TODAY'S CASE (INDIRECT TAX)

June 30, 2022

++ GST - Sl. No. 11A of 12/2017-CTR - Applicant cannot be regarded as a 'fair price shop' as they procure Superior Kerosene Oil (SKO) from IOCL and supply the same to dealers, who in turn, supply it to ration card holders: AAR

++ GST - Seizure order challenged - Once the information from iPhone and Oppo phone, Lenovo laptop, DVR are retrieved by Revenue, the electronic gadgets would be released and handed over: HC

++ GST - Notice alleging that petitioner has not paid tax on reverse charge basis on ocean freight in respect of import consignment is quashed & set aside as Entry 10 to 10/2017-IT(R) is held ultra vires : HC

++ ST - SVLDRS, 2019 - No question of tinkering with the Scheme - Discounted tax cannot be deposited after last date - Relief rightly denied: HC

++ PC Act - As a matter of right respondent can't claim presence of his lawyers during course of recording of his statement: HC

++ ST - The value of taxable services cannot be dependent on value of goods supplied free of cost by service recipient and such a value has no bearing on value of services provided by service recipient: CESTAT

++ ST - Once it is held that appellant is not liable to pay Service Tax, they are also not entitled to avail cenvat credit of amount collected in name of Service Tax and is liable to be paid to Government Exchequer: CESTAT

++ CX - In absence of evidence to establish that duties were paid after adjudication and rendering a finding of fraud, collusion or suppression of fact with intent to evade payment of duty, rejection of refund claims cannot be justified: CESTAT

++ Cus - When a refund application is made within prescribed time-limit before a wrong forum and subsequently filed before correct forum, the original date of filing of claim has to be taken for computing time-limit of one year: CESTAT

June 29, 2022

++ GST - s.98(2), first proviso - Petitioner approached AAR only after a search was conducted and which resulted in issuance of SCN - Application rightly rejected: HC

++ GST - Refund rejection - Reasons assigned may be cryptic on bare perusal but are sufficient to enable the assessee to know the exact cause - not a non-speaking order: HC

++ Cus - 82 year old petitioner seeks redemption of 18 tolas of gold seized in year 1981 - Delay defeats equity - No case made out warranting interference after 41 years of seizure and 39 years of order: HC

++ Cus - After litigating in a court of law, when orders are passed in favour, they are required to be complied with in letter and spirit - Department to pay interest @10%: HC

++ Service Matter - Departmental proceedings commenced against public servant cannot be halted where allegations involve misconduct & have grave ramifications: HC

++ ST - The services provided by appellant since involve the goods also which are leviable to sales tax/VAT, contracts in question are definitely in nature of works contract: CESTAT

++ CX - It is incumbent on department to ascertain correctness of eligibility of exemption notification, by declaring the goods under exemption there cannot be a charge of suppression of fact on the part of appellant: CESTAT

June 28, 2022

++ GST - Applicant is to extend a bouquet of services as 'Hospitality Services' - Supply is a naturally bundled 'composite supply', with 'Provision of accommodation' as principal service - entitled for Nil rate tax: AAAR

++ GST - Incremental foundations made is not the 'foundation with which the Plant and Machinery are fixed to earth' - ITC of GST paid on Steel, cement and other consumables are not available: AAR

++ GST - Applicant's supply of Fortified Rice Kernels is not to the agencies entrusted by Government for free distribution to the economically weaker sections of the society but to Rice Millers - Not eligible for concessional tax rate of 5%: AAR

++ GST - Brochure of hostel facilities, break-up of fees, licences from local authority, Rent agreement - No supporting evidence provided while seeking exemption of 12/2017-CTR, Sr.14 - Prudent to refrain from pronouncing a ruling: AAR

++ TNVAT - Assessment order merits being quashed where it is passed without proper reasoning or by means of speaking order: HC

++ CX - Since the goods have been supplied along with invoices, charges of Abetment in passing of fraudulent Cenvat Credit against appellants are not sustainable, penalty imposed under Rule 26 are set aside: CESTAT

++ VAT - If assessee has not availed of alternative efficacious remedy of appeal prescribed u/s 26 of MVAT Act, it should not challenge assessment order directly in writ petition under Article 226: HC

++ VAT - Sales tax demanded on oil sold by cannot be demanded twice in respect of same transaction: HC

++ GST - If manufacturer is not entitled to claim concessional rate of tax u/s 3(3) of TNGST Act, they are liable to pay penalty u/s 23 of TNGST Act, for violation of provision of section 3(3): HC

++ Cus - Just for failure to physically visit and verify the antecedents of client, revocation of licence of CB broker has been held to be not justified: CESTAT

++ CX - Appellant have maintained regular books of accounts and records in normal course of business and they have been subjected statutory audit by department time to time, so extended period of limitation is not invokable: CESTAT

++ ST - Appellant is not required to reverse CENVAT credit as capital goods have not been physically removed from the premises where they were initially installed : CESTAT

June 27, 2022

++ GST - ITC as a percentage of turnover that was available to respondent during pre-GST period was 2.26% and during post GST period, it was 5.26% for project 'Signum 36' whereas no such benefit accrued with respect to project 'Serenas', profiteered amount of Rs 42,21,321/- shall be refunded alongwith interest @18%: NAA

++ GST - Anti-Profiteering - there is no basis for comparing ITC available before & after 01.07.2017 - Respondent not needed to re-calibrate price of flats due to additional benefit of ITC - Profiteering allegation incorrect: NAA

++ GST - The Authority under Rule 133(3)(a) of CGST Rules orders that respondent shall reduce the price to be realized from buyers of flats/ shops commensurate with benefit of ITC received by him alongwith interest @ 18%: NAA

++ GST - Section 171 of CGST Act, 2017 has been contravened by respondent in as much as additional benefit of ITC @3.07% of base price has not been passed on by respondent to 736 recipients , profiteered amount as determined shall be passed alongwith interest @ 18%: NAA

++ GST - Anti-Profiteering - there is no basis for comparing ITC available before & after 01.07.2017 - Respondent not needed to re-calibrate price of flats due to additional benefit of ITC - Profiteering allegation incorrect: NAA

++ GST - Since the respondent had neither benefitted from additional ITC nor had there been a reduction in tax rate in post-GST period, therefore it does not qualify to be a case of profiteering: NAA

++ GST - The Authority under Rule 133(3)(a) of CGST Rules orders that respondent shall reduce the price to be realized from buyers of flats/ shops commensurate with benefit of ITC received by him alongwith interest @ 18%: NAA

++ Cus - s.129E does not empower Tribunal or Commissioner (Appeals) to waive or reduce pre-deposit - Since mandatory requirement not fulfilled, Tribunal justified in dismissing appeal: HC

++ Cus - Waiver of rent / demurrage / detention charges beyond 60 days - Petitioner having accepted the guilt of mis-declaration of goods as well as quantity, no sympathy can be extended: HC

++ GST - A SCN has to be issued u/s 74(1) and after receiving objections, giving personal hearing, the assessment order ought to have been finalised - Procedure not followed - Orders set aside: HC

++ GST - Writ petition cannot be entertained ignoring the statutory dispensation - Alternate remedy available: HC

++ GST - Address on E-way bill mentioned as registered office of consignee at Jabalpur instead of factory location Rewa - Mistake being bonafide , invoking principle of parity, orders quashed and set aside: HC

June 25, 2022

++ Cus - It is an established principle of law that suspicion, howsoever strong, cannot be treated as proof in absence of corroborative evidence: CESTAT

++ ST - The circular 151/2/2012-S.T. is binding on department which makes it abundantly clear that construction service provided by builder/developer will not be taxable for period prior to 01.07.2010: CESTAT

++ CX - The only lapse on the part of Chairman and MD of company is that they had not ensured proper accounting of finished goods for which a token penalty can be imposed: CESTAT

June 24, 2022

++ GST - Time limit prescribed under the Act and rules made thereunder to complete investigation and further directions by Authority is directory in nature: NAA

++ GST -  Authority has been empowered under rule 126 to 'determine' Methodology & Procedure but not to 'prescribe' it: NAA

++ GST - Benefit of tax reduction can be passed only by commensurate reduction in the price and it cannot be based through promotion schemes: NAA

++ GST - s.171  mandates only commensurate reduction in price  - Increase in grammage is not in any way equivalent or akin to commensurate reduction in prices: NAA

++ GST -  Methodology of 'netting off' cannot be applied in the case of tax reduction but methodology of 'zeroing' has to be applied: NAA

++ Cus - Fact that petitioners, Sri Lankan nationals, also purchased 112 bottles liquor beyond permissible limits and attempted to walk through green channel without declaration shows that their visit was not purely pilgrimage: HC

++ Cus - It is not understood as to how petitioners who claim to be pilgrims visiting an alien country would wear costly jewellery, even if it be their customs - Import of gold ornaments exceeding Rs.50,000/- cannot be considered as part of bonafide baggage: HC

++ ST - Matter ought to have been properly examined by Designated Committee as unnecessarily the assessee is being denied the right to settle dispute under SVLDRS: HC

++ Cus - Challenge of O-in-O - Petitioner has an alternate remedy, therefore, writ petition is dismissed: HC

++ GST - Seized goods can be released subject to satisfaction of conditions set out under clauses (a) to (c) of s.129(1) - Challenge to notices fail: HC  

++ GST - Composite supply of works contract provided to UPRNN, a Government Entity, by way of construction of Residential Quarters meant for use of employees of ESIC is chargeable to tax @18%: AAR

++ GST - Applicant has failed to furnish the substantiating documents as required by the Authority and, therefore, no ruling is extended on the question sought: AAR

++ ST - Since the amount in question was deposited under mistake of law, hence, was a deposit instead of being duty, section 11 B of CEA, 1944 and time bar therein cannot be applied: CESTAT

++ ST - Appellant and service recipient are two distinct person, hence, the service provided by appellant to M/s. Celtic Cross Holding Inc. USA clearly falls under export of service: CESTAT

++ Cus - The explanation on ground of illness, given by assessee is held to be absolutely vague as they could not substantiate with any medical record, possibility of appeal filed before Commissioner (A) to be an afterthought and a time gaining strategy cannot be ruled out: CESTAT

++ CX - Since documentary evidence is available on record and there are various statements which the appellant claims have been obtained under duress, reliance on said statements cannot be placed in absence of same being tested under Section 9D of CEA, 1944: CESTAT

June 23, 2022

++ ST - SVLDRS, 2019 - What is relevant is admission of tax dues before the cut-off date - Certainly, quantum should have some resemblance to actual dues: HC

++ CX - SCN is not on account of any discovery of new facts either by conducting an inspection or based on intelligence - Information was gathered from registers/challans maintained by assessee - Extended period of limitation could not have been invoked: HC

++ CX - Tax statute is to be plainly read without bringing the element of equity into play: HC

++ CX - Pandemic - Refund was sanctioned within extended time period prescribed under the 2020 Act and, therefore, the claim for interest in that regard is untenable: HC

++ ST - The credit of Service Tax paid on the basis of premium paid to Deposit Insurance and Credit Guarantee Corporation for insuring deposits is eligible: CESTAT

++ ST - Assessee was not liable to pay the amount for which reversal was proposed vide earlier SCN, Section 12B has wrongly been invoked by Commissioner (A), assessee is held entitled for refund alongwith interest @ 12% from date of deposit till the date of realization: CESTAT

++ CX - Appellant have discharged customs duty along with interest beyond three years till the date of payment, therefore, as per statutory provisions, demand of interest over and above the interest paid by appellant is not sustainable: CESTAT

++ CX - Restoration of rejected portion of a claim for refund is permitted by law and availment suffices to entitle inclusion for apportionment towards export of a subsequent quarter, claim of assessee has been wrongly discarded by lower authorities: CESTAT

++ Cus - Once Revenue collects duty along with interest, there remains nothing 'improper' about 'import', in which event both Sections 111 and 112 will have no role, since when there is no improper import, then there remains nothing to confiscate: CESTAT

June 22, 2022

++ GST - Vires of s.16(4) challenged - Petitioner also submits that they are deprived of availing remedy u/s 112 as Tribunal has not been constituted - Staying the order would mean staying 16(4) which the Court would restrain from doing: HC

++ ST - SVLDRS, 2019 - Duty not quantified on or before 30th June 2019 - Voluntary disclosure after being subjected to enquiry - Applicant rightly barred from reaping benefits: HC

++ AP VAT - phrase any order within Section 31 cannot be limited only to assessment orders, where the same has not been specified by Legislature: HC

++ AP VAT - insistence of pre-deposit of 12.5% of duty demand raised unsustainable where issue at hand does not pertain to imposition of tax, but relates to issuance of H Forms: HC

++ ST - Tax paid twice on same supplies, once as Service Tax and as GST - Refund to be given with interest - cannot be denied on technicalities: HC

++ Cus - Delay in granting refund of SAD - Whether interest is payable u/s 27A of the Customs Act, 1962 - Matter remanded - AA to await apex court decision in CMS Info System Limited: HC

++ Cus - Goods lying in the custody of department have, as per importer, become obsolete - No order need to be passed w.r.t release of goods except directing department to complete adjudication proceedings: HC

++ CX - Since appellant not only paid 7.5%/10% but the entire duty therefore, in terms of Section 35F r/w Board Circular 984/8/2014-CX., revenue should not have recovered the amount of penalty and interest by way of appropriation from sanctioned rebate claim: CESTAT

June 21, 2022

++ Cus - SCNs cannot be stifled to legitimize evasion of Customs duty on technical grounds that the Officers from DRI were incompetent to issue notices and were not officers of customs: HC

++ Cus - If the provision as stood during the period in dispute are not produced for the attention of the Court, the Courts may, by oversight, end up giving ratio which are not consistent with the provisions as in force: HC

++ Cus - Internal arrangement - Merely because the Officers of the Customs and CEX Department are selected and deputed to Directorates does not mean that they cease to be Officers of the respective Departments: HC

++ Cus - Prayer to re-export 'betel nut' imported from Indonesia and Myanmar cannot be acceded to as the question involves determination of various facts, which the authorities would be competent to undertake: HC

++ GST - Since interpretation of several provisions of law and notifications are involved, writ petition cannot be thrown out at the motion stage on the ground of availability of alternative remedy - Petition has to be heard and decided on merit: HC

++ GST - Discrepancies found in stock - Tax and penalty deposited - Seeking a re-measure of the stock of coal once the search team left the premises is an afterthought as the stock could not have remained untouched later: HC

++ GST - No material on record to establish as to when the order was communicated to petitioner - Crucial fact for determining the limitation for filing appeal not ascertained - Matter remanded: HC

++ GST - Delay of 865 days in filing appeal - SC directive issued upon outbreak of COVID in the year 2020 cannot be applied to an order passed in February 2019: HC

++ Cus - Appellant has been clearly in violation of importing goods contrary to import policy as notified by DGFT notification, therefore, same have been correctly confiscated under section 111 (d) : CESTAT

++ ST - The perusal of orders of adjudicating authority shows clear acknowledgement that appellant has reversed entire Cenvat Credit alongwith with interest, findings confirming demand of said amount are contrary to their own observations: CESTAT

++ CX - When all relevant facts were in knowledge of authorities at the time of first SCN, while issuing subsequent SCNs on similar facts, suppression of facts on part of assessee cannot at all be alleged: CESTAT

++ CX - Since Forklift taken on hire under Supply of Tangible Goods service are indeed used for handling material which is part and parcel of process of manufacturing final product within factory, appellant is entitled for Cenvat Credit: CESTAT

June 20, 2022

++ Cus - Settlement - A person, who may not be an Importer or Exporter, can still file an application u/s 127-B of the Act if he is served with a SCN charging him with duty: HC

++ GST - Grant of interim anticipatory bail cannot be a ground to allow anticipatory bail finally: HC

++ CX - The place of removal in case of delivery of goods on FOR basis is the door step of consumer, accordingly, services for outward freight gets covered under Rule 2(l) of CCR, 2004 and are eligible for Cenvat credit: CESTAT

++ CX - Appellant fails to prove that job work goods had been sent to factory of Shri Mohan Lal Barfa itself to be used in manufacture of such specified goods as are exempted from whole duty of excise leviable thereon under Notification No. 8/2003 : CESTAT

++ ST - The activities rendered by appellant in nature of camp mobilisation and demobilisation would not amount to Survey and Exploration of Mineral as alleged in SCN, demand cannot sustain: CESTAT

June, 18, 2022

++ ST - Transaction value for Custom duty and Excise duty (CVD), includes ocean freight, appellant has suffered double taxation by again paying service tax on ocean freight, accordingly, appellant is entitled to refund alongwith interest: CESTAT

++ CX - Something positive other than mere inaction or failure on the part of manufacturer or conscious or deliberate withholding of information when manufacturer knew otherwise, is required before assessee is saddled with any duty liability: CESTAT

June 17, 2022

++ GST - Hostel accommodation provided to students - As value of service is less than Rs.1000/- per day, supply is exempted: AAR

++ GST - Due date for furnishing annual return for the FY 2017-18 was 30.09.2018, therefore, order passed on 08.07.2021 is saved by limitation: HC

++ GST - Classification of goods is to be determined by commercial identity test and not by functional test - U-bolt, front spring bolt classifiable under TH 7318 and Spring Pin under TH 7320; attract GST@18%: AAR

++ GST - Petitioner's request for personal hearing was neither considered nor rejected but order passed - Order set aside and matter remanded: HC

++ CX - There is no saving Clause in Section 174 of CGST Act for initiating and imposing penalty for none filing of returns (ER-1), once the provisions of GST have been imposed w.e.f. 1st July, 2017: CESTAT

++ Cus - Even though the principles of natural justice stand breached by lower authorities, that need not concern the disposal of dispute which, by absence of evidence to displace the declared value, calls for impugned order be set aside on merit: CESTAT

++ ST - The amount collected by appellant from their contractor, is in nature of liquidated damage for non performance, thus, there is no amount received for any service as defined under Section 66E(e) of FA, 1994 : CESTAT

++ CX - CENVAT credit eligibility is on condition that services were received by appellant, same was used in or in relation to manufacture of final product which has been cleared on payment of duty, eligibility of CENVAT credit cannot be related to Central Excise registration: CESTAT

June 16, 2022

++ Cus - Non-supply of documents has vitally affected right of detnus under Art 22(5) of Constitution, detention order is bad for same reasons: HC

++ GST - The Department is directed to grant refund of IGST already paid by applicants pursuant to Entry No. 10 of Notfn 10/2017-IGST (Rate) along with statutory rate of interest: HC

++ Cus - It is not for AA to conclude in advance whether cross-examination would be helpful or not - Petitioner entitled to cross-examine even if material available is too little: HC

++ Cus - When principles of natural justice are violated, doors of Court cannot be closed on the ground of availability of alternate efficacious remedy: HC

++ ST - SVLDRS - Respondent should not take a pedantic approach but keep in mind purpose behind introducing scheme - Verifying truthfulness of claim would not amount to disposing appeal: HC

++ GST - Revenue informs that provisional attachment order was reviewed and attachment for further period was approved, however, no such order placed on record - Provisional attachment of bank account cannot survive beyond one year: HC

++ GST - Upon deposit of 10% of disputed tax amount during pendency of appeals, recovery of any remaining balance is deemed to have to been stayed - Garnishee proceeding, therefore, has become infructuous: HC

++ GST - Refund of unutilised tax credit - When services are rendered abroad, CGST will not apply - Respondent could not establish that incidence of tax has been passed on to recipient - No unjust enrichment: HC

++ GST - No notice issued u/s 129, therefore, act of Revenue in insisting that petitioner retain vehicle at the location where it was intercepted is gross contravention of statutory provisions: HC

Junne 15, 2022

++ GST - Department has been continuously recovering towards demand quantified by debiting amounts from credit ledger account - If appellant had preferred an appeal, he would be statutorily required to pre-deposit only 10%: HC

++ GST - Appellant has no other alternative remedy provided under the Act for him to avail questioning the correctness of the order, therefore, they had rightly invoked jurisdiction of this Court: HC

++ GST - Rule 89(4) - ITC Refund - Mutatis Mutandis - Words tax and cess have to be used interchangeably - Domestic supply of finished goods which are not liable to Compensation Cess are to be reckoned as exempted supplies: HC

++ GST - Refund - Delay in receiving Certificate of export -  Tax authorities are to adjudicate upon the tax liability in accordance with law - Matter remanded: HC

++ ST - Service tax cannot be imposed on the amount representing reimbursement of expenses like conveyance, travelling and mobile expenses : CESTAT

++ Cus - When there was an attempt to smuggle red sanders, it is incorrect to say that CHA is only liable under CBLR for such violations, matter has been correctly remanded for reconsideration: CESTAT

++ CX - The issue regarding sale being FOR basis has been raised for first time in Tribunal, matter needs to be re-examined by lower authorities and if sales are on FOR basis, benefit of Circular needs to be granted to appellant by allowing credit : CESTAT

++ CX - Since the appellant have supplied goods on FOR basis, price charged to customer is inclusive of insurance and freight and on such price, excise duty was charged, therefore credit is admissible : CESTAT

June 14, 2022

++ GST - Interest granted under Arbitral Award - Contract of year 2001 did not in any way contemplate liability of GST - It is MCGM who is liable to pay tax on Reverse charge basis - Same cannot be deducted from dues payable to applicant: HC

++ GST - Since the taxable turnover is below the threshold limit of Rs.20 lakhs fixed for tobacco products, respondents had no jurisdiction to issue SCN and/or pass impugned orders - Amount deposited to be refunded along with interest @6%: HC

++ GST - Notice as well as order impugned was passed on same date - An opportunity of hearing has not been afforded and, therefore, it is in breach of principles of natural justice - Order set aside: HC

++ GST - MOV-6 issued alleging bogus billing in the past - Without going into merits of case, respondent authority to release vehicle/goods, upon petitioner depositing Rs.17 lacs and furnishing bond of 65 lacs: HC

++ Cus - Goods are correctly classifiable under CTH 8443 32 50, order passed reclassifying under 8443 39 10 is erroneous and requires to be set aside: CESTAT

++ ST - Revenue cannot be permitted to build up a new case which was not taken in Show Cause Notice which is the foundation of proceedings against the assessee: CESTAT

++ ST - Since the order has not been served in person when it was passed or soon thereafter, presumption drawn by Commissioner (Appeals) of service of notice by speed post is erroneous: CESTAT

++ CX - Amount of interest and penalty are sub judice before Tribunal, this fact was admittedly in knowledge of court below, accordingly, adjustment made from amount refundable to appellant is bad and same is set aside: CESTAT

++ CX - It is to be reconsidered as to whether the documents on record including invoices are with respect to amounts mentioned in SCN and whether same are sufficient to falsify the allegations in SCN, matter remanded to reconsider the matter: CESTAT

June 13, 2022

++ GST - Contributions made to District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) as per MMDR Act, 1957 are paid as a proportion to the royalty paid for extracting minerals - Classifiable as TI 997337 and attract GST @18%: AAR

++ GST - Permit fee collected by forest department @Rs.10 per ton of coal transported through forest area - Tax payable on reverse charge basis; service not covered under heading 9973: AAR

++ Cus - When there is no contemporaneous data provided to appellant for enhancement of value which amounts to clear violation of principles of natural justice, matter remitted back to assessing officer who shall consider representation to be given by appellant on all the issues: CESTAT

++ CX - The appellant became entitled to interest from after three months of filing of original refund claim: CESTAT

++ CX - No irregularity is opined to have been committed while charging amount of CVD and additional duties, the credit whereof was not taken by appellant, from its customers, confirmation of such demand is nothing but amounts to paying what has already been paid: CESTAT

June 11, 2022

++ ST - Income derived from rent paid by Postal department, banks etc. allowed to set shop in university campuses also falls within the purview of educational services, hence exempted: HC

++ GST - ITC - Technical reasoning that SCN cannot be treated as a communication u/s 42(3) of the Act, 2017 intimating mismatch cannot be countenanced: HC

++ Cus - Whole burden or onus to establish smuggled nature of goods/gold is on revenue which have not been discharged, the proceedings are ab initio void, wholly holding without jurisdiction: CESTAT

++ CX - Since the refund was sanctioned within three months from date of application and refund arose consequent to order of Commissioner (A), no interest is payable from date of deposit of duty during investigation: CESTAT

June 10, 2022

++ PIL - Mining lease - Swindling &Siphoning of public money -What ultimately would be the fate of writ petition lies in the womb of morrow - Petitions cannot be thrown away on the ground of maintainability: HC

++ CX - When the issue was open to more than one interpretation, dispute raised by Department is debatable and subject to different interpretation, extended period of limitation is not available to Revenue: CESTAT

++ ST - Activity of transportation of coal from pit-heads to railway sidings would appropriately be classified under head 'transport of goods by road service' and does not involve any service in relation to 'mining of mineral' : CESTAT

++ CX - Since refund claim was allowed under Rule 9B of erstwhile rule and not under section 11B of Act, there was no case for interest on delayed refund as Rule 9 B contained no such provisions for interest: CESTAT

June 09, 2022

++ GST - Only 401 crores - Excess ITC has been sought to be utilized by raising tax invoices in the garb of 'support service' - Transactions in question prima facie amount to siphoning of tax amounts: HC

++ Arbitration - Fact that IRCTC has already factored GST in the train fare lends heft to the stand taken by respondent that it should be reimbursed GST deposited by it: HC

++ Arbitration - Court cannot supplant its view with that of the arbitrator as interpretation of terms of contract and appraisal of evidence is completely within his domain: HC

++ GST - Notice for attachment in form DRC-16  can be construed only as a provisional attachment order made u/s 83: HC

++ GST - Procedure contemplated u/s 74, especially u/s 74(5) not complied with before service of notice u/s 74(1) - Order set aside and matter remanded: HC

++ CX - Irrespective of the fact that windmill is located outside factory premises, repair and maintenance service is admissible for Cenvat credit in terms of rule 2(l) of CCR, 2004: CESTAT

++ Cus - Though appellant need not physically go to customer premises to verify genuineness, they cannot be careless about customers and deal with persons who claim to be representative of their customers: CESTAT

++ CX - Even though appellant have reversed Cenvat Credit on audit objection and subsequently, realizing that they are entitled for Cenvat credit, filed a refund claim, therefore same can not be rejected on the ground that they had paid the amount voluntarily : CESTAT

June 08, 2022

++ GVAT - Creation of charge over an assessee's immovable property by the Department cannot be treated as attachment of such property: HC

++ GST - Providing boarding and lodging to students undergoing training under Deendayal Upadhyaya Grameen Kaushalya Yojana is not a composite supply - accommodation service is exempted; food is taxable @5%: AAR

++ GST - Sale of old car - Value is  difference between consideration received for supply of said car and depreciated value; taxable @18%: AAR

++ CX - When the appellants have been given permission to clear goods in DTA, department cannot then vaguely allege that they are not similar goods, the demand therefore cannot sustain: CESTAT

++ Cus - Since the amount as has already been deposited by appellant is definitely more than 7.5% of amount of penalty, Commissioner (A) is directed to afford proper opportunity of hearing to appellant and to decide the appeal on merits: CESTAT

++ CX - When there is lack of proper opportunity given to appellant for hearing, as no further date was fixed after receipt of report of Range officer, nor a copy was given to appellant asking for reply, matter is remanded to original Adjudicating Authority: CESTAT

June 07, 2022

++ Cus - NIA case - Import of gold is not prohibited - Mere smuggling of gold without any connection whatsoever to threatening economic security or monetary stability of India cannot be a 'terrorist' act: HC

++ Cus - Statement will be admissible in evidence for prosecution u/s135 or 'other relevant Statutes' - However, 'other relevant Statutes' will not include an unconnected Statute, Unlawful Activities (Prevention) Act, 1967: HC

++ GST - ITC blocking - Merely by recording that some investigation is going-on, a drastic far-reaching action under Rule 86A of the CGST Rules cannot be sustained: HC

++ GST - Because of change of composition from Partnership Firm to Private Limited Company, registration number changed - Such reason cannot stand in the way in claiming ITC: HC

++ GST - Annual sinking fund collected in July or August by RWA from its members - If the total monthly maintenance charges exceeds Rs.7500/-, it is liable to tax: AAR 

++ GST is not leviable on electricity and water charges collected by RWA from residents: AAR 

++ CX - Since the appellant has not filed reply/any documents with regard to nature of sale whether it is FOR or otherwise, matter needs to be reconsidered: CESTAT

++ Cus - If importer agreed to destuction of imported consignment for lapses in Phytosanitary Certificate, then importer cannot later turn around & contest order directing destruction, being based on importer's own confessions: HC

++ CX - Merely because the goods were not accounted and for which a plausible explanation has been given by partner of firm, goods cannot be confiscated and no fine or penalty can be imposed: CESTAT

++ ST - In absence of provision in law providing for notional addition to value/price charged, question of adding notional interest on deposit amount as a consideration received for services rendered does not arise: CESTAT

June 06, 2022

++ NDPS - Once matter is under investigation and police have not yet filed charge sheet, it is not fit case to grant bail taking note of huge quantum of MDMA seized: HC

++ GST - Seizure of vehicle for want of fresh eway bill is unsustainable, where transaction is bona fide & where original valid e-way bill lapsed due to delay caused by vehicle break-down: HC

++ Cus - It is not clear why import has been made through Tuticorin Port, in the tip of the Peninsula in Bay of Bengal if petitioner's case is that the import was made for their factory in Rajasthan - Petitioner to explain - Matter remanded: HC

++ CX - Once statute provides for payment of interest and stipulated conditions are fulfilled, Revenue would be obliged in law to pay interest on refund of unutilized cess: HC

++ ST - Date of filing of refund claim should be reckoned as the claim of first filing of refund claim and not as per the date of filing revised refund claim: CESTAT

++ Cus - Department is bound to accept description of goods in import documents as well as sale invoice to be one and the same, on the strength of certificate/correlation statement issued by Statutory Auditor: CESTAT

++ CX - Since Tribunal has remanded the matter by keeping all issues open for discussion by original authority, appeals cannot be decided in isolation: CESTAT

++ CX - Since the appellant filed the refund claim after stipulated time period of one year as provided under Section 11B, same is time barred: CESTAT

June 04, 2022

++ CX - Appellant is entitled for Cenvat credit in respect of MS Angles, Channels, Beams and Plates used as capital goods in repair and maintenance of plant and machinery: CESTAT

++ CX - Process of testing of medicaments is an integral part which is used in relation to manufacturer of final product, appellant is entitled for credit on input and packaging material used for testing products: CESTAT

June 03, 2022

++ VAT - Amount charged by hotel from customers in name of service charge, is liable to be included in its taxable turnover: HC

++ VAT - In fiscal or taxing enactments, it is not necessary that every enactment should be backed by objects and reasons: HC

++ GST - Buying used paintings and selling same on website to highest bidder - supply attracts GST @12%, valuation in terms of rule 32(5): AAR

++ CX - The credit on outward transportation from place of removal upto the buyers' premises/dealers for period upto 31.03.2008 is eligible: CESTAT

++ ST - Appellant has neither taken any registration nor paid the Service Tax for last 5 years, there is a clear suppression of fact on the part of appellant, hence, they are not eligible to avail benefit under section 73(3): CESTAT

June 02, 2022

++ GST - Order passed without considering Circular in existence - Non consideration of material provisions is a mistake of law - Order rectifiable u/s.102: AAR

++ GST - s.104 - Not pointing out relevant circular during the course of hearing or in written submissions is suppression of material fact - Order ab initio void: AAR

++ GST - Supplying, operating and maintaining air-conditioned electrically operated buses for NMMT is exempted: AAR

++ GST - Occupational Health Check-up (OHC) service provided by the hospital  outside the clinical establishment is to be treated as Health Care service and same is exempted in terms of Sr. no. 74 of 12/2017-CTR: AAAR

++ CX - None of the exceptions as carved by Apex Court [Radha Krishan Industries] for maintainability of writ application, bypassing alternative remedy, has been met - Petition dismissed: HC

++ CX - Rebate - Whether double benefit claimed - There are two different facts and circumstances projected by both the appellants and respondents - Matter remitted to redo the entire process: HC

++ ST - Merely for the reason that there was no strict adherence to ratio as envisaged during relevant point of time for payment of tax insofar as assessee and service provider, assessee cannot be made liable to pay double tax: HC

++ Cus - It is the practice of Department not to issue summons to Managing Director and secondly, summoning of same should be undertaken only as a last resort in cases where assessees are not cooperating or investigations are to be completed expeditiously: HC

June 01, 2022

++ GST - Penal provisions u/s 171 (3A) which are effective from 01.01.2020 cannot be made applicable retrospectively: NAA

++ GST - Construction Service - Respondent switched over to new tax payment scheme from 1st April 2019 - Since no ITC benefit availed, s.171 is  attracted only till 31.03.2019: NAA

++ GST -  On what basis the Commissioner has decided to invoke Section 83 to go for a provisional attachment is not indicated - Order does not stand legal scrutiny: HC

++ GST - Cinema tickets base price increased upon reduction of tax rate - Profiteering proved - recipients unidentifiable, therefore, profiteered amount along with interest to be deposited in Consumer Welfare Fund: NAA

++ GST - Consignor sought to take back goods from Tripura to Guwahati - Fresh e-way bills issued and produced - Rule 138(10) applies - No justification in further detention of goods and vehicle: HC

++ CX - Merely because the assessee have not followed provisional assessment, refund cannot be denied as Revenue cannot retain any amount which is not due as per law: CESTAT