2026-VIL-279-GSTAT-AGR
  1. Home
  2. 2026-VIL-279-GSTAT-AGR

SGST Tribunal

GST - Determination of suppressed outward supplies on the basis of entries in diaries seized during inspection by the Special Investigation Branch - Adjudicating Authority treated transactions recorded in seized diaries as unaccounted outward supplies and imposed tax with equal penalty - FAA reduced the suppressed turnover and sustained a smaller tax and penalty after accepting the explanation in respect of 85 B2B invoices produced at the appellate stage and part of the hand pumps - Revenue contended that the invoices were an afterthought and that the explanation of the Respondent-taxpayer was accepted without verification - Whether the entries in the seized diaries establish suppressed outward supplies and whether the orders contain adequate findings and reasoned analysis - HELD - A finding of suppressed turnover must be founded on clear identification and examination of the relevant transactions and supporting material. An inference of suppression cannot be sustained merely on an aggregate figure without a demonstrable factual basis for its computation - The Adjudicating Authority did not identify the entries relied upon, the basis on which the alleged sale of hand pumps was quantified or the reasons for rejecting the explanation, and the absence of regular books at the premises does not dispense with the requirement of establishing the suppressed turnover. The mere non-production of invoices during investigation does not conclusively establish suppression, nor can the subsequent production of invoices and the assertion of disclosure in GSTR-1 be accepted without verification - The FAA also did not identify the entries found unverifiable or provide a computation of the reduced turnover. A quasi-judicial order must disclose the material considered, the reasoning adopted and the basis of the conclusions - The orders of the Adjudicating Authority and the FAA are set aside, the appeal of the Revenue is partly allowed and the matter is remanded for fresh adjudication with entry-wise examination, reconciliation with the books and returns, verification of the invoices - The Revenue appeal is partly allowed
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?