Page 59 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] NEWS DESK J117
GST recovery orders during lockdown nixed — Gujarat
High Court
The Gujarat High Court has recently quashed GST Department’s recov-
ery orders because they were passed after the firms and traders failed to remain
present for hearing during the lockdown period imposed by the Government
due to Covid-19 pandemic.
One Remankhan Belim said that he could not go to the state GST office
on May 14 following the summons because there was complete lockdown in
Ahmedabad. Another litigant told the High Court that the Central GST Depart-
ment had summoned him on May 7, but the office of the Department itself was
closed. In both the cases, the Departments issued orders for recovery on the
ground that they did not remain present for hearing upon notice.
The HC quashed the GST Department’s orders and asked them to decide
the issue afresh after granting proper hearing opportunity to people. The HC
said that the state GST officials passed a payment order against Belim on the very
day he could not attend the hearing. It said that the order “smacks of vice of
principles of natural justice”. The Department was ordered to issue fresh notice
to Belim and grant him an opportunity to present his case properly.
Another case involved Hitech Projects Pvt. Ltd. and one of its partners,
Tejas Dalal. The firm was facing a proceeding for Excise duty amounting over
` 27 lakh since 2016 under Section 11A(4) of the Central Excise Act, 1944. Last
year, the firm opted for Sabka Vishwas (Legacy Dispute Resolution) Scheme,
2019. As the Department scheduled a hearing and Dalal was summoned on May
7, but the Government office was closed because of the lockdown. The Depart-
ment later raised Form SVLDRS-3, which is an order for the defaulter to pay the
amount within 30 days. The Department’s Act led the firm to the HC complain-
ing that they did not get an opportunity to explain how much money had been
paid earlier. But this could not happen because of the closed office.
[Based on https://timesofindia.indiatimes.com., dated 20-7-2020]

Exporters facing GST refund issues as Government makes
invoice matching compulsory for Input Tax Credit
Many exporters are facing a working capital crunch as they have run in-
to refund problems after a recent Government circular said exporters would not
be eligible for Input Tax Credit refunds in cases where they are unable to match
invoices from the vendors.
This situation is a result of the Government waiving off late fees for
companies and suppliers to upload certain forms under the Goods and Services
Tax, tax experts said.
That led to several cases where these forms were not uploaded, and ex-
porters were unable to take Input Tax Credit running into crores.
As per the GST framework, tax credit cannot be availed until and unless
a corresponding invoice is reflected on the Government portal.
GST LAW TIMES  23rd July 2020  59