TaxTMI 
TaxTMI 
2026 (9) TMI 1655
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.... notice in Form GST ASMT-10 dated 30.03.2022 and reminders dated 12.06.2022, 24.06.2022, and 20.09.2022. However, no reply was submitted by the appellant within the prescribed period. Thereafter, he issued intimation in Form DRC-01A. On 27.09.2023 the assessing officer issued show cause notice in Form DRC-01 also. The assessing officer assessed the turnover Rs. 3,51,68,888/- and levied 18% tax and under Section 50(1) of the GST Act, levied interest and penalty and issued Demand Order in Form DRC-07 as under: Act Tax Interest Penalty Other IGST 0 0 0 0 CGST 31,65,020 31,31,029 3,16,502 0 SGST 31,65,020 31,31,029 3,16,502 0 CESS 0 0 0 0 Aggrieved by the aforesaid order, the appellant preferred a first appeal, which was dismissed as stated above. 3. The main grounds of appeal are that the assessing officer did not consider the reply of SCN and not given personal hearing also therefore the principals of natural justice has been violated. The appellant filed detail return submission on 03.11.2023 (screen shot attached for evidence of submission of reply). U/s 74-(4) GST Act, personal hearing must be given t....
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....icial decisions relied upon by the Appellant are distinguishable on facts and are, therefore, not applicable to the present case. According to the Respondent, the certificates relied upon in those cases were duly supported by contemporaneous documentary records, whereas, in the present case, no such supporting evidence has been produced by the Appellant. The Respondent has further submitted that the reconciliation of an amount of Rs. 3,51,62,835/-, claimed by the Appellant as exempted interest income under Entry No. 27 of Notification No. 12/2017 dated 28.06.2017, is not supported by any documentary evidence. The case of the Appellant is that the said amount represents adjustments on account of "Clawback Interest Reversal - NPA", "EIS Interest Reversal on Securitisation Transactions", "Interest Reversal for Value-Dated Transactions" and "Provision for Interest Accrued on NACH Cheque Bounce Cases". According to respondent:- (i) Such reversals of interest income in the books of account are, by their very nature, books adjustment and do not, ipso facto, represent "consideration for extending deposits, loans or advances" so as to fall within the scope of Entry 27 of notific....
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....ONCLUSION On question of law no-1 8. The extract of the notification no-12 dt. 28.06.2017 as under:- (TO BE PUBLISHED IN THE GAZZTE OF INDIA EXTRAORDENARY, PART II, SECTION 3 SUB-SECTION (i)) Government of India Ministry Of Finance (Department of Revenue) Notification No. 12/2017-Central Tax (Rate) New Delhi, the 28th June 2017 G.S.R....... (E). - In exercise of the powers conferred by sub section(1) of section 11 of the Central Goods and Service Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the council, hereby exempt the intra-state supply of service of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section(1) of section-9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:- 27 Heading 9971 Service by way of- (a) Extending dep....
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....ficate, the Chartered Accountant stated that various documents had been examined. However, the certificate does not disclose the findings or conclusions arrived at upon examination of those documents, nor does it specify the documentary basis on which the appellant's claim was verified. Therefore, the said certificate does not assist the appellant in establishing that the amount in question relates to interest income or to the other transactions claimed by him. 13. The Appellate Authority, in paragraph 6(4) of the order-in-appeal dated 21.03.2025, observed that the appellant had failed to furnish documentary evidence in support of his claim regarding income from interest. Although the appellant produced a consolidated audit report, he failed to furnish any specific documentary evidence substantiating the amounts claimed under the heads "claw-back interest," "EIS interest," "interest reversal," and "NACL cheque bounce cases." Consequently, the consolidated audit report, in the absence of supporting documentary evidence relating to the aforesaid items, was insufficient to establish the appellant's claim. 14. The learned CA appearing on behalf of appellant makes a submission tha....