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Statutory Scope
DGFT amends import policy condition of Areca nuts under ITC (HS) 08028010: Notification
FOREIGN TRADE POLICY ?|? CIRCULARS & NOTIFICATIONS
The DGFT has issued notification to amend import policy condition of Areca nuts under ITC (HS) 08028010 and allow import of 17,000 metric tonnes of Fresh (green) Areca Nuts without Minimum Import Price from Bhutan through two another ports namely LCS Hatisar and LCS Darranga.
Key Details:
Statute Number: NOTIFICATION NO. 30/2024-25
Date of Statute: 18-09-2024
Amendment of Circular 07/2024-Customs to further ease the process of publication of automated exchange rate
CUSTOMS ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued circular to amend Circular 07/2024-Customs dated 25th June, 2024 and now it is provided that where a due date, i.e. 1st or 3rd Thursday, falls on a holiday, the last/latest received rates from SBI would be published on ICEGATE website on the 1st or 3rd Thursday itself.
Key Details:
Statute Number: CIRCULAR NO. 17/2024-CUSTOMS
Date of Statute: 18-09-2024
Case Chronicles
No coercive action against assessee if it was already paying GST @ 12% on value of work order under PMGSY: HC
GST ?|? CASE LAW
GST : Where when assessee had executed construction work, GST was charged @ 12% on total value of Work Order, however, GST authority fixed GST to be payable @18% of total value of Work Order, since said issue of additional 6% was still pending before National Rural Infrastructure Development Agency (NRIDA), instant writ petition was to be disposed of without going into merits.
Key Details:
Case Name: Shibesh Kumar Das vs. Joint Commissioner, Commercial Taxes & State GST
Citation: (2024) 22 Centax 286 (Cal.)
Orders passed by CIT(A) in Hindi only is not permissible in State of Andhra Pradesh: HC
GST ?|? CASE LAW
GST : Where English language should continue to be used in addition to Hindi and respondent no.3-commissioner (appeals) had passed appellate order only in Hindi, therefore, writ petitions were disposed of with a direction to respondent no. 3-commissioner (appeals), to furnish copies of orders passed by him in these three writ petitions, in English, to petitioners-assessees.
Key Details:
Case Name: Subodh Enterprises vs. Union of India
Citation: (2024) 22 Centax 287 (A.P.)
HC set-aside cancellation of GST registration as it works against interest of revenue
GST ?|? CASE LAW
GST: Where assessee’s registration cancelled for failure to file returns for continuous period of six months, respondents case was not that assessee had been adopting dubious process to evade tax, suspension/cancellation of registration works against interest of revenue, impugned order was to be set aside subject to conditions.
Key Details:
Case Name: Pranabesh Sarkar vs. Superintendent, CGST & CX
Citation: (2024) 22 Centax 314 (Cal.)
HC set-aside order of cancellation of GST registration as no reasons were disclosed in SCN issued by dept.
GST ?|? CASE LAW
GST: Assessee’s registration cancelled and application for revocation of cancellation also rejected, no particulars of fraud and misstatement or suppression disclosed in show cause notice, no reasons disclosed for cancellation, impugned order vague and non-speaking was to be set aside.
Key Details:
Case Name: Indrajit Roy vs. Superintendent, Barasat Range IV
Citation: (2024) 22 Centax 313 (Cal.)
HC set-asides order passed by AO as notices were only uploaded on GST portal without proper intimation to assessee
GST ?|? CASE LAW
GST: Where notices were only uploaded on GST portal without proper intimation, assessment order set aside for violation of natural justice principles, directing fresh hearing subject to partial deposit.
Key Details:
Case Name: Tvl. Zulaikha Motors Pvt. Ltd. vs. Assistant Commissioner (ST)
Citation: (2024) 22 Centax 315 (Mad.)
HC directs GST authority to return seized items including laptops, CPUs, and mobile phones within 30 days
GST ?|? CASE LAW
GST: Where assessees challenged provisional attachment of bank accounts and sought return of seized assets, Commissioner was directed to provide copies of seized documents/data to assessees and return seized items within statutory time limit, while allowing Commissioner to retain items temporarily if required.
Key Details:
Case Name: Aimlay Pvt. Ltd. vs. Commissioner of Central Tax, Delhi West
Citation: (2024) 22 Centax 306 (Del.)
Interim protection to be given to assessee as notification extending time limit for passing orders is prima facie not valid: HC
GST ?|? CASE LAW
GST: Notification extending time limit under Section 73(9) of CGST Act challenged as ultra vires Section 168A for lack of GST Council recommendation; interim stay granted on coercive action pending final decision.
Key Details:
Case Name: Arunakhel Sports and Events Pvt. Ltd. vs. Union of India
Citation: (2024) 22 Centax 307 (Gau.)
HC remanded matter as cancellation order was passed without considering assessee’s reply to SCN
GST ?|? CASE LAW
GST: GST registration cancellation order passed without proper consideration of assessee’s reply to show cause notice is liable to be set aside for fresh consideration.
Key Details:
Case Name: Arya Cine Entertainment vs. State of U.P.
Citation: (2024) 22 Centax 281 (All.)
HC directs AO to consider assessee’s contentions in light of CBIC circular on time limit for claiming ITC
GST ?|? CASE LAW
GST: Where ITC was denied for belated claim, it was directed reconsideration based on CBIC circular clarifying time limit for ITC availment in reverse charge cases.
Key Details:
Case Name: Bosch Ltd. vs. State of Karnataka
Citation: (2024) 22 Centax 310 (Kar.)
Limitation period for filing appeal against order passed by AO runs from original due date, not extended date
GST ?|? CASE LAW
GST: Where assessee challenged assessment order for Assessment Year 2018-19 on grounds of limitation, interim stay was granted, holding prima facie that three-year limitation period under Section 73(10) of CGST Act begins from original due date of filing annual return, not from extended date.
Key Details:
Case Name: S.S. Enterprises vs. Union of India
Citation: (2024) 22 Centax 285 (Pat.)
HC remanded matter as order failed to provide reasons that attachment of bank a/c was necessary
GST ?|? CASE LAW
GST: Order of provisional attachment of assessee’s properties under section 83 was to be set aside as it failed to provide reasons which weighed with Commissioner to form an opinion, that for purpose of protecting interest of Government of revenue and order of provisional attachment was necessary, which is mandate under section 83(1).
Key Details:
Case Name: Global Tabacc Legacy vs. Union of India
Citation: (2024) 22 Centax 312 (Bom.)
HC directs GST authorities to process cancellation application without delay for pending tax assessment
GST ?|? CASE LAW
GST: Tax authorities must process GST registration cancellation expeditiously upon business cessation, without delay for pending tax assessments, while ensuring proper communication channels.
Key Details:
Case Name: B.R. Enterprises vs. Principal Commissioner of Goods and Service Tax
Citation: (2024) 22 Centax 309 (Del.)
Valuation of goods to be done on basis of exchange rate prevalent on date of presentation of BOE: CESTAT
CUSTOMS ?|? CASE LAW
Customs: Valuation of goods to be done on basis of exchange rate prevalent on date of presentation of Bill of Entry.
Key Details:
Case Name: Rashtriya Chemicals & Fertilizers Ltd. vs. Commissioner of Customs, Bangalore
Citation: (2024) 22 Centax 317 (Tri.-Bang)
Confiscation to be set aside when test report of sample is made applicable to entirety of consignment: CESTAT
CUSTOMS ?|? CASE LAW
Customs: Appeal by Department is dismissed for not being in compliance with threshold qualification in litigation policy of Central Government.
Key Details:
Case Name: Prabhat Steel Traders Pvt. Ltd. vs. Commissioner of Customs (Import)
Citation: (2024) 22 Centax 319 (Tri.-Bom)
Advance Ruling sought on duty drawback was outside ambit and jurisdiction of AAR
CUSTOMS ?|? CASE LAW
CUSTOMS: Advance Ruling can be sought only on questions listed in Section 28(H)(2) of Customs Act, 1962 which do not cover Duly Drawback under Section 75; levy of tax or duties and their refund/drawback are different mechanisms; Advance Ruling sought on duty drawback was outside ambit and jurisdiction of Advance Ruling Authority.
Key Details:
Case Name: In Re: Endress Hauser Flowtec (India) Pvt. Ltd.
Citation: (2024) 22 Centax 322 (A.A.R. - Cus. - Mum.)
Toy guns used by children or adults for entertainment/recreation are classifiable under Tariff Item 9503 00 10: AAR
CUSTOMS ?|? CASE LAW
CUSTOMS: Toy guns, imitations of classic army guns, used by children or adults for entertainment/recreation using harmless spherical gels and plastic pellets, require certification/undertaking under Arms Rules, 2016; battery operated toy guns are classifiable under Tariff Item 9503 0010 as electronic toys; non-battery-operated toy guns are classifiable under Tariff Item 9503 0020; gels and plastic pellets used are parts of toy guns, classifiable under Tariff Item 9503 0099.
Key Details:
Case Name: In Re: Jaiico Transs
Citation: (2024) 22 Centax 323 (A.A.R. - Cus. - Mum.)
Quicklime is classifiable under CTH 2522 1000 when CaO content in quicklime imported is less than 98%: CESTAT
CUSTOMS ?|? CASE LAW
Customs: Quicklime is correctly classification under CTH 2522 1000 when CaO content in quicklime imported is less than 98% i. e. between 92-97% and process carried out by supplier is only Calcination.
Key Details:
Case Name: J K Paper Limited vs. Commissioner of Customs, Ahmedabad
Citation: (2024) 22 Centax 320 (Tri.-Ahmd)
SC dismissed SLP since dismissal of appeal by High Court was on ground of absence of substantive question of law
CUSTOMS ?|? CASE LAW
Customs: Penalty was imposed on MD of importer firm on basis of findings of fact recorded in adjudication order as upheld by CESTAT of his involvement in abetment of duty. Dismissal of appeal by High Court on ground of absence of substantive question of law, sustainable.
Key Details:
Case Name: Pradeep S. Mehta vs. Commissioner of Central Excise
Citation: (2024) 22 Centax 324 (S.C.)
HC directed dept. to consider assessee’s request for amendment in bill of entries to reflect correct duty rate
CUSTOMS ?|? CASE LAW
Customs: Direction to amend the Bill of Entry to reflect correct duty rate, enabling assessee to seek refund of excess duty paid, in line with the Supreme Court's rulings in similar matter.
Key Details:
Case Name: Sony India Pvt. Ltd. vs. Union of India
Citation: (2024) 22 Centax 295 (Guj.)
Refund of SAD paid on imported goods can't be denied due to minor procedural lapse in the invoices: CESTAT
CUSTOMS ?|? CASE LAW
Customs: Refund of SAD paid on imported goods sold subsequently by importer-traders could not be denied on ground that commercial invoices issued by them did not contain declaration of non-availability of credit of such SAD to buyers if Chartered Accountant’s certificates produced by importers indicating that SAD was not passed on to buyers, was not challenged by Revenue.
Key Details:
Case Name: Schneider Electric IT Business India Pvt. Ltd. vs. Commissioner of customs
Citation: (2024) 22 Centax 297 (Tri.-Mad)
SC remands matter to CESTAT for re-consideration on taxability of supply of parts & consumables under annual maintenance contract
EXCISE & SERVICE TAX ?|? CASE LAW
Service Tax: Management, Maintenance or Repair Services - Supply of parts and consumables under annual maintenance contract, whether liable to Service Tax? Apex Court remands matter to CESTAT for re-consideration.
Key Details:
Case Name: C.C.E.-DGCEI Adjudication Cell vs. Redington India Ltd.
Citation: (2024) 22 Centax 326 (S.C.)
Clearances of Decentralized Mother Units could not be clubbed to deny SSI exemption: CESTAT
EXCISE & SERVICE TAX ?|? CASE LAW
Excise: In absence of assessee’s shareholding investment, loans, payments for raw materials, labours/other expenses and accounted/unaccounted transfer of funds/profits to Decentralized Mother Units (DMUs) and vice-versa, there was no financial flowback from DMUs to assessee due to production cost reduction by cheaper raw materials procurement, free moulds supply, and other mutual efforts benefitting both assessee and DMUs; hence, clearances of assessee and DMUs could not be clubbed to deny SSI.
Key Details:
Case Name: Sepack India Pvt. Ltd. vs. Commissioner of Central Excise, Customs and Service Tax, Cochin
Citation: (2024) 22 Centax 327 (Tri.-Bang)
SC dismissed SLP against order of HC directing petitioner to surrender within one week to serve his sentence
EXCISE & SERVICE TAX ?|? CASE LAW
Cr.P.C.: Criminal offence - Convicted petitioner was directed to surrender before Trial Court to serve his sentence as no order exempting him from surrendering or suspending his sentence had been passed in proceedings before High Court.
Key Details:
Case Name: P. Baskar Naidu vs. Assistant Commissioner of Customs
Citation: (2024) 22 Centax 354 (S.C.)
Legal Beacon
GST on Health Care Services
GST ?|? OPINION ?|? (2024) 22 Centax 350 (Article)
Since inception of GST, we have witnessed major notices on the subject which is visible as a part of data analytics of the department. And if we think that litigation is on a full swing (based on such notices), we might be surprised on next big things coming up, that too on invisible subjects.
Author
CA Sagar V. Shah
FCA, ISA (ICAI), M.Com, Sagar V. Shah & Associates
Validity of Seizure of Cash Under GST Law
GST ?|? OPINION ?|? (2024) 22 Centax 351 (Article)
Search and seizure provisions contained in tax statutes are provided to act as a restraint on evasion of taxes. Such powers are within the constitutional frame work and cannot be considered as violative of Article 19 of Constitution of India.
Author
Dr. Sanjiv Agarwal
FCA, FCS, D.Litt.
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