Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
The dominant issues were whether the adjudication confirming GST demand was vitiated by (i) denial of a statutorily mandated personal hearing under Section 75(4) and (ii) lack of jurisdiction under Section 75(7) in confirming demand beyond the show cause notice. The authority held that once a personal hearing is specifically requested, Section 75(4) imposes a mandatory duty to grant it; passing an ex parte order despite such request is a fatal breach of natural justice and cannot be cured by later merits review, rendering the order unsustainable. It further held that any final demand exceeding the amount proposed in the show cause notice is ultra vires under Section 75(7), vitiating the order. The adjudication and appellate orders were quashed and the matter remanded. - HC
The dominant issues were whether the adjudication confirming GST demand was vitiated by (i) denial of a statutorily mandated personal hearing under Section 75(4) and (ii) lack of jurisdiction under Section 75(7) in confirming demand beyond the show cause notice. The authority held that once a personal hearing is specifically requested, Section 75(4) imposes a mandatory duty to grant it; passing an ex parte order despite such request is a fatal breach of natural justice and cannot be cured by later merits review, rendering the order unsustainable. It further held that any final demand exceeding the amount proposed in the show cause notice is ultra vires under Section 75(7), vitiating the order. The adjudication and appellate orders were quashed and the matter remanded. - HC
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