2021-TIOL-1304-HC-DEL-GST

Reliable Traders Vs Pr.CCGST

GST - Petitioner says that the respondent/revenue has blocked the input tax credit (ITC) of the petitioner, which in the ordinary course, would enure t o it via the electronic credit ledger; that the impugned action of blocking the ITC has been carried out by the respondent/revenue at the petitioner's back, without giving any notice and/or opportunity of hearing.

Held: Counter-affidavit to be filed within four weeks, by Revenue - Matter listed on 02.08.2021: High Court [para 4]

- Matter listed: DELHI HIGH COURT

2021-TIOL-1305-HC-MAD-CUS

Sun Global Logistics Pvt Ltd Vs UoI

Cus - Petitioner has challenged the impugned communication dated 11.2.2013 directing them to pay a sum of Rs.1,24,23,213/- as arrears of amount payable towards Cost Recovery Charges (CRC) from the date of issue of Container Freight Licence till 31.3.2013.

Held: Handling Of Cargo In Customs Area Regulations, 2009 contemplates payment of costs towards the cost of customs officers posted at the customs area on Cost Recovery Basis at such rates and in such manner unless specifically exempted by an order of the Government of India in the Ministry of Finance - After the above Regulations, 2009 came into force, there should have been a proper notification specifying the manner in which such payments were to be levied and collected from the Customs Cargo Service Providers - No order of the Government of India has been brought to the attention of the court which has specified and fixed the amounts to be paid and collected on Cost Recovery Charges for the purpose of the aforesaid Rules - In absence of any direct notification/government order specifying the rates to be levied towards Cost Recovery Charges under the aforesaid Regulation, 2009 for deploying its officers, the collection of Charges on Cost Recovery basis from the petitioner has been made contrary to the above Regulation – Division Bench decision in Eternit Everest Ltd vs Union of India = 2003-TIOL-11-HC-MAD-CX relied upon - Petitioner has reportedly paid an amount Rs.45,01,960/- and would have passed on incidence of such amount to the customer who had availed of services of the petitioner, therefore, there can be no order for refunding of the amount - Only way out is to regularize the amounts already paid & collected in the past - Since the petitioner has also demonstrated that it had fulfilled the criteria/benchmark for exemption from payment of Cost Recovery Charges during the first two years of approval and operation, the case of the petitioner deserves to be considered for waiver/exemption from payment of Cost Recovery Charges in terms of the guidelines of the Central Board of Excise and Customs taken in its meeting held on 18 June 2015 - There is no connect between the provisions of the above Regulation as it stands today and the practice that is being followed by the Department for levying and exempting a Customs Cargo Service Provider from payment of Cost Recovery Charges - Therefore, while disposing these writ petitions in favour of the petitioner by directing the respondents to regularize the payments already made by the petitioner and by directing the respondents to grant waiver for the period after the petitioner has achieved the required benchmark/criteria as per the CBEC clarification dated 12.09.2005, Bench directs the CBIC to issue appropriate notifications for the benefit of Trade and Public within a period of 6 months specifying the rates /charges payable by a "Customs Cargo Service Providers" on Cost Recovery Charges(CRC) basis operating under the Provisions of the Handling of Cargo in Customs Areas Regulations, 2009 in consonance with the provisions of the Customs Act, 1962 and the Constitution of India; suitably amend the Provisions of the Handling of Cargo in Customs Areas Regulations, 2009 incorporating provisions for grant of waiver/exemption from payment of amounts on Cost Recovery Charges (CRC) basis payable under the aforesaid provisions – Bench also directs the jurisdictional Commissioner/Chief Commissioner to regularize the case of the petitioner by granting waiver/exemption to the petitioner by an order with effect from the date on which the petitioner achieved the benchmark as per the CBEC clarification dated 12.09.2005 - Writ petition stands disposed of: High Court [para 66 to 69, 71, 75, 76]

- Petition disposed of: MADRAS HIGH COURT