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Corporate News *  Missing seized records must be considered while testing ITC claim; duplicate GST demands ordered corrected: Delhi High Court. *  GST appeal can’t be rejected without addressing taxpayer’s grounds: Allahabad High Court. *  Surplus IGST credit can offset CGST, SGST shortfall: GSTAT. *  GST refund can’t be denied when cancelled airfares are returned with tax: GSTAT. *  3 Hearing notices issued within 2 minutes: Gujarat High Court flags portal flaw, seeks report. *  GSTR-9, GSTR-9C filing for FY 2025-26 enabled; pending GSTR-1 and GSTR-3B must be filed first. *  Dupattas are exempt fabrics, can’t be taxed as fibres at 4%: Madras High Court. *  Full transitional credit allowed on capital goods received after GST rollout: GSTAT denies Rs. 6.99 lakh export duty credit. *  GST return mismatch alone can’t justify fraud proceedings: GSTAT orders fresh adjudication under section 73. *  Supplier found non-existent later can’t alone justify input tax credit denial: GSTAT. *  GST interest stops once tax reaches government account, can’t run until return filing: GSTAT. *  Cancelled flat booking- GST refund can’t be denied without excluding COVID period from limitation: GSTAT. *  India notifies rules of origin for India–New Zealand FTA. *  Incomplete E-bike kits classifiable as complete vehicles, but not eligible for CKD duty concession: CESTAT. *  Same GST rate on main input and output can’t by itself bar inverted duty refund: GSTAT. *  Unjust enrichment doesn’t apply to customs refunds from assessments finalised before July 13, 2006: Gujarat High Court. *  CENVAT credit can’t be denied solely because plant And machinery are embedded in earth: Karnataka High Court. *  DFIA exports ineligible for RoDTEP benefits; customs directs repayment with applicable interest. *  Second E-Way bill alone doesn’t prove another supply: GSTAT. *  Bail denied in Rs. 1.19 crore fake GST refund case over risk of accused absconding again: Punjab and Haryana High Court. *  GST registration can be restored after revocation deadline if outstanding dues are paid: Gauhati High Court. *  Multiple GST proceedings over same suppliers: Calcutta High Court directs dept. to share findings for adjudication. *  E-Governance portal services not OIDAR, fixed deposit interest not taxable: CESTAT. *  Rs. 500 Stamp duty required on authority letters for CAs, CMA and GST practitioners in Pune GST division.  *  Rs. 1.10 crore GST refund must be paid in cash after business closure: Allahabad High Court. *  Godown rent attracts 18% GST even when used exclusively for exempt agricultural warehousing: AAR. *  GST portal launches "Multi-State Registration" facility: one master TRN for registration applications across multiple States/UTs. *  RoDTEP scheme extended till 31st December, 2026.  *  Mere disagreement with order can’t override Rs. 20 lakh appeal limit: GSTAT. *  Customs interest can’t be backdated before confiscation liability is determined; nearly 8 year period excluded: Delhi High Court.
Subject News *  GST summons: anticipatory bail maintainable without arrest order, but relief denied in evasion case: Allahabad High Court. *  GST Appeal can’t be decided without hearing taxpayer’s objections to fresh evidence: Allahabad High Court. *  GST ITC can’t be reversed merely because supplier grants discount without reducing tax liability: GSTAT. *  Mere quoting of GST provision is not a valid charge: GSTAT quashes ITC denial. *  Personal hearing mandatory before adverse GST order, even without taxpayer’s request: Rajasthan High Court. *  Parallel bail pleas without full disclosure amount to abuse of process Rs. 43.08 crore GST case sent for fresh hearing: Supreme Court. *  GST refund based on unchallenged advance ruling can’t be recovered using later circular: GSTAT. *  Payment of GST alone doesn’t end interest and penalty liability when tax and interest remain unpaid beyond 30 days of notice: GSTAT. *  GST demand over builders’ 80% procurement rule requires reasoned adjudication: GSTAT. *  Eligible ITC doesn’t automatically entitle taxpayers to compensation cess refund on domestic sales: GSTAT. *  GST confiscation order passed before reply deadline invalid: GSTAT. *  GST interest can’t be retained after tax refund on delayed export receipts: Punjab & Haryana High Court. *  GST appeal can’t be dismissed over pre-deposit shortfall without opportunity To respond: Bombay High Court. *  DGGI SCN can’t be challenged before reply and adjudication:Chhattisgarh High Court. *  GST input tax credit can’t be denied solely due to supplier’s retrospective registration cancellation: GSTAT. *  GST notice must explain fraud allegations; merely repeating section 74 Is not enough:  Himachal Pradesh High Court. *  Audit detection alone can’t justify GST fraud penalty; specific suppression must be proved: GSTAT. *  GST order uploaded only under ‘Additional Notices’ tab without separate intimation set aside: Calcutta High Court. *  Service Tax appeal can’t be rejected for missing pre-deposit proof when payment is already recorded: CESTAT. *  SGST dept. can’t hear appeal against CGST order: Calcutta High Court. *  Mere dispatch of tax order can’t prove service or make appeal time-barred: CESTAT. *  Dealer incentives can’t be taxed merely on ledger entries: CESTAT. *  DGFT orders quashed for failure to supply DRI letter relied upon in SCN: Bombay High Court. *  GST penalty u/s 122(1A) can’t apply to Pre-2021 transactions; unregistered beneficiaries also covered: Delhi High Court. *  Expired E-way bill caused by wrong PIN code can’t justify GST penalty without intent to evade tax: GSTAT. *  Used railway rails can’t be taxed as track material without proof they are fit for reuse: CESTAT. *  Earlier DGGI notice doesn’t bar separate GST demand on different issue: Delhi High Court. *  ITC dispute involves no question of law: GSTAT directs appeal to Vice-President. *  Earlier DGGI notice doesn’t bar separate GST demand On different issue: Delhi High Court. *  No E-way bill required for interstate goods movement in november 2017: GSTAT quashes detention and penalty.  

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GST Update No 155 on Circular regarding import of goods at concessional rate of duty

GST Update No 155 on Circular regarding import of goods at concessional rate of duty
With the advent and outbreak of Covid-19 pandemic in various parts of countries, concept of digitalization and complete automation has increased to a great extent. The Government is kind enough to issue circulars in this regard simplifying the procedures and providing relief to trade and industry. Recently, clarification was released by the CBIC vide Circular No 04/2022- Customs dated 27.02.2022 which talks about simple and contact less procedure on import of goods at concessional rate of duty (IGCR) Rules 2017 which are effective from 01.03.2022. The discussion of the circular is subject matter of our present update. The issues touched upon by the circular are discussed as follows:- 1) Issuance of Bond: First of all, in current offline system, the importer who intends to import at concessional rate of custom duty shall have to furnish bond with bank guarantee to the department. Now also, he has to follow the same procedure and has to follow the same procedure. As per circular, one-time continuity Bond shall be furnished in Part-B of IGCR-1 by the importer and a physical copy of the same along with bank guarantee is to be furnished to Custom officer. The bond is to be on the stamp paper as well as hard copy of the bank guarantee is essential, hence this bond and bank guarantee is to be submitted online. The officer shall then upon satisfied will accept the request on Customs Automated System and a bond number will then be generated. Moreover, additional bonds can also be executed and bank guarantee can be furnished. However, portal is new and teething problems will be there. We have seen the same in GST era also. Hence, time should be given to understand and start working on the portal. Meanwhile, both the existing offline system and updated online system should be operated simultaneously so that the importers as well as department does not face the problems. Furthermore, for the already operating assessee, all the bonds and bank guarantees should be feed by officers on the portal before 13.03.2022. But it seems to be difficult task as only one officer in the complete Commissionerate is appointed for this purpose. Earlier every jurisdictional division office was looking after this work. But now only one officer is Commissionerate will do this work. Calling and feeding of this information will be difficult task. Filing of online application: - One-time prior intimation on the common portal in Form IGCR-1 is to be filed by the importer. In earlier regime, consignment wise intimation was being filed with the jurisdictional officer but now only one time basis information is required to be filed. But there was provision of intimation only but now the acceptance of this is to be taken. It is not clear whether this acceptance will come from officer or the common portal automatically? But this permission from officer will delay the procedure and will add human intervention in online system. Further, upon accepting, a unique IGCR Identification Number (IIN) shall be generated which shall be made available to customs officer via common portal itself. But this permission is required only once. Thereafter, he can continue with the scheme thereafter and no consignment wise permission is required. 2) Import of Goods: The concerned importer shall furnish details of IIN and bond number along with Bill of Entry filed. The Customs Commissioner will then allow benefit of exemption notification. Upon filing bill of entry, the bond automatically gets debited in the Customs Automated System. It is clarified that these details shall be available to jurisdictional officer through common portal. Further, the transition provisions given in circular require that importer should give the details of stock bill of entry wise to the portal but the importer maintain the overall stock but bill of entry wise stock is not being maintained. Normally, they follow the FIFO method and presume that closing stock pertain to last bill of enteries. Even we are failed to understand the requirement of the same. This unnecessary requirement will put the importers under pressure and they have to maintain this record and file the same before 13.03.2022 after which portal will start working. 3) Receipt of Goods: It has been clarified that if goods are received directly in importer’s premises or at job-worker’s premises or partly at importer’s premises and partly at job-worker’s premises, the requirement of intimating the receipt has been done away with which is a positive move. Consequently, intimation is required only in case of any non-receipt or short receipt of goods on common portal in Form IGCR-2 based on IIN, invoice and bill of entry. This is a welcome step which doing away the unnecessary requirement of giving intimation on receipt of goods. (a) Goods sent directly on Job-worker’s premises: In such a scenario, importer shall send the goods along with e-way bill. Since, the requirement of intimating is done away with, now the importer shall maintain records and details in monthly statement. Further, the maximum period for which goods shall remain with job worker shall be 6 months from date of invoice or e-way bill. On the contrary, as per Section 143 of CGST Section 2017, the maximum period for which goods shall remain with job worker shall be 1 year in case of inputs and 3 years in case of capital goods. Furthermore, in GST no invoice is required to be prepared in case goods are sent to job worker’s premises which is a contradictory point as far as this circular is concerned. Instead, challan should be issued to send goods to job worker’s premises. Therefore, in to avoid any ambiguity and difference, the said circular should be amended and brought on the same lines as in GST Law. (b) Inter Unit transfer of goods: In case goods are sent to any other unit of same importer, the circular require that these goods shall be accompanied with invoice along with E-way bill mentioning the description and quality of goods. On the contrary, in case any other unit of the importer is in the same state under same registration, no invoice is required as per GST Act and only e-way bill is required. Normally, taxpayer issues delivery challan for the same. The above circular should be amended and issued in alignment of GST Act to avoid any discrepancies in the minds of importer and officers both. Hence, the requirement of issuance of invoice should be done away with. But when the different registration is taken for different units having separate address then invoice is issued. But this happen rarely. Normally, units are registered in the same registration number. However, when the different units of a taxpayer is in different state then they are treated as distinct person and as such the movement of goods take place under invoice and e-way bill then this requirement is perfect. Hence, it should be prescribed in circular that the movement of goods should take place as per GST rules and regulations. (c) Utilization of goods for intended purpose: It has been clarified the importer shall use the imported goods on which exemption is availed within 6 months from date of import failing which importer shall have option either to re-export goods or clear for home consumption. (d) Re-export or clearance for home consumption: In case goods are re-exported, details shall be recorded in documents which shall be specified against bill of entry, invoice and item details of goods imported. Further, it is clarified that in case importer intends to clear un-utilized or defective goods on payment of duty and interest, import duty payable shall be difference between duty leviable and duty already paid along with interest u/s 28AA from the date of import to date of actual payment. The details of these shall be recorded by importer in monthly statement and duties along with interest and shall be paid using manual challan at the port. 4) Monthly statement and maintenance of account: The monthly statement shall be submitted by 10th day of following month in Form IGCR-3. However, the first monthly return shall be submitted in April 2022 which means that return for the month of March is to be filed online. In earlier regime, there was requirement of quarterly return but now it is to be filed monthly. Hence, it is increasing the compliance burden. The importer in respect of imported goods maintain an account in prescribed format which shall be produced to Jurisdictional Customs Officer as and when required. Moreover, one more prescribed statement is also to be maintained for inter unit movement of goods. Furthermore, job worker should also maintain records in prescribed format. But all these transactions are recorded in GST and as such this should be accepted rather than prescribing one more set of records for this purpose. This will increase the compliance burden of taxpayers. When the records of GST are accepted for movement of goods then the records should also be accepted. 5) Transitional Measures: Clarification is issued in respect of transition phase wherein it is clarified that in case goods imported under IGCR already exist in the premises of importer on date of transition option is provided to importer to record details of goods according to bill of entries, invoices etc. in monthly statement and linking the past bill of entries in the common portal. This will increase the compliance work of importers since earlier details of stock was maintained as per FIFO method as stated above. However, the circular has issued to link the details of quantity along with bill of entries. Consequently, increasing workload of the importers to a greater extend. Moreover, the importer shall have option to submit procurement certificates for import for availing benefit of the scheme till 13.03.2022. It is also clarified that currently the system as regards to EOUs claiming exemption of duties on imported goods is under development and hence, they can continue to follow manual process for the same. The afore-mentioned CBIC circular is a valuable initiative by the Government substantiating the motive of “Atmanirbhar Bharat” wherein continuous efforts are made towards creating an environment for promoting manufacturing by domestic industry to make them competitive globally in international markets. However, the officers should be directed to implement this new system with human face and try to resolve the problems of taxpayers.
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