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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 on applicability of e-sealing procedure

GST Update on applicability of e-sealing procedure

GST Update on applicability of e-sealing procedure:-

The new e-sealing procedure for exports have been the talk of the town since the implementation of GST. Earlier, it was stated that this procedure may be made applicable w.e.f. 1st November, 2017. However, recently, Circular no. 41 / 2017-Customs dated 30.10.2017 has been issued to clarify the date of applicability of new e-sealing procedure alongwith the justifications thereof. A detailed note on this circular is given as follow:-
Earlier Circulars numbered as 26/2017-Cus and 36/2017-Cus have been issued to explain the new self sealing procedure. The following are the key features of new circular adding its share to the procedures prescribed by these two circulars:-

1) This procedure applies only to cargo in full container load, sealed at an approved premise, by an entitled exporter. Once dispatched under this procedure using RFID e-seal it shall be deemed to be equivalent to a container sealed under the erstwhile departmental sealing procedure. In other words, no inspection would be conducted once the RFID e – seal is read as intact or not tampered.

2) In case the RFID seal affixed is found tampered, it shall be subject to examination by officer. However, after examination, the existing system of using the traditional bottle seals by customs shall continue for further movements.

3) Full containers brought to Ports without RFID e-seals shall be taken to a CFS or allowed direct port entry, as the case may be, and will be subject to usual Risk Management System.

4) This procedure does not apply to export of non-containerized cargo or Air cargo or for movement of cargo from CFSs to ICDs/Ports or cargo exported through Land Customs Stations. Existing practices in respect of such cargo shall continue.

5) Further, few clarifications have also been provided in respect to RFID seal and the vendors selling this seal. The Board has permitted vendors to either provide fixed readers, in consultation with custodians at Ports and ICDs, or provide handheld Readers. It is also suggested that due to flexibility provided by Handheld Readers, the same should be preferred over fixed readers. It is also asked to provide the hand held readers alongwith the fixed readers. It is also asked to provide an application so that e-sealing data pushed to the destination customs port / ICD can be searched. This application is to be provided within 30 days from the date of this circular. Meanwhile, the data elements shall be transmitted in excel format to risk management division (RMD) and the concerned field formation from where the cargo is to be exported. E mail Ids will shortly be provided by officers and RMD.

6) Further, data once uploaded by the exporter should not be capable of edited or deleted. The web application shall capture the location where the RFID e-seal is read.

7) Vendors shall transmit the IEC details of such exporters who have purchased the RFID e-seals to RMD on a daily basis. The IEC number and the name of exporter shall be provided only when the vendor makes the first sale to the exporter. The list of stations where Readers have been provided by Vendors is annexed in this circular. Board shall update the list of Customs stations from time to time.

8) In respect of exporters who are already availing the self-sealing facilities under current procedure and exporters who are AE0s, the new procedure of self sealing would be mandatory w.e.f 8th Nov. 2017. Any non-compliance will subject the containers to usual RMS parameters.

9) In respect of the category of exporters who are availing supervised stuffing at their premises, existing practice of supervised stuffing may continue till 19th November 2017. With effect from 20th November 2017, they shall have to switch to RFID e-sealing procedures.

10) Regarding the exporters who have newly applied to the jurisdictional customs authority for self-sealing permission under circular 26/2017-Cus dated 1St July 2017, they shall commence use of the facility subject to grant of permission and upon adoption of RFID e-sealing.

11) It is also clarified that those exporters who are in possession of RFID e-seals are at liberty to commence availing the facilitative procedures forthwith. It may be recalled that vide circular 37/2017-Cus, the e-sealing procedure had been made voluntary subject to availability of reader facilities.

12) The procedures in respect of customs stations where readers have not been provided by any vendor so far shall continue till 31st December 2017, as per existing practice. Board shall take necessary steps to make sure that the readers are made available at such customs stations by 1st January 2018.
The above are the highlights of the Circular no. 41 / 2017-Customs dated 30.10.2017. To sum up the same:-
• The new e-sealing procedure applies only to cargo in full container load, sealed at an approved premise, by an entitled exporter.
• The exporters may also voluntarily opt for new e-sealing procedure.
• The existing practices will continue only in respect of custom stations where no readers have been provided by any vendor. 
In the remaining cases, the new procedure will apply as follows:-
• If the exporter is already availing the self sealing procedure under old laws - new e-sealing procedure will apply w.e.f. 8.11.2017.
• If the exporter is availing the factory stuffing under departmental supervision - new e-sealing procedure will apply w.e.f. 20.11.2017.

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