Pradeep Jain - Chartered Accountant

Dear Sir, We have a manufacturing company with turnover of 14 cr. We have received SCN from excise regarding two issues. Firstly, Till 2011, we were only supplying locally. On 2012 onwards, we started exporting. When we applied for LUT, they put a seal on Bond, without mentioning the validity period. We thought that LUT doesn't require revalidation and exported using the same LUT no. in the ARE1, after 1 month of LUT expiry. later, Range Superintendent informed us to get new LUT. The new LUT has the validity period mentioned on it. Now, we have received a Show cause Notice,under rule 19 Central Excise Rules 2002, for exporting under expired LUT. In the first LUT, the validity was not mentioned and we were not informed of the same. Whereas, in the second LUT, the validity is clearly mentioned. Please advise on defence of this situation. Secondly,they have imposed Penalty under Rule 27 Central excise rules 2002, for not filling triplicate copy of ARE1 within 24hrs. We usually export on Fridays. Saturday and Sunday, there is no facility for receiving the copies. Hence, we submit on Monday. Doesn't this account as within 24 'working' hours? please Advise...

Reply:- Although it is clear that the LUT is valid for one year. But you can plead that when the export has taken place and the proof of the same has been filed then it is procedural lapse. Further, there was lapse on part of the department also and they should have informed you that the LUT is going to expire and we should get new LUT. Secondly, there is provision in General Clauses Act that when a particular act is to be done by a particular date and there is holiday on that date then it automatically taken as next working day. Hence, there is no delay and as such no question of imposition of penalty.

Sir, we are a taxpayer dealing in health care services. We have been making supply on which tax was payable by us but we have not paid the same erroneously. The same has been pointed out by department recently. Please suggest whether we have to pay interest and penalty along with tax.

As per sub-section (5) and (6) of Section 73 of CGST Act, if you have made payment of tax and informed the same to the department then the department ...
Sir We are dealing in trucks. We have received an export order from foreign buyer. We wish to procure trucks from 5 different manufacturers and supply them directly to the port without receiving on our own premises. Can we do the same to take benefit of merchant export by paying tax @ 0.1%.

. Yes, as per Notification 41/2017-intergrated tax (Rate) dated October 23, 2017, benefit of notification is available only when the material moves fr ...
The agriculture produce like soyabean are taxable however, their warehousing is exempt and not chargeable to tax. How?

Under GST regime, agriculture produce means “any produce out of cultivation of plants and rearing of all life forms of animals except rearing of hor ...
Hello sir we have made export of goods however the funds have not been realized. Is there any implication in GST regarding the same?

As per rule 96B introduced with effect from 23-3-2020 provides that where any refund of IGST paid on export of goods has been received by the exporter ...
What Is the GST rate for interest and penal charges levied by Chit Fund Company in case GST on foremen commission charged is @12%?

GST rate on foremen commission is charged at the rate of 12%. Similarly, GST rate on interest and penal charges shall be @12% only. The same view was ...
Tax payer being a company, is in one state (state -1). However vehicle carrying his goods is caught in another state (state-2) where the company is not having any registration. Company paid penalty under temporary registration ID created by the officer of state-2. Now, company wants to file an appeal but don’t have any temporary registration login credentials. How to file appeal in such a case?

. In the given query, after the interception a temporary ID was created by officer of state-2. However, the login ID and password of temporary registr ...
Whether GST exemption is availed on export of service when invoice is issued in USD and GST is not charged and currency is received in INR?

Export of service is defined under section 2(6) of the IGST Act. It means supply of service when: ? The supplier of service is located in India. ...
E-way bill was generated and then after order was cancelled but E-way bill was not cancelled by both the parties on the portal. What should be done in this case and what are the consequences?

As per provisions of GST, where an e-way bill has been generated but goods are either not transported or are not transported as per the details f ...
The Taxpayer made exempted supplies but forgot to choose the same in GSTN while registering, can he be said to fail his right of exemption?

We do not claim exemption while filing registration application. It is being claimed in GSTR-3B returns. Moreover, only five major products are to ...
If a taxpayer made mistake declaring the HSN/SAC of goods and services supplied, what are the consequences?

Under GST law, one of the most important elements is the classification of goods/services for the purpose of determination of rate of tax to be l ...

Comments

Query