TODAY'S CASE (INDIRECT TAX)

February 27, 2021

++ GST - TRAN-1 - Instead of entering details in col. 7(a), the petitioner erroneously entered the same against col. 7(d) - Respondents ought to have provided in the system itself a facility for rectification: HC

++ Cus - Whether Food Items viz. Masalas are classifiable under CTH 0910 9100 or under 2103 9040 (IGST @12% or @5%) - Importer's representation to be looked into and a speaking order be passed thereon: HC

++ GST - Petitioner submits that SCN not served - In any case, SCN dt. 22.07.19 asks petitioner to file reply within seven days and appear for hearing on 25.07.19 - Order set aside: HC

++ GST - Allegation of fraudulent refund claim - Company is not subjected to any investigation till date - In this view of the matter, notice to banker u/s 79(1)(c) is stayed: HC

++ GST - Proceedings u/s 74 can be said to be initiated only once notice under sub-Section (1) is issued - provisional attachment of bank account u/s 83 of the Act, 2017 is, therefore, set aside: HC

++ GST - Licensing services for right to use minerals including its exploration & evaluation which is classifiable under SAC 9973 37 is covered under residual entry No. (viii) of the Notfn No. 11/2017-CT(R) - Such activity attracts GST @ 18%: AAR

++ GST - Fried Fryums are classifiable under CTH 2106 90 99 of First Schedule to CTA 1975 - GST @ 18% is applicable thereon: AAR

++ GST - Activities of Liaison Office do not amount to supply under GST - As there is no taxable supply, there is no requirement for obtaining GST registration or payment of GST: AAAR

++ GST - It is the professional body of GST practitioners and not any individual taxable person expressing any difficulty in adhering to the extended timeline of filing returns - Bench is not inclined to entertain WP: HC

++ GST - Filing of Annual returns - Non-extension of the time-limit beyond 28.02.2021 would not lead to any extinguishment of right: HC

++ GST - SCN dt. 30.10.20 issued at 4.04 pm asking assessee to furnish reply within 15 days and appear for hearing on 03.11.20 at 4.03 pm - without allowing any adjournment, matter decided on 12.11.20 - Order set aside: HC

++ Cus - Order of enforcement of bond is not a sufficient requirement of pre-deposit - Appellants are required to deposit the requisite amount to pursue appeals: CESTAT

++ Cus - Appeal filed - Appellant seeks stay of the OIO apprehending recovery by Revenue - Board Circular dt. 16.09.2014 is very clear in this regard - no recovery during pendency of appeal: CESTAT 

++ Cus - Order set aside and matter remanded - since no duty/penalty is crystallised, no pre-deposit can be insisted in r/o appeals filed: CESTAT

February 26, 2021

++ Cus - Withholding IGST refund - Allegation of Circular trading; exporting cheap quality glass bangles at highly inflated value - Request of Revenue for more time to complete investigation allowed: HC

++ GST - Availing ITC of 9 crores using fake invoices - CMD and CFO in judicial custody - petitioner submitting that no useful purpose would be served except causing humiliation if other officials arrested - No coercive action till next date: HC

++ CX - Assessee cannot be worse off in its own appeal before the Tribunal: HC

++ CX - Tribunal cannot sustain case of Revenue against an assessee on a ground not raised either in SCN or in OIO: HC

++ ST - Royalty payment to the Government in accordance with the provisions of Oilfields (Regulation and Development) Act, 1948, whether service tax payable - Matter listed: HC

++ ST - Manpower provided to ONGC - 5.42 cr Tax demand issued - Petitioner informs that ONGC has paid the tax, therefore, nothing remains - Revenue response sought: HC

++ GST - Statutory life of an order of attachment of bank account u/s 83 is one year - Bench wants to know whether the respondent intends to extend the same: HC

++ Cus - EDI system does not permit amendment which is specifically permitted in terms of s.149 - benefit, which otherwise a person is entitled, cannot be denied due to lacunae in the electronic system: HC

++ GST - Non filing of returns - Assessee issued SCN proposing suspension of registration - Such action is in keeping with Sec 29 of CGST Act & merits being sustained: HC

++ GST - Attachment - Assessee deposited Rs 19 crores with Revenue - Such amount cannot be retained without issuing SCN u/s 73 & 74 of CGST Act in time-bound manner: HC

++ JVAT Act - Realisation of tax or money without authority of law is bad u/Art. 265 of Constitution of India: HC

++ Cus -  Bench  fails to understand as to why the department brings out their argument in piece-meal - connected appeals to be listed together: CESTAT

++ Cus - Appeal does not involve classification/valuation matter and amount involved is less than Rs.50 lakhs - to be heard by SMB: CESTAT

February 25, 2021

++ GST - Suspension of GSTIN stayed - respondent directed to allow petitioner to conduct transactions: HC

++ GST - Challenge to the Anti-Profiteering provisions and order of NAA - Stay ordered from recovery subject to petitioner paying the entire amount demanded in six EMIs: HC

++ ST - SVLDRS - Visibility of returns on GST portal - Technical infraction at the end of Respondent cannot be a ground to deprive Petitioner the benefit of the scheme: HC

++ ST - SVLDRS, 2019 - s.129(2)(b) of FA, 2019 - Whether the words 'same matter', 'different matter' are to be interpreted liberally or restrictively - Matter listed: HC

++ GST - Any appeal can be made only against the original order which will be read together with the correction made in the rectification order - doctrine of merger does not apply: AAAR

++ GST - Order passed by AAR in the matter of a ROM application is not an appealable order u/s 100 of the CGST Act, 2017: AAAR

++ GST - Renting of e-bikes (Miracle)/bicycles (Move) without operator is classifiable under SAC 9973; attracts GST @5%, 12% respectively: AAAR

++ GST - Terms 'Betel nut' and 'Areca nut' are the same and used interchangeably - 'Nizam Pakku' attracts GST @5% and not @12%: AAAR

++ Cus - Permitting redemption of Traveller's Cheques, based on Tribunal's decision which was subsequently reversed, is unsustainable: HC

++ CX - Appellants have been seeking adjournments for hearing early hearing application over the past six months - Avoiding hearing - Casual approach goes contrary to request - Application dismissed: CESTAT

++ ST - If  department was of the view that order had been served when it was issued, they should have proceeded to recover the sums due, after expiry of appeal period - Having stayed mum indicates that order was not served: CESTAT

++ CX - SVLDRS-4 issued by competent authority - Appeals, therefore, are dismissed as deemed to be withdrawn: CESTAT

February 24, 2021

++ GST - It is established that on the issues raised, the Central Tax authorities have initiated proceedings and the same is pending - Application rejected: AAR

++ GST - Applicant MCGM is recipient of services and not supplier of services, hence their application is not maintainable: AAR

++ ST - SVLDRS - Petitioner, in his statement had admitted ST liability of Rs. 6 crore - declaration rejected on the ground that amount of tax dues was not quantified, however, after rejection, SCN issued demanding ST of Rs. 6.13 crores - Order is unjustified, set aside: HC

++ Cus - Refund without challenging self-assessment order - Whether decision of SC can be applied retrospectively to those cases where refund had already been granted - Stay ordered of recovery proceeding: HC

++ GST - Petitioner unable to dispense salary to 15000 employees and discharge statutory dues because bank accounts have been attached - Revenue to file status report: HC

++ CX - Appellants have been issued with discharge Certificate SVLDRS-04, therefore, appeals filed are disposed of: CESTAT

++ ST - Site Formation & Clearance Excavation & Earth Moving & Demolition Services - Exemption under Notfn No 25/2012-ST was not allowed due to assessee's legal counsel omitting to point out relevant entries before the Revenue - Case remanded for re-consideration: CESTAT

++ VAT - Steps for recovery of disputed tax cannot be initiated by Revenue before expiry of period of second appeal u/s 49 of Puducherry Value Added Tax Act, 2007: HC

February 23, 2021

++ NDPS - Court is unable to accept that there are no doubts as to the recovery of 180 grams of Heroin from the premises in question - NCB has failed to meet the standard of proof for convicting the appellant: HC

++ ST - SVLDRS - No acknowledgment or admission by petitioner of its service tax liability, for the period under investigation, prior to 30.06.2019 - Declaration rightly rejected: HC

++ ST - Tribunal could not have closed the case for the purpose of 'statistics' but should have kept the appeal pending awaiting the orders to be passed in the writ petitions: HC

++ Cus - A more informed decision could have been arrived at if an opportunity of personal hearing had been granted - Matter remanded: HC

++ GST - Taxability of mobilization advance - Due to divergence of opinion between AAAR Members, issue is not answered and u/s 101(3), it is deemed that no ruling is issued: AAAR

++ GST - Thermal spray or metal coating using metal powders, carbide powders - Work undertaken amounts to job work and is a supply of services meriting classification under SAC 998873 - attracts GST @12%, 18%: AAR

++ CX - Tribunal erred in considering the finalization of prices between appellant and oil companies as relevant date for claiming refund - it should have been date of finalization of order of assessment by AC, CX: HC

++ ST - Mining Service - Value of goods supplied free of charge by service recipient to provider of taxable service, is outside purview of taxable value of gross amount charged u/s 67 of FA 1994 - No service tax leviable on value of goods supplied free of cost: CESTAT

February 22, 2021

++ GST - Clearing agent, while shipping goods from Customs station, generated E-way bill in which, erroneously entered its own name in the column of consignee - clerical error, warranting minor penalty: HC

++ GST - Fried Fryums is not Papad - attracts GST @18% under TI 2106 9099 : AAR

++ GST - 'Fusible Interlining cloth for cotton fabrics' is correctly classifiable under Heading 5903 and not under Ch. 52/55: AAR

++ Cus - Interrogation - Advocate allowed to be present at a visible but not audible distance and the entire proceedings videographed : HC

++ Cus - s.114A - Language employed by the legislature is plain and unambiguous - word 'or' cannot be interpreted as 'and': HC

++ CX - Refund of Rs.39.65 lakhs held admissible - Revenue filing appeal before High Court but requesting for withdrawal as the amount is below the prescribed monetary limit - appeal allowed to be withdrawn: HC

++ GST - Petitioner allowed to operate his bank account by maintaining a minimum balance of Rs.22 lakhs and which was the amount lying at the time of attachment: HC

++ Cus - Allegations of smuggling of gold - Petition is premature as it is filed at the stage of SCN: HC

++ Cus - Imposition of penalty u/s 112 in place of s.114A - modification has put the Appellants in a more advantageous situation and it was not prejudicial to their interest: HC

++ Cus - SCN - Demand - There is no period of limitation for violation of post import obligations: HC

++ Cus - Order for provisional release ought not to have been passed in the absence of any request from the side of the importer: HC

++ Cus - 36 pages SCN itself would weigh 110 gms and if all the 24 RUD had been enclosed, the weight would have been much higher and that would have been reflected in the stamp value also - non-furnishing of RUD proved: HC

++ CX - Non-duty paid goods supplied but CENVAT credit passed under invoice showing duty payment - clear violation of the Rules, therefore, penalty rightly imposed u/r 25: HC

++ GST - Allegation of wrongful claim of ITC - Petitioner submits that there was an actual movement of goods which is established by toll naka receipt and if correlation exercise is undertaken, demand falls below Rs.5 crore; offence is bailable - Bail allowed: HC

February 20, 2021

++ GST - Anti Profiteering - Glenmark Pharma's challenge to validity of Sec 171 of CGST Act & constitution of NAA - Matter listed for hearing on Mar 25: SC

++ CX - Revenue's appeal delayed by 724 days due to late receipt of order being appealed against & COVID-19 lockdown - Delay condoned: SC

++ ST - It is trite law that duty demand confirmed under one heading cannot be sustained under a different heading - Duty demanded under Works Contract Service for period post 01.06.2007 is set aside: CESTAT

February 19, 2021

++ GST - AAR is presently not functioning as quorum of two members is not complete - Bench makes a request to Hon'ble Lieutenant Governor to take up matter on priority basis and process the nomination received from CBIC at the earliest: HC

++ GST - s.52(3) - Collection of Tax at Source - Grievance - Errors in the common portal - GSTN officer to assist Petitioner in filing and uploading statement on the online portal: HC

++ Cus - IEC placed under the Denied Entity List of DGFT - Joint Director General, DGGI, Zonal Unit, Ahmedabad to immediately look into the representation and take decision: HC

++ Cus - Expression used in s.114A is 'or' which is disjunctive between duty or interest - further use of expression 'as the case may be' clearly suggests that aforesaid provision refers to two different persons and two different situations: HC

++ Cus - Penalty equivalent to duty and interest cannot be imposed u/s 114A: HC

++ Cus - Penalty u/ s.114A - OR cannot be read as AND - Circular 61/2002 cannot be contrary to the plain language of the provision: HC

++ GST - Serious allegations of physical violence, torture, coercion etc.; recovery of amounts in crores by way of DRC-03 - Officers should act and perform their duties within the four corners of law: HC

++ GST - IGST Refund - Inadvertent mistake on the part of writ applicant to declare in shipping bills that it had availed higher drawback - Respondent to immediately look into the claims and pass order within six weeks: HC

++ ST - Communications issued by Revenue in course of investigation into services being provided by assessee, cannot be quashed by the high court: HC

++ GST - Directions for attachment of bank account & forwarding of bank guarantee to Revenue, set aside in view of Sections 78 & 107 of CGST Act: HC

++ ST - Rule 3 of Export of Service Rules 2005 - As per settled position in law, rebate is admissible in respect of service tax & cess paid upon export of service: CESTAT

February 18, 2021

++ SVLDRS - Filing of separate declaration is not even a condition whereas it is sort of procedure - no prejudice is caused to the revenue by filing of single declaration: HC

++ SVLDRS - It is settled law even under taxation that if a person is eligible to one or another benefit, he should not be denied said benefit on procedural or technical grounds: HC

++ SVLDRS - Single declaration, instead of multiple, in respect of a single appeal filed before CESTAT against an O-in-O covering multiple SCNs, has to be accepted by Designated Committee: HC

++ NDPS - At the stage of bail, factual matrix of the case cannot be looked into: HC

++ NDPS - Quantity of contraband (charas) allegedly recovered from both the accused being more than 1 Kg., rigors of Section 37 applies: HC

++ ST - SVLDRS - Admission of net service liability of Rs.40 to 45 lakhs broadly corresponds to figure disclosed in declaration i.e. Rs. 43.32021-TIOL-410-HC-P&H-ST7 lakhs - no reason to reject declaration on ground that liability was not quantified: HC

++ SVLDRS - Difficulty in accessing portal of the scheme since it came to an end on 30.06.2020 - such technical issue can be and should be sorted out by department: HC

++ VAT - Benefits already granted to power company as promised under Policy cannot be withdrawn retrospectively in light of change of opinion of State government: HC

++ GST - No obligation on CBIC to reply to each and  every representation/communication sent to it - Petitioner cannot turn to CBIC and seek legal opinion: HC

++ ADD - Appellant has been thoroughly negligent - Inspite of having all the resources to take recourse to legal proceedings, for no justifiable reason, they did not challenge the Customs Notification - Delay cannot be condoned: CESTAT

++ CX - Refund of accumulated credit u/r 5 of CCR 2004 is admissible only if claimant establishes actual & physical export of goods cleared for export under bond or against a letter of undertaking: CESTAT

February 17, 2021

++ COFEPOSA - Forensic examination of mobile phone was undertaken whereafter documents retrieved therefrom were studied and analysed - it cannot be said that there was any inordinate delay in passing detention order: HC

++ GST - Non-Woven Bags manufactured using Non-Woven fabric manufactured from Fiber grade poly propylene granules merits classification under HS code 3923, @18%: AAR

++ GST - 'Fusible Interlining Fabrics of Cotton' is correctly classifiable under Heading 5903: AAR

++ ST - Interest paid during investigation should be reckoned in computing amount payable under SVLDRS, 2019 - hyper-technical objections would frustrate the scheme: HC

++ Cus - Application seeking cross-examination of witness and supply of documentary evidences, being the facet of principles of natural justice shall be decided before passing O-in-O: HC

++ GST - Fraudulent ITC availment - DGGI, HQrs and Zonal agencies in the fray - who should investigate? - Matter listed: HC

++ GST - No recovery in any mode by cheque, cash, e­payment or adjustment of ITC should be made at the time of search/inspection proceedings under any circumstances: HC

++ GST - s.67 - Forced and threatened to transfer amount of Rs.2.68 crore by way of DRC-03 - No wonder, Gujarat has topped the list of States with the highest collection of tax - Notice issued: HC

++ GST - In the absence of any attempt on part of appellant to seek recourse to the remedy available with the establishment that maintains the portal, appellant cannot seek remedy of a writ of mandamus: HC

++ GST - Rule 86A - Blocking of electronic credit ledger - Petitioner should subject himself to the proceedings initiated u/s 73 since it is not proper for Writ Court to enter into merits of controversy at this stage: HC

++ ST - At the time of entertaining refund claim, the issue of admissibility of cenvat credit cannot be raised: CESTAT

February 16, 2021

++ GST - Sec 138 - Use of word 'shall' conveys legislative intent that once compounding takes place, no further proceedings can be initiated against the accused for the same offence: HC

++ GST - Exercising power of arrest is unwarranted at pre-trial stage & where formal charges are not been made - Courts must strike balance between need for custody & personal liberty of accused: HC

++ GST - Circular trading - fraudulent ITC - Summons makes it succinctly clear that petitioners are  required to tender oral evidence and produce certain documents - Petitioner's apprehension that he would be arrested is not well-founded: HC

++ ST - CESTAT LB has held that Insurance service provided by Deposit Insurance Corporation to the banks is an 'input service' - Order denying credit set aside: HC

++ GST - Different officers appointed u/ss 3 & 6 are independently investigating altogether different matters, in accordance with law, without any overlapping - not hit by s.6(2)(b) - Petition dismissed: HC

++ GST - Statutory time period for keeping the bank account attached would come to an end and would get defreezed by efflux of time: HC

++ GST - Solid waste management service provided to Notified Area Authority, Vapi is not exempted since it cannot be considered as Pure Services: AAR

++ GST - Applicant cannot expect the Advance Ruling Authorities to answer or to decide on hypothetical questions: AAR

++ GST - Applicant seeks a ruling as to whether the services proposed to be rendered qualify as 'Export of Services' - 'place of supply of services' does not find mention in s. 97 - application rejected: AAR

++ CX - Royalty, whether liable to be included as a part of the assessable value u/s 4(3)(d) of the CEA, 1944 - Revenue in appeal - Notice issued: SC

++ Cus - Contempt proceedings cannot be initiated where no directions were given by this court to release the detained goods in question: HC

++ GST - Blocking of credit ledger - Revenue directed to pass reasoned order while also satisfying mandate of Rule 86A: HC

++ CST - The Writ Court must follow same procedure for subsequent AYs when identical case in favour of same assessee has been adjudicated upon for earlier AY: HC

++ ST - Entire dispute arose on account of wrong interpretation of the provisions of FA, 1994 - lower authority has not disputed bonafide pleadings of appellant, but penalty is levied as if it is automatic; cannot sustain: CESTAT

++ ST - Appeal abates upon the appellant passing away, unless application for continuation is filed by legal heirs - Tax dues cannot be recovered from heirs of deceased assessee, where assessee's business is not devolved to the legal heirs: CESTAT

February 15, 2021

++ CX - Where exemption is intended for encouragement of specified sectors, activities or areas, the interpretation of such provisions should be liberal and not narrow: HC

++ GST-TRAN-3 - Respondents directed to enable petitioner to claim ITC either by permitting petitioner to upload form on web portal or by collecting hard copies: HC

++ Cus - Earlier prayer seeking provisional release pending adjudication of SCN was rejected by Division Bench, whereas present prayer is for absolute return - No legal distinction is made out between the two reliefs sought - petition dismissed: HC

++ GST - Assessment order is not deemed to have been withdrawn due to non-filing of valid return - appeals filed suffered un-condonable delay, rightly rejected: HC

++ GST - 'AAYUDH-MOSX' is a mosquito repellent and classifiable under CH 3808 91 91 attracting GST @18%: AAR

++ GST - Non Woven Bags manufactured through intermediate product Non-Woven plastic material is 'plastic bag' classifiable under CH 3923 @18% GST: AAR

++ GST - Refund of IGST paid on goods exported / supplied to Nepal - applications pending since July 2020 - Respondent directed to take a decision within a month: HC

++ GST - EC, SHE Cess and KKC were not subsumed in new GST Laws, either by Parliament or by States and, therefore, question of transitioning them into GST Regime cannot arise: HC

++ CX - Where goods are not sold & supplementary invoice is raised, Rule 9(1)(b) of CCR 2004 cannot be invoked to deny Cenvat credit: CESTAT

++ ST - Rejection of refund application is sustainable where it is filed beyond the period prescribed u/s 102(2) of the Finance Act: CESTAT

February 13, 2021

++ ST - Hire-purchase - For the period prior to 01.03.2006, interest on loan is not taxable in the absence of mechanism for bifurcation of service: HC

++ ST - Software repair and maintenance service is taxable with effect from 01/06/2007 and not earlier: HC

++ GST - Starbucks coffee - Challenge to order of NAA - Petitioner directed to deposit entire profiteered amount of Rs.1.04 crores within four months, in equal monthly instalments: HC

++ GST - Challenge to the vires of s.171 of the Act - Profiteered amounts computed by Authority to be deposited by petitioners in three/six equal monthly instalments: HC

++ GST - Whether franchisor can be liable for anti-profiteering; whether they can be enquired with respect to all franchisees operating in India - Petitioner to place agreement copy: HC

++ GST - Petitioner states that complaint was only qua power banks but investigation was suo moto expanded to DSLR Cameras and profiteered amount calculated accordingly - Bench is not inclined to grant stay subject only to deposit of amount computed qua power banks: HC

++ Cus - Permitting re-export of jewellery - If the respondent who passed impugned order had lacked competency, case shall be re-heard on merits by a person having competence: HC

++ Cus - Cross-examination of witnesses whose statements are relied upon by the Department, must mandatorily be allowed to the assessee, in terms of Sec 138B of Customs Act: CESTAT

++ ST - CoD - Filing of application does not per se absolve such delay, more so where no plausible explanation for such delay is provided: CESTAT

February 12, 2021

++ Cus - Conditions for provisional release of seized goods are not only harsh and oppressive but also amounts to prejudging as to what the adjudicating authority would do upon adjudication: HC

++ Cus - Jurisdiction of Court under Article 226 cannot be abused by converting it into a Civil Court to order compensation for alleged loss of seized goods from bonded premises: HC

++ CX- Applicability of Doctrine of mutuality - no clear finding - Judgment does not stand the test of judicial scrutiny, same is set aside and matter restored to the file of High Court: SC

++ ST - SVLDRS - Admission of tax liability during inquiry, investigation etc. - not necessary that the figures should have mathematical precision or should be same as the subsequent quantification in the form of SCN post 30.06.2019: HC

++ GST - A statute is not open to attack on the ground that it taxes some persons or objects and not others: HC

++ GST - It is well settled that a State does not have to tax everything in order to tax something and it is entitled to pick and choose: HC

++ GST - Composition Scheme - Ice cream season has just begun - GST Council to reconsider exclusion of small scale manufacturers of ice cream from the benefit of Section 10(1): HC

++ GST - Transaction allegedly entered through a broker who is untraceable - purported supplier is not admitting the transaction with writ applicant - provisional release of goods ordered upon deposit of tax and penalty: HC

++ NDPS - Since the new passport has now been issued, the old passport shall now be treated as cancelled - Conditions contained in order dated 25th November, 2019 shall continue to apply: HC

++ GST - ITC Refund - Payments received from foreign buyers are transferred to account of suppliers via-online, therefore, it is wholly misconceived that suppliers are non-existent - anticipatory bail granted: HC

++ VAT - In absence of any challenge to Original Order, it does not merge with Appellate Order in a case where Rectification Order is passed at instance of Assessee: HC

++ NDPS - Bail - Smuggling of Dry Khat leaves - Applicant is not habitual offender & holds Refugee Certificate issued by UNHCR - Bail application allowed: HC

++ GST - Vires of sub-rule (10) of Rule 96 of Rules, 2017 challenged - Interim relief granted: HC

++ CST - Appeal rejected on the ground that assessee was not interested in legal remedy; however, fact is that hearing date was not at all communicated - Matter remanded: HC

++ ST - Divisions & units of a company are not separate legal entities - Hence, assessee as ISD is entitled to distribute credit of service tax paid on service rendered exclusively to any one particular unit: CESTAT

++ Cus - Imported beverages described as Carbonated Beverage with Fruit Juice, are rightly classified under CTH 22029920, considering that both carbonated beverage & fruit juice contribute to the essential character of such item: CESTAT

February 11, 2021

++ NDPS - Appellant apprehended with 11 Kgs of Ganja - As offence is committed before NDPS Act came into effect, punishment must be as per unamended provision of Sec 20 - RI sentenced reduced: SC

++ Cus - s.28AAA - Bench is of the prima facie view that SCN is not time barred - Writ petition is premature as petitioner is yet to file reply to the SCN: HC

++ Cus - Import of Konica Nice Print System for personal use - No recurring effect - Revenue appeal dismissed on ground of low tax effect: HC

++ ST - SVLDRS - Personal hearing granted would be an empty formality if an authority relies upon a document, which is adverse, without furnishing a copy to the person concerned: HC

++ CX - Restrictions imposed by the Scheme of Budgetary Support under GST - Allegation of reneging on earlier promises - Grievances have been soundly quelled by Apex Court in all respects in VVF Ltd. - Petition dismissed: HC

++ Petition to challenge the Audit by CGST adjourned sine die: HC

++ Cus - Without affording any opportunity to meet the purported deficiency, clearance has been refused - Goods to be released on obtaining an indemnity bond: HC

++ GST - Physical violence and torture of employees; switching off of CCTV cameras by respondents - one more matter amongst many that have come up in last one week - disturbing trend: HC

++ GST - Fabrication of tank from steel plates supplied free of cost by M/s IOCL is manufacture - supply is of 'goods' and correct classification is HSN 7309 @18% GST: AAR

++ Cus - That the Customs Broker concerned is an experienced person & has prior knowledge of defective goods, is per se insufficient reason to allege mala fide intent to mis-declare imported goods: CESTAT

++ Cus - Customs Broker cannot be penalized for handling import of goods, some of which are later found to be defective, where all invoices, high-seas agreements & test certificates mention the goods to be of prime quality: CESTAT

February 10, 2021

++ SVLDRS - If declarant does not agree with tax payable as computed by Designated Committee, such declarant has to be given a hearing: HC

++ ST - Factual position is that appellant had not collected/realised any amount from their clients separately towards service tax - Order of Tribunal confirming penalty u/s 78 is contrary to facts, hence set aside: HC

++ Cus - State and its authorities are not expected to act in a Shylockian manner and squeeze money from its citizens: HC

++ CX - There is nothing in the Rules which would automatically and without any additional reasons dis-entitle an ISD from availing CENVAT credit unless and until such registration was applied and granted: HC

++ GST - Revocation of cancellation of registration - Technical issues - GSTN directed to cooperate and see to it that the problem is solved: HC

++ CX - Appeal filed against order of CESTAT - based on findings of Tribunal, SCNs issued - such SCNs to be kept pending till appeal of assessee is decided: HC

++ GST - One thing is for sure that no opportunity of personal hearing was given before passing impugned order - Section 75(4) of the Act makes it abundantly clear that an opportunity of hearing has to be given: HC

++ Cus - Conversion of shipping bill - Tribunal held that Circular cannot prescribe particular time period, which is otherwise not provided in the statute (s.149) - no error in this order: HC

++ Cus - Import of Nutrition supplements - Evasion of huge amount of customs duty by resorting to undervaluation; accused person still at large - no case for grant of bail: HC

++ Cus - Amendment of BoE - Bench sees no valid reason or justification for non-compliance to such order of the appellate authority, directs carrying out o-in-a within seven days: HC

++ GST - Ad interim relief already granted by directing release of goods under detention - nothing remains to be done now: HC

++ GST - Attachment of escrow account - 97% of receipts received in the account belong to petitioners and against whom no proceedings have been initiated - excepting Rs.5 lakhs, attachment lifted: HC

++ GST - Unavailability of Appellate Tribunal is causing serious prejudice to the rights of aggrieved persons - GSTAT may be made functional from 01.04.2021: HC

++ ST - Cenvat credit is allowed in respect of service tax paid for installation of pipelines for transportation of gas: CESTAT

++ Cus - Provisional release - Furnishing bond of total value of goods along with bank guarantee of 50% of total duty is sufficient to obtain release of goods: CESTAT

February 09, 2021

++ ST - SVLDRS, 2019 - All that would be required for being eligible is a written communication which will include a letter intimating duty demand or duty liability admitted by person concerned during inquiry, investigation or audit: HC

++ ST - SVLDRS, 2019 - Although final audit report may be post 30.06.2019, admission of tax dues by petitioner was certainly prior to cut-off date of 30.06.2019 - rejection of declaration unjustified: HC

++ Cus - Unless and until notification u/r 18 is issued, anti-dumping duty does not take effect - Writ petition challenging final findings issued u/r 17 is dismissed as being pre-mature: HC

++ ST - Until further orders, payment of - service tax for grant of Mining Lease/Royalty shall remain stayed: HC

++ Cus FA, 2018 - Sea-change in s.110(2) - Order of extension has to be made within six months from date of seizure, but it is to be served only within extended period: HC

++ NDPS - An illegal search does not entitle the prosecution to raise a presumption u/s 54 of the Act: HC

++ NDPS - Not maintaining the case diary vitiates the entire investigation: HC

++ ST - Rule 5(1) of Valuation Rules, 2006 - Advertisement expenses incurred by franchisee, whether liable to service tax - Revenue appeal admitted after condoning the delay: SC

++ GST - Contract for dredging of Wular Lake awarded to applicant - taxable @5%: AAR

++ GST - Applicant seeks to know as to whether RWA can charge GST on combined value of Maintenance when the fact is that applicant has bought three separate residential units - as applicant has not supplied any service, application rejected: AAR

++ ST - Denial of Cenvat credit on service tax paid, under reverse charge mechanism, for import of services during period prior to 18.04.2006, is not sustainable: CESTAT

++ CX - There is no bar to using accumulated Cenvat credit for payment of Excise duty, even during period of alleged default in duty payment for clearances made: CESTAT

February 08, 2021

++ Cus - Tribunal order is cryptic and suffers from the vice of non-application of mind since it has not adverted to the submissions made: HC

++ GST - Diagnostic and treatment services rendered to Hospitals/Laboratories/Biobanks registered in US of A and other countries is exempted: AAR

++ For providing manpower services, GST @18% cannot be paid merely only on the 'service charges' but on the total billed amount: AAR

++ Cus - Import of MFD - Appropriate decision as regards plea for provisional release of goods should be taken by respondent within a period of eight days: HC

++ Cus - Remedy of appeal under the Customs Act cannot be bypassed by entertaining the writ petition: HC

++ GST - Detention on the ground that the transportation was not accompanied by a valid e-way bill cannot be said to be unjustified: HC

++ GST - Location of the lawyer cannot at all be a reason for the department to carry out proceedings at a particular place: HC

++ GST - It is for the Department to decide which of its officers should continue the proceedings and the assessee cannot have a choice in the matter: HC

++ VAT - VAT duty liability cannot be evaded where assessee is clearly been shown to be carrying out business operations: HC

++ CX - Valuation - Duty demand raised under extended limitation is not sustainable where the Department is at liberty to examine correct valuation in normal course, but does not do so: CESTAT

++ ST - Execution of composite contracts are taxable as Works Contract w.e.f. 01.06.2007 - Thereby, demand raised under CICS for period post 01.06.07, is unsustainable: CESTAT

February 06, 2021

++ GST - Balance of CGST and SGST got artificially inflated as a result of appropriation of IGST credit - Respondents directed to refund accumulated ITC Rs. 3,37,79,196/-: HC

++ ST - SVLDRS, 2019 - Quantification - All that would be required for being eligible is a written communication which will include a letter intimating duty demand or duty liability admitted by the person concerned during inquiry, investigation or audit: HC

++ Cus - Due to efflux of time, Bench is of the view that it may not be necessary to adjudicate the appeals and decide the substantial question of law - Appeals disposed of: HC

++ Cus - When the goods remain seized or detained by Customs and petitioner is not able to clear them, he should not be charged any rent or demurrage for the said period: HC

++ Cus - Seizure of vehicle - Issuing corrigendum after the High Court had taken cognizance of the grievance of the petitioner renders such action highly questionable: HC

++ GST - INS-03 - Order of prohibition outlives its life if no notice is issued within six months or extended period - articles seized to be returned: HC

++ GST - Very same invoice and E-way bills were used multiple times - Notice in form GST MOV-10 - If final order of confiscation is passed, applicant can prefer appeal u/s 107: HC

++ GST - Petitioner impugns notices issued u/s 129 of the Act - remedy lies in approaching the first respondent by offering a bank guarantee and seeking release of goods and vehicle: HC

++ Cus - Cut and polished diamonds sought to be exported were seized - Commissioner to pass order(s) for provisional release of the exportable goods u/s 110A: HC

++ GST - Shocking - detention for 33 hours - It is no wonder that Gujarat has topped list of States with highest collection of tax for the year 2020-21 - applicant coerced and pressurized to deposit Rs.9 crores: HC

++ ST - Refund - For processing of refund claims, assessee debited amount from ITC ledger - Hence, no case for cash refund of amounts debited from ITC ledger: CESTAT

February 05, 2021

++ Fake invoices beneficiaries L&T and Rama Krishna Electro Components have voluntarily deposited Rs.22 crores and 7 crores res. - since it is not possible for DGGSTI to file complaint within 60 days, petitioner entitled to default bail: HC

++ GST - Goods and conveyance ordered to be released - Matter at stage of MOV-10 - If final order of confiscation is passed, writ-applicant has remedy to file appeal: HC

++ GST - It is for the applicant to make good his case that the SCN, issued in Form GST MOV-10, deserves to be discharged, by relying upon the decision in Synergy Fertichem : HC

++ VAT - There is no legal justification for withholding amount which is otherwise refundable to assessees: HC

++ GST - Merely because something surfaced against applicant in the course of 'any other inquiry', same will not confer jurisdiction to invoke s.83 and freeze bank account: HC

++ Applicant is liable to discharge GST @ 18% under forward charge mechanism on supply of manpower services to Kuvempu University, Shivamogga: AAR

++ Services provided are not in connection with the diagnosis or treatment or care for illness but is related to support services for research; not healthcare services - attracts GST @18%: AAR

++ Cus - Fraudulent availment of drawback by exporting sub-standard and highly overvalued goods - SCN issued - Authorities concerned to decide the claim of the petitioner expeditiously: HC

++ Cus - Import of old and used digital multifunction print, copying and scanning machines - Supreme Court has consistently taken a view in favour of provisional release in such cases: HC

++ GST - Ex- parte order - Petitioner was suffering from 'Infective Hepatitis' and was advised bed rest - Later, due to COVID pandemic, petitioner lost sight of proceedings - Matter remanded: HC

++ GST - If the final order of confiscation is passed u/s 130, then the writ-applicants will have the remedy to file an appeal u/s 107 - Application disposed of: HC

++ GST - Proceedings at the stage of SCN - It is for the applicant to make good his case that the SCN issued in Form GST-MOV-10, deserves to be discharged: HC

++ ST - Assessee imported baking ovens & held exclusive control over them - Such transaction qualifies as deemed sale by foreign company & will not attract service tax under Supply of Tangible Goods for use - Duty demand quashed: CESTAT

++ CX - Area-based exemption - Claimant's factory not located in that Khasra Number as specified in the Notfn, due to the relevant area later being transferred to another tehsil - Denial of exemption on this ground alone is unsustainable: CESTAT

February 04, 2021

++ GST - Petitioner seeks quashing and setting aside of notice issued u/s 171 by Director General of Anti-Profiteering - Respondents to file counter affidavits - Matter listed: HC

++ GST - Freezing of bank accounts - Form GST DRC-22 - Petitioner to take recourse to the remedy available under rule 159(5) of CGST Rules: HC

++ GST - Form GST MOV-10 - Wrong Pin Code in E-way bill - Bench cannot interfere at the stage of investigation - Applicant to deposit amount towards the tax and penalty for release of goods and vehicle: HC

++ GST - Form GST INS-02 - Once the SCN is issued to the party concerned, the documents/records, which have not been relied upon, should be returned: HC

++ GST - Matter is at stage of MOV-10 - If final order of confiscation is passed u/s 130, then writ-applicant will have remedy to file an appeal u/s 107: HC

++ CX - Miscellaneous appeal filed by Revenue allowed to be withdrawn since the tax effect is less than the threshold limit: HC

++ ST - Refund - Procedure for filing of physical FIRCs has been done away with and exporters were required to use only e-FIRCs/IRM to evidence exports - SCN ought to have been issued so as to give the assessee a chance to plead their case: HC

++ Cus - Contention that Petitioner should be relegated to forum of civil court for obtaining relief is unacceptable - respondent being a GOI enterprise has to act in a responsible manner: HC

++ CX - Availing CENVAT credit without payment of CVD was done by an employee of Company and it was a bona fide mistake - such finding of Tribunal in dropping penalty cannot be termed perverse: HC

++ ST - Re-insurance services - CENVAT credit can be availed thereon even after amendment of definition of 'input service' in 01.01.2011: CESTAT

February 03, 2021

++ Greenfield project - Capital Subsidy received is liable to be included in the Transaction Value for the purpose of calculation of GST: AAR

++ GST - DG GSTI investigation - Advocate of the petitioners are allowed to be present during interrogation of the petitioners: HC

++ Appeal remedy available - Bench is not inclined to cause indulgence; declines to turn the legislative command into a dead letter by entertaining the writ petition: HC

++ Entry Tax - Interpretation of statute - words in singular are to include the plural and vice versa, unless they violate context of words' usage: SC

++ Creation of bogus firms, fraudulent ITC availment and refund claim - merely because petitioner is in custody and no interrogation is done does not entail grant of bail: HC

++ Investigation is not yet over - petitioner remained behind the smoked screen by withholding identities - veil created needs to be pierced - fact that petitioner may tamper with evidence cannot be lost sight of: HC

++ Bail cannot be granted solely on the ground that vires of Sections 132 and 69 of the CGST Act are under challenge: HC

++ GST - Rule 86A of Rules, 2017 - Blocking Input Tax Credit in Electronic Credit ledger - efficacious alternate remedy u/107 available - Matter listed: HC

++ CA in partnership firm served demand notice for recovery of Service Tax in respect of remuneration received - Proceedings Stayed: HC

++ GST - For purpose of inquiry or investigation, trucks may not be kept in the custody of department - open for writ applicant to use the two trucks in his normal course of business - undertaking to be given: HC

++ GST - Petitioner challenges the constitutional validity of Section 16(4) of the CGST Act - Notice issued: HC

++ GST - Attachment of immovable property in lieu of bank accounts - Revenue shall consider the proposal and if so required, investigate, and verify title, ascertain value and marketability of immovable property: HC

++ Cus - Seizure of Gold coins which were in circulation at time of British rule in India, is unsustainable, where inscription on such coins shows them to be of Indian origin - Such coins cannot said to be of foreign origin & presumpton u/s 123 of Customs Act is inapplicable: CESTAT

++ ST - Appeal filed within limitation cannot, cannot be dismissed on grounds of time bar - Matter remanded for re-consideration: CESTAT

February 02, 2021

++ Rule 112 of CGST Rules does not allow for additional evidence to be led at the instance of the respondent in appeal: HC

++ GST - Construction of Bungalow - Challenge to  Entry No. 3(if) of 11/2017-CTR - A pplicant has been able to make out a strong prima facie case to have an interim order in his favour: HC  

++ Green Field Public Street Lighting System - Since principal supply is supply of goods and not 'supply of service', concessional rate of tax under 11/2017-CTR is not applicable: AAR

++ Composite supply - Energy efficient  Greenfield  street lighting system - principal supply is a 'supply of goods' and, therefore, GST will have to be paid on goods  at appropriate rate: AAR

++ Capital subsidy received/receivable by applicant is actual cost incurred by project SPV, hence  includible in Transaction Value for purpose of calculation of GST: AAR

++ GST -  Structure built with Iron/Steel Pillars tightened up with Nuts and Bolts and specially created for functions would be treated as Immovable property - no ITC: AAR

++ GST - If the article cannot be used without fastening or attaching it to the earth and it is 'not removed under ordinary circumstances', it may be considered permanently fastened; immovable property: AAR