The Tribunal held that the assessee wrongly availed Cenvat credit on Bills of Entry already used by its manufacturing unit. The demand and penalty were upheld as the credit had no nexus with service activities.
CESTAT Kolkata held that horticulture activities such as garden maintenance and plant care fall within agricultural services and are not liable to Service Tax. The Tribunal therefore set aside the major portion of the tax demand raised on this turnover.
The Madras High Court quashed a GST assessment order after finding that it was passed without granting the taxpayer an opportunity of personal hearing. The case was remanded for fresh adjudication with proper notice and hearing.
The High Court dismissed the writ petition noting that the assessment order remained unchallenged for nearly eleven months, but allowed the taxpayer to file an appeal with additional deposit.
The court found that the statutory requirement for service of notice was not met when the department relied only on portal-based communication after cancellation of registration.
The High Court ruled that the recovery notice could not be challenged as the assessment order determining interest and penalty was not appealed and had attained finality.
The High Court set aside a GST demand order after observing that the adjudicating authority did not examine the taxpayer’s detailed reply and issued only generic conclusions. The ruling emphasized that adjudicating authorities must discuss submissions and provide clear reasons before confirming tax and penalty demands.
The Court revoked cancellation of GST registration after accepting that the taxpayer’s failure to file returns for six months was due to mental stress and physical illness.
The High Court held that general penalty under Section 125 cannot be imposed when late fee is already levied under GST law. The court therefore removed the penalty while confirming the late fee liability.
The High Court held that reassessment proceedings must follow proper procedure when the assessee is deceased. The tax authority must issue notice to the legal representative before initiating proceedings.
