2026 (4) TMI 1049

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed Senior Standing Counsel for Central Board of Indirect Taxes and Customs, appears for respondents No. 1 to 3. 2. The writ petition has been filed with the following prayer: "For the reasons stated above, it is prayed that this Hon'ble Court may be pleased to issue a Writ, Order or direction particularly one in the nature of a WRIT OF CERTIORARI or any other appropriate writ (i) setting aside/quashing the Order-in-Original No. 25/2025-26-SecAdjn-ADC(GST) dated 20.11.2025 passed by the Respondent No. 1 under Section 74 of the CGST Act read with Section 20 of the IGST Act, for the F.Y.2018-19 to 2023-24 to the extent of confirming a demand of Rs. 7,02,03,972/- along with interest and a penalty of Rs. 7,02,03,972/- as without juri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Form GST ADT-01 by the Assistant Commissioner (Audit) proposing to conduct the audit at the place of the business of the petitioner directing the petitioner to produce books of accounts and records for the financial years 2022-2023 to 2023-2024. A spot memo dated 07.03.2025 was issued stating the discrepancies observed during the GST audit. An intimation in DRC-01A was issued on 20.06.2025 alleging short payment of GST on account of wrong classification of services and asking the petitioner to pay an amount of Rs. 9,28,08,432/- along with interest and penalty or to submit its submissions against the ascertainment of demand. The petitioner replied thereto stating that there is no misclassification of services. The applicable GST has been co....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vider on a principal to principal basis. It placed reliance on Circular No. 197/7/2016-Service Tax dated 12.08.2016 issued under the service tax regime and also submitted additional documents. The petitioner also filed written submissions on 10.10.2025 with certain additional documents. However, respondent No. 1 - proper officer, has passed the impugned order-in-original dated 20.11.2025 setting aside the demand of Rs. 2,26,04,460/- while confirming the demand of Rs. 7,02,03,972/- as tax not paid/short paid with reference to the activity of buying and selling of cargo space on principal to principal basis and services ancillary on account of misclassifying the 'support services in Transport HSN 9967' as 'services by way of transportation of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r the proper entry of the GST notification. He further submits that the reply submitted by the petitioner against the charges raised in the show cause notice has been elaborately discussed and analysed by the proper officer. In fact, the proper officer has accepted the contention of the petitioner so far as the demand of Rs. 2,26,04,460/- is concerned and dropped it. However, after detailed analysis and taking into note that the petitioner provides a bouquet of services which are not only confined to transportation on principal to principal basis, but principal to consumer basis also, the proper officer has rightly held that the petitioner had indulged in misclassification of services to evade tax fraudulently. It is submitted that the plea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d the sample sale invoices as discussed therein, it was observed that the taxpayer has provided support services by way of transporting goods to their customers through Air Freight/Ocean Freight. Further, the taxpayer has discharged GST @ 5% in respect of 'Ocean Freight Inward' by claiming the concessional rate of tax under Sl.No.9(ii) of the Notifications No. 08/2017-IGST (Rate) dated 28.06.2017 and at Nil rate of tax for 'Ocean Freight Outward' and 'Air Freight' by claiming the concessional rate of tax under Sl.Nos.20, 20A and 20B of Notification No. 09/2017 - IGST(Rate) dated 28.06.2017. At paragraph 15.3.4 of the impugned order-in-original, the proper officer has held that the value of duty credit scrip amounting to Rs. 10,47,41,194/- i....