Goods and Services Tax (GST)

Notifications and Circulars

• 54th Meeting of GST Council – Highlights of important recommendations
• Dates for amendments by the Finance (No.2) Act, 2024 in CGST Act and IGST Act notified
• Sunset clause for Anti-profiteering – No request for examination to be accepted from 1 April 2025
• IGST refund on exports do not contravene Rule 96(10) if IGST and compensation cess, along with interest, is paid on imported inputs later
• Demo vehicles – Input Tax Credit is available, subject to conditions
• Advertisement services provided by an advertising agency in India to foreign company under a comprehensive agreement for one-stop solution is export of services, subject to conditions
• Data hosting services provided by service providers in India to cloud computing service providers located outside India is export of services, subject to conditions

Ratio decidendi

• Free electricity to States is prima facie not ‘consideration’ – Himachal Pradesh HC grants interim relief on GST demand, observing that service tax demand dropped earlier – Himachal Pradesh High Court
• Refund of accumulated ITC when input tax paid in excess at higher rate – Madras High Court
• GST Council’s recommendation is mandatory if Central/State Act stipulates an act to be done on such recommendation – Gauhati High Court
• Adjudication – Notification No. 56/2023-CT, extending time-limit for issuing orders for FYs 2018-19 and 2019-20, is ultra vires to Section 168A – Gauhati High Court
• Non-uploading of the notice on the Portal is not fatal if same served through e-mail – Calcutta High Court
• Demand proceedings – Transfer from the State authorities to DGGI is wrong – Punjab & Haryana High Court and Himachal Pradesh High Court
• Demand – Jurisdiction of a State Authority to issue SCN for dealings of a company in other States – Punjab & Haryana High Court
• No provision for adjudication of submissions made under Rule 142(2A) against communication before service of notice – Rajasthan High Court
• Prosecution cannot be launched invoking IPC provisions only without considering GST provisions – Madhya Pradesh High Court
• Blocking of electronic credit ledger – Principles of natural justice need to be read into Rule 86A – Post-decisional hearing is no substitute – Karnataka High Court
• Blocking of electronic credit ledger – Reason to believe – Department must arrive at satisfaction based on own inquiry and some objective material – Karnataka High Court
• Refund of IGST on exports – Notification No. 54/2018-Central Tax substituting Rule 96(10) is prospective – Gujarat HC reviews its earlier decision in Cosmo Films – Gujarat High Court
• Classification of unfried or un-cooked snack pellets – Exemption claimed till 27 July 2023 not deniable – Gujarat HC interprets “‘as is’ basis” in CBIC Circular – Gujarat High Court

Customs

Notifications and Circulars

• RoDTEP scheme extended beyond 30 September 2024 for exports from DTA units and for Advance Authorisation holders, EOUs and units in SEZs
• EPCG Scheme – Report on fulfilment of Export Obligation streamlined and compliance reduced
• E-commerce – Specified export promotion schemes now available for courier exports
• Customs brokers as co-noticee to be avoided in interpretation disputes unless abetment established
• Rice – Prohibition removed for export of non-basmati white rice
• ‘Laboratory chemicals’ redefined for Tariff Heading 9802
• Works of art and antiquities imported for public exhibition in museum or art gallery – Exemption from BCD and IGST rescinded
• Authorisations for import of specified IT hardware to be valid till 31 December 2024 only

Ratio decidendi

• DTA sale by EOU – Copper strips and coin blanks are similar goods for benefit under Para 6.8(a) of Foreign Trade Policy, 2009-14 – CESTAT Chandigarh
• Compressors used in car air-conditioners are classifiable under TI 8414 80 11 and not under TI 8415 90 00 – SC decision in Westinghouse Saxby distinguished – CESTAT Chennai
• Electrical components of air-conditioner remote control and parts are not classifiable as ‘parts of air-conditioner’ – CESTAT Ahmedabad
• FTA imports – Detention order not recording reasons or following verification of Certificate of Origin as laid down under various statutory provisions is incorrect – Delhi High Court
• Valuation – NIDB data prevailing at the time of into-bound clearance is not relevant – CESTAT Ahmedabad

Central Excise, Service Tax and VAT

Ratio decidendi

• Siapton 10L and Isabion are classifiable as fertilisers – CESTAT Larger Bench clarifies difference between ‘fertiliser’ and ‘plant growth regulator’ – CESTAT Larger Bench
• Pre-deposit under Excise Section 35F from GST credit ledger – CBIC Circular dated 28 October 2022 prohibiting so, is prospective – Bombay High Court
• SSI exemption – Clubbing of clearances – No financial flow-back when price/cost reduction meetings benefitted both the parties – CESTAT Bengaluru
• No service tax on grant of exclusive right to use without disturbance/encumbrance which is deemed sale – CESTAT Prayagraj
• Cenvat credit on input services if final product subsequently exempted – Rule 6 not applicable – Rule 11(3) not applicable for input services – CESTAT Kolkata
• Valuation – Related parties – Determination of value under Excise Valuation Rule 8 – CESTAT Prayagraj