Customs Broker's license revocation overturned due to disproportionate punishment, time-bar violation.

The CESTAT held that the order of suspension of the appellant's Customs Broker license was passed after the expiry of the prescribed limitation period, violating Regulation 20(2) of CBLR 2013. However, the legality of the suspension order could not be decided as the challenged order was the revocation dated 12.02.2015. The gravity of the alleged offense did not warrant revocation, which is disproportionate punishment. The appellant must have suffered enough financially, acting as a deterrent. Permanent revocation would adversely impact the appellant's family and employees. The appeal was partly allowed, ordering re-issuance of the Customs Broker License subject to procedural requirements, while upholding the forfeiture of the security deposit.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81805

#LegalProcedure #CustomsLaw #AdminLaw #JudicialReview #FairTrial #CustomsBroker #LicenseRevocation - Customs

Tribunal quashes custom duty demand due to lack of evidence for clandestine clearance of goods.

The appellant challenged the demand of customs duty and penalties imposed on the grounds of alleged clandestine clearance of short found goods from their factory premises. The Tribunal held that the Revenue failed to provide corroborative evidence or conduct proper investigation from the transporter and buyer to establish the clandestine removal. Relying solely on the statement of the appellant's director without cross-examination is not sustainable. The burden of proof lies on the Revenue to establish their case beyond doubt with sufficient evidence. As the Revenue failed to discharge this burden effectively, the demand was set aside, and the appeal was allowed.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81806

#TradeDisputes #CustomsLaw #BurdenOfProof #EvidenceRequired #FairTrial - Customs

Customs officer lacked valid reasons to seize dried areca nuts based on mere opinion of their foreign origin.

Interpretation of the phrase "reason to believe" u/s 110 of the Customs Act, which is a crucial safeguard for authorizing officers to conduct searches. The court examined the legal principles governing "reason to believe," emphasizing that it cannot be arbitrary, capricious, or whimsical, and must be based on material evidence. The officer must independently apply their mind and not merely reproduce statutory words mechanically. The reasons must be self-explanatory and cannot be supported by extraneous material. In the present case, the suspected opinion of local traders that the seized dried areca nuts were of foreign origin was deemed unreliable and unacceptable, as their origin could not be conclusively determined by mere visual inspecti.....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81807

#CustomsAct #ReasonToBelieve #JudicialScrutiny #ProceduralSafeguards #TradeDisputes #CustomsLaw - Customs

Tribunal rejects second rectification plea on same grounds as first rejected plea.

Assessee filed second rectification application u/s 254, raising same grounds as first miscellaneous application which was already rejected. Tribunal held that except for certain documents, no evidence was available regarding payment of ESI and EPF within due dates as claimed. Second miscellaneous application filed within six months but on same grounds as first, hence not maintainable as per Smt. Vasantben H. Sheth case. Tribunal reiterated that Assessing Officer shall pass consequential order in compliance with Tribunal's order in Manikandan Vazhukkapara Kumaran case. Tribunal cannot entertain second miscellaneous application on same grounds after rejecting first.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81808

#LegalProcedure #Redundancy #TaxAssessment #RectificationApplication #TribunalOrder - Income Tax

APPEAL FOR REVOCATION GST REG

Is it possible to file an appeal for revocation of GST Reg, after 1 year, from the date of cancellation of GST registration no. - Reply By Sadanand Bulbule - The Reply = Dear Ahmmed ji In terms of Section 107[1] , three months time is allowed from the date of communication of decisions or order to the registered person. And one more month with condonation of delay is allowed under Section 107[4] of the CGST Act . So date of communication of decision or order is the determinant factor. - Reply B... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119326 - GST

IBBI to celebrate its Eighth Annual Day tomorrow

- - - Dated:- 30-9-2024 - Winners of the 5th National Online Quiz on IBC to be felicitated with a merit certificate, medal, and cash prize on the occasion The Insolvency and Bankruptcy Board of India (IBBI) is celebrating its Eighth Annual Day on 1 st October 2024 . The main event to mark the occasion is being organised in New Delhi. Chief Justice (Retd.) Mr Ramalingam Sudhakar, the President of the National Company Law Tribunal, will be the Chief Guest and will deliver a keynote address. Mr. A... ... ...

Source:
https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=27954

Governance in SFBs - Driving Sustainable Growth and Stability (Keynote Address by Shri Swaminathan J, Deputy Governor, Reserve Bank of India - September 27, 2024 - at the Conference of Directors of Small Finance Banks in Bengaluru)

1. Chairpersons and Directors of the Boards of Small Finance Banks; Chief Executive Officers of SFBs; Executive Directors, Chief General Managers and colleagues from the Reserve Bank of India; ladies and gentlemen. A very good morning to all of you. 2. It is an honour to address this distinguished gathering in the inaugural conference of Board of Directors of Small Finance Banks organised by the RBI. As has been mentioned, this conference is in continuation of the Reserve Bank s efforts to reac... ... ...

Source:
https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=27955

Monthly Review of Accounts of Government of India upto August, 2024 (FY2024-25)

- - - Dated:- 30-9-2024 - The Monthly Account of the Government of India upto the month of August, 2024 has been consolidated and reports published. The highlights are given below: - The Government of India has received ₹12,17,178 crore (38.0% of corresponding BE 2024-25 of Total Receipts upto August, 2024 comprising ₹8,73,845 crore Tax Revenue (Net to Centre), ₹3,34,467 crore of Non-Tax Revenue and ₹8,866 crore of Non-Debt Capital Receipts. ₹4,55,717 crore has bee... ... ...

Source:
https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=27956

CBDT extends specified date for filing of various reports of audit for the Assessment Year 2024-25

- - - Dated:- 30-9-2024 - In view of difficulties reported by taxpayers and other stakeholders in filing of audit reports for AY 2024-25 under the Income-tax Act, 1961, the CBDT has extended the specified date for filing of audit reports for AY 2024-25 from 30 th September, 2024 to 07 th October, 2024. CBDT Circular No. 10/2024 in F.No. 225/205/2024-ITA-II dated 29.09.2024 issued. The said Circular is available on www.incometaxindia.gov.in . - ... ... ...

Source:
https://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID=27957

b2b rcm to regular b2b

how to update in GSTR portal for wrong e-invoice made as B2B RCM Instead of regular B2B and updated in GSTR-1 in nov 2023. - Reply By Shilpi Jain - The Reply = Issue a credit note for the old invoice and generate a fresh e-invoice. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = I endorse the views of Ms. Shilphi. ... ... ...

Source:
https://www.taxmanagementindia.com/web/View_discussions_detail.asp?ID=119328 - GST

Export Incentive Scheme Extension with Revisions for Budget Adherence.

The RoDTEP scheme for exports manufactured by DTA Units is extended until 30.09.2025, while for exports by Advance Authorization holders (excluding deemed exports), EOUs, and SEZ Units, it is extended until 31.12.2024. To adhere to the budgetary framework, necessary changes will be made to the scheme benefits, including revisions or deletions in eligible items, rates, value caps, and other measures. New RoDTEP rates based on the committee's recommendations are notified from 10.10.2024 under revised Appendices 4R and 4RE, available on the DGFT portal. For exports between 01.10.2024 and 09.10.2024, existing rates apply. The notification aims to extend the RoDTEP scheme while making adjustments to remain within the approved budget.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81845

#ExportIncentives #RoDTEP #ManufacturingExports #BudgetaryFramework #PolicyUpdates - DGFT

Pandemic chaos allows amnesty compliance delay, HC grants tax relief.

Taxpayer company availed amnesty scheme benefit, deposited tax amount, but failed to communicate timely due to COVID-19 pandemic and consultant's death. HC quashed revenue's order denying amnesty benefit, directed granting full benefit by accepting deposited tax amount as final settlement for the year, considering pandemic situation and limitation extension by Supreme Court order.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81840

#TaxAmnesty #COVID19Impact #RevenueDepartment #JudicialIntervention #TaxpayerRelief #TaxAmnesty - VAT / Sales Tax

Dutiable goods manufacturer failed separate accounting, paid service tax on royalty charges for both activities.

Appellants engaged in manufacturing dutiable goods and providing exempted trading services failed to maintain separate accounts for input services utilized in both activities as mandated u/r 6(2) of CENVAT Credit Rules, 2004 (CCR). They paid service tax on royalty charges to overseas principals for both domestically manufactured and imported bottle closures. Department interpreted royalty as common input service requiring separate accounting and payment u/r 6(3) for exempted trading activity. Appellants discharged amount u/r 6(3) with interest and penalty before show cause notice (SCN). Original authority and Commissioner (Appeals) orders lacked examination of facts and appellants' compliance. Tribunal relied on BHEL-GE case, holding since .....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81841

#CENVATCredit #TaxCompliance #ServiceTax #AccountingSeparation #LegalInterpretation - Central Excise

Improper allocation of service tax credit by ISD leads to legal dispute over eligibility & jurisdiction.

Wrongful transfer of credit attributable to all units by the Input Service Distributor (ISD) exclusively to the respondent, contravening the second proviso to Rule 3(4) of the Cenvat Credit Rules. The tribunal held that the credit of service tax paid on Clearing & Forwarding Agents Services is eligible as it is a post-manufacturing activity not used in or in relation to manufacturing goods. The proviso limiting credit availment does not apply when credit is availed based on invoices issued by ISD. The department lacks jurisdiction to question the correctness of credit distributed by ISD from the recipient merely availing credit based on ISD invoices. Services like advertisement, manpower recruitment, market research are used by all units, a.....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81842

#TaxCreditRules #ServiceTaxDispute #InputCreditRules #LegalJurisdiction #TaxationLaw - Central Excise

Education Cess & SHE Cess Refund Denied under GST Transition Provisions.

Refund of Education Cess and Secondary & Higher Education Cess (SHE Cess) under the transitional provisions of the CGST Act, 2017. The key points are: Cess is a tax levied for a specific purpose, in this case, education. The definition of 'eligible duties and taxes' u/s 140 of the CGST Act excludes cesses, making them ineligible for transitional credit. Unutilized cesses cannot be transitioned through TRAN-1 and shall lapse as per the transitional provisions. Section 11B of the Central Excise Act and Rule 5 of the CENVAT Credit Rules do not provide for refund of such cesses. The Tribunal held that equity or hardship cannot influence fiscal laws without statutory backing. Mere accounting entry of cess credits in the electronic ledger does no.....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81843

#LegalUpdate #TaxLaw #CGST #CessRefund #TransitionalProvisions - Central Excise

Exporters caught forging documents to fraudulently claim rebates; penalties upheld.

The petitioners' rebate claim for export of goods was rejected and penalty imposed u/s 11AC of the Central Excise Act, 1944 read with Rules 25 and 27 of the Central Excise Rules, 2002. During investigation, it was found that the petitioners and co-noticees filed rebate claims with forged documents like shipping bills and Form ARE-I, which is mandatory for claiming rebate. The petitioners did not comply with the prescribed procedure and committed fraud by forging the Forms. The authorities rightly rejected the rebate claim. Regarding the limitation for issuance of the show-cause notice, although the period is five years from the date of knowledge u/s 11A, the authorities issued the notice in 2014 after obtaining the original documents from t.....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81844

#ExportFraud #RebateFraud #DocumentForgery #PenaltyImposed #JudicialReview - Central Excise

Service Tax Double Whammy: When 100% Tax Paid, No More Due under RCM.

Service tax liability cannot be imposed twice on the same transaction. The appellant, as a service recipient, was required to pay 75% of the service tax under the reverse charge mechanism for manpower supply agency services. However, the undisputed fact is that the service provider, M/s. Kalpataru Job Management, had already discharged 100% of the applicable service tax, as reflected in their invoice. Demanding service tax from the appellant would amount to recovering the tax twice, which is impermissible. The CESTAT Bangalore Bench in Kerala Ceramics Ltd vs CCE case held that if the transporter has discharged the service tax liability and provided documentary evidence, the same cannot be demanded from the recipient. Since 100% service tax was paid by the service provider, it cannot be recovered from the appellant. Consequently, the impugned order is set aside, and the appeal is allowed.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81846

#ServiceTax #ReverseCharge #ManpowerSupply #TaxCompliance #Fairplay - Service Tax

Assets distribution from preferential/undervalued transactions allowed.

The Tribunal granted permission to the Applicant to distribute the unsold assets, being the amount recoverable from the corporate debtor and its erstwhile management under the action initiated against their previous preferential, undervalued and fraudulent transactions among the Respondents. In the 5th SCC meeting, the Liquidator proposed assigning the right to file PUFE proceedings for avoidance/recovery of amounts to VS & B Containers LLC, which was accepted by a 66.82% majority vote. The SCC resolved that if any amounts are recovered, VS & B Containers LLC shall share the recovered amounts with other Shareholders as per their claim sharing ratio. The Tribunal ordered that the right to recover from PUFE proceedings shall be assigned to VS & B Containers LLC, and any amount recovered shall be shared accordingly. The Application was disposed of.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81847

#CorporateInsolvency #Recovery #Liquidation #CommerceLaw #Restructuring - IBC

Tribunal rejects intervention plea by unit holders, upholds creditors' rights at pre-admission stage of insolvency case.

The Tribunal dismissed the application filed by companies holding units in the Corporate Debtor's project, seeking to intervene and proposing a scheme of compromise and arrangement u/s 230 of the Companies Act, 2013. The Tribunal held that there are no provisions in the Insolvency and Bankruptcy Code (IBC) for intervention by a third party at the pre-admission stage. The Tribunal's role is limited to ascertaining the existence of financial debt and its default on an application filed u/s 7 of the IBC. The Financial Creditors had already opposed the issuance of notice in the Intervention Petitions and pressed for dismissal, arguing that the IBC does not allow intervention at the pre-admission stage. The Tribunal concluded that entertaining t.....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81848

#CorporateInsolvency #InsolvencyCode #LegalDispute #CompanyLaw #JudicialPrecedent - Companies Law

Customs classification dispute: Friction materials for brakes classified under CTH 6813, not CTH 3824.

The case pertains to the classification of imported goods such as binding material, parts for brake, disc brake pads, tool for mould, etc. under the Customs Tariff Headings (CTH) 38249090/38247900 or CTH 68138900. The key points are: The imported materials are more appropriately classifiable under Chapter Heading 6813 as friction material based on their composition and usage in brake pad manufacturing. The Material Safety Data Sheet also identifies them as friction material. Friction materials not mounted for brakes or clutches fall under CTH 6813. However, when mounted, including friction material fixed to a metal plate for disc brakes, they are classified as parts of the machines or vehicles for which they are designed. The imported produ.....

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81849

#TradeDisputes #CustomsTariffs #ImportClassification #FrictionMaterials #AutomotiveParts - Customs

Duty-free goods diverted to local market, appellant penalized without sufficient evidence of knowledge.

Customs Act, 1962 - Penalty levied on appellant as co-noticee for principal violator's diversion of duty-free imported goods under DEEC scheme to local market without fulfilling export obligation. Appellant's relationship with principal violator not sufficient evidence of knowledge about modus operandi. Appellant severed ties with partnership firm after payment issue. Commissioner's order imposing penalty set aside by Appellate Tribunal due to lack of corroborative evidence against appellant.

Source:
https://www.taxmanagementindia.com/web/tmi_highlights_details.asp?id=81850

#CustomsAct #ImportExportViolation #PenaltyOrder #PartnershipDispute #TribunalJudgment #CustomsDuty - Customs