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2019 (2) TMI 254 – CESTAT CHENNAI – TMI – Extended period of limitation – SSI Exemption – crossing of threshold limit – SSI limit exceeded during the period 2011-12, but registration taken only on 18.01.2012 – no suppression of facts – no intent to evade – Held that:- The audit party did not find any short-payment of duty.
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Interestingly, the show-cause notice is issued after more than two years invoking the extended period alleging suppression of facts. When the appellants themselves had informed the department regarding the omission to pay duty, the allegation of suppression is without any factual basis – So also, when the audit party has not raised any objection after going through the accounts in 2013, it can be safely concluded that the credit was sufficient to adjust to the duty liability. Merely because the appellants could not produce certain invoices, after more than two years cannot be a found to saddle them guilt of suppression of facts.
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The department has faile

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le goods valued at ₹ 68,09,255/- without paying Central Excise duty from 16.09.2011 to 04.01.2012 and had paid excise duty only after getting registration on 18.01.2012. Therefore, show-cause notice dated 22.08.2016 was issued to the appellants proposing to demand duty of ₹ 9,81,894/- along with interest and also proposing to impose penalties. After due process of law, the original authority confirmed the demand of ₹ 6,20,217/- after allowing the cum-duty benefit and also allowing Cenvat credit benefit of ₹ 2,46,609/- and the balance of ₹ 3,73,607/- was alone confirmed. However, equal penalty of ₹ 6,20,217/- was imposed under section 11AC of the Central Excise Act, 1944. On appeal filed before the Commissioner (Appeals), it was observed that the appellants are eligible for credit on further invoices for adjustment towards the duty liability. However, the penalty was sustained. Aggrieved, the appellants are now before the Tribunal. 2. On behalf of the

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d to the jurisdictional Assistant Commissioner, the appellants had given tabulation of the credit available and the duty liability, which was certified by the Chartered Accountant. As per such letter, after adjustment of Cenvat Credit there is no duty liability on the part of the appellants. Subsequent to such letter, the department conducted audit in 2013. On intimation by Internal Audit party calling for details, the appellants had vide letter dated 04.07.2013 submitted all the sales/purchase invoices for the year 2011-12. All the 50 invoices on which the appellants' claimed credit for adjustment towards the duty liability for the impugned period was submitted. The audit party did not raise any objection on this count. They had raised the objection on wrong availment of credit on steel roofing to an amount of ₹ 23,084/- and the appellants had paid up such wrong credit along with interest. Other than this objection, the audit party had not raised any objection with regard to

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als), the appellants had put forward these contentions and also contested the disallowance of credit with regard to the 14 invoices. The Commissioner (Appeals) had obtained and verified the invoices from M/s. IOCL and thereby allowed credit on 11 invoices but rejected the credit on three invoices. Even only these [36 + 11] 47 invoices are taken into consideration, there is sufficient eligible credit for adjustment to the duty demand confirmed. He argued that the appellants have procured inputs only from Sector Undertakings and all the transactions are accounted. They were unable to produce the invoices only because these were lost in cyclone/flood. The learned consultant adverted to page 119 of the appeal book and argued that the worksheet in the said page would show that if 47 invoices are considered, the same would be sufficient to adjust towards the duty liability as determined by the department. Even after such adjustments, there would be excess credit. 4. The learned consultant st

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of all the invoices produced by the appellants. Therefore, the demand is legal and proper. 6. Heard both sides. 7. The learned consultant has strongly argued on the ground of limitation. On perusal of records, it is see that the appellants have issued a letter to the Assistant Commissioner of Central Excise, dated 18.01.2013. In such letter, they have explained that their turnover for the clearances of Bitumen Emulsions for the period 2011-12 is liable to excise duty as they have exhausted the aggregate value of clearances on 31.10.2011. The details of the clearances for the period 2009-10, 2010-11 and 2011-12 is given by them. So also, the credit eligible on inputs for the goods manufactured during the said period is also given in detail. Such details are supported by the certificate of a Chartered Accountant. It is the case of appellants that they omitted to notice that they have exhausted the SSI limit and continued to clear the goods without payment of duty during 2011-12. On reali

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cause notice is issued after more than two years invoking the extended period alleging suppression of facts. When the appellants themselves had informed the department regarding the omission to pay duty, I find that the allegation of suppression is without any factual basis. So also, when the audit party has not raised any objection after going through the accounts in 2013, it can be safely concluded that the credit was sufficient to adjust to the duty liability. Merely because the appellants could not produce certain invoices, after more than two years cannot be a found to saddle them guilt of suppression of facts. The contention of the appellants that they have lost certain documents in the cyclone is probable. The demand raised by the department alleging that the appellants have suppressed facts with intention to evade payment of duty is wholly incorrect, since the appellants themselves have brought the fact to the knowledge of the department vide their letter dated 18.01.2013. If t

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2019 (2) TMI 434 – CESTAT HYDERABAD – TMI – Rectification of Mistake – apparent error in the record – Held that:- There is no error apparent on record calling for rectification of mistake – ROM Application dismissed. – APPLICATIONs No. E/ROM/30722-30723/2018 In APPEAL Nos. E/30445-30446/2018 – M/30580 – 30581/2018 – Dated:- 20-11-2018 – Mr. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Shri M. Rajendran, Advocate for the Appellant. Shri C. Mallikarjuna Reddy, Superintendent /AR for the Respondent. ORDER Per: Mr. P.V. Subba Rao 1. These applications for rectification of mistake were filed by the applicant against the Final Order No. A/30750-30751/2018, dated 24.07.2018 on the following grounds: a) At the time of hearing of the appeals, the Couns

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sessee asserts that they were accepted on merits. I have not found any evidence to support either argument. Be that as it may, the earlier order of the Commissioner (Appeals) is not a binding precedent on the CESTAT and therefore an independent decision can be taken in this regard . On the second question of binding precedence of the CESTAT s decision as claimed by the applicant, the final order specifically relied on the ratio of the judgments of Hon ble High Court of Bombay in the case of Manikgarh Cement [2010(20) STR 456 (Bom.)] and the judgment of Hon ble Apex Court in the case of Maruti Suzuki Limited [2009(240) ELT 641 (SC)], while deciding the matter. 3. I, therefore, find that there is no error apparent on record calling for rectif

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2019 (3) TMI 149 – DELHI HIGH COURT – TMI – Application for stay of the impugned order – VAT paid under the pre-GST regime – claim for input tax credit – Held that:- As an interim arrangement, we direct the petitioner to deposit of ₹ 5,11,60,450/- with the respondent authorities within 3 weeks from today. On the deposit being made, the same would be converted into an interest bearing FDR for a period of nine months. The FDR amount and the interest accrued thereon would abide by further orders of this Court – It is made clear that this is only an interim arrangement and the Court has not expressed any firm and final view.
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List on 19.02.2019. – w.p.(C) no. 10999 of 2018 C.M. Appl. Nos. 42815, 42816 And 48246 of 2018 Dated:- 20-1

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application for stay of the impugned order passed by the second respondent dated 18.09.2018. 2. We have issued notice in the present writ petition as the matter requires consideration. Counsel for the petitioner has drawn our attention to the computation made vide paragraphs 32 onwards. The petitioner, it is stated, had paid VAT under the pre-GST regime. Input tax credit of ₹ 8.69 crores was claimed under the post GST regime for period between 1st July, 2017 to 28th February, 2018. ₹ 7.16 crores was paid in cash in August, 2017 and ₹ 5.39 crores was paid through input tax credit. No tax has been paid thereafter. It is stated that the last instalment was accounted for making adjustment against input tax credit. In other wor

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Dated:- 19-11-2018 – Section 2 – Definitions. Section 13 – Place of supply of services where location of supplier or location of recipient is outside India. INTEGRATED GOODS AND SERVICES TAX ACT, 2017 2018 (11) TMI 959 – AUTHORITY FOR ADVANCE RULING Levy of GST – palace of supply of services – providing back office services to overseas clients – scope of the definition and term intermediary – back office administrative and accounting support – applicant is providing back office support services, payroll processing, to main records of employees to overseas companies i.e. clients and after finalization of purchase / sale between the client and its customers. Activities includes but not limited to coordinate with buyers, sellers and other nec

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Goods and Services Tax – Levy of GST on providing back office support services, payroll processing, to main records of employees to overseas clients and after finalization of purchase / sale between t

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Goods and Services Tax – Levy of IGST – Zero-rated supply – the said services of testing of the protypes, which are physically made available by the service receiver to the service provider, are provi

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Goods and Services Tax – Levy of IGST u/s 5 (3) of IGST act, 2017 – supply of lottery tickets by the organising state – applicant is liable to payment of IGST under Reverse Charge mechanism – TMI Updates – Highlights

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Goods and Services Tax – Levy of GST – Sale and/or Purchase of DFIA licenses – DFIA is distinguishable from ‘Duty Credit Scrips’ and cannot be considered as a Duty Credit Scrip – GST is applicable on

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Goods and Services Tax – Levy of GST – collected penal interest for default in repayment of EMI – The activity of collecting penal interest by the Applicant would amount to a taxable supply under the GST regime – TMI Updates – Highlights

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Goods and Services Tax – Levy of GST – education and training programmes conducted through its 13 co-operative training centres and 33 district co-operative boards – The applicant s activity is covere

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Goods and Services Tax – Started By: – BALAKRRISHNA PATNAIK – Dated:- 19-11-2018 Last Replied Date:- 21-11-2018 – My co. operating Super distributor set up, where in My Co. Invoices to the Super distributors also we some time ask to supply to selected supply in discounted rate. The price difference being claimed to us by super distributors.My question is while settling of the price difference claim as a Mfg co. can we take GST on such price difference ?please respond.ThanksBalakrrishna Patnaik – Reply By Ganeshan Kalyani – The Reply = Yes, you can take GST benefit on the discount amount given by you. The condition is the buyer has to reverse the input tax credit claimed to the extent of credit note amount. Thanks. – Reply By DR.MARIAPPAN G

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aik – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = If there is an agreement between the parties regarding to discount then such discount may be given. No time limit is in law for this. Earlier is advisable. – Reply By Ganeshan Kalyani – The Reply = Restriction on taking input tax credit on purchase invoice /debit note is given in section 16. However, the word credit note is not mentioned in it. Hence, I am also of the view that discount can be given in the timlines as mentioned in your query. – Reply By Ganeshan Kalyani – The Reply = In view of section 34 which states as under : (2) Any registered person who issues 2[one or more credit notes for supplies made in a financial year] in relation to a supply of goods or services or both shal

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2018 (11) TMI 1129 – PUNJAB AND HARYANA HIGH COURT – 2018 (19) G. S. T. L. 577 (P & H) – Release of refund with Interest – petitioner moved a representation dated 30.8.2018 (Annexure P-14) to respondent No.2 for re-credit of Input Tax Credit in electronic credit ledger, but to no effect – Held that:- The petition is disposed off by directing respondent No.3 to take a decision on the representation dated 30.8.2018 (Annexure P-14) followed by the reminders (Annexures P-15 to P-18 respectively), in accordance with law by passing a speaking order and after affording an opportunity of hearing to the petitioner within a period of one month – CWP-28035-2018 Dated:- 19-11-2018 – MR AJAY KUMAR MITTAL AND MRS MANJARI NEHRU KAUL For The Petitioner :

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ndent No.3 issued Forms GST-PMT-03 dated 3.5.2018 (Annexures P- 6 to P-9 respectively) accepting the claim for re-credit for the aforesaid months. Respondent No.3 vide orders dated 3.5.2018 (Annexures P-10 to P-13, respectively) had rejected the claim of the petitioner for refund for the months October to December, 2017 and January, 2018. Accordingly, the petitioner moved a representation dated 30.8.2018 (Annexure P-14) to respondent No.2 for re-credit of Input Tax Credit in electronic credit ledger, but to no effect. Thereafter, the reminders 31.8.2018, 28.8.2018 and 14.9.2018 (Annexures P-15 to P-18 respectively) were sent for the similar relief, but no response has been received till date. Hence, the present writ petition. 3. Learned cou

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2018 (11) TMI 1130 – ALLAHABAD HIGH COURT – TMI – Detention of goods alongwith vehicle – detention on the ground that the goods were not accompanied with the E-way bill – Held that:- This aspect of the matter has been considered by the Division Bench of this Court in M/S Godrej and Boyce Manufacturing Co. Ltd. vs. State of U.P. and two others [2018 (9) TMI 1261 – ALLAHABAD HIGH COURT] where it has been held that the goods were not covered with the requirement of E-way bill during 1.2.2018 to 31.3.2018.
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The goods in the present case were seized on 26.3.2018 that is only for the reason they were not accompanied with the E-way bill – Since the requirement of the E-way bill was not applicable for the petitioner during the above period,

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has been considered by the Division Bench of this Court in Writ Tax No. 587 of 2018 (M/S Godrej and Boyce Manufacturing Co. Ltd. vs. State of U.P. and two others) decided on 18.9.2018 and in para 56 it has been held that the goods were not covered with the requirement of E-way bill during 1.2.2018 to 31.3.2018. The goods in the present case were seized on 26.3.2018 that is only for the reason they were not accompanied with the E-way bill. Since the requirement of the E-way bill was not applicable for the petitioner during the above period, the seizure itself is bad in law. Accordingly, the impugned seizure order dated 26.3.2018 passed under Section 129(1) of U.P. GST (Annexure 5 to the writ petition) is hereby quashed and all consequential

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SREE GANESH GEARS PVT. LTD. Versus ASSISTANT STATE TAX OFFICER, SQUAD NO. IV, STATE GST DEPARTMENT, PALAKKAD, KERALA, STATE TAX OFFICER, KERALA, COMMISSIONER, STATE TAX DEPARTMENT, GOVT. OF KERALA, TRIVANDRUM, STATE OF KERALA, REP. BY SECRETARY TO GOVT., GOODS AND SERVICE TAX AUTHORITY, TRIVANDRUM AND M/s KERALA AGRO MACHINERY CORPORATION LTD., ERNAKULAM – 2018 (11) TMI 1191 – KERALA HIGH COURT – TMI – Release of detained goods with vehicle without producing bank guarantee – Held that:- Indeed has seen from Section 129(6) of the GST the detention proceedings are time bound. there are no reason to doubt that the STO will drag the proceedings contrary to the statutory mandate – the writ petition is closed leaving it open for the petitioner to

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le High court may deem fit to grant in the facts and circumstances of the case. 2. In response to submissions made by the petitioner's counsel, the Government Pleader informs the Court that as seen from the Ext.P4 notice, the STO has fixed 23-11-2018 as the date for the petitioner to appear. According to her, the STO will dispose of the matter on that date. 3. Indeed has seen from Section 129(6) of the GST the detention proceedings are time bound. I have no reason to doubt that the STO will drag the proceedings contrary to the statutory mandate. Under these circumstances I close the writ petition leaving it open for the petitioner to appear before the STO in terms of the Ext.P4 and invite an order accordingly. – Case laws – Decisions

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2018 (12) TMI 101 – JAMMU AND KASHMIR HIGH COURT – TMI – Admitting the notice for hearing – Held that:- Issue notice to show cause as to why the appeal be not admitted to hearing.
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It is directed that, subject to appellant releasing 50% of the amount due in terms of impugned judgment dated 20th March, 2018 passed by the Customs, Excise & Service Tax Appellate Tribunal to the respondent entrepreneur on furnishing solvent surety to the satisfaction of the Jurisdictional Commissioner within four weeks of furnishing of such surety, payment of balance shall remain stayed. – MCC No. 267/2018 c/w CEA No. 21/2018, IA No. 01/2018 Dated:- 19-11-2018 – The Chief Justice And Mr. Justice Rajesh Bindal, Judge For the Petitioner : Mr. Jagpaul Singh

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2018 (12) TMI 163 – CESTAT KOLKATA – TMI – Demand of Interest in terms of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AA of Central Excise Act, 1944 – Held that:- From the adjudication order that the appellant had taken credit but not utilized the same and reversed the same prior to the issuance of the show cause notice. The Adjudicating Authority following the Board’s Circular dated 03.09.2009 observed that interest is payable even when credit has not been utilized.
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Larger Bench of the Tribunal in the case of J.K. Tyre & Industries Ltd. v. Asst. Commr. of C.Ex., Mysore [2016 (11) TMI 911 – CESTAT BANGALORE] held that wrong availment of Cenvat Credit, interest is not payable, if reversed before utilization.
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The demand of interest on unutilised Cenvat Credit, cannot be sustained – appeal allowed in part. – Appeal No. E/78022/2018 – FO/76969/2018 – Dated:- 19-11-2018 – Shri P.K. Choudhary, Member (Judicial) Shri Madhusudan Lila, Manager for the Appellant (s) Shr

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availed. According to the ld. Representative, the liability of interest, if any, should be to the tune of ₹ 12,963/- only which was his submission before the lower appellate authority. 5. Ld. DR reiterates the Orders of the lower authorities and submits that the demand of interest has rightly been made and the appeal of the assessee has no merit and the same should be dismissed. 6. Heard both sides and perused the appeal record. 7. I find from the adjudication order that the appellant had taken credit but not utilized the same and reversed the same prior to the issuance of the show cause notice. The Adjudicating Authority following the Board s Circular dated 03.09.2009 observed that interest is payable even when credit has not been utilized. I find that the Larger Bench of the Tribunal in the case of J.K. Tyre & Industries Ltd. v. Asst. Commr. of C.Ex., Mysore [2016 (340) E.L.T. 393 (Tri.-LB)] held that wrong availment of Cenvat Credit, interest is not payable, if reversed be

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Mad.) and decision of this Hon ble Tribunal in Force Motors Ltd v. CCE., Pune – 2015-TIOL-1833- CESTAT-Mum = 2015 (329) E.L.T. 543 (Tribunal). The learned Authorised Representative strongly argued that if the audit had not pointed out the wrong availment of cenvat credit, it would have resulted in short levy and by simple filing returns by itself will not rescue the appellants from the mischief of suppression. 5. We find that the appellants had taken Cenvat credit on the basis of invoices raised in the name of their Head Office. The said Cenvat Credit has been taken by one of their manufacturing unit. There is no allegation of double availment of the said Cenvat Credit by any other unit. It is also observed that the appellants had reversed the Cenvat Credit on being pointed out by the audit. The appellants have not seriously contested the necessity or correctness of reversal of the Cenvat Credit before the lower authorities. However, they are seriously contesting the levy of interest a

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ilization, the same amounts to not taking credit. In the circumstances, where CENVAT credit is taken wrongly, but reversed before the same is utilized, it amounts to not taking credit. Accordingly, when no credit is taken, the provisions of Rule 14 of the Rules would not be attracted. The view adopted by the Tribunal as well as the authorities below is, therefore, in consonance with the view taken by the Supreme Court in the above referred decision. 6. We find that in this case the appellant had reversed the credit as soon as it was pointed out that they had wrongly availed the same, and they had not utilised the Cenvat Credit so availed till the time of reversal of the same. Therefore, the decision of Hon ble Jurisdictional High Court, relying upon the decision of the Hon ble Supreme Court on the very same issue is applicable in this case. We, therefore, hold that no interest is payable in the present case. On the issue of penalty under Section 11AC, it is seen that the same is not le

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2019 (1) TMI 320 – CESTAT NEW DELHI – TMI – Interest on Delayed payment of service tax – payment of tax made before issuance of SCN – amendment in Section 80 of the Finance Act, 1944 – time limitation – Held that:- Section 80 of the Finance Act, 1944 makes it clear that once the payment has been made before the issuance of Show Cause Notice no question of any penalty nor of interest at all arises – The payment in the present case was made after the said amendment but before the issuance of Show Cause Notice. No doubt the payment is for the period prior the said amendment but since the amendment is beneficial in nature, retrospect effect can be given to the said amendment. Therefore, no question of imposition of penalty at all arises.
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Time limitation – Held that:- SCN is apparently beyond the normal period of one year. There is the apparent acknowledgment on the part of the Adjudicating Authority about the decision of Delhi High Court as has been impressed upon by the appellant.

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the appellant had made delayed payment of service tax for the period w.e.f. April 2008 to September 2012. However, no interest was paid on the said delayed payment. Accordingly, a Show Cause Notice No. 10060 dated 01.08.2014 was served upon the appellants proposing the recovery for ₹ 2,87,881/- as an interest to be paid on delayed payment of service tax. In view of Section 75 of the Finance Act, the said proposal was initially confirmed by the Order of Assistant Commissioner No. 498 dated 27.01.2016. Being aggrieved, an appeal before the Commissioner (Appeals) was filed who vide the Order under challenge has upheld the findings. 2. I have heard Mr. Chirag Jain, Ld. CA for the appellant and Mr. P.R. Gupta, Ld. DR for the Department. 3. It is submitted by the appellant that out of the entire disputed period service tax for the period w.e.f. April 2008 to March 2009 and for the period April 2012 to September 2012 has been paid well in time and Department itself has not levied any in

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been issued on 19.08.2014 is very much beyond the one year period as is prescribed for the issuance thereof. It is submitted that in view of the reason mentioned above there was no intention of the appellant to evade the duty. Department was not entitled to invoke the extended period of limitation. The Show Cause notice is alleged by barred by time. Ld. Counsel has relied upon the decision of inclusion of Quality Ice Cream Co. Vs. Union of India 2012(27) S.T.R. 8(Delhi) submitting that where the period of limitation prescribed for claim of principal amount has expired, the time barred demand cannot apply to the claim even for interest therein. It is mentioned that the Adjudicating Authority below has ignored the said decision. The Order is prayed to be set aside and Appeal is prayed to be allowed. 4. Per contra, while rebutting these arguments, Ld. DR has justified the impugned order. Para 5.7 thereof is impressed upon submitting that as per Section 75 it is mandatory for the assessee/

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n made in time. (ii) With respect to the remaining period of April, 2009 to March, 2012 the same could not be deposited due to not being received from tenants in view of Delhi High Court decision as above. However, the full tax was deposited by the appellant before the issuance of the Show Cause Notice. I observed that there has been an amendment in Section 80 of the Finance Act, 1944 vide which sub-Section 2 thereof was inserted which reads as follows:- I find that an amendment in Section 80 was made by inserting sub-section (2), which provides that Notwithstanding anything contained in the provisions of section 76 or Section 77 or Section 78, no penalty shall be imposable for failure to pay service tax payable, as on the 6th day of March, 2012, on the taxable service – referred to in sub-clause (zzzz) of clause (105) of Section 65, subject to the condition that the amount of service tax along with interest is paid in full within a period of six months from the date on which the Finan

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nt. In the given circumstances, the non-payment was actually due to the said prevalent confusion. There is nothing on record which may be considered as an evidence qua positive act of the appellant of having an intention to evade the duty for the said period. Once there is no such intention apparent, Department was not entitled to invoke proviso to Section 73 of Central Excise Act, 1944. Show Cause Notice is definitely barred by time. In accordance of the decision of Quality Icecream (supra) I am of the opinion that once the main claim is barred by time, the claim of interest thereupon has no more sustainability. The decision as relied upon by the Department is not applicable to the facts and circumstances because no doubt as per Section 75, interest is mandatory but recovering the same beyond the period of limitation no more retains the character of it being compensatory in nature rather it acquires the character of penalty which can be leviable only in case of deliberate violation of

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2019 (1) TMI 701 – CESTAT ALLAHABAD – TMI – Penalty – CENVAT Credit on removal of capital goods after use – Rule 3 (5A) of Cenvat Credit Rules – appellant’s contention that they were not aware of the legal position that they have to pay the duty at the time of clearance of the Cenvatable Capital Goods – duty paid with interest paid on being pointed out – Held that:- There is no dispute on the facts that admittedly the clearances of the transformer was by raising an invoice in which case, it cannot be said that there was any mala fide on the part of the assessee to suppress the fact of clearance of the transformer. Non-payment duty by itself cannot lead to ipso facto presence of any mala fide – Tribunal in the case of Commissioner of Centra

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As per the audit conducted in their factory it was found that the appellant had procured a Transformer and availed Cenvat Credit of 50% of the total duty paid on the same in January, 2011 and the balance was availed in the next year. The said transformer was subsequently cleared by the appellant vide Invoice No.2200 dated 05.09.2014 without paying the duty of ₹ 2,67,820/- on the transaction value in terms of Rule 3 (5A) of Cenvat Credit Rules. On being pointed out, they paid duty of ₹ 3,12,000/- and also deposited interest of ₹ 91,588/-. 2. On the above basis they were issued a show cause notice dated 18.10.2016 which was adjudicated by the Original Adjudicating Authority confirming the demand to the extent of ₹ 2,6

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ty is being challenged before Tribunal. 4. It is appellant s contention that they were not aware of the legal position that they have to pay the duty at the time of clearance of the Cenvatable Capital Goods. The transaction of sale of the transformer was made on the basis of the invoices, which was part of their records and as such it cannot be said that there was any mala fide on their part to evade any duty. As soon as the said fact was pointed out to them by the audit, they deposited the duty along with interest even before the issuance of the show cause notice. The payment of interest is penal in nature and as such no further penalty is required to be imposed upon them. Reliance stands placed upon various decisions of the Tribunal. 5. I

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2019 (2) TMI 403 – CESTAT HYDERABAD – TMI – CENVAT Credit – waste arising during the manufacture is cleared for a consideration – demand of reversal of CENVAT credit proportionate to the value of the waste BOPP film and waste paper scrap cleared – explanation (1) to Rule 6 (1) of the CENVAT Credit Rules, 2004 – Held that:- This issue is no longer res integra and it has been held in the cases of Menon & Menon [2017 (12) TMI 85 – CESTAT MUMBAI] and M/s Shivratna Udyog Ltd [2017 (9) TMI 985 – CESTAT MUMBAI] that explanation (1) to Rule 6 of CENVAT Credit Rules, 2004 covers non-excisable goods manufactured or produced using inputs on which CENVAT credit has been availed. It does not cover waste material which arises during the process of manufacturing even if the same is cleared for some consideration.
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Appeal allowed – decided in favor of appellant. – Appeal No. E/30609/2018 – A/31566/2018 – Dated:- 19-11-2018 – Mr. P. Venkata Subba Rao, Member (Technical) Shri S. Thirumalai, Advoca

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n terms of Rule 6 of the CENVAT Credit Rules, 2004, the CENVAT credit shall not be allowed on such quantity of input as is used in or in relation to the manufacture of exempted goods or for provision of exempted services or input services as is used in or in relation to the manufacture of exempted goods and their clearance up to the place of removal. Explanation (1) has been added to this Rule as follows. For the purpose of this Rule, exempted goods or final products as defined in clauses d and h of Rule 2 shall include non-excisable goods cleared for consideration from the factory. 4. The department s contention is that in view of the explanation (1) to Rule 6 of CENVAT Credit Rules, 2004, the BOPP film and waste paper scrap, both of which are admittedly waste materials, should be treated as non-excisable goods cleared for consideration and proportionate amount of CENVAT credit has to be reversed. 5. Learned counsel would draw the attention of the Bench to the case of Menon & Meno

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kimmings of non-ferrous metals or any such by-product or waste, which are non-excisable goods and are cleared for a consideration from the factory need to be treated like exempted goods for the purpose of reversal of credit of input and input services, in terms of rule 6 of the CENVAT Credit Rules, 2004. 7. In view of the above, learned departmental representative would argue that the legal position with respect to reversal of CENVAT credit under Rule 6 (1) post introduction of explanation (1) therein has been clarified by the CBEC. Therefore, according to the said circular, the same needs to be followed. 8. I have considered the arguments on the both sides. The short point to be decided is whether in view of the explanation (1) to Rule 6 (1) of the CENVAT Credit Rules, 2004, CENVAT credit needs to be reversed when waste that arises during the manufacture is cleared for a consideration by the assesee. This issue is no longer res integra and it has been held in the cases of Menon &

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Goods and Services Tax – Started By: – Shyam Agarwal – Dated:- 18-11-2018 Last Replied Date:- 6-1-2019 – Query is regarding Combined contract for Supply and Installation of Electric Overhead Travelling Crane. Whether the same should be considered as a works contract under GST or supply of Goods that is Crane. As per recent Advance Rulling of Maharashtra – In case of M/s Mukund Ltd-GST AAR Maharashtra = 2018 (10) TMI 1243 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA , it is held that EOT Grab Cranes r liable for GST@5% as these are used for waste to energy product as a Renewable Energy. In this it was also discussed that Electric Overhead Travelling Grab Crane attached to the fixed support classifiable under Tariff heading 84261100.Is it mean that AAR held EOT Cranes as a goods? But after Installation the same should be considered as a works contract. Please share your analysis on the same. Whether Combined contract for Supply and Installation of Electric Overhead Travelling Crane is to

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nes run is already affixed by client himself with his structure (actually building design itself require some specification if there will be Installation of Electronic Overhead Travelling Crane) and we supply the EOT Crane and install the same on Gantry Beams which is already affixed by client and we do only supply, install and Commissioning the crane. – Reply By Vamsi Krishna – The Reply = Under GST laws, the definition of Works Contract has been restricted to any work undertaken for an Immovable Property unlike the existing VAT and Service Tax provisions where works contracts for movable properties were also considered. The Works Contracts has been defined in Section 2(119) of the CGST Act, 2017 as works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as good

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orks contract service is clear. – Reply By Ganeshan Kalyani – The Reply = In re. Precision Automation And Robotics India Limited – 2018 (9) TMI 1106 – AAR, Maharashtra – Reply By Shyam Agarwal – The Reply = Thanks Sir for your reply please also clear 2nd issue where in Gantry Beams which is attached to Building is in the scope of customer and our scope is to supply the EOT Crane and install the same on the pre fabricated Gantry beams where in the wheels of the EOT Cranes are installed so that they can run and Complete Commissioning of the same then still it remains works contract.. – Reply By Ganeshan Kalyani – The Reply = I will compare this with lift. In case of lift the final assembling of the lift parts happens at customer sight. This falls under works contract service. Similar would be the case of yours. – Reply By kollengode venkitaraman – The Reply = IT WILL BE A SUPPLY OF GOODS AS THE GANTRY BAR IS MOVABLE. THE EOT CRANE CAN BE DISMANTLED WITHOUT DAMAGE AND REINSTALLED ELSEWHER

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Goods and Services Tax – Started By: – Karan Sidhu – Dated:- 17-11-2018 Last Replied Date:- 19-11-2018 – Hello members,Please guide, Can I use my existing firm's GST number to purchase trial goods for my new startup venture? Please note, My new startup has no similarity with my existing business.Advance thanks!! – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = In my view you can use the existing GST number for your new venture. – Reply By Ganeshan Kalyani – The Reply = If your PAN (Perman

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Goods and Services Tax – Started By: – Shrivats Pandey – Dated:- 17-11-2018 Last Replied Date:- 20-11-2018 – Sir my gst was cancelled for non filling of returns Now I have filed all the returns but 30 days have been passed the cto has asked me to make an appeal to the deputy commissioner. The deputy commissioner has accepted my appeal and passed the order for the annul of cancellation order of gst no. But in my gst portal the option for revocation is not showing I have approached to the proper officer he doesn't not have any idea for the same Kindly suggest me how to file for revocation as the deputy commissioner has accepted the appeal and has passed the order to revoke the cancellation of gstin – Reply By Shrivats Pandey – The Reply

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operly. Try to contact and your problem will be solved. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = You have to file complaint as advised by Shri Sethi. – Reply By Shrivats Pandey – The Reply = Sir I have filed the complaint and the Dc has also filed complaint can I use existing no for business till the complaint is being solved Thank you Seth sir for your guidence – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = Till restoration you could not use the number. – Reply By KASTURI SETHI – The Reply = Let the Common Portal System restore it. Without acceptance by the system, physical usage of registration number on body of invoice is zero. You may be in trouble. Rightly advised by Dr.Govindarajan Sir. – Reply By Ganeshan Kalyani – The

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2018 (12) TMI 475 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2019 (20) G. S. T. L. 174 (A. A. R. – GST) – Classification of goods – rate of GST – turbine generator set to be supplied by the applicant to the buyer for use in waste-to-energy project – whether classified as “Renewable energy devices and parts for the manufacture of waste to plants/ devices”, attracting 5% levy? – Sl.No.234 of Schedule 1 of Notification 1/2017 – IGST (Rate) dated 28.06.2017.
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Held that:- A turbine is a rotary mechanical device that extracts energy from a fluid flow and converts it into useful work. A steam turbine is a device that extracts thermal energy from pressurized steam and uses it to do mechanical work on a rotating output shaft. Therefore a Turbine” is not a device that converts waste to. In fact in the instant case the waste is used to generate steam and the steam runs the turbine to generate electric power. Turbine itself does not work on waste but converts steam into energy. The convers

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to be covered under serial number 234 of Notification No. 1/2017-lntegrated Tax(Rate) dated 28.06.2017.
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Ruling:- The Turbine Generator Set to be supplied by the applicant for use in waste to energy project is not covered under Sl.No.234 of Schedule I of Notification No. 1/2017 dated 28.06.2017. – AAR No. KAR ADRG 28/2018 Dated:- 17-11-2018 – SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by Sri Shivadas Advocate, M/s. Lakshmikumaran & Sridharan, Advocates ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017 1. M/s. Triveni Turbine Limited, (called as the Applicant hereinafter), 12A, Peenya Industrial Area, Bengaluru – 560058, having GSTIN number 29AAACT4550H1ZA, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017, KGST Act, 2017 & IGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in f

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the applicant company, in 2010, to emerge as a pure play turbine manufacturer. b. The applicant is a manufacturer of steam turbines for providing renewable power solutions specifically for Biomass, Sugar and Process co-generation, Waste-to-energy and District Heating. Apart from manufacturing, the applicant also provides aftermarket services to its customers as well as turbine users of other manufacturers supported by its customer care support, which operates through a network of service centres. c. The applicant enters into agreements with their customers for design, manufacture, and supply of Steam Turbine Generator sets and also for commissioning and installation of Steam Turbine Generator sets at the site of the customers. In the course of such supplies, the applicant uses the Steam Turbines manufactured by them, while other components like condenser, Gear box, alternator, AVR panel, etc. are procured from outside vendors. In some other agreements, the applicant merely supplies the

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s for the project implementation, each of the project sites are to comprise of the following facilities: i. Receiving and storage facility for MSW delivered at doorstep by the urban local bodies (ULBs); ii. Processing facility to improve the quality of MSW for use as fuel in boilers; iii. Incinerators with boilers to produce super heated steam along with flue gas treatment; iv. Steam turbine generator for producing electricity; v. Air-cooled condensers vi. Balance of plant and other associated auxiliary facilities. g. He stated that the Waste-to-energy project would be an integrated facility for processing Municipal Solid Waste delivered by the Municipal Corporation and other urban local bodies forming a part of the cluster. Fresh mixed MSW would be transferred to the receiving pits from the transport vehicles. After separation of the leachate, further drying would take place in the storage pits. Manual and mechanical segregation of inert and hazardous material would be carried out bef

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ction 97(2)(b) of the KGST Act provides that the question in respect of which Advance Ruling is sought shall be inter alia in respect of the applicability of a notification issued under the provisions of the GST Act and particularly with reference to the application of a particular entry in one of the Schedules to the Notification. In the instant application, the applicant has sought to determine the applicability of Schedule I of the Notification No. 1/2017- integrated tax (Rate) dated 28.06-2017 to the supplies of Turbine Generator to be made by the applicant to waste-to-energy projects and the rate of tax applicable on such supplies. The applicant has, therefore submitted that question on which the present advance ruling is sought fulfils the requirement under section 97(2)(b) of the KGST Act. 5. The applicant submits that the Turbine Generator sets that are to be supplied to the waste-to-energy projects fall under Sl.No. 234 of the Schedule I of Notification No. 1/2017-Integrated T

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he General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. The applicant submits that the Turbines and other items bought out items, proposed to be supplied by the applicant would undisputedly be covered under tariff heading 84 of the Customs Tariff Act, 1975, which deals with Nuclear Reactors, Boilers, Machinery and mechanical appliances; parts thereof, 7. The applicant submits that Schedule I of the Notification No. 1/2017-Integrated Tax (Rate) provides the list of goods that attract IGST at the rate of 5%. Sl.No.234 of the Notification reads as below: 234 84 or 85 or 94 Following renewable energy devices and parts for their manufacture (a) Bio-gas plant (b) Solar power based devices (c) Solar power generating system (d) Wind mills, Wind Operated Electricity Generator (WOEG) (e) Waste to energy plants / devices (f) Solar lantern / solar lamp (g) Ocean waves / tidal waves devices / plants As per the entry, supplies of

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cipal solid waste energy projects in urban areas with a view to reducing environmental pollution apart from generating additional energy . According to the United States Environmental Protection Agency, waste-to-energy is a clean, reliable, renewable source of energy. According to the Waste-to-energy Research and Technology Council, founded by the European Economic Community, the WTE plants have significant environment benefits. Generally, every project contain a series of equipment from the pit where the MSW is dumped to the generator, from where the electricity generated is uploaded to the grid. Each of this equipment form an indispensable part of waste-to-energy conversion process. 9. The detailed project report on Municipal Solid Waste Management for Vishakhapatnam prepared and submitted by Feedback Infra Private Limited in JV with Eco Save Systems Pvt. Ltd in September 2015 (available at http://www/sac.ap.gov.in/Sac/Userlnterface/Downloads/MSWMReports/Vizag%20DPR- 1.pdf) describes

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om Local with status monitoring at DCS) Fire Alarm and detection System (At Fire House and Repeat Alarm at CCR) Cooling Water System (Operation, Control and Monitoring from DCS at CCR) The I&C System will be configured to perform the following basic functions. (Emphasis supplied) 10. Schedule I of the Notification No. 1/2017 dated 28.06.2017 in Sl.No.234 includes renewable energy devices including waste to energy plants and parts for their manufacture. From the above, the applicant submits that the Steam Turbine Generator sets that are to be supplied by the applicant to the waste to project forms a part of waste-to-energy plant . Therefore, the applicant states that as per his understanding, the product Steam Turbine Generator Sets to be supplied by the applicant falls under Sl.No.234 of the Notification No. 01/2017 IGST (Rate) dated 28.06.2017 and consequently, is liable to IGST at the rate of 5%. 11. The applicant has brought to the notice of the Authority the judgement of the CE

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The Central Excise Notification 6/2002-CE dated 01.03.2002 is extracted as under Sl.No. 237 in the Central Excise Notification 6/2002-CE dtd 01.03.2002 S.No. Chapter or heading No. or sub-heading No. Description of goods Rate under the First Schedule Rate under the Second Schedule Condition No. 237 Any Chapter Non-conventional energy devices/ systems specified in List 9 Nil List 9 includes: Agricultural, forestry, agro-industrial, industrial, municipal and urban waste conversion device producing energy . Hon ble CESTAT Bangalore denied the benefit of the exemption to the appellant in the ground that the steam turbine supplied by the appellant to the bio-mass based plant merely converts from one form to another (from heat energy to electrical energy) and that the exemption is only for waste conversion devices producing energy from the waste material (restricted to boilers, generating heat energy from the waste). This decision of the Tribunal was affirmed by the Hon ble Supreme Court in

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tification not only includes the boilers used in conversion of waste to heat energy but also includes all the equipment falling under Chapter headings 84, 85 or 95 of the Customs Tariff Act, 1975 used in the entire process of converting waste to energy from the dumping pit to electricity generator. 13. Therefore, the applicant submits that the rationale of the Hon ble CESTAT in the aforementioned case in the context of Central Excise Notification does not apply to interpret the present notification and therefore that the Turbine Generator set to be supplied by the applicant for use as a part of the Waste to Energy Plant falls under Sl.No.234 of Schedule I of Notification No. 1/ 2017-Integrated Tax (Rate) attracting IGST at the rate of 5%. 14. FINDINGS & DISCUSSION: 14.1 We have considered the submissions made by the Applicant their application for advance ruling as well as the submissions made by Sri. Shivadas, Advocate during the personal hearing. We have also considered the issue

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dules wherein the listed goods attract the rate of IGST applicable to the respective Schedules. Schedule I comprises of goods which are chargeable to IGST at the rate of 5%. Serial number 234 covers the listed renewable energy devices and parts for their manufacture and these items attract 5% IGST. One of the items in the list is Waste to energy plants/devices . 14.5 The applicant manufactures Turbines and supplies them to clients who use the turbines in plants which convert waste to energy . The applicant, therefore, contends that when the turbines are supplied for such plants then the turbines are covered by serial number 234 of the aforementioned Notification and should be taxed at 5% IGST. 14.6 In view of the above, the issue before us to decide, for giving advance ruling on the issue sought by the applicant, is whether the product Turbine is waste to energy plant / device or not when supplied for use in waste to energy project. 14.7 A turbine is a rotary mechanical device that ext

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n which in turn is utilized to convert water into steam and the said steam runs the turbine to generate electric power. The turbine runs on steam irrespective of whether the steam is obtained by combustion of waste or any other means. Therefore the fact that in this particular case the steam was generated out of waste cannot lead to the conclusion that the turbine is a renewable energy device. The same turbine can run equally well on steam generated by use of coal etc., We are, therefore, of the view that turbine in question will not qualify to be covered under serial number 234 of Notification No. 1/2017-lntegrated Tax(Rate) dated 28.06.2017. 15. In view of the foregoing, we rule as follows RULING The Turbine Generator Set to be supplied by the applicant for use in waste to energy project is not covered under Sl.No.234 of Schedule I of Notification No. 1/2017 dated 28.06.2017. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement –

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2018 (12) TMI 476 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2019 (20) G. S. T. L. 170 (A. A. R. – GST) – Classification of an item – tutty-fruity – Whether Tutti-fruity be classified under HSN 08111010 or 20060000? – Held that:- The Customs Tariff Act, 1975 including the Section & Chapter Notes, General Explanatory Notes shall apply to the classification of the goods under GST also – Chapter 8 of the Customs Tariff Act of India relates to Edible fruits and nuts; peels of citrus fruit or melons. Tariff item 0811 deals with “fruits and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter.
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It becomes evident that the main requirement for a commodity to be classified under the tariff heading 08.11 must be: They are fruits and nuts, a. uncooked or cooked by steaming or boiling in water; b. frozen; c. Whether or not containing added sugar or other sweetening matter – The explanatory notes also provide tha

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eeraj Agarwal, Partner ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017 1. M/s. Wonderfrutz Products, (called as the Applicant hereinafter), having its registered office at No.80, Masthi Road, Mylandahalli Village, Kudaynoor Post, Malur Taluk, Kolar District, having GSTIN number 29AACFW4389C1ZW, has filed an application for Advance Ruling under Section 97 of CGST Act, 2017 and KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-Ol discharging the fee of ₹ 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant is a partnership firm engaged in the manufacture and selling of Tutty-fruity and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: a) Whether Tutti-fruity be classified under HSN 08111010 or 20060000. 3. The applicant furn

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1 and 2006. The description given by these HSN codes are as follows: i. Chapter 8, HSN Code 0811 reads as Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter, Code 0811 10 10 containing added sugar. ii. Chapter 20, HSN Code 2006 00 00 reads as Vegetables, fruits, nuts, fruit peel and Other parts of plants, preserved by sugar (drained, glace or crystallised) d. The process of preparation of tutti-frutti, as furnished by the Applicant, is as under: i. Raw papaya is peeled, stored in brine solution, cut into cubes ii. Next it is washed and boiled in water and cooked with sugar, colour, presentative, citric acid until desired quality is attained iii. Once ready the product is dried and packed for sale. e. The product Tutti-frutti is primarily candied raw papaya and both chapters 8 and 20 cover fruits. However, on analysis of the process of preparation, boiling is an essential part of the process and ch

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e following clauses, with regard to classification of goods under GST, at explanation to the said Notification. (iii) Tariff item , sub-heading heading and Chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. In view of the above, the Customs Tariff Act, 1975 including the Section & Chapter Notes, General Explanatory Notes shall apply to the classification of the goods under GST also. 4.3 Chapter 8 of the Customs Tariff Act of India relates to Edible fruits and nuts; peels of citrus fruit or melons. Tariff item 0811 deals with fruits and nuts, uncooked or cooked by steaming or boiling in water, frozen, w

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he expressions chilled and frozen , see the General Explanatory Note to this Chapter) Fruit and nuts which have been cooked by steaming or boiling in water before freezing remain classified in this heading. Frozen fruit and nuts cooked by other methods before freezing are excluded (Chapter 20) Frozen fruit and nuts to which sugar or other sweetening matter has been added are also covered by this heading, the sugar having the effect of inhibiting oxidation and thus preventing the change of colour which would otherwise occur, generally on thawing out. The products of this heading may also contain added salt. 4.3.2 The explanatory notes also provide that the heading 08.11 applies to fruits which may have been cooked by boiling and are then frozen. In the instant case the flow chart provided by the applicant, though shows boiling of the fruit, does not indicate the freezing of the fruit consequent to processing. Therefore, we are of the opinion that the product as presented by the applican

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h boiling, water (which softens the material and facilitates penetration of sugar) and then by repeated heating to boiling point and storage in syrups of progressively increasing sugar concentration until they are sufficiently impregnated with sugar to ensure their preservation. The principal products preserved by sugar are whole fruit or nuts (cherries, apricots, pears, plums, chestnuts (marrons glaces), walnuts etc.), sections or pieces of fruit (oranges, lemons, pineapples, etc.), fruit-peel (citron, lemon, orangey melon etc.), other parts of plants (angelica, ginger, yams, sweet potatoes, etc.) and flowers (violets, mimosa, etc.) Drained products are prepared by using a syrup (e.g. a mixture of invert sugar or glucose with a proportion of sucrose) which does not crystallize on exposure to the air. After impregnation the excess syrup is drained off leaving the product sticky to the touch. Glace products are obtained by dipping the drained product in a sucrose syrup which dries as a

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Goods and Services Tax – GST – By: – Sandeep Rawat – Dated:- 16-11-2018 – With the implementation of Goods and Services Tax (GST) in India from July 1, 2017, there has been a paradigm shift in indirect taxation structure in India from origin-based tax to destination based tax. The professional have an opportunity as well as responsibility to assist the assessees in filing the statutory Form 9 and also in conducting the GST Audit. In this regard I have prepared the comparison of the GSTR 9 and GSTR 9C for the better and quick understanding. Comparative view of Form GSTR-9 and GSTR 9C Return in GSTR 9 Statement in GSTR 9C 1 GSTR 9 GSTR 9C 2 form prescribed in terms of section 44 CGST Act read with Rule 80 form prescribed in terms of Section

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d to be filed by viz., Casual Taxable Person, Non-Resident Taxable Person, Input Service Distributor, Unique Identification Number Holders, Online Information and Database Access Retrieval Service, Composition Dealers, persons required to deduct taxes under Section 51 and persons required to collect taxes under Section 52. Not required to be filed by viz., Casual Taxable Person, Non-Resident Taxable Person, Input Service Distributor, Unique Identification Number Holders, Online Information and Database Access Retrieval Service, registered person whose aggregate turnover in a financial year not exceeds ₹ 2 Crores.,Composition Dealers, persons required to deduct taxes under Section 51 and persons required to collect taxes under Section

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ember 2018. 15 This return can only be filed once for a financial year. There is no option to revise this return. 16 Late fees for not filing the return within the due date is ₹ 100 per day per act up to a maximum of an amount calculated at a quarter percent of the taxpayer turnover in the state or union territory. Thus it is ₹ 100 under CGST & 100 under SGST; the total penalty is ₹ 200 per day of default. There is no late fee on IGST. However, this fee cannot be more than 0.25% of total turnover in the respective state/union territory There is no specific penalty prescribed in the GST Law for not getting the accounts audited by a Chartered Accountant or a Cost Accountant. Therefore, in terms of Section 125 of CGST Act

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