2026-VIL-274-GSTAT-BLR
  1. Home
  2. 2026-VIL-274-GSTAT-BLR

SGST Tribunal

GST - Violation of principles of natural justice by passing an adjudication order without personal hearing under Section 75(4) of the CGST Act, 2017 - The Adjudicating Authority confirmed a demand of excess ITC availed in GSTR-3B as compared to GSTR-9 for FY 2018-19, with interest and penalty, without a personal hearing - Whether the order passed without a personal hearing is in breach of Section 75(4) - HELD - Section 75(4) makes it mandatory to grant an opportunity of hearing where any adverse decision is contemplated, and an order confirming the demand in the SCN is an adverse order. The hearing is a separate right, and a written reply does not take its place – Further, the defect was not cured in the first appeal, as the FAA did not examine the GSTR-9C, the books or the reconciliation of the Appellant but adopted the figures of the Department - The adjudication order and the order of the FAA cannot be sustained on this ground - Excess availment of ITC on the basis of mismatch between GSTR-3B and GSTR-9 for FY 2018-19 - Burden of proof under Section 155 of the CGST Act, 2017 - Department computed the excess ITC by comparing GSTR-3B, after deducting reverse charge credit said to be reported in Table 4(A)(5), with GSTR-9 - Appellant denied the excess claim, contended that the figures in GSTR-9 were a bona fide mistake and offered its books of account to prove the credit - Whether the finding that the Appellant availed excess ITC is sustainable on the material on record - HELD - The adjudication order suffers from three infirmities, namely that it assumed the reverse charge credit was included in Table 4(A)(5) without verifying the returns, that it recorded an admission of excess credit which the record does not show, and that it rejected the plea of mistake in GSTR-9 without examining the books - A mismatch between two returns is a reason to examine the records and is not by itself proof that credit was availed in excess. Neither Section 44 nor Rule 80 provides for rectification of GSTR-9 once filed, and a genuine and inadvertent error in a return must be recognised as such - The burden of proving the claim to credit lies on the Appellant under Section 155, and it must discharge the burden with its books and invoices, for which the authority should give an opportunity - The orders are set aside and the matter is remanded to the Adjudicating Authority for fresh adjudication confined to the SCN, with the Appellant to produce its books and returns - the demand of tax, interest and penalty stands set aside - The matter is remanded to the Adjudicating Authority for fresh adjudication.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST Adjudication & Appeals Reform
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?