Pre-GST Law

Central Excise, Service Tax


10.11.2021 : Procedures for refund of excise duty on purchase of petrol/diesel/fuel oil by Diplomatic Missions and their officers for their official /personal use – regarding.

CBIC, Central Excise wing has issued an instruction regarding refund of excise duty on purchase of petrol/diesel/fuel oil by Diplomatic missions and their officers for their official /personal use. Refer F. No. 116/40/2021-CX-3 dated 10.11.2021. Read more

09.08.2021 :  Show cause notice have been issued after more than 32 months from the last date when the return was due from the financial year ending 31.03.2010. Accordingly, it is held that the show cause notice is bad for invoking the extended period of limitation.

In the course of audit for the period April, 2008 to September, 2011 it was observed that appellant had taken Service Tax credit wrongly on input service – ‘Collateral Management charges’ which is a service in relation to processing of loans / advances, as is evident from the invoices. It appeared to Revenue that such input service is exclusively used for providing exempt services. Hence, cenvat credit is not available on this service, as per the provision of Rule 6(1) read with Rule 6(5) and 6(3) of the Cenvat Credit Rules. It is further alleged that these facts came to the knowledge of the Department in the course of audit or else, the same would have gone un-noticed and accordingly the show cause notice dated 23.10.2013 was issued, invoking the extended period of limitation under the proviso to Section 73(1) of the Finance Act.

Having considered the rival contentions, CESTAT found that giving of loans is not a service, rather it is an activity of the Bank in which money in real terms which is akin to goods, is given to borrower. Further, for the reason that interest earned by the Bank on loans is not liable to tax, the show cause notice alleged that giving of loan is an exempt service. Further, I find that the show cause notice have been issued after more than 32 months from the last date when the return was due from the financial year ending 31.03.2010. Accordingly, I hold that the show cause notice is bad for invoking the extended period of limitation. There is no suppression of facts or contumacious conduct on the part of the appellant.

26.07.2021 : whether the services rendered by the appellant being transporter of timber/firewood for forest Department of Government of Madhya Pradesh, is taxable as G.T.A.

CESTAT, New Delhi vide Order No. 51679 /2021 dated 26.07. 2021 ruled that the carting Challan in this case is only for internal control of forest department. Such carting Challan is not equivalent to a consignment note which is issued by the transporter. The consignment note is a negotiable instrument and the transporter is bound to deliver the goods to bonafide holder of title, as mentioned in the consignment note. Such element of ‘consignment note’ are absent in the ‘carting Challan’. Thus, it is held that carting Challan is not equivalent to consignment note. Accordingly, the appellant Mr. Mukesh Kumar Jaiswal has not rendered the services as per the definition of GTA under the Finance Act and therefore the appellant is not liable to pay service tax. Read more

23.07.2021 : Refund in cash of unutilised cenvat credit on closure of the unit is entitled to the Appellant

M/s Nichiplast India Pvt. Ltd v. Principal Commissioner CGST decided on 23.07.2021. The Appellant closed down their manufacturing activities and surrendered their registration certificate on June 28, 2017. Refund was rejected on the ground that there is no provision under Central Excise Act/ Rules to sanction refund in case of unutilised Cenvat Credit on closure of the unit. Aggrieved by the Order of the Adjudicating Authority the Appellant filed Appeal with Commissioner (Appeals) Cental Excise & CGST, Delhi. The appeal order was passed upholding the decision of the earlier order. The Appellant filed appeal with Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi. CESTAT has relied on the rulings of Karnataka High Court in the case of The Union of India vs Slovak India Trading Company decided on 07.07.2006 and hold that the appellant is entitled to refund of the amount of cenvat credit lying in their cenvat credit account on closure of businessRead more

20.07.2021 Refund should not be rejected only for a procedure lapse

M/s Origin Learning Solutions Pvt. Ltd. vs Commissioner of Service Tax decided on 20.07.2021. The appellant has not furnished the details of Service Tax paid on import of service under Reverse charge mechanism in ST-3 return for July 2013 to September 2013 and this was the only ground for rejection of refund of the input service used for export of service. Held that non mentioning the credit availed in ST-3 return is only a procedural lapse which can be condoned and appeal be allowed.

VAT / CST


17.12.2021 : CAG: Rs 1,400 cr loss in 2,805 tax cases

The Comptroller and Auditor General (CAG) has revealed 2,805 cases of under assessment/ short levy/ loss of revenue, amounting to Rs 1,422.55 crore in a test check of records pertaining to sales tax, Value Added Tax (VAT), excise duty and stamp duty during 2019-20. The CAG’s report was tabled before the Haryana Legislative Assembly today. Read more

01.12.2021 : Punjab exempts 1.5 lakh cases of traders from Form ‘C’ assessment

In a major reprieve to traders ahead of the assembly polls, the Punjab Cabinet on Wednesday decided to exempt about 1.50 lakh cases from assessment related to cases of ‘C’ form from 2014-15 to 2017-18. The decision would mean that about 8,500 would now be assessed under this category every year. “This trader-friendly decision would cost Rs 200 crore to the state exchequer,” an official statement said. Read more

10.11.2021 : Value of taxable turnover cannot include the value of goods incorporated in the works contract before the agreement executed with the intended buyer

Removal of Difficulty Order No. 63/GST-2 dated 10.11.2021 is published by Excise and Taxation Department of Haryana Government. For the removal of difficulties, it is hereby clarified that as per the clause (i) of sub-rule (7) of rule 25 of the Haryana Value Added Tax Rules, 2003, for determining the taxable turnover of sale, the cost of material and other labour/ services and like charges incurred in the execution of works contract before entering into the agreement with the intended purchaser, shall also be reduced besides the already provided deductions from the total value of agreement. This Order shall come into force with effect from the 17th May, 2010. Read more

25.08.2021 : Puducherry government said the territorial administration has cut VAT on petrol by 3%.

The Puducherry government today said the territorial administration has cut value-added tax (VAT) on petrol by 3%. The decision on the reduction was taken by the Puducherry Chief Minister N Rangasamy at a meeting of the territorial cabinet earlier today and was approved by Lieutenant Governor Tamilisai Soundararajan.

Source : Livemint 25.08.2021.

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