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2019 (2) TMI 542 – GUJARAT HIGH COURT – TMI – CENVAT Credit – credit of eligible duties in respect of inputs held in stock on the appointed day – Held that;- No documents have been prescribed under the Central Goods and Services Tax Rules; under the circumstances, when the petitioner has produced documents evidencing payment of duty, he is entitled to the credit in respect thereof – Issue Notice returnable on 27th February, 2019. – R/SPECIAL CIVIL APPLICATION NO. 2409 of 2019 Dated:- 6-2-2019 – MS HARSHA DEVANI AND DR A. P. THAKER, JJ. For The Petitioner : UCHIT N SHETH (7336) ORDER (JUSTICE HARSHA DEVANI) 1. Mr. Uchit Sheth, learned advocate for the petitioner has invited the attention of the court to the provisions of section 140 of the

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scribed documents evidencing payment of duty under the existing law in respect of such inputs. It was submitted that in the facts of the present case, no documents have been prescribed under the Central Goods and Services Tax Rules; under the circumstances, when the petitioner has produced documents evidencing payment of duty, he is entitled to the credit in respect thereof. 2. Having regard to the submissions advanced by the learned advocate for the petitioner, Issue Notice returnable on 27th February, 2019. By way of ad-interim relief, the respondents are restrained from making any coercive recovery against the petitioner in connection with the subject matter of this petition. Direct Service is permitted qua respondent No.2 only. – Case

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GST – States – 21/GST-2 – Dated:- 6-2-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Order The 6th February, 2019 No. 21/GST-2.-WHEREAS, Sub-section (1) of Section 10 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) (hereafter in this Order referred to as the said Act) provides that- (i) a registered person engaged in the supply of services, other than supply of service referred to in clause (b) of paragraph 6 of Schedule II to the said Act, may opt for the scheme under the said sub-section; (ii) a person who opts for the said scheme may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II to the said Act), of value not exceeding ten per cent of turnover in the State in the precedi

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W, THEREFORE, in exercise of the powers conferred by Section 172 of the Haryana Goods and Services Tax Act, 2017 and in supersession of the Haryana Government, Excise and Taxation Department, Order No. 105/ST-2, dated the 13th October, 2017 except as respects things done or omitted to be done before such supersession, the Governor of Haryana, on recommendations of the Council, hereby makes the following Order, namely:- 1. Short title.- This Order may be called the Haryana Goods and Services Tax (Removal of Difficulties) Order, 2019. 2. For the removal of difficulties, it is hereby clarified that the value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of inte

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GST – States – 22/GST-2 – Dated:- 6-2-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Corrigendum The 6th February, 2019 No. 22/GST-2.- In the Haryana Government, Excise and Taxation Departm

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2019 (2) TMI 1398 – GUJARAT HIGH COURT – TMI – Attachment on the petitioner’s cash credit – existence of debtor-creditor relationship – recovery of dues – Held that:- This court in the case of Kaneria Granito Ltd. v. Assistant Commissioner of Income Tax, [2016 (7) TMI 65 – GUJARAT HIGH COURT], wherein it has been held that cash credit accounts were opened to enable the assessee to borrow the money from the bank for the purpose of its business. Any money, therefore, that the bank may make available to the assessee would necessarily be in the nature of a loan or a cash credit facility, in either case, would be in the nature of borrowing by the assessee from the bank. The bank and the assessee, therefore, do not have the debtor-creditor relat

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ht of the decision of this court in the case of Kaneria Granito Ltd. v. Assistant Commissioner of Income Tax, (2016) 241 Taxman 315 (Gujarat), wherein the court has held that cash credit accounts were opened to enable the assessee to borrow the money from the bank for the purpose of its business. Any money, therefore, that the bank may make available to the assessee would necessarily be in the nature of a loan or a cash credit facility, in either case, would be in the nature of borrowing by the assessee from the bank. The bank and the assessee, therefore, do not have the debtor-creditor relationship. This court after placing reliance upon various decisions of the Supreme Court, set aside the impugned notice of attachment. 4. In the aforesai

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2019 (3) TMI 68 – GUJARAT HIGH COURT – TMI – Attachment of Bank accounts of petitioner – section 83 of the Central Goods and Service Tax Act, 2017 – case of petitioner is that it is difficult for the petitioner company to manage its day-to-day affairs and that in view of the property which has been offered by way of security which is unencumbered and the value of the property is ₹ 2.75 crore, the attachment over the bank accounts may be released – Held that:- By way of interim arrangement, the respondent No.1 is directed to release the attachment over the bank accounts of the petitioner referred to hereinabove, subject to Shri Ashwinkumar Jayantibhai Patel and Shri Jashvantkumar Jayantibhai Patel, father and uncle of Mitesh Ashwinkumar Patel, one of the Directors of the company, permitting attachment of the property described hereinabove for release of the bank accounts – To secure the interest of the revenue, the petitioner shall also maintain an amount of ₹ 50,00,000/- i

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unsel for the petitioners has invited the attention of the court to the affidavit-in-rejoinder filed on behalf of the petitioners, to point out that the petitioners have categorically averred therein that if it is found necessary as a condition of releasing the attachment over the bank accounts of M/s. Nandeshwari Steel Limited., the uncle and father of the Director of M/s. Nandeshwari Steel Limited, namely, Patel Jashvantkumar Jayantibhai and Patel Ashwinkumar Jayantibhai respectively are ready and willing to offer their property for attachment in order to secure interest of the Government revenue. The details of the property and the affidavits of the said persons have been annexed along with the rejoinder. Shri Ashwinkumar Jayantibhai Patel has stated on oath that he is the joint owner of the property situated at Block/Survey No.406 (Old No.79), Khata No.502, H. Ra. 1-15-40 Paiki 0-45-58, Village Zak, Taluka Dehgam, District Gandhinagar and the other joint owner of the said property

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petitioner, while releasing the bank accounts, the petitioner may be directed to maintain such amount as the court deems fit, in the said bank accounts. 5. In the light of the above, by way of interim arrangement, the respondent No.1 is directed to release the attachment over the bank accounts of the petitioner referred to hereinabove, subject to Shri Ashwinkumar Jayantibhai Patel and Shri Jashvantkumar Jayantibhai Patel, father and uncle of Mitesh Ashwinkumar Patel, one of the Directors of the company, permitting attachment of the property described hereinabove for release of the bank accounts. Shri Ashwinkumar Jayantibhai Patel and Shri Jashvantkumar Jayantibhai Patel shall also file an undertaking before this court in respect of the property which has been offered by them for attachment for release of the bank accounts of M/s. Nandeshwari Steel Limited within a period of one week from today. To secure the interest of the revenue, the petitioner shall also maintain an amount of &#837

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GST – Started By: – VEMULA CHANDRASEKHAR – Dated:- 5-2-2019 Last Replied Date:- 6-2-2019 – We are making outward supply of an scrap conveyor belt what should be the HSN code & at what GST Rate it should b sold? – Reply By Rajagopalan Ranganathan – The Reply = Sir,Please indicate the constituent material out of which the conveyor belt is made of. Then only it is possible to classify the waste conveyor belt. – Reply By KASTURI SETHI – The Reply = HSN 4004.0000 GST @18% See Notification No.1/1

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GST – Started By: – Rajesh kumar – Dated:- 5-2-2019 Last Replied Date:- 5-2-2019 – R/SONE PERSON REGISTER UNDER GST. HIS SALE MANUFACTURE PRODUCT FALL UNDER @ 12% BUT ON INPUT GOODS RATE IS 12 AND 18%. SO IN THIS CASE HOW I CALCULATE OF AMOUNT FOR REFUND UNDER INVERTED DUTY . PLS HELP – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to rule 89 (5) of CGST Rules, 2017, In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula :- Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services. Explanation : – For the purposes

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GST – Started By: – Yogesh Ashar – Dated:- 5-2-2019 Last Replied Date:- 6-2-2019 – Dear Sir There is logistic movement from a place outside India to a destination outside India. The Service Provider is an Indian Forwarder and the Recipient is an Indian Company. The goods do not touch the shores of India. 1. Whether in view of the Amendment in IGST act , this transaction will be exempt from tax. 2. Whether it can be treated as export as the condition of Service recipient outside India is not fullfilled. The money may be received in foreign currency as transfer from EEFC account by the Service Recipient. 3. Impact due to Sec 7(5) and whether IGST will be applicable regards Yogesh Ashar – Reply By Mahadev R – The Reply = The amended Section 1

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ly = Intelligent interpretation and analysis by Sh.Mahadev R. – Reply By Yogesh Ashar – The Reply = Dear Sir They have added this transaction in Schedule III to the CGST Act. In view of this will it be exempt regards – Reply By Spudarjunan S – The Reply = Dear Yogesh Ashar sir, Through the CGST Amendment Act, 2018 the entry no.7 which has been added is only for SUPPLY OF GOODS the same is extracted below:- 32. In Schedule III of the principal Act, – (i) after paragraph 6, the following paragraph shall be inserted, namely:- 7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India. In your given case the supplier is providing services (i.e. Logistics serv

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GST – Started By: – Chandra n – Dated:- 5-2-2019 Last Replied Date:- 6-2-2019 – SirI want to file my returns from september 2018 but the gstin has been cancelled.helpdesk says file returns to revoke.How to file returns when the gstin number is cancelled.I saw in your query one Mr.ravi had the same problem.How to file returns online when it is inactive.matter most urgent – Reply By KASTURI SETHI – The Reply = What is the date of cancellation of registration ? A period of 30 days is allowed for filing application revocation of cancellation of registration certificate. Have you applied for revocation within stipulated period ? What I think you could file returns and deposit Govt. dues, if, any within that period of 30 days. See Rule 23 of CGS

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Goods and Services Tax – GST – By: – Kumar Kedia – Dated:- 5-2-2019 Last Replied Date:- 25-2-2019 – The Government notifies the applicability of the following acts from 1st February 2019:- CGST (Amendment) Act, 2018 vide notification 2/2019- CGST dated 29.01.2019 IGST (Amendment) Act, 2018 vide notification 1/2019 – IGST dated 29.01.2019, UTGST (Amendment) Act, 2018 vide notification 1/2019- UTGST dated 29.01.2019 GST (Compensation to States) Amendment Act, 2018 vide notification 1/2019- GST Compensation Cess Government also notified the corresponding changes in the rules through CGST (Amendment) Rules 2019 vide notification 3/2019- CGST. It was apprised by the notification that few amendments made by the Acts shall not be made applicable from 01-02-2019 which included the provisions related to new return system and the corresponding changes thereby. We can say that Government has taken few major steps in making GST a Good and Simple Tax for the business but still there are lot more c

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;. services provided by activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club; and ….. Analysis:- The amendment is made to confirm that all the activities related to race club are included in the definition of business. Section 2(18)-Definition of Business Vertical business vertical means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals. Explanation.-For the purposes of this clause, factors that should be considered in determining whether goods or services are related include- (a) the nature of the goods or services; (b) the nature of the production processes; (c) the type or class of customers for the goods or services; (d) the methods used to distribute the goods or supply of services; and (e) the nat

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onsidered local authority. The article is inserted in the Constitution for the development of backward areas of Hyderabad-Karnataka region. Section 2(102)-Definition of Service services means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged; Explanation.-For the removal of doubts, it is hereby clarified that the expression services includes facilitating or arranging transactions in securities. Analysis:- The terms money and securities are excluded from the definition of goods and services as per CGST Act, 2017. However, activities relating to use of money are covered in the definition of services as per CGST Act. But now explanation is inserted to give the clarification that facilitating or arranging transactions in securities such as service charge, broking ch

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ate Legislature; or (ii) established by any Government, with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a Panchayat under article 243G or to a municipality under article 243W of the Constitution; Analysis:- Government added the reference to Panchayat under article 243G in meaning of Governmental authority Amendment in the Scope of Supply Section 7(1) and 7(3)- Scope of Supply (1) For the purposes of this Act, the expression supply includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business and; (c) the activities specified in Schedule I, made or agreed to be made without a consideration (d) the activities to be treated as supply of goods or supply o

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7(1) to remove Schedule II from the definition of Supply. Further Sub-section (1A) to Section 7 was inserted to state that transactions listed in Schedule II will only be taxed when they constitute supply as per sub-section 1 of Section 7. Corresponding change have been made in sub section 3 of Section 7 This amendment shall be deemed to have been applied from 1-7-2017 i.e. retrospective amendment. Schedule I- Supply made without consideration 1…. 2…. 3… 4. Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business. Analysis:- This amendment is made to cover even the unregistered persons who import the services from a related person or his other establishment outside India without any consideration in the ambit of GST and such entities shall be liable to tax. Heading of Schedule II ACTIVITIES OR TRANSACTIONS TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES Analy

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goods from Non taxable territory to Non Taxable territory directly) Sale of imported warehoused goods i.e. before payment of custom duty. High Seas Sales i.e. Sale after dispatch from port outside India but before reaching the destination port in India. Further, section 17(3) is amended to provide that no reversal of common credit shall be required in relation to any transactions listed in Schedule III. Reverse Charge Section 9(4)- Reverse Charge in case of procurement from Unregistered person (4) The central tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. (4) The Government may, on the recommendations of the Council, by notification, specify a class of registered pe

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eding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding,- (a) one per cent. of the turnover in State or turnover in Union territory in case of a manufacturer, (b) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and (c) half per cent. of the turnover in State or turnover in Union territory in case of other suppliers, subject to such conditions and restrictions as may be prescribed: Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore rupees one crore and fifty lakh rupees, as may be recommended by the Council. Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (

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crease from 1- April-2019. Prior to amendment, a composition dealer was not allowed to supply services (other than restaurant services). However, this amendment allows supply of services (other than restaurant services) to the limit of 10% of the turnover in a State/ Union Territory in the preceding year or ₹ 5,00,000 whichever is higher. Corresponding changes have been done in the form GSTR-4 to give effect to supply of services by a composition dealer. However, it should be clarified that this limit is for the supply of taxable services whereas the supply of exempt service along with supply of goods or restaurant service is already allowed by the order no 1/2017 dated 13.10.17. It should also be clarified that whether inter-state supply of service is allowed under this amended scheme. Rule 7- Rate of tax of Composition levy Sl. No. Category of registered persons Rate of tax (1) (2) (3) 1. Manufacturers, other than manufacturers of such goods as may be notified by the Government

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ice by the supplier or the last date on which he is required, under sub section 1 of section 31, to issue the invoice with respect to the supply; or (b) the date on which the supplier receives the payment with respect to the supply: Provided that where the supplier of taxable goods receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice in respect of such excess amount. Analysis:- This amendment is in the view to correct the drafting error to include issue of invoice or other documents contained in section 31 such as in case of continuous supply, goods sale on approval basis etc. for the purpose of time of supply Section 13(2)- Time of Supply of Services The time of supply of services shall be the earliest of the following dates, namely:- (a) the date of issue of invoice by the supplier, if the invoice is issued wit

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f time of supply. Input Tax Credit Section 16(2)(b)- Conditions for availing ITC (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation.-For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services- (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of

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ragraph 5 of the said Schedule. Analysis An explanation is inserted to clarify that no reversal of common ITC shall be required on activities or transactions specified in Schedule III (other than sale of land and subject to clause (b) of paragraph 5 if Schedule II, sale of building) as it is now excluded from exempt supply. Section 17(5)-Blocked Credit (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles and other vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:- (A) further supply of such motor vehicles; or (B) transportation of passengers; or (C) imparting training on driving such motor vehicles; Analysis:- ITC is not available only in respect of motor vehicles used for transporta

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t of such services shall be available- (i) where the motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) are used for the purposes specified therein; (ii) where received by a taxable person engaged- (I) in the manufacture of such motor vehicles, vessels or aircraft; or (II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him; Analysis:- No ITC shall be allowed for repairing, insurance service in relation to motor vehicles or vessels and aircraft unless they are used for the purposes specified in clause (a) and clause (aa) respectively. Also, ITC in relation to repairing, insurance service in relation to motor vehicles or vessels and aircraft shall be available to the manufacturer of such motor vehicles or aircraft or to the taxable person engaged in supply of general insurance services of such motor vehicles or vessels and aircraft. (b) the following supply of goods or services or both- (i) food and

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d person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and (iii) travel benefits extended to employees on vacation such as leave or home travel concession: Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force. Analysis:- ITC in respect of food or beverages, beauty or cosmetic services, health services, life insurance, hiring of motor vehicles, aircraft and vessels shall be available where inward supply of such goods or services or both is used for making outward supply of same goods or services or both. Further, ITC in respect of food or beverages, beauty or cosmetic services ,health services, life insurance, hiring of motor vehicles, aircraft and vessels and travel benefits extended to employee shall be available where it is obligat

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p; (ii)…. (iii) the expression special category States shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand. Analysis:- This amendment is made to give effect to increase threshold limit in state of J&K, Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand from 10 Lakhs to 20 Lakhs. Section 24- Compulsory registration in certain cases (24) Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act:- (i)…….. (x) every electronic commerce operator who is required to collect tax at source under section 52 Analysis:- Now only those e-commerce operators who are required to collect TCS shall be required to take registration and others may take the benefit of threshold limi

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at a person having multiple business vertical places of business in a State or Union territory may be granted a separate registration for each such business vertical place of business, subject to such conditions as may be prescribed. Rule 11- Separate registration for multiple places of business within a State or a Union territory. 11….(Substituted) (1) Any person having multiple places of business within a State or a Union territory, requiring a separate registration for any such place of business under sub-section (2) of section 25 shall be granted separate registration in respect of each such place of business subject to the following conditions, namely:- (a) such person has more than one place of business as defined in clause (85) of section 2; (b) such person shall not pay tax under section 10 for any of his places of business if he is paying tax under section 9 for any other place of business; (c) all separately registered places of business of such person shall pay tax un

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arate registration for each place of business in case of multiple places of business within a state and hence substituted Rule 11 of CGST Rules and amended Section 25. It is clarified in Explanation to Rule 11 that if any place becomes ineligible for opting composition scheme, all other places shall also become ineligible for composition scheme. It is stated that a person opts normal/ regular scheme for one place of business than he cannot opt for composition scheme in any other place of business. Separate application in form REG-1 shall be submitted for each place of business and an amendment to give effect to this provision is also made in FORM REG-1 It is also provided that in case of branch transfers within state where branches have different registrations a proper tax invoice shall be raised. A person having SEZ unit or SEZ developer shall apply for separate registration from his place of business outside SEZ Area. This amendment is made by inserting second proviso to Section 25.

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clarified that the value of assets means the value of the entire assets of the business whether or not input tax credit has been availed thereon. (2) The newly registered person (transferee) shall, on the common portal, accept the details so furnished by the registered person (transferor) and, upon such acceptance, the unutilised input tax credit specified in FORM GST ITC-02A shall be credited to his electronic credit ledger. Analysis:- A registered person taking multiple registration in State if intends to transfer the ITC to the newly registered entity then he shall file the details of ITC to be transferred in FORM ITC 02A (newly inserted in Forms) within 30 days of obtaining separate registration. ITC shall be transferred in the ratio of value of assets held by those multiple entities at the time of registration. The newly registered person shall accept the details furnished by the transferor which will then reflect into the ITC ledger of newly registered person. Proviso to Section

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section 29 or under rule 21, he may, after affording the said person a reasonable opportunity of being heard, suspend the registration of such person with effect from a date to be determined by him, pending the completion of the proceedings for cancellation of registration under rule 22. (3) A registered person, whose registration has been suspended under sub-rule (1) or sub-rule (2), shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39. (4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22 and such revocation shall be effective from the date on which the suspension had come into effect. Analysis:- Proviso to Section 29(1) and 29(2) is inserted to provide that from the time when a person applies for cancellation of registration till the time such application is proceeded, the registration of th

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lied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed. (2) Any registered person who issues a credit note one or more credit notes for supplies made in a financial year in relation to a supply of goods or services or both shall declare the details of such credit note in the return for the month during which such credit note has been issued but not later than September following the end of the financial year in which such supply was made, or the date of furnishing of the relevant annual return, whichever is earlier, and the tax liability shall be adjusted in such manner as may be prescribed: Provided that no reduction in output tax liability of the supplier shall be permitted, if the incidence of tax and interest on such supply has been passed on to any other person. (3) Where a tax invoice has one or more tax invoices have been issued for supply of

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and any combination thereof, unique for a financial year; (e) date of issue of the document; (f) name, address and Goods and Services Tax Identification Number or Unique Identity Number, if registered, of the recipient; (g) name and address of the recipient and the address of delivery, along with the name of State and its code, if such recipient is un-registered; (h) serial number and date of the corresponding tax invoice or, as the case may be, bill of supply; (i) value of taxable supply of goods or services, rate of tax and the amount of the tax credited or, as the case may be, debited to the recipient (j) signature or digital signature of the supplier or his authorised representative. (1A) A credit or debit note referred to in section 34 shall contain the following particulars, namely:- (a) name, address and Goods and Services Tax Identification Number of the supplier; (b) nature of the document; (c) a consecutive serial number not exceeding sixteen characters, in one or multiple s

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her, Government amended Rule 53 to distinguish the mandatory requirements in the issue of Revised invoice and in the issue of debit note or credit note. Revised invoice can be issued in one month of registration for all supplies done from the date on which registration was applied till the date registration was granted. By separating the requirements for revised invoice and debit or credit note the requirement for nature of document in case of Revised invoice remains of no use and hence deleted. Also, the requirement for stating the taxable value, rate of tax, amount of tax credited or debited in case of Revised invoice remains of no use and hence deleted. However, new Sub-Rule (1A) was inserted to provide the mandatory requirements for the issue of credit note or debit note (As provided above). Detail of all invoices against which a single credit note or debit note has been issued shall be provided. Hence, a credit note or debit note shall still be linked with a single or multiple inv

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ts of local authorities under any law for the time being in force. Rule 80(3)-Reconciliation Statement Every registered person other than those referred to in the proviso to sub-section (5) of section 35, whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner. Analysis:- The insertion of Proviso to Section 35(5) and amendment to Rule 80(3) exempts the department of CG, SG or a local authority whose books are subject to audit by CAG or by an auditor appointed under any law, from the requirement of GST Audit. GST Practitioners Section 48(2)- GST practitioners (2) A registered person may authorise an approved goods and services tax practitioner to furnish t

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thdraw from the said scheme: Provided that where any application relating to a claim for refund or an application for amendment or cancellation of registration or where an intimation to pay tax under composition scheme or to withdraw from such scheme has been submitted by the goods and services tax practitioner authorised by the registered person, a confirmation shall be sought from the registered person and the application submitted by the said practitioner shall be made available to the registered person on the common portal and such application shall not be further proceeded with until the registered person gives his consent to the same Analysis:- The amendment in Section 48(2) and substitution of Rule 83(8) allows GST practitioners to perform many other functions as specified above such as furnishing of returns, filing of refunds, generation of e-way bill, cancellation of registration etc. It is also provided that if a GST practitioner either files claim for refund or an applicatio

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ted date i.e. 31st December, 2019. Payment of Tax Section 49(5)- Payment of Tax (5) The amount of input tax credit available in the electronic credit ledger of the registered person on account of:-​​​​​​​ (a)… (b)…. (c) the State tax shall first be utilised towards payment of State tax and the amount remaining, if any, may be utilised towards payment of integrated tax; Provided that the input tax credit on account of State tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax (d) the Union territory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax; Provided that the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax only where the balance of the input tax credit on acco

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used for the payment of IGST, CGST and SGST as the case may be subject to the condition that CGST and SGST cannot be cross utilised for the payment of tax. Section 49B- Order of utilisation of input tax credit Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax, as the case may be, towards payment of any such tax. Analysis:- New Section 49B is inserted to provide that Government may decide the order of utilisation of ITC on account of IGST, CGST and SGST subject to the condition that CGST and SGST cannot be cross utilised. Point to be noted:- Reference of the new sections 49A and 49B have also been given in the Rules 85 and Rule 86 by way of amendment to give effect to the procedure of payment

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nomic Zone developer. Analysis:- Section 54(8) provides with the situations where Refund of Tax can be claimed by applicant without checking the principal of unjust enrichment. Principal of unjust enrichment means that no person can take refund of tax without actually bearing the incidence of tax. As GST is an indirect tax it is assumed that the incidence of tax is borne by the recipient of supply. Prior to the amendment, refund on the account of zero rated supply could be applied by person making such supply where zero rated supply means (i) Export or (ii) Supply to SEZ Unit or SEZ developer. Government is proposing to allow DTA unit to recover the tax amount from SEZ Unit or SEZ Developer and allow the ITC of the same to SEZ unit. Therefore, in this case SEZ unit will bear the tax burden, so, refund should be claimed by SEZ unit/ Developer. Hence, Government wants to apply principal of unjust enrichment on supply made to SEZ Unit or SEZ developer and therefore the Refund of tax will

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claim for refund arises. Rule 91- Grant of provisional refund (2) The proper officer, after scrutiny of the claim and the evidence submitted in support thereof and on being prima facie satisfied that the amount claimed as refund under sub-rule (1) is due to the applicant in accordance with the provisions of sub-section (6) of section 54, shall make an order in FORM GST RFD-04, sanctioning the amount of refund due to the said applicant on a provisional basis within a period not exceeding seven days from the date of the acknowledgement under sub-rule (1) or sub-rule (2) of rule 90. Provided that the order issued in FORM GST RFD-04 shall not be required to be revalidated by the proper officer. (3) The proper officer shall issue a payment advice in FORM GST RFD-05 for the amount sanctioned under sub-rule (2) and the same shall be electronically credited to any of the bank accounts of the applicant mentioned in his registration particulars and as specified in the application for refund. Pr

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applicant mentioned in his registration particulars and as specified in the application for refund. Provided that the order issued in FORM GST RFD-06 shall not be required to be revalidated by the proper officer: Provided further that the payment advice in FORM GST RFD-05 shall be required to be revalidated where the refund has not been disbursed within the same financial year in which the said payment advice was issued. Analysis:- Government inserted the proviso to Rule 92(4) to provide that in the case where refund is not disbursed order issued by officer in GST RFD-06 form for grant of refund under section 54(8) shall not be revalidated and only payment advice issued in FORM GST RFD 05 shall be revalidated if refund is not disbursed within same financial year in which said payment advice was issued. Rule 96A- Export of goods or services under bond or Letter of Undertaking (1) Any registered person availing the option to supply goods or services for export without payment of integrat

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gn with the above permission. Point to be noted: Same amendment has been made in the Explanation 2(c) of Section 54 to align it with RBI permission. Recovery of Tax Section 79(4)- Recovery of Tax (4) Where the amount recovered under sub-section (3) is less than the amount due to the Central Government and State Government, the amount to be credited to the account of the respective Governments shall be in proportion to the amount due to each such Government. Explanation.- For the purposes of this section, the word person shall include distinct persons as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25. Analysis:- Government inserted the explanation to Section 79(4) in order to ensure that recovery of tax can be made from the distinct persons present in different states/ UTs for fast recovery from other establishments of registered person. Appeals Section 107(6)- Appeals to Appellate Authority (6) No appeal shall be filed under sub-section (1), unless

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he disputed tax amount but subject to the ceiling limit of ₹ 25 Crore for filing the appeal to Appellate Authority. As per the amendment in Section 112(6) an appellant shall pay 20% of the disputed tax amount but subject to the ceiling limit of ₹ 50 Crore for filing the appeal to Appellate Tribunal. Changes are also made in the FORMS GST APL-01 and GST APL-05 in correspondence with the above changes Point to be noted: In correspondence of above amendment, A new proviso to Section 20 of IGST Act has been inserted to put a ceiling of 50 Crore for filing appeal to Appellate Authority and ₹ 100 Crore for filing appeal to Appellate Tribunal. Detention or Seizure of Goods Section 129(6)- Detention, seizure and release of goods and conveyances in transit (6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (1) within seven days fourteen days of such detention or seizure, further proceeding

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hellip; Explanation 2.-For the purposes of sub-sections [(1)* (not yet notified)] and (5), the expression eligible duties and taxes means- (i)… (iv) the additional duty of excise leviable under section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978; (v) … Explanation 3.-For removal of doubts, it is hereby clarified that the expression eligible duties and taxes excludes any cess which has not been specified in Explanation 1 or Explanation 2 and any cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975. Analysis:- This amendment is deemed to be applied from 01-07-2017. The amendment is made in order to allow carry-forward of only eligible duties as the transitional credit. Also, the additional duty of excise leviable under section 3 of Additional Duties of Excise Act, 1978 is removed from the list of eligible duties as per Explanation 1 and Explanation 2. It is further clarifie

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than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be: Provided….. Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively. Analysis:- A registered person can send inputs and capital goods to job worker without payment of tax with a condition to either bring back or supply such inputs or capital goods within 1 year and 3 years respectively. Now amendment is made that this time limit of 1 year for inputs and 3 years for capital goods can be extended on a sufficient cause for a further period of 1 year in case of inputs and 2 years for capital goods. Place of Supply (IGST Act) Section 12(8) of IGST Act- Place of supply of Transportat

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rocess and are exported after repairs or treatment or process without being put to any other use in India, other than that which is required for such repairs or treatment or process; Analysis:- This amendment is made by inserting treatment or process in the proviso so that the Job work on any such goods which are temporarily imported in India and exported after any treatment or process remains out of the ambit of tax. These are the major amendments as made effective by the applicability of the amendment acts passed. Trust the same is useful for you. By CA Kumar Kedia – Reply By KASTURI SETHI – The Reply = Sh.Kumar Kedia Ji, Really you have worked hard. Excellent compilation, interpretation and analysis indeed. I have saved your article on my desktop as ready recknor. Thanks a lot for such useful contribution. – Reply By Kumar Kedia – The Reply = Thank you so much Kasturi Sir .This means a lot to me. Thank you so much for your appreciation. – Reply By VIKASH KHARA – The Reply = Respecte

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Corrigendum – Notification No. 3/2019-Central Tax, dated the 29th January, 2019 – GST – F. No. 20/06/16/2018-GST (Pt. I) – G.S.R. 91(E) – Dated:- 5-2-2019 – MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) CORRIGENDUM New Delhi, the 5th February, 2019 G.S.R. 91(E).-In the notification of the Government of India, in the Ministry of Finance, Department of Revenue, No.3/2019-Central Tax, dated the 29th January, 2019, published in the Gazette of India, Extrao

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Customs – PUBLIC NOTICE NO. 11/2019 – Dated:- 5-2-2019 – OFFICE OF THE COMMISSIONER OF CUSTOMS (NS-II), MUMBAI ZONE-II, JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA, TALUKA: URAN, DISTRICT: RAIGAD, MAHARASHTRA-400707. F. No. S/12-Gen-misc -07/2018-19/ AM (X) Date: 05.02.2019 PUBLIC NOTICE NO. 11/2019 Subject: IGST Export Refunds-resolution of errors- reg. Attention of all exporters, customs brokers, and all other stake holders is invited to the Board Circular No. 01/2019-Customs, dated 02.01.2019, on the subject mentioned above. The processing of IGST refund claims on exports is fully automated. Majority of refunds claims are getting processed and sanctioned within five days of filing of GSTR-1 and GSTR-3B returns. However, in a few cases, particularly for the LCL cargo consignments originating from ICDs, Export General Manifest (EGM) related errors continue to hinder smooth and automatic sanction of IGST refund claims. It has been observed that the main reasons for such EGM errors stil

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carriers / shipping lines operating at ICDs / gateway ports should file EGM online. It is reiterated that the first step would be that the concerned stakeholders at the originating ICDs file the local EGMs online. (ii) Where the export goods are directly moved by truck to the gateway port, in such cases, filing the local EGM timely should not pose any problem. At inland ICDs/CFSs connected by train, the local EGM should be filed before the goods actually move out of ICD/CFS. In ICDs / CFSs not connected by train but where the movement of export goods begins from the nearest train-based ICD/CFS, it has been observed that local EGMs are not being filed as the train number is not known to the custodian for the want of rail receipt. In such cases, it must be ensured that local EGM is filed by the custodian immediately after getting train details in which containers are moving to gateway port, but in any case, before the train leaves for the gateway port. (iii) Non-filing of EGMs clearly in

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bill of lading, a copy of which would be handed over to the custodian. After necessary endorsements regarding inspection, the transference copy would be returned to the originating ICD/CFS. Thus, the custodian of the CFSs or gateway port bears the responsibility to maintain all records with regard to LCL cargo consolidated at their premises. Subsequently, vide Circular No. 08/2018- Customs, instead of the said transference copy, correlation with final bill of lading or written confirmation from the custodian of the gateway CFS was permitted for purposes of integration of the local and gateway EGM. (ii) In some field formations a tally sheet is being maintained in the form of Container Load Plan (CLP) which is prepared by shipping lines and gives details of packages stuffed in the container. Cargo is destuffed under customs supervision based on Container De-stuffing Plan (CDP). Preparing CLP/CDP does not absolve the custodian of the responsibility of keeping account of the cargo being h

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cers. (iv) For those shipping bills in respect of which no gateway EGM was filed in the first place, the shipping line can file supplementary EGM for successful integration. (v) Responsibilities and liabilities of custodians have been provided in detail in the Handling of Cargo in Customs Areas Regulations, 2009. Regulation 6 clearly casts the responsibility of keeping account of export goods on the Customs Cargo Service Provider (CCSP). Further, the procedure for suspension or revocation and imposition of penalty is provided in Regulation 12 which liable to be resorted to in cases where CCSP fails to comply with the regulations. This would be strictly enforced after following due process in instances of persistent non-compliance. (viii) Export of goods out of India is an essential condition for grant of IGST refund as provided in Rule 96 of CGST Rules, 2017. It therefore warrants verification whether the goods were indeed exported out of India where the IGST refund claims have been lo

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HUSKY INJECTION MOLDING SYSTEMS (INDIA) PRIVATE LIMITED Versus THE COMMISSIONER OF STATE TAX KERALA GST TAX TOWER, THIRUVANANTHAPURAM, ASST. COMMISSIONER (INT) PALAKKAD, KERALA GST DEPARTMENT PALAKKAD, DEPUTY COMMISSIONER OF STATE TAX, PALAKKAD AND ASST. STATE TAX OFFICER SQUAD NO. 1 KERALA GST DEPARTMENT PALAKKAD – 2019 (2) TMI 329 – KERALA HIGH COURT – TMI – Detention of goods and vehicle – Failure to remit tax and penalty u/s 129 of KGST Act, 2017 – Confiscation u/s 130 of the Act justified or not? – Held that:- We are afraid that the time for raising such a contention has not arisen, since as of now the Department has not proceeded under Section 130.
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On furnishing the Bank Guarantee for tax and penalty as provided under Rule 141 o

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ected that,for remitting the amount temporary registration will be permitted. However, the appellant is not ready to make remittance of money as such, but undertakes to furnish Bank Guarantee. 2. Incidentally, learned Counsel Sri.Joseph Prabhakar also raise a contention on the basis of Section 130 of the Kerala Goods and Services Tax Act, 2017 ( Act for short). Whether the failure to remit tax and penalty as provided under Section 129 of the Act, would lead to confiscation of goods under the provisions of Section 130. We are afraid that the time for raising such a contention has not arisen, since as of now the Department has not proceeded under Section 130. We gave Sri.Joseph Prabhakar the choice to withdraw the Writ Petition and challenge

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2019 (2) TMI 330 – ALLAHABAD HIGH COURT – TMI – Amount involved in E-way bill – petitioner has generated e-way bill for more amount and on physical verification the same was found less – contravention of provisions of CGST and SGST 2017 or not – Held that:- The e-way bills have been annexed on page 20-23. The hard copies are not required. There is no inference drawn by the opposite parties that the e-way bills were not correct or they were fake – an officer of not less than the rank of Assistant Commissioner, who is well versed with the facts of the case, may be present before the Court on the date fixed.
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List on 14.2.2019 as fresh. – Misc. Bench No. – 3349 of 2019 Dated:- 5-2-2019 – Shabihul Hasnain And Alok Mathur JJ. For the Peti

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2019 (2) TMI 437 – CESTAT NEW DELHI – TMI – CENVAT Credit – trading of goods – exempt activity – non-maintenance of separate records for dutiable as well as exempt goods – Rule 6(3) of CCR, 2004 – Held that:- A pure sale, unassociated with delivery of goods and services together, is not to be considered as service. Therefore what is contained in Section 66D of the Finance Act, 1994 dealing with negative list of services concerning trading of goods as well as inclusion of the same in the explanation appended to clause 2(e) of the Cenvat Credit Rules 2004 are mere clarificatory in nature, as definition of service as contained in 65B(44) and exempted service in 66D are to be read conjointly and not in exclusion of each other. This being the statutory definition, sale of goods; be it made in the high sea or within the territorial boundary of India in which Finance Act, 1994 has its force, cannot be called a service to impose tax liability or deny the credit under Rule 6 of Cenvat Credit R

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ave not maintained separate accounts in respect of dutiable goods as well as exempted goods and therefore as per Rule 6(3) of CCR, 2004, the Appellants are required to pay an amount equal to 5% of value of exempted services i.e. value of trading goods provided, if they have availed the option not to maintain separate accounts. Thus a Show Cause Notice dated 26.4.2016 was issued proposing recovery from them being 5% as the value of traded goods (exempted goods) under Rule 14 of the Cenvat Credit Rules, 2004 r/w Section 11A(4) of the Central Excise Act, 1944 alongwith interest at applicable rate on the above amount u/s. 11AA of the Central Excise Act, 1944 read with Rule 14 of the Cenvat Credit Rules, 2004 (as amended) & penalty under Rule 15 of the Cenvat Credit Rules, 2004 and Rule 25 of Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944. Thereafter, the Ld. Addl. Commissioner passed the impugned Order-in-Original No. 19/ADC/D-I/2017 dtd. 28.2.2017 co

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ubmitted on behalf of appellant that the Ld. Commissioner (Appeals) has erred in directing the original adjudicating authority to decide the quantum of penalty as if the Cenvat Credit alongwith interest is reversed there is no question of penalty. The Appellants had relied upon the judgement in the case of Commissioner of Central Excise & Customs Vs Precot Meridian Ltd. reported in 2015 (325) ELT 234 (SC). Thus, the appellant has prayed for setting aside of penalty as imposed. Though has not objected the remand for ascertaining the reversible cenvat credit based on the documents as directed to be produced before adjudicating authority below. 5. Department on the other hand has justified the order and prayed for dismissal of appeal. 6. After hearing and perusing record, it is observed as follows:- The Appellants have availed and utilized cenvat credit on common inputs services namely courier services, telephone services, banking services, insurance services, professional services, l

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hin the meaning of clause (29A) of article 366 of the Constitution which was inserted vide passing of Constitution [Forty Sixth] Amendment Act, 1982. 8. Going by its Statement of Objects and Reasons of this amendment, it can be ascertained that in conformity to the judgment of Hon'ble Supreme Court passed in Ganon Dunkerley‟s case (AIR) 1958 SC 560 whereby the sale of goods as used in entry of the 7th schedule to the constitution was treated to have carried the same meaning as in the Sale of Goods Act, 1930, coupled with subsequent decisions of the Hon'ble Supreme Court were the prelude to passage of such an amendment act that suitably amended tax on the sale or purchase of goods and included the same in Article 366 of the Constitution of India under a new Article (29A). 9. From a bare reading of the definition and provision mentioned above, it is apparently clear that a pure sale, unassociated with delivery of goods and services together, is not to be considered as servi

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on which Service Tax was not leviable, under Section 66 of Finance Act, 1994. Inclusion in Explanation to Rule 2(e) of Cenvat Credit Rules, 2004 trading was only clarificatory. 10. In the present case the Audit Report was regarding inadmissible input service tax credit availed on GTA for both dutiable and trading goods and objection was taken regarding non payment of 5% of value of trading goods. The Appellants paid ₹ 8,52,000/- vide challan No.212 dtd.30.4.2013 and ₹ 3,82,477/- on 24.10.2013 vide Challan No.03461. Thus, the SCN of 26.04.2016, in fact, would not have been issued. At least penalty has to be waived in view of Section 80 (2) of the Finance Act, 1994. The word used therein is shall‟. Hence the application of precision is mandatory. Also the Section is not creating a distinction where duty was not paid due to bonafide reasons or it was not paid due to malafide intent to evade duty. Thus, whenever no payment/short payment of duty is observed and the same s

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2019 (2) TMI 671 – ALLAHABAD HIGH COURT – TMI – Clandestine manufacture and removal – maintenance of authentic records – corroborative evidences – reliance placed in private records – Held that:- The entire show cause notice has been based on bilties/GRs claimed to have been recovered from M/s Vinod Forwarding Agency, Kanpur. It further reveals that the goods transported by M/s Vinod Forwarding Agency, name of the manufacturer, have not been stated on the alleged GRs and its brand name and it was only presumed by the Revenue that wherever no names/brands were mention of Rajshree ( Brand name, M/s K.P. Pan Flavours) is established, the said bilties/GRs should be treated as if the said goods were booked by the respondent-assessee – The record further reveals that the statements of various persons were recorded under duress and all the submissions made therein were retracted by the witnesses and during the cross examination they had also stated that the statements were recorded under pre

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ral Excise Appeal No. – 24 of 2018 Dated:- 5-2-2019 – Bharati Sapru And Piyush Agrawal JJ. For the Appellant : Gaurav Mahajan For the Respondent : Prateek Dawar,Pragya Pandey,Prateek Dawar ORDER PIYUSH AGRAWAL, J. We have heard Sri Gaurav Mahajan, learned counsel for the appellant and Sri Suyash Agarwal, learned counsel for the respondent assessee. Present appeal has been filed against the order No. A/70730-70734/ 2017-EX (DB) dated 24.7.2017 passed by the Customs, Excise and Service Tax Appellate Tribunal, Regional Bench, Allahabad in which the following questions of law have been framed: (1)Whether on the facts and in the circumstance of the case the Tribunal has erred in law to hold that the clandestine manufacture and removal of final product is not proved? (2)Whether on the facts and in the circumstance of the case the Tribunal has erred in law to take into consideration the fact that when any person is involved in illegal activities, he will not maintain authentic records of the

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department that the Gutlka manufactured by the respondent assessee were transported to Etawah, Farrukhabad and Kayamganj through M/s Vinod Forwarding Agency and the same were cleared to the aforesaid destinations without payment of Central Excise duty. On the basis of the alleged recovery of documents from the aforesaid parties a show cause notice/demand dated 13.6.2008 was issued to the respondent assessee by the Director General, DGCEI, DZU, New Delhi. It was also alleged that during the survey dated 30.5.2006 at the business premises of the respondent assessee a cash of ₹ 7,90,000/- was confiscated on the alleged ground that the said money related to be sale proceeds of clandestinely cleared Gutkha. It was further alleged that no proper documents or records could be produced before the Revenue authorities in rebuttal. The respondent assessee has given a detailed reply rebutting each and every points raised in the show cause notice. In the reply it has been alleged that the en

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eling aggrieved by the order of the Commissioner, Central Excise and Service Tax, Kanpur the respondent assessee preferred an appeal before the Customs, Excise and Service Tax Appellate Tribunal, Regional Bench, Allahabad. The Tribunal vide the impugned order dated 24.7.2017 has allowed the appeal and set aside the demand of interest and penalty. Against the impugned order present appeal has been preferred by the appellant- Revenue. We have perused the record. It shows that the entire show cause notice has been based on bilties/GRs claimed to have been recovered from M/s Vinod Forwarding Agency, Kanpur. It further reveals that the goods transported by M/s Vinod Forwarding Agency, name of the manufacturer, have not been stated on the alleged GRs and its brand name and it was only presumed by the Revenue that wherever no names/brands were mention of Rajshree ( Brand name, M/s K.P. Pan Flavours) is established, the said bilties/GRs should be treated as if the said goods were booked by the

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2019 (2) TMI 1525 – AUTHORITY FOR ADVANCE RULINGS, ODISHA – TMI – Classification of goods – Gudakhu – liability to pay NCCD (National Calamity Contingency Duty) – Held that:- Gudakhu as manufactured by the applicant is certainly not classified under any specific tariff item in any of the sub-headings under the Heading 24 03. Accordingly, it can be classified and rightly so under the residual tariff item 2403 99 90 – other’ of the said Chapter Heading because of its composition, character and use.
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Determination of the liability to pay NCCD (National Calamity Contingency Duty) – Held that:- It is clarified that the aforesaid duty is a levy under the Central Excise Act and not under the CGST/ OCST/IGST Act. The scope of issuing a ruling u/s 98 of the OGST/CGST Act is limited to the extent prescribed in sub-section (2) of Section 97 of the OGST/CGST Act. NCCD being not a levy under the OGST/CGST Act, it is not within the competence and mandates of the Authority of Advance Ruling con

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/- for SGST bearing CIN No. SBlN18082100000103 dated 01.08.2018 and ₹ 5000/- for CGST under Account No. 00000011312321408 dated 06.11.2018 towards the fee for Advance Ruling, The applicant submits that the question raised in the application has neither been decided by nor is pending for adjudication before any authority under any provisions of the GST Act. The concerned jurisdictional officer raised no objection to the admission of the application. The application is therefore, admitted. 2.0 The applicant inter-allia submitted that the applicant is engaged in the business of manufacture and sale of Gudakhu , a tobacco product in a paste form which is generally used as a Tooth paste. The main ingredients of gudakhu are tobacco, molasses, lime, red soil, and water etc. It is classified as a tobacco product . The applicant is of the view that gudakhu is covered under the classification code 2403 11 10. The applicant substantiated such view as below. 2.1. The Hon ble Odisha High Cour

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tinctly different from gudakhu which is not meant for chewing but only applied to the teeth orally like a tooth paste for cleansing teeth. Even in jurisprudence and in statutory construction, as per the Rule of ejusdem generis , where general words follow an enumeration of persons or things, by words of a particular and specific meaning, such general words are not to be construed in their widest extent, but are to be held as applying only to persons or things of the same general kind or class as those specifically mentioned. Therefore, the general word all other goods… in the Tariff heading 2403 9990 would take their meaning from the specific words (i.e. gutkha, pan masala etc. which are meant for chewing only. 3.0. Personal Hearing was fixed on 03.01.2019. Shri Ravi Shankar Sistla, CA appeared for personal hearing and he filed a written submission reiterating the stand taken earlier. In his considered opinion Gudakhu should be classified under the tariff heading 240311 10 and s

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about 50-60%. Gudakhu is commercially available in a paste form as well as in a granular form and the composition of both of these products is the same. However, while the paste is used orally as toothpaste, the substance in a granular form is used for smoking as hookah. The applicant in the instant case is engaged in the manufacture of gudakhu in paste form only. 4.2 it is seen that the applicant has been clearing the product as Branded Gudakhu with CETH No-2403 99 90 right since the day of taking Central excise registration w.e.f. 01.10.2002. Though, the product remained same under the GST regime, the applicant now wants to reclassify it under the code 240311 10 . The concerned jurisdictional officer of CGST contended that Gudakhu is not entirely tobacco but rather a product consisting of tobacco, molasses, lime, red soil, water etc. Most of its composition materials are similar to Gutkha except areca nut. It is primarily applied on teeth and pressed and chewed. So, it should be, and

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te to chapter 24 that for the purposes of sub-heading 2403-11, the expression water pipe tobacco means tobacco intended for smoking in a water pipe and which consists of a mixture of tobacco and glycerol, whether or not containing aromatic oils and extracts, molasses or sugar and whether or not flavored with fruit. The tariff item 2403 11 10 Hookah or Gudakhu Tobacco bearing a brand name refers to Hookah or Gudakhu Tobacco (branded) used as a smoking tobacco in a water pipe as explained in the sub heading note of Chapter 24, under sub heading 2403 11. In no way it refers to the non-smoking tobacco irrespective of the nomenclature and composition. Commercially Hookah or Gudakhu Tobacco is sold in granular form which is not the case in gudakhu manufactured by the applicant. Gudakhu manufactured by the applicant is sold as a paste and is used as a tooth paste. Hence, it is distinctly different from hookah tobacco by its essential character and use. While hookah or gudakhu tobacco as class

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gutkha and zarda etc. it also includes cut tobacco, tobacco extracts and snuffs which do not belong to the family of chewing tobacco. The sub-heading which reads as 2403 99 – other bears the essential character of a residual entry so as to classify all other forms of tobacco not specified in the preceding sub-headings. No doubt it classifies certain known chewing tobacco products under the sub-heading but, it also includes cut tobacco, tobacco extracts, snuff and other. The entry other appearing against 2403 99 90 is intended to cover all other tobacco products not specified under the preceding sub-headings under chapter 24 and also not specified under the tariff items specified under sub-heading 2403 99. Thus, the contention of the applicant that a tariff item can be classified under the sub-heading 2403 99 only if the said item belongs to the family of chewing tobacco like gutkha , zarda or khaini is totally misplaced in as much as the said sub-heading also specifies other tobacco p

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2019 (3) TMI 434 – APPELLATE AUTHORITY FOR ADVANCE RULING MAHARASHTRA – TMI – Classification of goods – marine paints supplied by the Appellant – whether the goods are to be considered to be part of ship and accordingly, be then classified under S. No. 252 of the Schedule I of the Notification No. 1/2017? – rate of tax – N/N. 1/2017-Central Tax (Rate) dated 28.06.2017 – Held that:- Notification No.1/2017 dt.28.06.2017 prescribes the applicable rate of CGST. The paints supplied by the appellant are classifiable under Chapter heading 3208 and 3209 which are covered under Schedule IV of the said Notification and liable to GST @ 28%. However, under the same rate notification, Schedule-I which covers goods taxable @ 2.5% CGST has entry No.252 which covers parts (classifiable under any chapter) of goods, falling under heading 8901,8902,8904, 8905,8906 and 8907.
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In common parlance, paints generally means any liquid which is commonly applied to a number of surfaces and is used to provi

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appellant is that as per the provisions of the Merchant Shipping Act, paints are mandatorily required on all ships and therefore they should be considered as part of ships. This may be mandatory requirement for the sail worthiness of the ship but that does not indicate that they are parts of the ship. The mandatory requirement under some other law cannot be an adequate ground for classifying a product as ‘part’.
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Thus, the impugned product would not be a part of ship – AAR decision upheld. – MAH/AAAR/SS-RJ/17/2018-19 Dated:- 5-2-2019 – SMT. SUNGITA SHARMA, AND SHRI RAJIV JALOTA, MEMBER PROCEEDINGS (Under Section 101 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also m

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marine paint being manufactured by Appellant makes it suitable for ship during building stages and even during maintenance. C. In the erstwhile indirect tax regime, Appellant has been discharging applicable indirect taxes on supply of such paints and availing exemptions when granted under respective legislation. D. With the introduction of GST, Appellant has analyzed classification and applicability of CGST, SGST and IGST in light of new legislation. For classification, it has been clarified in the rate notification of respective legislation that rule of interpretation of the First Schedule to the Customs Tariff Act, 1975 including Section Notes and Chapter Notes and general explanatory notes of the said first schedule would be applicable for the purpose of the classification under GST. E. Accordingly, Appellant has sought to classify paints being supplied under HSN 3208 and 3209 basis the nature of the product and after considering relevant chapter notes and Section notes. Notificatio

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e I of the Notification No. 1/2017 of Central Tax (Rates) dated 28.06.2017. H. The Authority for Advance Ruling, Maharashtra passed the advance ruling wherein the Appellant s contentions of classifying marine paints under Sl. No. 252 of Schedule I has been rejected. Hence, the Appellant has preferred an appeal before this Appellate Authority against the impugned Advance Ruling. GROUNDS OF APPEAL 1. The Appellant submitted that marine paint is a specific type of paints suitable for use principally for ships during building stage and even during maintenance. The sailing ship needs protection from corrosive environment in which they operate. Such marine corrosion has a significant impact on sea carriers and their longevity. Therefore, effective corrosion control strategies are chosen considering appropriate selection of coating for a marine environment. Marine coatings have special functionality to protect marine vessels and other carriers above and below the waterline. Accordingly, marin

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r Customs Tariff Act, it would be pertinent to refer to extract of description of goods falling under Customs Heading 3208: Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers or chemically modified natural polymers dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter 5. It is submitted that based on the technical specification of the product, marine paints appear to be classifiable under heading 3208. Since, marine paint is suitable for use for ships, it could also get classified as part of ship. For the purpose of this analysis, Appellant referred to chapter 89 for Ships, boats and floating structure . They further submitted that there is no specific entry in Chapter 89 for parts of ships covered therein. In the absence of any entry for part of ship, Appellant had adopted classification of marine paint under chapter heading 3208. 6. The Appellant has also been adopting simi

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rs, floating cranes and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms 250 8906 Other vessels, including warships and lifeboats other than rowing boats 251 8907 Other floating structures (for example, rafts, tanks, coffer-dams, landing-stages, buoys and beacons) 8. It is submitted that on conjoint reading of above entries, it could be construed that the aforementioned goods along with its parts (covered under entry 252) would be taxed at the rate of 2.5%. It is to be noted here that Entry 252 reproduced above is applicable to goods falling under any chapter but which are parts of goods falling under headings 8901, 8902, 8904, 8905, 8906 and 8907. Accordingly, a product which is classifiable under any chapter, if could be construed as part of these prescribed goods then the same would fall within the purview of entry 252 and hence would be liable to 2.5% CGST. 9. It is submitted that

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ed to tax at 2.5%. 11. Accordingly, for marine paints to be classified under this entry, it should be construed as part of the ship covered under entry 252. 12. It is submitted that there is no separate tariff item as parts of ship under chapter 89 of the First Schedule to Customs Tariff Act, 1975. Thus, meaning of the term parts of goods , could then be adopted from its meaning in common parlance. 13. It is submitted that the said term Part means an essential ingredient of the main product. The said word i.e. part has been defined in various dictionaries as under: The term Part as defined under The Black s Law Dictionary an integral portion, something essentially belonging to a larger whole, that which together with another or others makes up a whole. Definition of Part from Thesaurus an essential or integral attribute or quality The meaning of the term part in common parlance is that component part of an article is an integral part necessary to the constitution of the whole article a

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ost equal measures of something etc. Further, we also find the definition of Spare Part as per Wikipedia A spare part, spare, service part, repair part or replacement part is an interchangeable part that is kept in an inventory and used for the repair or replacement of failed units. Spare parts are an important feature of Logistics Engineering and Supply Chain Management. 16. It is submitted that also as per the above definitions referred by the Ld. AAR, it is clear that part is one of the piece or ingredient of the main machine. In the present case, ship is main machine and marine paint is essential part of the same. 17. It is further submitted that the Ld. AAR has observed that anchor, bow etc. are very essential parts of the ship or vessel and are quite clearly part of the vessel. However, in addition to the above there are some additional equipment that are required to be made available on a ship as a measure of statutory compliance under the various marine acts. Though these parts

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0. The Merchant Shipping Act, 1958, fosters development and ensures the efficient maintenance of an Indian mercantile marine in a manner best suited to serve the national interests. This Act provides registration, certification, safety and security provisions for Indian ships and generally deals with amendments law relating to merchant shipping. 21. It is submitted that as per the provisions of Merchant Shipping Act, 1958 ( MS Act ), marine paint is essential part of the ships. Relevant provisions of the said act which would help in demonstrating that marine paint is integral and essential component of ship as referred below for ease of reference. Section 356P(1) of MS Act: Application of chapter XIB-Control Of Harmful Anti-Fouling Systems On Ships Save as otherwise provided in this Part, this Part shall apply to- a. every Indian ship, wherever it is; b. ships not entitled to fly the flag of India, but which operate under the authority of India; and c. ships that enter a port, shipyard

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the requirements, as may be prescribed from time to time. 2. All other vessels to which this Part applies shall comply with requirements of the anti-fouling systems as prescribed from time to time. Section 356X of MS Act Information regarding contravention of the provisions of Convention 1. If, on receipt of a report from a surveyor or other person authorised to inspect a ship, the Director-General is satisfied that any provision of this Part has been contravened by such ship within the coastal waters, the Director General or any officer authorised by him in this behalf, may- a. detain the ship until the causes of such contravention are removed to the satisfaction of the Director-General or the officer authorised by him; and b. levy penalty on such ship as specified in section 436 22. It is submitted that from conjoint reading of the above provisions, it is evident that every ship has to adhere to the anti-fouling provisions as prescribed under MS Act. Basis the same, a layer of coatin

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e. Accordingly, such marine paint has to be considered as part of ship and should get covered under 2.5% CGST Rate schedule. A PRODUCT ESSENTIAL TO COMPLETE THE MAIN PRODUCT AND MAKE IT MARKETABLE IS CONSTRUED AS PART OF THE MAIN PRODUCT 25. Reliance is placed in this regard on the decision of the Hon ble Supreme Court, in case of Star Paper Mills Ltd. Vs. Collector of Central Excise, Meerut [1990] 76 STC 312 (SC) = 1989 (8) TMI 78 – SUPREME COURT OF INDIA, wherein it has been ruled that if it is found that the use of paper core is necessary in any process incidental or ancillary to the completion of paper as marketable goods and it would consequently be commercially inexpedient to sell paper without the use of paper core, it would certainly be a constituent part of paper and would thus fall within the purview of the term component parts used in the notification. 26. Reliance is also placed on the decision of Hon ble Gujarat High Court, in case of Surgichem Vs. State of Gujarat [1992]

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in the appeals, that it was an essential requirement to be goods, to be wrapped in paper. Anything required to make the goods marketable, must form part of the manufacture and any raw material or any materials used for the same would be component part for the end product. 28. It is submitted that from the above cases, it could be summarized that paper core, plastic spools and wrapping paper would be considered to be parts of paper rolls, adhesive plaster tapes and paper reams/reels respectively since without the former goods, the later goods couldn t be marketed or are commercially inexpedient. Thus an analogy could be drawn that anything which is required for making goods marketed or to be marketable, would be form component part of that end products. 29. It is submitted that, as explained above, basis the provisions of The Merchant Shipping Act, ships are bound to adhere to the anti-fouling system norms. Accordingly, ship would not be marketable unless the same has complied with anti

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cation 6/2002 – Central Excise dated March 1, 2002, while deciding on whether wires and cables manufactured for aircrafts / helicopters would be considered as parts of aircraft, the Hon ble Court in case of Sanghvi Aerospace (P) Ltd Vs. Commissioner of Central Excise Ahmedabad[2009 (247) E.L.T. 578 (Tri. – Ahmd.)] = 2009 (6) TMI 808 – CESTAT, AHMEDABAD stated that following: he has also submitted a list of goods in respect of which exemption has been allowed to manufacturers supplying the goods to National Aerospace Laboratories, HAL etc. as detailed below : 9.1 Aircraft cables (manufacturer – Radiant Cables Pvt. Ltd.) 9.2 Paints (manufacturer – South Field Paints & Chemicals Pvt. Ltd.) 9.3 Expoxi Yellow Primer (manufacturer – South Field Paints & Chemicals Pvt. Ltd.) 9.4 Thinner for yellow primer (manufacturer – South Field Paints & Chemicals Pvt. Ltd.) 9.5 Rivets (manufacturer – M/s. Ankit Forgings) 9.6 Epoxi black paint (manufacturer – South Field Paints & Chemicals

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ribing effective rate of central excise for specified goods (amending Notification 12/2012 dated 17 March 2012). Said notification inserted following entry for prescribing effective rate of excise for goods mentioned therein. Sr. No. Chapter or heading or sub-heading or tariff item of the First Schedule Description of excisable goods Rate Condition No. 306C Any chapter Raw materials and parts NIL 2 and 3* * Condition 2 – Where such use is elsewhere than in the factory of production, the exemption shall be allowed if the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed. *Condition 3 – The exemption shall be allowed if it has been proved to the satisfaction of an officer not below the rank of the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, having jurisdiction that such goods are cleared for the intended use 36. It is submitted

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252 has been inserted for parts of these goods. Thus, the intention appears to be to avoid inverted duty rate structure for vessel manufacturers. They should be able to procure all the parts at 5% IGST and then would also be charging same rate on their outward supply of different types of vessels. Hence, entry 252 of IGST Rate notification should be read to cover all raw materials and parts which are meant for use in manufacture of different types of vessels. VAT legislation of United Kingdom also considers paint as part of ship 39. It is submitted that Value Added Tax (VAT) was introduced in the UK on April 1, 1973. Although Value Added Tax Act 1994 (VATA) provides the main framework of the tax, the detailed interpretation of the same are found in statutory instruments either in the form of Orders made by Treasury or Regulations made by Her Majesty s Revenue and Customs (HMRC). HMRC has published several Notices and Leaflets affecting law. Though these Notices are not part of the law

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erials, partly processed parts or equipment and also non-specialist goods or appliances are excluded from zero rating. The list below gives examples of other parts and equipment which are not zero-rated. It is not exhaustive. Binoculars catering equipment (domestic) crockery cutlery diving equipment furniture (unfixed) laundering equipment (domestic) missiles, shells etc ship s stores soft furnishings phones televisions tools underwater cameras videotapes/disks, electronic games and similar entertainment equipment crockery and cutlery raw materials such as: fibre board, plastics, and specialist metals bulk materials such as: adhesives, chemicals, fabrics, inhibitors, metals, oils, paints, solvents and thinners etc aircraft ground equipment flight simulators or their parts, and tooling and equipment used for manufacturing parts or equipment 41. It is submitted that as per section 30(2) of VATA, any supply of goods or services would be zero-rated if the supply of goods are covered under

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ero-rated. The said non-exhaustive list of parts and equipments includes paints, solvent and thinners. 43. It is submitted that from the above it is clear that paints, solvent and thinners have been considered to be parts and equipments of a ship since it is reported under a non-exhaustive list of parts and equipments. VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 44. In support of its contentions, the Appellant replied upon the various cases. At the time of the passing of the impugned advance ruling, the Ld. AAR, relied upon various case laws different that the cases referred by the Appellant. However, the Appellant was not given chance of representing its case in light of those decisions referred by the Ld. AAR. Such act of the Ld. AAR is clearly violation of the principles of natural justice. 45. It is submitted that from the above, it is clear that the impugned advance ruling has been passed in violation of the principles of natural justice and hence the same is liable to be set asid

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ified under Chapter-32, The rate of tax is 12 % 6) Under GST the goods are classified under schedule – IV @ 14+14=28 %(SGST+CGST) 7) Going by the principle of RNR i.e VAT+ Excise =13.5+12=25.5 hence the goods are classified @ 28 %. 8) Dealer s contention is to classify the goods under SCH-I, serial no.252 parts of goods of heading-89 9) In the ARA Maharashtra application, the dealer has contended the above claims of 5% on following grounds i) Section 356 of Merchant shipping Act, 1958 – Anti-fouling paints just because it is mandatory under some law to be applied to ships does not essentially make it a part. On this issue, ARA Maharashtra has clearly clarified that paints can be consumables and not parts. As per this law although application of paints is mandatory but that doesn t mean that it can be classified as part of ship. ii) Central Excise exemption notification in 2012, 2015 – specified ships. This exemption is for the things used in ships. In this case, it is noticed that the

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of Ship. This conclusion which we have drawn as above gets support from the facts stated by the appellant and detailed discussions above as per which marine paints are clearly consumable items and not parts. v) Thus we would be stretching the definition of part greatly, if we intend to treat paints as parts of ship in view of the above discussions. vi) Basis 30(2) of UK VAT Act, the ARA has mentioned that the statutory provisions, conditions are in different context and therefore not relevant in the facts of the case in present matter. DISCUSSION AND FINDINGS 47. We have perused the record of the file and gone through the facts of the case and the submission made by the appellant and the department. The appellant have submitted that they are manufacturers and exporters of paint. M/S. Jotun India Pvt. Ltd. is a supplier, exporter and manufacturer of paint and powder coatings. The appellant has stated that they supply paints that are specially designed for unique conditions. One of the

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Schedule-I of the Notification No.1 of 2017 of Central Tax (Rates) dt.28.06.2017. 48. There is no dispute that the product is covered by Chapter heading 3208 and 3209 but the dispute pertains to the claim of the appellant that they are covered by Entry no.252 of Schedule I Notification No. 1 of 2017 dt.28.06.2017, which covers parts (classifiable under any chapter) of goods, falling under heading 8901,8902,8904, 8905,8906 and 8907 i.e. parts of ships . The appellant has submitted that the impugned product sold by them i.e. Marine Paint is a specific type of paint suitable for use principally for ship during the building stage and during maintenance. The ship needs protection from the corrosive environment in which they operate and the marine coatings are a special functionality to protect the marine vessel and other carriers above and below the water line. The marine paint has the following special features:- 1. It protects the body of the ship from highly corrosive environment. 2. Blo

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es and is used to provide texture to an object as well as protect the surfaces. The paint supplied by the appellant is anti fouling paint which is generally applied to hulls of ships. In order to address the contention of the appellant, it is to be seen as what is understood by the meaning of the term parts . The terms parts has not been defined under CGST Act. It has been defined under the Black s Law Dictionary as an integral portion, something essentially belonging to a larger whole which together with another or others makes of a whole. In the Cambridge English Dictionary part is defined as a separate piece of something or a piece that combines with other piece to form something. Thus, what we understand from the term part is that it should be identified as something integral and mandatory to the completion of the whole article and without which the article will not be complete. By the application of the above, it cannot be said that marine paint is part of the ship. An essential p

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d are not perceived as a part of a setting on which they are applied and this would apply even to the special category of Marine paints . 52. The main contention of the appellant is that as per the provisions of the Merchant Shipping Act, paints are mandatorily required on all ships and therefore they should be considered as part of ships. This may be mandatory requirement for the sail worthiness of the ship but that does not indicate that they are parts of the ship. The mandatory requirement under some other law cannot be an adequate ground for classifying a product as part . 53. The Appellant has placed reliance on the Supreme Court decision in the case of Star Paper Mills v. Collector of Central Excise (1990) 76 STC 317 (SC) = 1989 (8) TMI 78 – SUPREME COURT OF INDIA, wherein it was ruled that if it is found that use of paper core as necessary in any process incidental or ancillary to the completion of paper as marketable goods and it would consequently be commercially inexpedient t

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03 – GUJARAT HIGH COURT where it was observed that, anything that goes into the product till the product become marketable such things becomes part and parcel of that article. Applying this test, the plastic pools over which plastic tapes are wrapped were considered as part of the goods marketed. A plastic tape could never have become marketable without a plastic pool and therefore the decision. The same cannot be said about paints. 55. The Bombay High Court in the case of Commissioner of Sales Tax Vs. Jayanand Khira & Co. Private Ltd. (36 STC 242 Bom) = 1975 (2) TMI 97 – BOMBAY HIGH COURT had to decide whether an oil tanker is a part of a motor vehicle. The Court observed , …We find some difficulty in accepting the test laid down in that case. According to us, the correct test would be to look both at the article which is said to be the component part and the completed article and then come to the conclusion whether the first article is a component part of the whole or not. If o

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old by the respondents was a component part of a motor vehicles. 56. In the case of Commissioner, Sales Tax v. Free India Cycle Industries [1970] 26 STC 428 = 1970 (2) TMI 107 – ALLAHABAD HIGH COURT the Allahabad High Court was concerned with an entry bicycles, tricycles, cycle rickshaws and perambulators and parts and accessories thereof other than tyres and tubes . The assessee was a dealer in cycle and cycle goods and the question arose whether rexine saddle covers manufactured and sold by it would fall within that entry. It was observed by the Division Bench that the expression parts and accessories qualified the word bicycles, tricycles, etc. The entry was regarded as referring to parts and accessories of the vehicles and did not include accessories of individual parts or accessories of the vehicle. Dealing with the question of rexine covers, it was held that rexine covers in question are used as a covering of the saddle or seat of a cycle. The seat or saddle of a cycle is, of cou

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Schedule Entry No.C-II-124 as an accessory of the Cable TV. Thus, having regard to the functional utility of the product, the Commissioner held that the Hybrid Amplifiers were covered by Schedule Entry No.C-II-124 and liable to tax at 13%. Schedule Entry C-ll-124 read thus :- Entry Description of the goods Television sets, television cameras, television receivers, to date television monitors, antennas and components, parts and accessories of any of them. The Court observed, . From all these facts, what becomes clear is that the Hybrid Amplifier basically boosts the signal, be it for the purpose of transmission of Cable TV or for several other purposes as set out by us earlier. This being the position, we agree with the finding of the MSTT that the impugned product viz. Hybrid Amplifier has got a totally different function and it has no function akin to an antenna as was held by the Commissioner in his DDQ order. We do not find that this Hybrid Amplifier can be classified under Schedul

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GST – States – 2/ 2019 No. KGST.CR.01/17-18 – Dated:- 5-2-2019 – Office of the Commissioner of Commercial Taxes (Karnataka) Vanijya Therige Karyalaya, Gandhinagar, Bengaluru, NOTIFICATION (2/ 2019) No. KGST.CR.01/17-18, Bengaluru, Dated: 05.02.2019 In exercise of the powers conferred by sub-section (6) of section 39 read with section 168 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), the following amendment is hereby made in the Commissioner of Commercial Taxes No

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GST – Entry in relation to exemption of IGST on supply of services having place of supply in Nepal or Bhutan, against payment in Indian Rupees deleted. – TMI Updates – Highlights

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GST – Started By: – Vishal Bhattad – Dated:- 4-2-2019 Last Replied Date:- 5-2-2019 – If a person is engaged only in supply of exempted goods or services and has a turnover exceeding 20 lacs then is he required to take registration? Does sec 24 overrule section 23 also ? – Reply By KASTURI SETHI – The Reply = Query-wise reply is as under:- 1. No 2. Yes. If you fall under any of clauses of Section 24 of CGST Act (i toXii), you will have to obtain registration under GST Act irrespective of turnover i.e. from Re one. Thus we can say that Section 24 overrides Section 23. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = Sethi Sir, One doubt. Section 22 provides that registration is to be taken if the aggregate turnover exceeds ₹ 20 lakhs

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GST – Started By: – DINESH SHARMA – Dated:- 4-2-2019 Last Replied Date:- 5-2-2019 – IN THE CASE OF REAL ESTATE DEVELOPER A PARTNERSHIP FIRM REGISTERED UNDER GST AND HAS COMPLETED ONE BUILDING. ALSO PURCHASED ANOTHER PLOT OF LAND ON WHICH MULTI STORED TOWER WILL BE DEVELOPED. HOWEVER FOR PARKING ETC IF REQUIRES TO GO DEEP NEARLY MORE THAN 18 MONTH. BOOKING/AGREEMENTS ETC. MAY TAKE TIME. THUS THERE IS ACCUMULATION OF ITC AND NO OUTPUT LIABILITY FOR LONGTIME.IS THERE ANY TIME LIMIT FOR SUCH ACCUMULATION ETC. – Reply By Rajagopalan Ranganathan – The Reply = Sir, According to Section 16 (4) of CGST Act, 2017 a registered person shall not be entitled to take input tax credit in respect of any invoice or debit note for supply of goods or services

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GST – Levy of IGST – removal of goods from the FTWZ unit – the goods are not to be subjected to IGST when bonded and the payment of integrated tax is to be effected when the goods are removed for home

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GST – Levy of IGST – removal of goods from the FTWZ unit – In the event the Applicant is exclusively conducting the activity described in their Application of exporting goods to FTWZ and which are sub

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GST – Classification of goods – industrial grade Calcium Hydroxide of high purity of 86% and industrial grade Calcium oxide of high purity of 86% are rightly classifiable under CTH 28259040 and CTH 28259090 respectively – TMI Updates – Highlights

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