Article
Unveiling the right to challenge assessments: Is consent the end?
Recent judgment of the Delhi High Court in Niraj Silk Mills & Others has (re)triggered the debate over the significance of ‘consent’ given at the time of assessment of bill of entry or shipping bill, be it regarding rate of duty, valuation or classification. The article in this issue of Indirect Tax Amicus focuses on the critical aspect of whether an assessee can challenge an assessment even after giving consent or acceptance in writing. The authors (Akhilesh Kangsia, Apoorva Parihar and Nandita Reddy) feel that navigating this legal labyrinth is no walk in the park, given the complexities and conflicting judgments prevailing. Discussing the key legal points and the take-away from the High Court’s judgement, the authors note that the judgment is a significant step towards ensuring fairness and transparency in customs valuation and reassessment processes. According to them, it will certainly ensure that the importer / assessee is not left remedy less.
Goods and Services Tax (GST)
Notifications and Circulars
- GST rates and classification of goods clarified
- Withdrawal of departmental appeals filed against interest and/or penalty only, when assessee fulfils conditions of amnesty scheme under Section 128A
Ratio decidendi
- Arrest powers under Customs and GST laws – Supreme Court clarifies – Supreme Court
- Provisional attachment of a bank account when a colourable exercise of power – Bombay High Court
- Provisional attachment – Mere pendency of proceedings under Chapter XII, XIV or XV is not enough – Madras High Court
- Refund application for inverted duty ITC on edible oils for period before 18 July 2022, is admissible even after said date – CBIC Circular No. 181/13/2022 struck down – Andhra Pradesh High Court
- Refund of pre-deposit cannot be denied taking aid of limitation under Section 54 – Jharkhand High Court
- Refund of amount deposited during investigation – Payment when not voluntary – Karnataka High Court
- Refund of GST on notice pay recovery – Limitation for filing refund application to start from date of Circular No. 178/10/2022-GST – Gujarat High Court
- Time limit of 3 months under Section 73(2) for issuance of SCN is a mandatory requirement – Andhra Pradesh High Court
- Appeal to Appellate Authority beyond the period prescribed under Sections 107(1) and (4) is time-barred – Limitation Act is not applicable – Delhi High Court
- Appeal to Appellate Authority – 3 months in Section 107(1) is 3 calendar months and not 90 days – Patna High Court
- Appeal to Appellate Authority – Delay beyond the condonable period when can be condoned – Madras High Court
- Parallel proceedings – Summons after search by Central GST authorities when are valid, even if proceedings by State authorities pending – Delhi High Court
- No GST on procurement of Excise holographic stickers/labels – Madras High Court
- Assessment of non-filers of returns – Limitation of 60 days under Section 62(2) is directory – Madras High Court
- E-way Bill – No penalty when e-way bill has SAP document number instead of tax invoice number, if intention to evade absent – Allahabad High Court
Customs
Notifications and Circulars
- Bourbon whiskey – AIDC reduced to 50%
- Customs (On -Arrival Movement for Storage and Clearance at Authorised Importer Premises) Regulations, 2025 notified but yet to come into force
- ‘Ekal Anuband’ – Single all-India multi-purpose electronic bond with end-to-end automation introduced
- Refunds application process digitized
- AIR Drawback – Use of certain exempted inputs for manufacture of export goods is not fatal
- Advance authorization – Description of item in GST e-invoice to be noted if complete description not reflected in shipping bill
- Document submission and payment of fees to be mandatorily done online for proceedings under FTDR Act
Ratio decidendi
- Drawback available on mobile phones unlocked before exports by merchant exporter – Unlocking/activation is mere ‘configuration’ and is not covered under phrase ‘taken into use’ – Delhi High Court
- Valuation – Royalty for process undertaken in India – Explanation to Rule 10(1) emphases on ‘imported goods’ – CESTAT Chennai
- Transferable DFIA – Correlation of imports with the exports of the person to whom the license was originally issued is not required – CESTAT Chennai
- Quality Control Order is not applicable on imports dispatched from the exporting country before date of coming into force of QCO – CESTAT Ahmedabad
- Aircraft engine stand is classifiable under Customs TI 8609 00 00 and not under TI 8716 39 00 – CESTAT New Delhi
- Light Green Float Glass having absorbent layer (Tin) on one side is classifiable under TI 7005 10 10 – CESTAT New Delhi
- Communication modules/network interface cards, which are essential parts of communication hubs which in turn are parts of smart meters, are classifiable under TI 8517 70 90 and not under TI 9028 90 10/ 9028 90 90 – CESTAT New Delhi
- MEIS benefit to EOU is not deniable for absence of RCMC from EPCES during FTP 2015-20 – Bombay High Court
Central Excise, Service Tax & VAT
Ratio decidendi
- No service tax on telephone charges waived off to employees up to a certain limit – CESTAT Chandigarh
- EOU – Sale of imported capital goods to foreign company without physical removal is not debonding – CESTAT Chennai
- No service tax on withholding tax retained by service recipient when same considered reimbursable by foreign service provider – CESTAT Chandigarh
- Cenvat credit available on banking charges/commission paid for BG in respect of VAT setoff on purchase of raw material – CESTAT Mumbai
