Important Judicial Pronouncements in GST CA

Transcript:Important Judicial Pronouncements in GST CA:
Important Judicial Pronouncements in GST CA V.Raghuraman, Advocate Challenge to levy/ provisions/ rules/ notification … Levy of GST Compensation cess UOI vs. Mohit Mineral Pvt. Ltd. 2018-TIOL-05-SC-GST Validity of GST (Compensation to States) Act, 2017 and GST Compensation Cess Rules, 2017 was challenged. The Court held that Constitution provision empowers the Parliament to provide for Compensation to the States for loss of revenue by law, the expression ‘law’ is of very wide import which includes levy of any cess. Parliament has legislative competence to enact the Compensation to States Act, 2017. It was observed that ‘compensation cess’ is ‘with respect to’ goods and services tax and it is a tax. Held that impugned act does not violate Constitution (One hundred and First Amendment) Act, 2016 nor is against objective of the said Act. Levy of GST Compensation cess UOI vs. Mohit Mineral Pvt. Ltd. 2018-TIOL-05-SC-GST Also held that GST imposed under 2017 Acts and levy of cess on supply of goods or services or both are two separate imposts in law and are not prohibited by any law so as to declare it invalid. Regarding the petitioner’s contention to off-set clean energy cess paid upto 30.06.2017 against compensation cess, it was held that both these cesses were collected for different purposes and petitioner contention cannot be accepted. Giving credit or set-off in payment is legislative policy which had to be reflected in the legislative scheme. GST on Duty Free Shops Atin Krishna Vs UOI 2019-TIOL-1136-HC-All-GST The Duty Free Shops are located in the Custom area as per Section 2(11) of the Customs Act 1962 Supply of imported goods to & from the duty free shops do not cross the Customs frontier & hence such supplies classify as inter-State supply u/s 7(2) of the IGST Act. Hence the same cannot attract CGST and SGST u/s 9 of either Act: HC The supply of warehoused goods by the duty free shops at the departure terminal is made to departing international passengers who are destined for some foreign location – Hence the goods supplied are never cleared for home consumption & the warehoused goods are exported - Hence no Customs or IGST is leviable - IGST is not payable on the supply either to or from the DFS located at the arrival or at departure terminal GST on Duty Free Shops Sandeep Patil Vs UOI 2019-TIOL-2348-HC-MUM-GST Whether the duty free shops (‘DFS’, the