2026-VIL-755-KER
  1. Home
  2. 2026-VIL-755-KER

SGST High Court Cases

GST - Right to cross-examination of witnesses in adjudication proceedings - Petitioner sought opportunity to cross-examine persons whose statements were relied on in show cause notice, particularly contending that statements were recorded under compulsion while firm's Chairman was under detention. Adjudicating authority rejected request for cross-examination stating that persons had not retracted statements, documents corroborated statements, and cross-examination would be biased in favour of petitioner - Whether adjudicating authority can deny opportunity to cross-examine witnesses whose statements form basis of adjudication order under Section 74 of CGST Act, 2017 - HELD - When statements of witnesses form basis of adjudication order and are relied upon in show-cause notice, petitioner must be provided opportunity to cross-examine such witnesses if requested – The opportunity for cross-examination forms integral part of natural justice principles. Reason that persons have not retracted statements is not valid ground to deny cross-examination as purpose of cross-examination is to test veracity and challenge truthfulness of statements. Presumption that cross-examination would be biased cannot be basis for denying opportunity, as question of bias must be determined after evaluating statements elicited in cross-examination, not before - Documents relied as corroborative evidence cannot substitute for cross-examination when statements form primary basis of findings. Adjudicating authority possesses discretion to allow or deny cross-examination but must provide sound and justifiable reasons for denial - In this case, reasons provided were not convincing or sustainable. Statements recorded under compelling circumstances like Chairman's detention strengthen case for granting cross-examination – The adjudication order is quashed and the matter is remanded for fresh proceedings with direction that petitioner's request for cross-examination of witnesses shall be considered and cannot be rejected on reasons previously stated – The writ petition is disposed of - Assessment Procedure - Block Assessment for Multiple Tax Years - Whether assessment under Section 74 of CGST Act can be completed as composite block assessment covering multiple tax years or must be conducted separately for each tax period - HELD - Assessment under Section 74 must be completed on basis of individual tax periods as defined in statute and not as block or composite assessment for multiple years. Composite notice for multiple assessment years while completing assessment under Section 74 is not legally sustainable. Court has accepted this contention in earlier decisions in Joint Commissioner (Intelligence & Enforcement) v. Lakshmi Mobile Accessories and Tharayil Medicals cases where it was observed that composite notice for multiple assessment years is not permissible – The adjudication order passed as block assessment for multiple years is liable to be set aside on this ground itself.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTAT Filing: Closing Resolutions...
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?