Author: admin_gst

Customs – 01/2019 – Dated:- 2-1-2019 – Circular No. 01/2019-Customs F. No: 450/119/2017-Cus-IV Government of India Ministry of Finance Dept. of Revenue (Central Board of Indirect Taxes and Customs) ***** Room No. 227B, North Block, New Delhi Dated, 2nd January, 2019 To, All Principal Chief Commissioners/Chief Commissioners of Customs/Customs (Preventive) All Principal Chief Commissioners/Chief Commissioners of Customs & Central Excise All Principal Commissioners/Commissioners of Customs/Customs (Preventive) All Principal Commissioners/Commissioners of Customs & Central Excise Subject: IGST Export Refunds-resolution of errors- reg. Madam/Sir, 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 hi

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

iling of EGM in respect of Shipping bills originating from ICDs, system is unable to match the gateway EGM and the local EGM. Therefore, it was instructed that all the custodians / carriers / shipping lines operating at ICDs/ Gateway ports should file EGM online. It is re-iterated 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 shall 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 EGM is 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 immediatel

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

be dealt strictly by taking recourse to penal provisions in accordance with the law. 3. Mismatch in Local EGM and Gateway EGM: (i) The errors arising out of mismatch of information provided in local and Gateway EGM has been discussed in para 6 of Circular No. 06/2018-Customs where in Board had clearly delineated the roles and responsibilities of the Customs officers at the inland ICDs/ CFSs and at the Gateway port or CFSs attached with the gateway ports respectively in so far as the task of integrating the local EGM and the gateway EGM was concerned. (ii) One of the major hindrances in smooth processing of IGST refunds for the past period is the problem faced by field formations in gathering information with regard to LCL cargo from Shipping lines and Custodians. The matter has been examined. The procedure related to consolidation of cargo at Gateway ports has already been prescribed vide Circular No. 55/2000-Cus dated 30.06.2000 wherein it is provided inter-alia that the custodian of

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

tions 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. It has been reported that cargo is de-stuffed 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 handled in the form of a tally sheet. Such local practice of CLP/CDP appears to have been started only for the convenience of shipping lines/custodian. The accounting of previous containers vis-a-vis new container in case of LCL cargo being re-stuffed at CFS or Gateway port is an important event in establishing the linkage between the local EGM and Gateway EGM. Circular 55/2000-Cus dated 30.06.2000 mandating the procedure to be followed at Gateway Ports or CFS attached to Gateway ports and the originating inland ICDs/CFSs for consolidation of LCL cargo on Gateway ports or CFS attached to such gatew

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

teway port officers so that rectification of errors (C or N) could be done. (v) Customs officers in charge of CFSs shall provide list of Shipping Bills having SB006 error i.e EGM errors to the concerned CFSs at gateway ports. The custodians shall in turn provide details as mentioned in Tally Sheets or CDP/CLP (containing container details) relating to the said SBs to the Customs officers. Simultaneously, Gateway port officers shall coordinate with the officers of the originating ICDs/ CFSs to obtain relevant particulars in accordance with the procedure in para (iv) above. It shall be the responsibility of the officers in charge of CFSs at Gateway ports to obtain necessary details from the stakeholders which establish the linkages between the goods received from inland ICDs/ CFSs and those exported out of India except in cases where the local EGM has not been filed in which case the responsibility would be of the officers manning the inland ICD/CFS. (vi) Once the details are received, t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ion or revocation and imposition of penalty is provided in Regulation 12 which can be resorted to in cases where CCSP fails to comply with the regulations. This must 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 long pending with EGM error (SB006). 4. Stuffing Report by Preventive Officers at Gateway Ports (i) It appears that in some gateway ports, the Preventive officers are entering stuffing report in ICES application of Customs EDI System pertaining to the shipping bills filed only in gateway port, but not for the shipping bills which have been filed in ICDs. It is important that Preventive officers posted in gateway ports should enter stuffing reports for all shipping bills irrespecti

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

self to avoid the occurrence of N and C errors, when the gateway EGM is eventually filed. Once the corrections are made, the EGM officer at the Gateway port can revalidate EGMs for successful integration of the updated details. 5. Board had vide Circular No. 67/2000-Customs extended the procedure prescribed in 55/2000-Customs to agents of shipping lines / MTOs / NVOCCS / freight forwarders/consolidators. This was purely a facilitation measure taking into account the business practice of the shipping lines. Board has allowed these entities a role in the logistics chain only to facilitate the trade. Since these entities have the necessary information, it should not be difficult for them to provide the particulars required to resolve the pending SB006 cases. Therefore, there is a responsibility on these entities to coordinate with the field formations in return. Board would be constrained to review the facility given vide 67/2000-Customs to agents of shipping lines / MTOs / NVOCCS / freig

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2019 (1) TMI 139 – NATIONAL ANTI-PROFITEERING AUTHORITY – TMI – Profiteering – four models of Motor Car – benefit of reduction in the rate of tax not passed – contravention of Section 171 of the CGST Act, 2017 – Held that:- First of all it is observed that the rate of tax was 15.63% in the pre-GST era which was increased to 29% in the post-GST era – It is evident that before discount base prices of all the products had remained the same. These facts have also not been disputed by the representative of the Applicant No. 1. Hence the provisions of Section 171 of the CGST Act 2017 are not attracted.
–
It is clear that the Respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 and hence there is no merit in the application filed by the Applicant – application dismissed. – Case No. 01/2019 Dated:- 2-1-2019 – SH. B. N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, MS. R. BHAGYADEVI, TECHNICAL MEMBER, SH. AMAND SHAH, TECHNICAL MEMBER Present:- Smt. A

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

h of the four products by the Respondent, the details of the invoices are furnished in Table-A below: Table-A Particulars Wagon R AMT Swift VXI (O) Wagon R VXI Alto 800 LXI Pre-GST Post-GST Pre-GST Post-GST Pre-GST Post-GST Pre-GST Post-GST Invoice No. 11809050 11931762 11608607 1143723 11614808 1130822 11618491 1124140 Invoice Date 02.06.17 19.07.17 03.04.17 15.09.17 04.04.17 19.09.17 05.04.17 15.09.17 2. The above application was examined by the Standing Committee on Anti-Profiteering and was further referred to the DGAP vide minutes of it s meeting dated 02.07.2018 for detailed investigations under Rule 129 (1) of the CGST Rules, 2017. The DGAP has stated in his Report dated 28.09.2018 that the two invoices issued for each of the four products by the Respondent were scrutinized and it was observed that in the pre-GST era, the products namely, Wagon R VXI AMT , Swift VXI, Alto 800 LXI & Wagon R VXI (HSN code 8703) attracted total 15.63% duty incidence which included Central Excis

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

17,930 Net Base price (After Discount) D=A+B-C 328,023 328,213 402,377 402,587 303,681 300,228 196,728 195,641 Assessable Value for Duty Purpose E 326,273 326,921 399,377 400,132 301,931 298,936 194,228 193,579 Excise Duty @12.5 F=E* 12.5% 40,784 – 49,922 – 37,741 – 24,278 – NCCD @ 1% G=E*1% 3,263 – 3,993.77 – 3,019 – 1,942 – Auto Cess @ 0.125% H=E-0.12 5% 408 – 499 – 377 – 243 – Infra Cess @1% I=E*1% 3,263 – 3,993.77 – 3,019 – 1,942 – CST @1% J=1% of (E to I 3,740 – 4,577.86 – 3,461 – 2,226 – GST @ 29% K=E* 29% – 94,807 – 116,038 – 86,691 – 56,138 Total Duty/Tax L=Sum of (F to J) or K 51,457 94,807 62,987 116,038 47,618 86,691 30,632 56,138 Ex-Factory Price M=D+L 379,480 423,020 465,364 518,625 351,299 386,919 227,360 251,779 Tool kit & Jack including tax N 463 458 550 545 458 458 438 438 Freight including Service tax O 25,201 24,116 27,144 25,975 25,201 24,116 23,432 21,942 Service Charge including Service Tax P 784 682 839 730 743 642 80 503 GST @ 29% on Freight and Service Cha

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

were in inter-state sale (Sale from Haryana State to Kerala State) where 1% CST was charged in pre-GST period whereas in post-GST 29% tax was charged. Therefore, the cum-tax price had increased. 4. The DGAP also stated from the above Table-B that the Respondent had changed the net base price (after discount) and charged effective rate of tax post implementation of GST and details of such change are furnished in the Table- C given below:- Table-C Motor Car model Pre-GST net base price (in Rs.) Post-GST net base price (in Rs.) Increase/(Decrease) post-GST (in Rs.) Increase/ (Decrease) post-GST (in%) A B C D=(C-B) E=D/B Wagon R AMT 3,28,023 3,28,213 190 0.06% Swift VXI (O) 4,02,377 4,02,587 210 0.05% Wagon R VXI 3,03,681 3,00,228 (3,453) (1.14%) Alto 800 LXI 1,96,728 1,95,641 (1,087) (0.56%) 5. The DGAP further observed that the Respondent had reduced the base price by ₹ 3453/- in respect of Wagon R VXI and by ₹ 1087/- in respect of Alto 800 However, there was an increase in

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

der Section 171 of the CGST Act, 2017. First of all it is observed that the rate of tax was 15.63% in the pre-GST era which was increased to 29% in the post-GST era, as could be seen from the tabulation shown in Table-B above. Secondly from the invoices referred above, it is evident that before discount base prices of all the products had remained the same. These facts have also not been disputed by the representative of the Applicant No. 1. Hence the provisions of Section 171 of the CGST Act 2017 are not attracted. 8. Based on the above facts it is clear that the Respondent has not contravened the provisions of Section 171 of the CGST Act, 2017 and hence there is no merit in the application filed by the above Applicant and the same is accordingly dismissed. 9. A copy of this order be sent to both the Applicants and the Respondent free of cost. File of the case be consigned after completion. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – t

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2019 (1) TMI 172 – CESTAT NEW DELHI – TMI – Clandestine removal – demand based on assumptions and presumptions – alleged parallel invoices – the proposed confiscation of the stock and the penalties confirmed on the Director of the appellant Company on the ground of unaccounted production and clearances being evidenced by the categorical admission of the Director and Supervisor of the appellant Company – Held that:- Bare reading of provisions of Rule 25 and 26 of CER, 2002, makes it clear that the confiscation and penalty can be imposed subject to the provisions to Section 11AC of Central Excise Act, 1944 i.e. first of all it need to be seen as to whether the act of the appellant are that of fraud, collusion, wilful misstatement suppression of fact or any contravention of the provisions of law and that too with an intention to evade duty – Thus, it becomes clear that the Commissioner (Appeals) has committed an error while holding that mensrea is not required to Order confiscation under

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

he confiscation has been the evidence as that of eye estimation for determination of stock but it has been a settled principle that the allegations of clandestine removal of eye estimation is not correct.
–
The alleged admission of the Director of appellant – Held that:- The allegations of clandestine removal are serious in nature and the clandestine activities are quasi criminal hence the revenue alleging the same is required to prove it by sufficient corroborative evidences – there is nothing on record to show that the officers of revenue had done anything for the weightment of the stock as arrived by them. They have not even produced any inventory to show that the stock was physically verified by them. Nor it is the case of the Revenue that the alleged excess stock was not entered in the RG Register deliberately and with malafide intent to remove goods clandestinely.
–
The findings of adjudicating authority for the confiscation of the impugned stock and the imposition of the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Director of the said Company on 01.06.2016. The incriminating documents were ceased and the Panchnama dated 01.06.2016 was prepared. After taking the physical stock of finished goods and comparing them to the stock declared by the officers of the appellant, the Department observed the following stock viz-a-viz physical stock position: Sl. No. Description of Goods Stock entered in Daily Production register (RG-I) Actual stock as per physical verification Stock found in excess Value of stock found in excess (Approx.) 1 TMT Bars 1702.235 MT 2456.000 MT 753.765 MT Rs.1,95,22,513.50 2 Mis-rolls 87.005 MT 98.000 MT 10.995 MT Rs.1,99,009.50 Resultantly, a SCN No. 3718 dated 28.11.2016 was served alleging the clandestine clearance of goods during the month of February to May 2016 and proposing the aforesaid seized stock to be confiscated under provisions of Rule 25 of Central excise Rules 2002 with the imposition of redemption fine in view of the said confiscation and the penalty under Rule 25

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

) TMI 68 (Tri.-Del.). It is further submitted that the statement of Shri Bharat Shukla has only been relied upon alleging the same as the admission. On the contrary, there is no admission qua the excess stock allegedly found on 01.06.2016. Otherwise also, Rule 25 and Rule 26 cannot be invoked merely on the basis of admission Abu cement and others Vs. C.C.E., Indore 2018 (3) TMI 339 is relied upon. In addition, it is submitted that the physical verification of these stock is based on estimation of apparent volume. It has specifically been stated by Shri Suresh Sharma that there may be a variation from 3-3.5 MT in such estimation. It is impressed upon that such variation may result into an erroneous determination to the extent of more than 16%. Finally impressing upon the violation of principles of natural justice the order under challenge is prayed to be set aside. Appeals are prayed to be allowed. 4. While rebutting these arguments, it is submitted on behalf of the Department that the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

different consignees as seized alongwith the goods. It was also held that mensrea is not at all required to invoke Rule 25 and Rule 26 of Central Excise Rules. To adjudicate as to whether these findings are reasonable, the impugned Rules have to be looked into: Rule 25 of Central Excise Rules 2002 defines as under: (1) Subject to the provisions of section 11AC of the Act, if any producer, manufacturer, registered person of a warehouse or a registered dealer, – (a) Removes any excisable goods in contravention of any of the provisions of these rules or the notification issued under these rules; or (b) Does not account for any excisable goods produced or manufactured or stored by him; or (c) Engages in the manufacture, production or storage of any excisable goods without having applied for the registration certificate required under Section 6 of the Act; or (d) Contravenes any of the provisions of these rules or the notifications issued under these rules with intent to evade payment of d

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

rupees, whichever is greater. (2) Any person, who issues – (i) An excise duty invoice without delivery of the goods specified therein or abets in making such invoice; or (ii) Any other document or abets in making such document, on the basis of which the user of said invoice or document is likely to take or has taken any ineligible benefit under the Act or the rules made there under like claiming of CENVAT credit under the Cenvat Credit Rules, 2004 or refund, shall be liable to a penalty not exceeding the amount of such benefit or five thousand rupees, whichever is greater. Bare reading of these provisions makes it clear that the confiscation and penalty can be imposed subject to the provisions to Section 11AC of Central Excise Act, 1944 i.e. first of all it need to be seen as to whether the act of the appellant are that of fraud, collusion, wilful misstatement suppression of fact or any contravention of the provisions of law and that too with an intention to evade duty. Hon ble High Co

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

n 11AC of the Central Excise Act deals with penalty for short levy or non-levy of duty in certain cases. It says that where any duty of excise has not been levied or paid or has been short levied or short paid or erroneously refunded by reasons of fraud, collusion or any wilful misstatement or suppression of facts, or contravention of any of the provisions of this Act or of the Rules made thereunder with intent to evade payment of duty, the person who is liable to pay duty as determined under sub-section (2) of section 11ac, shall also be liable to pay a penalty equal to the duty so determined. For the purpose of invoking Section 11AC of the Act, the condition precedent is that the duty has not been levied, or paid or short-levied or short-paid or the refund is erroneously granted by reasons of fraud, collusion or any wilful misstatement or suppression of facts. If these ingredients are not present, penalty under Section 11AC cannot be levied. Since Rule 25 can be invoked subject to th

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Panchnama dated 01.06.2016 and the statements of the Company s Director allegedly being an admission are sufficient for proving the alleged clandestine removal. It is observed that: A Panchnama is a record of the things visually perceived or actually experience by the panchas in the course of investigation. If it is a search Panchnama, obviously, it should record everything that takes place in the course of search. Mere recording that the search officers offered for search of their person is not sufficient. In relation to the seizure of documents, it was necessary not only to record that the document were recovered from the premises but was also necessary to record a brief description of the exact place from where the documents were located in the premises and from where they were seized by the seizing officer. It was necessary to record as to what steps the seizing officer had taken so as to refrain himself and persons accompanying him from causing any damage to the documents as also

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

t to be linked with the activities of the concerned party. The Panchnama and the proceedings in relation thereto should not leave any room to entertain any doubt as such and for the possibility of planting any article and/or document by third person or of the scope for interference by strangers with the documents or contents thereof. Obviously, therefore, any article or document seized from any premises is required to be properly sealed after being packed with necessary wrapper or envelope or covering, as the case may be, so as to avoid any possibility of third party interference with such article or document. In the absence of such steps being taken in the course of seizure of the articles or documents, certainly the credibility of not only of the seizure and recovery but of the material seized and recovered can also be doubted. I is also necessary to record not only the description of the premises but also the movement of the officers and the panchas searching the premises and every

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

. Kolkata 2015 (324) ELT 641 (S.C.) has held that when the appellant has contested the truthfulness of the statements of the witnesses with a view discredit their testimony by way of cross examination the denial thereof by the adjudicating authority and mere reliance upon certain documents is not justified. The Hon ble Apex Court held that it was not for the adjudicating authority to presuppose as what could be the subject of cross examination. In absence of such opportunity the statement of witnesses is not worth reliance. 7. Further basis of confirming the confiscation has been the evidence as that of eye estimation for determination of stock but it has been a settled principle that the allegations of clandestine removal of eye estimation is not correct. I draw my support from the decision of Tribunal Mumbai in the case of Nilesh Steel and Alloys Pvt. Ltd. Vs. CCE, Aurangabad 2008 (229) ELT 399. This Tribunal also in the case of Shri Ganesh Alloys Vs. Chandigarh 2016 (337) ELT 595 wh

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

shed goods by the appellant. In the present case also, the only contention of the Revenue is that the excess stock was admitted by Shri Bharat Shukla Director of the appellant however I observe that there is nothing on record to show that the officers of revenue had done anything for the weightment of the stock as arrived by them. They have not even produced any inventory to show that the stock was physically verified by them. Nor it is the case of the Revenue that the alleged excess stock was not entered in the RG Register deliberately and with malafide intent to remove goods clandestinely. 9. Per contra, the perusal of the statement of Shri Bharat Shukla makes it apparently clear that there seems some lacuna in the invoice however no finished goods has been cleared from his factory without making payment of the duty. He has also stated that whatever lacuna in the invoice was brought to his notice, the deficiency thereof has already been made good. He has also reflected his cooperatio

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ion of this Tribunal in the case of Salesar Steel and Power Ltd. Vs. C.C.E. Bilaspur 2016 (9) TMI 890. Finally relying upon the decision of Hon ble Punjab & Haryana in the case of C.C.E., Jalandhar Vs. Indo-German Fabs 2007 (209) ELT 184 relying upon the decision of Hon ble Supreme Court in the case of Hindustan Steel Ltd. Vs. State of Orissa 1978 (2) ELT 1159 wherein it was held that the element of mensrea is normally required to be shown for imposition of penalty and where the Department has failed to prove the said element of mensrea no case is made out to impose penalty. 10. In view of entire above discussion, I hereby hold that the findings of adjudicating authority for the confiscation of the impugned stock and the imposition of the penalty upon Mr. Bharat Shukla are the findings without any basis and without any cogent and corroborative evidence. The said findings are therefore set aside. Both the Appeals resultantly, stand allowed. [Pronounced in the open Court on 02.01.201

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Customs – TRADE NOTICE: 02/2019/CCP/JMR – Dated:- 2-1-2019 – OFFICE OF THE COMMISSIONER OF CUSTOMS (PREVENTIVE) 'SARDA HOUSE' BEDI BANDAR ROAD OPP. PANCHVATI, JAMNAGAR -361001 F. No. VIII/48-20/Sys/Single Window/ 15-16 DATED 02.01.2019 TRADE NOTICE: 02/2019/CCP/JMR Sub: IGST revised Refund processing : m/r 1. Attention of all the Importers, Customs Brokers and the Members of the Trade are invited to the Board's Circular No.40/2018 dated 24.10.2018 on the above subject. 2. In this connection, an option has been made available in DBK_AC role for the processing of Revised IGST Refunds. The option is available only for SBS which have already been scrolled once, but with an amount lesser than the eligible amount due to scenarios as

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

differential amount. The scroll amount will be calculated by the system for the differential amount only. Separate category of revised IGST scrolls (temp and final) is available in the scroll generation option of CLK and DBK_AC roles. 9. It may further be ensured that the officer satisfies herself/ himself of the correctness of the revised refund amount claimed by the exporter in RRR and approve only the eligible amount as per the declarations made in GSTR 1 and actual exported quantity. 10. Any difficulties in this regard, may be communicated to [communication detail of Local EDI, Customs Formation] and nsm.ices@icegate.gov.in. Sd/- (M.K. Srivastava) COMMISSIONER, CUSTOMS (PREVENTIVE), JAMNAGAR – Circular – Trade Notice – Public Notice – I

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Started By: – nalin shah – Dated:- 1-1-2019 Last Replied Date:- 4-1-2019 – Sir,Kindly clarify registration liability under GST for direct selling distributors.The exemption limit of 20/10 lakhs applicable not?HSN code for the service provided.For your information, s/he do not sell any goods of the company but get facilitation fees on sells made by persons introduced by him to multilayer marketing companies like Modicare, Amway, Tupperware etc.Thanks in advance. – Reply By KASTURI SETHI – The Reply = Dear Querist, Query-wise reply is as under:- 1. Yes. Threshold exemption available. 2. 998599 (Other business support services nowhere else classified). Facilitation fee is another name for commission. In pre-GST era, i

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – Started By: – Jasbir Uppal – Dated:- 1-1-2019 Last Replied Date:- 14-1-2019 – Dear professionals, Wishing you all a very Happy and prosperous new Year I am a manufacturer and the finished goods are coming under the rate of tax @5% but the goods manufactured are charged at the rate lower than the tax paid on the input of goods and services. Now my question is how to claim the refund of the excess ITC showing in the electronic credit ledger.. Please give your valuable views.Thanks & RegardsJ.S.UppalTax Consultant – Reply By Gorantla Bhaskar Rao – The Reply = Dear queristYou can claim such amount under Refund on account of inverted tax structure and you have to file the claim with your jurisdictional office by following the prescrib

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – New Year 2019! GST Resolution – Goods and Services Tax – GST – TMI Updates – Highlights

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – GST – By: – Ganeshan Kalyani – Dated:- 1-1-2019 – Wishing you all a very Happy and a Prosperous New Year 2019! May God bless you all with Health, Wealth and Success. Following are the resolutions I would like to do for the year 2019. I will ensure that outward supplies as shown in GSTR-1 is equal to the outward supplies shown in GSTR-3B. I would reconcile outward supplies as shown in GSTR-1 / GSTR-3B with the books of accounts. I will ensure that only eligible Input Tax Credit (ITC) is claimed as credit in GSTR-3B. Any ineligible ITC would be reversed with the payment of applicable interest. I will reconcile ITC as per books with GSTR-2A auto-populated data. I will ensure that correct HSN & GST rate is charged

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Profiteering – manufacturers of Fast Moving Goods Consumer Goods (FMCGs) – Respondent had compelled them to pay additional GST on the increased prices though the incorrect tax

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – Public charitable and religious trust – scope of business – The very fact that certain services have been carved out and given out a special treatment makes it clear that all

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – 82/01/2019-GST – Dated:- 1-1-2019 – Circular No. 82/01/2019- GST F. No. 354/428/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit **** Room No. 146, North Block, New Delhi, the 1st January, 2019 To: The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Reg. I am directed to invite your attention to the Indian Institutes of Management Act, 2018 which came into force on 31st January, 2018. According to provisions of the IIM Act, all the IIMs listed in the schedule to the IIM Act are institutions of national importance . They are empowered to (i) grant degrees, diplomas, and other academic distinctions or titles, (ii) specify the criteria and process for admission to courses or programmes of study, and (iii) specify the academic content of programmes. Therefore, with effect from 31st Ja

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

e definition of educational institutions as given in notification No. 12/ 2017 Central Tax (Rate) dated 28.06.2017. Thus, they were not entitled to exemption under Sl. No. 66 of the said notification. However, there was specific exemption to following three programs of IIMs under Sl. No. 67 of notification No. 12/2017- Central Tax (Rate): – (i) two-year full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test (CAT) conducted by the Indian Institute of Management, (ii) fellow programme in Management, (iii)five years integrated programme in Management. Therefore, for the period from 1st July, 2017 to 30th January, 2018, GST exemption would be available only to three long duration programs specified above. 4. It is further, clarified that with effect from 31st January, 2018, all IIMs have become eligible for exemption benefit under Sl. No. 66 of notification No. 12/ 2017- Central Tax (R

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

f Central Excise, Baroda vs Indian Petro Chemicals [1997 (92) ELT 13 (SC)] iii. Share Medical Care vs Union of India reported at 2007 (209) ELT 321 (SC) iv. CCE vs Maruthi Foam (P) Ltd. [1996 (85) RLT 157 (Tri.) as affirmed by Hon ble Supreme Court vide 2004 (164) ELT 394 (SC) 6. Indian Institutes of Managements also provide various short duration/ short term programs for which they award participation certificate to the executives/ professionals as they are considered as participants of the said programmes. These participation certificates are not any qualification recognized by law. Such participants are also not considered as students of Indian Institutes of Management. Services provided by IIMs as an educational institution to such participants is not exempt from GST. Such short duration executive programs attract standard rate of GST @ 18% (CGST 9% + SGST 9%). As per information received from IIM Ahmedabad, annexure 2 to this circular provides a sample list of programmes which are

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ms or need based specially designed programs (less than one year). Not exempt from GST 2 31st January, 2018 onwards All long duration programs (one year or more) conferring degree/ diploma as recommended by Board of Governors as per the power vested in them under the IIM Act, 2017 including one- year Post Graduate Programs for Executives. Exempt from GST All short duration executive development programs or need based specially designed programs (less than one year) which are not a qualification recognized by law. Not exempt from GST 8. This clarification applies, mutatis mutandis, to corresponding entries of respective IGST, UTGST, SGST exemption notifications. Difficulty if any, in the implementation of this circular may be brought to the notice of the Board. Yours Faithfully, Susanta Mishra Technical Officer (TRU) Email:susanta.mishra87@gov.in Tel: 011-23095558 Annexure 1: (Programmes exempt under GST Law) The IIM- Ahmedabad refers such persons as their students who attend long durat

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – 83/02/2019- GST – Dated:- 1-1-2019 – Circular No. 83/02/2019- GST F. No. 354/428/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit ***** North Block, New Delhi, Dated the 1st January, 2019 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: reg. Representations have been received seeking clarification regarding applicability of GST on Asian Development Bank (ADB) and International Finance Corporation (IFC). The matter has been examined. 2. The ADB Act, 1966 provides that notwithstanding anything to the contrary contained in any othe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

immune from all taxation and from all customs duties. The Corporation shall also be immune from liability for the collection or payment of any tax or duty [Section 3 (1) of IFC Act, 1958 read with Article VI, Section 9 (a) of the Schedule thereto refers]. 3. CESTAT Mumbai vide final order dated 17-10-2016 in the case of M/s Coastal Gujarat Power Ltd. has held that when the enactments that honour international agreements specifically immunize the operations of the service provider from taxability, a law contrary to that in the form of Section 66A of Finance Act, 1994 will not prevail. With the provider being not only immune from taxation but also absolved of any obligation to collect and deposit any tax, there is no scope for subjecting the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – 84/03/2019-GST – Dated:- 1-1-2019 – Circular No. 84/03/2019-GST F. No. 354/428/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit **** Room No. 146G, North Block, New Delhi, the 1th January 2019 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Clarification on issue of classification of service of printing of pictures covered under 998386- reg. It has been brought to the notice of the Board that the service of printing of pictures correctly covered under service code 998386 – Photographic and videographic processing services is bei

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

developing of film for both amateur photographers and commercial clients; preparing of photographic slides; copying of films; converting of photographs and films to other media 3. Further, according to explanatory notes, the service code 998912 Printing and reproduction services of recorded media, on a fee or contract basis clearly excludes, -colour printing of images from film or digital media, cf. 998386, -audio and video production services, cf. 999613 4. In view of the above, it is clarified that service of printing of pictures falls under service code 998386: Photographic and videographic processing services and not under 998912: Printing and reproduction services of recorded media, on a fee or contract basis of the scheme of classific

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – 85/04/2019- GST – Dated:- 1-1-2019 – Circular No. 85/04/2019- GST F. No. 354/428/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit **** Room No. 156, North Block, New Delhi, the 1st January, 2019 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Clarification on GST rate applicable on supply of food and beverage services by educational institution- reg. Representations have been received seeking clarification as to the rate of GST applicable on supply of food and beverages services by educational institution to its students. It has

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

as school, college, hospitals etc. On the other hand, Notification No. 12/2017-Central Tax (Rate), Sl. No. 66 (a) exempts services provided by an educational institution to its students, faculty and staff. There is no conflict between the two entries. Entries in Notification No. 11/2017-Central Tax (Rate) prescribing GST rates on service have to be read together with entries in exemption Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. A supply which is specifically covered by any entry of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017 is exempt from GST notwithstanding the fact that GST rate has been prescribed for the same under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017. 2.1 Supply of all serv

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

ood and beverages by an educational institution to its students, faculty and staff, where such supply is made by the educational institution itself, is exempt under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, vide Sl. No. 66 w.e.f. 01-07-2017 itself. However, such supply of food and beverages by any person other than the educational institutions based on a contractual arrangement with such institution is leviable to GST@ 5%. 3. In order to remove any doubts on the issue, Explanation 1 to Entry 7(i) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 has been amended vide Notification No. 27/2018-Central Tax (Rate) dated 31.12.2018 to omit from it the words school, college . Further, heading 9963 has been added

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Goods and Services Tax – 86/05/2019- GST – Dated:- 1-1-2019 – Circular No. 86/05/2019- GST F. No. 354/428/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit Room No. 156, North Block, New Delhi, the 1st January, 2018 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: GST on Services of Business Facilitator (BF) or a Business Correspondent (BC) to Banking Company- reg. Representations have been received seeking clarification on following two issues: (i) What is the value to be adopted for the purpose of computing GST on services provided by BF/BC to a banking

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

em on behalf of the bank. On the other hand, banks (and not BCs) are permitted to collect reasonable service charges from the customers for such service in a transparent manner. The arrangements of banks with the Business Correspondents specify the requirement that the transactions are accounted for and reflected in the bank's books by end of the day or the next working day, and all agreements/ contracts with the customer shall clearly specify that the bank is responsible to the customer for acts of omission and commission of the Business Facilitator/Correspondent. 2.3 Hence, banking company is the service provider in the business facilitator model or the business correspondent model operated by a banking company as per RBI guidelines.

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

vailing exemption from GST under Sl. No. 39 of said notification, the conditions flowing from the language of the notification should be satisfied. These conditions are that the services provided by a BF/BC to a banking company in their respective individual capacities should fall under the Heading 9971 and that such services should be with respect to accounts in a branch located in the rural area of the banking company. The procedure for classification of branch of a bank as located in rural area and the services which can be provided by BF/BC, is governed by the RBI guidelines. Therefore, classification adopted by the bank in terms of RBI guidelines in this regard should be accepted. 4. Difficulty if any, in the implementation of this Cir

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

2019 (1) TMI 171 – CESTAT NEW DELHI – TMI – CENVAT Credit – duty paying invoices – denial of credit availed on the basis of supplementary invoices issued by the manufacturer – Held that:- Suppression being altogether contradictory to confusion cannot be made applicable in the given circumstances, unless and until there is some apparent positive act of the appellant on the record. Mere failure of ascertaining about the exclusion part of Rule 9 (1) (b) cannot be held to be the act of suppression or collusion on part of the appellant.
–
Above all, the supplementary invoices have been issued by the Coal Companies, which are the undertakings of the Government of India, there can be no presumption, unless rebutted, of any alleged suppression or collusion – credit allowed – appeal allowed – decided in favor of appellant. – Excise Appeal No. E/53443/2018-EX[SM] – Final ORDER NO. 50003/2019 – Dated:- 1-1-2019 – MRS. RACHNA GUPTA, MEMBER (JUDICIAL) Present for the Appellant: Mr. S.C. Kamra

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

Coalfields Ltd., Karba i.e. on account of differential excise duty paid by them, for Royalty Stowing Excise Duty, Niryat, Dev Tax & Env. Tax. The said credit is alleged to have been barred in view of Rules 3 and 9 (1) (b) of CCR 2004 with an intent to avail & utilize cenvat credit wrongly. The Original Adjudicating Authority vide order dated 30th September, 2016 has confirmed the demand as levied which has been upheld by the order under challenge herein. Hence the present appeal. 3. We have heard Shri S.C. Kamra, ld. Advocate for the appellant and Shri P. Juneja, ld. D.R. for the Department. 4. The appellant has impressed upon that similar matter has already been decided by the Division Bench of this Tribunal in Birla Corporation Ltd. vs. CGST, Jabalpur, Final Order No. 52486/2018 dated 3rd July, 2018 and same has been followed by the Single Bench of this Tribunal in decision of Jaypee Sidhi Cement and Hindustan Zinc Ltd. vs. CGST, Jabalpur and CGST Udaipur, vide Final Order No

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

both the parties in both the said matters i.e. about the moot issue of the entitlement of the appellants to avail cenvat credit on the basis of supplementary invoices issued by the Coal Companies. In both these decisions, it has been specifically noted that the connected matters of South Eastern Coal Field Ltd. are pending adjudication before the Hon ble Apex Court, issue being already sub-judiced the element of confusion cannot be ruled out. Suppression being altogether contradictory to confusion cannot be made applicable in the given circumstances, unless and until there is some apparent positive act of the appellant on the record. Mere failure of ascertaining about the exclusion part of Rule 9 (1) (b) cannot be held to be the act of suppression or collusion on part of the appellant. Above all, the supplementary invoices have been issued by the Coal Companies, which are the undertakings of the Government of India, there can be no presumption, unless rebutted, of any alleged suppress

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 01 /GST-2 – Dated:- 1-1-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Order The 1st January, 2019 No. 01 /GST-2.-WHEREAS, Sub-section (1) of Section-44 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) provides that every registered person, other than an Input Service Distributor, a person paying tax under Section 51 or Section 52, a casual taxable person and a non-resident taxable person, shall furnish an annual return for every financial year electronically in such form and manner as may be prescribed on or before the thirty-first day of December following the end of such financial year; AND, WHEREAS, for the purpose of furnishing of the annual return electronically for every financial year as referre

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 02/GST-2 – Dated:- 1-1-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Order The 1st January, 2019 No. 02/GST-2.- WHEREAS, Sub-section (4) of Section-16 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) provides that 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 or both after the due date of furnishing of the return under section 39 for the month of September following the end of financial year to which such invoices or invoice relating to such debit note pertains or furnishing of the relevant annual return, whichever is earlier; AND, WHEREAS, Sub-section (3) of Section 37 of the said Act provides that any registe

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

rn, whichever is earlier; AND, WHEREAS, the financial year 2017-18 was the first year of the implementation of the Goods and Services Tax in India and the taxpayers were still in the process of familiarising themselves with the new taxation system and due to lack of said familiarity- (i) the registered persons eligible to avail input tax credit could not claim the same in terms of provisions of section 16 because of missing invoices or debit notes referred to in sub-section (4) within the stipulated time; (ii) the registered persons could not rectify the error or omission in terms of provisions of Sub-section (3) of section 37 within the stipulated time, as a result whereof certain difficulties have arisen in giving effects to the provision

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

year 2017-18, the details of which have been uploaded by the supplier under Sub-section (1) of Section 37 till the due date for furnishing the details under Sub-section (1) of said section for the month of March, 2019; (ii) In Sub-section (3) of Section 37 the rectification of error or omission in respect of the details furnished under Sub-section (1) shall be allowed after furnishing of the return under Section 39 for the month of September, 2018 till the due date for furnishing the details under sub-section (1) for the month of March, 2019 or for the quarter January, 2019 to March, 2019. SANJEEV KAUSHAL, Additional Chief Secretary to Government, Haryana, Excise and Taxation Department. – Circular – Trade Notice – Public Notice – Instruct

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 03/GST-2 – Dated:- 1-1-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Order The 1st January, 2019 No. 03/GST-2.- WHEREAS, Sub-section (4) of Section 52 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) provides that every operator who collects the amount specified in Sub-section (1) shall furnish a statement, electronically, containing the details of outward supplies of goods or services or both effected through it, including the supplies of goods or services or both returned through it, and the amount collected under Sub-section (1) during a month, in such form and manner as may be prescribed, within ten days after the end of such month; AND, WHEREAS, certain operators, were unable to obtain registratio

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 04 /GST-2 – Dated:- 1-1-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Corrigendum The 1st January, 2019 No. 04 /GST-2.- In the Haryana Government, Excise and Taxation Depart

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 05/GST-2 – Dated:- 1-1-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Notification The 1st January, 2019 No. 05/GST-2 In exercise of the powers conferred by Section 148 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), the Governor of Haryana, on the recommendations of the Council, hereby makes the following amendments in the Haryana Government, Excise and Taxation Department, Notification No. 73/GST-2, dated the 6th August, 2018, namely :- Amendment In the

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 06/GST-2 – Dated:- 1-1-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Notificaiton The 1st January, 2019 No. 06/GST-2.- In exercise of the powers conferred by Section 168 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) read with sub-rule (5) of rule 61 of the Haryana Goods and Services Tax Rules, 2017, the Commissioner of State Tax, Haryana on the recommendations of the Council, hereby makes the following further amendments- (i) in Haryana Government, Excis

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 07/GST-2 – Dated:- 1-1-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Notification The 1st January, 2019 No. 07/GST-2.- In exercise of the powers conferred by Section 168 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) read with sub-rule (5) of rule 61 of the Haryana Goods and Services Tax Rules, 2017, the Commissioner of State Tax, Haryana, on the recommendations of the Council, hereby makes the following further amendments- (i) in Haryana Government, Exci

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 08/GST-2 – Dated:- 1-1-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Notification The 1st January, 2019 No. 08/GST-2.- In exercise of the powers conferred by Section 168 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017) read with sub-rule (5) of rule 61 of the Haryana Goods and Services Tax Rules, 2017 the Commissioner of State Tax, Haryana, on the recommendations of the Council, hereby makes the following further amendments in Haryana Government, Excise and

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =

GST – States – 09/GST-2 – Dated:- 1-1-2019 – HARYANA GOVERNMENT EXCISE AND TAXATION DEPARTMENT Notification The 1st January, 2019 No. 09/GST-2.- In exercise of the powers conferred by section 148 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), the Governor of Haryana on the recommendations of the Council, hereby makes the following further amendments in the Haryana Government, Excise and Taxation Department, notification no. 84/GST-2, dated the 18th September, 2018, namely :- Amen

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =