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PM, V-P to hold straight talk with All States’ Governors on worsening COVID-19 situationJustice Chandrachud inaugurates portals for judgements, e-filing 3.0Indian industrial output contracts 3.6% in FebUnidentified gunman shoots dead oner person & seriously injures another in Paris hospitalMarch retail inflation rises to 5.52%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%: AARGST - 'Polypropylene Non-woven Bags' is classifiable under HSN 3923 at 18% and not at 5% under 6305: AARIndian regulator grants nod to Russian Sputnik V vaccineGST - '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: AARMassive blaze at Russia’s historic St Petersburg factory; dozens evacuatedST - 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: HCCus - 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: HCPresident Kovind discharged from AIIMS after bypass surgeryGST - 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: HCSoaring COVID-19 cases - Drug Inspectors to monitor stocks of RemdesivirVAT - Bill of Entry cannot be regarded as title to goods as per provisions of Customs Act: HCI-T - Provisions of sec. 2(22)(e) are not applicable when assessee is not a shareholder: ITATRising COVID-19 cases - India embargoes export of Remdesivir and its API
Untitled Document

TODAY'S CASE (INDIRECT TAX)

Taxindiaonline.com



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