Doctrine of mutuality and GST on member contributions reexamined through constitutional limits on statutory deeming fictions.
The doctrine of mutuality has long governed the tax treatment of transactions between associations and their members, because a person cannot make a taxable supply to oneself. Before GST, the Supreme Court held that member contributions to clubs or associations lacking an independent commercial character were not taxable, and that mutuality survived the Forty-Sixth Constitutional Amendment except for goods expressly deemed to be sales. Under GST, Section 7(1)(aa) sought to deem member transactions as supplies and override mutuality for welfare funds and member-benefit arrangements. (AI Summary)

Advance Authorizations: Once DGFT issues EODC for regularised shortfalls, Customs cannot challenge export obligation fulfilment or deny benefits.
Once DGFT accepts regularisation of export shortfalls and issues an Export Obligation Discharge Certificate, the EODC constitutes conclusive proof of export obligation fulfilment and redeems the Advance Authorization; Customs authorities lack jurisdiction to re-open or dispute the DGFT's determination, and inconsistent positions by separate government wings on the same Foreign Trade Policy determination are impermissible. (AI Summary)

Export of used capital goods: reversal of input tax credit may be required under Section 18(6) despite zero-rating.
The document explains that export of capital goods on which ITC was availed triggers mandatory reversal under Section 18(6), requiring payment of the higher of ITC attributable to remaining useful life or tax on transaction value; export qualifies as "supply," so reversal applies even under LUT. It highlights an unresolved choice of calculation method between differing rules and states that zero-rating under Section 16 does not expressly override the reversal obligation, creating interpretational uncertainty. (AI Summary)