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Snapshot-29-Snapshot of Latest GST Cases

-Activity of Gold Jewellery being melted into gold lumps-Margin Scheme
-C/f of Unadjusted VAT TDS in Tran-1
-Release of conveyance by Transporter U/s 129(6)
-Refund of IGST paid on Ocean Freight
-Section 129 and Section 130 of CGST Act

S.No

Section

CAse Subject

Case

Held

1

Section
15 and
Rule 32

Activity of Gold Jewellery
being melted into gold lumps,
not eligible to avail the
benefits of Rule 32(5) of
CGST Rules, 2017

White Gold
Bullion (P.) Ltd.
[2023] 151
taxmann.com 45
(AAR -
KARNATAKA)

Authority held that when applicant melts the gold jewellery into gold lumps, the nature of goods changes in as much as the
characteristics of the articles and the classification changes. Since the processing done by the applicant changes the nature of
goods, they are not eligible to avail the benefits of Rule 32(5) of CGST Rules, 2017. The HSN Code for Old Gold Jewellery is 7113
and after melting into gold lumps or irregular shapes of gold the HSN Code is 7108.

2

Section
140

Unadjusted VAT TDS
allowed to be carried forward
to the GST regime

P & C Projects
(P.) Ltd. v.
Assistant
Commissioner of
(ST)(FAC) [2023]
151 axmann.com
46 (Madras)

The High Court not observed that the order was a non-speaking order as no reasons had been given for rejecting the petitioner's
request for carrying forward of the unadjusted VAT TDS to the GST regime that too when the law was well settled by the decision
of the learned Single Judge, which also had attained finality as no Appeal had been filed against the said order as fairly admitted
by the learned Government Advocate appearing for the respondents. The impugned order was thus quashed.
Case Referred- M/s. DMR Constructions v. Assistant Commissioner, Commercial Tax Department, Rasipuram, Namakkal
District reported [2021] 125 taxmann.com 252 (Mad.)/[2021] 86 GST 82 (Mad.)

3

Section
129

Transporter can seek release
of the conveyance on deposit
of specified amount under
Section 129(6

Lodha Roadways
v. Deputy State
Tax Officer,
Inspection Cell-4
[2023] 150
taxmann.com
375 (Madras)

The High Court held that Section 129 provides for various situations where release of conveyance and goods may be sought and
Section 129(6) being specific to a transporter, thus enables a transporter to seek release of the conveyance in the circumstances
mentioned therein, being, upon payment of penalty under sub-section (3) or a sum of Rs.1.00 lakh, whichever is less.-

4

Section 5
of IGST
Act, 2017

Refund of IGST paid on
Ocean Freight

Etc Agro
Processing
(India) (P.) Ltd.
v. UOI [2023] 150
taxmann.com
376 (Gujarat)

The High Court held that since Entry No.10 of Notification No.10/2017- IGST (Rate) dated 28.6.2017 has already been declared
ultravires by Hon’ble Apex Court, therefore amount of Rs. 6,98,00,420/- paid by the petitioner as IGST on ocean freight of goods
imported during July, 2017 to December, 2019 be refunded alongwith the statutory rate of interest.
Case Referred- ADI Enterprises v. UOI being Misc. Civil Application No. 1 of 2020 in Special Civil Application No. 10479
of 2019

5

Section
129 and
Section
130

Exercise of powers under
Section 129 and thereafter
switching over to Section 130
and passing order
thereunder without availing
the petitioner the benefits of
release of goods under
Section 129

Rohit Company
v. Union of India
[2023] 150
taxmann.com
379 (Gujarat)

The petitioner contended that when the goods were in transit, the authorities intercepted the goods and confiscated them. In other
words, authorities sought to derive their powers for taking possession of the goods of the petitioner which were in transit under
Section 129 of the Act. It was submitted that the said Section begins with non obstante clause and it is a provision independent of
Section 130. In that context, it was submitted that exercise of powers under Section 129 and thereafter switching over to Section
130 and passing order thereunder without availing the petitioner the benefits of release of the goods under Section 129, could be
said to be without jurisdiction.
The High Court, by way of interim relief, directed that the goods of the petitioner as well as vehicle shall be released upon
satisfaction of conditions and admitted the petition and also directed the same to be listed with Special Civil Application No.8353
of 2022