taxwiz - swamyassociates.com

TAXWIZ1st May, 2021

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The second wave of the Covid pandemic is moretelling in terms of hearing stories of sufferingsand loss of life from everyones’s known circles,more often. Wishes and prayers for normalcy torestore as soon as possible.

In the meanwhile, the Hon’ble SC has extendedthe limitation period for different purposes, untilfurther orders.

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Table Of Content

1 GST Case Laws

2 Notifications and Circulars

3 Revenue and Statistics

4 GSTN Portal Updates

5 News

6 Customs

7 The Legacy







2

1

GST CASE LAWS

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3

RADHA KRISHAN INDUSTRIES2021-TIOL-179-SC-GST

Power to order provisionalattachment of property isdraconian in nature and all theconditions laid down in thestatute needs to be strictlyfollowed for invoking thesame.

M/s CHAIZUP BEVERAGES LLP2021-TIOL-953-HC-MAD-GST

Refund under Sec. 54 of theGST Act or Drawback -Assessee can choose either ofthem.

4

M/s SEKAR AND COMPANY2021-TIOL-876-HC-MAD-GST

Department directed tofacilitate filing of Tran 01online.

M/s SARVASIDDHIAGROTECH PVT LTD 2021-TIOL-994-HC-TRIPURA-GST

GST demand affirmed on ricedealer for supply of brandedrice regardless of the factwhether the brand isregistered or not.







GST CASE LAWS


6Granting right to access to'pathway' leading to one'sdwelling unit by ChennaiMetro is licensing and taxableat 18%.

Promotional materialssupplied to Distributors, forusing in the showrooms are"non taxable supply" andhence not entitled for ITC.

Without anyconsideration, how it willbe a supply at the firstplace?

5M/S. PAGE INDUSTRIES LTD2021 (4) TMI 839 -APPELLATE AUTHORITY FORADVANCE RULING,KARNATAKA

CHENNAI METRO RAIL LTD 2021-TIOL-16-AAAR-GST







10

9DWARIKESH SUGAR INDUSTRIESLTD TS-1238-AAR(UP)-2020-GST7

ENPAY TRANSFORMERCOMPONENTS INDIA PVTLTD 2021-TIOL-125-AAR-GST

GST CASE LAWS


ITC available for CSR activities.AAR distinguishes betweengifts and CSR activities as theformer is voluntary but thelatter is obligatory andregulatory in nature.

Interest for delayed paymentof consideration to foreignsupplier is liable to IGST at thesame rate applicable for thegoods imported.

Pipelines block the flowof ITC.

8M/S. SHV ENERGY PRIVATELIMITED 2021 (4) TMI 882 -AUTHORITY FOR ADVANCERULING, TAMILNADU

Pipelines laid outside thefactory premises are notentitled for ITC.

AAR bats for CSR.

M/S BOWRING INSTITUTE 2021-TIOL-131-AAR-GST

Doctrine of mutuality, as laiddown by SC in Calcutta Clubapplied and no GST payable onsubscription collected frommembers. But, after theamendment to Sec. 7 of CGSTAct, GST is applicable.







NOTIFICATIONS & CIRCULARS


NOTIFICATION-16.04.2021 to 30.04.2021

NO DATE GIST

07/2021-

Central

Tax

27.04.2021 Allows filing of GSTR-1 and GSTR-3B

through electronic verification code for

the period 27.04.2021 to 31.05.2021.







REVENUE AND STATISTICS

• GST revenue collection for April 2021 sets new recordwith a gross collection of ₹1,41,384 crore.

LINK:https://pib.gov.in/PressReleasePage.aspx?PRID=1715314






https://pib.gov.in/PressReleasePage.aspx?PRID=1715314

GSTN Portal Updates

• Due dates for filing Form GSTR-3B from the Tax Period of

January, 2021 onwards

CBIC, vide Notification No 82/2020 – Central Tax, dated 10thNovember 2020, has revised Rule 61 of the Central Goods andServices Tax Rules, 2017, to provide for staggered filing of Form GSTR-3B, for the tax periods from January, 2021, onwards, as under:

Monthly filing of Form GSTR-3B

All States and Union Territories - 20th of the following month

Quarterly filing of Form GSTR-3B

Category-I: States of Chhattisgarh, Madhya Pradesh, Gujarat,Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana andAndhra Pradesh, the Union territories of Daman and Diu, Dadraand Nagar Haveli, Puducherry, Andaman and Nicobar Islands andLakshadweep - 22nd of the month following the quarter

Category-II: States of Himachal Pradesh, Punjab, Uttarakhand,Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, ArunachalPradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya,Assam, West Bengal, Jharkhand and Odisha, the Union territoriesof Jammu and Kashmir, Ladakh, Chandigarh and Delhi - 24th ofthe month following the quarter

LINK:https://www.gst.gov.in/newsandupdates/read/467


https://www.gst.gov.in/newsandupdates/read/467






NEWS


• GST rate tussle over

flavored milk

LINK:http://gstcouncil.gov.in/si

tes/default/files/gst-

articles/15-04-2021_GST-

flavoured-milk.pdf

• Govt mulls waiving off GSTon COVID-19 vaccines

LINK:https://www.businesstoday.in/current/economy-politics/govt-mulls-waiving-off-gst-on-covid-19-vaccines/story/437825.html

• Breather on tax compliance deadlines likely.

Union Govt to examine proposalsseeking relief to businessesthrough extension of GST andIncome Tax deadlines.

LINK:http://gstcouncil.gov.in/sites/default/files/gst-articles/23-04-2021_tax-compliance.pdf

• Price gap of ready andunder construction housesnarrows

LINK:http://gstcouncil.gov.in/sites/default/files/gst-articles/27-04-2021_construction-houses.pdf

• Plea in SC for GSTexemption on COVID-19related drugs, medicalequipment

The application sought directionto the Centre to issueappropriate ad-hoc guidelines,orders or notifications"exempting COVID-19 relateddrugs including but not limitedto Remdesivir, Tocilizumab,Favipiravir and other drugs.

LINK: https://economictimes.indiatimes.com/news/india/plea-in-sc-for-gst-exemption-on-covid-19-related-drugs-medical-equipment/articleshow/82312711.cms






http://gstcouncil.gov.in/sites/default/files/gst-articles/15-04-2021_GST-flavoured-milk.pdf

https://www.businesstoday.in/current/economy-politics/govt-mulls-waiving-off-gst-on-covid-19-vaccines/story/437825.html

http://gstcouncil.gov.in/sites/default/files/gst-articles/23-04-2021_tax-compliance.pdf

http://gstcouncil.gov.in/sites/default/files/gst-articles/27-04-2021_construction-houses.pdf

https://economictimes.indiatimes.com/news/india/plea-in-sc-for-gst-exemption-on-covid-19-related-drugs-medical-equipment/articleshow/82312711.cms

NEWS


• GST officers to soon have real-time data on vehicles moving

without e-way bills.

The Government is working on a system to soon provide report to

GST officers on a real-time basis for those vehicles which are moving

without e-way bills.

LINK:https://www.business-standard.com/article/economy-

policy/gst-officers-to-soon-have-real-time-data-on-vehicles-moving-

without-e-way-121041800453_1.html

• Carbonated grape juice to face 28% GST, rules AAAR






https://www.business-standard.com/article/economy-policy/gst-officers-to-soon-have-real-time-data-on-vehicles-moving-without-e-way-121041800453_1.html

3SRI SATHYA JEWELLERY 2021-TIOL-960-HC-MAD-CUS

Jurisdictional error should notresult in exoneration of liability.Jurisdictional error, if anycommitted, is technical, andthus, rectifiable. In suchcircumstances, the Courts areexpected to quash the orderpassed by an incompetentauthority and remand thematter back for freshadjudication. Contrarily, if anassessee is exonerated fromliability, undoubtedly, thepurpose and object of the Act isdefeated.

4PALANI ANDAVAR COTTON ANDSYNTHETIC SPINNERS LTD 2021(4) TMI 927 - MADRAS HIGHCOURTThe scope of review underArticle 226 of the Constitution ofIndia is to scrutinise the processthrough which a decision istaken by the CompetentAuthorities with reference to theStatutes and not the decisionitself.

1M/S RUCHI SOYA INDUSTRIESLTD- WP No.31090/2015Madras HC follows recent SC’sjudgement in GhanashymMishra and holds tax due doesnot enjoy any special protectionunder IBC provisions. Butobservers that though the term“operational debt” is notintended to cover tax dues,which is a compulsoryextraction, it is bound by theSC’s decision.

2M/S. ARISTO SHIPPING 2021 (4)TMI 1107 - MADRAS HIGHCOURTThe purpose of setting atimeline is to make sure that thesuspension of customs brokerlicence is not indefinite and theproceedings are completedpromptly. Therefore, thetimelines set out in Regulation17 for issuance of notice,preparation & submission ofenquiry report, passing of orderin original are mandatory andfor the violation of such timelimits, the order in original isquashed.

CUSTOMS

CASE LAWS

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6KIRLOSKAR FERROUSINDUSTRIES 2021 (4) TMI 1086 -CESTAT BANGALOREThe Tribunal has held that theRevenue has not challenged theshow-cause notice as well as theOrder-in-Original allowing theoption to the appellant to seekan amendment in the Bill ofEntry as permissible underSection 149 of the Customs Act,1962 but the same was suomotu set aside by the learnedCommissioner which is againstthe law. Request forreassessment to be treated asapplication under Section 149 ofCustoms Act, 1962 for theamendment of Bill of Entry.

5M/s INNOMIT MINERALPROJECTS PVT LTD 2021-TIOL-905-HC-MAD-CUSChinese exporter had cheatedthe petitioner and instead ofexporting Re-melted LeadIngots, had exported packs ofCaustic Soda Bags and IndustrialSalt. Therefore, the petitionerdecided to abandon the goodsunder Section 23 of the CustomsAct, 1962 and requested refundof Rs.13,58,794/-, paid asCustoms duty. The High Courtdirected the respondent torefund a sum of Rs.6,85,687/-being the difference betweenthe value of goods imported andthe customs duty paid to thepetitioner together with interestat 7.5%. Unjust enrichment heldto be not applicable.

CUSTOMS

CASE LAWS

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IMPORTANT CUSTOMS NOTIFICATIONS & CIRCULARS

CUSTOMS NOTIFICATION – TARIFF 16.04.2021 to 30.04.2021

NO DATE GIST

27/2021 20.04.2021 Exempts customs duty on import ofRemdesivir Active PharmaceuticalIngredients, Beta Cyclodextrin (SBEBCD)used in the manufacture of Remdesivir &Injection Remdesivir till 31/10/2021.

28/2021 24.04.2021 Exempts customs duty on import of oxygen,equipment related to oxygen and COVID-19vaccination till 31/07/2021.


ANTI DUMPING DUTY NOTIFICATION- 16.04.2021 to 30.04.2021

NO DATE GIST

22/2021 15.04.2021 Levy of ADD on imports of Barium Carbonatefrom China extended till 20/10/2021.

23/2021 20.04.2021 Bulk Continuous Filament (BCF) Yarn ofhigher denierage (650 decitex to 10,000decitex), excluded from the levy of ADD.

24/2021 read with

Corrigendum dated

27.04.2021

26.04.2021 Levy of ADD on import ofPolytetrafluoroethylene (PTFE) from Koreaintroduced for the period upto 06/06/2021

25/2021 26.04.2021 Levy of ADD on import ofPolytetrafluoroethylene from China for theperiod upto 28/07/2021.








ANTI DUMPING DUTY NOTIFICATION- 16.04.2021 to 30.04.2021

NO DATE GIST

26/2021 27.04.2021 Levy of ADD on import of l-Phenyl-3-Methyl-5-Pyrazolone from China imposedfor a period of five years till 09/06/2025.

28/2021 27.04.2021 Levy of ADD on import of Toluene Di-Isocyanate (TDI) having isomer content inthe ratio of 80:20 from European Union,Saudi Arabia, Chinese Taipei and UnitedArab Emirates for a period of five years till02/12/2025.

CUSTOMS INSTRUCTIONS- 16.04.2021 to 30.04.2021

NO DATE GIST

06/2021 24.04.2021 The Board has instructed to give high priorityfor Customs clearances of import of goodsrelating to COVID 19 pandemic, includingoxygen related equipment etc.

DGFT NOTIFICATION- 16.04.2021 to 30.04.2021

NO DATE GIST

02/2015-2020

26.04.2021 Import of mosquito killer racket is'prohibited' if the C.I.F value is belowRs.121/- per racket.

03/2015-2020

26.04.2021 Import policy of Melon Seeds falling underHS Code 12077090 has been restricted.








DGFT TRADE NOTICE- 16.04.2021 to 30.04.2021

NO DATE GIST

02/2021-2022

26.04.2021 DGFT has operationalized a 'COVID-19Helpdesk' to support and seek suitableresolutions to issues arising in respect ofInternational Trade.






2M/s RUNWALCONSTRUCTIONS 2021-TIOL-961-HC-MUM-CXPurchase of Property in DRTproceedings. Buyer not liable forthe tax dues of the Seller, as onlythe property was purchased andnot the business as such.

3PRATHAMESH DREAMPROPERTIES PVT LTD 2020-TIOL-1887-HC-MUM-STSVLDRS - Petitioner has fileddeclaration under ‘pendinglitigation category’. But, theappeal was dismissed by theTribunal, for non rectification ofa defect, which is not known tothe taxpayer. DesignatedCommittee recalculated thedemand under "Arrears"Category. High Court holds thatthe said declaration has to beconstrued to be one under the'pending litigation category'.

1MANONMANIAMSUNDARANAR UNIVERSITY2021-TIOL-888-HC-MAD-STAffiliation fees as well as theinspection commission collectedby the University are in thenature of statutory levies. Byperforming those activities, thepetitioner is only discharging astatutory function and the feescollected by the Universitycannot be amenable to levy ofService Tax.

THE LEGACY

CENTRAL EXCISE AND SERVICE TAX CASE LAWS







64

5

THE LEGACY



BNP PARIBAS GLOBALSECURITIES OPERATIONSPRIVATE LIMITED 2021 (4) TMI783 - MADRAS HIGH COURTThe refund of CENVAT creditunder Rule 5 of the CENVATRules is a legitimate exportincentives given to an exporterof service and goods. Suchlegitimate export incentivesgiven to exporters of goods orservice cannot be denied merelybecause of intervening changesin view of implementation ofGST with effect from01.07.2017. 7

GENERAL MOTORS TECHNICALCENTRE INDIA PVT. LTD. 2021(4) TMI 894 - CESTATBANGALOREAmended Rule 5 of CenvatCredit Rules does not requirecorrelation between the outputservice exported and the inputservice used in such outputservices exported. Further,eligibility to credit cannot bequestioned, in the proceedingsfor refund.

CENTRAL WAREHOUSINGCORPORATION 2021-TIOL-230-CESTAT-DELExtended period cannot beinvoked to demand interest onpayment of Service Tax onupward price revision granted bycustomers, in the absence of anyfraud, etc.

DHARTI DREDGING ANDINFRASTRUCTURE LTD 2021-TIOL-223-CESTAT-HYD-LBCenvat credit admissible forWorkman CompensationInsurance Policy obtained by theEmployer, as it is the employerwho has insured his risk towardspayment of compensation.






9M/s DYNAMIC TECHNOMEDICALS PVT LTD2021-TIOL-226-CESTAT-MADThough a refund claim as perSection 104 of Finance Act, 1994has to be filed within six monthsfrom the date when the Billreceives the assent of thePresident of India, in the presentcase, there arise a confusion asto who has to file a refund claimwhether the appellant orSIPCOT. When the claim hasbeen filed within reasonabletime from the date when theappellant received intimationfrom SIPCOT, the refund has tobe granted.

108

THE LEGACY



M/s KAJARIA CERAMICS LTD2021-TIOL-227-CESTAT-DEL

Classification of service cannotbe questioned at the recipient'send who avails credit of thesame.

M/s VARDHMAN INDUSTRIESLTD 2021-TIOL-231-CESTAT-CHDCenvat credit cannot be deniedmerely based on the allegationthat the goods have not beensupplied physically and onlyinvoices have been moved. It isthe duty of the revenue toascertain the fact if the appellanthas not received the goods, thenfrom where, they procured thegoods and used the same formanufacturing of dutiable goodswhich have been cleared onpayment of duty.






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