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Corporate News *  Service tax penalty can’t survive when assessee acted on dept.’s own view of non-taxability: Delhi High Court. *  GST section 74 extended limitation questionable when form 26AS mismatch was already known: Karnataka High Court grants interim relief. *  CGST demand prima facie impermissible after state GST settlement under section 128A: Bombay High Court. *  Supreme Court asks GSTAT to sympathetically consider delay as taxpayers pursued remedy before wrong forum. *  Supreme Court stays Tripura High Court ruling protecting genuine buyers from ITC denial over supplier’s GST default. *  Diary entries alone can’t prove clandestine removal of goods: CESTAT quashes excise penalty on steel trader. *  Customs could investigate preferential tariff claims even before sec. 28DA: Delhi High Court. *  Customs dept. relied on fake AI generated case laws: supreme court quashes Rs. 425.28 crore penalty. *  No GST exemption in affiliation and annual registration charges for admission or conduct Of examinations: GSTAT. *  Mere invoices, cheque payments insufficient to establish genuine movement of goods: GSTAT restores Rs. 43.44 lakh ITC demand. *  Consolidated GST show cause notice covering multiple financial years is not without jurisdiction: Delhi High Court. *  Construction of independent houses on separate plots not taxable as ‘Residential Complex’ without common facilities: CESTAT. *  GST penalty exceeding statutory maximum unsustainable; Allahabad High Court quashes ? 50,000/- penalty after taxpayer filed return and paid late fee. *  GST order against standard chartered bank passed without hearing set aside by Bombay High Court. *  Retracted statements can’t be relied upon without cross-examination: CESTAT quashes gold confiscation. *  Burden to prove misclassification lies on customs department: CESTAT. *  CESTAT quashes Rs. 98 lakh excise demand on clearance of used refractory brick scrap. *  Service tax demand on irrigation works quashed: Karnataka High Court rules sale of goods component not taxable as service. *  GSTAT restores tax and penalty for transporting iron scrap without E-way bill citing intent to evade tax. *  Madras High Court stays GST recovery from directors without opportunity to show cause under section 89. *  Madras high court stays GST recovery notice against directors; finds prima facie case on applicability of section 79(1)(c). *  Procedural lapses can’t justify harsh punishment without serious customs breach: CESTAT quashes customs broker licence revocation. *  Service tax payable on land leasing and sports complex charges: CESTAT. *  Settled customs dispute can’t be reopened through Article 226 challenge to interest liability: Delhi High Court. *  Mere facilitation of customs clearance can’t establish knowledge of smuggling: Madras High Court. *  GST registration cancellation stayed: Allahabad High Court questions 99% ITC utilisation cap under rule 86B. *  Composition scheme lapses automatically on crossing Rs. 1.5 crore turnover: GSTAT. *  Gujarat High Court quashes GST cancellation orders after officer relied on non-existent AI-generated case laws. *  Importers liable for customs duty benefits availed through manipulated scrips: Delhi High Court. *  Procedural E-way bill lapse alone can’t justify penalty where genuine transaction and absence of tax evasion are established: GSTAT.
Subject News *  Documentary evidence dominates probe, further custody unwarranted: mumbai court grants bail in Rs. 22.44 crore customs duty evasion case. *  Business premises can’t remain sealed for non-participation in GST search: Allahabad High Court. *  GST pre-deposit must be refunded proportionately when taxpayer partly succeeds in appeal: Bombay High Court. *  Supreme Court grants 30 days to file GST appeal; keeps pre-deposit issue open due to deposit in parallel CGST proceedings. *  GST demand can’t exceed amount proposed in SCN: Allahabad High Court quashes Rs. 20.47 Crore order. *  Hundreds-of-crores GST demand and heavy 10% pre-deposit no ground to bypass statutory appeal: Punjab & Haryana High Court. *  Delhi High Court refuses to entertain challenge to gold confiscation due to statutory appeal remedy and unexplained delay. *  Procedural error in customs broker licence inquiry can be rectified through remand: Delhi High Court. *  GSTR-2A mismatch alone can’t justify ITC denial without invoice-wise verification; personal hearing mandatory: GSTAT. *  GST order passed without uploading personal hearing notices violates sec. 75(4): Allahabad High Court. *  TAX EVASION - Sec. 74 GST SCN quashed for not spelling out fraud, wilful misstatement or suppression: Allahabad High Court. *  STPI’s SOFTEX certification and NoC charges taxable as business support services: CESTAT. *  Suspicion can’t replace proof: CESTAT quashes penalty in alleged gold-smuggling operation. *   Limitation runs from communication of order: Madras High Court upholds rejection of delayed GST Appeals. *  Rajasthan High Court quashes GST demand over unsigned show cause notice. *  ITC recovery upheld where supplier failed to deposit GST: Rajasthan High Court. *  Customs commissioner’s empowered to make port trust liable for duty on pilfered goods: Supreme Court. *  Rectification proceedings can’t be used to challenge an uncontested GST assessment through a writ petition: Andhra Pradesh HC. *  GST proceedings against deceased proprietor unsustainable without notice to legal heir: GSTAT. *  Mere availment of ineligible self-assessed ITC doesn’t amount to suppression without evidence of fraud or wilful misstatement: GSTAT. *  Disposal of mining overburden by entity authorised by mining lease holder constitutes taxable service: CESTAT. *  Toll plaza data not mandatory for ITC refund: GSTAT. *  Disputed GST fraud allegations require investigation: Punjab and Haryana High Court makes interim bail absolute in alleged fraud and GST fraud case. *  Non-manufacturer contractor liable to deposit excess excise duty collected from buyer: CESTAT. *  GST order can’t reject taxpayer’s reply as “not satisfactory” without reasons: Madhya Pradesh High Court. *  Uncorroborated statements can’t establish alleged diversion of duty-free goods: CESTAT. *  Erection services were not liable to service tax prior to 10th september 2004: CESTAT. *  Sec. 74 GST notice must spell out statutory ingredients for invoking extended tax demand proceedings: Allahabad High Court. *  No jurisdictional bar under section 6(2)(b) in parallel CGST SGST proceedings: Delhi High Court refuses to bypass GST appeal remedy. *  Madras High Court remits GST demand for fresh adjudication after taxpayer claims it was unaware of SCN following business closure.  

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PJ/CASE LAW/2016-17/3104

Whether permission for handling hazardous Cargo be routed through custodian?

Case:-DBC PORT LOGISTICS LTD. VERSUS UNION OF INDIA

Citation:-2015 (326) E.L.T. 244 (Bom.)

Brief Facts:-The Petitioners applied for permission for handling hazardous cargo. That was dated 28th November, 2014. In that application, copy of which is at Page 109 of the paper book, the Petitioners pointed out that they are making a complete application for handling the hazardous cargoes as per the requirement of the Customs Department. The application was first submitted on 10th October, 2014, but the Commissioner of Customs (CFS) Management Cell, Jawaharlal Nehru Customs House, Sheva, Navi Mumbai informed the Petitioner that they must re-submit the application via JNPT. That was done on 22nd October, 2014, but the JNPT has not submitted their application to the Commissioner of Customs. In these circumstances, by this application, the Petitioners prayed to process their case and grant the handling permission. They specifically stated that the matter involving them and Customs is sub-judice and will take its own time to resolve.

By the impugned communication, this application has been refused or in a way the Petitioners have been informed that it cannot be processed further. Reference is made to the very legal proceedings.

Appellant’s Contention:-The Petitioner has invited our attention to the Handling of Cargo and Customs Area Regulations, 2009 and the definitions therein particularly of the words “Customs Cargo Service Provider” in Regulation 2(b). The Petitioner has invited Court’s attention to the conditions to be fulfilled by the Customs Cargo Service Provider. The Petitioner has also invited Court’s attention to the details of the application and equally the stand of Respondent Nos. 1 and 2 as reflected in their affidavit-in-reply. The arguments center around the submission and furnishing of Bank Guarantee, which the Petitioners submitted that they are not required to furnish, as Regulation 5 itself clarifies this aspect.
 
Respondent’s Contention:-The Respondent submits that in the light of these Regulations, the Petitioners’ application can be processed further and without the tag/label that it is submitted through JNPT. If the appointment is sought in terms of the Regulations, then, irrespective of what is stated in the impugned communication and the issues in the pending litigation, in terms of these Regulations, the Petitioners’ application can be processed. It can be processed and a decision taken thereon in accordance with law. The respondent also has not disputed the position that the application can be considered independent of the proceedings before this Court and the stand of the JNPT, but in terms of the Regulations.
 
Reasoning of Judgment:- The High Court heard the both parties and therefore, direct that the application of the Petitioner shall be processed without in any manner being influenced by the impugned communication and the issues in the pending litigation, but strictly in terms of the Regulations and in accordance with law. Let that application be processed and accordingly the decision communicated to the Petitioners as expeditiously as possible and within a period of six weeks from the date of receipt of a copy of this order. We clarify that we have not expressed any opinion on the rival contentions.
 
Decision:-With the aforesaid directions, the Petition is disposed of.

Comment:-The Crux of this case is that the assessee has filed application for handling hazardous cargo. But as per Custom Areas Regulations, 2009. application by person for engaging in cargo handling require to be routed through custodian only. The High Court rightly decide that the Petitioner’s application can be processed in terms of impugned Regulations. The High court directed the department to give a decision on petitioner’s application within six weeks
 
Prepared by: Bharat Rathore

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