GST WEEKLY UPDATE :16/2024-25 (10.06.2024) By CA Vipul Khandhar

-By CA Vipul Khandhar

1. Goa GST Department Reconstitutes Appellate Authority Jurisdictions under the Goa GST Act:

The Goa GST Department issued an Order vide No. CCT/26-2/2024-25/82/993 dated June 13, 2024, reconstituting the Appellate Authority under the Goa Goods and Services Tax Act, 2017 (“the Goa GST Act”). Commissioner of State Tax hereby specify the jurisdiction of the Appellate Authority as under: –

2. CBIC urges public to discern the modus operandi of fraudsters, protect their information, verify antecedents of caller and report such acts by staying alert:

Various incidents have come to light through news portals/social media platforms of fraudulent persons posing as Indian Customs officers cheating the public of their hard-earned money across the country. These frauds are primarily done using digital means like phone calls or SMS, and are focused on extracting money through the ‘purported’ fear of immediate penal action.

In order to counter these frauds through public awareness, Central Board of Indirect Taxes and Customs (CBIC) is mounting a multi-modal awareness campaign that includes:

• Newspaper advertisements
• SMS/Emails to the general public
• Social Media Campaigns

Public awareness campaigns by CBIC field formations across the country in coordination with local administration and trade bodies to spread awareness on this issue.

3. CBIC advises the public to take the following measures to safeguard themselves from becoming a victim of such scams by:

• DISCERN:Indian Customs officers never contact the general public via phone, SMS, or e-mail for payment of duty in private accounts. Disconnect calls and never respond to messages, if you suspect fraud or encounter any irregularities.
• PROTECT:Never share or disclose personal information (Passwords, CVV, Aadhar number, etc.), or send money to unknown individuals or organizations without verifying their identity and legitimacy.
• VERIFY:All communications from Indian Customs consist of a Document Identification Number (DIN), which can be verified on the CBIC website:
• REPORT:Immediately report such cases to cybercrime.gov.in or helpline number 1930.

Some of the common modus operandi used by fraudsters are:

• Fake Calls/SMS: Fraudsters posing as Courier officials/staff contact via calls, text messages or emails claimingthat Customs have held a package or parcel and requires payment of Customs duties or taxes before it can be released.
• Pressure Tactics: Fraudsters impersonating Customs/Police/CBI officials demand payment of Customs duty/clearance fees for packages/gifts that purportedly have been received from a foreign country and require Customs clearance. Targeted individuals are asked to make payments for the release of their goods.
• Demand of Money: Targeted persons are informed that their package has been seized by Customs due to illegal contents (such as drugs/foreign currency/fake passport/contraband items) or violations of Customs regulations. Fraudsters threaten legal action or fines and demand payment to resolve the issue.

4. AAR & Important Judgements:

(i) The Hon’ble Kerala High Court Decision Regarding Notification extending the period of limitation for issuance of Show Cause Notice upheld:

(Applicant – Faizal Traders)

The Hon’ble Kerala High Court in the case of Faizal Traders Private Limited v. Deputy Commissioner, Central Tax and Central Excise, Palakkad [WP (C) No. 24810 of 2023 dated February 07, 2024] wherein the Hon’ble High Court upheld the Notifications relating to extending the period of limitation to COVID-19 for issuance of Show Cause Notice by invoking the powers under Section 168A of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

(ii) The Hon’ble Calcutta Highcourt Decision Regarding Appeal can be accepted after one month from the prescribed period of limitation:

(Applicant – Sushil Kumar Hazra)

The Hon’ble Kerala High Court in the case of Faizal Traders Private Limited v. Deputy Commissioner, Central Tax and Central Excise, Palakkad [WP (C) No. 24810 of 2023 dated February 07, 2024] wherein the Hon’ble High Court upheld the Notifications relating to extending the period of limitation to COVID-19 for issuance of Show Cause Notice by invoking the powers under Section 168A of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

(iii) CAAR On Classification of Roasted Areca Nuts and Cashew Nuts: CAAR Mumbai:

(Applicant – M/s TMK TRADERS)

In the instant application, the applicant has submitted that they are intending to import `Oven Roasted Areca Nuts’ from Burma, Indonesia, Sri Lanka and Thailand and ‘Oven Roasted and salted Cashew Nuts’ from Vietnam, Thailand and Malaysia. I find that names of these countries except the name of Sri Lanka are mentioned in the Appendix-I of the said notification. However, the name of I3urma is mentioned as Myanmar. Further, it is quite obvious from the said notification that at Sr. No. 172 exemption is extended to all goods classified under sub-headings from 2007 10 to 2008 20 and from the above discussions and findings, it is now settled that ‘Oven Roasted Areca Nuts’ and ‘Oven Roasted and salted Cashew Nuts’ merit classification under sub-heading 2008 19.

Disclaimer:

This publication contains information for general guidance only. It is not intended to address the circumstances of any particular individual or entity. Although the best of endeavour has been made to provide the provisions in a simpler and accurate form, there is no substitute to detailed research with regard to the specific situation of a particular individual or entity. We do not accept any responsibility for loss incurred by any person for acting or refraining to act as a result of any matter in this publication.

(Author is a well known Chartered Accountant practicing on direct and indirect taxes at Ahmedabad)