TODAY'S CASE (INDIRECT TAX)

April 30, 2021

++ Cus - Jurisdiction under Contempt of Courts Act is not to be invoked unless Court finds that the act on the part of the authority is deliberate and in wilful disobedience of the order of the Court: HC

++ GST - Manifest non-application of mind - Not just the order but even the notices leading to passing of the same are rife with errors: HC

++ ST - Provisions of Sections 76 & 78 of FA 1994 are to be read along with Section 80 of the Act, which overrides Sections 76 & 78 - relief in respect of penalty u/s 76 must be given if relief is also given in respect of penalty u/s 78: HC

++ CX - Orders passed without affording proper & reasonable opportunities of hearing to the assessee, are in contravention of the principles of natural justice & thus, not sustainable: CESTAT

April 29, 2021

++ Cus - FTP - Instructions sought to impose fresh restrictions on the eligibility of the service providers entitled to the benefit under SEIS, which amounted to amendment in the policy, and is therefore, ultra vires : HC

++ Cus - Where Instructions are contrary to law, they are liable to be set aside and availability of alternate remedy would not bar the exercise of jurisdiction under Art. 226: HC

++ CX - Any issue which was not raised in the SCN cannot be imported into the adjudication order or Commissioner (Appeals) order - Orders cannot sustain: CESTAT

++ GST - Unless amendment to s.7 of CGST Act, 2017 as proposed by FA, 2021 is notified, the applicant is not liable to pay GST on subscription fees and Infrastructure development fund collected from  members: AAR

++ GST - Supply of rice in 25kg bags - Not bearing a registered brand name not the only criteria to avail exemption - forgoing actionable claim also essential: HC

++ CX - There is no bar in making use of the accumulated Cenvat Credit for making payment of Central Excise Duty even during default period: CESTAT

++ ST - Refund - Assessee satisfied mandate of Notfn 27/2012-CE (NT) by debiting amount of refund claim in Cenvat credit account at time of filing of refund claim - Rejection of refund is not tenable: CESTAT

April 28, 2021

++ GST - Extension - Since the period for filing of return is fixed by the Statute, it is the statutory authority alone who has power and authority to extend any period, for compliance: HC

++ ST - Collection of tax by service provider was contrary to law as clarified by Board on 24.04.2002 - Period prescribed u/s 11B for claiming refund had expired long before clarification issued, hence no relief can be granted: HC

++ VAT - Appellant's contention that State cannot reassess liability incurred prior to repeal of KVAT Act is totally baseless in view of savings clause u/s 174 of KGST Act – Order appealable u/s 62 of KVAT Act, 2003: HC

++ ST - Authorised service station -  No service tax is due on free services and warranty service: CESTAT

++ CX - Clearances made by assessee under notfn 43/2001-CE (N.T.) on strength of Annexure 45 cannot be held as exempted clearances & therefore, no reversal of Cenvat Credit is necessary: CESTAT

++ Cus - Refund of SAD - That CST or VAT duty is not paid in respect of imported goods subsequently cleared for domestic consumption, is not sufficient grounds to deny such refund: CESTAT

++ ST - Extended period cannot be invoked where the Revenue's case is based on Balance Sheet and income return and other records of the assessee: CESTAT

April 27, 2021

++ ST - SVLDRS, 2019 - Basic thrust of the Scheme is to unload the baggage of pending litigations but  statutory provisions under CCR cannot be given a complete go-by - time barred credit cannot be adjusted: HC

++ GST - Principles of natural justice and fair play has been violated - alternative remedy will not be a bar: HC

++ NDPS - Possession of Cocaine & Methamphetamine - Such contraband is recovered in commercial quantity, hence rigors of Sec 37 of NDPS Act applicable - Bail applications rejected: HC

++ VAT - Non-compliance with mandatory requirement of pre-deposit is not condonable where assessee is not found to be facing any financial hardship which hinders making pre-deposit: HC

++ CX - Once duty is paid before issuance of SCN along with interest, then SCN need not be issued & question of imposition of penalty does not arise: CESTAT

++ ST - Appeal to Commissioner (A) is rightly dismissed where no sufficient cause is put forth to explain delay in filing such appeal: CESTAT

April 26, 2021

++ GST - Activity of agreeing to grant rights for shared access of pathway is an 'act of agreeing to tolerate an act' and is classifiable under SAC 999794; chargeable @18%GST: AAAR

++ Credit card expenses - Reimbursements paid by appellant to holding company for expenses incurred initially by its employees are nothing but part of software development cost and consequently part of taxable value of services: AAAR

++ GST - Imported Prepared Laboratory Reagents are classifiable under TI 3822 0090 and chargeable to GST @12%: AAR

++ CX - When the petitioner admits that he was operating under Compounded Levy Scheme, he is liable to pay excise duty for the whole year - fact that unit was closed w.e.f 26.04.99 is of no consequence: HC

++ Cus - Provisions of CBLR 2013 are sacrosanct & there is no scope for distortion - SCN issued beyond 90 days of offence report is invalid - Order passed in consequence of such SCN is unsustainable: CESTAT

++ CX - Recovery of interest u/s 11A of CEA 1944 is not tenable where no SCN is issued to assessee, as is required by provisions of Section 11A: CESTAT

April 24, 2021

++ GST - Services provided by an advocate to any person other than a business entity exempted from levy of service tax - Instructions issued by Bhubaneswar and Rourkela Comm'te : HC

++ Cus - For passing a valid adjudication order, valid service of SCN is essential - O-i-O passed is without authority of law, when there is no valid service of SCN: CESTAT

++ CX - Interest on refund claimed by assessee, is to be allowed @ 6% as per Notfn No 24/2014 & provisions of Section 35FF of CEA 1944: CESTAT

April 23, 2021

++ Excise duty liability can be fastened only on that person who had purchased the entire unit as a going concern and not on a person who had purchased land and building or machinery of erstwhile concern: HC

++ CX - Purchase of property in auction - 'Other existing liability' can be liabilities pertaining to the property only viz, i.e. Municipal tax, electricity and water charges, land revenue etc. and not excise duty: HC

++ Runwal Constructions breathes easy - Excise dues are not dues which arise out of land or building: HC

++ Cus - Institutional respect is of paramount importance - Usurping the powers of appellate authorities by invoking its powers under Article 226 is certainly unwarranted: HC

++ Cus - Canon cannot but FourceessDiamond can - Jurisdictional error should not result in exoneration of liability; error, if any committed, is technical, and thus, rectifiable: HC

++ Refund - Petitioner appears to be guilty of procrastination - For violation, by Revenue, of directions contained in earlier order, petitioner ought to have filed a contempt petition and not a writ petition after 19 months: HC

++ Cus - It is settled law that redemption fine need not be imposed where relevant goods are permitted to be re-exported: CESTAT

++ CX - Denial of cenvat credit is not tenable if Revenue is unable to establish that the relevant input goods were not received by the assessee or that assessee cleared output goods without payment of duty: CESTAT

++ ST - Duty demand raised by invoking extended limitation is not tenable where no fraud, mis-representation or suppression of facts is attributable to assessee: CESTAT

April 22, 2021

++ GST - Refund - A circular cannot stand in the way of a benefit offered under a statutory scheme - Para 2.5 of Circ. 37/2018-Cus insofar as it is contrary to statutory provisions of s.54(3) is bad in law: HC

++ Cus - Summons - COVID scare - Virtual appearance - Request may be made before authorities for consideration in accordance with mutual convenience as well as integrity of procedure: HC

++ Cus - Condonation of delay - Rejection of appeal to Commr.(A) on grounds of time bar is unsustainable where assessee was unable to file appeal in timely manner, due to being sick during the relevant period: CESTAT

++ CX - Cenvat credit cannot be denied where assessee receives relevant input service, for which it pays the input service provider & then uses such input service for manufacture of dutiable goods or providing output service: CESTAT

++ ST - Refund of service tax paid on development charges - Refund claims cannot be rejected where raised within reasonable period & where delay is caused by confusion on who is to file for refund: CESTAT

April 21, 2021

++ NDPS - Bar of s.37 is not attracted as substance recovered is a controlled substance - Pseudo ephedrine hydrochloride is neither a narcotic drug nor a psychotropic substance under NDPS Act - Petitioner is admitted to bail: HC

++ Sales tax - For purposes of determining taxable turnover, discount allowed from price of sale needs to be deducted: HC

++ Sales Tax - Once sale was complete at site of inspection of goods, then freight charge for further transportation of goods to purchaser's site would not form part of sale price: HC

April 20, 2021

++ GST - s.83 - Once the final order of assessment is passed u/s 74, the order of provisional attachment must cease to subsist: SC

++ GST - s.83 - Order passed by Jt. Commr. as a delegate of Commissioner was not subject to an appeal u/s 107(1) since expression 'adjudicating authority' does not include Commissioner - only remedy is invocation of writ jurisdiction: SC

++ GST - Rule 159(5) - Commissioner's understanding that granting an opportunity of being heard was at his discretion is flawed - fundamental breach of principles of natural justice: SC

++ GST - Whether noticees cannot place material before DGAP, which may be relevant for the purpose of investigation/inquiry - Matter listed: HC

++ ST - SVLDRS, 2019 - Word 'admission' does not find mention in the Scheme, although, it appears in the Circular dt. 27.08.2019 - Bench to examine this aspect: HC

++ VAT - It is fit case for re-doing of assessment where an order is passed by the AO without giving opportunity to the assessee to present relevant documents necessary for assessment: HC

++ VAT - Where the Revenue seeks to recover dues from an assessee, it cannot attempt to recover such dues by attaching property which is not the estate of the defaulting assessee: HC

April 19, 2021

++ ST - CENVAT - Rule 2(l) of CCR, 2004 - Insured is the assessee and not individual employees - benefit of the policy, if any, goes to assessee and not to employees - ST paid on insurance premium admissible as credit: CESTAT LB

++ GST - Mobile based taxi aggregation service - 'DYUT RIDES' - Charges for cancelling the trip attracts GST @18%: AAR

++ GST - Bonus paid by passenger - Service charge collected for facilitating the payment of goodwill amount to drivers is consideration; attracts GST @18%: AAR

++ GST - Parboiling and Drying plant is correctly classifiable under HSN 8419 and attracts GST @18% - not under HSN 8437 @5% GST as contended by applicant: AAR

++ ST - Legitimate export incentives given to exporters of goods or services cannot be denied merely because of intervening changes in law viz. introduction of GST: HC

++ ST - There is a presumption as to the validity of a statute, unless it is struck down as ultra vires : HC

++ Cus - Export Obligation Discharge Certificate (EODC) failed to be taken into account - demand reversed by Revenue, hence petition allowed: HC

++ GST - Plastic toys are classifiable under heading 9503 0030 and attract GST @12%: AAR

++ VAT - C Form cannot be denied to an assessee who obtains supplies from outside the relevant State, so as to execute a contract awarded to it by the Government Departments of that State : HC

++ VAT - Even though an assessee may not have maintained stock register, Revenue cannot resort to any formula method for computing stock variation: HC

April 17, 2021

++ GST - Supply of goods and services for setting up of solar project - applicant is liable for payment of GST on total value - 70% on account of goods & 30% on account of services - effective rate 8.9%: AAR

++GST - Applicant is liable to pay GST on reverse charge basis for amount paid as interest on late payment of invoices - rate same as IGST leviable on imported goods: AAR

++ GST - Since supplier does not satisfy all conditions required for being a 'Pure agent', GST payable on reverse charge basis on amount paid as reimbursement of Stamp tax: AAR

++ GST - Supply of inpatient healthcare services is exempted from CGST as per Sl. No. 74 of 12/2017-CTR: AAR

++ GST - An amendment in the Notification is prospective in nature unless clearly specified to be clarificatory: AAR

++ Cus - Petitioner is a victim of fraud perpetrated by Chinese exporter - What was exported was lower grade Caustic Soda in place of Remelted Lead Ingots - Excess duty paid in advance under bonafide belief to be refunded: HC

++ CX - Relevant materials furnished by the petitioner were not taken note of before passing the impugned order - Adjudicating authority has to necessarily revisit the issue: HC

++ ST - When the primary orders are not under challenge, Bench cannot interfere with the consequential recovery action: HC

++ ST - When the department knew that petitioner had not paid any tax for the period preceding October, 2004, nothing stopped them from issuing a SCN immediately after petitioner registered themselves - SCN dt. 02.04.2007 hit by limitation: HC

++ VAT - Voluntary disclosure made by dealer after issuance of pre-assessment notice, does not release him from mischief of penalty proceedings: HC

April 16, 2021

++ NDPS - As per Explanation to Sec 43 of NDPS Act, a private vehicle would not come within ambit of public place : SC

++ NDPS - Rigor of Section 42 of NDPS Act pertaining to entry, search & seizure may be lessened in certain situations, but total non-compliance thereof is unsustainable: SC

++ Cus - After receiving SCN dt. 10.08.2010, petitioner filed reply on 23.08.2010 and thereafter did nothing but filed petition in year 2020 to quash SCN - since appellant submitted to the jurisdiction of the respondent by filing reply, Single Judge had rightly dismissed petition: HC

++ Cus - If the department wants to rely on the evidence of certain witnesses, it may be necessary to provide opportunity of cross examination of these witnesses to the noticee: HC

++ ST - Affiliation fees as well as Inspection commission collected by University are in the nature of statutory levies - not amendable to levy of service tax: HC

++ ST - SVLDRS, 2019 - Payment of estimated amount was unsuccessful as amount initially debited from petitioner's account was recredited - Petitioner went into slumber and woke up only in January 2021 when they were called to clear original liability - no relief can be granted: HC

++ Cus - Only those documents on which reliance will be made in the adjudication will have to be supplied to the noticee - no violation of principles of natural justice - Petitioner has come to the Court prematurely: HC

++ GST - Charles and his wife Shanthi will have to be examined as witnesses since they did not pay the tax collected - liability cannot be saddled on petitioner: HC

++ VAT - Penalty is not leviable only upon there being an attempt to evade tax payable under the Karnataka VAT Act & not merely because the documents accompanying the goods are not in the prescribed format: HC

++ TNVAT - Revisionary order passed under the TNVAT Act is unsustainable, where based entirely on proceedings commenced against the assessee by the Central Excise Department: HC

++ VAT - FAA as well as the Tribunal can receive documents subject to the genuinity being proved: HC

++ CST - Collection made by dealer from his customers, can only be considered as valuable consideration for goods sold: HC

April 15, 2021

++ Cus - Amount deposited in terms of s.131 of the Act, 1962 has to be refunded without insisting on such importer satisfying the requirement of 'unjust enrichment': HC

++ GST - Applicant wants to know whether the rate of tax of 5% is applicable to their goods - In view of non-submission of the documents such as contract/agreement/tender, Authority is unable to take a decision: AAR

++ Cus - By selling the goods held liable for confiscation, the Government will definitely be getting some revenue - Bench does not understand as to why, such a course of action is not being adopted: HC

++ GST - Transitional credit - No question of assessee missing the bus - Respondent department directed to facilitate the uploading of Form TRAN-1: HC

++ Entry Tax - Tribunal is not expected to brush aside ground of bias raised by taxpayer: HC

++ VAT - Notices proposing attachment of property for recovery of tax liability, are premature, where the limitation period for filing first appeal is on-going : HC

++ GST - Service recipients of Ahmedabad Municipal Transport Service are required to pay GST under reverse charge mechanism - AMTS is required to be registered as a deductor u/s. 24: AAR

++ GST - Applicant cannot use ITC legitimately earned and meant for outward supply of Bullions towards GST liability on 'Castor Oil Seed' which were procured from Agriculturists and subsequently meant for onward supply: AAR

++ GST - Questions raised by applicant do not fall within any of the clauses of (a) to (g) of Sub-section (2) of Section 97 of the Act, 2017 – Application rejected: AAR

++ GST - Power Sip is classifiable under TI 2202 99 30 as a 'beverage containing milk' and is not classifiable under either CTH 0402 or 0404: AAR

April 14, 2021

++ Cus - Impact of SC decision in Canon India - Proceedings pursuant to the SCN issued by the DRI is stayed: HC

++ ST - Whether or not services rendered to two separate juridical entities outside India is exigible to tax will fall within realm of adjudication - not a preventive/offence case, hence pre-SCN consultation was mandatory: HC

++ CX - Refund - Subsequent issuance of credit note is of little avail as the incidence of excise duty is deemed to have been passed on by the assessee to its buyer - claim rightly rejected: HC

++ VAT - In absence of any alleged sum coming within scope of 'arrears of tax' as per Amnesty scheme, Tax authorities cannot compel settlement of same without volition of taxpayer himself: HC

++ GST - Provision of hostel accommodation to students along with food facility, Play Room, Gym, Housekeeping etc. and wherein consolidated amount is charged is Mixed Supply - Tax is @18%: AAAR

++ GST - Cheque Bouncing Charges/Interest on receivables on delayed payments being charges received for 'Agreeing to tolerate an act' is classifiable under SAC 999794 and taxable @18%: AAR

April 13, 2021

++ GST - Large workforce, unpaid salaries - Business operations have virtually crippled - Department to consider lifting of provisional attachment in respect of a few bank accounts to enable assessee to carry on its business activities: HC

++ Cus - s.149 of CA, 1962 - Amendment of GSTIN details in B/E - Operation of the 2017 Act cannot go back to the Jurassic age denying an assessee relief that it would have obtained under earlier enactment: HC

++ CX - Earlier judgment based on which refunds were granted was held to be per incuriam by SC - refunds cannot be held to be granted ‘erroneously' so as to invoke s.11A for its recovery: HC

++ CX - A subsequent change in law arrived at by a Court by way of separate judicial proceeding will not ipso facto reverse position of the party vis-a-vis their rights which were declared and concluded by way of an earlier judicial proceedings: HC

++ CX - A change of law subsequently would not make an action taken earlier by quasi-judicial authority, in terms of law as it stood then, to be held to be erroneous so as to enable the Departmental Officer to invoke powers u/s 11A: HC

++ ST - Petitioner Municipalities were renting out shops in bus stand and other areas where it was having immovable properties - no liability to pay service tax prior to July 2012 or thereafter: HC

++ CST Act, 1956 - Benefit of concessional rate is available to both selling and purchasing dealers by way of inter-state sales: HC

++ VAT - Assessment orders are unsustainable, where the Department is unable to conclusively establish that they had been served upon the assessee at its correct address : HC

++ TNVAT Act, 2006 - HC u/Art. 226 of the Constitution must not entertain every challenge to assessment order when statutory remedy of appeal against that order is foreclosed by law of limitation - HC.

++ VAT - Tax dues owed by an assessee cannot be recovered by attaching assets of another person to whom the defaulting assessee transferred his business & assets, where the assets in question are purchased by the transferee from own funds : HC

++ VAT - Non-issuance of notice of personal hearing vitiates the entire assessment proceedings: HC

April 12, 2021

++ GST - 'Air Springs' act as shock absorber designed specifically for Motor Vehicles - rightly classifiable under CTH 8708 attracting @28% and not under CTH 4016 @18%: AAR

++ GST - 'Wheat' imported is destined to importer's factory for further processing and it is not to the primary market - Therefore, services of loading, unloading, packing, storage or warehousing is not entitled to exemption under 12/2017-CTR: AAR

++ GST - 'Polypropylene Non-woven Bags' is classifiable under HSN 3923 at 18% and not at 5% under 6305: AAR

++ VAT - assessment order passed by the AO is unsustainable where based entirely on the report of the Enforcement Wing: HC

++ VAT - provisions of Section 7(1)(a) cannot be invoked to impose a higher rate of tax on the total turnover of the assessee, whereas the provisions of Section 7(1)(c) impose higher rate of tax only upon certain items: HC

++VAT - a restaurant attached to a Star Hotel will come within purview of Section 7(1)(a) of the TNVAT Act: HC

++ ST - SVLDRS - Disagreement over estimated amount - No specific record made available by Revenue that communication of hearing was sent on 'email id' or via 'SMS' - SVLDRS-3 set aside: HC

++ Cus - Issue is purely contractual between petitioner, on the one hand and private respondents on the other - In such a case, it would not be open to the Writ Court to issue any Mandamus: HC

++ GST - All stakeholders are treading in the new GST regime with uncertainties as the path is comparatively unfamiliar, unmarked and unpaved - Order of detention is an example of such uncertainty: HC

++ VAT - Bill of Entry cannot be regarded as title to goods as per provisions of Customs Act: HC

April 11, 2021

++ GST - Whether Explanation (a) of Rule 89(5) is contrary to the provisions of section 54(3) of the Act - contrary views by High Courts - SLPs listed on 28 April 2021: SC

April 10, 2021

++ Cus - DGFT has a commitment to function as a facilitator of exports and imports which is, however, not seen in the present case: HC

++ CX - Taxable event i.e. manufacture of the goods had taken place in the factory premises at Una in Himachal Pradesh - Thus, neither respondent CCE, Audit, Thane nor CCE, Thane has the territorial jurisdiction to issue any SCDN for levy of CEX duty: HC

++ VAT - Assessment order merits being aside where a portion of the amount that represents assessee's income amenable to income tax, has been included for purpose of computing assessee's turnover under TNVAT Act: HC

++ VAT - When conducting scrutiny assessment, it is not open for the AO to selectively consider some documents while ignoring other relevant documents, before passing assessment order: HC

April 09, 2021

++ Cus - Disputed scenario - It is not a case where it can be said that the revenue department is acting without powers or authority - Bench not inclined to grant any reliefs: HC

++ GST - Printing of 'Trade Advertisement Material' - Activity is a contract for service only [ SAC 998912 ] and not a contract of sale of goods - AAR order upheld: AAAR

++ GST - Petitioners are entitled to transition TDS under the TNVAT Act in terms of Section 140 of the TNGST 2017: HC

++ Cus - Seizure & confiscation of Gold is sustained where assessee does not discharge initial onus of proof u/s 123 of Customs Act 1962, of being authorised goldsmith engaged in melting Gold pieces for conversion into other Gold items: CESTAT

++ ST - O-i-O passed without consideration of ST-3 returns, violates principles of natural justice, more so where service tax liability as pointed out in SCN is discharged before passing of such order: CESTAT

April 08, 2021

++ GST - Merely because an assessee has, under the stress of investigation, signed a statement admitting tax liability and has also made a few payments, cannot lead to self-ascertainment as contemplated u/s 74(5): HC

++ GST - Section 74(5) is NOT a statutory sanction for advance tax payment - Amount of Rs.2 crores collected during investigation to be refunded: HC

++ ST - Revenue is in appeal against CESTAT order holding that no service tax is payable on 'Exposure Fee' charged by US Exim Bank - Notice issued on application for COD: SC

++ GST - Advocates facing harassment - Commissioner is directed to issue clear instructions to all officers in Odisha that no notice demanding payment of ST/GST will be issued to lawyers rendering legal services: HC

++ Cus - No savings clause or any substantive provision in the Gold (Control) Repeal Act, 1990, to the effect that all action taken during the validity of the Act, 1968 would stand reversed: HC

++ GST - Issuance of bogus bills for passing ITC - Matter already stands investigated - No useful purpose would be served by keeping the petitioners behind the bars - bail granted: HC

++ Cus - Penalty u/s 112(a) of Customs Act is sustained where those goods are imported which are liable to be confiscated: CESTAT

++ ST - Manpower Recruitment and Supply Agency - Duty demand raised is upheld, where assessee is registered for providing a taxable service, but omits to pay service tax - Duty demand reduced in respect of such service provided to Govt schools: CESTAT

April 07, 2021

++ ST - 'Voluntary statements' recorded before the SIO cannot constitute pre-show cause notice consultation as envisaged in the 2017 Master Circular: HC

++ GST - TikTok - Attachment of bank accounts - Payment of salaries - To safeguard Revenue, FD of an amount of Rs.78.91 crores to be made in a nationalized bank: HC

++ Exemption - A literal formalistic interpretation of the statute is to be eschewed: SC

++ Interpretation - We must first ask ourselves what is the object sought to be achieved and construe the statute in accord with such object - And on the assumption that any ambiguity arises in such construction, such ambiguity must be in favour of that which is exempted: SC

++ ST - As per Board Circular, power of arrest in Service Tax is available only if the amount exceeds two crores - since amount involved is only Rs.1.38 crores, proceedings quashed: HC

++ GST - Assessment order passed and garnishee notices issued without affording the petitioner a reasonable opportunity of being heard - Order set aside and matter remanded: HC

++ GST - Service of supply, erection, commissioning and installation of ZLD plant followed by services of O&M of the said plant is composite supply of Works Contract classifiable under SAC 9954 and attracts GST @12%: AAR

++ GST - Leasing of property for residential sub-letting would not be covered under the exemption Entry 12 to 12/2017-CTR: AAR

++ VAT - Revenue is clearly barred from directing the original assessment order to be restored on grounds, which were not contained in the original assessment order: HC

++ Cus - When an assessee approaches a higher forum upon being aggrieved by rejection of notification benefit, it is sufficiently implied that the duty has been paid under protest: CESTAT

++ CX - Cenvat credit is allowed in respect of road & drainage system constructed inside factory premises as the same is required for carrying on manufacture process: CESTAT

++ ST - Refund of SBC & KKC is rightly rejected where claimed for period prior to 2016, whereas amendments in Notfn No 12/2013-ST providing exemptions from SBC & KKC came into effect on 03.02.16 & 01.06.16: CESTAT

April 06, 2021

++ Cus - Assessee is eligible for interest on refund amount where Revenue sanctioned refund after over 2 years from date of passing of order: CESTAT

++ CX - Charges of clandestine manufacture must be based on concrete evidence - Such charges cannot be sustained where based on documents recovered from third party's premises & not corroborated by any such evidence: CESTAT

++ ST - Refund claim is rightly rejected where assessee does not make debit of Cenvat credit ledger, as per para 2(h) of Notfn No 27/2012-CE(NT): CESTAT

April 05, 2021

++ GST - If the officer of CT authority initiates action against a taxpayer, administratively assigned to a ST authority, then the CT officers themselves have to further undertake the investigation and take the case to its logical conclusion and 'would not transfer the said case to its state tax counterpart': HC

++ ST - KSFC had paid tax to Practicing CA but not depositing same with exchequer is wilful non-payment - merely because tax was paid before issuance of SCN, it can never be said that penalty cannot be imposed: HC

++ GST - Delayed remittance of refund - Petitioners to be granted simple interest @7% from the date when the shipping bills were filed till the date of actual refund: HC

++ GST - Stay granted of the order passed by the National Anti profiteering authority subject to payment of 50% of the purported profiteered amount: HC 

++ Cus - Non-receipt of OIO - Respondent has scrupulously adhered to the statutory mandate mentioned in s.153 - If the petitioner had left the premises on record due to business loss, he ought to have informed respondent accordingly: HC

++ GST - Supply of application software is supply of 'goods' and is covered under CTH 8523: AAR

++ GST - Services of supervising the handling & transportation of 'agriculture produce' belonging to FCI is classifiable under SAC 9997 and attracts tax @18%: AAR

++ KVAT - Imposition of penalty is discretionary & not mechanical - Penalty need not be imposed where assessee is unable to generate invoice due to compelling personal reasons: HC

April 03, 2021

++ GST - Since voucher is only an instrument of consideration and not goods or services, the same is not classifiable separately but only the supply associated with the voucher is classifiable: AAAR

++ Cus - It would be extremely unfair and unjust not to extend the benefits of MEIS to the writ applicant on the ground that it had exported goods from a non-EDI port: HC

++ VAT - There is no absolute bar for entertaining writ petitions against orders which can also be appealed against: HC

++ ST - Denial of refund on grounds that the assessee did not make any claim for refund, is unsustainable, where the assessee all along maintains its claim for taking Cenvat credit: CESTAT

++ Cus - Import of drones for supply to Police - Goods seized for want of license from DGFT - Such drones were imported for deployment by Police to monitor movement of persons & to ensure better enforcement of lockdown during COVID 19 pandemic & save lives in such process - No purpose served from continued detention: CESTAT

April 02, 2021

++ GST - Services provided by Tamil Nadu Skill Development Corporation is not exempted in terms of 12/2017-CTR - merely because activity is similar to National Skill Development Corporation, benefit cannot be extended: AAR

++ Cus - Warehousing entity cannot be left remediless - Importer cannot be charged with any rent or demurrage but Customs authorities are bound to compensate the warehousing entity: HC

++ GST - S.83 has to be strictly interpreted - It does not provide for delegation or authorization - Provisional attachment of bank account carried out by Joint Commissioner is without jurisdiction: HC

++ ST - Development Compensation Charges - Appellant is popularly known as a 'telecommunication service provider' and not as a 'developer of immovable property' - No franchise service was rendered - demand does not survive: CESTAT

++ Cus - Imported Hollow Tubes not conforming to the definition given in Ch. note 1(p) to Ch.72 are classifiable under heading 7304: CESTAT

++ CX - Services in relation to financing of vehicles manufactured by assessee promotes the sale of vehicles; is an Input service - Credit admissible of tax paid under BAS by TVS Finance: HC

++ Cus - Stock lot - Like Humpty Dumpty in Lewis Carroll's 'Through the Looking Glass', when DGFT uses a word, it means just what it chooses it to mean - neither more nor less: HC

++ VAT - Assessment order imposing penalty on an assessee upon allegations of suppression of turnover, warrants being set aside, where it is passed in ignorance of HC order staying all penalty proceedings against assessee : HC

++ VAT - Burden rests with assessee to establish genuineness of transaction when claiming ITC & such ITC cannot be denied where assessee discharges such onus: HC

++ VAT - Levy of penalty is not automatic, but is discretionary in nature : HC

++ VAT - Trade discount received by a dealer from a manufacturer can be added to taxable turnover of dealer, so as to conclude that dealer wrongly availed ITC: HC

April 01, 2021

++ Cus - Order passed without hearing, quashed - Duty liability paid in its entirety - Prevalence of COVID-19 - Time granted to the assessee to approach Settlement Commission: HC

++ Cus - Contentions advanced are not pure questions of law - It is not proper for Writ Court to go into the disputed questions of fact and this is best left to the Appellate Authority for a decision: HC

++ CX - Not placing the full facts before the Court cannot be accepted as an inadvertent mistake, but is a sheer case of irresponsibility on part of the appellant: HC

++ GST - No opportunity of personal hearing was afforded to the petitioner - on this sole ground, impugned order is quashed: HC

++ GST - Applicant is the recipient of the services and not supplier of such service - no ruling can be sought: AAR