Article

‘Value addition’ in Value Addition Tax: Extension of limitation period

By Rinku Panbude

Post introduction of GST, the State Governments of Kerala, Gujarat and Telangana have amended their VAT laws with the objective of enhancing the limitation period in different forms. The said extension of limitation period needs to be tested on the touchstone of the Indian Constitution i.e., whether the States continued to possess ‘power’ under the Constitution to levy and administer VAT with the advent of GST law. The author notes that though the Gujarat, Telangana and Kerala High Courts have held in favour of the assessee, the Bombay High Court has ruled to the contrary and held that the amendments in Maharashtra VAT laws were very well within the ambit of Article 246A of the Constitution. According to him, an argument is possible that the power to levy and administer VAT flows from Entry 54 only and not from Article 246A. However, the said interpretation coupled with the divergent Court rulings may require to be tested before the Supreme Court to attain finality.

Goods and Services Tax (GST)

Notifications and Circulars

• Classification and GST rate for certain goods and services clarified

Ratio decidendi

• Mismatch between GSTR-2A and GSTR-3B – CBIC Circular No.183/15/2022-GST applicable for 2019-20 also even though refers to 2017-18 and 2018-19 only – Karnataka High Court
• Show cause notice for cancellation of registration under Form GST REG 31 and not in GST REG 17, is wrong – Kerala High Court
• Condonable period falling on Sunday – Principle of availability of next working day not applicable – Madras High Court
• Refund claim – Transaction of all units having same GSTIN to be clubbed in one single refund claim – Orissa High Court
• Attachment order to be revoked after filing of appeal by assessee – Himachal Pradesh High Court
• Appeal filed offline to be entertained when due to some technical glitch online appeal not reflected on portal – Allahabad High Court
• Transitional credit of TDS of VAT is available in GST regime – Jharkhand High Court
• Extension of time limit for issuance of show cause notice when time limit for issuance of order is extended – Kerala High Court
• Project Implementing Agency, a government undertaking, getting work done through contractors, is liable to issue tax invoice to concerned department of government – AAR West Bengal
• Healthcare services are not exempt if not provided by clinical establishment, authorised medical practitioner or paramedics – AAR West Bengal
• Activity not done for commercial benefit but for social and economic benefit of marginalised people is covered under ‘charitable activity’ – AAR Gujarat
• Students’ hostel is not a ‘residential dwelling’ for purpose of GST exemption on lease thereof – Appellate AAR Andhra Pradesh

Customs

Notifications and Circulars

• Customs (Assistance in Value Declaration of Identified Imported Goods) Rules, 2023 notified
• EPCG scheme – One time relaxation from maintaining average EO and extension in EO period, due to Covid-19
• Advance authorisations – Composition fee for extension of EO period delinked from unfulfilled FOB value
• E-waste (Management) Rules, 2022 with modified extended producer responsibility to be effective from 1 April 2023
• Covid-19 vaccine exempted from BCD till 31 March 2023

Ratio decidendi

• All-in-one integrated desktop computer is not portable – Classifiable under TI 8471 50 00 – Supreme Court
• Chemical composition does not indicate whether goods ‘off grade’ or ‘prime’ – CESTAT Ahmedabad
• Advance Rulings – Question when not to be considered as pending before officer of customs – Delhi High Court
• Concessional rate of duty on motor vehicles imported in CKD condition – Benefit available even if different parts imported due to technological advancement – Customs AAR

Central Excise, Service Tax & VAT

Ratio decidendi

• Sabka Vishwas (LDR) Scheme – Non-payment of settlement amount before stipulated date due to IBC moratorium is not fatal – Supreme Court
• Sabka Vishwas (LDR) Scheme benefit under arrears category not deniable even if department decides to file appeal against relevant decision – Jharkhand High Court
• Sabka Vishwas (LDR) Scheme benefit available in respect of goods falling under Fourth Schedule to Central Excise Act, if no excise duty is leviable – Orissa High Court
• ‘Diversification’ under U.P. Trade Tax Act is production of goods of different nature – Supreme Court
• Captive consumption exemption available to machines transferred to assessee’s additional premises – CESTAT Ahmedabad
• Declaration under Service Tax Voluntary Compliance Encouragement Scheme not barred when ‘true’ liability not disclosed earlier – CESTAT Delhi
• UP VAT – ITC of tax paid on purchase of import license available even if only imported goods and not licence itself further traded – Allahabad High Court