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Statutory Scope
SION E-136 amended to allow export of Wheat Flour (Atta) with Millets: Public Notice
FOREIGN TRADE POLICY ?|? CIRCULARS & NOTIFICATIONS
The DGFT has issued a public notice to amend Standard Input Output Norms (SION) E-136 to allow export of Wheat Flour (Atta) with Millets.
Key Details:
Statute Number: PUBLIC NOTICE 47/2024-25
Date of Statute: 07-02-2025
Benefit of Section 128A is available if taxpayer paid tax but dept. filed appeal due to dispute of interest/penalty: Circular
GST ?|? CIRCULARS & NOTIFICATIONS
The CBIC has issued instruction to department to withdraw appeal in cases where tax amount has been fully paid by the taxpayer on demands made under section 73 of the CGST Act as per Section 128A and department is in appeal or under the process of filing an appeal only on account of wrong interest calculation and/or wrong imposition or non-imposition of penalty amount.
Key Details:
Statute Number: INSTRUCTION NO. 02/2025-GST
Date of Statute: 07-02-2025
Case Chronicle
No SCN can be issued under Section 73 of CGST Act based on discrepancies identified if explanation was accepted by AO: HC
GST ?|? CASE LAW
GST: Where petitioner, a hotel operator was issued notice under Section 61 alleging ineligible Input tax credit under section 17(5), despite accepting petitioner’s explanation with regard to said notice and issuing Form GST ASMT-12, revenue initiated proceedings under Section 73, since power under Section 73 could be invoked only when explanation offered was not satisfactory, once explanation was accepted, no further proceedings could be drawn, thus, show cause notice issued under section 73.
Key Details:
Case Name: Goverdhandham Estate Pvt. Ltd. vs. State of Rajasthan
Citation: (2025) 26 Centax 400 (Raj.)
Writ petition was disposed of as assessee had alternate remedy of appeal: HC
GST ?|? CASE LAW
GST: Where assessee was denied ITC on ground that suppliers of assessee were unregistered and assessee challenged same vide instant writ petition, since assessee had not availed remedy of appeal, writ petition was to be disposed of directing assessee to file appeal.
Key Details:
Case Name: Jyoti Tar Products Pvt. Ltd. vs. Deputy Commissioner, State Tax
Citation: (2025) 26 Centax 418 (Cal.)
Refund of interest and penalty ordered as ITC was allowed for delayed filing of return as per amendment made by Finance Act, 2024: HC
GST ?|? CASE LAW
GST: In view of clause (5) of section 16 inserted by Finance (No. 2) Act, 2024, with effect from 1-7-2017, an assessee would be eligible to take Input Tax Credit in respect of delayed returns filed for financial year 2017-18; interest and penalty levied on petitioner by respondents were to be refunded with 6 per cent interest from date of such collection till date of repayment.
Key Details:
Case Name: Ram Constructions vs. Union of India
Citation: (2025) 26 Centax 405 (Jhar.)
Penalty order to be set aside as penalty was imposed without SCN or opportunity for a hearing violating natural justice: HC
GST ?|? CASE LAW
GST: Penalty order imposing GST penalty without show cause notice or hearing, and without justification in Physical Verification Report for detention under Section 129(1), is liable to be quashed with direction to adjust penalty amount against tax liability.
Key Details:
Case Name: Rnyn Steel vs. Assistant Commissioner (ST)
Citation: (2025) 26 Centax 406 (Mad.)
Flavoured milk to be taxed under tariff entry 0402 which includes milk with sugar or other sweetening matter: HC
GST ?|? CASE LAW
GST: Where, respondent authority rejected classification of “flavoured milk” under tariff entry 0402 for reason that flavoured milk, with addition of Badam flavour ceases to be milk and becomes a special drink, Entry 0402 includes even plain or concentrated milk containing sugar or other sweetening matter and incorporates milk and milk products, flavoured milk was to be taxed under tariff entry 0402.
Key Details:
Case Name: Sri Vijaya Visakha Milk Producers Company Ltd. vs. Asst. Commissioner of Central Tax
Citation: (2025) 26 Centax 408 (A.P.)
Authority is to proceed with issuing a SCN and consider reply of assessee as SCN did not address any of contentions: HC
GST ?|? CASE LAW
GST: Where show-cause notice issued under section 74(1) was a mere replica of intimation given earlier and did not deal with contentions raised by assessee in their reply to intimation, authority should consider reply to intimation and deal with issues raised therein before issuing show-cause notice.
Key Details:
Case Name: Jyoti Tar Products Pvt. Ltd. vs. Deputy Commissioner, State Tax
Citation: (2025) 26 Centax 376 (Cal.)
Determination of tax is to be decided by adjudicating the SCN; Court will not interfere: HC
GST ?|? CASE LAW
GST: Where show cause notice was impugned as it was going beyond Advance Ruling given in favour of assessee, as per authorities, show cause notice had nothing to do with Advance Ruling and discount given by assessee to owner, was nothing but a supply of service and at what rate tax was payable, was to be decided whilst adjudicating show cause notice, court was not to interfere.
Key Details:
Case Name: Safset Agencies Pvt. Ltd. vs. Union of India
Citation: (2025) 26 Centax 379 (Bom.)
No SCN can be issued after accepting explanation regarding availment of ITC on elevators and air conditioners: SC
GST ?|? CASE LAW
GST: Where high Court set aside show-cause notice under Section 73, holding that such proceedings could only be initiated if petitioners explanation was unsatisfactory, and since explanation had been accepted, Instant court was not inclined to interfere in matter, thus instant Special Leave Petition was to be dismissed.
Key Details:
Case Name: Joint Commissioner vs. Goverdhandham Estate Pvt. Ltd.
Citation: (2025) 26 Centax 401 (S.C.)
Writ dismissed as assessee did not respond to SCN and alternative statutory remedy was available: HC
GST ?|? CASE LAW
GST: Where due to inadvertent error committed by assessee’s consultant, data related to another company mistakenly filed in GSTR-3B return of assessee which resulted in incorrect declaration of taxable supplies and wrongful availment of ITC, none of exceptions to entertain writ petition established, assessee did not avail alternative remedy of appeal, writ petition was to be disposed of, assessee to take recourse of law against impugned order issued under section 73.
Key Details:
Case Name: Lucent Iron and Steel Traders vs. Union of India
Citation: (2025) 26 Centax 419 (Chhattisgarh)
Matter remanded as assessee demonstrated substance in wanting to present a defence: HC
GST ?|? CASE LAW
GST: Where assessee could not file reply to show cause notice within time and impugned order was passed ex-parte, since assessee appeared to have exhibited some substance in wanting to present defence, impugned order was to be set aside and matter was to be remanded.
Key Details:
Case Name: M.P. Jay Jagannath Transport vs. State Tax Officer, CT and GST Circle
Citation: (2025) 26 Centax 420 (Ori.)
Release of bank guarantee directed as demand and penalty had already been set aside: HC
GST ?|? CASE LAW
GST: Where for purpose of obtaining interim order in writ petition, consignee had furnished unconditional bank guarantee pursuant to direction given by High Court in its earlier order, in view of subsequent fact that consignor was successful in having order of demand and penalty set aside, said bank guarantee was to be released on production of certified copy of instant order.
Key Details:
Case Name: Narayan Sahu vs. State of India
Citation: (2025) 26 Centax 421 (Ori.)
Writ dismissed as writ petitions should not ordinarily be entertained at SCN stage except where notice is wholly without jurisdiction: HC
GST ?|? CASE LAW
GST: Challenge to show cause notice under Section 122(1A) of CGST Act at preliminary stage is premature except where notice is wholly without jurisdiction.
Key Details:
Case Name: Sarala Rajendran vs. Union of India
Citation: (2025) 26 Centax 423 (Mad.)
Department can review SCN but can not finalize it until the order of appellate authority is not set aside or stayed: HC
GST ?|? CASE LAW
GST: Where classification made by petitioner was accepted by appellate authority under Heading No. 9973 and department could not challenged appellate authoritys order as Tribunal was non-functional, show cause notice issued by department insisting that petitioner should have classified its service under Heading No. 9988 was to be adjudicated but not to be disposed of by making a final order till order of appellate authority was not set aside or stayed.
Key Details:
Case Name: Shampoorji Pallonji Energy Integrated Solutions Pvt. Ltd. vs. Union of India
Citation: (2025) 26 Centax 424 (Bom.)
Penalty of 50% was restored as CESTAT was not justified in deleting full penalty on importers: HC
CUSTOMS ?|? CASE LAW
Customs: CESTAT was not justified in deleting full penalty on importers after stating that they had not conducted due diligence from market regarding scrips which Revenue had established were forged.
Key Details:
Case Name: Nemichand Desarlla vs. Commissioner of Customs, Chennai
Citation: (2025) 26 Centax 433 (Mad.)
Stainless steel tube fittings, tees and crosses are classifiable under Tariff Item 7307 22 00 instead of Tariff Item 7307 29 00: SC
CUSTOMS ?|? CASE LAW
Customs: Stainless steel tube fittings viz. tees and crosses are classifiable under Tariff Item 7307 22 00 instead of Tariff Item 7307 29 00 of Customs Tariff Act, 1975.
Key Details:
Case Name: Commissioner of Customs (Import), Mumbai vs. Bombay Fluid Systems Components Pvt. Ltd.
Citation: (2025) 27 Centax 33 (S.C.)
Gold bangles worn by foreign tourist may be part of personal effects; no need to declare under Baggage Rules: HC
CUSTOMS ?|? CASE LAW
Customs: Jewellery or ornaments in bona fide personal use of tourist would not be excluded from ‘personal effects’ defined in Baggage Rules, 2016; three gold bangles tourist worn may be part of her personal effects not required to be declared; Baggage Rules interpretation should not unnecessarily burden tourist; till CBIC reconsidered Baggage Rules, directions given regarding detention receipts to be followed by Customs department.
Key Details:
Case Name: Anjali Pandey vs. Union of India
Citation: (2025) 27 Centax 32 (Del.)
Service tax not applicable on remittance charges deducted by foreign banks from export proceeds: CESTAT
EXCISE & SERVICE TAX ?|? CASE LAW
ST: Remittance of export sale proceeds by a foreign bank to Indian bank of exporter is not liable to service tax at hands of exporter.
Key Details:
Case Name: Carona Knitwear vs. Commissioner of GST and Central Excise, Coimbatore
Citation: (2025) 27 Centax 52 (Tri.-Mad)
Laying of optical fibre cables for defence services is eligible for exemption from Service Tax: HC
EXCISE & SERVICE TAX ?|? CASE LAW
ST: Activity of laying down of optical fibre cables for Defence Services under work order issued prior to 1-3-2015 by BSNL as an implementing agency was exempt from Service Tax in terms of Entry No. 12A(a) of Notification No. 25/2012- S.T., dated 20-6-2012 as amended.
Key Details:
Case Name: Telecommunications Consultants India Ltd. vs. Union of India
Citation: (2025) 27 Centax 18 (Del.)
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