impugned Order: The Court noted that the sole reason for passing the Impugned Order was the Petitioner’s failure to file a reply to the Impugned SCN. Given the Respondents' clarification about Annexure-B, the Court opined that one opportunity should be granted to the Petitioner to respond to the Impugned SCN.
  • Directions for Re-adjudication: The Court directed that the Petitioner should file a further reply to the Impugned SCN within two weeks from the date of the order. The Respondent should then re-adjudicate the Impugned SCN, providing an opportunity for a personal hearing to the Petitioner and pass a fresh speaking order in accordance with the law within the period prescribed under Section 75 (3) of the CGST Act.

Thus, the Impugned Order was set aside, and the matter was remitted back for reconsideration with an opportunity for the Petitioner to be heard in person.

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]]> https://www.nyca.in/delhi-high-court-rules-in-favor-of-assessee-personal-hearing-opportunity-required-in-gst-case/feed/ 0 Delhi High Court: No CA Certificate Required for Refund of Unutilized ITC https://www.nyca.in/delhi-high-court-no-ca-certificate-required-for-refund-of-unutilized-itc/ https://www.nyca.in/delhi-high-court-no-ca-certificate-required-for-refund-of-unutilized-itc/#respond Tue, 25 Jun 2024 12:07:52 +0000 https://www.nyca.in/?p=11396 Learn about the Delhi High Court ruling in M/s. Svera Agro Ltd. v. Commissioner of Central Tax, where it was determined that a CA certificate is not required for claiming a refund of unutilized Input Tax Credit (ITC) under the CGST Rules.

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Introduction

The Hon’ble Delhi High Court, in the case of M/s. Svera Agro Ltd. v. Commissioner of Central Tax [W.P. (C) No. 11926 of 2023 dated February 29, 2024], ruled that a Chartered Accountant (CA) certificate is not required to claim a refund of unutilized Input Tax Credit (ITC). This decision quashed the deficiency memo issued by the Revenue Department that demanded the CA certificate for the refund claim, emphasizing the proviso to Rule 89(2)(m) of the Central Goods and Services Tax Rules, 2017 (CGST Rules).

Facts of the Case

M/s. Svera Agro Ltd. (“the Petitioner”) applied for a refund of unutilized ITC. The Revenue Department rejected this application by issuing deficiency memos, which demanded the Petitioner furnish a certificate from a CA as per Rule 89(2)(m) of the CGST Rules. The Petitioner, aggrieved by this memo, filed a writ petition before the Hon’ble Delhi High Court.

Issue

The primary issue was whether a CA certificate is required to claim a refund of unutilized ITC under the provisions of the CGST Act and Rules.

Held

The Hon’ble Delhi High Court, in W.P. (C) No. 11926 of 2023, ruled in favor of the Petitioner. The Court observed the following:

  • Nature of Refund Claim: The Petitioner's refund claim pertained to unutilized ITC, which falls under Section 54(3) of the CGST Act.
  • Rule 89(2) Requirements: According to Rule 89(2) of the CGST Rules, documentary evidence is required to establish that a refund is due. Clause (l) of this rule stipulates that a CA certificate is needed if the refund amount exceeds Rs. 2 lakh.
  • Proviso to Rule 89(2)(m): However, the proviso to Rule 89(2)(m) explicitly states that a CA certificate is not required when an applicant seeks a refund of unutilized ITC.

Based on these observations, the Court held that the deficiency memos issued to the Petitioner, which demanded a CA certificate, were not sustainable and thus were set aside. This ruling affirmed that for refunds of unutilized ITC, the requirement to furnish a CA certificate is waived as per the applicable rules.

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