Update Regarding Hon’ble Bombay High Court
An Update Regarding Hon’ble Bombay High Court
1. Rule 89(5) – In Shree Traders vs Union of Indian & Ors. (WP No. 12453 of 2019)-
The petitioner is engaged in business of supplying goods on online portals such as myntra, flipcart, etc. The charges etc charged by these portal on input services attracts 18% of the tax rate whereas tax rate on outward supply is 5%. Hence this becomes a case of Inverted Duty Structure. Now this Rule 89(5) denies refund of accumulated credit due to input services which is against the scheme of Act. Hence we have challenged this rule. Hon’ble Bombay High Court was kind enough to issue notice. Similar matters we have challenged before Hon’ble Gujarat High Court also. You can Download PDF Regarding Hon’ble Bombay High Court
2. Notification no 20/2018 along with Circular No 56 and 94 –
In FT Textile Private Limited Vs Union of India & Ors (WP No 12452 of 2019) case of manufacturers of fabric the refund of accumulated credit on account of inverted duty structure was not allowed to be refunded. Notification 20/2018 was issued which provided for the Lapse of Credit and then circular 56 provided about how to lapse and then further Circular 94 provided about the interest to be levied in case there is delay in lapsing the credit. This we have challenged before Hon’ble Bombay High Court and the court was kind enough to issue notice. Similar challenge was decided in our favour by Hon’ble Gujarat High Court but not the said order is stayed by Hon’ble Supreme Court till the date of next hearing. You can Download PDF Regarding FT Textile Private Limited
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Dr. Avinash Poddar
Ahemdabad, India
Avinash Poddar, currently practicing as a lawyer, as a Law Graduate, a fellow member of Institute of Chartered Accountants of India, Certified Financial Planner, Microsoft Certified Professional and DISA (Diploma in Information Systems Audit) from ICAI. He has also completed various certificate courses of ICAI such as Arbitration, Forensic Accounting and Fraud Detection, Valuation, IFRS, Indirect Taxes. He has also completed post-graduate diploma is Cyber Crime (PGCCL).
