TODAY'S CASE (INDIRECT TAX)

November 06, 2024

++ GST - HC had held that petitioner should avail statutory remedy by filing appeal u/s 107 - SLP filed against this order dismissed: SC LB

++ GST - Whether cash can be seized u/s 67 of the Act, 2017 - Conflict between interpretation adopted by Delhi HC and Madhya Pradesh HC - Notice issued: SC

++ GST - Petitioner should avail statutory remedy u/s 107 by filing appeal - Petitioner is also at liberty to approach office of respondent to procure copy of SIB report: HC

++ GST - Search and seizure operations u/s 67 are not for the purpose of seizing unaccounted income - said field is covered by the Income Tax Act, 1961: HC

++ VAT - Assessment order is invalidated where passed without granting opportunity of personal hearing, leading to contravention of the principles of natural justice: HC

++ ST - The appellants being local authority, which is a wing of Government, it cannot be said that appellants had suppressed facts with intention to evade payment of service tax: CESTAT

++ ST - Legal Consultancy Service - Reimbursements for court fees and travel expenses are merely compensatory and thus not subject to service tax: CESTAT

++ ST - Discrepancies arose from the Department's assessment rather than assessee's intention to mislead; remedy for incorrect self-assessment lies in Best Judgment Assessment u/s 72: CESTAT

++ CX - Duty demand on High Speed Diesel, on account of differences between reported & actual quantity - Demand based on mis-understanding of figures & hence merits being quashed: CESTAT

November 05, 2024

++ GST - Since petitioner has already shown his bona fide by not misusing the liberty and has always come back by taking permission to travel abroad, petitioner is not required to surrender his passport: HC

++ GST - Issuing 'advisory' letter to petitioner to make voluntary payments is unknown in law and tantamount to pressure tactics - Authorities directed to be cautious in future and not issue such letters: HC

++ GST - Two Adjudication orders against one Show Cause notice for the same period is not permissible: HC

++ Cus - Since Original Authority has passed the order without compliance with principles of natural justice and without ensuring the service of SCN on appellant, matter remanded for de novo consideration: CESTAT

++ Cus - Recovery of IGST - Allegation was of diversion of inputs imported under Advance Authorisation & which were meant for pre-import conditions - Department did not probe actual usage of such goods; no case of diversion of inputs is made out: CESTAT

++ Cus - In absence of seizure & due to unavailability of goods, their confiscation cannot be ordered - Hence, no redemption fine can be imposed: CESTAT

++ Cus - Appellant eligible for clubbing of Advance Authorisations, whereupon all imports must be considered part of a single authorization: CESTAT

++ CX - CENVAT credit claimed by assessee based on invoices issued by supplier, is wrongfully denied, where Department erroneously alleged that invoices were improperly used without receipt of corresponding goods: CESTAT

++ CX - freight charges collected over & above the sale price of the goods are not includible in assessable value of goods when sold at factory gate: CESTAT

November 04, 2024

++ GST - Writ petition assails orders passed u/s 129 of CGST/SGST Acts, as GSTAT not yet constituted - Petitioner at liberty to appeal before GSTAT as & when it is formed: HC

++ GST - The procedure under Article 226 of the Constitution of India cannot be invoked to determine disputed questions of fact: HC

++ GST - Section 74 of CGST Act is rightly invoked where matter entails suppression of facts with intent to evade payment of tax; petitioner's contentions involves analysis of facts & are better off being raised through statutory appeal: HC

++ GST - No disputed question of facts are involved, therefore, petitioner cannot be relegated to Dispute Resolution Forum - Government Entity to pay difference of tax due to enhancement in rate, to petitioner within three months failing which with interest @6%: HC

++ GST - ITC can be availed by the recipient for the bonafide scenarios listed in Circulars No. 183/15/2022 and 193/05/2023 on submitting proof of payment to the Government, by the supplier: HC

++ GST - Collection of tax by petitioner, a notified authority - Whether exempted as per 13/2017-CT - Respondent authority may continue with the proceedings of hearing of SCN but no order to be passed without permission of Court: HC

++ GST - No disputed question of facts are involved - Respondents are raising baseless objection regarding maintainability of writ petition and availability of alternative remedy under the Arbitration Act: HC

++ GST - Where after receiving SCN, an assessee chooses not to file reply to SCN or to appear for personal hearing, then assessee cannot claim to have been denied personal hearing once a final order is passed: HC

++ GST - Assessment order passed without considering replies to Show Cause Notice quashed; fresh order be passed after considering assessee's contentions: HC

++ ST - Activity of sharing of CAT score by appellant with non-IIM institution does not fall under service category of 'Mailing List Compilation and Mailing Service', demand of service tax along with interest and imposition of penalties on appellant are not sustainable: CESTAT

++ ST - Sinking Fund created by developer for intended for future maintenance & repairs to be handed over to building's RWA, will not attract Service Tax levy: CESTAT

++ CX - Once the original authority has held that service tax paid by appellant on GTA services was input service in terms of Rule 3 of Cenvat Credit Rules, appellant was entitled to avail cenvat credit of the same: CESTAT

++ Cus - Valuation - Contemporaneous import data showing that declared values are comparable to those of other importers, will take precedence over uncorroborated oral statements taken from office bearers of the importer-company: CESTAT

++ Cus - Transaction value (FOB or CIF or C&F) is result of negotiation between buyer & seller; it is consideration paid to seller for the goods - hence it cannot be altered by somebody who is a stranger to the contract, including Customs officers: CESTAT

++ Cus - Chartered Engineer's report, in which cost of production of goods was determined, is insufficient grounds to reject transaction value as per Rule 8 of Customs Valuation Rules: CESTAT

November 02, 2024

++ GST - Without providing an opportunity of personal hearing, respondent has passed the impugned assessment order - Same is quashed and set aside - Matter remanded for fresh consideration on condition that petitioner pays 10% of disputed tax amount: HC

++ GST - Appeal preferred in March 2023 - During pendency of petition seeking expeditious disposal, hearing granted but petitioner did not remain present - Petitioner does not want any hearing - Respondent to pass appropriate order: HC

++ GST - Summary of Show Cause Notice in Form GST DRC-01 cannot substitute requirement for proper Show Cause Notice as mandated by Section 73(1): HC

++ KVAT - Refund application can be rejected only where requisite documents in support of the application & for considering the same, could not be obtained: HC

++ GST - Pre-deposit amount can partially be paid through Electronic Credit Ledger: HC

November 01, 2024

++ GST - Demand of 8.90 crores - Amount collected as tax but not deposited with government - Conclusion of trial will take time and keeping the accused behind the bars is nothing but amounts to pre-trial conviction - Bail granted: HC

++ GST - ITC availed - Vendor has not deposited the tax liability in government treasury - Instead of filing reply to SCN, petitioner directly approached Court - Court cannot cause hindrance in disposal of proceedings: HC

++ GST - Mismatch of GSTR-3B and GSTR-2A - Matter remanded subject to petitioner paying 10% of disputed tax amount within a period of four weeks: HC

++ Cus - Imported ELISA kits not used in evaluation of physical, biophysical or biochemical processes & states in animals/humans; are not diagnostic reagent/kits; are meant to be used for food testing - Is not eligible for exemptions under Notification No. 12/2012-Cus & Notification No. 50/2017-Cus: CESTAT

++ Cus - If an assessment is not acceptable to assessee, then only remedy is to file appeal; Commr.(A) should have considered appeal on merits instead of rejecting it due to absence of value enhancement or classification change: CESTAT

++ ST - Post 01.07.2012, assessee-firm was non-functional & rental agreements were in the name of individual partners regarding jointly held properties - this negates existence of service provided to oneself - Firm not liable to pay Service tax: CESTAT