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Adjudication is required with respect to the disputed issue of Interest: Hon’ble Madras High Court
In SR & Sons v. Assistant Commissioner, CBIC, W.P. No(s). 15306 and 15307 of 2021 And W.M.P. No. 16193 of 2021, the Hon’ble HC held that the authorities have to decide the disputed issue of interest while rejecting the refund claim in light of the Circular No. 94/13/2019-GST dtd. 29.03.2019.
No requirement for E-way Bill for movement of ‘used personal effects’: Kerala High Court
In Assistant State Tax Officer (Intelligence), Alappuzha v. VST and Sons (P.) Ltd. W.A. No. 914 of 2021, department challenged the order passed by the Hon’ble Single Judge Bench. Hon’ble Division relied upon KUN Motor Co. Pvt. v. The Asst. State Tax Officer Kerala State GST Department and Ors., 2019 (60) GSTR 144 (KER), where it was held that used vehicles, even if they have run only negligible distances, are to be categorized as ‘used personal effects’. In the present case, the new vehicle had in fact run 43 Kms. Thus, if the vehicle is used for personal effect then there is no requirement of E-way Bill.
One Tax Period and One Dispute, there to be single adjudication order: Hon’ble Allahabad High Court
In M/s V.S. Enterprises v. State of U.P. and 2 Ors., Writ Tax No.-414 of 2021. The petitioner company challenged three adjudication orders on account of the fact that for one tax period and for one dispute, there should be only a single adjudication order. Hon’ble HC set aside all three adjudication orders and remanded the matter back so that proceeding may be completed upon the notice which covered the entire period.
18% GST on the supply of Tertiary Treated Water: Advance Ruling, Maharashtra
In Re: M/S. Nagpur Waste Water Management Pvt. Ltd., GST-ARA-65/2020-21/21-22/B-35 dated 27.07.2021, Advance Ruling Authority held that ‘Tertiary Treated Water’, is purified water which is sold to Maharashtra State Electricity Generating Co. Ltd. for its further industrial use and falls under Entry No. 24 of Notification No. 01/2017 – CT (Rate) dtd. 28.06.2017 and will leviable to 18% GST
Writ Petition against Show Cause Notice: Hon’ble Madras High Court
In Maya Appliances Pvt. Ltd. v. Assistant Commissioner and Ors., W.P. No. 15390 of 2021 and W.M.P. No. 16279 of 2021, Hon’ble HC restrained itself in entertaining a writ petition against the show cause notice. Hon’ble HC held that writ petition may only be entertained if it is established that the authority issued the SCN has no jurisdiction to issue such notice under the statute or rules or allegation of malafides are raised against official concerned. Hon’ble Court cannot entertain the point of jurisdiction coupled with the facts. It is always preferable that the adjudication on merits be conducted by the competent authorities and thereafter, by the appellate authority, who is the final fact-finding authority. Writ Petition dismissed.
Interpretation of Rule 86A: Hon’ble Allahabad High Court
In M/S. RM Dairy Products v. State of U.P. and 3 Ors., Writ Tax No.-434 of 2021. Department alleged that the invoices are issued by a registered person who has been found non-existent. Hon’ble HC held that Rule 86A(1) limits the exercise of power (by the authorized officer), to the amount that would be sufficient to cover the input tax that, according to the revenue, had either been fraudulently availed or is ineligible as per the sub-clauses. And in the instant case, the ‘reason to believe’ is based on material with the competent authority indicating non-existence of the selling dealer, hence upholding the blocking of ITC. HC granted some relief to the petitioner by allowing the utilization of credit that may arise over and above the blocked credit (amount). Writ Petition dismissed.
Substitution of the new section/rule of Annual Return (S. 44 and R. 80) shall come into force w.e.f. 01.08.2021
Vide Notification No. 29/2021 – Central Tax dated 30.07.2021, CBIC notified that the provisions of sections 110 and 111 of the Finance Act, 2021 shall come into force w.e.f. 01.08.2021. Section 110 of the Finance Act is regarding the omission of Section 35(5) of the CGST Act which states that every registered person shall get his accounts audited. Section 111 of the Finance Act is the new substituted Annual Return section. CBIC also substituted Rule 80 (Annual Return Rules) and amended GST Form 9 & GST Form 9C vide Notification No. 30/2021 – Central Tax dated 30.07.2021.
Exemption of filing Annual Return for FY 2020-21 for aggregate turnover up to 2 Cr
In addition to the above, CBIC notified the exemption with regards to the registered person other than an Input Service Distributor, a person paying tax under section 51 or section 52, a casual taxable person and a non-resident taxable person whose aggregate turnover in the financial year 2020-21 is up to two crore rupees, from filing the annual return for the said financial year, vide Notification No. 30/2021 – Central Tax dated 30.07.2021.
Instructions regarding filing an appeal before CESTAT beyond limitation and covered under order dated 27.04.2021: CESTAT
In Office Memorandum dated 26.07.2021 instructed as follows
For Registry: Registry should strictly adhere to the Hon’ble Supreme Court’s order dated 27.04.2021 in Misc. Application No. 665/2021 in SMW(C) No. 3/2020 and should not insist for a delay condonation application.
For Appellant: Make a statement in the ‘verification’ and ‘date of receipt of impugned order column’ regarding the applicability of Hon’ble Supreme Court’s order dated 27.04.2021.
Lifetime validity of licences/registrations: CBIC
A Circular No. 17/2021-Customs dated 23.07.2021 issued by CBIC stating that Board has decided to abolish renewals of Licence/Registration in Customs Brokers Licensing Regulations, 2021 and Sea Cargo Manifest and Transhipment Regulations, 2018 and to provide lifetime validity of the licenses/registrations. This is done to reduce the compliance burden for citizens and business activities.
Lifetime validity of licences brought via NN. 62/2021-Customs (N.T.) dated 23.07.2021 and Lifetime validity of registration brought via NN. 61/2021-Customs (N.T.) dated 23.07.2021.
The author may be reached at abhishek@gstivy.in*