Centaxonline’s Tax Gazette
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Centaxonline’s Tax Gazette

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Welcome to Centaxonline's Tax Gazette – Where Complexity Meets Clarity.

Today, we draw the definitive line between being informed and uninformed, empowering you with the latest and most essential tax insights.

Statutory Scope

CBIC prescribed revised monetary limits for SCN in Central Excise for commodities classified under Chapter 24

EXCISE & SERVICE TAX ?|? CIRCULARS & NOTIFICATIONS

The CBIC has issued circular to prescribe revised monetary limits for adjudication of SCN in Central Excise for commodities classified under Chapter 24 of Schedule IV of Central Excise Act, 1944.

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Key Details:

Statute Number: CIRCULAR NO. 1086/01/2024-CX
Date of Statute: 03-07-2024

Case Chronicles

Matter to be remanded since SCN was uploaded in wrong tab and not communicated to petitioner through any other mode: HC

GST ?|? CASE LAW

GST: Where petitioner was unaware of proceedings culminating in impugned order for tax proposal pertaining to mismatch between GSTR-3B returns and auto-populated GSTR-2A as notice and impugned order were uploaded in "ViewAdditionalNotices and Orders" tab on GST portal and not communicated to petitioner through any other mode, petitioner was to be provided an opportunity to contest tax demand on merits and therefore, impugned order was to be set aside and matter was to be remanded for reconsider.

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Key Details:

Case Name: Quantum Associates vs. Deputy State Tax Officer
Citation: (2024) 20 Centax 72 (Mad.)

Matter to be remanded on issue of classification of PPSB bed sheets and refund of accumulated ITC: HC

GST ?|? CASE LAW

GST: Where Appellate Authority had denied refund of accumulated ITC on account of inverted tax structure by classifying spunbonded polypropylene bed sheets underChapter Heading 5603 instead of Chapter Heading 6304 of Customs Tariff Act, 1975 without examining common parlance test and processes undertaken on non-woven fabrics, matter was remanded to it for fresh decision on issue of classification and refund claim.

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Key Details:

Case Name: Harsh Polyfabric Pvt. Ltd. vs. Union of India
Citation: (2024) 20 Centax 60 (Cal.)

HC dismissed writ as assessee rushed to court to challenge SCN without availing opportunity to submit explanation

GST ?|? CASE LAW

GST: Writ petition challenging show cause notice without exhausting available remedies may be dismissed as not maintainable at show cause notice stage.

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Key Details:

Case Name: Shree Renuka Sugars Ltd. vs. Joint Commissioner, Central GST and Central Excise
Citation: (2024) 20 Centax 66 (Kar.)

HC set-aside order as assessee wasn’t monitoring GST portal after cancellation of registration

GST ?|? CASE LAW

GST: Where petitioner-assessee did not monitor GST portal in view of cancellation of GST registration and petitioner-assessee agreed to remit 10% of disputed tax demand as a condition for remand, therefore, impugned assessment order was to be set-aside.

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Key Details:

Case Name: Venew Decors vs. Deputy State Tax Officer-II
Citation: (2024) 20 Centax 69 (Mad.)

No time limit for issuance of SCN if goods were already provisionally released under Customs Act: HC

CUSTOMS ?|? CASE LAW

Customs: Where imported goods were seized alleging undervaluation and ordered to be released provisionally with certain conditions by adjudicating authority, same could not be allowed to be released unconditionally by CESTAT on ground that no show cause notice proposing confiscation of such goods was issued within six months from date of seizure.

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Key Details:

Case Name: Commissioner of Customs (Port) vs. Credence International
Citation: (2024) 20 Centax 57 (Cal.)

Refund claim can’t be rejected on limitation grounds without proving that order-in-original was communicated to assessee: CESTAT

CUSTOMS ?|? CASE LAW

Customs: Order denying refund of EDD set aside on Department's failure to prove timely communication of finalisation of bills of entry and as order was passed in violation of natural justice and without evidence.

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Key Details:

Case Name: Doowon Electronics India Pvt. Ltd. vs. Commissioner of Customs
Citation: (2024) 20 Centax 58 (Tri.-Mad)

HC denied to interfere with CESTAT order quashing duty demand under Section 3A based on undisputed facts

EXCISE & SERVICE TAX ?|? CASE LAW

Excise: Where assesse was manufacturing alloy and non-alloy steel products and paid Central Excise duty under Section 3 instead of Section 3A of Central Excise Act, 1944 with permission from Commissioner which was not reviewed or withdrawn, such payment could not be faulted and duty demand raised under Section 3A could not be sustained.

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Key Details:

Case Name: Commissioner of CGST and CX vs. Beekay Steel Industries Ltd.
Citation: (2024) 20 Centax 55 (Cal.)

CESTAT dismissed Revenue's appeal due to low monetary limit against credit allowed on steel items used in fabrication

EXCISE & SERVICE TAX ?|? CASE LAW

Excise: Assessee held entitled to Cenvat credit for steel items used in fabrication of plant and machinery as certified by Chartered Engineer, with no penalty imposed and Revenue's appeal dismissed due to low monetary limit.

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Key Details:

Case Name: Commissioner of Central Excise, Customs and Service Tax vs. Viraj Steel and Energy Ltd.
Citation: (2024) 20 Centax 53 (Tri.-Cal)

No service tax on renting out property exclusively for guest rooms and related activities: CESTAT

EXCISE & SERVICE TAX ?|? CASE LAW

ST: Levy of service tax not applicable on building rented out for purposes of accommodation, including hotels and hostels, and lease deed specifies exclusive use for guest rooms and related facilities.

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Key Details:

Case Name: Rattha Holding Company Pvt. Ltd. vs. Commissioner of GST and Central Excise
Citation: (2024) 20 Centax 52 (Tri.-Mad)

As we conclude this issue of Tax Gazette, we hope you've gained clarity and insights on the critical legal and tax matters that shape our world. Remember, with Centaxonline. You're not just informed. You're insightfully empowered.

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