#CBIC Circular

CESTAT Ahmedabad has ruled that exported sugar is exempt from sugar cess under Notification SO.585(E) dated 30.07.1993, invalidating a Rs.77.50 lakh demand based on a conflicting CBIC circular. This clarifies that statutory exemptions prevail over departmental circulars, offering critical relief to sugar exporters and setting a precedent for tax compliance in agro-industrial supply chains.

Taxpayers facing GST recovery orders can now secure a stay on collection by filing a pre-deposit and undertaking under CBIC Circular 224/2024, even when the Appellate Tribunal remains unconstituted, provided compliance occurs within 15 days. This relief bridges a critical procedural gap for taxpayers awaiting appellate review, offering immediate financial protection without requiring tribunal formation.

CESTAT Mumbai holds that clarificatory CBIC circulars favoring taxpayers apply retrospectively, setting aside demand for differential IGST on poultry machinery parts.