GST Payable On Godown Rent Even For Exempt Agricultural Warehousing: Gujarat AAR

On 21 September, the Gujarat Authority for Advance Ruling (AAR) held that rent paid for hiring godowns from unregistered persons is taxable under GST under reverse charge, even when the godowns are used exclusively for providing exempt storage and warehousing services for agricultural produce. A Bench comprising SGST Member Sushma Vora and CGST Member Vishal Malani disposed of the application filed by Gujarat State Warehousing Corporation, holding that the hiring of godowns and the subsequent...

Customs Can Recover Differential Duty Without Challenging Importer's Self-Assessment: CESTAT Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 23 September held that the Customs Department can demand differential duty under Section 28 of the Customs Act without first challenging an importer's self-assessment. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh partly allowed an appeal filed by Famous Steel, observing that anti-dumping duty is a customs duty on which IGST is payable, while...

Sikkim High Court Sets Aside ₹37.93 Lakh Recovery Against Lupin Limited, Directs Fresh Review

On 23 September, the Sikkim High Court set aside a Rs. 37.93 lakh recovery against Lupin Limited under the Budgetary Support Scheme, directing the tax authorities to reconsider the matter after examining the company's explanation and supporting documents. Chief Justice A. Muhamed Mustaque found that the authorities had not properly considered Lupin's explanation on the ITC reflected in its GSTR-2A before concluding that it had received excess benefit under the scheme. The Bench observed: “If...

Mandatory Type Testing Charges Includible In Excise Value Of ACSR Conductors: CESTAT Ahmedabad

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) on 23 September held that mandatory type-testing charges collected from a buyer form part of the assessable value of ACSR conductors for central excise purposes. A Bench comprising Judicial Member Dr. Ajaya Krishna Vishvesha and Technical Member Satendra Vikram Singh upheld the central excise duty demand against Smita Conductors Ltd. on testing charges collected from Power Grid Corporation of India Ltd. for...

Madhya Pradesh High Court Advises GST Department To Send SMS/Email Alerts For Hearing Dates

The Madhya Pradesh High Court has advised the GST Department to introduce SMS or email alerts to parties or their advocates about hearing dates, after noting that many taxpayers were approaching the court complaining that they had not been served with hearing notices.A Division Bench of Justice Subodh Abhyankar and Justice Alok Awasthi made the suggestion while allowing a petition filed by Maple Overseas Trade Private Limited. The court set aside the dismissal of the company's appeal against a...

CESTAT Chennai Quashes ₹1.26 Lakh Demand Against Canbank Factors Over 'Bank Charges' Classification

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, on 23 September set aside the service tax demand of Rs. 1,26,841 against Canbank Factors Limited, holding that the Department had failed to establish the taxable character of the disputed receipts. A Bench comprising Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V. held that bank charges cannot be subjected to service tax merely because they are recorded under a ledger-head bearing that description,...

CESTAT Chennai Sets Aside ₹23.17 Crore Demand Against Toyota, Rejects Reclassification Of 226 Parts

On 23 September, the Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside a Rs. 23.17 crore customs duty demand against Toyota Kirloskar Motor Pvt. Ltd. over the classification of 226 imported motor vehicle parts. It also held that the extended limitation period was unavailable and set aside the confiscation, Rs. 17 crore redemption fine and penalty imposed on the company.A Bench comprising Technical Member Vasa Seshagiri Rao and Judicial Member Ajayan T.V....

Pre-Deposit For GST Appeal To Be Governed By Law Existing On SCN Date: Delhi High Court

The Delhi High Court has held that the requirement of pre-deposit for filing an appeal under the Central Goods and Services Tax (CGST) Act would be governed by the statutory provision in force on the date of issuance of the show cause notice (SCN).The Division Bench of Justices Anil Kshetarpal and Bharat Parashar made the observation while dealing with a petition challenging a GST adjudication order concerning allegations that Petitioner had created and controlled 13 firms through which input...

Genuine Exporters Should Not Face 'Needless Litigation' Over Inadvertent Procedural Lapses: Calcutta High Court

The Calcutta High Court has directed the Directorate General of Foreign Trade (DGFT) to take measures to ensure that genuine exporters are not driven to “needless litigation” over inadvertent procedural lapses that can be rectified in accordance with law.“The DGFT authorities must take appropriate measures, whether by issuing comprehensive instructions or by suitable technological adjustments, to ensure that genuine exporters are not driven to needless litigation on account of inadvertent...

Railway's Own Printed Forms Cannot Attract Excise Duty, As They Cannot Be Sold In The Market: CESTAT Mumbai

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Mumbai, has held that railway-specific printed stationery made exclusively for Western Railway's own use was not liable to excise duty because the Revenue failed to establish that the material could be bought and sold in the market.A Bench of Judicial Member Ajay Sharma and Technical Member M.M. Parthiban set aside the ₹95.93 lakh excise duty demand against the Western Railway Printing Press, along with interest and a penalty...

Gujarat High Court Holds Company Entitled To Interest On ₹2.50 Crore TDS Refund

The Gujarat High Court has ruled that Maharashtra Border Check Post Network Ltd. is entitled to interest on a ₹2.50 crore refund arising from a TDS demand that was later set aside. The court held that the company's claim was covered by Section 244A(1)(b) of the Income Tax Act and could not be denied by relying on Section 244A(1B), which came into effect from April 1, 2017.A Division Bench of Justice A.S. Supehia and Justice Vaibhavi D. Nanavati observed that Section 244A(1)(b) already provided...

ITAT Delhi Quashes Reassessment Against Company Over Defective Notice

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) has quashed the reassessment proceedings against RNT Metals Pvt. Ltd. for assessment year (AY) 2021-22, holding that the notice issued under Section 148 did not provide the statutory period prescribed for filing the return. It also quashed the company's regular assessment for AY 2022-23, holding that, in the circumstances of the case, the Assessing Officer could not continue the pending Section 143(3) assessment after a Section 132...