GST Update Desk of CA. Praveen Sharma GST

Desk of CA. Praveen Sharma – 1107  Series (CAPS) 

 Madras High Court IN THE Case OF  Sheik Dawood v. Additional Commissioner of GST and Central Excise

Cross-Examination Required When Third-Party Statements Form the Basis of GST Findings

Outcome: In favour of appellants.

Dispute: The assessment concerned alleged fictitious transactions and wrongful ITC claims.

Third-party evidence: Authorities relied on statements of Joseph Selvaraj and Joseph Selvaraj Alexander.

Coercion alleged: The appellants claimed that the adverse statements were obtained through threats and coercion.

Repeated requests: Cross-examination was sought in the reply and during the personal hearing.

Request refused: The assessing officer denied cross-examination while relying extensively on those statements.

Right not absolute: The Court clarified that cross-examination need not be permitted in every assessment.

Reliance makes it necessary: When statements are treated as credible and materially support adverse findings, an opportunity to test them must be provided.

Orders set aside: The Division Bench set aside both the Single Judge’s order and the assessment order.

Fresh assessment: Cross-examination of both individuals must be allowed, followed by assessment within eight weeks of receiving the judgment.

Merits remain open: ITC eligibility was not finally decided; non-cooperation permits the authority to proceed according to law

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Best Regards,

CA Praveen Sharma

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