Article

Government/ PSU procurements – Possible consequences of Supreme Court decision in Bharat Forge

By Atul Gupta and Narendra Singhvi

Procurement by Government or Public Sector Undertakings through tenders has been subject to frequent litigations. The article in this issue of Tax Amicus in this regard discusses the recent decision of Supreme Court in Bharat Forge Limited which will have widespread implications on the whole procurement process. The Court has held that the supplier is required to enquire and thereafter arrive at a conclusion regarding the relevant HSN Code and the relevant rate of tax applicable to the item. Further, the Apex Court has directed that wherever a tender is invited by the Union Government (Railway Board), the tender document needs to include a specific term that the bidders need to disclose the contact details of their GST jurisdictional Office, and a copy of the document, by which the contract containing all material details is awarded to the successful bidder, shall be forwarded to such officer. According to the authors, there is a possibility that the Government may amend the law to provide that the documents of the successful bidders may be uploaded on the GST portal. They are also of the view that the decision will encourage bidders to seek advance ruling before taking a decision to participate in tender...

Goods & Services Tax (GST)

Notifications and Circulars

• TRAN-1 and TRAN-2 filing/revising during October-November 2022 – CBIC issues guidelines
• Launching of prosecution under CGST Act – CBIC issues guidelines

Ratio decidendi

• Refund – Extension to time to file reply to SCN – Notification No. 35/2020-CT applicable even in case of online filing – Punjab and Haryana High Court
• Interest on delayed payment of tax – Waiver for availability of credit when not available – Madras High Court
• Detention of goods in transit – Transporter not entitled to seek release of goods – Madras High Court
• Refund under inverted duty structure – CBIC Circular No. 173/05/2022-GST, dated 6 July 2022 is clarificatory – Telangana High Court
• Registration – Inspection of premises without prior notice is not correct – Delhi High Court
• No confiscation if assessee offers to pay tax and penalty on goods detained/seized – Karnataka High Court

Customs

Notifications and Circulars

• Settlement of exports and imports in INR
• IGCR Rules substituted to extend its scope to all end-use notifications
• RoDTEP and RoSCTL schemes – Provisions relating to recovery from transferee omitted
• Rice exports – Broken rice export prohibited – Export duty imposed on specified items
• PET flakes import relaxed
• Gold, silver and platinum imports under various schemes for exports – Following of IGCR Rules
• Vegetable oils – Reduced customs duties to be effective till 31 March 2023

Ratio decidendi

• EOU – Drawback in case of deemed exports when Cenvat credit availed – Policy Circular No. 9(RE-2013)/2009-14 read down – Delhi High Court
• Data projectors are classifiable under TI 8528 61/62 and exempted under Sl. No. 17 of Notification dated 1 March 2005 – CESTAT Delhi
• Exemption – Use by importer when goods, to be used for specific purpose, sold before use – Madras High Court
• Printed circuit boards clad with metal – Classification for GST not relevant in Customs – CESTAT Mumbai
• Air conditioner kit and parts of heat exchange unit – Classification – AAR Customs
• Wireless charging pad with AC adapter and Lightning audio & charger rockstar – Classification – United Kingdom’s Upper Tribunal (Tax and Chancery Chamber)

Central Excise, Service Tax & VAT

Ratio decidendi

• Cenvat credit – Transportation service to employees cannot be said to be ‘input service’ – Supreme Court
• Sabka Vishwas (LDR) Scheme – Payment from electronic cash ledger maintained under CGST Act is valid – Bombay High Court
• Maintenance of streetlight is not covered under expression ‘management, maintenance or repair of roads’ – Delhi High Court
• Parts of CTVs not removed together – Rule 2(a) of Interpretative Rules is not applicable – CESTAT Allahabad
• Fertiliser or plant growth regulator – Mere presence of small traces of plant hormone does not make a product a plant growth regulator – CESTAT Mumbai