RATIO OF THE LATEST JUDGEMENT
Anand Steel Vs Union of India and Others (W.P. No 2164 of 2024) (Madhya Pradesh High Court)
The Hon’ble High Court in present facts of the case have held that allowing a taxpayer to file returns with payment of late fees and then disallowing ITC, due to the return was filed late, is like double whammy. Further, it was held that the payment of late fee u/s 47 as well as payment of interest u/s 50, the treasury has been suitably compensated for the postponement of the tax. Payment of late fees and interest are already there as deterrent for the taxpayers forcing them to be disciplined. Under such circumstances, saddling with double payment of tax by way of Section 16(4) was held to be arbitrary and capricious.
Cargo Care International Vs Commissioner of Customs (CUS.APPEAL NO. 8 OF 2024) (Kerala High Court)
The Hon’ble High Court while dismissing appeal have observed that reading of Regulation 10(n) of Customs Brokers Licensing Regulations, 2018 provides that it is the solemn obligation of the Customs Broker to verify the details of the exporter. As a matter of fact, there were other instances also wherein proceedings were initiated against the appellant for revocation of the licence on violation of the Regulations. Therefore, the appellant was a habitual offender of the violation of Regulation 10 of the Customs Brokers Licensing Regulations, 2018 and consequently the penal action against him was held to be valid.
MAG Filters & Equipments Private Limited Versus Commissioner of CGST Audit Gurugram (CWP-33348-2024) (Punjab & Haryana High Court)
The Hon’ble High Court held that the petitioner, who had previously undergone proceedings under Section 73 of the CGST Act, can be subjected to proceedings under Section 65. The Hon’ble High Court further observed that since tax evasion is detected, the Department is entitled to initiate separate proceedings under Section 74 of the CGST Act, independent of any prior actions under Section 73. Therefore, the Court declined to interfere with the ongoing audit proceedings and hence the writ was dismissed.
VOS Technologies Private Limited Vs Principal Additional Director General, (W.P.(C) 4831/2021) (Delhi High Court)
The petition was filed to quash show cause notices (SCNs) and adjudication proceedings under the Customs Act, 1962, Finance Act, 1994, and the Central Goods and Services Tax Act, 2017, citing inordinate delays in the resolution of the proceedings. The petitioners argued that the delays, sometimes spanning decades, were due to the improper use of the “call book” mechanism, which was intended for cases requiring resolution of legal or procedural issues by higher authorities but was misapplied, resulting in prolonged uncertainty. Despite the 2018 amendments to Section 28 of the Customs Act, which mandate the completion of adjudication within specified timelines, the petitioners highlighted cases where SCNs issued as far back as 2006 remained unresolved in 2024. The Court examined the statutory obligation of the authorities to conclude adjudication within a reasonable time and found that the respondents failed to establish valid reasons for the delays. The Court criticized the repeated misuse of the call book procedure, noting that it was not justified and led to unnecessary delays. The respondents were found to have neglected their statutory duty to resolve matters expeditiously, and their failure to act within the prescribed timeframes violated the petitioners’ right to timely adjudication. Finally, the Court quashed the show cause notices, emphasizing the need for authorities to act swiftly and in accordance with the legislative mandate.
NEWS AND UPDATE: GST PORTAL
Important advisory on GSTR 2B and IMS- 16th November 2024
Some taxpayers have reported that their GSTR-2B for October 2024 was not generated on November 14, 2024. The issue may arise in the following scenarios:
- QRMP Scheme: Taxpayers under the Quarterly Return Monthly Payment (QRMP) scheme will not have GSTR-2B generated for the first two months of the quarter. For example, quarterly filers for Oct-Dec 2024 will only receive their GSTR-2B for December, not for October or November.
Pending GSTR-3B Filing: If a taxpayer has not filed their previous period’s GSTR-3B, GSTR-2B will not be generated. For instance, if GSTR-3B for September 2024 is pending, the GSTR-2B for October 2024 will not be available until the September return is filed. Once filed, the taxpayer can generate their GSTR-2B by selecting the “Compute GSTR-2B (OCT 2024)” option in the IMS dashboard.
Commissioner of Central Excise, Selam Versus Madhan Agro Industries (India) Private Limited, Civil Appeal No. 1766 of 2009 and No. 6703-6710 of 2009 Order dated 18th December 2024 (Supreme Court)
The Supreme Court’s three-judge bench of Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and R Mahadevan settles a 15-year-old dispute and rules that coconut oil sold in small packages will be classified as edible oil and subjected to 5% GST instead of 18% GST. This gives relief to coconut hair oil manufacturers and sellers. The court, however, clarified that if coconut oil is packaged in small bottles and labelled as hair oil, it should be classified as hair oil under the Central Excise Tariff Act, 1985.The issue for consideration in the appeals filed by the revenue department was whether pure coconut oil, packaged and sold in small quantities ranging from 5 ml to 2 litres, would be classifiable as “Edible oil” under Heading 1513, titled Coconut (Copra) oil, etc., in Section III-Chapter 15, or as “Hair oil” under Heading 3305, titled Preparations for use on the hair, in Section VI-Chapter 33 of the First Schedule to the Central Excise Tariff Act, 1985.
The Supreme Court ruled that the argument of the revenue department that the fact that edible coconut oil marketed by the respondents could also be used as hair oil is therefore not sufficient to classify the same under Heading 3305.The appellant, which made 100% coconut oil in containers of up to 2 litres under the “Shanthi” brand, had challenged the show-cause notices of the Central Excise authorities proposing to levy duty treating the coconut oil sold during April 1, 2005 to August 31, 2007 as “hair oil”.
Comments: The judgment underscores the importance of clear product packaging and marketing strategies to navigate dual-use classifications effectively. By doing so, it sets a significant precedent for fairer tax treatment of products with overlapping uses, promoting broader market penetration, consumer affordability, and brand loyalty. This ripple effect may prompt the revenue department to revise classification criteria and enforce stricter guidelines to mitigate potential losses for future. The decision emphasizes the need for a balanced tax framework that protects revenue while accommodating market realities and supporting industry growth
AMENDMENTS IN UPGST Act: |
The State Government of Uttar Pradesh have issued THE UTTAR PRADESH GOODS AND SERVICE TAX (SECOND AMENDMENT) ORDINANCE, 2024 (U.P. Ordinance No. 22 of 2024) vide Notification No. 401 (2)/LXXIX-V-1-2024-2-KA-21-2024 dated Lucknow, December 10, 2024. This ordinance has been issued to incorporate amendments in UPGST Act, these amendments were already made in CGST Act as per the decision of GST Council with the aim that both the UPGST Act and the CGST Act should have similar provisions of law. These amendments have already been analysed and discussed in the public domain.
Advisory dated 18/12/2024 on Entry of RR No./eT-RRs in EWB System Following EWB-FOIS Integration -Guidance for Correct Entry of RR No./eT-RRs After Integration of E-Way Bill (EWB) with Indian Railways’ Freight Operation Information System (FOIS) This advisory is issued to inform that the Freight Operation Information System (FOIS) of Indian Railways has now been integrated with the E-Way Bill (EWB) system through Application Programming Interfaces (APIs). Given this integration, it is crucial to follow the proper procedure when entering RR No. (Railway Receipt Number)/eT-RRs into the EWB system to prevent inconsistencies or mismatches. 1. Applicability of RR No./eT-RRs in EWB System: Taxpayers transporting goods via the Indian Railways FOIS must ensure the accurate entry of RR No./eT-RRs into the EWB system. A standardized format for entering these details has been established to ensure consistency and accuracy. 2. Updating Part-B of EWB for Rail Transport: a) Suppliers with an existing E-Way Bill (EWB) for goods transported from the factory to the railway station, and who are continuing the journey by rail under the FOIS, should: i. Update Part-B of the E-Way Bill using the “Multi-Transport Mode” option on the EWB portal. ii. Select “Rail” as the mode of transport. |
After selecting this, the system will prompt for the RR No./eT-RRs entry.
3. RR No./eT-RRs Format for FOIS: For goods transported via the Freight Operations Information System (FOIS), the RR number must be entered in the following format:For example, if the goods are dispatched from station SJWT and the RR number is 123456789, it should be entered as FSJWT123456789. |
Format: F<FromStationCode><RR No.> |
4. Validation of EWB and RR No./eT-RRs: a) The system will validate the entry against the data received from FOIS. b) If there is a mismatch or the RR No./eT-RRs is not found in the database, an alert will be triggered. 5. Importance of Accurate Entry: Correctly entering the RR number/eT-RRs is essential for the smooth tracking and verification of goods transported via Indian Railways. Accurate information also helps facilitate the validation process and prevents delays or complications. |
Note: For more details and exact content of the advisory, it is advisable to kindly go through the GST Portal, -News and Update section. |
Advisory Dated 17/12/2024 on Updates to E-Way Bill and E-Invoice Systems – Effective from January 1, 2025 It is pleased to inform that the National Informatics Centre (NIC) will launch updated versions of the E-Way Bill and E-Invoice Systems starting from January 1, 2025. These updates are designed to strengthen portal security, in accordance with best practices and government directives. 1. Multi-Factor Authentication (MFA): A significant update is the mandatory implementation of Multi-Factor Authentication (MFA). MFA has been required for taxpayers with an Annual Aggregate Turnover (AATO) exceeding Rs 100 Crores since August 20, 2023, and optional for those with AATO above Rs 20 Crores since September 11, 2023.
All taxpayers have been encouraged to activate MFA. Detailed guidance is available on the E-Invoice and E-Way Bill portals. Please ensure your registered mobile number is updated with your GSTIN. 2. E-Way Bill Generation Restriction: Starting January 1, 2025, E-Way Bills will only be generated for documents dated within 180 days of generation. For example, documents issued before July 5, 2024, will not be eligible for E-Way Bill generation after this date. 3. E-Way Bill Extension Restriction: Additionally, the extension of E-Way Bills will be limited to a period of 360 days from their original generation date. For instance, an E-Way Bill generated on January 1, 2025, can only be extended up to December 25, 2025. |
Note: For more details and exact content of the advisory, it is advisable to kindly go through the GST Portal, -News and Update section. |
DUE DATES – GST COMPLIANCES IN DECEMBER 2024 | |||
Monthly | Quarterly | Other Due Dates | |
GSTR-3B (Nov 2024) 20th Dec,2024 | GSTR-3B (Oct-Dec 2024) 22nd Jan 2025, 24th Jan, 2025 | GSTR-5 (Nov,2024) 13th Dec, 2024 | GSTR-5A (Nov,2024) 20th Dec, 2024 |
GSTR-1 (Nov,2024) 11th Dec,2024 | GSTR-1 (Oct-Dec 2024) 13th Jan, 2025 | GSTR-6 (Nov,2024) 13th Dec, 2024 | GSTR-7 (Nov,2024) 10th Dec, 2024 |
IFF (Optional) (Nov 2024) 13th, Dec,2024 | CMP-08 (Oct-Dec,2024) 18th Jan, 2025 | GSTR-8 (Nov,2024) 10th Dec,2024 | RFD-10 2 years from the last day of the quarter in which supply was received |
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