Amendment in Rule 89(4) Introducing Comparison of Tax Invoice & Shipping Bill is Not Clarificatory in Nature | HC

  • Blog|News|GST & Customs|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 6 September, 2023

Recent Posts

Blog, News, Account & Audit

Impact of Deferred Tax on the Right of Return of Goods – Ind AS 12

Blog, Advisory, Company Law

[Analysis] SEBI Board Meeting Highlights [Dec. 2024] – Stricter Norms for SME IPOs | Use of AI Tools | Expansion of the UPSI Definition

Latest from Taxmann

Amendment in Rule 89(4)

Case Details: Tata Steel Ltd. v. Union of India - [2023] 154 taxmann.com 76 (Jharkhand)

Judiciary and Counsel Details

    • Rongon Mukhopadhyay & Deepak Roshan, JJ.
    • Tarun Gulati, Sr. Adv. Sumeet Gadodia & Salona Mittal, Advs. for the Appellant.
    • Anil Kumar, P.A.S. Pati & Mrs Ranjana Mukherjee, Advs. for the Respondent.

Facts of the Case

In this petition, the refund claim of petitioner was rejected on the ground that while processing refund claims in case of exports, lower of values indicated in tax invoice and shipping bill should be taken into account. It filed writ petition and contended that amendment brought in rule 89 (4) of CGST Rules, 2017 which introduced comparison between values indicated in tax invoice and shipping bill would have a prospective effect.

High Court Held

The Honorable High Court noted that the CBIC has inserted a new stipulation for comparison between two values being values indicated in tax invoice and shipping bill. A policy can be changed only by way of an amendment under parent Act and not by a circular and policy change will be effective from date of amendment.

Moreover, no retrospective date has been indicated in Notification No. 14/ 2022-Central Tax dated 5-7-2022 for bringing amendment under Rule 89 (4). Therefore, by way of amendment, a substantive change has been brought in law and it ought to operate prospectively since mere use of term explanation will not be indicative of fact that amendment is clarificatory/declaratory. Thus, the Court held that the period involved in the instant case was prior to amendment and the impugned order deserved to be quashed and set aside.

List of Cases Reviewed

List of Cases Referred to

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«
»

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied