TaxTMI 
TaxTMI 
2020 (1) TMI 467
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....may be pleased to issue a Writ of Mandamus or any other appropriate writ, direction or order thereby directing the Petitioner's Bankers to allow the Petitioner to operate the bank accounts in the normal manner without giving effect to the provisional attachment orders made by the Deputy Commissioner of GST-State; (C ) Pending hearing and final disposal of the present petition, Your Lordships may be pleased to direct the Deputy Commissioner of GST-State i.e. the Respondent No.3 herein, to forthwith instruct the Petitioner's Bankers to allow the Petitioners to operate the bank accounts in normal course of business, and be further pleased to stay implementation and execution of all attachment orders made by the 3rd Respondent herein. (D) Pending hearing and final disposal of the present petition, Your Lordships may be pleased to direct the Petitioner's bankers to allow the Petitioner to operate the bank accounts in the normal course of business, thereby, staying further implementation and execution of attachment orders; (E) An ex-parte ad-interim relief in terms of Para 21 (C & D) above may kindly be granted; (F) Any other further relief that may be deemed fit ....
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.... 2701 of the Customs Tariff when imported in India, and under Heading 2701 of the Central Excise Tariff if coal was produced in India. For ready reference. extracts of Chapters 27 of the Central Excise Tariff as it stood prior to 1.7.2017 are enclosed and marked as Annexure-"C". When iron ore and coal were processed in kilns for manufacturing goods like Sponge iron, obviously residue of coal would arise as a result of manufacturing process in the kilns; and such residue of coal also retained a very low calorific value indicating the parameter of Volatile Matter (VM), which is the capacity or capability of the product for burning and generating heat. Ordinarily, VM parameter of normal or ordinary coal is found to be in excess of 25, whereas the same parameter of VM residue of coal arising after the manufacturing process in the kiln is very low, ranging between 2 to 4, but not in excess of 5. The residue of coal so obtained is described in the general trade by various nomenclatures like "Dolachar" "ChaLCoal" "Waste Coal" etc. Such coal waste contains high quantity of ash because of bunring of coal and iron are in a kiln. Specimen test reports of coal procured by the Petitioner ind....
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....een provided under HSN, and such Notes under Heading 26.21 clarify that ash produced primarily from burning the coal, lignite, peat or oil were covered under the said Heading No.26.21. Such Notes under Heading 27.01 of HSN clarify that the said classification was for various types of coal and anthracite. Extracts of Explanatory Notes under Heading 27.01 of HSN are enclosed and marked as Annexute"H". 8.2 It is clear from the above referred Notes of HSN that waste coal, also known and described as Dolachar/Char Coal, falls for classification under Heading 26.21 of GST Tariff, and accordingly such waste coal has been chargeable to 9% CGST and 9% SGST: the total liability of GST being that of 18% Adv, However, no Compensation Cess is chargeable on goods of Heading 2621 of GST Tariff. But, owing to a sheer inadvertent error, which has occurred without the Petitioners even realizing about such error, waste coal is shown as a product falling under Heading No.27012090 of HSN-Code i.e. GST Tariff in the invoices issued by the Petitioner for sale and supply of waste coal from Jul, 2017 onwards. A few specimen invoices issued by the Petitioner for waste coal after July, 2017 are enclose....
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.... Compensation Cess on supplies of waste coal made from April, 2018 onwards, and also raising another issue of allegedly availing Input Tax Credit (ITC) for certain taxable supplies received by the Petitioner though no GST was paid or payable on the corresponding output supply. A copy of this show cause notice dated 26.12.2018 is enclosed and marked as Annexure-"K". Both these show cause notices are pending for adjudication; the Petitioner has not filed replies to the show cause notices so far because of further actions taken by the Respondents immediately thereafter. and no assessment orders are made by the adjudicating authority on these two show cause notices. 10. Immediately after issuing the above referred two show cause notices, the 3rd Respondent has issued communications/orders to the Petitioner's Bankers, including the 4th Respondent herein, thereby ordering provisional attachment of the Petitioner's bank accounts. Two provisional attachment orders, both dated 27.12.2018, have been served upon the 4th Respondent Bank Manager, but the copy thereof is not even communicated to the Petitioners: though the Petitioners have received copies of these orders dated 27,1....
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....emand raised in the second show cause notice in respect of ITC was highly excessive, have also not been considered by the Respondents. The attachment of bank accounts still continues. 12. In the meanwhile, upon realizing the inadvertent error of classifying waste coal under S.H.No.27012090 instead of the correct classification of S.H.26219000, the Petitioners have calculated the actual amount of CGST and SGST payable on all sales and supplies of waste coal made from July, 2017 onwards; and such differential GST amount aggregating to Rs. 49,79,616/- has been paid to the credit of the GST Department by debiting legally admissible and availed ITC in the petitioner's statutory Credit Register. The Petitioners have also calculated the actual amount of ITC reversible in respect of the additional issue raised in the second show cause notice dated 26.12.2018, and such amount calculated in accordance with R.42 of the CGST Rules being Rs. 4,22,496/- has also been paid by the Petitioner. 13. But the bank accounts of the Petitioner Company are still not allowed to be operated, and the attachment orders made by the 3rd Respondent herein still continue, and therefore the Petitioners are co....