NOTIFICATIONS
Effective date of provision of Section 100 of Finance (No. 2) Act, 2019 notified
September 01, 2020 has been appointed as the date on which provisions of Section 100 of the Finance (No. 2) Act, 2019, shall come in force. Hence, from September 01, 2020 and onwards, interest, in case of delayed payment of tax, under section 50 of the CGST Act, 2017 shall be payable on net cash liability after setting off of available input tax credit. However, this shall not apply where the returns are furnished after commencement of proceedings under section 73 or 74 of the CGST Act, 2017.
Notification No. 63/2020-Central Tax dated August 25, 2020
COURT RULINGS
Opportunity of being heard to be given before issuance of order confirming demand
Where taxpayer failed to respond to the summons issued under section 70 of the CGST Act and it was informed to the Department that the taxpayer has been advised not to travel and stay at home, being aged at 68 years, it was held that one opportunity of being heard should be given to the taxpayer in this case and the order was accordingly set aside.
M/s Formative Tex Fab v. State of Gujarat (Gujarat HC)
Challenge to constitutional validity of anti-profiteering provisions and Rules 126, 127 and 133 of the CGST Rules.
Constitutional validity of anti-profiteering provisions contained under section 171 and rules 126, 127 and 133 has been challenged in Hon’ble Delhi HC. Matter has been listed for November 03, 2020.
M/s Pyramid Infratech Private Limited & Ors. v. Union of India & Ors. (Delhi HC)
Entitlement of taxpayer to seek copies of seized documents in connection with ongoing investigations
It is held that taxpayer is entitled to seek copies of documents seized from their premises. In the event of any notice being issued in connection with ongoing investigation, where a reference has been made of the document seized, the taxpayer shall be allowed to take copies of those documents relied upon in the notice proceedings, before any further action.
Rajive & Co. v. Assistant Commissioner (Kerala HC)
Effective communication of order for best judgment assessment
In terms of sections 169(c) and 169(d) of CGST Act, service of any communication to the email address provided by the Assessee at the time of registration and making such communication available on department portal is to be treated as effective communication under the law. Where the returns were not filed within 30 days of uploading of the best judgement assessment order on the portal of the department but were filed within 30 days from the date of receipt of demand orders following the assessment order, such orders of assessments are not liable to be withdrawn and accordingly, petition is hereby dismissed.
K.U. Niyas Prop. M/s Gold Wood Enterprises v. The Assistant Commissioner (Kerala HC)
Interest under section 50 of the CGST Act to be charged on net cash liability
In terms of GST Council decision in its 39th meeting held on March 14, 2020, as it was decided to levy interest for delayed payment of tax on the net cash liability w.e.f. July 01, 2017 retrospectively after setting off of available input tax credit, department is directed to dispose of the representation for not charging the interest on availed ITC and drop the proceedings.
Prasanna Kumar Bisoi v. Union of India (Kerala HC)
Validity of detention of goods on the ground of mentioning different status of registration of consignee on e-way bill and invoice
Detention of goods cannot be justified merely on the grounds that registration status of consignee, in e-way bill, was mentioned as un-registered but the invoice provided for its GSTIN. Mere mentioning of consignee as un-registered in e-way bill cannot be of any significance where the invoice accompanying the goods mentions the GSTIN of the consignee. Further, mentioning of tax applicable on delivery challan was by mistake as it is evident that when goods are stock transferred, there is no requirement of payment of tax. Hence, detention order was set aside and appeal was allowed in favour of the Assessee.
Abco Trades Private Limited v. Assistant State Tax officer & Ors. (Kerala HC)
CESTAT RULINGS
Availment of credit on capital goods on strength of invoices which were in the name of the transferor company
Where all assets and liabilities were transferred to the transferee company in the scheme of an amalgamation, the transferee company is entitled to take the credit pertaining to the transferor company. Credit cannot be denied merely on the ground, that the transferee should have approached the authority and obtained the permission for availing the CENVAT, which it did not do. Demand has been set aside and appeal is allowed in Assessee favor.
Farmax India Limited v. Commissioner of Customs, Central Excise and Service Tax, Hyderabad-IV (CESTAT Hyderabad)
GST APPELLATE AUTHORITY RULINGS
Rejection of refund claim under inverted duty structure for non-compliance of conditions as laid down by relevant notifications
The contention of appellant that, in compliance to the conditions laid down by the notifications 40/2017 and 41/2017, both dated October 23, 2017, copy of purchase orders, shipping bills or bill of lading were submitted with the range officer, cannot be accepted. The burden to prove, on which date and how the related documents were supplied to the concerned officer, is on the appellant. Unless, there is dated acknowledgment duly stamped by the Department, it cannot be considered that such documents have actually been submitted and conditions prescribed under relevant notifications have been complied with. Hence, appeal was dismissed.
M/s Akash Granites v. the Assistant Commissioner (GSTAA)
NATIONAL ANTI-PROFITEERING AUTHORITY RULINGS
Imposition of penalty under section 122(1) of the CGST Act, 2017 on violations of anti-profiteering provisions
As no penalty provisions were in existence between period from July 01, 2017 to August 31, 2018, when the violations to provisions of section 171(1) were made, penalty as provided under section 171(3A) cannot be imposed retrospectively.
Sh. Ashok Khatri & Director General of Anti-profiteering v. M/s S3 Infrareality Private Limited
OTHERS
CBIC clarifies regarding interest on delayed payment of tax
In terms of Notification No. 63/2020-Central Tax dated August 25, 2020, proviso inserted by Finance (No.2) Act, 2019, regarding interest applicability on net cash liability, shall be effective from September 01, 2020. However, it has been clarified by CBIC vide its press release that for the period prior to September 01, 2020, no recoveries shall be made for interest on gross tax liability for the period prior to September 01, 2020.
CBIC Press release dated August 26, 2020
CBIC issues revised guidelines for conduct of personal hearing in virtual mode under GST laws, Customs laws and Excise laws
Revised guidelines for conduct of personal hearing in virtual mode under GST, Customs and Excise laws have been issued by CBIC. Further, it has now been decided to make it mandatory for various authorities like Commissioner (Appeals), original adjudicating authorities and compounding authorities to conduct personal hearings, in respect of proceedings under Customs, Excise, Service Tax laws through video conferencing. This facility hall also be extended to CGST Act and IGST Act.
CBIC Instruction dated August 21, 2020
Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Although care has been taken to ensure the accuracy, completeness and reliability of the information provided. Neither Author nor Yes GST (collectively referred as we) assume no responsibility thereof. The user of the information agrees that the information is not a professional advice and is subject to change without notice. We shall not be liable for any direct, indirect, special or incidental damage resulting from, arising out of or in connection with the use of the information in any circumstances.
