TODAY'S CASE (INDIRECT TAX)

February 28, 2025

++ GST - SCN placed under tab 'Additional Notices & Orders' without any specific note or instructions - Complex architecture of portal now set right - Order set aside and matter remanded: HC

++ Cus - Seizing Officer has not complied with the mandate of 110(1) - No 'reason to believe' mentioned in seizure memo, hence quashed: HC

++ Cus - Modification of conditions imposed in LoP - Petitioner wishes to approach Board of Approvals seeking amendment - Permission sought to withdraw Petition allowed: HC

++ ST - SVLDRS, 2019 - 'Bogus' SCN purportedly issued and on basis of which application filed - Designated Committee is correct in rejecting application as being filed on basis of ingenuine documents: HC

++ CT - Amnesty Scheme 2022 - Settlement Officer travelled beyond the contours of the Scheme - Respondent to refund Rs.45.60 lakhs with interest: HC

++ ST - When the extended period is held to be not invocable, demand for normal period cannot be sustained: CESTAT

++ CX - No interest is payable when there is no actual tax liability & where excess credit is not utilized for duty payment: CESTAT

++ CX - Extended limitation need not be invoked where excess Cenvat credit is inadvertently availed, with no intention of wilful suppression or fraudulent intention therefor: CESTAT

++ CX - The sales tax retained under Haryana Government's tax deferment scheme could not be included in assessable value for central excise duty: CESTAT

++ ST - In absence of any particular format prescribed under respective notifications, department insisting for declaration on each consignment note for allowing abatement under said Notifications is unsustainable in law: CESTAT

++CX - The company met all conditions of exemption notfn 10/97-CE , including requirement that goods be supplied to research institutions and certified as essential for research purposes, department's denial found to be arbitrary and unsupported by evidence: CESTAT

February 27, 2025

++ GST - No arrest be made until Commissioner can show, based on evidence, that conditions for non-bailable offences u/s 132 of GST Acts have been met: SC

++ GST - Anticipatory bail can be granted even before an FIR is filed, provided there is a reasonable basis for the apprehension of arrest: SC

++ GST - Person summoned u/s 70 of the GST Acts not automatically protected under Article 20(3) of Constitution, as Article 20(3) does not apply at interrogation stage: SC

++ GST - Application for compounding can be made until an assessment order is passed under Section 74 of the GST Acts: SC

++ GST - Power to arrest & summon is integral to enforcing GST laws & these powers are not beyond the scope of legislative competence; Constitutional validity of Sections 69 & 70 of GST Acts is upheld: SC

++ GST - legislative entries should be interpreted broadly, allowing for inclusion of ancillary measures that are necessary to effective functioning of core legislative power: SC

++ GST - Judicial review in cases involving special Acts like PMLA, Customs Act, FERA must be exercised cautiously & only in rare instances to balance individual liberty with public interest: SC

++ GST - As crimes become more complex with technological advancement, minor procedural lapses should not be overly scrutinized, as this could unfairly benefit those accused of serious crimes: SC

++ GST - Apex Court to decide whether time limit for adjudicating show cause notice can be extended by issuance of notifications u/s 168-A of GST Act: SC

++ Cus - Test reports are inconclusive - Chemical composition of exported product is different than chromite - AA has correctly held that goods exported is 'Indian Refractory Mortar' - No export duty leviable: CESTAT

++ CX - CENVAT - Obligation u/r 3(1) of CCR, 2004 cannot be transferred to the recipient of credit u/r 7 of CCR, 2004: CESTAT

++ ST - Cost of personnel is reimbursed to appellant by JV partner on actual basis - There is no service provider and service receiver relationship existing in the transaction: CESTAT

++ CX - MPEB is entitled to refund with 12% interest, as excise duty was wrongly collected on non-manufactured goods and procedural technicalities cannot justify its denial: CESTAT

++ Cus - Penalty u/s 112 imposed on Appellant, who was not established as being owner or importer of the relevant goods imported during a past period; responsibility vests with person in charge of conveyance of goods, which the Appellant is not - Penalty u/s 112 is invalid: CESTAT

++ Cus - Drawback - Eligibility for drawback on goods imported & re-exported - O-i-O lack clarity regarding specific shipping bills; drawback ought not be denied for shipping bills without evidence of mis-declaration or non-receipt of remittance - case remanded for re-examination of claims: CESTAT

++ ST - Pre-deposits made during appeals are refundable with interest when the appellant succeeds: CESTAT

++ ST - Input services used in relation to setting up, modernization & renovation of factory, is eligible for credit: CESTAT

February 26, 2025

++ GST - ITC - s.16 - Burden is on recipients to show that goods were indeed received - None of the petitioners are in possession of any e-Way Bill - Credit has to be paid back: HC

++ GST - Adjudication u/s 130 is over - Therefore, prayers for provisional release of goods have become infructuous - Appellant should avail alternate remedy: HC

++ GST - 35 days delay, while significant, could be condoned in the interests of justice - Matter remanded: HC

++ ST - Cine equipment - Since possession and effective control of the goods has been transferred to the hirer, it will amount to transfer of right to use goods and service tax is not chargeable: HC

++ ST - Sole demand surviving against the appellant by virtue of SCN and OIO has been effaced by the s.11C notification, therefore, order of Tribunal is set aside: HC

++ VAT - Suppressed turnover - Power u/s 25AA is not sole prerogative of the AO; depriving VAT Tribunal of these powers contradicts the scheme of the Act: HC

++ CX - CENVAT credit is not admissible for items procured for export purposes; credit rightly denied: CESTAT

++ CX - Allegations of suppression of manufactured items, cannot be sustained based solely on reports of excess power consumption & without considering other corroborative evidence: CESTAT

++ CX - Since the inputs remained within mine premises and are used for assessee's production, there is no removal or sale warranting credit reversal: CESTAT

++ ST - Case remanded for reconsideration allowing the appellant to prove that its contracts are composite and that educational institution projects are exempt from service tax: CESTAT

++ ST - Assessee's activities involve rural electrification, a service related to transmission of electricity; hence are not liable to pay service tax under GTA services, as services w.r.t. transmission & distribution of power are exempt as per Notfn No 25/2012-ST: CESTAT

++ ST - Services provided by Indian telecom company to Foreign Telecom Operators qualifies as export of service; will not attract Service Tax levy in India: CESTAT

++ ST - Activities of sale/purchase of cargo space & receipt of airline incentives, are not taxable under BAS, as no third party is involved in these transactions & where assessee is acting as principal: CESTAT

++ Cus - If manufacturers fails to demonstrate that IR is quasi-judicial decision and they are arraigned party having a 'legal grievance', inasmuch as IR has wrongly deprived them of something, they can't be stated as 'person aggrieved' by IR: CESTAT

++ Cus - IR is administrative and fact finding in nature, as it does not purport to decide lis or contest between contending parties by statutory authority: CESTAT

++ Cus - Investigation report is not binding on Original Authority while deciding lis, and hence same is not appealable: CESTAT

February 25, 2025

++ GST - ITC availed on fake invoices - Petitioner is challenging constitutional validity of s.16(2)(c) to avoid participation in enquiry - Petition dismissed: HC

++ Cus - Enormous delay in adjudication - SCN/OIO quashed qua the main company (importer), therefore, the order in respect of co-noticee also to meet similar fate: HC

++ Cus - When no SCN is issued, to ask the importer to furnish a BG even to secure the anticipated redemption fine and anticipated penalties, would be rather harsh: HC

++ Cus - If IEC code issued by DGFT is wrongly issued to non-existent businesses and entities, the CHA cannot be blamed for trusting the IEC: CESTAT

++ Cus - Customs authorities, if had been of the opinion that appellant had violated terms and conditions of licences, the matter should have been referred to the licensing authority for appropriate action rather than demanding duty: CESTAT

++ VAT - If period for re-opening assessments u/s 25 of KVAT Act had expired, AO could not invoke Sec 42(3) of KVAT Act to re-open assessments that had already become final under KVAT Act: HC

++ ST - Mere non disclosure of receipts in service tax return is not sufficient to infer intent to evade payment of service tax: CESTAT

++ ST - Dept. can't allege suppression of facts on service tax which was demanded based on profit & loss account and balance sheet, being public documents which can be ascertained by Dept.: CESTAT

++ CX - CENVAT credit of CVD paid on fuel and oils is admissible, because fuel & oils are necessary for ship-breaking process & removing them is part of initiating that activity: CESTAT

++ CX - CENVAT credit is not to be denied merely because goods inside a ship are considered by-products or are removed before ship-breaking begins: CESTAT

++ CX - Deemed export - Denial of exemption as per Notfn No. 31/2007 is not tenable, solely because assessee fails to obtain CT1 certificates for goods cleared to DTA, but where Form-H is also provided to demonstrate that goods are indeed for export: CESTAT

++ CX - As investigation commences after surrender of Central Excise registration certificate, the non-availability of machinery at time of investigation, is invalid ground to deny Cenvat credit: CESTAT

February 24, 2025

++ Cus - Repeated placing and removing from the call book is not a valid justification for non-adjudication of the impugned SCN for 15 years - SCN and OIO quashed: HC

++ Cus - Delay in payment of compounding amount is only due to financial difficulties - Considering the value of gold seized, petitioner granted additional time of one month: HC

++ VAT - Transfer of 'right to use Set Top Boxes' to subscribers for consideration, amounts to 'sale': HC

++ Entry Tax - Petitioner sold vehicles to Military CSD and which sale is exempted, therefore, tax cannot be adjusted; hence petitioner is entitled for refund of entry tax: HC

++ CX - SCN is invalidated where issued after 3-year delay & where extended limitation is invoked without alleging fraud or suppression of facts: CESTAT

++ Cus - Procedural lapses by revenue authorities can invalidate otherwise valid claims: CESTAT

++ CX - Mere suppression of facts is not enough to invoke extended period of limitation contemplated under proviso to Sec 73(1) of Finance Act, rather it has to be coupled with intent to evade payment of service tax: CESTAT

++ ST - Cenvat credit cannot be denied where relevant challan numbers are mis-printed in Departmental records: CESTAT

++ ST - Department erroneously relied on provisions like section 65A & 66F of Finance Act, 1994, without examining factual details; case remanded for re-consideration: CESTAT

++ ST - As is trite law, mobile towers are treatable as capital goods, being essential for providing telecom services; items used in erecting towers also eligible inputs u/r 2(k) of CCR, 2004: CESTAT

February 22, 2025

++ Cus - Revocation of Customs Broker's license is invalid where importer's actions do not implicate the broker in any wrong-doing; KYC documents valid too, no fraudulent activity indicated: CESTAT

++ CX - Bagasse is waste/by-product of sugar manufacturing process & not manufactured final product - ergo, there is no obligation to reverse Cenvat credit u/r 6 of CCR 2004 as Bagasse not subject to same rules covering exempted goods: CESTAT

++ CX - Valuation - Rule 9 r/w Rule 8 explicitly applies only when goods are sold exclusively to related persons; are inapplicable where assessee sells goods to both independent buyers & related persons: CESTAT

++ ST - Statutory limitation u/s 11B of the Central Excise Act is not applicable to refund claims, where Service Tax had been paid erroneously: CESTAT

++ ST - Hiring transport vehicles on a kilometer basis without issuing consignment notes does not attract service tax under reverse charge: CESTAT

February 21, 2025

++ GST - Cancellation of registration - Spot visit is not challenged - Inference drawn by proper officer appears to be plausible one: HC

++ GST - Doctrine of Eminent Domain - Order of provisional attachment u/s 83 cannot continue beyond a period of one year and on the same set of facts, a fresh order cannot be issued thereafter: HC

++ CX - Appeal against the miscellaneous order passed by CESTAT in the ROM application is not maintainable u/s 35G of the CEA, 1944: HC

++ Cus - Oral waiver of SCN and personal hearing in a standard form would not be in accordance with law - Detention set aside due to non-issuance of SCN - Rolex wrist watch to be released within two weeks: HC

++ Cus - Revenue cannot take divergent stands in respect of the same assessee merely because the import happened to be through another Port: HC

++ ST - First appellate authority misinterpreted the export of services provisions, matter remanded for fresh adjudication based on proper application of Place of Provision of Services Rules, 2012: CESTAT

++ ST - Service tax demand against Shipping Corporation of India Ltd is set aside finding the adjudicating authority's order non-speaking and remanding the matter for fresh adjudication: CESTAT

++ Cus - Claiming an incorrect classification does not amount to mis-declaration - Since description correctly mentioned, question of suppression does not arise - Demand confirmed for normal period: CESTAT

++ Cus - goods which were imported as per the licences issued by DGFT but which were thereafter suspected to be used in violation of the conditions of the licences, will not be liable for confiscation under section 111(d): CESTAT

++ Cus - Benefit of Exemption Notification No. 146/94-Cus dated July 13, 1994 can't be denied on arms & ammunition imported by National Sports Federation, simply because it was sold to District Clubs after adding mark up over cost of import plus duty: CESTAT

++ CX - Classification of Add-on Cards under Chapter Heading 8473 is correct, as these are parts & accessories suitable for use with data processing machines, classifiable under Heading 8473: CESTAT

++ ST - Remittance services provided by foreign banks to assessee's Indian bank will not attract Service Tax levy, as these services were rendered to Indian banks & not directly to assessee: CESTAT

++ ST - Service tax demand reduced from Rs72.61 lakh to Rs17.82 lakh, holding that department's claim of rent suppression lacked concrete evidence and penalties are also set aside due to timely tax payment: CESTAT

++ ST - Assessee liable to pay Service Tax on license fees received between 1st July 2012 & 28th March 2013, following introduction of Negative List regime: CESTAT

++ ST - Interest is automatically applicable for delayed payment of duty & penalties u/s 76 are statutory for failure to pay Service Tax: CESTAT

February 20, 2025

++ GST - Supply of holographic stickers (excise labels) is supply of 'goods' simpliciter and not a supply of 'service': HC

++ GST - There is no contract with respondents for invoking promissory estoppel against petitioner - If tax has been paid on Reverse Charge Basis by mistake, it is entitled to claim refund: HC

++ Cus - Deferring closure of investigation coupled with coercive measures not only upsets businesses but also imposes unwarranted hardship - Dept to issue SCN within 3 months: HC

++ CX - Delay of 165 days in filing an appeal by Commissioner of Central GST & Excise condoned holding that delay was due to counsel's fault and allowing the case to proceed: HC

++ Kerala General Sales Tax - where Department fails to inform assessee about extension of limitation period, then assessment order is legally invalid: HC

++ ST - Goods in process of being loaded into railway wagons at a mine, but not yet in transit, cannot be classified as cargo: CESTAT

++ ST - cargo handling services are distinct from mere handling of goods; handling of goods not yet in transit does not fall under the former category: CESTAT

++ CX - Excise duty liability pertaining to goods manufactured by job workers cannot be foisted upon the principal-company: CESTAT

++ CX - That a company is registered with the Railways does not entail that it manufactures goods therefor, more so where no evidence exists to show involvement in manufacture activity: CESTAT

++ Cus - SION norms are valid for calculating duty drawback, provided applications are substantiated with proper documentation: CESTAT

++ Cus - As per settled law, Customs authorities cannot question DGFT's discharge certificate without a prior determination from DGFT: CESTAT

++ Cus - As Customs lacked jurisdiction to challenge DGFT's discharge certificate, then SCN, confiscation of goods & penalties are not tenable: CESTAT

February 19, 2025

++ VAT - Since ITC is 'right accrued at time of purchase', it can't be reduced retroactively without clear statutory authorization: SC

++ Cus - Petitioner succeeds in appeal and deposits redemption fine and penalty - However, detained gold disposed of without intimation - Conduct of Customs authority is unreasonable, arbitrary and untenable: HC

++ Cus - Anti-dumping Duty - Central govt., by OM not accepting continuation of ADD - Whether CESTAT has jurisdiction to set aside an Office Memorandum or not - Legal issues kept open for adjudication in appropriate case: HC

++ ST - SCN was quashed by HC only insofar as issue of 'value of free materials' - Other components of SCN were to be adjudicated accordingly - Both, adjudicating authority and CESTAT were incorrect in holding that the SCN was quashed in its entirety: HC

++ CX - Limitation - Pedantic approach by Commr (A) - Procedural error - Cross objections filed by assessee are required to be disposed of as an appeal - Matter remanded: CESTAT

++ ST - Iris Automation Pvt. Ltd. is not liable to pay service tax on services received from a proprietorship owned by its director, as the case is revenue-neutral and any tax paid would have been eligible for CENVAT credit: CESTAT

++ CX - Since alleged misclassification and duty demand lacked substantial evidence and fell below the monetary limit for appeal, appellant is eligible for exemptions: CESTAT

++ ST - Demand raised under Consulting Engineer service, is invalid, where dominant intention of the contract is for operational services, including providing drilling rigs and personnel for exploration activities, rather than consultancy: CESTAT

++ CX - Departments must handle refund claims as per statutory provisions and cannot arbitrarily return applications: CESTAT

++ Cus - Penalties must be supported by clear evidence and cannot be based solely on assumptions of knowledge or involvement due to relationships: CESTAT

February 18, 2025

++ Cus- If in earlier round, issue of delay between bill of entry and application for refund has already reached finality, that period can't be calculated for deciding that appeals filed before CESTAT are delayed: HC

++ GST - Refund of unutilized ITC as per amended formula under Rule 89(5), is to be applied prospectively; refund applications filed before Rule 89's amendment be dealt with as per old formula: HC

++ GST - Cancellation of registration - Entire proceedings initiated by the respondent are flawed - This shows complete non application of mind - SCN and order is set aside: HC

++ GST - Condonation of delay - S.107 is a complete code in itself - Limitation Act would not apply: HC

++ GST - Construction of civil structures - Rate enhanced - Petitioner cannot be relegated to the Dispute Resolution Forum - Govt. entity to pay differential tax to petitioner within three months else pay interest @6%: HC

++ PDS Scam - Nagarik Apurti Nigam (NAN) - Applicant has deep-rooted connections in the government department, which can hamper the course of the investigation if he is granted anticipatory bail - Application dismissed: HC

++ AP VAT - assessment order directing attachment of bank account & immovable property merits being quashed where no evidence exists to show willful suppression of facts: HC

++ CX - Central Excise Valuation Rules require that price be sole consideration for sale - AO incorrectly assumed that credit notes constituted additional consideration, where they actually represent promotional contributions: CESTAT

++ ST - The presence of air conditioning mandatory for bar license made it liable for taxation despite its claims of removal: CESTAT

++ ST - Activities involving job work & manufacturing processes for clients, are covered by definition of manufacture u/s 2(f) of CEA 1944; such activities not taxable under Business Auxiliary Services: CESTAT

++ Cus - Importers should not be penalised for system-related delays in filing Bills of Entry; refund of excess duty paid by importer due to system delays, is rightly allowed: CESTAT

++ Cus - Misclassification alone without proper procedural adherence does not justify penalties or denial of duty concessions: CESTAT

++ Cus - The imported e-rickshaw components reclassifiied as complete vehicles under CTH 8703 9000 , imposing a higher duty and penalty, as goods possessed the essential character of an assembled e-rickshaw under classification rules: CESTAT

February 17, 2025

++ GST - Registration cannot be refused on a ground which is not available under Statute/Rules - Persons from outside State can come into State of AP and seek registration: HC

++ GST - Article 19 - Application for registration rejected on ground that applicant and authorised representative do not belong to the state of AP; that there is scope for tax evasion - Mere apprehension, however well founded, cannot deprive petitioner of his right to carry on trade and business in state of AP: HC

++ Cus - Merely unlocking/ activating new mobile phone by disabling 'regional lock' put by original equipment manufacturers to restrict usage to specific geographical location, does not make mobile a 'used' good: HC

++ Cus - Exporters of mobile phones whose reigional lock to 'restrict usage to specific geographical location' has been unlocked, will also be eligible to claim duty drawbacks: HC

++ Cus - Form titled 'Green channel violation (request for release of detained goods)' shocks the conscience of the Court - CBIC should review it: HC

++ Cus - Natural justice is not merely lip-service - Printed waivers would fundamentally violate rights of persons who are affected: HC

++ Cus - Department allows provisional release of seized goods subject to furnishing BG of 130% of differential duty - Onerous condition - Just and fair to direct BG of 30%: HC

++ Cus - Grounds which have been raised in the present writ petition can always be raised before the Appellate Authority - Petition dismissed: HC

++ Cus - Since appeal has been filed against OIO, bank accounts are to be de-freezed by department: HC

++ Cus - Anti-Dumping Duty - A few minutes' delay in the exporters' questionnaire response cannot oust them from being heard and participating fully in the proceedings: HC

++ GST - Time permit set out u/s 73(2) is mandatory and any violation of that time period cannot be condoned as it would render the show cause notice otiose: HC

++ GST - s.73 - When a period, available for a certain action, is defined in terms of months, it would mean that the corresponding date of corresponding month would be cut-off date: HC

++ GST - Regulatory measures are necessary to ensure compliance and prevent tax evasion and do not constitute a violation of fundamental rights: HC

++ GST - Roving enquiry - Whether goods found in vehicle different from that covered by invoices - HSN classification is identical - No reason to detain the goods/vehicle and impose penalty: HC

++ GST - Beyond condonable period - Delay in filing appeal - Petitioner does not stand to gain by filing belated appeal - No lack of bonafide as pre-deposit made - Delay condoned: HC

++ GST - When the Single Judge refuses to entertain the writ petition on the ground of availability of alternate remedy, Division Bench will not ordinarily interfere with such findings: HC

++ GST - Bench fails to understand how writ petition could be maintained, especially since challenge to s.174(2) stood already repelled by judgment dated 30.11.2022: HC

++ GST - Cryptic SCN - Material for levelling allegation of passing inadmissible ITC without supply of goods/services not furnished - Order set aside and matter remanded: HC

++ GST - Seizure of cash or any other valuables is outside ambit of Sec 2(52) of CGST Act and hence authorities can't exercise such powers u/s 67 of CGST Act: HC

February 15, 2025

++ GST - Rule 86A -  Blocking of credit serves purpose of being security for revenue on recovery: HC

++ GST - Rule 86A - There is no power conferred upon the authorities for blocking the credit to be availed by the petitioner, in future: HC

++ Kerala VAT - VAT Tribunal's remand order warrants interference with, where it omits to observe that AO lacked material to question Gross Profit declared by assessee: HC

++ Kerala VAT - Re-assessment notice wrongly quashed where Single Judge erroneously assumes that said notice was issued after lapse of original limitation period: HC

++ Kerala General Sales Tax - Mere issuance of SCN u/s 17(3) will not invalidate assessment order, where assessee opts for compounding & is liable to pay highest amount as per Section 7 of Act: HC

February 14, 2025

++ CST - Though State Government's right to grant exemption from tax has ceased to exist after amendment of Sec 8(5) of Central Sales Tax Act, said amendment would be prospective: SC

++ Cus - SCN is covered by res judicata, and is unreasonable and arbitrarily attempts to re-open an issue already closed - SCN is quashed: HC

++ GST - Absence of reasons in the SCN in support of a proposed retrospective cancellation of registration as well as a failure to place petitioner on prior notice of such an intent clearly invalidates the impugned action: HC

++ GST - Order passed on the premise that petitioner only filed reply but did not provide supporting materials/invoices - Matter remanded for re-adjudication subject to petitioner paying 25% of disputed taxes: HC

++ GST - Initial seizure of cash from the premises of appellant being illegal, the continued retention of it by GST Department, and the handing over of same to Income Tax Department, cannot be seen as legal acts: HC

++ GST - An order which does not contain a DIN would be non est and invalid - Liberty to department to conduct fresh assessment and assign a DIN: HC

++ Misc - Installing CCTV cameras inside residential portion of dwelling house without consent of co-occupants or co-trustees, amounts to violation of their right to privacy: HC

++ CX - 'Zero Air' was misclassified and subject to 16% excise duty under Chapter 2804, justifying the extended limitation period and penalties: CESTAT

++ Cus - The goods, originating from South Korea and falling under CTH 7610 9090 , qualify for exemption under Notfn 152/2009 (S.No. 610): CESTAT

++ Cus - Once there is no such restriction either in Notification or under the Act, procedural restriction imposed cannot be construed as mandatory and more than one refund claim can be filed in a month : CESTAT

++ ST - Demand raised under heading of Construction of Complex Service, will not sustain where it pertains to a period prior to 01.07.2010: CESTAT

++ ST - Markup on ocean freight not part of C&F services or GTA services - assessee not acting as a pure agent for ocean freight charges - markup on ocean freight not subject to Service Tax: CESTAT

February 13, 2025

++ ST - Relationship between Sikkim Govt & lottery ticket sellers, being one of principal-to-principal, were unaffected by amendments in Finance Act 1994 - Service Tax not to be levied on sale and purchase of lottery tickets: SC

++ ST - As is trite law, conducting lotteries is a State activity & not a service, as assessees purchased tickets for resale at their own risk & for profit, not as agents of the State: SC

++ GST - SCN and the order of cancellation of registration do not contain any reason - Both quashed and set aside - Matter remanded: HC

++ GST - Scope of 'supply of services' would not include transfer of leasehold rights - It would be transfer of 'immovable property': HC

++ GST - By not considering the reply filed and observing in the impugned order that no reply to the SCN was submitted is a breach of principles of natural justice: HC

++ CX - The provisions of section 11B, which relate to refunds, are inapplicable to cases where excess duty is adjusted against future liabilities under the compounded levy scheme: CESTAT

++ Cus - Allegation of violation of principles of natural justice not tenable, where importer given ample opportunity to & unable to furnish evidence to counter classification favored by Department: CESTAT

++ CX - Case remanded for fresh adjudication citing lack of proper representation, failure to consider precedents and the need for re-examination of documents related to Cenvat credit eligibility: CESTAT

++ CX - Rule 8(3A) of Central Excise Rules, 2002, which prevents utilization of Cenvat credit during default in tax payment, is already declared ultra vires ; cannot be cited to deny cenvat credit: CESTAT

++ ST - Services provided to government-run educational institutions and hospitals are exempt from service tax: CESTAT

++ CST - Appeal is not maintainable under Central Sales Tax Act since the order in question was passed under Delhi Sales Tax on Works Contract Act and the proper remedy should have been sought before Delhi High Court: CESTAT

February 12, 2025

++ GST - ITC fraud - In order to ensure that the business does not come to a grinding halt, the SBI bank account can be unfrozen and the petitioner can be allowed to utilise the amount of Rs.70 lakhs only for its day to day management: HC

++ GST - No part adjudication of the lis - Art. 226 of the Constitution is not meant to be used to break the resistance of the Revenue: HC

++ GST - Issuing a consolidated SCN covering various financial/assessment years would cause prejudice to an assessee: HC

++ GST - Petitioner cannot be rendered remediless - Appeal was preferred out of time against an order passed in the period of pandemic - Bench must exercise its extraordinary power to intervene - Order set aside and matter remanded: HC

++ GST - Bench extends time period for passing the order on the SCN by a further period of eight weeks: HC

++ ST - Real estate developers who engage independent contractors for construction services cannot be held liable for service tax under 'Construction of Residential Complex Service' category: CESTAT

++ ST - Non compliance with Show Cause Notice per se without any fraudulent intent, cannot justify invoking extended limitation period: CESTAT

February 11, 2025

++ GST - Supply of DEO and Junior Engineer made to the Public Health Engineering Dept., WB govt. for executing Jal Jeevan Mission is exempted under 12/2017-CTR: AAR

++ GST - ITC for construction of mall - Order has not taken into consideration the impact of the principles of law laid down in Safari Retreat's case - Order set aside and matter remanded: HC

++ Cus - Rule 54(2) of the SEZ Rules only stipulates for achieving positive NFE - Token penalty imposable for not achieving positive NFE in 2008-09: HC

++ CX - Petitioner assails assessment order on grounds of not granting opportunity to cross-examine witnesses; petition not maintainable as petitioner has alternate remedy of statutory appeal available: HC

++ ST - Appellate officer is below the rank of the officer who had issued the SCN, and which is impermissible both under the administrative law as well as under FA, 1994: HC

++ ST - SVLDRS - Issuance of Form SVLDRS-3 by Designated Committee, in mechanical manner & without considering petitioner's replies, contravenes provisions of SVLDRS; is unsustainable: HC

++ CX - Extended period of limitation cannot be invoked without clear evidence of suppression or intent to evade duty: CESTAT

++ CX - Section 142(3) of CGST Act clearly provides for cash refunds of any amount accruing; refund cannot be disbursed by means of CENVAT credit - Denial of refund based on absence of a specific rule in CCR 2004 is legally incorrect: CESTAT

++ CX - Penalty need not be imposed where assessee reversed incorrectly availed Cenvat credit during investigation & before issuance of Show Cause Notice: CESTAT

++ ST - The company acted as an intermediary for Koch Membrane Inc., USA and its services are taxable in India under the Place of Provision of Services Rules, 2012: CESTAT

February 10, 2025

++ Cus - Tata Motors is not required to pay Social Welfare Surcharge (SWS) when Basic Customs Duty (BCD) amount is nil: CESTAT

++ CST - Transfer of liquor from Rajasthan to Bihar is an inter-state stock transfer and not a taxable inter-state sale, leading to cancellation of Central Sales Tax (CST) demand and a refund order: CESTAT

++ GST - Rejection of petitioner's transitional credit claim based on insufficient verification & a lack of opportunity for petitioner to clarify discrepancies in documents, is not tenable: HC

++ CX - The processes like cutting and drying of dates, which do not create a new product, do not amount to manufacture: CESTAT

++ CX - Reversal of Cenvat credit under Rule 3(5B) of CCR 2004, is unwarranted where assessee has only written down value of slow-moving inventory &has not written it off or removed it from asset accounts: CESTAT

++ Cus - Delivery agent is responsible only for transporting sealed container; had no knowledge or involvment in smuggling operation - penalty on delivery agent quashed: CESTAT

February 08, 2025

++ ST - Penalties & late fees unjustified, when there is no short payment of Service Tax & filing of returns is not required when there is no tax liability: CESTAT

++ ST - Service Tax demand not tenable where it also includes value of goods sold, which is not to be included during Service Tax valuation: CESTAT

++ ST - Services related to infrastructure expansion and modernization for providing output services are eligible for Cenvat credit, even after the 2011 amendment: CESTAT

++ ST - Refund claimed under Notfn No. 41/2007-S.T. for tax paid on input services used in export of goods, is allowed where requisite conditions for claiming refund stand satisfied: CESTAT

February 07, 2025

++ GST - Refund of statutory pre-deposit is a right vested on an assessee after an appeal is allowed in its favour - Claim not time barred, even if made beyond two years: HC

++ GST - s.54 - Reading the word 'may' as 'shall' would be unreasonable and would otherwise be arbitrary and in conflict with Limitation Act, 1963: HC

++ GST - Respondent to restore registration and open portal for 45 days to enable petitioner to pay dues - If dues unpaid, respondent free to block portal again and cancel registration: HC

++ CX - 'Place of removal' is the premises of buyer and not appellant's factory gate - Appellant entitled to take credit of ST paid on GTA service for outward transportation of goods: CESTAT

++ ST - Services included in E-seva/E-governance are sovereign functions - Not taxable: CESTAT

++ ST - 'Card Personalization' is a manufacturing activity; not a service: CESTAT

++ ST - Bill printing and despatch service cannot be considered as BAS: CESTAT

++ ST - Occupancy certificate would act like a completion certificate - Having sold flats subsequent to the date of issue of occupancy certificate, the appellant is not providing the declared services of construction of complex/building, etc.: CESTAT

++ ST - OC vs. CC - There cannot be different parameters for different Municipal Corporations of the same State - PIB clarification applicable to VVMC also: CESTAT

++ ST - The service tax exemption for factory canteens applies regardless of whether they are operated by factory itself or an independent caterer, setting aside the tax demand: CESTAT

++ ST - The maintenance of private railway sidings under FCI is exempt from service tax under Works Contract Service category CESTAT

++ CX - Specifications provided by Principal are merely guidelines for Assessee to manufacture motor vehicle parts & are not a form of consideration for sale; only detailed engineering drawings can be included in assessable value: CESTAT

++ Cus - The classification of imported Mixed Xylene Isomers under CTH 29024400 is upheld, rejecting the Customs Department's reclassification under CTH 27073000 CESTAT

++ ST - Early payment incentives are not taxable under 'Business Auxiliary Service', extended limitation period is rejected, thereby setting aside the service tax demand CESTAT

++ ST - Service tax is not applicable on product registration fees paid to foreign regulatory authorities CESTAT

February 06, 2025

++ GST - Recovery of Rs.2.50 crores - Deposits were made under coercion and duress - Single Judge is right in coming to conclusion that the amount is required to be refunded with interest: HC

++ GST - Nowhere it has been specifically mentioned in the agreement about deduction of GST loss in case of cancellation of purchase of flat: HC

++ GST - Tribunals have not been constituted as yet - In such circumstances, Bench directs that the assessee on payment of 'ten per cent' of the tax amounts in dispute shall be entitled to stay of recovery: HC

++ GST - Appellate Tribunal yet to be constituted - First appeal disposed of - Petitioner to make payment of 10% of balance amount of tax in dispute in addition to that already deposited: HC

++ Cus - Confiscation of seized gold upheld, where appellant fails to satisfy burden of proving that gold is not of smuggled origin; appellant also indicated to be habitual offender engaged in smuggling: CESTAT

++ Cus - The revocation of Concorde Zoom's CHA license overturned due to procedural delays and lack of direct involvement, restoring the license but upholding a reduced penalty of Rs5,000 for supervisory lapses: CESTAT

++ ST - The construction of a hostel building for an educational institution does not fall under 'Commercial or Industrial Construction Service' and is therefore not subject to service tax: CESTAT

++ ST - Statutory proceduresshould be adhered for serving orders, cases should be decided on substantive merits rather than technicalities: CESTAT

++ ST - Consideration for services can be inferred from indirect payments, such as price differentials: CESTAT

February 05, 2025

++ CX - Appellant is entitled to avail Cenvat Credit based on Certificates/statements issued by M/s. Indian Bank and based on photocopies of invoices: CESTAT

++ Cus - Original engineering drawings for industrial use are classifiable under CTH 49.06; cannot be treated as machinery or equipment: CESTAT

++ CX - Specifications provided before finalization of contract & not forming part of detailed engineering design cannot be treated as additional consideration: CESTAT

++ CX - As per trite law, there is no requirement to reverse Cenvat credit if no duty is due on final product, particularly when credit is ultimately offset by higher duty payments: CESTAT

++ ST - Since the VAT has been paid by appellant on supply of Diesel Generator Sets and therefore, service tax is not liable to be paid under Supply of Tangible Goods service: CESTAT

++ CX - Charges not related to manufacturing and shown separately are exempt from inclusion in assessable value: CESTAT

++ CX - Denial of cross-examination of key witnesses violated the legal rights of appellant, matter remanded back to adjudicating authority for reconsideration : CESTAT

++ CX - Appellants's case remanded holding that unutilized DTA clearance limits could be carried forward, but directed verification of records before finalizing excise duty liability : CESTAT

February 04, 2025

++ GST - Writ petition assailing confiscation notice u/s 130 is not tenable where Department makes out prima facie case; petitioner directed to submit detailed reply to issues raised: HC

++ GST -  Passing of order on the same day without waiting for the response to SCN was in gross violation of the principles of natural justice: HC

++ GST - Impugned order is passed without following the mandate of s.75(4) and is also in violation of the principles of natural justice - Order quashed: HC

++ GST - Assessment order passed without considering assessee's submissions against invocation of Section 74 of CGST Act; case remanded for re-consideration: HC

++ Cus - Assessment order stands quashed where passed after 15-year delay: HC

++ Cus - Passing Order-in-Original while SCN is still under challenge before High Court, effectively initiates parallel proceedings, rendering Court's scrutiny of the matter redundant: HC

++ CX - Activities such as labeling & re-labeling of goods, qualifies as manufacture under Section 2(f)(ii) of Central Excise Act; CENVAT credit allowed thereon: HC

++ GST - Penalty imposed u/s 74(1) r/w Section 122(2)(b) is not tenable where petitioner inadvertently availed transitional Cenvat credit under bona fide belief & without intent to evade tax: HC

++ CX - Cenvat Credit on duties paid via DEPB scripts is permissible, as clarified by Circular No. 5/2005-Cus: CESTAT

++ CX - CVD includes Excise duties and Cess, making EC & SHEC eligible for credit in same manner as Basic Excise Duty: CESTAT

February 03, 2025

++ Cus - As petitioner imported goods & failed to meet export conditions, Settlement Commission rightly imposed interest in line with Notfn No. 18/2015-Cus: HC

++ Cus - Delays in adjudication, especially when not backed by genuine constraints, cannot be tolerated, as it adversely affects both taxpayer & exchequer; SCN quashed due to inordinate delay in adjudication: HC

++ Cus - Statutory timelines for adjudication must be adhered to & delays must be justified by the Department & cannot be allowed to extend indefinitely: HC

++ CX - Proper documentation should be done to substantiate credit claims, procedural lapses alone do not justify denial of Cenvat credit: CESTAT

++ CX - Proceedings initiated under omitted rules without a saving clause are invalid, no recovery can be made under repealed provisions unless explicitly saved by law : CESTAT

++ CX - Cenvat credit availed before amendment of Rule 11(3) of CCR 2004, need not be reversed: CESTAT

++ Cus - Since appellant had paid differential duty before finalizing the assessments, the interest claim is upheld: CESTAT

++ ST - Neither the penalty recovery from contractors nor the notice pay recovery from employees qualifies as taxable services under Section 66E(e): CESTAT