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

DGFT invites suggestions on Draft Amendments in Appendix-4J of the Handbook of Procedures, 2023

FOREIGN TRADE POLICY ?|? CIRCULARS & NOTIFICATIONS

The DGFT invites suggestions on Draft Amendments regarding Export Obligation Period with pre-import condition from the date of clearance of each import consignment by Customs Authority in the existing entries under Appendix-4J of the Handbook of Procedures, 2023.

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Key Details:

Statute Number: TRADE NOTICE 06/2024-25
Date of Statute: 18-06-2024

Case Chronicles

HC remanded matter as tax liability was computed on best judgment basis without hearing assessee

GST ?|? CASE LAW

GST: Where tax liability against assessee was computed on best judgement basis by drawing on particulars available in auto-populated GSTR-2A, since said exercise was carried out without hearing assessee in person, it was just and necessary that assessee be provided an opportunity to contest tax proposal on merits, therefore tax demand orders and notices were set aside and matter was to remanded for reconsideration.

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Key Details: Case Name: Annalakshmi Stores vs. Deputy State Tax Officer-2
Citation: (2024) 19 Centax 295 (Mad.)

HC directed dept. to re-adjudicate matter since GST portal access was denied to assessee to reply to show cause notices

GST ?|? CASE LAW

GST: Where assessee's/petitioner's registration was retrospectively cancelled, preventing GST portal access to reply to show cause notices, High Court set aside impugned orders, restored proceedings, and granted assessee/petitioner opportunity to reply, directing revenue to re-adjudicate show cause notices.

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Key Details: Case Name: Polytec Industries vs. Commissioner Delhi GST, Trade and Tax Department
Citation: (2024) 19 Centax 302 (Del.)

HC remanded matter as refund was rejected by proper officer without assigning reasons

GST ?|? CASE LAW

GST: Where assessee's refund claim for double payment of tax was rejected by revenue without providing reasons and while a conclusion was drawn by revenue that there was no excess payment, assessee's reply in such regard, wherein specific details were set out, was not engaged with and proper reasons were not assigned for conclusion that there was no excess payment.

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Key Details: Case Name: Manohar vs. Assistant Commissioner of GST and Central Excise
Citation: (2024) 19 Centax 301 (Mad.)

No GST to be paid under RCM by exporter on goods exported on FOB basis with freight arranged by overseas buyer: AAR

GST ?|? CASE LAW

GST: Where goods are exported on FOB basis with freight arranged by overseas buyer, exporter is not liable for GST on RCM basis, and unrelated queries on shipping line's liability and inter-state supply status were not addressed.

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Key Details:

Case Name: In Re: DCW Ltd.
Citation: (2024) 19 Centax 296 (A.A.R. - GST - T.N.)

HC remanded matter as SCN was confirmed without considering explanation of discrepancy in GSTR-3B & GSTR-1

GST ?|? CASE LAW

GST: Where show cause notice alleging mismatch between GSTR 3B returns and GSTR 1 statement as well as between GSTR 3B returns and auto-populated GSTR 2A issued, assessee replied explaining discrepancy and relevant documents, explanation and documents not taken into consideration before issuing impugned order, impugned order bereft of reasons was to be set aside.

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Key Details:

Case Name: Perfect Assayers Pvt. Ltd. vs. State Tax Officer (ST)
Citation: (2024) 19 Centax 304 (Mad.)

Refund of CVD under Notification No. 102/2007-Cus. to be filed within one year from date of payment: CESTAT

CUSTOMS ?|? CASE LAW

Customs: Time limit of one year prescribed in Notification No. 102/2007-Cus. as amended by Notification No. 93/2008-Cus. applicable; Refund claim in respect of additional duty of customs filed beyond time limit of one year is rejected.

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Key Details:

Case Name: Abhishek Marketing vs. Commissioner of Customs (Port)
Citation: (2024) 19 Centax 286 (Tri.-Cal)

No penalty on CHA if there was no material to prove that he connived with importer to mis-declare goods: HC

CUSTOMS ?|? CASE LAW

Customs: Tribunal has not independently assessed factual position, even in show-cause notice, no substantial allegation made against CHA that he connived with other three persons to mis-declare goods; Therefore, finding rendered by Tribunal found to be perverse and set aside.

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Key Details:

Case Name: Ajay Kumar Singh vs. Commissioner of Customs (Port)
Citation: (2024) 19 Centax 288 (Cal.)

No cash refund of ST paid under RCM since no such provision in ST regime to allow cash refund for accumulated credit: CESTAT

EXCISE & SERVICE TAX ?|? CASE LAW

ST: Refund of Cenvat credit of Service Tax paid in pre-GST regime would not be admissible in cash when there is no provision in law either under Cenvat Credit Rules, 2004 or in Finance Act, 1994 to allow cash refund, for such accumulated credit.

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Key Details:

Case Name: CAD Vision Engineers Pvt. Ltd. vs. Commissioner of Customs & Central Tax (Appeals-I)
Citation: (2024) 19 Centax 289 (Tri.-Hyd)

Funding received from Govt. for research projects by by IIIT-H was not taxable as ‘service’ under service tax: CESTAT

EXCISE & SERVICE TAX ?|? CASE LAW

ST: IIIT-H offers recognised degree programs also recognised by UGC as deemed university, hence it is educational institution, therefore, Fees charged to students in post graduate student status program (PGSSP) offered by appellant Institute are exempted from service tax as envisaged under negative list entry in Section 66D of Finance Act, 1994.

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Key Details:

Case Name: International Institute of Information Technology vs. Commissioner of Central Tax
Citation: (2024) 19 Centax 291 (Tri.-Hyd)

Matter to be referred to High Court for initiation of Contempt proceedings against officers for disobedience of orders of CESTAT

EXCISE & SERVICE TAX ?|? CASE LAW

ST: Refund of Service Tax on rent for operating duty-free shops at arrival/departure terminals of Airport having been allowed by orders of CESTAT/Commissioner (Appeals), denial thereof by adjudicating authority by issuance of fresh show cause notice by treating assessee’s letter for implementation of such orders as fresh refunds application amounted to judicial indiscipline and contemptuous in nature and could not be justified.

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Key Details:

Case Name: Delhi Duty Free Services Pvt. Ltd. vs. Commissioner of Central Tax
Citation: (2024) 19 Centax 290 (Tri.-Del)

HC directs processing of refund claims of service tax paid on subscription of chit funds between 01.07.2012 to 13.05.2015

EXCISE & SERVICE TAX ?|? CASE LAW

ST: Division Bench of this Court having held that amendment of Section 65(44) of Finance Act 1994 w.e.f. 14-5-2015 would have only prospective effect and subscribers would be entitled to refund of service tax paid by them between 1-7-2012 to 13-5-2015; Refund applications made by petitioner on behalf of subscribers having been made on time, i.e., within one year from date of judgment.

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Key Details:

Case Name: Kerala State Financial Enterprises Ltd. vs. Union of India
Citation: (2024) 19 Centax 292 (Ker.)

No requirement to reverse Cenvat credit if capital goods are transferred to sister unit & no physical removal took place: CESTAT

EXCISE & SERVICE TAX ?|? CASE LAW

ST: Assessee was not required to reverse credit when there was no physical removal of capital goods and also goodshaving been transferred to their sister unit, entire exercise was revenue neutral.

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Key Details:

Case Name: Vodafone South Ltd. vs. Commissioner of Service Tax
Citation: (2024) 19 Centax 293 (Tri.-Cal)

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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