Circular No. 214/1/2023-Service Tax dated: 28th February, 2023: Leviability of Service Tax on the declared service “Agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act” under clause (e) of section 66E of the Finance Act, 1994 – reg.

Recommendations of 49th GST Council Meeting;PIB Press Release dated 18-02-2023 

Government of India to clear entire pending balance GST compensation of Rs. 16,982 crore for June’2022 GST Council adopts report of Group of Ministers (GoM) on GST Appellate Tribunal with certain modifications GoM report on Capacity Based Taxation and Special Composition Scheme in certain Sectors on GST approved Changes in GST rates of “Rab” and Pencil Sharpner

The exemption notification came into effect only on date it was published in the Official Gazette: Adani Wilmar Ltd Vs Commissioner of Customs Bangalore (CESTAT  Bangalore) Appeal Number: Customs Appeal No. 20277 of 2020 Date of Order : 03/02/2023

Hon’ble CESTAT held that the exemption notification came into effect only on 06.03.2018, on which date it was published in the Official Gazette after it was digitally signed for e-publication. The Commissioner (Appeals), was also not justified in distinguishing the cases cited by the appellant only for the reason that an amendment had been made in section 25(4) of the Customs Act in 2016.

Department cannot pass penalty order without issuing/serving Show Cause Notice [Sun Aviation Pvt. Ltd. Vs Commissioner of Customs (Delhi High Court) Appeal Number : W.P.(C) 17189/2022 Date of Judgement: 07/02/2023]

Hon’ble High Court held that there is no material to indicate that the Show Cause Notice was sent by speed post with acknowledgement due or had been served by any of the modes as specified under Section 153(1) of the Customs Act, we have no hesitation in accepting the petitioner’s contention that it was not served with the Show Cause Notice in question. In view of this, the impugned order has been passed in violation of principles of natural justice and the petitioner was not afforded full opportunity to contest the allegations against it. Consequently, the impugned order, to the limited extent that it imposes penalty on the petitioner, is set aside. 

Cancelling the Petitioner’s GST Registration is unsustainable as it does not consider the petitioner’s response to the Show Cause Notice [Rakesh Enterprises Vs Principal Commissioner Central Goods and Services Tax & Ors. (Delhi High Court) Appeal Number : W.P.(C) 14250/2022 Date of Judgement: 09/02/2023]

Hon’ble Delhi High Court held that it is apparent that the impugned order dated 28.12.2020, cancelling the petitioner’s registration is unsustainable as it does not consider the petitioner’s response to the Show Cause Notice. The impugned order dated 28.12.2020 is set aside. Consequently, the respondents are directed to restore the petitioner’s GST Registration.

Weekly Newsletter GST Law and Other indirect Taxes [February, 2023] GST Updates, GST Circular and Notification, GST AAR Ruling; GST Weekly Updates