2026-VIL-116-GSTAT-RPR
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  2. 2026-VIL-116-GSTAT-RPR

SGST Tribunal

GST - Exemption on recovery of write-off amount of a housing loan account under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 - Show cause notice under Section 73(1) proposing demand on an amount treated as taxable supply - Appellant contended before the Tribunal for the first time that the disputed amount represented recovery of a written-off housing loan, constituting an exempt/non-GST transaction being a transaction in money relating to a loan, and therefore not exigible to GST - Respondent objected that the plea based on the Notification was raised for the first time before the Tribunal and was an afterthought, and that the claim was unsubstantiated - Whether recovery of write-off amount of a housing loan account is exempt from levy of GST under Notification No. 12/2017 - HELD - A notification issued under statutory power, such as Section 11 of the GST Act, is legislative in nature and has the force of law. A pure question of law can be raised at any stage of the proceedings. Hence, the objection to raising the plea for the first time before the Tribunal is not tenable - Entry No. 27 of Notification No. 12/2017 exempts services by way of extending deposits, loans and advances in so far as the consideration is represented by way of interest or discount, and therefore covers the transaction relating to recovery of a loan amount - Recovery of write-off amount of a housing loan account held exempt from levy of GST under Notification No. 12/2017, subject to the Appellant establishing by cogent and reliable documentary evidence that the amount pertains to a written-off loan account recovered during the relevant period - Question of law answered in favour of the appellant - Non-consideration of documentary evidence regarding write-off of housing loan account by the Appellate Authority - Power of Appellate Tribunal to direct production of documents under Rule 112(4) of the CGST Rules, 2017 - Appellant contended that documents evidencing recovery of a written-off housing loan account were placed on record but not considered by the Appellate Authority - Whether the matter requires remand for consideration of such documentary evidence - HELD - The document evidencing deposit in the written-off loan account, being a record of a recognised bank, is admissible as prima facie evidence under Section 4 of the Banker's Books Evidence Act, 1891 upon production of a certified copy, without requirement of further formal proof. The Appellate Authority failed to consider such document as per law - The Appellate Authority or Tribunal retains the power under Rule 112(4) of the CGST Rules, 2017 to direct production of any document notwithstanding anything contained in the rule, to enable disposal of the appeal - For a just decision of the litigation, the matter requires remand for production and consideration of the relevant document and the record of the written-off housing loan account - Order-in-Appeal set aside and appeal remanded to the Appellate Authority with direction to the Appellant to produce the certified copy of the relevant document and the record of the written-off housing loan account, for consideration and decision according to law.
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