Article

RoDTEP Scheme – Should it work within the budgetary limit?

By D. Kalirajan

The Central Government recently notified the much-awaited Remission of Duties and Taxes on Exported Products Scheme (‘RoDTEP Scheme’) with retrospective effect i.e., for exports from 1 January 2021, with certain exclusions. The article in this issue explores the answer to the question as to whether budgetary limit imposed by the government would allow the scheme to achieve its objective of refunding the duties and taxes which are not refunded/remitted/credited under any other schemes. The author notes that the scheme may discriminate among exporters who exported during start of the year, from those who exported during later part of year, as budget may dry-up by then. The author also is of the view that the RoDTEP Scheme, being a duty/tax remission scheme, should also provide for fixation of exporter-specific rate of RoDTEP, like brand rate of duty drawback...

Goods & Services Tax (GST)

Notifications and Circulars

• • Requirement of GST audit and reconciliation statement by professionals removed with effect from 1 August 2021

Ratio decidendi

• Interest liability can be paid in instalments, but registration can be restored only after all dues are cleared – Gauhati High Court
• Order under Rule 86A creates lien up to the limit specified if no positive credit is available on the date of such order – Allahabad High Court
• Input tax credit attributable to the period covered by provisional registration of supplier can be taken once tax with interest is paid by the supplier – Kerala High Court
• Vehicle a ‘used personal effect’ even if run for negligible distance – No requirement of e-way bill – Kerala High Court
• E-vouchers are taxable and liable to GST @ 18% - Karnataka AAR
• Forbearance charges cannot form part of composite supply along with sale – Telangana AAR
• No transfer of ‘going concern’ if liabilities not transferred – Andhra Pradesh AAR
• Incentive received from State government when not a subsidy – Gujarat AAR
• EU VAT – VAT deductions on sale of warranty extensions, not correct – Court of Justice of the European Union

Customs

Notifications and Circulars

• Import/export prohibitions and restrictions by DGFT
• RoDTEP scheme to substitute MEIS notified
• e-BRC with LEO up to 31 March 2020 on which RoSCTL scrip claimed to be uploaded by 15 September 2021
• RMS implemented for processing of Duty Drawback claims
• Continuous AEO-T1 introduced – No periodical renewal of AEO-T1 required
• AA/EPCG Authorization transfer in case of amalgamation/de-merger/acquisition – Procedure notified
• Integrated Circuits (ICs) – CHIMS implementation extended by two months
• IEC modification period extended till 31 August 2021 – Fees waived for modifications in August 2021

Ratio decidendi

• Software Technology Parks – No provision for partial exemption under Notification No. 153/93-Cus. – CESTAT Chennai
• Interest on refund of pre-deposit deposited prior to 2014 amendment of Section 129EE must be in terms of Section 27A – Andhra Pradesh High Court
• Jurisdictional issue can be raised at any stage of proceedings – Karnataka High Court
• Refund – Re-assessment under Section 128 not the only remedy available – Telangana High Court
• Demand of erroneously refunded EDD cannot be made pending adjudication – Madras High Court
• Head mounted device running on android and partly programmable with voice inputs classifiable under Heading 8517 – Customs AAR
• ‘Bluetooth module’ classifiable under Tariff Item 8517 62 90 – CESTAT Delhi
• Bamboo beakers made of 72% plant fibres and 25% melamine classifiable under Heading 3924 as plastic product – Court of Justice of the European Union
• Fire alarm containing recording system not covered under Heading 9027 as measuring instrument – United Kingdoms' First-Tier Tribunal Tax Chamber

Central Excise, Service Tax & VAT

Ratio decidendi

• Area-based exemption – Limitation for filing applications for special rates – Guahati High Court
• Cenvat Credit on input services used in setting up of plant/factory, available even after 1 April 2011 – CESTAT Hyderabad
• Cenvat credit on in-warranty maintenance services provided by dealer, available even after 1 April 2011 – CESTAT Delhi
• SVLDR Scheme – Discharge certificate not to be refused after payment of amount as per SVLDRS-3 – Andhra Pradesh High Court
• SVLDR Scheme – ‘Redemption fine’ covered in word ‘penalty’ – Allahabad High Court
• Reversal of credit not required in case of inputs/packing material destroyed in fire – CESTAT Mumbai
• Heavier hydrocarbons, described as gas condensate, are not liable to NCCD as not marketable – CESTAT Delhi