Abuse of revenue authority: improper recoveries and refund adjustments contrary to statutory stay and intimation safeguards. The note addresses revenue practice of effectuating recoveries and adjusting taxpayer refunds without complying with statutory safeguards, characterising such conduct as an abuse of authority and a breach of constitutional taxation limits under Article 265. It emphasises that filing an appeal precludes an assessee from being treated as an 'assessee in default' for recovery purposes under the statutory stay framework, and that automatic adjustment of refunds against demands without prior intimation and opportunity of hearing conflicts with the statutory process for refund adjustment and recovery.
Suspension of limitation: moratorium under the insolvency code halts limitation, prioritising resolution before limitation resumes post-resolution. Section 60(6) of the Insolvency and Bankruptcy Code suspends the running of limitation for as long as a company is under the moratorium imposed by Section 14, and this suspension should be read in harmony with the Resolution Professional's duty under Section 25(2)(b). Insolvency shifts control from the company's management to the Resolution Professional and the Committee of Creditors, who focus on resolution rather than litigation, and limitation resumes when the company emerges from insolvency.
Reverse charge on ocean freight invalidated as conflicting with composite supply and double taxation principles. Notifications 08/2017 and 10/2017 that impose tax on ocean freight in CIF contracts by treating the importer as the recipient under a Reverse Charge Mechanism were challenged as ultra vires, producing double taxation because freight is included in customs value, lacking territorial nexus, and mischaracterising the exporter/importer relationship; the Supreme Court refused to treat GST Council recommendations as binding and held that separate taxation of the freight service contravenes the statutory composite supply framework.
Retrospective GST exemptions and reclassifications bar refunds on tax already collected despite prior tax treatment. Two retrospective GST amendments reclassify past tax treatments and bar refunds: unintended waste from fish meal production (excluding fish oil) is retrospectively exempted for the earlier period but collected tax is non refundable; and grant of alcoholic liquor licences is retrospectively treated as neither supply of goods nor supply of services, with tax already collected likewise not refundable.
Interest rate under section 50(3) CGST Act set retrospectively to a prescribed statutory rate affecting tax interest liability. Notification No. 10/2017 (Union Territory Tax) is amended retrospectively from 1 July 2017 to prescribe the rate of interest under sub-section (3) of section 50 of the CGST Act as 18%, thereby fixing the statutory interest chargeable under that CGST provision for the retrospective period.
Interest rate under CGST Act fixed retrospectively, establishing a statutory uniform rate effective from July 2017. A retrospective amendment to Notification No. 6/2017 fixes the statutory interest rate applicable under the CGST interest provision, with effect from 1 July 2017, by specifying the rate of interest under subsection (3) of the relevant CGST provision.
Input tax credit restrictions clarified: availment conditioned on communication and extended rectification windows provided. Amendments condition availment of input tax credit on absence of restrictions in communications to recipients and extend the claim and rectification window to the thirtieth day of November of the following financial year; they remove two way return communication, replace it with prescribed one way auto generated communication of inward supplies and credits, require tax period sequential filing of outward supplies, substitute provisional credit claims with self assessed credit subject to conditions, limit utilisation and transfer of electronic ledgers, restate interest on wrongly availed credit retrospectively, and clarify refund claim procedures and withholding scope.
Retail sale price valuation provisions superseded to align central excise valuation with the post GST legal framework under new notification. Notification No. 49/2008 set out retail sale price based valuation and abatements under section 4A of the Central Excise Act; it has been superseded by Notification No. 01/2022 dated 1 February 2022 to align excise valuation and abatement treatment with the post GST legal framework.
NCCD schedule amendment: reclassification of petroleum crude tariff item to a designated central excise heading changes levy application. Amendment substitutes Central Excise tariff item 2709 20 00 with 2709 00 10, classifying the entry as petroleum crude in the Seventh Schedule to the Finance Act, 2001, via the Finance Bill, 2022, thereby reclassifying the tariff heading for NCCD schedule purposes.
Additional excise duty on unblended fuel imposed to promote blending from October, affecting petrol and diesel sales. An additional Basic Excise Duty of Rs. 2 per litre will be levied on petrol and high speed diesel sold to retail consumers without blending, effective from 1 October 2022, to promote petrol blending with ethanol/methanol and diesel blending with bio-diesel by creating a tax differential between blended and unblended fuels.
Ethanol blend tariff classification updated; new excise tariff entries align Fourth Schedule with Customs Tariff provisions. Insertion of two new tariff items into the Fourth Schedule to the Central Excise Act, 1944 establishes excise classifications for ethanol-blended petrol conforming to BIS IS 17586 and aligns those Fourth Schedule entries with the proposed corresponding amendment in the First Schedule to the Customs Tariff Act, 1975; amendments take effect on enactment unless otherwise specified.
End-to-end automation of concessional import regime streamlines electronic filings and introduces monthly compliance reporting on a common portal. Amendments require submission of all requisite details electronically via a common portal with standardized forms, remove transaction-based permissions and automate claim procedures for notification benefits. Importers must file a Monthly Statement on the portal to monitor use of goods for intended purposes, and may make voluntary payment of duties and interest through the portal, consolidating reporting, payment and compliance within a single electronic system.
Export duty change: reduction in duty for raw buffalo hides and skins under Notification No.27/2011, altering export tariff treatment. Amendment to Notification No.27/2011 revises the export duty applicable to raw buffalo hides and skins under the Chapter 41 leather tariff, substituting the prior duty rate with a reduced rate for that specified commodity; the change takes effect from 2 February 2022 and alters the customs export tariff treatment for exporters of raw buffalo hides and skins.
Anti-dumping duty revocations remove specified steel import remedies and withdraw corresponding notifications under the 2022 finance measures. The Finance Bill 2022 permanently revokes specified trade remedy measures: Anti-Dumping duty on (a) straight length alloy-steel bars and rods from the People's Republic of China (notification No. 54/2018-Cus), (b) non-cobalt high speed steel from Brazil, the People's Republic of China and Germany (notification No. 38/2019-Cus), and (c) flat rolled steel plated or coated with aluminium or zinc from the People's Republic of China, Vietnam and Korea RP (notification No. 16/2020-Cus). Countervailing duty on certain hot and cold rolled stainless steel flat products from the People's Republic of China (notification No. 1/2017-Cus) is also revoked.
Concessional duty for EV kits clarified-kits with essential EV character qualify even if some components are absent. Removal of the SPF requirement for live L. vannamei shrimp places regulation with the Department of Fisheries. Amendments clarify that CKD/SKD EV kits qualify for concessional duty if the presented kit has the essential character of an EV even when some components are missing, and delete unused parts from the two wheeler EV concessional entry.
Customs cess exemptions expanded: additional cesses removed on specified concessional imports and rare disease drug imports exempted. Multiple customs notifications granting duty exemptions for specified concessional imports are amended to also exempt Health Cess, Agriculture Infrastructure and Development Cess and Road and Infrastructure Cess as applicable; additionally, a new tariff entry exempts drugs and medicines for treatment of rare diseases when imported by designated Centres of Excellence or on their recommendation, reflecting the National Policy for Rare Diseases.
Social welfare surcharge exemption changes narrow and withdraw exemptions for specified tariff items, while exempting other listed imports. Amendment to Notification No. 11/2018-Customs revises Social Welfare Surcharge treatment by granting SWS exemptions for specified tariff subheadings (including certain fruits, oil products and textile yarns/fabrics) while withdrawing or narrowing exemptions for multiple garment and textile tariff items, thereby changing SWS incidence on imports classified under the listed tariff items and sub-headings.
Duty-free imports for exporters: end-use monitored inputs require timely export of value-added goods under IGCR compliance. A scheme permits duty-free imports for bonafide exporters on an end-use monitoring basis, requiring use of imported inputs to manufacture value-added export goods within a prescribed period and adherence to the Import of Goods at Concessional Rate Rules, 2017. Operational changes amend conditions for S. No. 257, insert S. No. 257A (decorative and ancillary items for handicrafts), S. No. 257B (fasteners, inlay cards, lining materials, wet blue leather for textile/leather garments), and S. No. 257C (buckles, buttons, locks for footwear/leather products); S. No. 288 is omitted as subsumed.
Basic customs duty changes revise import duty and health cess rates across multiple tariff items, effective early February. Proposals amend Basic Customs Duty and Health Cess rates effective 2.2.2022 by specifying revised duties for listed tariff items. The schedule sets prior and proposed rates across commodity groups-agricultural products, fuels and chemicals, paper, gems and jewellery, metals, electrical and electronics, medical devices, toys and capital goods-and includes sector measures such as extension of an iron and steel scrap exemption and changes for camera lenses, PCB inputs, X ray items, surgical needles, recovered paper and capital goods components.
Phased customs duty changes on electronic imports introduce staged rates for components and finished devices to incentivise local manufacture. Proposed amendments establish phased basic customs duty schedules under the Phased Manufacturing Program for wrist wearable devices, hearable devices, and smart meters, specifying year-by-year duty rates for identified components, sub-assemblies and finished units. IGCR conditions apply to enumerated component entries. The schedules distinguish classification-based parts and ''any chapter'' inputs, generally providing lower or nil duties initially for parts to encourage local assembly while setting distinct trajectories for imported finished products and assemblies.
Mandatory filing duties and updated return limits reshape corrective filing eligibility and compliance obligations. Section 263 imposes mandatory filing duties for enumerated classes, prescribes due dates by category, empowers the Board to prescribe forms and ... Summary
Mandatory filing duties and updated return limits reshape corrective filing eligibility and compliance obligations.
Section 263 imposes mandatory filing duties for enumerated classes, prescribes due dates by category, empowers the Board to prescribe forms and particulars, and allows the Central Government to exempt classes. It distinguishes late returns, revised returns (both within nine months or before assessment completion), and an updated return remedy within a multi year window that is barred where updated filings would claim losses, reduce tax, produce refunds, duplicate updates, or where assessments, possession of information, international or internal information exchange, prosecutions, searches, surveys, requisitions or specified notices have intervened. Assessing Officers may treat unrectified defective returns as invalid after a short cure period.
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