Page 38 - GSTL_30th April 2020_Vol 35_Part 5

J90 GST LAW TIMES [ Vol. 35
The Government could also consider exempting them from other statu-
tory charges for some time.
Though there has been a demand for complete GST exemption, the Gov-
ernment is veering around to the view that suspending the tax will work better,
the official said. Exempting a sector from tax would mean breaking the credit
chain, leading to further problems down the line.
[Source : https://economictimes.indiatimes.com, dated 27-4-2020]

Government ban on export amounts to force majeure
The prohibition of the export of a commodity by the Government could
be considered as force majeure, according to the Supreme Court. It invoked the
principle last week for setting aside an international award in the appeal case,
NAFED v. Alimenta. According to the 30-year-old award delivered by the Federa-
tion of Oil, Seed and Fat Association, the National Agricultural Cooperative
Marketing Federation had to pay $ 4,681,000 with a 10.5 per cent interest from
1981 to the Swiss firm. The Supreme Court, while overruling the Delhi High
Court, stated the contract to export groundnut itself was against basic law and
public policy. Besides, the contract was so unfair that the Government rightly
declined permission to export the commodity. The supply could not have been
made without the permission of the Government. It could not be supplied be-
cause of force majeure, the judgment said.
[Source : Business Standard, New Delhi, dated 27-4-2020]

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GST LAW TIMES  30th April 2020  38
( A90 )