Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
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.  

Comments
Print   |    |  Comment

PJ/CASE LAW/2015-16/2572

Conversion of shipping bill from DEEC to DEPB Scheme.

Case:-UNI DERITEND LTD. VERSUS COMMR. OF CUS. (EXPORT), MUMBAI

Citation:-2014(306) E.L.T. 669 (TRI.-MUMBAI)

Brief Facts:-The appellants are in appeal against the impugned order denying conversion of shipping bills filed for obligation under the EPCG scheme to DEPB scheme.
 
Appellant Contentions:-  The learned Counsel for the appellant submits that conversion has been denied by relying on the Board’s Circular No. 4/2004-Cus., dated 16-1-2004 and the provisions to the Section 149 of the Customs Act, 1962. In fact, as per the Board’s Circular No. 36/2010-Cus., dated 23-9-2010, the provisions were liberalized. Therefore, they are entitled for conversion. To support his contention he placed reliance in the case of Diamond Engineering (Chennai) Pvt. Ltd. v. CC, Chennai - 2013 (288) E.L.T. 265 (Tri.-Mad.).
 
Respondent Contentions:-On the other hand the learned AR strongly opposed the contention of the learned Counsel and submits that in the shipping bills the appellant has not mentioned the PMV therefore, the adjudicating authority has rightly denied the conversion of the shipping bills from EPCG scheme to DEPB scheme. To support his contention he placed reliance on the decision of this Tribunal in the case of Actavis Pharma Manufacturing Pvt. Ltd. v. CC, Chennai - 2012 (279) E.L.T. 517 (Tri.-Chennai).
 
Reasoning of Judgment:-Considered the submissions made by both the sides.
The case law relied on by the learned AR is not relevant to the facts of this case as in that case free shipping bill was filed by the assessee and requested for conversion of the said free shipping bill to DEPB shipping bill. Therefore, this Tribunal arrived at a decision as there was no declaration of PMV by the assessee therefore, conversion was not allowed. But in the case of Diamond Engineering (Chennai) Pvt. Ltd.(supra) this Tribunal has examined the decision of Actavis Pharma Manufacturing Pvt. Ltd.(supra) relied upon by the learned AR and considered the fact of the case are not similar as in that case shipping bills were filed for the conversion of the shipping bills from Advance Licence Scheme to DEPB Scheme. In this case the facts are of similar to the facts of Diamond Engineering (Chennai) Pvt. Ltd. As the assessee sought conversion from DEEC scheme to DEPB scheme and examination level in both the situation are similar. Therefore, on the basis of the document produced at the time of export the adjudicating authority should have allowed the conversion. As those documents have not been examined by the adjudicating authority therefore, the matter needs examination at the end of the adjudicating authority to verify the fact that for conversion from EPCG scheme to DEPB scheme the export documents are sufficient to grant conversion or not. The adjudicating authority is directed to act accordingly and pass an appropriate order in accordance with law.
The appeal is allowed in these terms by way of remand.
 
Decision:-Appeal Allowed.

Comment:-The crux of this case is that free shipping bill cannot be converted into DEBP shipping bill if there is no declaration of PMV as held in the case of Actavis Pharma Manufacturing Pvt. Ltd. However, in the present case, assessee sought conversion of Shipping Bill from DEEC to DEPB Scheme and therefore adjudicating authority should have allowed the conversion for the same because the conversion was allowed in the case of Diamond Engineering (Chennai) Pvt. Ltd.

Prepared by: Hushen Ganodwala

Post a Comment
Department News


Query
 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com