the essay of 26 November 2025 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=utf-8"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399"><font size="2">NOVEMBER 26, 2025 </font></font></strong></font></p> <p align="center"><font color="#FF6633" face="Verdana, Arial, Helvetica, sans-serif" size="2"><strong> Next Hearing: Yesterday</strong></font></p> <p align="center"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong><u>By Vijay Kumar </u></strong></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>A</strong> taxpayer had filed a claim for refund of Rs. 36,61,166/-. The refund was sought on account of ITC on exports of goods and services, without payment of integrated tax. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The refund claim was promptly rejected (as most claims often are) vide Order-in-Original dated 24th January, 2025 by the Assistant Commissioner, CGST. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><em>Refunds are like mirages in the desert - visible in crores but vanish when you reach for them; crores shimmer on the horizon, but the taxpayer only tastes sand. </em></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The ground on which the refund was rejected was that the documentary evidence as also E-way bills, shipping bills and the BRCs which were recorded, were not submitted by the Taxpayer. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The Taxpayer challenged the order dated 24th January, 2025, by way of an appeal to the Joint Commissioner, CGST Appeals-II, Delhi. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">In the appeal, personal hearing notices were issued to the Taxpayer by speed-post. However, it appears that the Taxpayer did not attend the hearings; the reasons for the same are not clear. Subsequently, the Taxpayer received another notice of personal hearing on 01st July, 2025, on the GST portal, where it was stated as under: </font></font></p> <table align="justify" style="width:90%"> <tbody> <tr> <td style="vertical-align:top"> <div align="justify"><strong><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">S. No. </font></font></strong></div> </td> <td style="vertical-align:top"> <div align="justify"><strong><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Particulars </font></font></strong></div> </td> <td style="vertical-align:top"> <div align="justify"><strong><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Details </font></font></strong></div> </td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">1 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Date of Personal Hearing </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">02/07/2025 </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Time of Personal Hearing </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">12:30 PM </font></font></td> </tr> <tr> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">3 </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Place where Personal Hearing will be held. </font></font></td> <td align="justify" style="vertical-align:top"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">PH WERE GIVEN ON 04.03.2025, 12.03.2025, 02.04.2025. NO ONE APPEARED ON GIVEN HEARINGS DATES. THIS NOTICE IS BEING ISSUED DUE TO SYSTEM REQUIREMENT. </font></font></td> </tr> </tbody></table> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Thus, the taxpayer was given Personal Hearing on three dates, 04.03.2025, 12.03.2025 and 02.04.2025, none of which he attended. And on 01st July, 2025, three months after the last proposed hearing, he was given another hearing on the next day, 02/07/2025. He earnestly appeared for the hearing on 02/07/2025 and perhaps had the shock of his life when he was informed that the appeal had already been decided on 30th June, 2025. A copy of the Order-in-Appeal was also served upon the Taxpayer's representative. How could an order be passed on 30th June when the hearing for the appeal was fixed for 2 nd July? </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">It happens!</font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">See the sequence – He was issued a notice on 01/07/2025 that a hearing would take place on 02/07/2025 and on that date he was informed that the order was already passed on 30/06/2025. If the order was already passed on 30/06/2025, what was the need to issue a notice on 01/07/2025 that a hearing would take place on 02/07/2025?</font></font></p> <p align="justify"><img src="https://admin.taxindiaonline.com/UploadedFiles/Customs/CaseLaws/2025/je2511251.JPG" style="height:334px; width:354px"/></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The Joint Commissioner didn't just reject the refund; he rejected the taxpayer's faith in portals. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">It seems there were some more notices issued for personal hearings, in Appeals, dated 17th February, 2025, 5th March, 2025 and 17th March, 2025. These notices were all stated to have been handed over physically to the Taxpayer, along with the copy of the Order-in-Appeal. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Now what should the taxpayer do? He is stuck with an Order-in-Appeal passed before the hearing date. He became a petitioner too and filed a writ Petition in the Delhi High Court. ( <em>A L Exports vs Union of India </em> - <a href="https://taxindiaonline.com/caselaw/todays_case_indirect_tax/details?id=190378&type=caselaw" target="_blank"><strong>2025-TIOL-1855-HC-DEL-GST</strong></a>) </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The taxpayer petitioner's Counsel pleaded that when the hearing notice was issued on 01st July, 2025, for a hearing on 02nd July, 2025, the impugned Order-in-Appeal could not have been passed prior to the same. This clearly shows a serious breach of the principles of natural justice. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The long and short of this case, according to the High Court was that the Petitioner has not been afforded an opportunity of being heard. It has been recently noticed that in such appeals, the hearing notices are not uploaded on the GST portal and are only sent by speed-post. It is also unclear if they are sent through e-mail. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><em>Speed -post notices travel faster than light. But they reach the taxpayer only after the appeal is decided </em>. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><em>Einstein missed this relativity: GST bends time so that hearings follow judgments. </em></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The High Court observed that: </font></font></p> <blockquote><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">1. The Appellate Authority ought to have uploaded the notices for personal hearing on the GST portal. </font></font></p><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">2. It is pertinent to note that, when the first personal hearing notice was uploaded on 01 st July, 2025, the Petitioner diligently appeared before the Appellate Authority on 02nd July, 2025. </font></font></p><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">3. However, unfortunately, the impugned Order-in-Appeal had already been passed by the said date. </font></font></p><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">4. At the time of the uploading of the order, a date is again fixed for personal hearing by a notice that is generated, apparently, due to a system error. </font></font></p><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">5. Some steps ought to be taken by the GST Department to avoid such a situation in future. </font></font></p></blockquote> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><em>The portal, like a mischievous clerk, generated a hearing notice after the curtains had already fallen. </em></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Under these circumstances, the Court was of the opinion that the Petitioner deserves a hearing on merits before the Appellate Authority.</font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Accordingly, the impugned Order-in-Appeal dated 30th June, 2025 was set aside.</font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The Court directed that the appeal against the Order-in-Original may be heard afresh, after providing hearing to the Petitioner.</font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">For the convenience of the learned Appellate authority, the Court also provided the e-mail id and Mobile number of the Taxpayer/Petitioner.</font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><em>The High Court became the appellate authority of last resort for clerical errors masquerading as orders.</em></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">All fine! But against an order of a Joint Commissioner passed before the date of Personal Hearing, should a Taxpayer be forced to approach a busy High Court? The learned Joint Commissioner was certainly aware that the hearing should be before passing the order. It must have been a genuine mistake. But who pays for these mistakes? When the Taxpayer did not appear for the three notices said to have been sent to him, couldn't the Joint Commissioner's office just verify whether the notices were really sent and if they were, whether they reached him. All it needs is to just pick up a phone. Any taxpayer would willingly and fearfully reach the GST office to collect any notice/order. At least the High Court could be spared of hearing such cases. What did the Department gain by this? Not a penny of tax; huge discontent from your taxpayer and needless litigation all around.</font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">And what did the taxpayer gain? He is back to his original state where he is getting a new notice for hearing after spending money, time and efforts to go through the High Court. Is the system meant to disrupt order? What happened to theories like officers are meant to be facilitators and not just enforcers? </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The taxpayer gained nothing but déjà vu; the Department gained nothing but discontent; and the High Court gained one more avoidable file. In this theatre, everyone pays - except the system that wrote the script. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><em>Officers are supposed to be facilitators; they facilitate the High Court's docket. </em></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">The taxpayer pays in time, the Department pays in credibility, and the Court pays in docket space. The system alone collects applause for its chaos. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Remember </font></font></p> <blockquote><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">- Natural justice is not a luxury; it is the cheapest tax compliance tool. </font></font></p><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">- A phone call costs less than a writ petition. </font></font></p><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">- Litigation is the costliest way to fix a clerical error. </font></font></p></blockquote> <p align="justify"><font color="#663399"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">CobWeb at 1000: Chronicling a worried world </font></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Tomorrow, TIOL's flagship column *CobWeb* reaches its 1000th edition. For more than 19 uninterrupted years, our Founder Editor, Shailendra, has written it week after week - without pause, without fail. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">In the early days, it used to be said: </font></font></p> <blockquote><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">"<em>If you want to improve your English, understand world affairs, and crack the IAS, read The Hindu.</em>” </font></font></p></blockquote> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Now, you read The CobWeb. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">It began on 12 October 2006 - a line that still echoes: </font></font></p> <blockquote><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">"<em>Given that even a developed economy like the USA sounds scaringly worried…"</em></font></font></p></blockquote> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Nineteen years later, the USA still worries - and Shailendra still writes. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">A noted lawyer once described CobWeb as the </font></font></p> <blockquote><p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">"<em>CPU of TIOL occupying the monitor."</em></font></font></p></blockquote> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><img src="https://admin.taxindiaonline.com/UploadedFiles/Customs/CaseLaws/2025/je2511252.JPG" style="float:left; height:251px; width:173px"/>A fitting metaphor for a column that has consistently processed the world's anxieties - China's rise, America's dilemmas, India's challenges - and displayed them with clarity and depth. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">This milestone is not about wit or mischief. It is about discipline, endurance, and intellectual seriousness. *CobWeb* has become an archive of global turbulence, a weekly reminder that the world never stops worrying. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Congratulations, Shailendra, on 1000 weeks of high - tension commentary. </font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">May The CobWeb continue to illuminate the shifting equations of China, the US, and the world order for many more hundreds to come. </font></font></p> <p align="justify"> </p> <p align="justify"> </p> <p align="justify"><font color="#ff0000"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif"><strong>Until next week </strong></font></font></font></p> <p align="justify"><font size="2"><font face="Verdana, Arial, Helvetica, sans-serif">Comments/feedback welcome at <a href="mailto:vijaywrite@tiol.in">vijaywrite@tiol.in </a> or 9848111243 (WhatsApp)</font></font></p> </body> </html>