2020 (10) TMI 803 - HC - GST

COVID-19 delays impact tax appeal, Assessee warned against non-cooperation

The Additional Director General, The Senior Intelligence Officer Versus Prime Gold International Limited, The Branch Manager, M/s. Prime Gold International Limited, Assistant Commissioner (ST) Hosur (South).

The Court upheld the Single Judge's directions in the Writ Appeals filed by the Revenue against the Assessee. The time frame for issuing the show cause ... Refund of GST - lifting of attachment - section 83 of CGST Act, 2017 - refund rejected in view of the proceedings being pending with the concerned Authority and not concluded so far - HELD THAT:- No significant interference is required in the directions given by the learned Single Judge, except for extending the time limit to comply with the directions given by the learned Single Judge and setting a new time frame for the said purpose. It goes without saying that the Assessee is bound to cooperate and present himself before the concerned competent Authority, whenever he is summoned for any enquiry in the matter. Of course, it is expected that the concerned Authority also was expected to comply with the directions of the learned Single Judge and issue the show cause notice within a period of two weeks from the date of the order of the learned Single Judge viz., 06.01.2020 - However, since that could not be done for some reasons beyond the control of either of the parties and a fresh attachment order has been made on 28.03.2020, the concerned show cause notice should be issued now by the competent Revenue Authority latest within a period of three months from today. This will be conditional upon the Assessee fully cooperating in the matter. The first respondent / Assessee is directed to appear before the concerned Authority in the first instance on 02.11.2020 and present himself with the relevant materials, information, submissions, on all such dates, when he is summoned by the concerned Authority - petition disposed off. Issues:1. Appeal against order disposing of writ petitions by the Assessee.2. Delay in issuing show cause notice due to overriding circumstances, including COVID-19.3. Lack of cooperation by the Assessee in presenting for verification.4. Dispute regarding the completion of imaging of data for the show cause notice.5. Extension of time limit for compliance with directions given by the Single Judge.6. Assessee's assurance of cooperation with the Authority.7. Setting a new time frame for issuing show cause notice and concluding assessment proceedings.Analysis:1. The Writ Appeals were filed by the Revenue challenging the order disposing of the Writ Petitions filed by the Assessee. The Single Judge had directed the issuance of a show cause notice within a stipulated time frame under the Central Goods and Service Tax Act, 2017. The request for a refund of &8377; 2.10 Crores by the Assessee was not accepted due to pending proceedings.2. The Revenue cited various overriding circumstances, including the global spread of COVID-19, as reasons for the delay in concluding the proceedings and issuing the expected show cause notice within the specified two weeks. The inability to comply with the Single Judge's directions was attributed to these unforeseen events.3. The Additional Solicitor General representing the Revenue alleged that the Assessee was uncooperative and failed to present for the verification of preliminary materials collected by the Authority, which was deemed necessary for the proceedings.4. On the other hand, the Assessee's counsel highlighted an affidavit stating that the imaging of data was completed in March 2020, but the show cause notice had not been issued by the Revenue Authority. The Assessee argued for the dismissal of the Revenue's appeals due to the delay in issuing the notice.5. The Court decided that no significant interference was needed in the Single Judge's directions but extended the time limit for compliance. The Assessee was instructed to cooperate with the Authority, and a new time frame of three months was set for issuing the show cause notice, conditional upon the Assessee's cooperation.6. The Assessee's counsel assured the Court of the Assessee's cooperation and commitment to working with the Authority in the pending proceedings.7. The Court directed the Assessee to appear before the Authority on a specified date and cooperate throughout the process. A time frame of three months was set for concluding the assessment proceedings, with a warning that no further extensions would be granted to the Revenue Department beyond this period unless justified by the Assessee's non-cooperation. The Assessing Authority was also instructed to act diligently and fairly.In conclusion, the Writ Appeals were disposed of with new directions and time frames for the proceedings, emphasizing cooperation and timely action from both parties involved.