2023-TIOL-1122-HC-KAR-GST
Purva Metal Sections Pvt Ltd Vs State of Karnataka
GST - Petitioner challenges the Audit observations; the Audit report and the SCN issued as well as the order of adjudication and has sought for setting aside the demand of tax, interest and penalty - Petitioner submits that the SCN being cryptic has resulted in an ineffective reply and accordingly the order of adjudication is vitiated for not having afforded sufficient opportunity to the petitioner.
Held: Court finds that it would be appropriate if the observations in the Audit Report and the intimation given by the Department be read as part and parcel of the Show Cause Notice and while observing so, the petitioner would be at liberty to make out a fresh reply in light of the observations made, thereby the Show Cause Notice at Annexure-'D' dated 13.10.2022 is now deemed to include the observations in the Audit Report as well as the Intimation of Tax ascertained at and such reply to the Show Cause Notice to be made out by the petitioner within four weeks - Contention of the petitioner that Show Cause Notice at Annexure-'D' by itself does not contain all the grounds, requires acceptance, in the facts of the present case - All proceedings are set aside and matter is remitted back to the Authority - Petition is accordingly disposed of: High Court [para 5, 7]
- Petition disposed of: KARNATAKA HIGH COURT
2023-TIOL-1121-HC-MAD-GST
Sri Renga Timbers Vs Asstt. Commissioner (ST)
GST - TRAN-1 - Mistake committed in filing TRAN-1 - Petitioner is responsible, however, the fact remains that the aforesaid amount had remained un-utilised as per the monthly returns filed by the petitioner for the month of June-17, which was the last return filed under the TNVAT Act, 2006 before the enactment of the respective GST Acts with effect from 01.07.2017 - The amount was also not disputed by the respondents when the first return was filed by the petitioner on 24.08.2017 - Supreme Court in Dai Ichi Karkaria [ 2002-TIOL-79-SC-CX-LB ] has held that the credit that was validly availed cannot be denied - It is held that validly availed credit is indefeasible in law - Although, the petitioner has blundered all the way by filing form TRAN-1 on 24.08.2017 and the revised return on 28.11.2022, the fact remains that the amount of Rs.89,88,498/- was the credit that was lying un-utilised in the last return filed by the petitioner for the month of June 2017 - Such credit cannot be denied even if there is a mistake in the returns filed in TRAN-1 twice - Supreme Court in Unichem Laboratories [ 2002-TIOL-237-SC-CX ] has held that it is not on the part of the duty of the revenue to deny the benefit that was otherwise legitimately available to an assessee - Court is inclined to quash the impugned order and remits the case back to the respondents to re-examine the records of the petitioner afresh from the last VAT return for the month of June 2017 under the TNVAT Act, 2006 - In case such credit was available, even if there was any discrepancy while filing Form TRAN-1, the mistakes committed by the petitioner may be overlooked and the credit that availed and utilised can be condoned and regularised - This exercise shall be carried out by the respondents within a period of four weeks - Writ petition stands allowed with observations: High Court [para 19 to 23]
- Petition allowed: MADRAS HIGH COURT
2023-TIOL-116-AAR-GST
Karaipudur Common Effluent Treatment Plant Pvt Ltd
GST - Process carried out by the Applicant involves conversion of effluent water into treated water to make it suitable for reuse by the member units - At the same time, the treated water cannot be put into any other usage, as the same is not completely free of impurities, bacteria and other harmful micro-organisms and chemicals - Zero Liquid Discharge system (ZLD) has been mandated by the TNPCB for all the highly polluting industries including Textile Dyeing and Bleaching industries in order to prevent pollution of River water and ground water - Therefore, it is evident that the common effluent treatment plant has been set up in order to comply with the legislative and environment regulations thereby conserving water through recovery and reuse and not to manufacture water or chemicals - Effluent treated water [heading 2201] is eligible for exemption as per Sl.no. 22 of Notification No. 2/2017-Central Tax Rate as amended vide notification No. 7/2022-Central Tax (Rate) : AAR
- Application disposed of: AAR
2023-TIOL-115-AAR-GST
KSH Automotive Pvt Ltd
GST - Canteen facility is to be compulsorily made available to the workers of the applicant and the number of the workers is well above 250 - Due to the mandatory nature of maintenance of canteen and the proviso under the sub-section 17(5) of blocked credit, AAR holds that ITC will be available to the applicant in respect of GST charged by the vendors of canteens subject to the condition that the burden of GST has not been passed on to the employees - The applicant is eligible for proportionate ITC on permanent employees, on food supplied by canteen service to employees only and not contractual workers: AAR
- Application disposed of: AAR |
