News archives

Supreme Court Case Law Analysis - Commissioner of Central Excise Vs Grasim Industries Ltd & Ors decided on 11th May, 2018

18th May 2018

A five judge  larger bench of the Hon’ble Supreme Court recently examined a reference regarding central excise valuation in general and the relationship between the nature of excise duty and the measure of the duty. This reference arose due to a perceived conflict between two judgements of the Apex Court in the following cases. :

Union of India and Ors. v. Bombay Tyre International Ltd. and Ors.  and
Commissioner of Central Excise, Pondicherry v. Acer India Ltd.

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Malaysia to scrap GST from 1st June - What it means for India?

17th May 2018

The Finance Ministry of Malaysia confirmed that GST will be scrapped effective from 1st June 2018. Malaysia was the last nation before India to introduce a GST at 6%  uniformly on all goods.  In barely three years of introduction, GST in Malaysia became hugely unpopular and was perceived as the main reason for spike in prices. Removal of GST was indeed the main poll promise made by the Pakatan Harapan coalition if voted into power.

Effective from 1st June, GST will be charged at "zero per cent" and later fully abolished when the Malaysian Parliament repeals the GST Act 2014.The recently formed government under Dr. Mahathir has promised to bring back the Sales and Services Tax to replace the GST.

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If the principles of natural justice were ignored, mere existence of an alternative statutory remedy can’t bar the High Court from intervening.

12th May 2018

If the principles of natural justice were ignored by the adjudicating authority, mere existence of an alternative statutory remedy cannot bar the High Court from intervening.

In a recent judgement passed on 8th May, 2018, the Calcutta High Court in Sadguru Forwarders Pvt Ltd. Vs Commissioner of Customs (Port) Kolkata has held that since the petitioner was not allowed to cross-examine the witness even though this was specifically asked for, the principle of natural justice have been violated. Accordingly, the order passed by Customs denying cross examination was set aside.

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What is the logic for a new sugar cess ?

8th May 2018

GST was intended to amalgamate all indirect taxes into JUST one. We were told its "One Nation, One Tax" (really there are at least 4 taxes - CGST, IGST, SGST and UTGST).  The pre-GST cesses like education, higher education, Swach Bharat, krishi kalyan were all embedded in GST together with central excise, VAT, CST etc. to remove the layering of taxes over taxes leading to cascading. Now there is talk of a sugar cess. This is being proposed @ Rs 3/- per kg. What is the logic for it?

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GST officials are reported to have begun issuing scrutiny notices where sales and purchase returns i.e. GSTR 1 and GSTR 2A did not match.

7th May, 2018

GST officials are reported to have begun issuing scrutiny notices where sales and purchase returns i.e. GSTR 1 and GSTR 2A did not match. If no explanation is received in 30 days, the notices assert that  legal proceedings will be initiated. Reportedly, there is an alleged under payment of around Rs 34400 Cr where Rs 8.16 lakh Crores has been paid when the estimated tax liability was Rs 8.51 lakh Crores. There are concerns that the anti-avasion measures in GST may not be adequate. Yet, this exercise to curb anti-evasion should not hurt business due to any unreasonable approach adopted by GST officials.

The 27th GST Council rings in more changes especially a single monthly return to make GST less puzzling. Sugar cess and incentive for digital GST payment to be determined by 2 GoMs, GSTN to be 100% Govt held eventually

4th May, 2018

GST Council decided to roll out a simplified single in 6 months. Till then old format to continue. The council also discussed the proposal to make GST Network 100% Govt owned instead of 49% currently (equally held by Centre & States). Eventually 100% will be held equally by Centre and States. The Council deferred the decision on sugar cess by setting up two panels of 5 State Finance Ministers (GoMs) to study and recommend on sugar cess and 2% incentive for digital payments.

CBI has arrested & produced in CBI Court four Dy Commr (DCs), a Supdt and a CHA for alleged bribery

2nd May, 2018

Mukesh Meena, Rajeev Kumar Singh, Sudarshan Meena, Sandeep Yadav and one Supdt Manish Singh. They also arrested a Customs House Agent  (CHA) Nilesh Singh in an alleged bribery case where a demand of Rs 50 lacs was made.
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"Duty Free" shops will no more remain "duty free" at international airports

23rd April, 2018

In a recent ruling by a Delhi Bench of the Advance Ruling Authority under GST, it has been held that International passengers on their way out of India will have to pay GST at 'Duty-Free' shops in international airports. In short, these "duty free" shops will no more be "duty free". Click to read more

GST Council keeps RCM on hold till June -  Businesses under composition levy need not furnish related data  

18th April 2018

 GST Council has decided to keep the "reverse charge mechanism" (RCM) on hold till June. The RCM model of taxation is similar though not identical to TDS  applicable in direct taxes. In RCM purchases made from any unregistered business becomes taxable in the hands of the recipient. This measure is intended to ensure that GST applies universally on all transactions including those from fully exempted businesses. Read more
CBEC not to pursue appeals- Circular dated 10th Feb 2018The CBEC has accepted 63 orders passed by CESTAT, High Court and the Supreme Court and decided not to pursue the matters in appeal. This has been confirmed through a Circular No 1063/2/2018-CX dated 16.02.2018. Naturally, this is a step in the right direction towards reducing litigation. Click to read the circular

 Economic Survey of India 2017-18 being presented by the Chief Economic Advisor Mr Arvind Subramanian

 

 

 

 

Click here for the documents
Budget 2018-19

    Budget 2018-19 Highlights

    Budget Speech : Part A    Part B

    Finance Bill 2018

    Explanatory Memo to the Finance Bill

    Explanatory Notes from CBEC

Letter from Jt. Secretary on Budget Proposals 1

Letter from Jt. Secretary on Budget Proposals 2

Indirect Tax Budget Notifications - Customs Notifications
 Bombay Customs revives Customs Cup Regatta after 10 years

The Bombay Customs Yacht Club which was set up in 1980 by the then Customs Collector Shri J Dutta was revived after 10 years.

On 26th Jan, 2018, Republic Day this year, the Customs Cup Regatta 2018 - Mumbai Harbour Race  was held. There were a total of 42 yachts and 150 participants including customs officers participating in the event.

This brings up glorious memories when an Indian Customs Officer, Mr Gulshan Rai  set sail and circumnavigated the earth. He later went on to receive the Arjuna and Padma Shri Awards.