2022-TIOL-104-SC-GST

Ratnambar Kaushik Vs UoI

GST - Rajasthan High Court has dismissed the application filed by petitioner seeking bail in the proceedings for the offence alleged against him u/s 132 of the Act, 2017 - Allegations against the petitioner in the prosecution initiated against him is that the petitioner had clandestinely transported raw un-manufactured tobacco; that the said quantity of un-manufactured tobacco has been apparently used in the clandestine manufacture and supply of chewing tobacco without payment of leviable duties and tax - Petitioner in this special leave petition contends that even if the tax is levied at 28% on un-manufactured tobacco, the value would be around Rs. 10,30,824/- - However, it is the case of the respondent that the total tax/duty and cess involved would be Rs.15,57,28,345/- on the basis of the projected manufacture of zarda pouches from the said quantity of un-manufactured tobacco - Petitioner contends that such allegations have been made only to allege cognizable and non-bailable offence against the petitioner so as to deny bail and take him into custody. Held: It is no doubt true that an allegation is made with regard to the transportation of un-manufactured tobacco and it is alleged that such procurement of un-manufactured tobacco is for clandestine manufacture and supply of zarda without payment of leviable duties and taxes - Though it is further contended that in the process of the investigation, the transportation of a larger quantity of un-manufactured tobacco weighing about 35,57,450 kgs. is detected, these are all matters to be established based on the evidence, in the trial - It is noted that the petitioner was arrested on 21.07.2022 and while in custody, the investigation has been completed and the charge sheet has been filed - Even if it is taken note that the alleged evasion of tax by the petitioner is to the extent as provided under Section 132(1)(l)( i ), the punishment provided is, imprisonment which may extend to 5 years and fine - The petitioner has already undergone incarceration for more than four months and completion of trial, in any event, would take some time - Needless to mention that the petitioner if released on bail, is required to adhere to the conditions to be imposed and diligently participate in the trial - Therefore, keeping all these aspects in perspective, in the facts and circumstances of the present case, Bench finds it proper to grant the prayer made by the petitioner - It is directed that the petitioner be released on bail subject to the conditions to be imposed by the trial Court - Special Leave Petition allowed: Supreme Court [para 5, 6, 7]

- Petition allowed: SUPREME COURT OF INDIA

2022-TIOL-1514-HC-KERALA-GST

Western Offshore And Marine Projects Pvt Ltd Vs State Tax Officer

GST - Petitioner has challenged the order issued by the 1st respondent cancelling their registration - It is the specific case of the petitioner that no notice in form REG-17 was issued to them before cancellation of registration and the only one issued was the one regarding the suspension of the registration in form REG-31 - Counsel for respondent Revenue submits that the necessary notice ought to have been automatically generated; that without standing on technicalities, the matter can be remitted to the 1st respondent for considering the case of the petitioner.

Held: Order is quashed and the matter is remitted to the 1st respondent to complete the proceedings against the petitioner in accordance with law - Registration will stand restored till a fresh decision is taken by the 1st respondent - Writ petition is allowed: High Court [para 3]

- Petition allowed : KERALA HIGH COURT

2022-TIOL-1513-HC-DEL-GST

Carestream Health India Pvt Ltd Vs Commissioner Delhi GST

GST - The petitioner sought a direction to revenue to issue Form Fs under Central Sales Tax Act, 1956 to petitioner for year 2017-18 as detailed in Annexure-P3 - Accordingly, it is directed that revenue will issue F-Forms to petitioner qua the year in issue i.e., 2017-2018, subject to verification of entitlement on merits, without being burdened with issue concerning limitation, which is in line with direction issued in other cases including the judgment of coordinate bench in Samsung C&T Pvt. Ltd. - Furthermore, it is made clear that direction issued will remain suspended till the civil appeals pending in Supreme Court are adjudicated: HC

- Writ petition disposed of: DELHI HIGH COURT

2022-TIOL-1512-HC-MP-GST

Yash Krishi Seva Kendra Vs State of Madhya Pradesh

GST - The grievance of petitioner is non-communication of order of cancellation of registration within period of limitation prescribed for preferring an appeal whereby depriving the petitioner of availing remedy of appeal - Revenue vide return inter alia revealed that SCN as well as order of cancellation of registration were both uploaded on portal in terms of Section 169(1) (D) of GST Act, 2017 - It is submitted by revenue that once the SCN as well as order of cancellation of registration was available on portal, same was available for petitioner to be downloaded for purposes of filing an appeal against the same - It is clear from return that revenue adhered to provision of Section 169 of GST Act as regards communication of SCN as well as order of cancellation of registration and therefore, no fault can be found with Revenue - Pertinently, return of revenue further reveals that SCN in question was sent on mobile bearing number as mentioned on portal belonging to petitioner and e-mail address of erstwhile consultant - Therefore, appeal preferred by petitioner u/s. 107 of GST Act was hopelessly time barred: HC

- Writ petition dismissed: MADHYA PRADESH HIGH COURT

2022-TIOL-134-AAR-GST

Shraddha Traders

GST - Applicant is seeking an advance ruling regarding classification and applicability of GST on sale of rejected paddy seed, which, according to them are not fit for human consumption and could be used for industrial use, cattle feed production, manure production etc. Held:   Paddy becomes rice after the removal of husk by threshing - Therefore, rice is a part of paddy and Paddy is the rice grain with husk - Rejected paddy seed would merit classification under chapter heading 1006 10, subject to compliance of the stipulations and conditions as mentioned in the Section note and chapter note specified therein -  The exemption from whole of tax as provided under Sr. no 70 of Notification no. 02/2017-CTR as amended is not eligible for supply of "Rejected paddy/Damaged paddy" - "Rejected paddy / Damaged paddy" per se supplied by the applicant would be leviable to tax @2.5% CGST + 2.5% CG GST in terms of 1/2017-CTR - Regarding categorisation of rejected paddy based on its usage such as animal feed, cattle feed, poultry feed, industrial use, manure etc., this authority finds that for want of adequate details regarding the process undertaken by the applicant through which such rejected paddy would be converted to animal feed, cattle feed, manure etc., no conclusive ruling regarding classification from the GST perspective based on HSN can be delivered: AAR

- Application disposed of: AAR