Centaxonline’s Tax Gazette
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Statutory Scope
0.1% Compensation Cess shall be levied on supplies to merchant exporters: Notification
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued notification to provide that the compensation cess shall be reduced to 0.1% on supplies made to merchant exporters, subject to fulfilment of certain conditions.
Key Details:
Statute Number: NOTIFICATION NO. 01/2025-COMPENSATION CESS (RATE)
Date of Statute: 16-01-2025
All Old and used Vehicles shall be taxable at 18% on margin value: Notification
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued notification to provide that 18% GST shall be levied on margin of sale of all old and used vehicles if the supplier of such goods has not availed input tax credit.
Key Details:
Statute Number: NOTIFICATION NO. 04/2025-CENTRAL TAX (RATE)
Date of Statute: 16-01-2025
Definition of specified premises substituted; actual value of supply of hotel to be considered: Notification
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued notification to amend the definition of specified premises (from the services rate and exemption notifications) to link it with actual value of supply of any unit of accommodation provided by the hotel and to make the rate of GST applicable on restaurant services in such hotels, for a given financial year, dependent upon the ‘value of supply’ of units of accommodation made in the preceding financial year.
Key Details:
Statute Number: NOTIFICATION NO. 05/2025- CENTRAL TAX (RATE)
Date of Statute: 16-01-2025
Contributions from third-party motor premiums by insurers to motor vehicle accident fund exempted from GST: Notification
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued notification to provide that no GST shall be levied on services of insurance provided by the Motor Vehicle Accident Fund against contributions made by insurers out of the premiums collected for third party insurance of motor vehicles.
Key Details:
Statute Number: NOTIFICATION NO. 06/2025- CENTRAL TAX (RATE)
Date of Statute: 16-01-2025
Food inputs of food preparations for free distribution to economically weaker sections are taxable at 5%: Notification
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued notification to provide that 5% GST shall be levied on food inputs of food preparations under HSN 19 or 21 that are supplied for food preparations intended for free distribution to economically weaker sections under a government program subject to the existing conditions.
Key Details:
Statute Number: NOTIFICATION NO. 03/2025- CENTRAL TAX (RATE)
Date of Statute: 16-01-2025
No GST shall be levied on gene therapy: Notification
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued notification to provide that no GST shall be levied on gene therapy and it would be exempt with immediate effect.
Key Details:
Statute Number: NOTIFICATION NO. 02/2025- CENTRAL TAX (RATE)
Date of Statute: 16-01-2025
CBIC brings sponsorship services provided by the body corporates under Forward Charge
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued a notification to amend RCM Notification No. 13/2017-Central Tax (Rate) and now sponsorship services provided by the body corporates would be under Forward Charge Mechanism. Also, taxpayers registered under composition levy scheme are excluded to pay GST under RCM on renting of any commercial/ immovable property (other than residential dwelling).
Key Details:
Statute Number: NOTIFICATION NO. 07/2025-CENTRAL TAX (RATE)
Date of Statute: 16-01-2025
Case Chronicle
Order cancelling registration to be set aside due to SCN lacking separate dates for reply and personal hearing: HC
GST ?|? CASE LAW
GST: Where in show cause notice issued to assessee proposing to cancel registration on grounds of non-filing of return for three consecutive periods, no separate dates for filing reply and personal hearing were mentioned, such order suffered from violation of principles of natural justice and same was to be quashed.
Key Details:
Case Name: Aditi Agri Junction vs. State of U.P.
Citation: (2024) 25 Centax 424 (All.)
Authority to consider revocation application if assessee deposits full outstanding dues including tax, interest and penalty: HC
GST ?|? CASE LAW
GST: Where registration of assessee was cancelled, if assessee deposited entire outstanding dues of tax including interest and penalty, and submitted an application for reversal of cancellation of registration within one week, competent authority was to consider application of assessee and pass an appropriate order as per law.
Key Details:
Case Name: Anuj Kumar Verma vs. Superintendent, Central Goods and Services Tax
Citation: (2025) 26 Centax 107 (Uttarakhand)
Matter remanded as order was passed without giving assessee opportunity for hearing: HC
GST ?|? CASE LAW
GST: Where notice was issued to assessee who had availed ITC by mistake and assessee filed reply stating that mistake was bonafide and sought personal hearing, however order in original was passed without giving any opportunity of hearing to assessee, order in original was to be set aside and matter was to be remanded to pass fresh order.
Key Details:
Case Name: Prakash Iron Store vs. State of U.P.
Citation: (2024) 25 Centax 407 (All.)
Order to be set aside as no opportunity for hearing was granted to assessee before passing order: HC
GST ?|? CASE LAW
GST: Where an order was passed under section 73 in case of assessee without granting an opportunity of hearing, said issue being settled in case of Atlas Cycles Haryana Ltd. v. State of U.P. [2024] 159 taxmann.com 718 (Allahabad), order passed under section 73 was to be set aside and matter was to be remanded.
Key Details:
Case Name: Rizvi Medical Agency vs. State of U.P.
Citation: (2024) 25 Centax 408 (All.)
Order of cancellation of registration to be set aside due to lack of specific findings on material used against assessee: HC
GST ?|? CASE LAW
GST: Where none of conditions stipulated under section 29(2)(a) to (e) were shown to be violated by assessee nor assessee was confronted with any material on basis of which registration could be cancelled, order of cancellation of registration was not sustainable.
Key Details:
Case Name: Shree Shyamji Traders vs. State of U.P.
Citation: (2024) 25 Centax 409 (All.)
Limitation period for filing appeal starts from date of knowledge of order by assessee; not from date of order: HC
GST ?|? CASE LAW
GST: Period of limitation for filing appeal was to be reckoned from date of knowledge of order and not from date of passing of order alone.
Key Details:
Case Name: Steel Kart vs. State of Haryana
Citation: (2024) 25 Centax 411 (P&H.)
GST registration to be restored as assessee paid all dues and agreed to pay any other dues including penalties: HC
GST ?|? CASE LAW
GST: Where assessee’s registration was cancelled for not filing returns, assessee after cancellation of its registration paid all revenue due and further agreed to pay any revenue due for restoring its registration and relied on judgement of Calcutta High Court dated 9-4-2024, impugned orders were to be set aside and respondent authority was to be directed to restore assessee’s registration.
Key Details:
Case Name: Subrata Chakraborty vs. Union of India
Citation: (2024) 25 Centax 412 (Cal.)
HC condoned GST appeal delay due to assessee's lack of portal access as returns were filed by part-time accountant
GST ?|? CASE LAW
GST: Delay in filing GST appeal condoned where assessee lacked portal access as returns were filed through part-time accountant, matter remanded for hearing on merits.
Key Details:
Case Name: Tvl Ponnusamy vs. Deputy Commissioner (ST) (FAC)
Citation: (2024) 25 Centax 415 (Mad.)
Order to be set aside as no personal hearing was granted to assessee before passing adjudication order: HC
GST ?|? CASE LAW
GST: Adjudicating order issued by revenue without providing opportunity of hearing leads to violation of natural justice, thus order passed by revenue without providing opportunity of hearing to assessee could not be sustained and same was to be set aside.
Key Details:
Case Name: Soumyendu Bikash Jana vs. Union of India
Citation: (2024) 25 Centax 394 (Cal.)
Writ dismissed as non-consideration of some documents did not breach natural justice: HC
GST ?|? CASE LAW
GST: Alleged non-consideration of some of documents by Adjudicating Authority could not be considered a complete breach of principles of natural justice; matters were to be examined by Appellate Authority.
Key Details:
Case Name: Trade Concepts Corporation vs. State of Maharashtra
Citation: (2024) 25 Centax 351 (Bom.)
Writ dismissed as assessee could challenge notification extending limitation for passing final order through alternative remedy of appeal: HC
GST ?|? CASE LAW
GST: Where assessee impugned orders in original and Notification No. 9 of 2023-Central Tax, dated 31-3-2023, purporting to extend limitation for passing final order in respect of Assessment Year 2017-18, assessee had alternate remedy of appeal, if assessee succeed, there would be no occasion to challenge impugned Notification, if statutory remedies fail, assessee could challenge impugned notification, petitioner was to be relegated to alternate remedy of appeal.
Key Details:
Case Name: Alkem Laboratories Ltd. vs. Joint Commissioner of CGST and Central Excise
Citation: (2024) 25 Centax 368 (Bom.)
Assessee was directed to deposit 10% of disputed tax instead of 3 lakh for filing appeal as order was to be modified in intra-court appeal: HC
GST ?|? CASE LAW
GST: Where writ petition of assessee was allowed by single judge directing assessee to pre-deposit Rs. 3 lakhs, which was over and above statutory amount of 10 percent, such order was to be modified in intra-court appeal and assessee was to be directed to deposit only 10 percent of disputed tax amount for preferring appeal.
Key Details:
Case Name: Shaikh Sons & Co. vs. Union of India
Citation: (2024) 25 Centax 377 (Cal.)
Negative blocking of ECL is permissible as it is within the provisions of Rule 86A of CGST Rules: HC
GST ?|? CASE LAW
GST: Where assessees ECL had been blocked without availability of any credit, available credit already utilised by assessee, negative blocking of credit within provisions of Rule 86A of CGST Rules was permissible.
Key Details:
Case Name: Tvl. Skanthaguru Innovations Pvt. Ltd. vs. Commercial Tax Officer
Citation: (2024) 25 Centax 379 (Mad.)
Menthol scented supari obtained from betel nut didn't change character of raw betel nut; to be classified under CTH 0802 8090: AAR
CUSTOMS ?|? CASE LAW
Customs : Menthol scented supari obtain from betel nut by dehydrating, removal of impurities, cutting, sterilization, roasting and addition of flavours, for cleaning, enhancing preservation, appearance, or presentation, did not change character of raw betel nut for their classification under Heading 0802 not under Tariff Item 2106 9030.
Key Details:
Case Name: In re : Lujee International Company Ltd.
Citation: (2025) 26 Centax 237 (A.A.R. - Cus. - Del.)
Value of new service spares exported to India under Service Support Operations can be determined by application of Rule 9: AAR
CUSTOMS ?|? CASE LAW
Customs : Value of New service spares exported to India, for purposes of free-of-charge replacement of defective parts/goods under its Service Support Operations (SSO) can be determined most suitably by application of Rule 9 of Customs Valuation Rules under Residual method.
Key Details:
Case Name: In re : Arista Networks Ltd.
Citation: (2025) 26 Centax 236 (A.A.R. - Cus. - Del.)
Thermal insulation work qualifies as works contract service if VAT/sales tax is paid on goods used: CESTAT
EXCISE & SERVICE TAX ?|? CASE LAW
ST : Where assessee provided thermal insulation services and paid VAT/sales tax on goods used, CESTAT allowed their appeal holding that such services qualify as “works contract service” under Section 65(105)(zzzza) of Finance Act, 1994, following its earlier order in assessee’s own case.
Key Details:
Case Name: Rudra Engineering vs. Commissioner of Central Excise & ST, Vadodara-I
Citation: (2025) 26 Centax 174 (Tri.-Ahmd)
Denial of Cenvat credit refund was not sustainable as assessee was entitled to refund of credit in cash terms: CESTAT
EXCISE & SERVICE TAX ?|? CASE LAW
Excise : Refund of unutilized Cenvat credit, which had arisen on account of upward revision as per revised ER-1 return in pre-GST period but same could not be transitioned in Form GST TRAN–1 in GST regime, was admissible in cash in terms of Section 142(9)(b) of Central Goods and Services Tax Act, 2017.
Key Details:
Case Name: Lupin Ltd. vs. Commissioner of GST & Central Tax, Aurangabad
Citation: (2025) 26 Centax 192 (Tri.-Bom)
No excise duty is applicable on mere repacking and relabeling of goods if they are already packed and duty has been paid: SC
EXCISE & SERVICE TAX ?|? CASE LAW
Excise : Activity of putting hologram to avoid duplication and outer wrapping for ease of transport on duty paid Herbal and Cosmetic goods did not amount to manufacturer. Since appellant was only a trader and not a manufacture and had not undertaken any excisable activity of value addition, provision of Section 4 of Central Excise Act was not applicable.
Key Details:
Case Name: Commissioner of Central Excise, Indore vs. WWS Sky Shop (P) Ltd.
Citation: (2024) 25 Centax 390 (S.C.)
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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