TODAY'S CASE (INDIRECT TAX)

Sep 21, 2023

++ CX - When there is enough reason to justify the delay of twenty three days ideally such delay should have been condoned and appeal heard on merits, matter remanded to decide on merits: CESTAT

++ CX - Proper verification of input services invoices has been carried out and found to be eligible input services, therefore, no infirmity found in impugned order dropping the demand: CESTAT

++ ST - Inasmuch as entire information was in knowledge of Revenue, SCN should have been issued within normal period of one year whereas same was issued after prescribed limit of one year, demand raised in SCN is clearly time-barred: CESTAT

Sep 20, 2023

++ ST - Revenue having appropriated duty liability as well as interest, had issued SCN, wherein proposal was made again to appropriate the amount already paid and also thereby proposing penalty, the penalty so levied is deleted since there was no loss to exchequer: CESTAT

++ ST - Nature of work executed by assessee is in relation to mining of coal and same merits classification in 'Mining Service' and no service tax has been demanded from appellant under Mining Service, demand confirmed under 'Site Formation Service' is set aside: CESTAT

++ Cus - Import of goods under Tariff Item No.63090000 is restricted and their import is allowed only against valid specific license, thus Adjudicating Authority has correctly imposed redemption fine and penalty @ 19.5% & 7.8% of assessed value: CESTAT

Sep 19, 2023

++ Cus - Matter remanded for verification of fact, if brass scrap imported by appellants was in nature of brass scrap containing impurities like iron, steel, rubber, plastic in view of Circular 1029/17/2016-CX : CESTAT

++ ST - As appellant has paid disputed amount of service tax immediately on pointing out by authorities, therefore, giving them benefit of section 80 of Finance Act, 1994, no penalty is imposable on appellant: CESTAT

++ CX - Department's argument that verification took long time due to procedures involved like testing by agencies, cannot be a reason to allege suppression of fact: CESTAT

++ CX - Though, Department holds that the two units are related, they fail to show mutuality of interest, demand of interest and penalty cannot sustain: CESTAT

Sep 18, 2023

++ GST - Sub-section (4) of Section 16 of the Act, 2017 is constitutionally valid: HC

++ Cus - DBK Rules, 1995 employ the words 'duty' and 'tax' without confining the same either to CA, 1962 or CEA, 1944 - As long as goods have suffered a 'tax' or 'duty', claim for drawback would be available: HC

++ VAT - Since efficacious alternative remedy is provided under Gujarat VAT Act, no writ would be maintenable: HC

++ CX - For the period of demand i.e. 19.10.2006 to 14.08.2007 SCN was issued much beyond the normal period of one year, demand is clearly time bar, hence, not sustainable on limitation itself: CESTAT

++ CX - As an employer, Appellant cannot ignore welfare of their employees, the employees who are not covered under ESI Scheme are well covered under insurance policy for any untoward eventuality, hence no irregularity found in availing Cenvat Credit of Service Tax on such policies: CESTAT

++ Cus - Considering the differences that exist between video game console, video game machine and imported product, it is held that imported 'Computer System Desktops' are classifiable under CTH 8471 as 'automatic data processing machines': CESTAT

++ ST - Revenue has not disputed receipt of these services by SEZ Unit, hence denial of refund claim in respect of these services for the reason that they did not find mention in list of specified services approved by SEZ authority cannot be upheld: CESTAT

Sep 16, 2023

++ Cus - Revocation of CB License - Question whether there was any loss of revenue as a consequence of actions is a material factor for consideration while determining punitive measure: HC

++ GST - Refund of IGST - Order passed in cavalier manner without considering settled law - Such orders have debilitating effect on the confidence of taxpayers in the department: HC

++ GST - S.67(2) does not allow seizure of cash - Currency seized is required to be released: HC

Sep 15, 2023

++ GST - Cancellation of registration - If petitioner is disabled from filing requisite form to record change of place of business, same cannot be considered as a ground for not restoring its GST registration: HC

++ GST - Petitioner is duty bound to cooperate in the proceedings for investigation - No case for quashing of summons: HC

++ GST - Refund of ITC rejected on ground that petitioner has not distinguished the inputs in respect of export of rice/sugar - Lower authorities have not considered material produced which directly co-relates to export of sugar - Order set aside: HC

++ CX - SVLDRS, 2019 - Amount paid towards duty and interest and which was proposed to be adjusted in SCN has to treated as amount pre-deposited - Such amount is to be deducted while issuing final settlement: HC

++ ST - When no objection was raised at the time of availing and utilising credit, objection regarding eligibility of credit cannot be raised at the time of filing of refund claim, to deny refund claim: CESTAT

++ ST - CENVAT - Input services used for providing 'Renting of immovable property' is admissible: CESTAT

++ Cus - When appellant continued the practice of either not appearing or of seeking adjournment on one pretext or other, further opportunity is held unwarranted: CESTAT

++ CX - Department cannot again demand duty from appellant for traded goods exported, as duty has already been paid by concerned manufacturers at the time of clearance of those goods: CESTAT

Sep 14, 2023

++ Cus - s.149 - Amendment of Shipping bill - Prescribing time limit - Even 2019 amendment cannot be construed to confer any retrospective validity to Circular 36/2010: HC

++ CX - As per settled precedent, Transportation charges are not includable in value of final manufactured goods: CESTAT

++ CX - Cenvat credit availed by Assesee cannot be denied on grounds that it has been entered as finished goods in their RG-1 & that it does not qualify as an input: CESTAT

++ Cus - Even though miniscule percentage of different chemicals including additive mixed with HDPE, the goods remain as high density polyethylene and therefore clearly covered under exempted entry in Notfn 12/2012-Cus: CESTAT

++ ST - Penalty u/s 77 & 78 of Finance Act 1994 is not imposable where Assessee suo motu deposited Service Tax before being prompted to do so by the Department: CESTAT

Sep 13, 2023

++ GST - Since the charge sheet is filed, trial may take its own course, applicant is ordered to be released on regular bail on executing a personal bond to satisfaction of trial Court and subject to conditions: HC

++ ST - Appellant having received consideration against providing guarantee to its related company in form of 'corporate guarantee' and 'credit protection guarantee' service is liable to pay service tax, therefore, demand raised is justified except for extended period: CESTAT

++ Cus - Watermelon seeds are restricted goods but they cannot be treated as prohibited goods and in absence of any permission/authorization for DGFT, provisional release can be done: HC

++ ST - It is on direction of Sun Singapore that appellant carried out marketing activities in India and it is for these services that they get consideration from Sun Singapore in convertible foreign exchange, same to be considered as an 'export of service': CESTAT

++ VAT - Once claim for refund stands embodied in return itself, there is no additional obligation placed upon assessee to file Form DVAT-21: HC

++ ST - Renting of Immovable Property Service - All inputs, input services & capital goods were used for construction of building which were then rented out & service tax was paid thereon - Cenvat credit allowed on such inputs: CESTAT

++ Cus - The change of name from 'safranal' to K-100 does not amount to be an act of misdeclaration as there is no evidence of evasion of customs duty while mentioning 'safranal' as D-100 on consignments as well as on storage tins/containers: CESTAT

++ CX - Cenvat credit is admissible on inputs viz. MS Plates, HR Plates and Beams used in fabrication of storage tanks installed in manufacturing premises of appellant: CESTAT

Sep 12, 2023

++ Misc - Dismissal of SLP by way of non-speaking order does not attract doctrine of merger: SC

++ ST - SGIPL has entered into separate contracts with telecom operators in India on its own account and not as a broker or agent for SingTel - SGIPL is not providing 'intermediary services' - ITC Refund rightly granted: HC

++ CX - Tobacco Packing Machine Rules - Challenge to Rule 8 fails when tested on the anvil of the Second Proviso to Section 3A(2)(b): HC

++ VAT - If contractor opts for Composition Scheme, it is not necessary to enquire and determine extent or value of goods which have been transferred in course of execution of works contract: HC

++ Cus - Certificate of origin - Value addition - Ascertainment through domestic agencies or purported admissions in statements recorded by investigation agencies cannot be a substitute: CESTAT

++ Cus - External Hard Disc Drives is classifiable under CTH 84717020 and is eligible for concessional rate of CVD as per Notfn 12/2012: CESTAT

++ ST - Original SCN was issued demanding service tax under category of clearing and forwarding agent service, Commissioner (A) dropped the demand under ocean freight but wrongly confirmed demand under steamer agent services which is not permissible in law : CESTAT

++ ST - The collection of toll by appellant would not be considered as Business Auxiliary Service provided to NHAI as they are not rendering any service which is incidental or auxiliary on behalf of NHAI and NHAI is not undertaking any business activity: CESTAT

Sep 11, 2023

++ GST - Parity of petitioner vis-a-vis co-accused - As co-accused was granted bail and the fact that investigation is complete and conclusion of trial is likely to take time, petitioner is also granted bail subject to furnishing of bail bonds: HC

++ GST - Since communication issued u/s 83 is being withdrawn, further adjudication of petition is not called for: HC

++ GST - Opportunity of hearing as contemplated u/s 98(2) cannot be an empty formality and the petitioner should have been informed that the application could be rejected: HC

++ ST - Delayed payment charges are not includible in taxable value as same are not the charges for providing taxable services - Review petition dismissed: HC

++ VAT - Where Assessee did not bifurcate accounts between two different streams of PVC supplied, the Revenue rightly disallowed ITC on the PVC pipes stock transferred outside the State: HC

++ ST - Penalty u/s 78 of Finance Act 1994 is imposable when there is wilful attempt to evade payment of tax - Penalty u/s 78 cannot be imposed for delay in filing claim for exemption, as the two are not equatable: CESTAT

++ Cus - Section XVII of Customs Tariff Act, under which Chapter 87 falls, specifically excludes 'articles of Heading 8483' - Hence classification of Universal Joint Cross Parts under CTH 8483 prevails over CTH 8708: CESTAT

++ CX - The 'Galvanized Silo Solution systems' is classifiable under Chapter heading 8437 10 00, impugned order confirming demand of duty along with interest and penalty is set aside: CESTAT

++ CX - The 'Galvanized Silo Solution systems' is classifiable under Chapter heading 8437 10 00, impugned order confirming demand of duty along with interest and penalty is set aside: CESTAT

++ Cus - Digital Multifunction Printing and Copying Machine (MFDs) are not liable for absolute confiscation, same are directed to be released on payment of redemption fine of 10% and penalty of 5% of enhanced value of imported goods: CESTAT

++ ST - Notfn No 31/2012 - As per settled precedent, procedural lapse admittedly on account of non availability of shipping bills, due to delay on the part of Customs, is no ground to deny substantial benefit under notification: CESTAT

++ ST -Penalty imposed u/s 77 of Finance Act 1994 sustained where Assessee does not take due care to file relevant data/documents despite undertaking to file the same: CESTAT

++ Cus - Classification of Universal Joint Cross Parts - CTH 8483 as declared by importer is correct heading for classification, as goods are more specifically covered under this Heading, than under CTH 8708 favored by the Department: CESTAT

Sep 09, 2023

++ GST - Serious allegations against CA - Duping complainant of large sums of money, forgery and GST evasion by creating false invoices issued by non-existent entities - Economic offence involving loss to public exchequer - No grounds for grant of anticipatory bail: HC

++ GST - Impugned order is not informed by reason; does not provide any clue as to why the petitioner's registration has been cancelled - Order set aside: HC

++ GST - Goods to be delivered at Kusmi but truck was going to Dhanwar - Allegation is that accused is trying to evade tax - It is not the case of prosecution that forged documents have been prepared - Anticipatory Bail granted: HC

++ Cus - Official serving at the point of time the case was booked is known to department rather than petitioner -  Denying of cross examination on ground that name of official is not mentioned is clear violation of principles of natural justice: HC

++ CX - CENVAT - Merely because the grey fabric manufacturers cannot be found at present, it cannot make the invoices fake or documents fraudulent in the eyes of law: HC

++ CX - Commissioner has decided classification without getting the products tested and without considering the test reports placed by  appellant - Order set aside and matter remanded: CESTAT

Sep 08, 2023

++ GST - Rummy - Game of skill or chance - Single Judge order in Gameskraft Technologies stayed: SC

++ Service - Aiding in smuggling and committing drawback frauds - Proceedings also initiated under PC Act - Sufficient reasons given by respondent for delay in issuing charge-sheet - Petition seeking reinstatement dismissed: HC

++ GST - Even though petitioner failed to appear for personal hearings, he has filed a reply and which ought to have been considered - Order set aside and matter remanded: HC

++ CX - If dutiable final product could not have been manufactured using a lesser quantity of inputs, then entire input must be attributed to having been used in manufacture: HC

++ VAT - Compliance of pre-deposit should be adhered to by assessee before filing statutory appeal u/s 51 of TNVAT Act: HC

++ GST - SCN issued u/s 73 of Finance Act & notices fixing personal hearing sent at erstwhile address of Assessee & hence remained unserved - Assessment order stands quashed - case remanded for re-hearing: HC

++ CX - Availment and utilisation of Cenvat credit from common pool of Excise duty as well as Service Tax is permissible: CESTAT

++ Cus - Appellant has not brought in any supportive evidence or any plausible explanation to consider the Condonation of huge delay of 4636 days, therefore, no merit found in application for COD: CESTAT

++ ST - There were some confusion regarding payability of service tax on re-insurance premium paid to foreign insurance companies, no intention to evade payment of service tax on part of appellant, penalty under Section 78 of Finance Act, 1994 cannot sustain: CESTAT

Sep 07, 2023

++ GST - Cryptic SCN and resultant order - If the observations in Audit report and intimation given are read as part and parcel of SCN, the petitioner can submit a reply - Proceedings set aside and matter remitted: HC

++ GST - Effluent Treated water [heading 2201] is eligible for exemption in terms of notification 02/2017-CTR: AAR

++ GST - Blunder committed while filing TRAN-1 - Credit that was validly availed is indefeasible - It is not part of the duty of Revenue to deprive an assessee of the benefit available to him: HC

++ GST - Applicant is eligible to take ITC on the vendor invoices received towards food served in the canteen: AAR

++ CX - With regard to extended period, department has not produced any material to show that there is suppression on the part of appellant with intend to evade payment of service tax, impugned order is set aside: CESTAT

++ Cus - When fabrics are coated and coating is visible to naked eye, same are classifiable only under Chapter 59 of Customs Tarriff Act, goods are correctly classifiable under Chapter Heading No.5903: CESTAT

Sep 06, 2023

++ GST - Tax authority should act as a facilitator of business and not merely as an extortionist, to satisfy his hierarchical superiors to push his personal agendas - Cost imposed: HC

++ Cus - Court will not re-examine facts or evidence - Scope of interference of writ court, whether in its original or appellate jurisdiction with factual findings in a decision is extremely limited: HC

++ Cus - Classification - Indian Chapter 21 being exclusive and peculiar has to be interpreted with all its peculiarities - Nutritional supplements rightly classifiable under 2106 and not under 1806: CESTAT

++ VAT - If other parties are deposing against their own interest that slips found in their possession belonged to them and not assessee, then Department should have considered such matter accordingly: HC

++ VAT - In absence of compliance with statutory mandate, authorities had no option but to confirm additions made for want of production of statutory Forms : HC

++ Sale Tax - Where order against assessee was passed ex parte and in a hurry, such case deserves to be remitted to pass reasoned order: HC

++ CX - The contracts entered into by appellant involve material as well as service component, the service rendered by appellant is taxable only from 01.06.2007: CESTAT

++ ST - The 'fly ash' is being evacuated and removed as per the contract and the same are not chargeable to service tax under category of 'Cleaning Service': CESTAT

++ Cus - The LCD Panels are to be classified under Chapter Heading 9013 8010 and parts of LCD panels are to be classified under Chapter Heading 9013 9010: CESTAT

++ CX - Appellants are not required to include cost of packing material supplied free by them in assessable value of tin containers manufactured and cleared by them, demands raised and confirmed thereof; penalties imposed are not sustainable: CESTAT

Sep 05, 2023

++ GST - Gold coins and white goods given to dealers on achieving targets is a 'supply' even if made without consideration and is subjected to tax; ITC not restricted u/s 17(5)(h): AAR

++ GST - 'Crackle' sold to ice cream manufacturers is an industrial input; cannot be classified as Sugar Boiled Confectionery (Heading 1704): AAR

++ GST - Product's primary function is 'care' and not 'cure' - JAC OLIVOL BODY OIL is not a medicament but a cosmetic; correctly classifiable under heading 3304: AAR

++ GST - Even though High Court can entertain petition against any order or direction passed or action taken by State under Article 226 of Constitution, it ought not to do so as a matter of course when aggrieved person could have availed of an effective alternative remedy in manner prescribed by law: HC

++ GST - It is directed that goods of petitioner as well as vehicle, shall be released, provided the petitioner comply with conditions, upon compliance of same, goods and conveyance of petitioner be released by authorities: HC

++ Cus - While approach of petitioner before this court itself was more than seven years after the order of appellate authority, they did not even approach First Appellate Authority within time permitted under Customs Act, court cannot ignore long delay in approaching this court: HC

++ GST - No hearing has been accorded to the petitioner, which is contrary to the mandate of law prescribed u/s 75(4) - Order set aside and matter remanded: HC

++ Cus - Import of gold is not prohibited, but restricted - Goods can be handed over on payment of 50% customs duty and on execution of 50% Bank guarantee in lieu of customs duty: HC

++ VAT - If manufacturer has failed to show as to how consumption of iron & steel is directly connected with its plant & machinery or its components as ‘capital goods', no exemption on entry tax is permitted: HC

++ Sales tax - Since law does not prohibit multiple assessments and such circumstances could include subsequent production of statutory C-forms, then assessee should not be exposed to travails of multiple proceedings: HC

++ CX - Where inputs were actually issued and thereafter destroyed in fire accident, there is no requirement of reversal of Cenvat credit: CESTAT

++ Cus - In view of admitted failure to comply with licensing requirements, imposition of redemption fine and penalty at the rate of 19.5% & 7.8% of assessed value by adjudicating authority is sufficient to meet the end of justice: CESTAT

++ ST - Since the contract has been undertaken for construction of accommodation for Urban employed Youth and Women Vendors on behalf of Govt. of India, same cannot be said to be for commercial purpose, therefore, classification under category of Commercial or Industrial Construction is not correct: CESTAT

Sep 04, 2023

++GST - Cancellation of registration, revocation of order - Benefit of amnesty scheme should also enure to persons whose registrations were cancelled after cut-off date of 31.12.2022: HC

++ VAT - Revision Order is passed purportedly in compliance of Court order dated June 2015 - Order is passed after a very long time without following principles of natural justice - Order set aside and matter remanded: HC

++ Cus - Reliance on trade advisory panel reports - Value adopted in impugned order has not been shown to lack impediments enumerated in rule 9(2) of Valuation Rules, 2007: CESTAT

++ Cus - CBLR, 2013 - Deliberate non-attendance in response to summons cannot be considered as an act involving moral turpitude - imposition of maximum penalty unjustified: CESTAT

++ CX - Assessee has during hearing submitted a compilation including several agreements as well as invoices of various companies, matter needs to be reconsidered by original authority: CESTAT

++ ST - The control of manpower is with appellant and not with service recipient, it is clear that appellant have not provided services of 'Manpower Supply or Recruitment Agency Services', demand made under said category is not sustainable: CESTAT

++ Cus - EDI System indicates that both Flexible Intermediate Bulk Containers un-coated, as well as without mention of coating were imported during relevant time, differential treatment may be required to be considered, if goods are different:CESTAT

Sep 02, 2023

++ ST - Chicks (poultry) being ‘animals' are specifically carved out of the ambit of Service tax in relation to technical testing and laboratory and analysis services: HC

++ Cus - As per directions of Tribunal in its earlier order, no reliance could have been placed on statements of Shri Shantilal Jain and Shri Naresh Shah & Shri Mahesh Ganatra, matter remanded to Adjudicating Authority to follow the directions of Tribunal order: CESTAT

++ CX - The waste heat generated during course of manufacture of final product which in turn used in manufacture of electricity cannot be subjected to Rule 6(2) of CCR, 2004: CESTAT

++ ST - The incentives received by appellant from manufacturer for sale of cars cannot be subject to levy of service tax under category of Business Auxiliary Services: CESTAT

++ ST - Appellant have rendered job assigned by Punjab Tractors Ltd and did not at all supply any manpower, same does not fall under category of 'Manpower recruitment or supply agency service', therefore, demand confirmed therein is set aside: CESTAT

Sep 01, 2023

++ GST - ITC Refund - Only one supplier was found to be non-existent at the registered place of business - No irregularity detected in respect of other suppliers - Refund thereof to be granted along with interest: HC

++ GST- Order appears to be auto-generated- On one hand, it says that no reply had been received but later on it states that the petitioner's reply has been examined- Order set aside and matter remanded: HC

++ GST - It is trite law that a show cause notice must clearly indicate the reasons for proposing the adverse action in order to enable the noticee to respond to the same: HC

++ GST - s.54 - Period of limitation would stop running notwithstanding that the proper officer required further documents or material to satisfy himself that refund claimed was due: HC

++ GST - s.6(2)(b) - Principal place of business is the same as that of some other connected entities, which have been investigated by DGGI - If any of the authorities has found it necessary to investigate petitioner based on certain information, said investigation cannot be stopped: HC

++ GST - s.169(1)(a) - Order communicated on an Advocate will be deemed service upon petitioner - No cause for condoning delay in filing appeal on ground that he did not communicate said order to petitioner: HC

++ GST - s.66 -  Order for Special Audit prima facie  does not reflect about consideration of the two aspects viz. nature and complexity of the case and interest of revenue - No coercive action: HC