Monthly Newsletter June, 2024

GST Updates

Instructions
Guidelines for Initiation of Recovery Proceedings

According to Sections 78 and 79, the standard time for initiating recovery proceedings from taxpayers is three months from the date of service of the demand order. However, in exceptional circumstances, approval for early initiation of recovery proceedings before the standard three-month period may be granted. Such approval should not be given mechanically; the proper officer must clearly provide specific reasons for requesting early payment from the taxpayer.

Source: CBIC 20016/9/2024 GST dated 30.05.2024


Advance Rulings

Shelby Ltd (Gujarat, AAAR)
The appellant-assessee did not declare/mis-declared the initiation of proceedings by the department, evidenced by the issuance of GST DRC01A. Hence, the Authority for Advance Ruling’s invocation of Section 104 and declaring the advance ruling void ab initio is legal.

Nokia Solutions and Network Pvt. Ltd. (Mumbai, AAR)
CBIC Circular No. 08/2023 dated 13-3-2023 clarified that Optical Line Terminals (OLT) are a “Combination of one or more of Packet Optical Transport Product or Switch” and are excluded under para (c) of S. No. 20 of Notification No 57/2017-Cus dated 30.06.2017. Therefore, the benefit of a concessional 10% BCD rate is not available for OLT imports.

Nokia Solutions and Network Pvt. Ltd. (New Delhi, AAR)
Advance ruling is not warranted when the classification of goods has already been decided by the Tribunal and attained finality subsequent to a Supreme Court judgment.

DRS Dilip Roadlines Ltd. (Telangana, AAR)
Services provided by the assessee, a Goods Transport Agency (GTA), including packing, loading, unloading, and unpacking, qualify as GTA services under Sl 9(iii) of Notification 11/2017-Central Tax (Rate) as long as they are part of the same agreement for transporting the same goods, but not if they pertain to different goods.


Court Rulings

Mid Town Associates vs Additional Commissioner Grade 2 (Allahabad HC)
The court granted relief to a petitioner penalized for transporting goods without an E-Way bill, finding that the petitioner complied with statutory requirements before interception and the penalty violated natural justice principles due to the lack of a hearing.

TVL.SRI Rahavether Industries v. UOI (Madras HC)
The court set aside an impugned order under Section 73 of the CGST Act for availing excess input tax credit due to a mismatch between GSTR-3B and GSTR-2B/2A returns, as it was a non-speaking order that did not consider the assessee’s reply and lacked proper reasoning.

NAM Estates Pvt. Ltd. v. Joint Commissioner of Commercial Taxes (Karnataka HC)
Where the assessee had paid an advance to its vendor for goods and the vendor did not supply the goods but had paid the GST amount to the authority, there was no GST liability on the assessee or the vendor, and the GST amount was to be refunded to the assessee.

Ashish Kumar Sharma Vs Deputy Commissioner, State Tax (Calcutta HC)
The court found that imposing a 200% penalty was harsh when the appellant’s vehicle broke down and the E-Way bill had expired by the date of interception, reducing the penalty to Rs. 1 lakh.


Custom Updates

Tariff Notifications

35/2024
The notification updates the tariff value for crude palm oil, soybean oil, brass scrap, gold, silver, and areca nuts, effective from 16th May 2024.


Anti-Dumping Duty

7/2024
Continuation of anti-dumping duties on imports of cast aluminum alloy wheels from China for five years unless revoked earlier, to protect Indian manufacturers from unfair pricing and competition.

8/2024
Imposition of anti-dumping duty on imports of “Pentaerythritol” for five years from China PR, Saudi Arabia, and Taiwan.


Circulars

Verification of Authenticity and Genuineness of Certificate of Origin (COO) Issued by UAE Authority

The CBIC has issued instructions to Customs formations that UAE has implemented additional security features to the certificate of origin in the form of a password for verification and genuineness. The format remains the same except for a QR code and a password in the new system’s COO, bearing a unique sequential serial number.

Source: INSTRUCTION NO. 11/2024-CUSTOMS, DATED 1-5-2024

Amendments to All Industry Rates of Duty Drawbacks

The government has made amendments in the All Industry Rates (AIRs) of Duty Drawback, clarifying “counts” in Chapter 52 as “counts in New English,” enhancing duty for certain marine products, bags, and other items, rationalizing the cap of Duty Drawback for “Golf Gloves made of leather in combination with textile materials,” and creating new tariff items for better product differentiation.

Source: CIRCULAR NO. 4/2024-CUSTOMS, DATED 7-5-2024

Amendment of SION and Permissible Wastages for Export of Jewellery

The modification of wastage permissible and Standard Input Output Norms for gold/platinum/silver content in export items has been kept in abeyance. Industry stakeholders are invited to submit further corroborative data within the next month.

Source: PUBLIC NOTICE NO. 06/2024, DATED 28.05.2024

Modification Made in SION E-125 for Export of Shea Stearine

Changes have been made in SION E-125 under the foreign trade policy for the export of Shea Stearine, with a new condition that for every 1% increase in oil content beyond 46%, the permitted import quantity decreases proportionately. This SION is valid until 31.03.2027.

Source: PUBLIC NOTICE NO. 07/2024-25, DATED 30.05.2024


FTP Updates

Amendment to FTP 2023

The Central Government has restricted the import of all electronics and IT Goods notified under the Electronics and IT Goods (Requirements of Compulsory Registration) Order, 2021, making them importable only against a restricted import authorization. The import of unregistered/non-compliant notified products is prohibited.

Source: Notification no. 13/2024 dated 20.05.2024

Share
Disclaimer & Confirmation As per the rules of the Bar Council of India, we are not permitted to solicit work and advertise. By clicking on “I Agree” below, the user acknowledges and confirms the following:
  1. No Solicitation or Advertisement: There has been no advertisement, personal communication, solicitation, invitation, or inducement of any sort whatsoever from us or any of our members to solicit any work through this website.
  2. User-Initiated Contact: The user wishes to gain more information about BSA LAW for their own informational use.
  3. Voluntary Access: The information provided on this website is made available to the user upon their specific request. Any information obtained or materials downloaded from this website are at the user’s volition, and the transmission, receipt, or use of this site does not create a lawyer-client relationship.
  4. Informational Purposes Only: The information on this website is provided solely for informational purposes. It should not be interpreted as soliciting or advertising.
  5. Liability Disclaimer: BSA LAW is not liable for any consequences arising from any action taken by the user relying on the material/information provided on this website. Users with legal issues must seek independent legal advice.
By clicking "I Agree," you acknowledge that you have read and understood this disclaimer and agree to its terms.