CUSTOM CIRCULARS
Extension of validity of Authorized Economic Operator (AEO) certification for case of renewal process
Validity of all AEO certificates expired or expiring between March 01, 2020 and May 31, 2020 has been extended to June 30, 2020. However, extension in respect of entities against which a negative report is received during this period, shall not be apply.
Customs Circular no. 27/2020-Customs dated June 02, 2020
COURT RULINGS
Show Cause Notice (SCN) confirming the proposal without giving Assessee an opportunity of being heard is not sustainable
Where the SCN was issued and confirmed on the same day, the same goes against the very basic principles of natural justice, as the Assessee was not at all given any opportunity to present their objections. As the assessment cannot be made without given Assessee an opportunity of being heard, such assessment order made without providing such opportunity to the Assessee is bad in law and hence, is not sustainable.
Sree Saravana Engineering Bhavani Private limited v. The Assistant Commissioner, ST (Madras HC)
CESTAT RULINGS
Refund claim under Rule 5 of CENVAT Credit Rules (CCR) cannot be denied only for the reason of registration number of service provider not being mentioned on the invoice
Where there is no dispute regarding export of goods, services being used for such export of goods and value of service including service tax thereon being paid to service provider, refund claim filed in terms of Rule 5of CCR cannot be rejected merely on the grounds that service tax registration number of service provider has not been mentioned on the invoices raised by him.
Adani Enterprises Limited v. Commissioner of Central Excise & ST (CESTAT Ahmedabad)
Re-availment of CENVAT credit reversed earlier, where such re-availment is not with malafide intention and is consistent with prevailing judicial precedent in favour of assessee, shall not be considered as irregular
Where CENVAT credit, which was reversed earlier and re-availed suo-moto (after informing jurisdictional authorities) on realizing that such reversals were not required, was paid along with applicable interest on settlement of issue in favour of Revenue by the Hon’ble Supreme Court, such re-availment cannot be said to be made with a malafide intent, as the same was consistent with the prevalent judicial precedents in favour of the assessee. Where there are conflicting judgments and the issue is finally settled by the Supreme Court, penalty should not be imposed in such situations.
Grasim Industries Limited v. CCE, Bangalore II (CESTAT Bangalore)
Software imported from foreign supplier on the basis of customized order to meet specific needs cannot be treated as packaged software and hence cannot be subjected to MRP valuation
Importer declared that software imported is for the industrial or educational or institutional use which are customized on the basis of order placed by these institutions for specific needs. Such software cannot be treated as packaged software because such softwares are developed to meet the specific requirements of a particular customer and they cannot be used by other users. Further, such softwares cannot be put to sale off the shelf as the same has been developed for a particular customer/department for specific requirements. Thus, such software shall surely not be covered under ‘packaged softwares’ and cannot be put to assessment based on MRP.
Shri Sukesh Naithani & M/s Trident Techlabs Private Limited v. The Commissioner of Customs (Import), New Delhi (CESTAT Delhi)
ADVANCE AUTHORITY RULINGS
Supply of goods ex-works or ex-factory basis- whether inter-state supply or intra-state supply
Location of the supplier and place of supply determines whether the supply is an intra-state supply or inter-state supply. In terms of section 10(1) (a) of IGST Act, movement of goods in case of ex-factory sales does not conclude at the factory gate but terminates at the place of destination where the goods are finally destined as per the billing address. Goods are made available by the supplier to the recipient at the factory gate, but this is not the point where the movement of goods terminates as from this point, recipient assumes the responsibility of transportation up to the final place of destination. Where such final destination of the goods is in any other state, the place of supply of such goods shall be considered to be in that state only. Accordingly, such supply shall be treated as inter-state supply since the place of supply and location of the supplier, both are in different states. Accordingly, the supplier in the instant case shall be liable to charge IGST in respect of ex-factory/ ex-works supplies made.
M/s Penna Cement Industries Limited (Telangana AAR)
FOREIGN TRADE POLICY
Increase in duration of validity of MEIS/SEIS scrips and relaxation in last dates for filing application therefor
Validity of duty scrips issued between March 01, 2018 and June 2018 has been extended to September 30, 2020. For SEIS application for FY 2016-17, late cut at 10% shall apply, if application is filed by June 30, 2020. Thereafter, the same shall be time barred. For SEIS application for FY 2017-18, late cut at 5% shall apply, if application is filed by June 30, 2020. Thereafter, late cut at 10% shall apply for application submitted till March 31, 2021. For MEIS applications attracting late cut as on March 01, 2020, period between March 01, 2020 and June 30, 2020 shall not be counted and last date for submission of various categories of applications attracting that late cut and the applicable cuts shall be determined accordingly
Ministry of Commerce & Industry Public Notice 08/2015-2020 dated June 01, 2020
Disclaimer
Information contained herein are only for reference purposes and are based on the information publicly available as on the date of this publication. The author takes no responsibility for its reliability and accuracy. It is advised to take appropriate legal/professional advice before undertaking any business activity or otherwise based on the above. Neither Author nor Yes GST assume no responsibility thereof.
