Abhishek Raja "Ram"
@abhishekrajaram
MEC, STBA Delhi || Speaker and Author on GST. Life dedicated towards Tax and Economic Reforms & Simplification
Special Powers in Litigation: Understanding Key Judgments
Inspection, Search and Seizure are special powers that should be exercised cautiously. But the practical usage is reversed. Let's understand few judgments that will help you in litigation.
Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155
1. If the commissioner has reason to authorize a search for relevant documents, a court can't replace its judgment with the commissioner's on issuing the search order.
Supreme Court in ITO vs Seth Brothers (1969) 74 ITR 836
Landmark NCLT Judgment: Tax Dues as Operational Debt
Big Breaking: Landmark Judgment by NCLT - Delhi
Resolution Plan upheld: The Department's tax dues are treated as operational debt, not secured, under the IBC framework.
GST/IDT Department's statutory dues do not have preferential treatment
ver secured creditors under the IBC framework.
Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155
Assessee's Burden of Proof and Credit Rejection
Where initial burden in support of claim was discharged by assessee by placing e-way bills, invoices, bank statement and Form GSTR–2A, credit could not be rejected by reasons of non-disclosure of documents like loading expenses, transportation expenses, unloading expenses and vouchers in this regard reflected in cash book unless revenue was able to overcome initial discharge of burden of proof by assessee, by impeaching documents disclosed by assessee.
When CGST and SGST were incorrectly shown in tax invoice while e-way bill contained IGST as type of tax correctly, department should verify whether for mistake committed, penalty could be imposed.
Kerala High Court in S.P. Traders vs Assistant State Tax Officer (2023) 7 GSTL 57
Proper Consideration of Input Tax Credit
save this important judgment
Where assessee inadvertently claimed Input Tax Credit in ‘RCM’ column instead of ‘All other ITC’ column in GSTR-3B returns, demand order passed without properly considering assessee’s reply cannot be sustained.
Madras High Court in Revathi Industrial Enterprises vs Deputy State Tax Officer, Chennai (2024) 24 CENTAX 78
The Science Behind Drafting a Reply To Show Cause Notice in GST: Part-3
Concluding Part-3: The Science Behind Drafting a Reply To Show Cause Notice in GST
Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155
7. Check the time limitation period to issue SCN and Order
7.1 The time limit for FY 2017-18, 2018-19 and 2019-20 was extended through various circulars. [Circular No. 13/2022, 09/2023, 56/2023]
7.2 This extension was challenged before Honourable Gauhati High Court and it was held that Notifications extending time limit under Section 73 of CGST Act challenged; recovery of assessed amount stayed, considering similar interim reliefs granted in other jurisdictions.
Gauhati High Court in Jahar Sarma vs Union of India [(2024) 20 CENTAX 444]
Show Cause Notices in GST: Part-2
Part-2: The Science Behind Drafting a Reply To Show Cause Notice in GST
Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155
4. Bunching of Multiple Years
4.1 Many times, the Department issues SCN for multiple Financial Years. This is usually done to benefit from the extended time period. While doing so, the Department conveniently ignores the time limitation for individual years.
4.2 Where bunching of show cause notices for multiple assessment years under Section 73 of CGST Act had exceeded individual three-year limitation period for each year, High Court held such bunching invalid, directing separate adjudication for each year.
Madras High Court in Tital Company Ltd. vs Joint Commissioner of GST and Central Excise (2024) 15 CENTAX 118
Decoding GST Show Cause Notice Replies
The Science Behind Drafting a Reply To Show Cause Notice in GST
Thoughts, Insight and Research by: Abhishek Raja Ram, 9810638155
Drafting a reply is a blend of Science and Art. Today, we delve into the science behind it, where 2 + 2 always equals 4.
1. Check whether DIN is mentioned on SCN or not.
1.1 Circular No. 122/41/2019-GST: Any specified communication that does not bear the DIN and is not covered by the exceptions shall be deemed to have never been issued.
1.2 Circular No. 128/47/2019-GST: Quoting of DIN on any communication is compulsory.
1.3 Implementing a system for the e-generation of DIN for all communications sent by State Tax Officers to taxpayers would enhance good governance; the UOI/GST Council should issue advisory and instructions to States, and States should implement the DIN system. Supreme Court in Pradeep Goyal vs Union of India (2022) 63 GSTL 286
Income Tax Department Uncovers Bogus Deduction Claims
🚨 Income Tax Compliance Alert: Bogus Deduction Claims Under Scrutiny! 🚨
The Income Tax Department in India has uncovered alarming cases of incorrect deduction claims by taxpayers. A staggering 90,000 taxpayers have already withdrawn false claims amounting to ₹1,070 crore as of December 2024, and paid additional taxes. 💰
Supreme Court Challenges GST Department
🚨 BREAKING: Supreme Court Calls Out GST Department! 🚨
The Supreme Court has slammed the GST department for issues with fake invoices, questioning how genuine buyers can be held liable for the faults of their suppliers.
The court emphasized, "Look at it from the point of view of the taxpayer, not just the department's perspective." It's high time for accountability and clarity in GST practices to protect honest businesses.
#SupremeCourt #GSTChallenges #TaxReform