Author: admin_gst

Damaged goods
Query (Issue) Started By: – Bharath Kumar Dated:- 26-2-2019 Last Reply Date:- 27-2-2019 Goods and Services Tax – GST
Got 5 Replies
GST
Goods are damaged/expired while receiving by the recipient dealer. Goods are not returned to the supplier but the supplier issues non inventory credit memo at certain percentage as damage compensation purpose.
In this situation what will be the GST impact in all modes ?
Reply By AKReddy andCO:
The Reply:
Damage or expiry should be treated as sales returns only by the supplier and should issue a credit note. It will be a debit note to the receiver of goods. As he up loads the credit note in the GST portal, you have to reverse the ITC if already availed. The experts may please co

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Court Rules Provisional Attachment of Bank Accounts Unjustified; Revenue Interest Secured by Reversed Input Tax Credit.
Case-Laws
GST
Attachment of bank accounts – input tax credit – consider

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Pre-import condition for tax exemption in Foreign Trade Policy 2015-2020 declared invalid and ultra vires.
Case-Laws
Customs
Paragraph 4.14 of the Foreign Trade Policy whereby a condition of

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ESTABLISHMENT OF PROFITEERING ‘MUST’ FOR CONTRAVENTION OF SECTION 171 OF GST LAW
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 26-2-2019

While number of complaints being filed before National Anti-profiteering Authority (NAA) are on rise, still in the majority of cases, the case for contravention of section 171 of the GST law is not established as profiteering has to be established or substantiated , i.e., not passing of benefit of tax rate reduction and/ or input tax credit.
The business entities need not worry about such complaints as the NAA shall adjudicate such cases only on the basis of documentary evidence and facts following principles of natural justice. Few of such complaints recently adjudicated go on to prove that the NAA does not proceed with the pre-determined mindset that each complaint received by it is a fit case of profiteering where section 171 has been contravened.
* Kerala State Screening Committee on Anti-profiteering & DGAP

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2017
5%
345/-
–
5.
Impact Shirts 1500 H/S M.R.P. 689
211 dated 02/06/2017
2%
475/-
493 dated 14/08/2017
5%
475/-
–
6.
Impact Shirts 1500 F/S M.R.P. 699
211 dated
02/06/2017
2%
482/-
493 dated 14/08/2017
5%
482/-
–
These shirts were exempted from Central Excise duty, vide Notification No. 30/2004-CE dated 09.07.2004 and attracted only Central Sales Tax (CST) @ 2%. After implementation of the GST w.e.f. 01.07.2017, the tax rate of these products was fixed 5%. The rate of tax on these shirts was actually increased from 2% in the pre-GST era to 5% in the post-GST era. Moreover, the pre-GST and post-GST base prices (excluding tax) had remained the same. Therefore, the provisions of Section 171 of the CGST Act, 2017 have not been contravened and the allegation of profiteering by the supplier was not established.
The NAA noted that it is clear from the perusal of the facts of the case that there was no reduction in the rate of tax on the above products w.e.f. 01.07.2

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ST period) were relied upon:
S.No.
Description of the product supplied
Pre GST Invoice No. 140217101517 dated 15.06.2017
Post GST Invoice No. 14021702034 dated 22.07.2017
Base price
Total Tax
(Rs)
Total Price (Rs.)
Base price (Rs.)
GST
(Rs.)
Total Price (Rs)
1.
Panasonic LED TH43E200DX#45 580 (HSN code 85281211)
27,428/-
7349/- (Rs. 2945/- Central Excise Duty @ 12.5% on 65% of abated MRP of ₹ 36250/as per Annexure-7) + ₹ 4404/- VAT on discounted price ₹ 30,373/-)
34,777/-
27818/- (after discount)
7789/(28% GST)
35,607/-
Total Tax Pre-GST in (%)
26.79%
Total Tax Post-GST in (%)
28%
On scrutiny of invoices, DGAP observed that in the pre-GST era, the subject product attracted VAT @ 14.5% and Central Excise Duty @ 12.5% on 65% of abated MRP of the product, in terms of Notification No. 49/2008 Central Excise (N.T.) dated 24.12.2008. On implementation of the GST w.e.f. 01.07.2017, the GST rate on this product was fixed at 28%. It was reported by

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ing Committee on Anti-profiteering, Kerala and DGAP, New Delhi v. Peps Industries Pvt. Ltd., Trivandrum 2018 (12) TMI 1402 – NATIONAL ANTI-PROFITEERING AUTHORITY ;
(Date of Order 24.12.2018)
In this complaint, profiteering was alleged on the supply of Peps Spring Koil Bornell Normal Maroon 75x60x6" Mattress by not passing on the benefit of reduction in the rate of tax at the time of implementation of GST w.e.f 01.07.2017. Thus it was alleged that the supplier had indulged in profiteering in contravention of the provisions of Section 171 of CGST Act, 2017. The following invoices for pre-GST and post-GST were considered and relied upon:
S.No.
Description of the product supplied
Pre GST rate
Post GST rate
Difference (in Rs.)
Invoice No.& Date
CST Rate
Central Excise Duty Rate
Price excluding Taxes
(in Rs.)
Invoice No. & Date
GST rate
Price excluding GST
(in Rs.)
1.
Peps Spring Koil Bornell Normal Maroon 75X60X6" Mattress (HSN 94042910)
2901 dated 30.06.201

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era as compared to the pre-GST era, the provisions of Section 171 of the CGST Act, 2017 were not contravened and hence the allegation of profiteering by the supplier was not established.
While adjudicating the complaint, the NAA observed that the only issue that need to be dwelled upon in as to whether there is a case of reduction in the rate of tax and whether the provision of section 171 of CGST Act, 2017 were attracted. It was held that it is clear from the perusal of the facts of the case that there was no reduction in the rate of tax on the above product w.e.f. 01-07-2017 and that the rate of tax on the said product has increased from 14.5% (2% CST + 12.5% Excise) to 28% and therefore, the allegation of profiteering is not sustainable in terms of Section 171 of the CGST Act, 2017.
The complaint was accordingly dismissed.
End Note
In all the above complaints adjudicated by the NAA, it has been found that there was no prima facie case established and that the complaints should n

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Commissioner of GST & Central Excise, Chennai Versus M/s. SSI Media India Pvt. Ltd.
Service Tax
2019 (2) TMI 1566 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 26-2-2019
Appeal No. ST/410/2012 – Final Order No. 40378/2019
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri B. Balamurugan, AC (AR) for the Appellant
None for the Respondent
ORDER
Per Bench
Brief facts are that the respondents are engaged in providing advertising services by displaying the advertisement of their clients on bus back panels, bus shelters etc., after obtaining permission from MTC, TNSTC and Southern Railway. They obtained service tax registration under the category of Advertising Agency Service. During the course of audit of the accounts of the respondents, for the period from October and November 2009, it was noticed that the respondents had short-paid service tax during the period from October 2008 to February 2009 an

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he half-year ending 31.3.2009 declared the taxable value lesser than that was actually received by them. It was further noticed that they had not discharged service tax liability for the period July 2009 to October 2009. They had not paid the service tax within the prescribed dates for the period from September 2008 to October 2009 and had not paid appropriate interest for such belated payment. This would show that the respondent is guilty of suppression of facts with intention to evade payment of duty. The adjudicating authority has failed to take note of these facts of suppression and imposed penalty only under section 76 of the Finance Act, 1994. He prayed that the impugned order may be interfered with by imposing penalty under section 78 of the Act ibid.
3. None appeared for the respondent though notices were issued for hearing.
4. The matter is taken up for disposal after hearing the ld. AR and on perusal of records.
5. The grievance of the department is that the adjudicating a

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We have given our anxious consideration to the argument put forward by the ld. AR. After the amendment with effect from 10.5.2008, last proviso to section 78 states that if penalty is payable under such section, the provisions of section 76 shall not apply. Therefore, the penalties under sections 76 and 78 are mutually exclusive. When the adjudicating authority has considered and imposed penalty under section 76, the same cannot be set aside by the Tribunal in an appeal filed by department requesting to impose penalty under Secction78. There is no ground stated in this appeal contending that penalty imposed under Section 76 is erroneous. The Hon'ble High Court of Gujarat in Commissioner of CGST & Central Excise Vs. Sai Consulting Engineering Ltd. – 2018 (15) GSTL 708 (Guj.) has held that simultaneous penalties under Section 76 as well as 78 of the Finance Act cannot be imposed. Similar view is taken in Care and Cure (P) Ltd. Vs. Commissioner of Central Excise, Chandigarh – 2015 (38) S

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Rayudu Vision Media Ltd Versus CCT, Secunderabad – GST
Service Tax
2019 (2) TMI 1568 – CESTAT HYDERABAD – 2019 (25) G. S. T. L. 234 (Tri. – Hyd.)
CESTAT HYDERABAD – AT
Dated:- 26-2-2019
Appeal No.ST/1934/2010 – A/30266/2019
Service Tax
Mr. M.V. Ravindran, Member (Judicial) And Mr. P. Venkata Subba Rao, Member (Technical)
Ms Swetha, Advocate for the Appellant.
Shri V.R. Pavan Kumar, Superintendent/AR for the Respondent.
ORDER
Per: P.V. Subba Rao.
1. This appeal is filed against Order-in-Original No. 34/2010-ST dated 07.05.2010.
2. The appellant is engaged in imparting training in various courses in the field of animation like 2D Animation, Extreme 3D, Extreme Compositing (SHAKE), Advance Training (FCP) etc. On gathering intelligence about the activities carried out by the appellant they were asked by the department to register themselves with the service tax department in 2006. The appellant contested this direction stating that they are exempted from the

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'commercial training and coaching service' and an amount of Rs. 2,36,484/- under 'video tape production agency service' were issued. After following due process the Commissioner of Customs and Central Excise, vide impugned order, confirmed the demands with interest under Sec.75 of the Finance Act, 1994. He also imposed penalty of Rs. 5,000/- under Sec.77 and penalty equal to the duty demanded under Sec.78 of the Finance Act. Aggrieved by this order, the present appeal has been filed on the following grounds:
a. They are providing vocational training or coaching and hence are entitled to the benefit of exemption notification 24/2004-ST. It is evident from the brochures and prospectus the trainees join the institute to get trained for employment oriented course. Accordingly, the benefit of notification 24/2004-ST dated 10.9.2004 is available to them. They relied on the following case laws:
i. Sunwin Technosolutions Pvt Ltd [2007 (7) STR 700]
ii. Doon Institute of Information Techno

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sideration in terms of agreement dated 1-7-2006 to a company in New Zealand and received consideration in foreign exchange. Therefore, the same should be treated as an export of service. Further, the consideration would be covered by exemption notification which applies to small scale service providers because the rest of their services were not chargeable to service tax. If the small scale exemption is considered only an amount of Rs. 7,385/- is liable to be paid which has also been discharged with interest. In view of the above, they submitted that the production of animation movie undertaken by them is also not liable to service tax as it is an export of service.
3. On limitation, the appellant argued that they had not paid service tax because they were and are still of the view that they are not liable to pay the same. They have not suppressed or wilfully misstated or colluded or committed any fraud or contravened any provisions of the act or rules with an intention to evade payme

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ould be treated as cum-tax values and service tax should be calculated accordingly.
5. Learned departmental representative reiterates the findings of the lower authority.
6. We have considered the arguments on both sides and perused the records. There is no dispute on the facts of the case that appellant is providing training and coaching in computer animation services which according to the appellant is exempted as per notification 24/2004-ST dated 10.09.2004 as amended from time to time. According to the revenue their coaching is provided in computer hardware and software and therefore, they are excluded from the benefit of this exemption notification. A related issue is the taxability of the video film which they produced and sold to a buyer in New Zealand. The appellant contends that this should be treated as export of service and hence no service tax can be levied on the same. However, they paid service tax on this service after availing the benefit of small scale service provid

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rovided in relation to commercial training or coaching by a computer training institute.”
In explanation to the notification clause (3) has been added as follows:
“III) Computer training institute means computer training or coaching centre which provides coaching or training relating to computer software or hardware.”
8. The point of dispute is whether the animation coaching provided by the appellant should be treated as computer training in terms of the aforesaid notification or otherwise. We find in the particular facts and circumstances of the case that the appellant's coaching is not computer animation and not any computer software or hardware. When a student passes out the course he will not become either a computer hardware or a software professional but he becomes professional in using the computer software to produce animation and animation films. This is similar to CAD software or TALLY software used by professionals in their work. In our view, the test to decide whether or

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In Re: Nipha Exports Pvt. Ltd.
GST
2019 (2) TMI 1604 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2019 (23) G. S. T. L. 314 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 26-2-2019
Case No. 02 of 2019 Order No. 43/WBAAR/2018-19
GST
SHRI SYDNEY D'SILVA, AND SHRI PARTHASARATHI DEY, MEMBER
Applicant's representative heard: Shri Nikhil Jha, FCA
Preamble
A person within the ambit of Section 100 (1) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called 'the GST Act'), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act.
Every such Appeal shall be filed in accordance with

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has purchased an ambulance for the benefit of the employees, as required under Section 45(4) of the Factories Act, 1948. The Applicant argues that the input tax paid on inward supply of the ambulance is eligible for credit under the Second Proviso to Section 17(5)(b) of the GST Act, as amended w.e.f. 01/02/2019.
3. Observation & Findings of the Authority
3.1. The Applicant purchased the ambulance on 22/11/2018, as evident from the submitted Invoice No. INV19A001475 dated 22/11/2018 of M/s Supreme & Co Pvt Ltd (GSTIN: 19AACCA7232K1ZK). The amended provisions of the GST Act that the Applicant refers to have come into effect from 01/02/2019 vide Notification No. 2/2019-CT dated 29/01/2019. Section 17(5) of the GST Act, as it stood prior to the amendment, is, therefore, relevant. Eligibility for claiming input tax credit under section 16(1) is subject to the provisions of law at the time of occurrence of the taxable event, irrespective of when the claim is made. Second proviso to sectio

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sed by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre;
(iii) rent-a-cab, life insurance and health insurance except where-
(A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or
(B) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply; and
(iv) travel benefits extended to employees on vacation such as leave or home travel concession;
(c) works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract s

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In Re: M/s. Sarj Educational Centre
GST
2019 (2) TMI 1605 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2019 (22) G. S. T. L. 315 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 26-2-2019
Case Number 42 of 2018 Order No. 42/WBAAR/2018-19
GST
SHRI SYDNEY D'SILVA, SHRI PARTHASARATHI DEY, MEMBER
Applicant's representative heard Sumit Nandy, ACA Aloke Kumar Ghosh, Advocate
Preamble
A person within the ambit of Section 100 (1) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called 'the GST Act'), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act.
Every such Appeal shall b

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n 97(2)(a) & (b) of the GST Act.
1.3 The Applicant states that the question raised in the Application has neither been decided by nor is pending before any authority under any provision of the GST Act.
1.4 The officer concerned from the Revenue has raised no objection to the admission of the Application.
1.5 The Application is, therefore, admitted.
2. Submissions of the Applicant
2.1. The Applicant, according to the Written Submission made at the time of Hearing, has entered into an MOU with St. Michael's School under the management of Sunshine Educational Society, for providing boarding facility exclusively to the students of the said school. The boarding facility shall include lodging, housekeeping, laundry, medical assistance and food. The consideration is a consolidated charge on the individual boarder for the combination of the services.
2.2. The Applicant refers to Circular No. 32/06/2018 dated 12/02/2018 of CBIC. It has clarified that accommodation service to students in a

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notification. The Applicant is not an educational institution within the meaning of the above clause. Although the services are provided in terms of an MOU with St Michael's School, the Applicant charges the consideration on the individual students. Being liable to pay the consideration, such students are, therefore recipients of the Applicant's services and not the educational institution. Sl. No. 66 of the Exemption Notification is, therefore, not applicable.
4.2. The Applicant provides services to both day boarders and boarders requiring lodging facilities. In FY 2018-19, the annual consideration for the services without lodging facilities are segregated and charged on the day boarders at Rs. 71,800/- per head, of which Rs. 66,000/- is boarding fees. The boarding fees for those who enjoy lodging facilities is Rs. 1,56,000/- per head. These lodgers have to pay an additional amount of Rs. 13,600/- per head for housekeeping and laundry services, whereas the day boarders pay only Rs.

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CT (Rate) dated 28/06/2017 (hereinafter the Rate Notification), as amended from time to time. Housekeeping, including maintenance, is classifiable under SAC 9987 and taxable at 18% rate under Sl No. 25(ii) of the Rate Notification. Laundry service is classifiable under SAC 9997 and taxable at 18% rate under Sl. No. 35 of the Rate Notification.
4.5. The bundle of services offered to the recipients, therefore, consists of both taxable and nontaxable supplies. It is also evident that although the services are offered in a bundle, they are not indivisible, and different considerations are paid for different packages of such services offered to the recipients, depending upon their requirement for lodging facility. For example, laundry service is not offered to the day boarders. These are not, therefore, bundles of taxable supplies that are inseparable and supplied only in conjunction with one another in ordinary course of business. The services the Applicant supplies are not, therefore, co

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In Re: M/s. Piyush Polytex Industries Pvt. Ltd.
GST
2019 (2) TMI 1606 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2019 (22) G. S. T. L. 318 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAR
Dated:- 26-2-2019
Case Number/ARN 43 of 2018 Order No. 41/WBAAR/2018-19
GST
SHRI SYDNEY D'SILVA, AND SHRI PARTHASARATHI DEY, MEMBER
Applicant's representative heard Shri Supriyo Banerjee, Authorized Representative
Preamble
A person within the ambit of Section 100 (1) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called 'the GST Act'), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act.
E

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1.4 The officer concerned raises no objection to the admission of the Application.
1.5 The Application is, therefore, admitted.
2. Submissions of the Applicant
2.1 The Applicant in Annexure-I of the Application discusses probable classification of different types of fabrics manufactured by them, but remains silent on the description & HSN of Bags/Sacks, on which the Ruling is sought. The Applicant only states that non-woven bags/sacks are made of P.P. Non-woven Fabric and it falls under Chapter Heading 63 of the GST Tariff. In this regard the Applicant relies upon AAR Order No. CT/5492/18-C3 dated 29/05/2018 = 2018 (6) TMI 560 – AUTHORITY FOR ADVANCE RULINGS, KERALA passed by the Authority for Advance Ruling, Kerala.
3. Submissions of the Revenue
3.1 With reference to Question no. (i) & (ii), on which Advance Ruling is sought, Revenue mentions that Circular No. 80/54/2018-TRU dated 31/12/2018 clarifies the matter in Para-7 and states in Para-7.4 that “thus it is clarified that P

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f the Notification No. 01/2017- CT (Rate) dated 28/06/2017. Here, the relevant portion of Tariff item 6305 33 00 under the GST Tariff is also mentioned, which covers sacks and bags, of a kind used for packing of goods, made of man-made textile materials which are not flexible intermediate bulk containers but are of polyethylene or polypropylene strip or the like.
4.3. However, TRU clarification under Circular No. 80/54/2018-GST issued under F. No. 354/432/2018-TRU dated 31/12/2018 in Para 7, sub-Para 7.4 clarifies that Polypropylene woven and non-woven  bags and PP woven and non-woven bags laminated with BOPP would be classified as plastic bags under HS Code 3923 and would attract 18% GST; and in Para 7, sub-Para 7.5 clarifies that non-laminated woven bags would be classified as per their constituting materials. Whether the bag/sack has handle or not, is of no consequence here.
4.4. HS Code 3923 covers articles of the conveyance or packing of goods, of plastics; etc. Sub-Heading

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Jagdish Kanani Versus Commissioner, CGST & Central Excise, Indore
GST
2019 (3) TMI 485 – MADHYA PRADESH HIGH COURT – 2019 (23) G. S. T. L. 460 (M. P.)
MADHYA PRADESH HIGH COURT – HC
Dated:- 26-2-2019
M. Cr. C. No. 3472/2019
GST
Vivek Rusia J.
For the Petitioner : Shri Vivek Dalal, learned counsel
For the Respondent : Shri Prasanna Prasad, learned counsel
ORDER
This is a first application under Section 439 Cr.P.C. by petitioner- Jagdish Kanani, who has been arrested by the respondent on 31.5.2018 during investigation in Cr. Case registered as Crime No.43/2018 by Commissioner, CGST & Central Excise, Indore for the offence punishable under Section 132 (1) (a), (b) and (c) of Goods & Services Tax Act, 2017 (hereinafter, for short, “GST Act”).
2. Heard the learned counsel for the parties and perused the case diary.
3. As per prosecution/respondent story, Commissioner and Additional Commissioner noticed huge tax evasion and fraud in respect of payment of GST in t

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ms received fake invoices of Rs. 9,217.14 Lakhs for inward supply and issued fake invoices of Rs. 9,799.09 Lakhs for outward supplies. Accordingly, Jagdish Kanani and his partner defrauded Govt. Exchequer and evaded the GST to the tune of Rs. 3,422.02 Lakhs i.e. @ 18% of total supply Rs. 19,016.23 Lakhs by creating such bogus firms. In the course of investigation, the petitioner Jagdish Kanani appeared at CGST & Central Excise Head Quarter on 4.1.2019 and his statements were recorded u/s. 70 of the GST Act. He was confronted with evidence collected during the course of investigation. In his statement, he has disclosed all the information available with him and also admitted that he did not receive any goods physically nor he sold any goods and he did not submit any GST return. He is in contact with Mehul since 1994.
4. The petitioner was formally arrested on 5.1.2019 and produced before the Judicial Magistrate, First Class on 8.1.2019.
Thereafter, he applied for regular bail u/s. 439

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n bail.
6. On the other hand, Shri Prasanna Prasad, learned counsel appearing for the respondent/prosecution, opposes the bail application. He has produced the statement of the petitioner and other witnesses. He submits that the statement recorded by the petitioner is admissible in evidence and which can be used against him in the trial as held by this Court in the case of M/s. R.S. Company V/s. Commissioner of Central Excise (CEA No.24/2012) decided on 8.2.2017. The main accused have not been arrested so far, hence the bail application be rejected.
7. U/s. 69 of the GST Act, the Commissioner is having power to arrest if he has reasons to believe that a person has committed an offence specified in Clause (a) or (b) or (c) of sub-section (1) of Section 132 of the GST Act. Section 132(1) (a), (b) and (c) of GST Act define types of offences and according to which, whoever commits offence of supply of any goods or services without issue of any invoice or issues any invoice or bill withou

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Mehul Kheria Versus Commissioner, CGST & Central Excise, Indore
GST
2019 (3) TMI 486 – MADHYA PRADESH HIGH COURT – TMI
MADHYA PRADESH HIGH COURT – HC
Dated:- 26-2-2019
M. Cr. C. No. 7932/2019
GST
Vivek Rusia J.
For the Petitioner : Shri Vivek Dalal, learned counsel
For the Respondent : Shri Prasanna Prasad, learned counsel
ORDER
This is a first application under Section 439 Cr.P.C. by petitioner- Mehul Kheria, who has been arrested by the respondent on 10.1.2019 during investigation in Cr. Case registered as Crime No.43/2018 by Commissioner, CGST & Central Excise, Indore for the offence punishable under Section 132 (1) (a), (b) and (c) of Goods & Services Tax Act, 2017 (hereinafter, for short, “GST Act”).
2. Heard the learned counsel for the parties and perused the case diary.
3. As per prosecution/respondent story, Commissioner and Additional Commissioner noticed huge tax evasion and fraud in respect of payment of GST in the entire country. They apprised t

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ected him to obtain such type of GST Registration number and offered Rs. 1.00 Lakh for registration. As per his own admission, the petitioner has obtain registration certificate of as many as 59 fake firms. Present petitioner along with Jagdish Kanani created many bogus and fake firms and issued fake invoices to get the input tax-credit through these invoices and defrauded the Govt. Exchequer and as a result of the investigation till date it is found that in total, these firms received fake invoices of Rs. 9,217.14 Lakhs for inward supply and issued fake invoices of Rs. 9,799.09 Lakhs for outward supplies. Accordingly, Jagdish Kanani and his partner defrauded Govt. Exchequer and evaded the GST to the tune of Rs. 3,422.02 Lakhs i.e. @ 18% of total supply Rs. 19,016.23 Lakhs by creating such bogus firms.
In the course of investigation, said Jagdish Kanani appeared at CGST & Central Excise Head Quarter on 4.1.2019 and his statements were recorded u/s. 70 of the GST Act. He was confronted

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r under the GST Act. He has not rendered any services nor issued any invoice, therefore, he has wrongly been made accused u/s. 132 of the GST Act. His statement has already been recorded and his custody is not required for further investigation and he will cooperate in further investigation, if any, and is ready to appear before the respondent/prosecution as and when his presence is required. The investigation may take long time to conclude, hence he deserves to be released on bail.
6. On the other hand, Shri Prasanna Prasad, learned counsel appearing for the respondent/prosecution, opposes the bail application. He has produced the statement of the petitioner and other witnesses. He submits that the statement recorded by the petitioner is admissible in evidence and which can be used against him in the trial as held by this Court in the case of M/s. R.S. Company V/s. Commissioner of Central Excise (CEA No.24/2012) decided on 8.2.2017. The main accused have not been arrested so far, hen

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M/s. COCHIN SANITARY STORES Versus ASSISTANT COMMISSIONER, STATE GOODS AND SERVICES TAX, ALUVA, INSPECTING ASSISTANT COMMISSIONERE, STATE GOODS AND SERVICES TAX, MATTANCHERY AND STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, STATE GOODS AND SERVICES TAX DEPARTMENT, THIRUVANANTHAPURAM
VAT and Sales Tax
2019 (3) TMI 546 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 26-2-2019
WP(C). No. 3978 of 2019
CST, VAT & Sales Tax
MR DAMA SESHADRI NAIDU, J.
For The Petitioner : ADV. SRI. VIJAYAN. K. U.
For The Respondent : GP DR/ THUSHARA JAMES
JUDGMENT
The petitioner trades in water and sanitary equipment, allegedly made of brass; that is, articles of brass. Claiming so, the petitioner has sought the arti

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d not be efficacious, he has nevertheless insisted that the assessing authority has rendered Ext.P8 on an erroneous reading of not only facts, but also law. According to him, he has even ignored a binding judgment of this Court, that is Ext.P5.
5. To elaborate, the learned counsel submits that the goods the petitioner trades in come under HSN 7419.99.30 and they attract only 5 per cent tax. In fact, in 2006, through Ext.P3, the then Commissioner clarified this issue. But later, when the successor officer tried to trifle through the Ext.P4 with that clarification, this Court in Ext.P5 judgment has upheld the Ext.P3. According to the learned counsel, under these circumstances, the respondent authorities ought not have restored the department

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Goa Goods and Services Tax (Amendment) Act, 2019.
7/5/2019-LA Dated:- 26-2-2019 Goa SGST
GST – States
Goa SGST
Goa SGST
GOVERNMENT OF GOA
Department of Law & Judiciary
Legal Affairs Division
Notification
7/5/2019-LA
The Goa Goods and Services Tax (Amendment) Act, 2019 (Goa Act 4 of 2019), which has been passed by the Legislative Assembly of Goa on 31-1-2019 and assented to by the Governor of Goa on 19-2-2019, is hereby published for the general information of the public.
Dnyaneshwar Raut Dessai, Joint Secretary (Law).
Porvorim, 26th February, 2019.
–
The Goa Goods and Services Tax (Amendment) Act, 2019
(Goa Act 4 of 2019) [19-2-2019]
AN ACT
to amend the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017).
Be it enacted by the Legislative Assembly of Goa in the Seventieth Year of the Republic of India as follows:-
1. Short title and commencement.- (1) This Act may be called the Goa Goods and Services Tax (Amendment) Act, 2019.
(2) Save as otherwise pro

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g by way of totalisator or a license to bookmaker or activities of a licensed bookmaker in such club; and”;
(iv) clause (18) shall be omitted;
(v) in clause (35), for the expression “clause (c)”, the expression “clause (b)” shall be substituted;
(vi) in clause (69), in sub-clause (f), after the word and figures “article 371”, the expression “and article 371J” shall be inserted;
(vii) in clause (102), the following Explanation shall be inserted, namely:
“Explanation.- For the removal of doubts, it is hereby clarified that the expression “services” includes facilitating or arranging transactions in securities;”.
3. Amendment of section 7.- In section 7 of the principal Act, with effect from the 1st day of July, 2017,
(i) in sub-section (1),
(a) in clause (b), after the expression “or furtherance of business;”, the word “and” shall be inserted and shall always be deemed to have been inserted;
(b) in clause (c), the word “and” shall be omitted and shall always be deemed to have be

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erse charge basis as the recipient of such supply of goods or services or both, 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 such supply of goods or services or both.”.
5. Amendment of section 10.- In section 10 of the principal Act,-
(i) in sub-section (1),-
(a) for the expression “in lieu of the tax payable by him, an amount calculated at such rate”, expression “in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate” shall be substituted;
(b) in the proviso, for the expression “one crore rupees, as may be recommended by the Council.”, the expression “one crore and fifty lakh rupees as may be recommended by the Council:” shall be substituted;
(c) after the proviso, the following proviso shall be inserted, namely:-
“Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than

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ds 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 and on account of such registered person;”;
(ii) in clause (c), for the word and figures “section 41”, the words, figures and letter “section 41 or section 43A” shall be substituted.
9. Amendment of section 17.- In section 17 of the principal Act,-
(i) in sub-section (3), the following Explanation shall be inserted, namely:-
“Explanation.- For the purposes of this sub-section, the expression “value of exempt supply” shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule.”;
(ii) in sub-section (5),

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respect 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 aircrafts; or
(II) in the supply of general insurance services in respect of such motor vehicles, vessels or aircrafts insured by him;
(b) the following supply of goods or services or both,-
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircrafts referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward

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te in respect of which the Central Government has enhanced the aggregate turnover referred to in the first proviso, he shall be liable to be registered if his aggregate turnover in a financial year exceeds the amount equivalent to such enhanced turnover.”;
(ii) in the Explanation, in clause (iii), after the word “Constitution”, the expression “except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand” shall be inserted.”.
12. Amendment of section 24.- In section 24 of the principal Act, in clause (x), after the words “commerce operator”, the words and figures “who is required to collect tax at source under section 52” shall be inserted.
13. Amendment of section 25.- In section 25 of the principal Act,
(i) in sub-section (1), after the proviso and before the Explanation, the following proviso shall be inserted, namely:-
“Provided further that a person having a unit, as defined in the Special Economic Zones Act,

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prescribed.”;
(iii) in sub-section (2), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.”.
15. Amendment of section 34.- In section 34 of the principal Act,-
(i) in sub-section (1),-
(a) for the words “Where a tax invoice has”, the words “Where one or more tax invoices have” shall be substituted;
(b) for the words “a credit note”, the words “one or more credit notes for supplies made in a financial year” shall be substituted;
(ii) in sub-section (3),-
(a) for the words “Where a tax invoice has”, the words “Where one or more tax invoices have” shall be substituted;
(b) for the words “a debit note”, the words “one or more debit notes for supplies made in a financial year” shall be substituted.
16. Amendment of section 35.- In section 35 of the principal Ac

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ho shall furnish return for every quarter or part thereof, subject to such conditions and safeguards as may be specified therein.”;
(ii) in sub-section (7), the following proviso shall be inserted, namely:-
“Provided that the Government may, on the recommendations of the Council, notify certain classes of registered persons who shall pay to the Government the tax due or part thereof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein.”;
(iii) in sub-section (9),-
(a) for the words “in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed”, the words “in such form and manner as may be prescribed” shall be substituted;
(b) in the proviso, for the words “the end of the financial year”, the words “the end of the financial year to which such details pertain” shall be substituted.
18. Insertion of new section 43A.-

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such procedure may include the maximum amount of the input tax credit which can be so availed, not exceeding twenty percent of the input tax credit available, on the basis of details furnished by the suppliers under the said sub-section.
(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thou

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x shall be utilized 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;”;
(b) in clause (d), the following proviso shall be inserted, namely:-
“Provided that the input tax credit on account of Union territory tax shall be utilized 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;”.
21. Insertion of new sections 49A and 49B.- After section 49 of the principal Act, the following sections shall be inserted, namely:-
“49A. Utilisation of input tax credit subject to certain conditions.- Notwithstanding anything contained in section 49, the input tax credit on account of State tax shall be utilized towards payment of integrated tax or State tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such paymen

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ause (c), in item (i), after the words “foreign exchange”, the words “or in Indian rupees wherever permitted by the Reserve Bank of India” shall be inserted;
(b) for sub-clause (e), the following sub-clause shall be substituted, namely:-
“(e) in the case of refund of unutilised input tax credit under clause (ii) of the first proviso to sub-section (3), the due date for furnishing of return under section 39 for the period in which such claim for refund arises;”.
24. Amendment of section 79.- In section 79 of the principal Act, after sub-section (4), the following Explanation shall be inserted, namely:-
“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.”.
25. Amendment of section 107.- In section 107 of the principal Act, in sub-section (6), in clause (b), after the expression “arising from the said order,”, the expression “subject to a maximum of t

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shall be substituted.
30. Amendment of Schedule I.- In Schedule I of the principal Act, in paragraph 4, the word “taxable” shall be omitted.
31. Amendment of Schedule II.- In Schedule II of the principal Act, in the heading, after the word “ACTIVITIES”, the words “OR TRANSACTIONS” shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2017.
32. Amendment of Schedule III.- In Schedule III of the principal Act,-
(i) after paragraph 6, the following paragraphs shall be inserted, namely:-
“7. Supply of goods from a place outside India to another place outside India without such goods entering into India.
8. (a) Supply of warehoused goods to any person before clearance for home consumption;
(b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption.”;
(ii) the existing

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In Re : Udayan Cinema Pvt Ltd
GST
2019 (3) TMI 704 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL – 2019 (23) G. S. T. L. 345 (A. A. R. – GST), [2019] 66 G S.T.R. 63 (AAR)
AUTHORITY FOR ADVANCE RULING – WEST BENGAL – AAR
Dated:- 26-2-2019
Case No. 44 of 2018 Order No. 45/WBAAR/2018-19
GST
Mr Sydney D'Silva, Joint Commissioner, CGST & CX (Member) and  Mr Parthasarathi Dey, Senior Joint Commissioner, SGST (Member)
Applicant's representative heard : Rahul Dhanuka, Advocate
Preamble
A person within the ambit of Section 100 (1) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called 'the GST Act'), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as menti

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, read with section 20(xviii) of the IGST Act, 2017.
1.3 The Applicant declares that the issues raised in the application are not pending nor decided in any proceedings under any provisions of the GST Act. The officer concerned from the revenue has raised no objection to the admissibility of the Application.
1.4 The Application is, therefore, admitted.
2. Submissions of the Applicant
2.1 The Applicant submits, along with the Application, a written submission, including a description of the activity of a Line Producer and the proposed draft for the contract with CDIVF (hereinafter the Contract). The Contract is for the 'production services'. According to clause 5 of the Contract, CDIVF will facilitate the provisioning of the production services. The Applicant will reimburse CDIVF the cost of procuring these services, based on the bills raised by the service providers, bearing the name of the feature film. CDIVF will hire the local actors in Brazil and will provide insurance coverage

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s the budgeted amount is shared by CDIVF in advance. In case of any deviation from the budgeted amount, CDIVF shall pay the foreign supplier after taking concurrence from the Applicant. Moreover, the invoices raised by the foreign suppliers mention the name of the motion picture.
2.4 Without prejudice to the aforesaid, the Applicant further argues that the service of CDIVF can also be classified as event management service, as described under section 13(5) of the IGST Act, 2017. The shooting of the film in foreign locations, resulting in the emergence of a CD containing the filmed materials, is an 'event' that CDIVF is going to organize and manage.
2.5 At the same time, the Applicant argues that CDIVF will act as pure agent, as defined under rule 33. The Contract specifically provides that the Applicant will reimburse CDIVF at the actual cost of procuring these services, based on the bills the service providers raise in the name of the feature film.
2.6 The Applicant also believes t

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ng the location of the supplier, the recipient receives the service in Brazil and location of the recipient is, therefore, not within the taxable territory, and no tax is payable on RCM in terms of Sl No. 1 of Notification No. 10/2017 – IGST (Rate) dated 28/06/2017.
3. Submissions of the Revenue
3.1 Concerned officer from the Revenue submits that at the time of signing the Contract the so-called principal suppliers of the services or the services are not clearly identified. The Question of facilitating as an intermediary between the principal suppliers and the recipient, therefore, does not arise. CDIVF is, not, therefore, acting as an intermediary.
4. Observation & Findings of the Authority
4.1. The answer to the question about the liability to pay IGST on the reverse charge on the payments to be made to CDIVF depends upon the location of the recipient of the service. The Applicant, a resident of India, will receive the service in Brazil, where it has no fixed establishments or a

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answered first before determining whether the Applicant is liable to pay IGST on the payments to be made to CDIVF in terms of Sl No. 1 of Notification No. 10/2017 – IGST (Rate) dated 28/06/2017, provided the transaction constitutes an inter-State supply within the meaning of section 7(4) of the IGST Act, 2017.
4.3 SAC 999900 refers to services provided by embassies and representations from other countries, services provided by international organizations such as the United Nations and its specialized agencies or regional bodies, etc., the Organization of American States, the European Union, the African Union, the League of Arab States, the Organization for Economic Cooperation and Development, the World Customs Organization, the Organization of Petroleum Exporting Countries and other international bodies or extraterritorial units (refer to Explanatory Notes on Classification of Services; cbic.gov.in). Service of CDIVF does not fit this description, and, therefore, cannot be classifie

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C 998596), as described in section 13(5) of the IGST Act, refers to “admission to, or organization of a cultural, artistic, sporting, educational or entertainment event, or a celebration, conference, fair, exhibition or similar events, and services ancillary to such admission or organization”. Clearly, any event whatsoever does not fit the bill. It has to be an event of a nature specified above. The emergence of a CD containing footage for a motion picture is not a cultural, artistic, or entertainment or a similar event. It is merely a stage in the process of producing the feature film. Screening of the completed motion picture or, for that matter, of the footage contained in the CD, however, can fit the description of events included in section 13(5) of the IGST Act. CDIVF is not being contracted for organizing such a screening event for the Applicant. CDVIF is not, therefore, supplying services for organizing events included in section 13(5) of the IGST Act or the events described un

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has the Tribunal examined whether these commercial services are intermediary in nature. This judgment does not, therefore, throw much light on the question of classifying the service of a Line Producer and, therefore, not applicable in the present case.
4.7 It is evident from the above discussion that the Contract, the Applicant's argument based on the Contract, or the judgment in the case of Yash Raj Film (supra) does not throw sufficient light on the role CDIVF plays as a Line Producer in the production of the film in offshore locations. He is alternately described as an intermediary service provider or an event manager. It is, therefore, pertinent to examine the role of the Line Producer, as understood in common parlance in the film industry.
4.8 A Line Producer is a key member of the production team for a motion picture. Typically, a Line Producer manages the budget of a motion picture. Alternatively, or in addition, they may manage the day to day physical aspects of the film pr

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this schedule, the Line Producer can accurately estimate the cost of each day's shooting and produce a provisional budget estimating the total amount of funding required.
4.9 During pre-production, Line Producers, working closely with the director, production manager, first assistant director, art director and other heads of department, prepare the production schedule and budget and set the shoot date. Line Producers oversee all other preproduction activities, including hiring the production team, setting up the production office, location scouting, ensuring compliance with regulations and codes of practice, sourcing equipment and suppliers, selecting the crew, engaging supporting artists and contributors, and monitoring the progress of the art department and other production departments. Line Producers are ultimately responsible for overseeing all activities, and for ensuring that the production is completed on time and within budget. [Source: Media match – USA Media Industry mag

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al part of the activity for the production of the feature film.
4.11 The Applicant himself submits that CDIVF is going to organize and manage the shooting in Brazil that will result in the emergence of a CD containing the audio-visual content, and retains as security all production rights and talent buy-outs for such production in Brazil till receiving the final payment from the recipient. Clearly, CDVIF cannot retain production rights and talent buy-outs, even as security, unless it is engaged in the production and realization of a motion picture, explicitly or implicitly protected by copyright, without a contract for outright sale. It is, therefore, provisioning motion picture production service classifiable under SAC 999612. It is, therefore, not an intermediary service.
4.12 The service being supplied is not, therefore, classifiable as the one specified in subsections (3) to (13) of section 13 of the IGST Act, 2017. The transaction between CDIVF and the Applicant is, therefore, i

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ds any title to the goods or services or both so procured or supplied as a pure agent of the recipient of supply;
(c) does not use for his own interest such goods or services so procured; and
(d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.
The Contract does not specify CDIVF as the Applicant's pure agent. It merely refers to bills for some of the services procured will bear the name of the feature film and will be paid on an actual cost basis. The crucial test is whether these services are a charge on the Applicant or CDIVF. If CDIVF is liable to pay the suppliers of these services no matter what the Applicant does, it will be treated as a charge on CDIVF. As CDIVF holds the production rights, even though as security, all procurements of goods and services will be a charge on him unless specifically excluded. That the bills for such services bears the name of the feature film

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GST Liability on collecting blood samples for cancer testing outside india
Query (Issue) Started By: – AKReddy andCO Dated:- 25-2-2019 Last Reply Date:- 27-2-2019 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Sir,
Can anyone help me in deciding whether we have to pay GST on collecting blood samples from patients in India and providing the same to a lab in USA. The USA lab will bill me and i will pay to him, am I need to pay GST under RCM in this transaction. Am I need to char

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GST ON TOUR PACKAGE
Query (Issue) Started By: – CABIJENDERKUMAR BANSAL Dated:- 25-2-2019 Last Reply Date:- 26-2-2019 Goods and Services Tax – GST
Got 2 Replies
GST
Query : Tour Operator, XYZ has provided tour package for 6 days to Mr. A, a resident of the USA at US $. 50,000. The itinerary of the package is a follows:-
Day 1: Flight from Delhi to Jaipur
Day 2 & 3: Sightseeing in Jaipur
Day 4: Flight from Jaipur to Kathmandu Nepal
Day 5 & 6 : Sightseeing in Kathmandu
Combined tour p

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Refund of accumulated -ITC of Compensation Cess
Query (Issue) Started By: – Prem Choudhary Dated:- 25-2-2019 Last Reply Date:- 27-2-2019 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Expert
Please advice for refund provision if any for following Case:-
The manufacturer are producing Cement and Clinker under HSN-2526 and Sales within in India. Cement is taxable @28% ( SGST-14% & CGST-14%) and no any GST Compensation Cess is leviable. However in production of Cement, Coal is require to running the Kilan(generating the heat) and on procurement of Coal Cess is leviable @ ₹ 400/- per tone.
As per provision of Act, Compensation Cess can be utiliase for payment of out put Cess only. Hence Compensation Cess is going to a

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Refund of compensation cess paid on goods exported is admissible. Read Section 16(3)(b) of IGST Act, 2017.
This issue has been clarified vide C.B.I. & C. Circular No. 79/53/2018-GST, dated 31-12-2018. (Point No.9 is relevant).
Reply By Prem Choudhary:
The Reply:
Thank you Sethi ji for providing reference of provision and clarity,
We have gone through the Circular No.-45/19/2018-GST Point no-05 and your reply pint no-(i),
Kindly more clarify is require, In our Case Cement sale is within India and having accumulated Compensation Cess ITC. Whether we are eligible to claim refund of accumulated compensation Cess ITC ?
Reply By KASTURI SETHI:
The Reply:
In view of Board's clarification, you are eligible for refund claim of Compensat

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Issue related with IGCR for job work vendor
Query (Issue) Started By: – Kyle Zhu Dated:- 25-2-2019 Last Reply Date:- 26-2-2019 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Exports,
I wanna discuss a case as bellow :
Raw Material imported by a foreign company A under IGCR Benefit than send to Vendor factory for further manufacturing and return back i.e. JOB WORK.
If the company A colud process this case Under IGCR ?
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
In my

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Related Party Trnasactions
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 25-2-2019 Last Reply Date:- 27-2-2019 Goods and Services Tax – GST
Got 1 Reply
GST
XYZ(Proprietor) received Interest free loan from PQR (HUF). Both XYZ and PQR are related. Will it have any GST implications? Loan being given without charging any interest and XYZ and PQR being related, will it not amount to service provided by PQR to XYZ and for related person even without consideration, GST is require

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What will be GST rates on pending payments for house purchase
Query (Issue) Started By: – Amit Agarwal Dated:- 25-2-2019 Last Reply Date:- 25-2-2019 Goods and Services Tax – GST
Got 1 Reply
GST
I booked a house in June 2016, for amount say ₹ 50L,and paid ₹ 10% of the total value that is 5L to book house. I paid 12% GST charges on booking amount that is 5 Lakhs.
Now as building is completed, builder asked me to pay rest 45 Lakh plus GST and final demand note for ₹

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PROOF OF EXPORT OF SOFTWARE and SERVICES
Query (Issue) Started By: – Durga KARUMURU Dated:- 25-2-2019 Last Reply Date:- 25-2-2019 Goods and Services Tax – GST
Got 1 Reply
GST
What is the proof of Software or Services exported, required under GST.
A Software company providing services to an overseas company does it need GST Registration?
Do professional Accountants providing consultancy services to overseas clients need to provide any proof under GST?
Reply By KASTURI SETHI:
The Reply:
(1) SOFTEX (software export details) Form/Return is the proof of export. Monitored by Department of Electronics, DGFT and Customs. More details are as under:-
FOREIGN EXCHANGE MANAGEMENT (EXPORT OF GOODS AND SERVICES) REGULATIONS, 2015
[RBI

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about LUT on basis of ARN received from GST
Query (Issue) Started By: – kamal soni Dated:- 25-2-2019 Last Reply Date:- 25-2-2019 Goods and Services Tax – GST
Got 2 Replies
GST
I have ARN no from GST registration yet not completed.application accepted and forwarded to state.
I want LUT to export my consignment.can I have on basis of ARN received from GST dept.
Reply By SHARAD ANADA:
The Reply:
GST Regn is must for application of LUT
Reply By KASTURI SETHI:
The Reply:
Yes. Withou

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M/s Continental Milkose India Limited Versus Union Of India And 4 Others
GST
2019 (2) TMI 1456 – ALLAHABAD HIGH COURT – TMI
ALLAHABAD HIGH COURT – HC
Dated:- 25-2-2019
Writ Tax No. – 227 of 2019
GST
Bharati Sapru And Piyush Agrawal JJ.
For the Petitioner : Rishi Raj Kapoor
For the Respondent : A.S.G.I.,C.S.C.,Ramesh Chandra Shukla
ORDER
Heard Sri Rishi Raj Kapoor, learned counsel for the petitioner and Shri Rajesh Tripathi, learned counsel for the respondents no.1 to 3.
The petitioner seeks a writ of mandamus directing the GST council respondent no.2 to make recommendations to the State Government to extend the time period for filing of GST Tran-1 in the case of the petitioner because his application was not enter

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M/s. Coimbatore Lorry Urimaiyalargal Pothunala Trust Versus Commissioner of GST & Central Excise Coimbatore
Service Tax
2019 (2) TMI 1564 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 25-2-2019
Appeal No. ST/661/2012 – Final Order No. 40372/2019
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Ms. D. Naveena, Advocate for the Appellant
Ms. T. Usha Devi, DC (AR) for the Respondent
ORDER
Per Bench
The appellant was issued a show cause notice dated 9.12.2005 demanding service tax under Business Auxiliary Service for the period from 1.8.2003 to 31.3.2005. After due process of law, the original authority confirmed the demand along with interest and imposed

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to furnish evidence with regard to the reimbursable expenses. The second argument was with regard to the penalties imposed. She submitted that the adjudicating authority has imposed higher amount of penalty than that of the service tax demand confirmed. She submitted that the appellant was under bonafide belief that the activity does not fall under BAS. Therefore, the appellant did not discharge the service tax during the relevant period and was contesting the same before various forums. Therefore, she pleaded that the penalties may be set aside.
3. The ld. AR Ms. Usha Devi supported the findings in the impugned order. She submitted that the appellant has not taken the plea of reimbursable expenses before the lower authorities. It is also

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to be remanded to the adjudicating authority who shall consider whether any reimbursable expenses are to be excluded from the taxable value that has been arrived by the adjudicating authority.
6. With regard to the penalties, ld. counsel submitted that the appellants were under bonafide belief that the said activity did not fall under BAS. From the litigations taken up by the appellant, we find that the said contention requires to be considered. For this reason, we find that the penalties imposed are unwarranted and requires to be set aside, which we hereby do.
7. From the foregoing discussions, we hold that the matter is remanded to the adjudicating authority for the limited purpose of looking into whether the reimbursable expenses are t

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M/s. SAT Vision Network Versus Commissioner of GST & Central Excise, Coimbatore
Service Tax
2019 (3) TMI 46 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 25-2-2019
Appeal No. ST/660/2012 – Final Order No. 40373/2019
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri R. Balagopal, Consultant for the Appellant
Ms. T. Usha Devi, DC (AR) for the Respondent
ORDER
Per Bench
The appellant was engaged in cable operator service. On investigation, it was found that when compared to the amount paid by cable operators to the MSO, the service tax paid by cable operators was far below the actual tax payable. It was found that the appellant had not discharged the

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gnals, link to the appellant herein. It is therefore pleaded by him that the matter may be remanded to the original authority to give the appellant an opportunity to furnish evidence with respect to the eligibility of CENVAT credit on the input service. The consultant also pleaded to set aside the penalties. He submitted that out of the demand of Rs. 3,04,484/-, they had already paid an amount of Rs. 1,48,461/-.
3. The ld. AR Ms. Usha Devi supported the findings in the impugned order. She submitted that the appellant had not furnished any evidence to show the amount collected by them as well as payment of service tax. The quantification of demand and the penalties imposed are legal and proper.
4. Heard both sides.
5. The appellant has su

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that there was rivalry between different cable operators and most of the customers did not pay up the amount for which reason they could not discharge the service tax. Further, if they are eligible for CENVAT credit and the same would be eligible for adjustment towards the demand. The appellant has paid up substantial amounts. For these reasons, we hold that the penalties imposed are unwarranted and requires to be set aside which we hereby.
7. From the above discussions, the matter is remanded to the adjudicating authority for the limited purpose of granting the benefit of CENVAT credit on the basis of the documents furnished by the appellant. The penalties are set aside in toto. The appeal is partly allowed, in above terms, with consequen

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