Explore the concept of ‘Call Book’ as a defense against GST litigation. Learn how leveraging Section 75(11) can strategically pause proceedings during pending appeals, offering potential advantages for taxpayers.
Notices under GST has become a routine morning courier for business houses. There are in general two types of notices – taxpayer specific and subject specific. Taxpayer specific notices are customized to specific taxpayer issue raised whereas subject specific notices are same subject notices issued in wholesale to various taxpayers (on finding a flaw in general trade practices). For the subject matter, we are focusing on later i.e. subject specific notices.
When a subject specific notices are issued, trade in general goes ahead with submissions to authorities and going ahead, to higher authorities as well. Every state has multiple submissions by multiple taxpayers on same subject litigation. Results of some are pronounced at first stage which may again be challenged and results of some are yet to be pronounced.
Now when a professional is approached for submission to same subject litigation, though the approach adopted by a professional in conducting a litigation is well planned, such well planned’s approach result is either in favour or against. No third option exists. What about exploring that third option? That third option is call book.
Extract of Section 75 (11) is relevant here :
An issue on which the Appellate Authority or the Appellate Tribunal or the High Court has given its decision which is prejudicial to the interest of revenue in some other proceedings and an appeal to the Appellate Tribunal or the High Court or the Supreme Court against such decision of the Appellate Authority or the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Authority and that of the Appellate Tribunal or the date of decision of the Appellate Tribunal and that of the High Court or the date of the decision of the High Court and that of the Supreme Court shall be excluded in computing the period referred to in subsection (10) of section 73 or sub-section (10) of section 74 where proceedings are initiated by way of issue of a show cause notice under the said sections.
It is simply; any adverse decision against the revenue (in any other case) which is appealed further to higher forums; the time taken between lower forum’s decision and higher forum’s decision is to be excluded in computing the period for proceedings (in our case) already initiated under Section 73 (10) or Section 74 (10).
Any litigation on which final verdict is yet to be pronounced (in any other case), for which trade in general, nationally, face an issue may be put in call book; by which litigation will stay on hold (in our case) until such verdict is out.
Make sure, Section 75 (11) does not anyway grabs opportunity of taxpayer of being heard or represent his case on merits. It is mere adjournment of our case, the outcome of same subject which may be dependent on superior forum’s favourable outcome (in any other case); which may impact in general, the interest of taxpayer. In case of unfavourable outcome (in any other case) anyway, routine submissions would follow.
There are advantages in putting our case in call book as under :
i. Taxpayer would not suffer working capital hiccups by pre-depositing money to litigate at higher forums in case of an adverse order at first stage of litigation.
ii. All efforts that goes in preparing replies to litigate, may not be required, you never know that a favour pronounced at higher forum could turn to a blanket relief covering the taxpayer too.
In cricket, thrashing the ball may win you matches, waiting for the right moment to hit the ball wins you championships! Waiting has its own magic, isn’t it !
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DISCLAIMER: The views expressed are strictly of the author and Sagar V Shah & Associates. The contents of this article are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon.
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