2026-VIL-582-MAD
  1. Home
  2. 2026-VIL-582-MAD

SGST High Court Cases

GST – Return of Job worked goods - Invocation of extended period of limitation - Maintenance of proper records – Petitioner had sent goods to its sister concern for job work without maintaining proper records as required under Section 143 of the CGST Act read with Rule 45 of the CGST Rules. The goods were not returned within the stipulated period, and the taxpayer could not furnish Form ITC-04 due to alleged technical glitches - Tax demand along with interest and penalty invoking extended period - Whether the authorities can invoke extended period of limitation under Section 74 of the CGST Act when the taxpayer fails to maintain records showing that goods sent for job work were returned within the prescribed time – HELD - The extended period of limitation under Section 74 has a much lower threshold compared to earlier indirect tax legislations. The GST scheme is based on self-assessment where the Department relies on records maintained by the assessee. If goods are dispatched on job work basis, proper accounts must be maintained and goods must be accounted for before supply from registered premises. When the taxpayer fails to maintain necessary records showing return of goods within the prescribed period, it is deemed that a supply has taken place and tax liability arises - The SCN sufficiently invokes Section 74 by referring to the relevant Sections and Rule provisions and calculating the demand with reference to Section 143(3), 144(4) and Rule 45(3) and 45(4). Technical objections regarding invocation of extended limitation cannot be countenanced in light of the scheme of GST enactment. The threshold for invoking extended period is lower compared to earlier legislation, and absence of detailed specification of all ingredients does not vitiate the proceedings when the statutory provisions are adequately referred to in the show cause notice - The writ petitions are disposed with liberty to the petitioner to establish that the issue is revenue neutral by demonstrating that inputs sent for job work suffered tax either in the hands of the principal or the job worker. The respondent shall thereafter pass final orders on merits after hearing the petitioner – The petition is disposed of
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST Recent Updates: GSTAT, EWB...
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?