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I-T - Due dates for filing of audit reports & ITRs cannot be delayed indefinitely, on whims & fancies of taxpayers: HCGST - Cross-empowerment - In case the action of State and Central Authorities is overlapping, Petitioner would be at liberty to take action to impugn the same in accordance with law: HCCus - In absence of challenge to the certificate issued by APPCB and refusal of petitioners to implead APPCB as a party respondent, it would not be appropriate to adjudicate on the same: HCSVLDRS, 2019, although a beneficial scheme for a declarant, is statutory in nature: HCWords 'tax dues' as provided in s.123 of the SVLDRS shows that it is not expansive in nature inasmuch as it starts with the word 'means': HCOne more ITC fraud detected; 21 premises raided in DelhiJapan reveals Draft Budget 2021 proposing over USD one trillion expenditureThree UK joins hands with TCS for roll-out of 5G servicesNDPS - s.42 - 'Ruqa' which contained secret information already sent to superior officer, SHO - Insisting upon sending secret information separately would be a pedantic approach: HCNDPS - Since it is a case of recovery of contraband from a vehicle while in transit, it would be s.43 of the Act which would be applicable in the matter of procedure and not s.42: HCIndia reports lowest daily COVID-19 deaths in 8 monthsNDPS - Quantity of contraband falls in the category of 'commercial quantity' - fetters imposed by s.37 applicable in the matter of grant of bail - a liberal approach is uncalled for: HCGST - Petitioner, being spouse of the accused, does not have any locus standi while approaching Court, seeking copies of summons/arrest memo and panchnama: HCCus - Photographs are secondary evidence & whose appearances can vary with angle of photography - Classification of LED modules as LED chains, based on photographs alone, is not sustainable: CESTATUnexplained investment - Additions framed based on bills found in Search operation at third party premises are upheld, as assessee accepted bill in its name: ITATUnabsorbed short term brought forward capital loss can be set off against the income arising in current AY: ITATPM Modi flags off 8 trains to boost connectivity and tourism to KevadiyaRe-assessment - assessee baldly stated to not have received notice without rebutting Revenue's postage pre-paid, proving proper service of notice at assessee's correct address - Proceedings upheld: ITAT79.24 Lac farmers benefit from govt's MSP operations this kharif seasonAssessee provides vehicles to Govt agencies engaged in solid waste management system - Deduction u/s 80IA allowed thereon: ITAT2.24 lakh vaccinated in India in two days; 3 hospitalisation reportedPutin’s arch rival Navalny arrested on arrival from GermanyStatue of Unity - Kevadia has become global tourist destination: PM8000 startups registered on GeM, Done business worth Rs 2300 Cr: PMMinistry of Panchayati Raj bags SKOCH Award for transparency in governanceArmin Laschet elected as Germany’s Christian Party leader; now in race to succeed outgoing Angela Merkel as ChancellorAmerica imposes fresh sanctions on companies from China & UAE for doing business with Iran
Untitled Document

TODAY'S CASE (INDIRECT TAX)

Taxindiaonline.com



January 18, 2021

++ GST - Cross-empowerment - In case the action of State and Central Authorities is overlapping, Petitioner would be at liberty to take action to impugn the same in accordance with law: HC

++ Cus - In absence of challenge to the certificate issued by APPCB and refusal of petitioners to implead APPCB as a party respondent, it would not be appropriate to adjudicate on the same: HC

++ SVLDRS, 2019, although a beneficial scheme for a declarant, is statutory in nature: HC

++ Words 'tax dues' as provided in s.123 of the SVLDRS shows that it is not expansive in nature inasmuch as it starts with the word 'means': HC

++ NDPS - s.42 - 'Ruqa' which contained secret information already sent to superior officer, SHO - Insisting upon sending secret information separately would be a pedantic approach: HC

++ NDPS - Since it is a case of recovery of contraband from a vehicle while in transit, it would be s.43 of the Act which would be applicable in the matter of procedure and not s.42: HC

++ NDPS - Quantity of contraband falls in the category of 'commercial quantity' - fetters imposed by s.37 applicable in the matter of grant of bail - a liberal approach is uncalled for: HC

++ GST - Petitioner, being spouse of the accused, does not have any locus standi while approaching Court, seeking copies of summons/arrest memo and panchnama: HC

++ Cus - Photographs are secondary evidence & whose appearances can vary with angle of photography - Classification of LED modules as LED chains, based on photographs alone, is not sustainable: CESTAT

January 16, 2021

++ GST - Petitioner liable to pay penalty u/s Section 122(xiv) within a period of one month: HC

++ CST - Case to be remanded if demand is raised sans looking into reasons for not furnishing C Forms: HC

++ GST - Chocolate Milk Powder made by blending white milk powder with cocoa, is classified under Tariff heading 1806: AAR

++ GST - Sale of developed plots of land is covered under scope of Construction Services & will attract levy of GST: AAR

++ GST - When computing total rental income, notional interest earned on security deposit is not to be taken into consideration: AAAR

++ GST - Bulk drugs & intermediate are classifiable under HSN 2919 and attract duty @ 18%: AAR

++ GST - Applicant, manufacturer of specialized pneumatic tires, availing exemption under Notfn 79/2017 but paying IGST on imports under Advance Authorisation - Not entitled to refund under Rule 96(10): AAR

++ ST - Refund admissible after Tribunal tosses out demand based on extended period: CESTAT

++ CX - Assessee avails benefits of exemption Notfn 01/10-CE - extended period - Denial of credit barred by limitation: CESTAT

++ Mega relief for Spice Jet Ltd - CESTAT rules assessee exempted from IGST duty on re-import of repaired aircraft

January 15, 2021

++ NDPS - UoI's SLP dismissed on limitation for being filed after inordinate delay & in disregard to Law of Limitation - Costs of Rs 25000/- imposed: SC LB

++ SCN to Advocate for recovery of Service Tax - As an interim measure, demand notice stayed until further orders: HC

++ Import of Poppy seeds from China - Refusal to grant extension of period - Order completely ignores harsh realities of the commercial world, especially during pandemic: HC

++ UOI order mentions that in Feb. 2020 there was no outbreak of COVID-19 in India and, therefore, plea of extension of time is not justified - Order fails to note that pandemic originated in China much earlier - Order is not rational or logical: HC

++ Supply of paneer in loose form in plastic bags without sealing of packet, which do not indicate any information related to weight, would tantamount to being a product not put up in a 'unit container': AAR

++ Advance money forfeited by applicant (seller) on account of the buyer reneging on the agreement to purchase the factory land is chargeable to GST: AAR

++ Recovery of amount from employee on account of third party canteen services provided by the Company is 'outward supply' and taxable under GST: AAR

++ Notice pay is a consideration to the employer for 'tolerating the act' of the employee to not serve the notice period; liable to GST @18%: AAR

++ Applicant is eligible to claim ITC on inward supplies of goods and services used for supplying WCS to Kolkata Municipal Corporation for construction of immovable property: AAR

++ Cus - Writing off is permissible in law - Clause (vii) of 30/97-Cus cannot be read in isolation inasmuch as word 'in any manner' cannot include within its ambit 'written off' duty free imported material: HC

++ GST - Enlargement of time to pay admitted tax liability - Petition disposed of reserving liberty to petitioner to make appropriate request with authorities: HC

++ ST - As alternative remedy of filing a statutory appeal against the impugned OIO is available u/s 86 of the FA, 1994, Bench cannot entertain writ application: HC

++ GST - Practicing Chartered Accountant seeking extension of date for filing GSTR-9/9C - no case worth the name is made out - application rejected: HC

++ GST - Noticing the petitioner on the wrong address is against principles of natural justice: HC

++ GST - A mere suspicion of mis-classification of goods cannot be the basis for a detention u/s 129 of the Act: HC

++ GST - Glaring mis-description such as 'Apples' being described as 'Oranges' or 'Coconuts' being described as 'Betel Nuts' can invite detention: HC

January 14, 2021

++ VAT - Movement of imported goods cleared for home consumption when mixed with local goods, qualifies as sale as per CST Act; movement of such goods to another State qualifies as Inter-State sale & is ineligible for exemption under CST Act: SC

++ ST - Rectification of mistake - It cannot be said that Revenue's submissions at time of hearing were not considered, where judgments cited by Revenue & not considered by Tribunal, are not relevant to the line of discussion: CESTAT

January 13, 2021

++ Service of supply of doctor, nursing staff, ambulances and other administrative staff to corporate entity is not 'healthcare service' - applicant cannot be treated as'clinical establishment' - not entitled for exemption: AAR

++ 5% GST is not applicable to the bulk drug Danuorubicin , Epirubicin , Idarubicin and Zoledronin Acid as they cannot be directly administered in a human being: AAR

++ Vikram Sarabhai Community Science Centre is not entitled for exemption under 12/2017-CTR in respect of any activity undertaken and consequently are required to obtain GST registration: AAR

++ PAPAD [Un-fried Fryums] is classifiable under TI 2106 90 99; attracts GST @18%: AAR

++ Urine Collection bags attract GST @5%: AAR

++ Maize bran is not Cattle feed; attracts GST @5%: AAR

++ GST - Supari, Chuno and Chewing Tobacco, each in separate packing, but placed together in a single transparent plastic pouch is a 'composite supply' - principal supply is 'Chewing tobacco' - GST @28%, Compensation Cess @160% & NCCD @10%: AAR

++ ST - Commercial Coaching or Training service - Exemption allowed to assessee from tax on reimbursable expenses for period 01.07.2003 to 31.03.2008 as per Notfn 9/2003-ST & Notfn 24/2004-ST: CESTAT

January 12, 2021

++ Applicant cannot avail ITC of GST paid on inputs, input services as well as capital goods procured for the purpose of building LNG jetties as they are not covered within the expression 'plant and machinery': AAR

++ 'Zip Roll' and 'Slider' merit classification as 'Parts of slide fasteners' under CH 9607.20; 'Finished zipper' under CH 9607.11; attracts @12% GST: AAR

++ 'Seat adjuster' is merely an accessory; not classifiable under Heading 9401 which covers only 'parts' but under 8708; attracts GST @28%: AAR

++ Applicant is set up by Nirma University Act passed by Gujarat State Legislature; not liable to register themselves as a Deductor under GST: AAR

++ GST - Supply of goods such as Temporary live videography with LED & LCD Screen, Live Telecast equipment, Cameras, etc. on hire basis to Central/State Govt/UT, Local Authority, Village Panchayat, who undertake activities in relation to any function entrusted under Article-243G of the Constitution not exempted under 12/2017-CTR: AAR

++ DGAP has nowhere interfered with pricing decisions of respondent and, therefore, there is no violation of Article 19(1)(g) of the Constitution: NAA

++ Cus - Wrong quoting of DBK Code qualifies as mis-classification - Plea of inadvertence does not absolve the declarant or grant immunity from penalty: HC

++ CX - Merely because payment of transit insurance is made by assessee, does not mean that place of removal is place of the buyer - Value of freigh charges is not to be added in assessable value of goods: CESTAT

January 11, 2021

++ GST - Provisional attachment of Bank account - Section 83 cannot be invoked pursuant to proceedings initiated u/s 71 of the Act: HC

++ GST - Laws are not to be declared unconstitutional on the fanciful theory that power would be exercised in an unrealistic fashion or there is a possibility of abuse of power: HC

++ GST - Sections 69 and 132 of the Act are constitutional and fall within the legislative competence of Parliament - Court is not inclined to interfere with investigation : HC

++ Fraudulent IGST Refund - A tax collection mechanism has been converted into a disbursement mechanism as if it were a subsidy scheme: HC

++ GST - Freezing of Current Accounts - Petitioner entitled to use OD facility which is received and disbursed through these accounts: HC

++ GST - Provisional attachment to protect Revenue - proceeding u/s 74 can be said to be pending within the meaning of s.83(1) only upon communication of notice u/s 74: HC

++ Cus - Import of Skimmed Milk Powder - Goods confiscated for non production of BIS certificate - Importer obtained FSSAI clearance, which is complementary to BIS standards & so food safety standards have been complied with - Confiscation & penalty set aside: CESTAT

January 09, 2021

++ Services of Testing of purity of gold is classifiable under SAC 9983 and attracts GST @18%: AAR

++ Supply of goods takes place from Poland (a non-taxable territory) directly to Bangladesh (also a non-taxable territory) without the said goods entering India - No  GST is leviable w.e.f 01.02.2019: AAR

++ No precedential value for Advance ruling pronounced by AAR or AAAR: AAR

++ COD - Revenue seeks to place reliance on judgments of vintage when technology was not easily available - Court thoroughly deprecates this practice - SLP dismissed on ground of delay: SC LB

++ Delay in filing appeal - Saga of gross negligence - Wasting judicial time - Cost imposed of Rs.25,000/- on NCB to be recovered from officers concerned: SC LB

++ Finished goods destroyed in fire - reverse ITC on Inputs/Input services: AAR

++ Supply of labour attracts GST @18%: AAR

++ Security Services - Applicant has to charge/pay GST @ 18% on the entire amount received by them from their clients: AAR

++ Fumigation service provided in Customs bonded warehouse is taxable @18% - no evidence to prove that only agriculture produce is stored: AAR

++ Applicant is a facilitator for supply of goods for which they are paid a fee/commission, service recipient being a Korean company - service is an intermediary service; chargeable as intra-state supply: AAR

++ Common maintenance fund/deposit collected from members is non-returnable; liable to GST: AAR

++ CX - Rule 5 of CCR 2004 - Assessee entitled to interest on delayed disbursal of refund beyond three months of filing refund claim: CESTAT

January 08, 2021

++ GST - 111 fake firms, 373 bogus invoices, ITC fraud 100 crores - Applicant does not appear to be a habitual offender, prosecuted or convicted earlier, therefore, can be enlarged on anticipatory bail: HC

++ GST - S.132(5) - Where the implication of a person is for a non-bailable offence, he can apply for anticipatory bail: HC

++ GST - Petitioners have an efficacious remedy u/A 226 to challenge constitutional validity of provisions - Court will then have benefit of a considered view emanating from HC: SC LB

++ SVLDRS, 2019 - Word 'quantified' appearing in s.121(r)/123(c) of FA, 2019 would include duty liability admitted in statement recorded u/s 14 of CEA and not necessarily the amount crystallised in adjudication: HC

++ SVLDRS, 2019 - DGGI contention that it is impossible to conclude that liability admitted in statement dt. 28.06.2019 is full and final liability, within a period of two days, is no ground to reject application: HC

++ ST - A greement was never acted upon by the parties and no consideration received - No evidence to the contrary available in SCN or OIO - demand cannot sustain: CESTAT

++ ST  - CENVAT - Refund - I t is a settled position that entitlement of credit should not be denied when assessee is pursuing refund of credit claimed in returns: CESTAT

++ Cus - Act of Customs broker in sub-letting its license to another person creates an open channel for smuggling contraband & is in complete violation of CBLR 2013 - revocation of license & forfeiture of security deposit is upheld: CESTAT

++ CX - Cenvat credit can be availed in respect of all inputs & service tax paid on all input servides which are used, irrespective of whether or not the same is separately re-imbursed by buyer of manufactured goods: CESTAT

January 07, 2021

++ ST - Right to Tax relief under SVLDRS, 2019 is a substantial right and until and unless a declarant is ineligible for tax relief, benefit cannot be refused on technical grounds: HC

++ ST -  Rule 5 of CCR - Debit made in March 2014 but same was reflected in the ST-3 of subsequent period -  Hyper-technical view is no ground to deny refund: CESTAT

++ CX - Sec 4A of CEA 1944 will not apply when there is no statutory requirement of affixing MRP on the goods in question, even though assessee may have voluntarily affixed MRP on such goods: CESTAT

++ Cus - Penalty imposed u/s 112 of Customs Act is not sustainable if nothing on record exists to suggest any prior knowledge or reason to believe about the confiscable nature of imported goods u/s 111 the Act & where pre-requisites in Sec 112 are not satisfied: CESTAT

January 06, 2021

++ Cus - It is beyond comprehension as to how a lower appellate authority can nullify direction of forthwith release by ordering absolute confiscation of such goods - contumacious conduct: HC

++ ST - Reasoning for rejecting the refund is not evident in the order - no option but to remand the matter: CESTAT

++ GST - Order passed u/s 129(3) - It is ideal to relegate petitioner to the appellate remedy available u/s 107 of the Act: HC

++ Insurance service provided by DICGC to the banks is an Input service, credit admissible: CESTAT

++ Cus - AA has passed an order u/s 110A of the CA, 1962 - As there is a remedy of appeal, petition is disposed of with a liberty to prefer an appeal in accordance with law: HC

++ Cus - Under the guise of review, an order passed cannot be challenged: HC

++ GST - Respondent cannot plead helplessness in the matter of correction of an apparent mistake that occurred while making an application for cancellation of registration: HC

++ NDPS - On ground of being case property liable to confiscation, if car is kept idle at police station, then same is likely to be converted into junk - car is, therefore, released on sapurdari : HC

++ Cus - Error apparent from record should be so manifest & clear that no Court would permit it to remain on record - It should be pertinent, self-evident & not require any elaborate discussion of evidence or argument: CESTAT

January 05, 2021

++ GST - Inquiry u/s 70 is not a 'proceeding' referable to Section 6(2)(b) of the Act - DGGSTI can conduct inquiry even if AC(SIB), Commercial Tax has initiated one: HC

++ Raw materials imported at Nil rate - Final products cleared to ISRO/BEL under exemption - Revenue   invoking warehousing provisions to contend that imported bonded goods have been removed without payment of duty is quite an outstretched argument: CESTAT

++ CENVAT - Since appellants were unable to effectively run Aluminium extrusion business, they availed advisory services for identifying buyer for the specific division - such services are Input services: CESTAT

++ ITC - Fake Invoices - SCN issued in August 2021, documents furnished only on 20th October and order passed on 31st October without giving sufficient opportunity - Orders quashed after putting petitioner on terms: HC

++ Form GST DRC-22 - Provisional attachment of Amount receivable - Petitioner has not only an efficacious remedy, rather alternative remedy under the  Act, therefore, petition is not maintainable: HC

++ CX - Deposit of money at the time of investigation would not per se amount to acceptance of any allegations as mentioned in SCN - It is trite law that payment of money at time of investigation would be treated as a deposit under protest: CESTAT

++ Cus - The right of noticee in getting the relied upon documents & appropriate opportunity of defence upon maintaining the principles of natural justice, cannot be denied: CESTAT

January 04, 2021

++ Profiteering - Violation of the provisions of s.171(1) is not covered u/s 122(1)(i) of the Act: NAA

++ S.68I - Property had been excluded from application of Ch.VA of NDPS Act by an order dated January 1994, therefore, present order passed by Competent Authority forfeiting property is without jurisdiction: HC

++ ST - Refund - SEZ Act has an overriding effect-Conditions imposed by notifications issued under FA, 1994 are merely directory in nature: CESTAT

++ CX - Revenue's claims of Tribunal not considering all arguments advanced is not tenable where perusal of order shows otherwise - Allowing such arguments is tantamount to review of own order, which is impermissible in law: CESTAT

++ Cus - Betel Nuts are not notified items u/s 123 of Customs Act - Onus of proving foreign origin of such goods, rests with the Department - Charges of smuggling are quashed where such onus is not discharged: CESTAT

January 02, 2021

++ CX - Amounts paid during investigation to be refunded along with interest @12% in terms of s.35FF upon matter being settled by Tribunal in favour of assessee: CESTAT

++ Cus - There is no trite law that in each and every case, confiscation of goods should be made absolute - Foreign currency can be released on payment of fine: CESTAT

January 01, 2021

++ GST - It cannot be reasonably opined that proceedings u/s 129 must first conclude and then the confiscation proceedings u/s 130 must commence: HC

++ GST - Non-obstante clause establishes that Legislature did not intend that, for commencement of proceedings u/s 130, proceedings initiated u/s 129 should end even without determination of liability thereunder: HC

++ ST - Even, according to the petitioner, there was no quantification as on the prescribed date 30.06.2019, therefore, no error in rejecting the petitioner's Form SVLDRS-1: HC

++ ST - Honda Civic launch called off - Amount paid under Termination Agreement is in the nature of cancellation fee and  no service, much less 'Consulting Engineer' service, was provided - no tax payable under RCM: CESTAT

++ ST - Group companies located abroad are not in the business of supplying manpower - secondment of employees to appellant - no service provider-recipient relationship exists, not taxable: CESTAT

++ Cus - When expression 'for use' has been used, it means 'intended for use' as well - moreover, notification does not stipulate a condition of proof for end-use: HC

++ GST - Opportunity of being heard is to be given to both, the owner of the goods as also the owner of the conveyance before ordering confiscation: HC

++ CX - Cement & Steel items when used in fabrication of storage tanks are eligible for credit as inputs, even after insertion of Explanation 2 to Rule 2(k) of CCR which defines 'inputs': CESTAT