Goods and Services Tax (GST)

Notifications and Circulars

• Distribution of credit by Input Service Distributor will be mandatory w.e.f. 1 April 2025
• Penalty for running unregistered machines for manufacture of pan masala, tobacco, etc., as per special procedure, effective from 1 October 2024

Ratio decidendi

• Transitional credit – Taking transitional credit at branch office and not at registered office having centralized registration, is not wrong – Telangana High Court
• VAT credit available in ledgers on 2 June 2014, at time of bifurcation of State of Andhra Pradesh, can be transferred to AP GST regime – Andhra Pradesh High Court
• Input Tax Credit – Purchasing dealer cannot be punished for non-deposit of tax collected by the seller – Gauhati HC relies on Delhi HC decision involving Delhi VAT
• Input Tax Credit – Mere production of tax invoices, e-way bills and payment details are not sufficient – Allahabad High Court
• Refund of ITC on exports – Time-period of 60 days for issuance of order by proper officer is not mandatory but only directory – Calcutta High Court
• Refund of ITC on exports – Rule 92(3) not contemplates a general enquiry for eliciting documents – Bank Realisation Certificate is not required – Delhi High Court
• E-way bill not accompanying goods – Discrepancy is cured if e-way bill produced before seizure order after issuance of SCN – Allahabad High Court
• Adjudication – Notification No. 56/2023-CT, extending time-limit for issuing order, is prima facie not in consonance with CGST Section 168(A) – Gauhati High Court
• Appeal to Appellate Authority – Writ Court can condone delay in filing appeal beyond prescribed period – Rajasthan High Court
• Appeal to Appellate Authority – Authority is not competent to condone delay beyond one month after expiry of three months – High Court can condone delay only in exceptional circumstances – Jammu & Kashmir High Court
• Orders passed by Central Government office to be in English in Andhra Pradesh – Andhra Pradesh High Court
• Organising physical card game of Bridge, played for money, is not liable to GST – West Bengal AAR
• Transfer of title of goods stored in FTWZ unit to DTA unit is covered under para 8(a) of Schedule III to CGST Act – Tamil Nadu AAR

Customs

Notifications and Circulars

• Goods (excluding undenatured ethyl alcohol of any alcoholic strength) for use in laboratory or research and laboratory purposes liable to BCD @ 10%
• Gold and silver jewellery/articles – AIR of Drawback reduced
• EOUs – Implementation of automation in Customs IGCRS Rules, 2022 from 1 September 2024
• Advance authorization – Provisions relating to regularization of bona fide default relaxed

Ratio decidendi

• Port restriction for import of new vehicles is not applicable for vehicles imported in completely knocked down (CKD) condition – CESTAT New Delhi
• SCOMET – Export of goods certified by experts as for civil use cannot be stopped alleging potential military use – Delhi High Court
• Order – Not giving a finding on any issue after recording submissions means that Department satisfied with the explanation – Bombay High Court
• SAD refund not deniable, for mismatch of description of goods, without challenging CA certificate – CESTAT Chennai
• No interest, redemption fine and penalty payable, for late payment of IGST on imports, in absence of provisions for same – CESTAT Ahmedabad
• Valuation of scrap – Reliance on Circular No. 14/2005-Cus. while ignoring contemporaneous imports, is not correct – CESTAT Mumbai
• Classification of goods – Possible misuse after import is no criteria for classification – Provisional release allowed as investigation under process – CESTAT Mumbai
• Echo Dot (5th Gen), Echo Dot (5th Gen) with Clock and Echo Pop are classifiable under Tariff Item 8517 62 90 – Delhi High Court

Central Excise, Service Tax and VAT

Ratio decidendi

• No service tax on foreclosure charges, penal charges and on insurance administration fees – Supreme Court upholds CESTAT decision
• No service on out roamer revenue received if service tax paid by other entity which collected charges including tax from subscribers – CESTAT Chennai
• Exemption – Requirement of a certificate for central excise exemption is only procedural – CESTAT Ahmedabad
• Cash refund of CVD and SAD paid under ‘existing law’ but after 1 July 2017 – CESTAT New Delhi
• Kopiko, a hard-boiled sugar and glucose confectionery, containing 1.57% Coffee flavour is classifiable under TI 1704 90 90 as sugar confectionery – CESTAT Ahmedabad