TODAY'S CASE (INDIRECT TAX)

Oct 31, 2022

++ GST - Cancellation of registration - It is in public interest to have  taxpayers pay taxes rather than preventing a taxpayer from further continuing their business: HC 

++ GST - Respondents are not taking any decision on the application of  petitioner for revocation of cancellation of registration, on one pretext or other - Applications to be heard and decided within four weeks: HC

++ GST - Notice pay recovery not taxable;  Amount collected from employees for providing a new ID card is not chargeable to GST: AAR

++ GST - Liquidated damages collected for non-performance is not taxable: AAR

++ GST - Amount of Creditors balance unclaimed and written off by way of crediting P&L Account is not taxable: AAR

++ Cus - Regularization is complete in all respects and it is only in absence of such regularization that proceedings under section 111(o) of Customs Act, 1962 could have been brought to conclusion: CESTAT

Oct 29, 2022

++ Cus - Once the penalty has been imposed u/s 112(a) of Customs Act, 1962 in view of proviso, penalty under Sec114A cannot be imposed: CESTAT

++ ST - Date of original submission has to be taken for computing period of one year as it is the date on which appellant has filed the claim initially: CESTAT

Oct 28, 2022

++ GST - In reply to SCN, Petitioner did not opt for personal hearing; admits that it was sheer mistake and they have a right of being personally heard - Order set aside and matter remanded: HC

++ CX - Remission - Tobacco and Pan Masala lying since the year 2004 have become unfit for consumption - Interim order passed permitting petitioner to destroy the goods on furnishing bank guarantee: HC

++ ST - SVLDRS, 2019 - Bona fide attempt to make payment cannot be doubted and, therefore, substantive benefit of Scheme cannot be denied - Petitioner to deposit amount specified in SVLDRS-3 along with interest @ 9%: HC

++ Cus - Although a litigant should be held to account for failure of his lawyer to take necessary steps to protect his interest, there is only so much that the litigant can do - Costs imposed: HC

++ CX - Courier was entrusted with dispatch of documents and correspondence from office of appellant, credit availed are in connection with manufacturing activity: CESTAT

++ Cus - Even if assessee does not pay the SAD amount in cash but the same is debited in their MEIS scrip, the refund of SAD cannot be denied: CESTAT

++ ST - As regards cum-tax value, where any gross amount is charged from service recipient, same shall be treated as value inclusive of all including service tax: CESTAT

Oct 27, 2022

++ Cus - Evidence not tested by cross examination has no probative value and there should be opportunity provided to opposite parties to cross examine the witnesses: CESTAT

++ CX - Since the MS items were used for fabricating and installing paint plant within premises of appellant, credit availed on MS items has to be allowed to appellant: CESTAT

++ ST - Since whole of service was provided and received outside India, therefore, service tax is not leviable on Business Exhibition Service received by appellant which was performed outside India: CESTAT

Oct 26, 2022

++ GST - Refund - Stand of Revenue that interest could not be granted because computation was not received from petitioner is a baseless excuse: HC

++ GST - To avoid payment of statutory deposit of 10% of demanded tax to prefer appeal, petition filed - Liberty given to petitioner to approach appellate authority: HC

++ GST - PIL filed regarding inaction by department to recover GST from Cable Operators - Bench directs Asstt. Commr. to take an appropriate decision in the matter within a period of three months: HC

++ GST - SCN issued is bereft of provisions of law, which are alleged to have been violated - Order set aside and matter remanded: HC

++ GST - Grant of lease for carrying out quarry operations - Royalty payment - Apex Court has granted stay for payment of GST - status quo to be maintained: HC

++ GST - Diverse tax rates by bidders - Tender notice fails to specify a uniform rate - Respondent no. 3 directed not to further advance with work which is the subject matter of this petition: HC

++ VAT - Issues of pre-deposit & extent thereof squarely fall in VAT Tribunal's realm, to be decided upon by considering facts of & merit in each case: HC

++ VAT - If purchased goods are returned after period of limitation, dealer is not entitled to claim any refund of tax paid on such purchase or avail benefit of ITC on paid on such purchase: HC

++ ST - Differences in figures reflected in ST-3 Returns and form 26AS cannot be basis for raising Service Tax demand without examining the reasons for such differences: CESTAT

Oct 25, 2022

++ CX - Classification - Modified Vapour Absorption Chillers is primarily meant to produce chilled water - incidental production of hot water in its operation is only incidental & cannot be ground for classification of MVAC under Chapter 8418: SC

++ CX - definition of a product given in HSN should be given due weightage in classification of such product for purpose of levying Excise duty: SC

++ CX - HSN being internationall accepted nomenclature is safe guide for classification - If in doubt, HSN be chosen advisory to ascertain true meaning of expression used in tariff Act: SC

++ GST - Services provided to Kollam Municipal Corporation of scientific closure of dumpsite is classifiable under SAC 9994 and is exempted: AAR

++ GST - GTA service - Value of free diesel filled by service recipient in the vehicle(s) provided by the applicant will be subject to the charge of GST: AAR

++ ST - Refund of service tax paid on ocean freight - case remanded pending settlement of issue in High Court: CESTAT

++ Cus - Dismissal of appeal on time bar is unjustified where assessee submitted a letter containing written submissions - case remanded for reconsideration: CESTAT

++ CX - When amount involved is less than the threshold limit, in terms of Section 35B(1) of CEA, 1944, Tribunal may refuse to admit an appeal filed before it: CESTAT

Oct 22, 2022

++ Bihar GST - Assessment order is unsustainable where it is not backed by decipherable or sufficient reasons to establish how tax demand was computed & where insufficient time is given to assessee to prepare defence: HC

++ Cus - Appellant has failed to establish that goods on which SAD refund has been claimed are the same goods on which SAD was paid, rejection of refund under Notfn 102/2007-Cus is proper: CESTAT

Oct 21, 2022

++ NDPS - Detained person must be given all information to mount an effective defence - Order of detention illegal & hence quashed: SC

++ GST - Part B of E-way bill not updated - Tax component is already paid and the penalty is furnished in the form of bank guarantee - Goods to be released: HC

++ GST - Petitioners are allowed to file and correct TRAN-1/2 form and in case it is not possible to file the same online, to file the same manually: HC

++ GST - Failure to issue mandatory SCNs u/s 73/74 along with summary SCN u/r 142(1) goes to the root of matter and vitiates entire proceeding and violates principles of natural justice: HC

++ Cus - Commissioner did not lodge any claim before Resolution Professional after public notices were issued u/ ss 13 and 15 of the IBC - Liability of any nature whatsoever stands extinguished in view of implementation of Resolution Plan - Appeal infructuous: HC

++ ST - The activity of laying of Synthetic Athletic Track Surface is of civil nature, therefore, would be covered under CICS, however, since the same have been provided in respect of sport facilities owned by Government, State or Centre, same would not be chargeable to tax: CESTAT

++ CX - Situation is Revenue neutral as on payment of duty again in cash as demanded by impugned order, appellant shall be entitled to refund of equal amount being duty discharged earlier through cenvat credit: CESTAT

Oct 20, 2022

++ GST - Matter hanging fire without revenue taking steps to recover penalty - Attachment of bank account having continued beyond the time frame of one year, Bench directs that the same be lifted: HC

++ GST - Works contract executed for construction of IT Incubation Centre for TSIIC falls under exception to Sr. no. 3(vi) of 11/2017-CTR; attracts tax @18%: AAR

++ GST - In absence of GST registration, petitioner would be deprived of his livelihood which amounts to violation of right to life and liberty as enshrined in Article 21: HC

++ CX - Situation is Revenue neutral as on payment of duty again in cash as demanded by impugned order, appellant shall be entitled to refund of equal amount being duty discharged earlier through cenvat credit: CESTAT

++ Cus - Assessee having slept over its right for nearly ten years, cannot take shelter as it has taken, which is not permitted under law: CESTAT

++ ST - Since appellant has not committed any positive act of suppression of facts with intention to evade payment of service tax, penalties imposed under section 78 of Finance Act, 1994 is set aside: CESTAT

Oct 19, 2022

++ VAT - High Court should not entertain petition under Article 226 of Constitution challenging assessment order denying Input rebate, against which statutory appeal is available u/s 46(1) of MP VAT Act: SC

++ Gift tax - For purpose of determining value of shares which were in lock-in period, cannot be treated as quoted shares: SC

++ Cus - Since no specific order has been passed pursuant to the communication of Dy. Commr . (Policy) to suspend licence, for the moment, the petitioner cannot be prevented from carrying on its business: HC

++ ST - Challenging the taxability of service - Appeal lies before Supreme Court: HC

++ CX - Loose sheets recovered during search are inadmissible evidence; demand based thereon is unsustainable: CESTAT

++ CX - Statement recorded at stage of inquiry/investigation will not be relevant for purpose of proving truth of requisite facts during prosecution: CESTAT

++ CX - Department may frame guidelines for compliance with Sections 9D of CEA, 1944 & Section 138B of Customs Act, 1962, to save time & effort of authorities: CESTAT

++ ST - If tax is paid along with interest before issuance of show cause notice, then in that case, show cause notice shall not be issued: CESTAT

Oct 18, 2022

++ GST - AA should have borne in mind predicament faced by taxpayers on introduction of new set of procedures and time required to get acquainted - registration to be revived: HC

++ Cus - Provisions relating to interest contained in s.28AB are not borrowed in the legislation imposing levy of surcharge or CVD or SAD: HC

++ Cus - Settlement Commission - No inherent authority - Deriving financial benefits itself cannot be a ground to order payment of interest: HC

++ CX/GST - Doctrine of estoppel cannot be invoked for preventing the government from discharging its functions under the law: SC

++ CX/GST - Proviso to Section 174(2)(c) of the CGST Act cannot be rendered redundant and otiose - Notification 21/2017-CE is valid in law: SC

++ CX - The sale being FOR sale and freight is inclusive in price of goods and same was not charged separately to customers, cenvat credit in respect of outward transportation is admissible: CESTAT

Oct 17, 2022

++ CX - Only going by the theoretical reference that goods are marketable is not sufficient: HC

++ GST/CX - Levy of NCCD in the absence of levy of excise duty cannot be considered as bad in law: HC

++ GST/CX - Respondents are entitled to levy CGST as well as excise duty on tobacco and tobacco products: HC

++ GST - Challenging panchanama (s) after a lapse of two years is of no consequence when SCN has been issued - Petition devoid of any substance, hence dismissed: HC

++ GST - Death of proprietor communicated through a letter instead of following procedure in form GST REG-16 - Hyper-technical ground cannot be taken to deny transfer of registration: HC

++ GST - Investigation completed, therefore, further incarceration of the petitioner, a Chartered Accountant, behind bars would not serve any useful purpose - Bail granted: HC

++ GST - Audit, Anti-evasion and Range - Parallel proceedings cannot be conducted by three wings of the same department for the very same period: HC

++ CX - An assessee shall not be penalized in a case where demand on them depended on interpretation of conditions of exemption notification claimed by assessee: CESTAT

++ GST - Fake documents uploaded for obtaining registration fraudulently and issuing fake invoices for passing on ITC - Co-accused persons are absconding and there is strong apprehension that applicant may also abscond - Bail application rejected: HC

++ Cus - Since goods are not cleared for home consumption and appellant has incurred huge detention-cum- demurrage charges, redemption fine and penalty is reduced: CESTAT

Oct 15, 2022

++ Cus - Since there is no dispute about illicit transaction of gold bars, no illegality found in action of Adjudicating authority for absolute confiscation of gold bars, therefore same is upheld: CESTAT

++ CX - Appellant have led sufficient evidence before Tribunal, which needs to be verified for ends of justice, accordingly, matter remanded to original Adjudicating Authority: CESTAT

++ ST - Demand made under a particular category cannot be sustained under a different category, Commissioner was not justified in confirming demand of service tax under category of CICS or CCS for period post 01.06.2007: CESTAT

Oct 14, 2022

++ Cus - Fraud vitiates everything - Since forged/fake DEPB licenses/Scrips are void ab initio, it cannot be said that Department acted illegally in invoking extended period of limitation: SC

++ ST - Officer has not had the benefit of the apex Court decision in Calcutta Club while deciding the case - In such circumstances, Court would be pre-empting the issue if it embarks upon the exercise of assessment: HC

++ ST - Just because of procedural error in invoices for input services with regard to address of appellant, substantive benefit of refund can not be denied to appellant: CESTAT

++ Cus - First Appellate Authority was correct in allowing appeal thereby ordering provisional release of goods in question, no need of any interefernce required: CESTAT

Oct 13, 2022

++ ST - PSUs can be excused for flaws in discharging tax liability & cannot be charged with deliberate evasion - however any special treatment given to PSUs is discriminatory & inconsistent with equal application of tax law: CESTAT

++ CX - Outdoor Catering Service - eligibility for Cenvat credit post 01.04.2011 is issue which is interpretational in nature - no penalty imposable on assessee: CESTAT

Oct 12, 2022

++ GST - S.171 would have to be liberally construed and constructed in a manner which is directed towards furthering consumer and public interest: HC

++ GST - Profiteering - Giving extra grammage of product to consumer instead of reducing prices is not what the statute prescribes: HC

++ GST - Provision of transportation services and canteen facility cannot be considered as supply of goods or services and hence cannot be subjected to GST: AAR

++ GST - Input tax paid on Solar Panels is inadmissible as electrical energy generated using such panels is exempted: AAR

++ Cus - DGCA has not found use of aircraft by appellant to be in violation of permit for non-scheduled (passenger) service and in fact has renewed permit year after year, therefore, duty cannot be demanded in terms of undertaking: CESTAT

++ ST - A judicial precedent cannot solely be relied on to cover up half-baked enquiry or raise demand: CESTAT

++ ST - Duty demand raised based on Income Tax returns, is unsustainable, where no independent inquiry is conducted: CESTAT

Oct 11, 2022

++ GST - Parathas are different from plain chapatti or roti; not classifiable under heading 1905 but under 2106; attracts tax @18%: AAAR

++ GST - Taifun Rope is not a part of 'fishing vessel'; not entitled for 5% tax rate: AAR

++ GST - Horizontal Triplex Plunger (HTP) - power sprayer [engine driven] attracts GST @18%: AAR

++ Cus - Appeal was dismissed for non-compliance with pre-deposit requirement - As appellant had appeared on the date fixed and made submissions, rule 20 of the Procedure Rules, 1982 is inapplicable: CESTAT

++ Cus - Appeal dismissed in July 2015 - No satisfactory explanation given for enormous delay in filing application (in May 2022) for restoration: CESTAT

++ CX - Cenvat credit on welding electrodes and welding machine is allowable as inputs under Rule 2(k) as without use of said items no fabrication or repair and maintenance of plant and machinery is possible: CESTAT

Oct 10, 2022

++ Cus - Restrictive regime relating to import of firearms does not comprehend a prohibition in respect of items which are being manufactured locally: HC

++ Cus - Authority has not caused any delay - Respondents directed to release consignments subject to petitioner complying with statutory formalities and depositing demurrage charges: HC

++ GST - Petitioner having to pay 10% of the Tax in dispute under s.107(6)(b) can certainly utilise the amount of ITC available in the Electronic Credit Ledger: HC

++ GST - Appeal Pre-deposit - Appellate Authority shall not insist upon the Firm to make deposit through electronic cash ledger: HC

++ GST - Cancellation of registration - missing the bus for restoration -  GSTN to make suitable changes in the architecture of GST web portal to allow  petitioners to file returns and pay tax/penalty/fine: HC

++ CX - Adjudicating authority is required to look into documents on record, to consider re-conciliation chart so as to calculate quantity of PU Form/ PU Foam SST as have been captively used and that amount thereof in final product cleared: CESTAT

Oct 08, 2022

++ GST - Refund u/s 54 - Notification 13/2022-CT - Exclusion of period from 1st March 2020 to 28 February 2022 for computation of period of limitation - Matter remanded: HC 

++ GST - Petitioner  would not be able to continue with their business in absence of GST registration; would be deprived of their livelihood; amounts to violation of right to life and liberty: HC

++ GST -  Since respondent has already recovered more than 10% of tax confirmed, petition is disposed of by reserving liberty to petitioner to file appeal: HC

Oct 07, 2022

++ GST -  Law doesn't require payment of tax to be made more than once in respect of self-same goods -  Respondent ought not to collect tax for second time - Refund ordered: HC

++ GST - Revenue authorities should act sensibly -  Causing unnecessary impediment to the free flow of goods and vehicles does cause an unnecessary hindrance to economy: HC

++ GST - Question whether any amount is owed to petitioner is a highly disputed question of fact - Court declines to exercise its extraordinary jurisdiction: HC

++ Cus - The direction as of First Appellate Authority as to remand is set aside and Adjudicating Authority is directed to provisionally release the goods in question: CESTAT

++ CX - Third party record and statement of Director of M/s PIL cannot be used against appellant both for non-joinder of parties and also failure on part of Revenue to examine Sh. Pankaj Agarwal as its witness in adjudication proceedings: CESTAT

Oct 06, 2022

++ GST - To fructify government's vision of Ease of doing business, officers need to be efficient and accountable: HC

++ GST - Orders passed without application of mind are adding to the already overburdened dockets - CBIC to conduct orientation courses for educating officers - Costs imposed: HC

++ CX - Appellant is entitled to refund for period, the machines remained un-operative for part of the month on pro rata basis: CESTAT

++ Cus - Facts admitted by parties or their agents are not required to be proved in any proceedings and for act of employees, direct responsibility is fixed on Customs broker: CESTAT

++ ST - Since contract is for job work carried out by appellant for service recipient, there is no activity of providing service of Manpower Recruitment or Supply Agency Service, hence demand does not sustain: CESTAT

Oct 04, 2022

++ GST - Merely because certified copy was subsequently filed physically, said circumstance cannot be made basis to come to conclusion that appeal was filed beyond prescribed period: HC

++ ST - SCN is clearly contrary to the undisputed facts - Petitioner having already paid the amount mentioned in SLVDRS-3, benefit of the scheme to be extended: HC

++ Cus - Delay in NOC by FSSAI - Demurrage charges - Transportation of imported articles from the custodian warehouse to a public warehouse is not prohibited under the provisions of 1962 Act: HC

++ Cus - Refund of TED - Issue no longer res integra - Respondent is directed to grant credit of the amount of duty paid in the electronic credit register: HC

++ GST - Not dropping google pin does not appear to be deliberate disobedience - Petitioner has given sufficient explanation - Order of lower court set aside: HC

++ VAT - Entry tax can be imposed on basis of stock transfer price instead of ELP: HC

++ CX - Restriction imposed under Rule 9(1)(b) has no application so far as to deny credit availed by appellant on basis of supplementary invoices issued by conversion agents in absence of sale of goods by them to appellant: CESTAT

++ CX - If consolidated cenvat credit balance has been maintained more than the cenvat credit reversed, in such case appellant is not liable to interest post 17.3.2012: CESTAT

++ ST - Any issue which is not flowing from SCN being beyond SCN, need not be addressed by authority, Adjudicating Authority has correctly passed order addressing the only issue which was raised in SCN: CESTAT

++ ST - Composite works contract are a separate species of contracts known to trade and cannot be charged to service tax under any other head: CESTAT

Oct 03, 2022

++ GST - Rule 89 - Refund of ITC - 14/2022-CT - Benefit that gets accrued by way of legislation cannot be denied/curtailed moreso when it is clarificatory in nature: HC

++ GST - Refund of ITC - Production of shipping bills - Transmission of energy could not have been visualized when Rule 89(2) was incorporated in the Statute book: HC

++ GST - Requiring petitioners to produce shipping bills, as proof of export cannot be made applicable to electricity as export can only be through transmission line, but not through rail, road or water for which documents can be made available: HC

++ ST - No service tax is payable on amount collected towards liquidated damages: CESTAT

++ CX - There is no reason to deny refund when assessee has availed drawback of only the customs duty portion and not of excise duty: CESTAT

++ CX - After 1.4.2011, appellant cannot avail credit on outdoor catering services, thus credit availed for period 1.4.2011 to 30.4.2011 which is part of SCN is not eligible for credit: CESTAT

++ Cus - First Appellate Authority was correct in allowing appeal thereby ordering provisional release of goods in question and since there is no change in facts, same is followed in case on hand as well: CESTAT

Oct 01, 2022

++ GST -  Since requirement of E-way bill was not applicable for petitioner during impugned period, seizure itself is bad in law: HC

++ GST - Generating fake and forged invoices - Such dubious transactions affects the country's economy - Evasive and non-cooperative attitude during enquiry - Applicant is not entitled for anticipatory bail: HC

++ GST - No liability is fixed or determined as per statutory provisions of the Act - Department has not pointed out that further custody is necessary - Bail granted: HC

++ CX - Reliance cannot be placed on Circular dt. 09.07.2010  to decide the issue against the appellant for the period prior to issuance of the said circular: CESTAT

++ ST - Two services sought to be amalgamated are not only independently taxable but differ in the mechanism of collection and should, intuitively, be immiscible: CESTAT