TODAY'S CASE (INDIRECT TAX)

July 30, 2022

++ CX - When goods were cleared for exports and proof of export submitted in each and every case, demand made treating these goods to be cleared in DTA, is contrary to provisions of Rule 18 of CER, 2002: CESTAT

++ ST - There is no requirement in Cenvat Credit Rules, 2004 that the premises should be registered for availing credit, rejection of refund is not justified: CESTAT

++ Cus - Tribunal or Commissioner (A) is not empowered to waive pre-deposit or to reduce predeposit, therefore, no case for interference is made out in the matter: CESTAT

July 29, 2022

++ GST - GIDC is neither a State government nor a Governmental authority but is a government entity - Appellant is not entitled for exemption under 12/2017-CT or 14/2017: AAAR

++ GST - Appellate authority cannot go beyond the issues on which ruling was pronounced by AAR: AAAR

++ ST - Hair now, gone tomorrow! - Dominant transaction is manufacture and supply of wig -Hair Studio not required to pay Service Tax: HC

++ CX - Since the mechanism of CoD has been done away with in view of the decision in ECIL, the application of assessee could not have been considered - Matter remitted: SC

++ Cus - If one were to simplistically equate trade remedial measures such as ADD with a duty imposed under 1962 Act, it would result in missing the wood for the trees - Objection that appeal lies before Supreme Court cannot be sustained: HC

++ Cus - Anti-dumping duty - Designated Authority is 'other party' aggrieved by any order of the Tribunal and can file appeal - Not necessary that only Principal Commissioner or Commissioner should be the appellant: HC

++ GST - Vessel support services provided in relation to foreign vessels sailing to other countries outside India, falls under 'Export of Services': AAR

++ CX - Since the appellant has given the value in invoice while making transfer of goods, said value has to be considered for calculating the reversal amount: CESTAT

++ ST - As appellant is paying output tax and legal services being input service, they were entitled to Cenvat credit and thus situation is revenue neutral, accordingly, penalty under Section 78 is set aside: CESTAT

++ Cus - Since the test report issued shows that the goods are plated with zinc, same are excluded from levy of anti-dumping duty as per Notfn 17/2017-Cus. (ADD): CESTAT

++ ST - In acceptance of death of Managing Director and brain haemorrhage of Director of Appellant Company as legal disability due to mental insanity, delay in filing appeal before Commissioner (A) is condoned: CESTAT

++ CX - When the statements of two persons were relied upon in SCN but those persons were neither examined under Section 9D nor were allowed to cross examination, same amounts to violation of principles of natural justice: CESTAT

++ Cus - Having not satisfactorily established collusion or wilful mis-statement or suppression of facts, imposition of penalty under Section 114A of Customs Act, 1962 is not sustainable, same is set aside: CESTAT

July 28, 2022

++ GST - Fraudulent ITC - No proceedings instituted under GST Act, 2017 - Whether general penal provisions of IPC would be applicable or special law u/s 132 of CGST is an issue to be decided by trial Court: HC

++ GST - Power to grant bail is not to be deployed as a mechanism for imposing sentence even before a guilt is yet to be proved and established: HC

++ Cus - Refund of SAD - Notification 102/2007-Cus as amended - Limitation cannot be prescribed by a notification: HC

++ Cus - There exists more than sufficient probabilities to pin down the Customs broker on charge of violation of CBLR, 2013 - Order passed by Tribunal suffers from errors of law and perversity calling for interference: HC

++ CX - Electricity from 'waste gas' and wheeled out - since non-excisable goods are equated with exempted goods, proportionate credit reversal required from March 2015: HC

++ Sales Tax - Sale is resulting in movement of goods - Contemporaneous documents satisfy the tests applicable to inter-state transfer; and attracts Central Sales Tax: HC

++ CX - Tax paid on transportation of final product from the place of removal upto the first point, whether it is depot or the customer, has to be allowed : CESTAT

++ ST - Claim of refund can only be made in respect of original assessment under head 'Erection Commissioning & Installation', however, claim filed much after period of limitation would not be admissible: CESTAT

++ ST - Debit of amount of refund claim in cenvat credit account suo moto before adjudication, is sufficient compliance of Condition 2(h) of Notification No. 27/2012-C.E. (N.T.) , Adjudicating Authority is directed to grant refund along with interest: CESTAT

July 27, 2022

++ To be proceeds of crime, property must be obtained directly or indirectly, 'as a result of' criminal activity relating to scheduled offence: SC LB

++ ST - If intention and object was to provide exemption to services provided by Haj Group Organizers (HGOs) or Private Tour Operators (PTOs) in respect of religious pilgrimage, the notification 25/2012-ST would have specifically provided so: SC LB

++ ST - For purposes of levy of service tax, service rendered cannot be dissected - Only a part of the package cannot be picked up for invoking exemption: SC LB

++ ST - HGOs/PTOs and the Haj Committees do not stand on par - There is a rational basis for classifying specified organisations as a class and keeping out the Private Tour Operators from exemption: SC LB

++ Constitution - State Legislature has legislative competence to impose tax on lotteries conducted by other States in their State: SC

++ GST - Question raised is a part of the proceedings of DGGSTI and, therefore, application is not admissible: AAR

++ GST - Value of toll charges, being incidental expenses incurred while providing outward supply (support services of transport of employees), is liable to be included in the value of outward supply: AAR

++ GST - As the applicant is only a recipient of toll services, question as to whether the service provider is entitled for exemption cannot be answered: AAR

++ Adhiniyam - Where right to exemption of tax for fixed period accrues and conditions for exemption are fulfilled, withdrawal of exemption cannot affect already accrued right: HC

++ Cus - When the subject imported material, i.e., Automatic/Semi-automatic winding Machines and Automatic Testers are clearly specified in table given in Notfn 25/2002-Cus, exemption cannot be denied : CESTAT

++ ST - Entertaining an appeal by condoning delay, especially, when more than 50% of tax demand has been paid, would be the appropriate solution : CESTAT

July 26, 2022

++ CX - No statutory mandate in Revenue arsenal to compel a cigarette manufacturer to run the factory up to its 50% capacity - Machine and DG set sealed since two years - Business loss and revenue loss too - Cost payable: HC

++ CX - Plot already sold by GIDC in public auction, therefore, adjudication of auction notice is not called for: HC

++ Cus - Smuggling of gold worth Rs.1.6 crores - Flagrant violation of the provisions of Customs Act - Release of applicant may hamper investigation - Bail refused: HC

++ Cus - In absence of SCN there is clear breach of section 17(5) and the principles of natural justice by finally reassessing the Bill of Entry ex parte: HC

++ Cus - s.127(6) - Petitioner cannot be punished for the inability of Settlement Commission to fulfil its statutory obligation of disposing the application filed within specified period: HC

++ Cus - Any violation relating to foreign exchange are covered under FEMA, 1999 and not under the Customs Act : CESTAT

++ CX - In case of claiming refund of unutilised balance of PLA, limitation of one year shall not apply : CESTAT

++ ST - expenses incurred for training/refresher training & other expenses cannot be included in value of taxable services as they do not form part of taxable services on which gross taxable amount is charged: CESTAT

++ CX - Appellant is directed to file all relevant documentary evidence with Adjudicating Authority within a period of two weeks as same is proper Authority to examine documentary evidences : CESTAT

++ ST - Appellants are not eligible to take credit of service tax paid on services rendered by vendors, for which they received payment from TI, USA in USD and consequently, appellants are not eligible to claim refund of the same : CESTAT

July 25, 2022

++ GSTN to open common portal for 2 months and ensure that there are no technical glitches during September & October so as to allow assessees to file TRAN-1/TRAN-2: SC

++ Cus - 27/2002-Cus - By paying concessional rate of customs duty at the time of import, petitioner has already availed benefit of drawback - No further drawback payable - Costs imposed of Rs.1 lakh: HC

++ Cus - Where there are allegations of vicarious liability, then there has to be a specific act attributed to the person to the effect that such a person was responsible for the acts committed by or on behalf of the company: HC

++ Cus - Smuggling of 3kg gold - Such a grave offence would cause damage to the economy of the nation and larger interest of the country - Bail application dismissed: HC

++ CX - Right to reason is an indispensable part of sound judicial system -Reasons indicating an application of mind while imposing penalty should be given in the order: HC

++ ST - SVLDRS, 2019 - Petitioner ought to have been given a personal hearing before his declaration was rejected - Order set aside and matter remanded: HC

++ GST - Health-care services provided to patients at their residence through qualified nurses are exempted: AAR

++ CX - Rule 16(3) of CER, 2002 is not independent of Rule 16(1) & is meant to remove difficulties arising in the latter: CESTAT : CESTAT

++ ST - Appeals abate since no application filed by successor-in-interest in matter of continuation of proceedings despite sufficient time: CESTAT

++ CX - During period of default, appellant have acted as per proviso of Rule 8(3A) and have discharged duty consignment wise without utilizing CENVAT Credit available with them, demand of duty for period after 26.03.2013, is set aside: CESTAT

July 23, 2022

++ Cus - Balance of convenience appears to be in favour of petitioner, since they had operated under scheme captured in 2019 Regulations and up until now, has obtained deferral of customs duty and IGST: HC

++ CX - Every non-payment/non-levy of duty does not attract extended period and there must be deliberate default: HC

July 22, 2022

++ ST - Condition of pre-deposit cannot be a ground for entertaining a writ and moreover when an appeal remedy is available: HC

++ GST - TRAN-1 - If opening the portal is not possible, petitioner to be permitted to take unutilised credit through GSTR-3B: HC

++ Cus - In Section 149, no time period has been prescribed for amendment of shipping bills, therefore, time limit of three months laid down in Circular 36/2020-Cus is illegal and without jurisdiction: HC

++ Cus - Branding petitioner as ‘Risky exporter' without notice is wrong -Remove/lift tag affixed in EDI system: HC

++ Cus - Settlement Commission has arrived at its conclusion purely based on admission made by petitioner; has not made any interpretation on classification for petitioner Revenue to be unhappy: HC

++ Cus - Two separate adjudication orders emerging out of a single SCN - No coercive measures in pursuance of these orders till matter is heard: HC

++ Cus - Betel nut being non-notified goods; burden to prove the fact of smuggling lies on department and same has not been discharged, thus seizure of impugned betel nut is not justified: CESTAT

++ ST - Since deposit has never been adjusted against any tax liability in any subsequent return filed by appellant, amount deposited has never attained character of tax or duty, refund is allowed: CESTAT

++ CX - Since penalty was imposed upon appellant merely for the reason that Company was not entitled to claim area based Exemption, same is set aside: CESTAT

July 21, 2022

++ GST - Settled proposition of law is that a Circular which clarifies a notification cannot have the effect of overruling the notification: HC

++ GST - Toll charges equals Annuity paid for construction of roads and is exempted - Circular No. 150/06/2021-GST has the effect of overriding exemption notifications and is bad in law: HC

++ GST - Instead of directing portal to be opened for filing TRAN-1, direction issued in Hans Raj Sons is more assessee friendly - Petitioners to file individual tax credit in GSTR-3B: HC

++ GST - There was no occasion for this Court to go into merits of case inasmuch as what was challenged is recovery notice which was actually a mere communication as stated by revenue himself: HC

++ GST - Advocate prevented from appearing before adjudicating authority due to a resolution passed by Bar Association - Order passed ex parte set aside in the peculiar facts and circumstances: HC

++ GST - Since refund claim of assessee was rejected on the ground that it was entirely new ground than the aforesaid mentioned in SCN, said claim shall be reconsidered by authority concerned afresh: HC

++ GST - Hot hurry on part of authorities sacrificed the right of petitioner to reply, there was breach of principles of natural justice, by way of interim relief, goods and conveyance of petitioner will be released on depositing an amount of Rs. 40 lakhs: HC

++ GST - Refund of IGST - Vodafone has provided services to Foreign Telecom Operators and not to individual subscribers of FTOs, therefore, s. 13(3)(b) is not attracted - supply is export as location of FTO is outside India: HC

++ GST - Place of supply - Concept that customer's customer cannot be your customer is accepted - Service recipient is your customer and not the third party customer of FTO: HC

++ Cus - Matter is remanded to adjudicating authority who shall give an opportunity of personal hearing to appellant as well as for submission of documents and consider the refund claim afresh: CESTAT

++ ST- Merely for the reason that the service is not included in approved list, refund cannot be denied: CESTAT

++ CX - When SCN does not seek to hold the case liable for confiscation, penalty under Rule 26 cannot be sustained either on appellant or on the Managing Director of appellant company: CESTAT

++ Cus - Packing of goods into different packs amounts to manufacture and while exporting such goods, activity of packing/repacking entitles the EOU to claim exemption from customs duty while exporting such repacked goods: CESTAT

++ ST - Just because the appellant, a SEZ unit filed refund claim under rule 5 of CCR, 2004 instead of filing in terms of SEZ Notfn 9/2009, same cannot be rejected since it does not restrict or bar a SEZ to file refund claim of unutilized credit: CESTAT

July 20, 2022

++ Cus - That because successful bidder had entered an agreement with one of the OEMs prior to submission of bid, cannot be reason to hold that the entire bid process to be a sham: CESTAT

++ Cus - Documents from foreign branches of the Indian banks not admissible as evidence since conditions of Sec 138C of Customs Act not fulfilled: CESTAT

++ GST - Adjudication order has been passed straightaway without following due procedure prescribed u/s 73 read with section 75(4) & (5) - Order quashed and matter remanded: HC

++ GST - The petitions can be disposed of, based on directions that revenue will lift the provisional attachment order issued qua 38 bank accounts: HC

++ ST - Mere technical discrepancy in invoices cannot be the ground for denying substantive benefit of refund available to SEZ unit: CESTAT

++ CX - Any deposits made if have not been confirmed as duty the time-bar of Section 11B of Central Excise Act cannot be invoked: CESTAT

++ ST - Payment of Service Tax by appellants on account of 'Machine Commissioning Charges' is in order and therefore, appellants are not entitled to any refund on this ground: CESTAT

++ Cus - As appellant is now confident to trace all documents that are required to be produced and those which were not filed before lower authorities, matter remanded to Adjudicating Authority: CESTAT

++ Cus - As the goods are lying under seizure and subsequent confiscation by Customs Department for more than two years, for no fault of appellant, grant of waiver of detention and demurrage charges is appropriate: CESTAT

July 19, 2022

++ GST - Applicant not informing AAR that there are several alerts issued against them for claiming refund of accumulated ITC by fraudulent means is no ground to reject an application seeking an Advance ruling: AAAR

++ Cus - Principal Chief Commissioners to  remain personally present or ensure that authorised representatives appear for hearing - Costs to be recovered from their salary if matter is adjourned due to absence of representative: HC

++ GST - Existence of alternative efficacious appellate remedy - Petitioners cannot be faulted; are entitled to the benefit of the period during which writ petition was pending: HC

++ GST - Rule 9(4) - Word 'may' does not give discretion to not assign reasons - Discretion is only to reject application for registration but not to blatantly violate principles of natural justice: HC

++ CX - Personal penalty cannot be imposed on employee as credit was not taken on a forged or invalid document but the only lapse was that the bill of entry was not in name of company but in the name of different location: CESTAT

++ CX - By making demand as above nearly one year later, for clearances made without payment of duty revenue was not only soft pedaling the issue but was permitting clearance without payment of duty: CESTAT

++ Cus - When appellant have done necessary verification through documents, significant amount of time is lapsed, whatever inquiry was necessary would have been completed now, so no justification found for continuing suspension any more: CESTAT

++ ST - The laying of fresh water pipeline is a work entrusted to a municipality under Article 243W of Constitution of India, accordingly, appellant is entitled to exemption under Notfn 25/2012-ST: CESTAT

July 18, 2022

++ GST - Activity of providing free complimentary tickets does not fall within the domain of supply as it does not have the element of consideration - However, such tickets provided to related person/distinct person attracts tax: AAAR

++ GST - Services provided in respect of recruitment examination (for recruitment of employee by AIIMS) is not exempted: AAR

++ GST - Services provided by applicant to AIIMS, an educational institution, by way of entrance examination is exempted: AAR

++ CST/GST - Amount in question has been determined as excess payment - Respondent cannot sit tight on the petitioner's request for refund: HC

++ GST - DRC-01A issued intimating tax ascertained - Now, since SCN has been issued u/s 73, petitioner is required to reply and appear for personal hearing after which order would be passed - Petition filed to quash SCN dismissed: HC

++ ST - Value of taxable services cannot be arrived at merely on basis of TDS statements filed by clients, demand of services tax is not sustainable on basis of TDS /26AS statements: CESTAT

++ CX - The Department can proceed against assessee to recover the amounts due to them under provisions of the Act but the refund to which assessee is entitled has to be sanctioned and disbursed in his favour: CESTAT

++ Cus - Revenue fails to establish that appellant, in spite of having knowledge of compliance towards MRP, have deliberately not declared, so extended period of limitation is not invocable: CESTAT

++ CX - In case of short-payment of duty at the time of clearance of goods, liability to pay interest on the same shall be absolute and there can be no denial of the same: CESTAT

++ Cus - If an assessee wants to challenge the assessment of bill of entry, he should file appeal before Commissioner (A) and appeal should not have been rejected on the ground that reassessment is not possible, he should have passed the order on merit: CESTAT

July 16, 2022

++ Cus - The norms and conditions laid down under Public Notice 21/2009-14 are satisfied, as opined by expert, hence, demand of confiscation apart from demand of duty liability and various penalties levied on appellants cannot sustain: CESTAT

++ CX - Case has been booked on the basis of audit objection by scrutinizing financial records of appellant but extended period of five years cannot be invoked in case of audit objection : CESTAT

July 15, 2022

++ GST - Luxury litigation to overburden Court by wasting valuable time - Petitioner more interested in obtaining interim order rather than settle issues on question of law: HC

++ GST - Expired E-way bill - Petitioner cannot be said to benefitted in any way by the delay in transportation of  heavy machinery viz. Hydraulic Mobile Crane - No attempt to evade tax: HC

++ GST - Respondent is at liberty to trigger the process u/s 75 once clarity is attained with regard to the outcome of pending appeal lodged by petitioner: HC

++ ST - SVLDRS, 2019 - Petitioner has failed to show any cause why relief sought by him should be granted once the Scheme and all its proceedings have been closed: HC

++ Cus - Person who has affirmed the affidavit has not even bothered to read it - This is not a trivial technicality: HC

++ Cus - MEIS - Target Plus - Stand of respondents that de hors amendment issued on 07.04.2005, petitioner should have been a status holder for year 2002-03 is in negation of the rights conferred: HC

++ ST - SVLDRS, 2019 - Fact that petitioner had a serious problem in accessing portal has not been denied - In the interest of justice, SVLDRS-3 set aside and matter remitted: HC

++ SVLDRS, 2019 - Expression 'total amount of duty' in clause (d) of section 123 could only mean the total amount of outstanding duty payable by a declarant making 'voluntary disclosure': HC

++ CX - Without going into merits of the case or the grounds raised, Tribunal concluded 'by connivance of two parties, sovereign function of payment of duty cannot be avoided' - Cryptic order set aside: HC

++ CX - Considering the factual position, notwithstanding the error in the shipping bills, petitioner is entitled to drawback - Refund granted with interest: HC

++ CX - In the absence of any specific prohibition that payment cannot be made through CENVAT credit for goods manufactured by EOU, stand of Revenue is untenable: HC

++ GST - Glitches in portal - Department should ensure that an opportunity granted to the assessee is not reduced to mere formality - Matter remanded: HC

++ VAT - Under VAT regime, sales affected in favour of industries in SEZ alone are exempted from payment of sales tax, but not converse : HC

++ Cus - Improper affirmations indicate how much seriousness an officer of the level of Commissioner of Customs has while filing an affidavit: HC

++ SVLDRS, 2019 - Voluntary disclosure - Adjustment of duty paid - It could never have been intended by legislature that revenue would recover tax liability which has already been discharged by declarant: HC

July 14, 2022

++ ST - Demand of ST raised on amount of reimbursement from clients by invoking Rule 5 of STR, 1994 - issue is no longer res integra inasmuch as very Rule has been held to be ultra vires provisions of FA, 1994: CESTAT

++ CX - The 'place of removal' can never be buyer's premises and therefore, amount of freight upto buyer's premises cannot be added to AV for payment of excise duty: CESTAT

++ Cus - In respect of alleged violation of foreign exchange, it is erstwhile FERA or FEMA authorities who are competent to initiate proceedings - Customs had no jurisdiction to issue SCN for said violation: CESTAT

July 13, 2022

++ Misc - Since contemnor never showed any remorse nor tendered any apology for his conduct of transfering funds in disregard to Court's order, sentence of four months is imposed: SC LB

++ GST - Hearing fixed when COVID-19 at its peak - Appellant could not attend but order passed - Order set aside - Tax pre-deposited while filing appeal to remain in deposition: HC

++ GST - Submission of certified copy of order while filing appeal is a procedural requirement - On the altar of default, in compliance of such a procedural requirement, merit of matter should not have been sacrificed: HC

++ GST - Words 'along with' in rule 142(1)(a) clearly indicates that in a given case, show cause notice 'as well as' summary thereof, 'both' have to be issued - DRC-01 is not a substitute for SCN: HC

++ GST - A bonafide mistake or consent by the assessee cannot confer any jurisdiction upon the proper officer and the jurisdiction must flow from the statute itself: HC

++ Cus - The goods imported by assessee are Populated Circuit Boards (PCBs) used in PSS 1830 and therefore, impugned goods are parts of PSS and as such merit classification under CTH 85177010: CESTAT

++ Cus - The Customs Broker is not an overseeing authority to ensure that all documents were correctly issued by various authorities, if they were wrongly issued, fault lies at the doorstep of officer and not the Customs Broker : CESTAT

++ CX - The TCS is collected not as a additional consideration but explicitly as tax and same is deposited to income tax department, therefore, same is not includable in assessable value for charging Excise Duty: CESTAT

++ CX - Since the activity of entire manufacturing including manufacture of intermediate goods on job work basis were in knowledge of department, it cannot be said that there is any suppression of fact on the part of appellant: CESTAT

++ ST - Service tax cannot be leviable on value of material supplied to client as Notification No. 12/2003-S.T. provides exemption: CESTAT

++ ST - Since there is no mention of nature of input services on which credit has been disallowed, nor any reason has been given why these services do not have a nexus with output service of appellant, matter is remitted to Commissioner (A) to decide the same: CESTAT

July 12, 2022

++ ST - Firm and Company can be said to be consulting engineer as defined under Finance Act, 1994 & liable to pay service tax as service provider: SC

++ Cus - Classification - burden is on Revenue to adduce proper evidence showing that goods are classifiable under different heading than that claimed by importer: SC

++ VAT - Classification of poultry feed - Apex Court refuses to intervene against High Court's order due to academic nature of dispute & no tax dues involved: SC

++ GST - Application is not admitted as the applicant has not substantiated the proposed supply with necessary details/documents: AAR

++ Cus - The order of Customs Authority for waiver of demmurage charges is binding upon revenue, therefore, revenue is directed to release the goods which are under their custody and not under detention of Customs Authorities: HC

++ GST - Supply of Medicines and consumables used in the course of providing healthcare services to outpatients is taxable: AAR

++ CX - Availment of ineligible credit had arisen from appellant's confusion about nature and composition of levy, there are reasons to believe that appellant had acted in bona fide belief, therefore, penalty is set aside: CESTAT

July 11, 2022

++ GST - Activity of sale of developed land,  being a preparatory stage,  is covered under 'construction of a complex intended for sale to a buyer' - GST payable @18% - Revenue Appeal allowed: AAAR

++ ST - In the absence of intent, suppression cannot be alleged and therefore, extended period of limitation could not have been invoked : CESTAT

++ CX - Since the revenue has not found a single document/ record showing any illicit production and removal of goods from M/s ETCL, nor any consideration against alleged clandestine removal has been shown to have been received by M/s ETCL, demand of duty is set aside : CESTAT

++ Cus - Though the appellant has pointed out discrepancies in test report at the stage of replying to SCN itself, department has not been able to explain the same, impugned order is set aside which is mainly based on test report forwarded by Indonesian Police : CESTAT

++ Cus - When it is a case of town seizure, onus lies on Revenue to prove that goods/pipes lying in premises of appellant have been received in a clandestine manner from SEZ unit, no cogent evidence has been led by Revenue in support of its allegation : CESTAT

July 09, 2022

++ Cus - Only gold or silver ornaments is bonafide baggage - In any other form, they are not: HC

++ Cus - No part of cause of action has arisen within the jurisdiction of this Court, therefore, petition is liable to be dismissed: HC

++ ST - Rights of petitioner stand crystallised, though wrongly, since department has not preferred appeal - Curiously, refund granted is more than what was due - Matter remitted: HC

++ CX - CWS, CFS is a place of removal permitted u/s 4 - Goods destroyed in fire when housed in CFS cannot be said to have been 'removed' - Eligible for remission of duty u/r 21: HC

July 08, 2022

++ GST - Dubai Chamber of Commerce, Liaison Office, Mumbai connects businesses in India with business partners in Dubai - Not an 'intermediary' but an 'agent' providing 'support services' to their Dubai HO - Taxable @18%: AAAR

++ GST - Applicant is only a conduit for the payment of stipend and actual service is supplied by the trainees to Industry Partners - Stipend received by applicant is not taxable: AAR

++ GST - Tax rate for Job work service in relation to manufacture of Coconut Oil/Rice bran oil - As proceedings are pending on the issues on which Advance Ruling is sought for, application cannot be admitted: AAR

++ CX - Final product delivered at buyer's premises - Place of removal as per s.4(3)(c)(iii) is buyer's premises, therefore, CENVAT credit on GTA service is admissible: HC

++ GST - Reasons to accompany the order while blocking ITC - WB GST authority instructed: HC

++ GST - CBIC Circular is binding on the field formations but whether the Circular is applicable or not is a matter which has to be considered in adjudication proceedings - Petitioner to file reply to SCN: HC

++ GST - Since no personal hearing was given to petitioner in spite of specific request for the same, matter is remanded back for passing a fresh order after giving opportunity of personal hearing: HC

++ ST - Since the demand of Cenvat credit itself has been dropped in adjudication proceedings, question of imposition of penalty under Rule 14 of CCR, 2004 does not arise : CESTAT

++ Cus - The lower authorities have not examined the legal aspects properly to come to conclusion for correct classification of goods in question, hence, matter remitted back to Commissioner (A) :   CESTAT

++ CX - Assessees cannot be forced to pay duty as per serial No. 90 of Notification No. 4/2006-C.E. and they have option to pay duty under other numbers, viz. 91 and 93: CESTAT

++ CX - Merely because the original copy of invoice is not available, it cannot alter the important criteria of availing credit when it satisfies other criteria : CESTAT

++ ST - AETM (Hang Kong) Ltd. picked up trained crew members from appellant selected at its instance and recruited them in its own company for providing crew management service to ship owners, hence appellant is not an intermediary : CESTAT

July 07, 2022

++ ST - COD mechanism - 'Out-lived' - HC exercised its discretion to sub-serve the interest of justice; cannot be said to have been exercised in a perverse or erroneous manner: SC

++ GST - Order does not deal with the objection and contentions raised by petitioner against the impugned SCN - Non-speaking one-line order is set aside and matter remanded: HC

++ ST - Export of Service - Refund cannot be denied on the ground of limitation in respect of erroneous levies: HC

++ Service - There is no gainsaying the legal position that Disciplinary Proceedings cannot continue ad infinitum - Allowing such proceedings to continue would be destructive of the Rule of Law: HC

++ Service - Once the application for extension of time to complete Disciplinary Proceedings was rejected, the same did not survive and all steps taken subsequent thereto by continuing the same were manifestly arbitrary, illegal and non est in the eyes of law: HC

++ ST - Appellant had voluntarily reversed CENVAT credit alleged to have been taken without authority of law, liability for interest does not merit approval and, consequently, penalty too is unwarranted : CESTAT

++ ST - Even though ledger copies would have been submitted by appellant in course of adjudication, same would not have served any purpose in as much as reconciliation statement together with CA certificate were already available with Commissioner, having not disputed the same, Commissioner could not have confirmed the demand : CESTAT

++ CX - The credit on warranty service provided free of cost during the warranty period through third parties cannot be denied : CESTAT

++ CX - In case of PLA balance, it is not deposited as a duty but it is deposited as advance towards duty, appellant is entitled for refund of PLA balance and limitation provided under Section 11B is not applicable : CESTAT

++ Cus - Since the revenue has not been able to discharge their burden of proof hence the classification of goods declared by appellants cannot be disturbed : CESTAT

July 06, 2022

++ ST - Original date of filing of refund claim is the date of filing for all purposes and date of defect removed could not be substituted as date of filing of refund claim and accordingly, appellant has filed refund claim within period of limitation : CESTAT

++ CX - Value of scrap generated during process of manufacture is not includible in value of goods cleared by job worker to the principal manufacturer : CESTAT

++ CX - Appellants cannot be faulted for availing exemption in bona fide belief that said certificate issued by competent authority is valid for availing exemption, no case has been made for invocation of extended period : CESTAT

July 05, 2022

++ ST - Merely because there was no pre-consultation as per 2017 Master Circular, it cannot be said that proceedings are bad: HC

++ ST - Reasoning of Supreme Court in Sayed Ali and in Canon India Pvt Ltd cannot be imported in the context of CEA, 1944 and/or FA, 1994: HC

++ ST - Notification 22/2014-ST is to be read in conjunction with 38/2001-CE (N.T) - argument that officer of DGCEI is not 'Central Excise Officer' and cannot exercise function Pan India cannot be accepted: HC

++ ST - Challenge to proceedings on ground of limitation involves disputed questions of facts, therefore, these issues are best left to be adjudicated by CEX Officer: HC

++ GST - Division of single tender to answer particular situations and ignore other will not be the right way to go forward - AAR refuses to answer questions raised by applicant: AAR

++ GST - Nominal cost which is recovered from salary as deferred payment for canteen facility provided by third party is 'consideration' for the supply and GST is liable to be paid: AAR

++ Cus - According to petitioner, as per notfn 12/2012-CE, CVD ought to have been paid at 1%, department is directed to decide their application seeking amendment of subject BOEs, in accordance with law: HC

++ CX - The department should have taken into consideration the fact that once there is an order of remand entire matter stands revived from its inception, matter as on date could be said to be pending before Commissioner: HC

++ Cus - When there is no case of contumacious conduct on the part of appellant, impugned order of confiscation and penalty both under Section 112(a)(ii) and 114AA of the Act cannot sustain: CESTAT

++ ST - Since notice for personal hearing proposing rejection of application filed under VCES was issued to appellant after laps of one year of filing application, rejection order is quashed as unsustainable in law : CESTAT

++ CX - Assessee is held entitled for interest on remaining amount of refund also that too at the rate of 12 per cent to be calculated from the date of payment thereafter : CESTAT

++ CX - For the relevant period, penalty under Rule 15 of CCR, 2004 cannot be imposed directly hence, same also cannot be confirmed indirectly by imposing penalty under section 11 AC of CEA, 1944 : CESTAT

July 02, 2022

++ ST - Since there is no further inquiry required in matter, order of Commissioner (A) is modified to the effect that appeal is allowed on merits and Adjudicating Authority is directed to grant refund alongwith interest: CESTAT

++ CX - Since the guesthouse used for operations of factory which produces excisable goods therefore Cenvat credit is admissible to appellant on furnitures used in Guest House of the factory: CESTAT

July 01, 2022

++ GST - Credit card holder offered loan - Service rendered by Citi Bank in extending loan is nothing but a service pertaining to the said credit card - Interest component of EMI of loan advanced by bank is not exempted: HC

++ GST -Since the petitioner has prayed for a relief to compel the respondent bank to grant exemption, the writ petition is maintainable: HC

++ Cus - Order cancelling Special Warehouse Licence is an appealable order before the Tribunal - Respondent to work out the remedies in accordance with law: HC

++ GST - Printing of content provided by recipient using paper & materials of applicant and supply of such printed leaflets to recipient is a composite supply - Supply of service of printing is principal supply; GST @18%: AAR

++ CX - SVLDRS, 2019 - In the SCN, it is not mentioned that the duty demand is jointly and severally payable - A co-noticee is one who is liable for the very same amount along with others: HC

++ GST - Authority has proceeded to pass order for cancellation of registration on new material or facts which neither formed part of SCN nor the same were disclosed to writ applicant - Order set aside: HC

++ GST - TRAN-1 - Rule 117 being directory in nature, the time limit for transitioning of credit would in no manner result in forfeiture of rights even when credit is not availed within the period prescribed: HC

++ Cus - Once in 100% EOU, raw material imported duty free is used in manufacture of final product and same is cleared on payment of duty in DTA, customs duty on raw material cannot be demanded: CESTAT

++ CX - Empty packaging material of cenvatable input is not liable for payment either as excise duty or as cenvat credit under Rule 6(3) of CCR, 2004: CESTAT

++ ST - Relevant date for computing six months periods under Notification No. 41/2007-ST to be taken the date when service tax paid and not first day of month following quarter in which export made, merely on the ground of limitation refund cannot be rejected: CESTAT

++ ST - Since the typographic error in challan number and corelation of compiled record of appellant is impressed upon by them, request of remanding the matter is hereby accepted: CESTAT