Author: admin_gst

Amendment of GSTN in Credit note & Debit note
Query (Issue) Started By: – Bibhuti Dash Dated:- 29-10-2018 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
Got 7 Replies
GST
Dear Experts,
Please guide me on how to do amendment in credit notes for wrong GST no. Currently we can amend Credit notes, but the amending GSTN in credit notes is freezed.
Thanks in advance !
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
You may contact the portal for remedy.
Reply By KASTURI SETHI:
The Reply:
Grievances Redressal Cell/ Help Desk may unfreeze to resolve your problem. In one of my client's case GSTR 3 B return (Filed) was opened by the system and I refiled the return but in this case there was snag in common portal syste

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GST rate on marble statues
Query (Issue) Started By: – rajeshh rawat Dated:- 29-10-2018 Last Reply Date:- 20-6-2019 Goods and Services Tax – GST
Got 6 Replies
GST
kindly confirm GST rate on marble statues with natification
Reply By KASTURI SETHI:
The Reply:
In my view, marble statuette is covered under Chapter/Heading/Sub-heading 2515 20 90 attracting GST 5% (CGST 2.5% and SG​​​​​​IST 2.5%.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Kasthuri sir correctly told.
Reply By Alkesh Jani:
The Reply:
Dear Experts,
Can we classify the marble statues under 44,68, 83 Sl.No. 92A of Notification No.1/2017 with corresponding rate of 6% Plus 6% (CGST Plus SGST)?
Thanks in Advance.
Reply By KAS

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umn No. 2 of Chapter heading 2515 12 states that “Merely cut, by sawing or otherwise, into blocks or slabs of rectangular (including square) shape”. Therefore, statue cannot fall within the ambit of blocks or slabs.
Moreover, statuettes is mentioned at Chapter 44, 68 or 83. Now, as Ch. 44 stands for woods, hence not applicable in the instant case, Sl.No.177E clearly states “other than statues” for Chapter 6802 and Chapter 8306 is with regards to base metals, hence not applicable in the instant case.
For GST purpose, based on the above, I am of the view that the marble statues can be classified at Sl.No. 453 “Any Chapter” Goods which are not specified in Schedule I, II, IV, V or VI and hence attracts 18% GST.
Here, it is pertinent to note

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Goods and Services Tax Council – Journey so far;
GST
Dated:- 29-10-2018

Goods and Services Tax Council – Journey so far;
GST Council met 30 times, took 918 decisions since its Constitution;
96% of decisions already been implemented through 294 Notifications
Till date, the Goods and Services Tax (GST) Council has taken 918 decisions related to GST laws, rules, rates, compensation and taxation threshold etc. More than 96% of the decisions have already been implemented through 294 Notifications issued by the Central Government and the remaining are under various stages of implementation. Almost equal number of corresponding SGST Notifications have been issued by each State.
The GST Council Members under the Chairpersonship

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Provisional Attachments Suspended in Bogus Billing Case; Conditions Must Be Met for Release of Assets and Accounts.
Case-Laws
GST
Large scale of bogus billing activities – Validity of provisional orders of attachment – By freezing the petitioner's bank accounts and attaching the properties, the petitioner is temporarily rendered penalized – Provisional attachments suspended subject to fulfillment of certain conditions
TMI Updates – Highlights, quick notes, marquee, annotation, news,

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GSTR 1 amendment
Query (Issue) Started By: – Puttaraj T Dated:- 29-10-2018 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
Got 4 Replies
GST
We have filed November-2017 GSTR1 return but clerical error the B2B invoice we have shown in the B2C, now we want to change it for B2B.
GSTR1 for the month of September-2018 is filed, when I try to add B2C amendment in October-2018 it's not showing FY.2017-18.
Kindly suggest me to make amendment
Reply By SHIVKUMAR SHARMA:
The Reply

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Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs Versus M/s Amway India Enterprises Private Limited,
GST
2018 (10) TMI 1614 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2018 (19) G. S. T. L. 509 (N. A. P. A.)
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 29-10-2018
12/2018
GST
SH. B.N. SHARMA, CHAIRMAN, SH. J. C. CHAUHAN, TECHNICAL MEMBER, SMT. R. BHAGYADEVI, TECHNICAL MEMBER, SH. AMAND SHAH, TECHNICAL MEMBER
Present:-
None for the Applicant No. 1.
Sh. Anwar Ali, Additional Commissioner for the Applicant No. 2.
Sh. K. V. Hariharan, CFO, Sh. Abraham Ninan, Sr. Manager (Taxation) and Sh. Sudhir Mishra, Assistant Manager (Taxation) for the Respondent.
ORDER
1. This report dated 30.07.2

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ated 09.05.2018, 21.05.2018 and 09.07.2018, the Applicant No. 1 at the available Email Id, was requested to provide the name and address of the supplier against whom the complaint was made, and to provide the pre-GST and post-GST amount charged by the supplier and the invoices evidencing the same, however no reply was received from the Applicant No. 1. He has also stated that the above Applicant was also contacted on the phone number available in his application and he had provided a new email id, on which he was again requested to send the details however, no reply was received from him. The Applicant No. 2 has further stated that the Respondent was a direct selling Company with more than 5,50,000 ABOs and was selling about 140 products co

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, the Applicant No. 1 did not appear. The Applicant No. 2 was represented by Sh. Anwar Ali, Additional Commissioner and the Respondent was represented by Sh. K. V. Hariharan, CFO, Sh. Abraham Ninan, Sr. Manager (Taxation) and Sh. Sudhir Mishra, Assistant Manager (Taxation).
4. The Respondent vide his written submission dated 26.09.2018 has inter-alia stated that the Applicant No. 2 in his report dated 30.07.2018 had not recommended initiation of proceedings against him under section 171 of the CGST Act, 2017 as there was no specific evidence of profiteering against him. Amongst other things, he has also stated that the above Applicant had also recommended that no meaningful investigation could be conducted against him. He has further state

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Sh. Raman Khaira, Director General Anti-Profiteering, Central Board of Indirect Taxes & Customs Versus M/s. Yum Restaurants India Pvt. Ltd.,
GST
2018 (10) TMI 1615 – NATIONAL ANTI-PROFITEERING AUTHORITY – 2018 (19) G. S. T. L. 90 (N. A. P. A.)
NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 29-10-2018
11/2018
GST
SH. B.N. SHARMA, CHAIRMAN SH. J. C. CHAUHAN, TECHNICAL MEMBER SMT. R. BHAGYADEVI, TECHNICAL MEMBER SH. AMAND SHAH, TECHNICAL MEMBER
None for the Applicant No. 1.
Sh. Manoranjan Singh, Assistant Commissioner for the Applicant No. 2.
Sh. Dharmender Gupta, Director (Tax) for the Respondent No. 1
None for the Respondents No. 2 & 3.
ORDER
1. This report dated 30.07.2018 has been received from the Applicant No. 2, i.e. Director General of Safeguards (DGSG), now re-designated as Director General Anti-Profiteering (DGAP), under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017. The brief facts of the present case are that the Applicant

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concerned outlet being run by the above Respondent regarding which the allegation of profiteering had been made so that the matter could be investigated, however, no reply was received from him. He has also stated that on preliminary enquiry from the internet, it was gathered that there were more than 700 outlets in India of the “KFC” brand which was a subsidiary of US based “M/S Yum! Brand Inc.”. The Applicant No. 1 has further stated that the above Brand was operating around 300 stores in northern India through M/s. Devyani International Limited, Gurugram, another 300 stores through M/s. Sapphire Foods, Mumbai, in south India and around 100 stores were being directly operated by the Respondent No. 1. The above Applicant has also submitted that in the absence of any specific evidence of profiteering against a specific supplier of M/s. KFC, he was not in a position to initiate any investigation in the matter. He had further submitted that it was also not practical to initiate investig

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GST Act, 2017 as there was no specific evidence of profiteering against him. He has also stated that the above Applicant had also recommended that no meaningful investigation could be conducted against him. He has further stated that in view of the report submitted by the Applicant No. 1, the allegation of profiteering had not been proved against him and therefore the present proceeding should be dropped.
5. We have carefully considered the Report filed by the Applicant No. 2 as well as the submissions made by the Respondent No. 1 and it is obvious from the narration of the facts stated above that the investigation conducted in the matter by the Applicant No. 2 against the Respondent No. 1 could not establish profiteering for want of credible evidence and hence no violation of the provisions of Section 171 of the CGST Act 2017 could be established. Accordingly, the application filed by the Applicant seeking action against the Respondents on account of alleged violation of the provisio

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M/s Bajrang Enterprises Versus Union Of India And 3 Others
GST
2018 (10) TMI 1621 – ALLAHABAD HIGH COURT – 2018 (19) G. S. T. L. 625 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 29-10-2018
WRIT TAX No. – 1397 of 2018
GST
Pankaj Mithal And Ashok Kumar JJ.
For the Petitioner : Aloke Kumar
For the Respondent : C.S.C.,A.S.G.I.
ORDER
U.P. GST on the value of the goods for the purposes of release of the goods.
The submission of Sri Aloke Kumar, learned counsel for the petitioner is that on the aforesaid item GST @ 5% is chargeable and therefore the tax incidence comes to Rs. 28,000/- only. He further submits that E-way bill could not be down loaded but it was subsequently produced after down loading it on 24.10.2018 which i

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M/s Singhal Iron Store Versus State Of U.P. And 2 Others
GST
2018 (10) TMI 1622 – ALLAHABAD HIGH COURT – 2018 (19) G. S. T. L. J76 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 29-10-2018
WRIT TAX No. – 1398 of 2018
GST
Pankaj Mithal And Ashok Kumar JJ.
For the Petitioner : Shubham Agrawal
For the Respondent : C.S.C.
ORDER
Heard Sri Shubham Agrawal, learned counsel for the petitioner.
The order of seizure passed under Section 67(2) of the U.P. Goods and Services Tax Act, 2017 (hereinafter referred to as the Act) has been challenged by the petitioner and the submission is that it is not an order passed by the Adjudicating Officer and therefore, no appeal as provided under Section 107 of the Act lies against it and that

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Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributor.
26/2018-GST Dated:- 29-10-2018 Assam SGST
GST – States
GOVERNMENT OF ASSAM
OFFICE OF THE COMMISSIONER OF TAXES, ASSAM KAR BHAWAN
DISPUR, GUWAHATI-6
CIRCULAR NO. 26/2018-GST
Dated Dispur the 29th October, 2018.
Subject : Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributor – Reg.
No. CT/GST-15/2017/197.- Representations have been received seeking clarification on certain issues under the GST laws. The same have been examined and the clarifications on the same are as below:
Sl.N

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igible ITC which might be available to such taxable person.
2.
As per section 27 of the Assam Goods and Services Tax Act, 2017 (hereinafter referred to as the “said Act”), period of operation by causal taxable person is ninety days with provision for extension of same by the proper officer for a further period not exceeding ninety days. Various representations have been received for further extension of the said period beyond the period of 180 days, as mandated in law
1. It is clarified that in case of long running exhibitions (for a period more than 180 days), the taxable person cannot be treated as a CTP and thus such person would be required to obtain registration as a normal taxable person.
2. While applying for normal registration

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tained in section 20 of the Assam GST Act resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest and penalty, if any.
2. The recipient unit(s) who has received excess credit from ISD may deposit the said excess amount voluntarily along with interest, if any, by using FORM GST DRC-03.
3. If the said recipient unit(s) does not come forward voluntarily, necessary proceedings may be initiated against the said unit(s) under the provisions of section 73 or 74 of the Assam GST Act as the case may be. FORM GST DRC-07 can be used by the tax authorities in such cases.
4. It is further clarified that the ISD would also be liable to

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Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16
25/2018-GST Dated:- 29-10-2018 Assam SGST
GST – States
GOVERNMENT OF ASSAM
OFFICE OF THE COMMISSIONER OF TAXES, ASSAM KAR BHAWAN
DISPUR, GUWAHAT1-6
CIRCULAR NO. 25/2018-GST
Dated Dispur the 29th October, 2018.
Subject : Reg.
No. CT/GST-15/2017/196. – Various representations have been received seeking clarifications on various issues in relation to processing of the applications for cancellation of registration filed by taxpayers in FORM GST REG-16. In order to clarify these issues and to ensure uniformity in the implementation of the provisions of law across the field formations, the Commissioner, in exercise of its powers conferred by section 168 of the Assam Goods and Services Tax Act, 2017 (hereinafter referred to as the “Assam GST Act”), hereby clarifies the issues as detailed hereunder:
2. Section 29 of the Assam GST Act, read with rule 20 of the Assam Goods and Services Tax R

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ness may be transferred/disposed over a period of time in a piece meal fashion. In such cases, the 30-day deadline may be liberally interpreted and the taxpayers' application for cancellation of registration may not be rejected because of the possible violation of the deadline.
4. While initiating the application for cancellation of registration in FORM GST REG-16, the Common portal captures the following information which has to be mandatorily filled in by the applicant:
a. Address for future correspondence with mobile number and email address;
b. Reason for cancellation;
c. Date from which cancellation is sought;
d. Details of the value and the input tax/tax payable on the stock of inputs, inputs contained in semi-finished goods, inputs contained in finished goods, stock of capital goods/plant and machinery;
e. In case of transfer, merger of business, etc., particulars of registration of the entity in which the existing unit has been merged, amalgamated, or transferred (includi

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In all cases other than those listed at (a) and (b) above, the application for cancellation of registration should be immediately accepted by the proper officer and the order for cancellation should be issued in FORM GST REG-19 with the effective date of cancellation being the same as the date from which the applicant has sought cancellation in FORM GST REG-16. In any case the effective date cannot be a date earlier to the date of application for the same.
6. In situations referred to in (a) or (b) in para 5 above, the proper officer shall inform the applicant in writing about the nature of the discrepancy and give a time period of seven working days to the taxpayer, from the date of receipt of the said letter, to reply. If no reply is received within the specified period of seven working days, the proper officer may reject the application on the system, after giving the applicant an opportunity to be heard, recording reasons for rejection in the dialog box that opens once the 'Reject

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later. The purpose of the final return is to ensure that the taxpayer discharges any liability that he/she may have incurred under sub-section (5) of the section 29 of the Assam GST Act. It may be noted that the last date for furnishing of FORM GSTR-10 by those taxpayers whose registration has been cancelled on or before 30.09.2018 has been extended till 31.12.2018.
8. Further, sub-section (5) of section 29 of the Assam GST Act, read with rule 20 of the Assam GST Rules states that the taxpayer seeking cancellation of registration shall have to pay, by way of debiting either the electronic credit or cash ledger, the input tax contained in the stock of inputs, semi-finished goods, finished goods and capital goods or the output tax payable on such goods, whichever is higher. For the purpose of this calculation, the stock of inputs, semi-finished goods, finished goods and capital goods shall be taken as on the day immediately preceding the date with effect from which the cancellation has

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t available, then the difference shall be paid by him/her in cash. It is reiterated that, as stated in sub-section (3) of section 29 of the Assam GST Act, the cancellation of registration does not, in any way, affect the liability of the taxpayer to pay any dues under the GST law, irrespective of whether such dues have been determined before or after the date of cancellation.
9. In case the final return in FORM GSTR-10 is not filed within the stipulated date, then notice in FORM GSTR-3A has to be issued to the taxpayer. If the taxpayer still fails to file the final return within 15 days of the receipt of notice in FORM GSTR-3A, then an assessment order in FORM GST ASMT-13 under section 62 of the Assam GST Act read with rule 100 of the Assam GST Rules shall have to be issued to determine the liability of the taxpayer under subsection (5) of section 29 on the basis of information available with the proper officer. If the taxpayer files the final return within 30 days of the date of serv

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d amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation. Although the provisions of Assam GST (Amendment) Act, 2018 have not yet been brought into force, it will be prudent for the field formations not to issue notices for non-filing of return for taxpayers who have already filed an application for cancellation of registration under section 29 of the Assam GST Act. However, the requirement of filing a final return, as under section 45 of the Assam GST Act, remains unchanged.
12. It may be noted that the information in table in FORM GST REG-19 shall be taken from the liability ledger and the difference between the amounts in Table 10 and Table 11 of FORM GST REG-16.
13. This Circular is clarificatory in nature and not meant for any interpretation of provisions of the Act and rules.
14. Difficulties, if any, in implementation of the above instructions may be b

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Creation of GST Helpdesks for MSME sector by CBIC coinciding with the event of Hon'ble Prime Minister on 2nd November, 2018 to support MSMEs- convened by Department of Financial Services – reg.
F. No. 349/94/2017-GST(Pt) Dated:- 29-10-2018 Clarifications / Instructions / Orders
GST
F. No. 349/94/2017-GST(Pt)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
GST Policy Wing
Room 159-A,
North Block, New Delhi
Dated 29th October, 2018
To,
Principal Chief Commissioners/Chief Commissioners of Central Tax (All)
Madam/ Sir,
Subject: Creation of GST Helpdesks for MSME sector by CBIC coinciding with the event of Hon'ble Prime Minister on 2nd November, 2018 to support MSMEs- convened by Department of Financial Services – reg.
Government of India is launching a program on 02nd November, 2018 at Vigyan Bhawan to support MSMEs and to reach out to them wherein Department of Financial Services will be the nodal agency t

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districts for the said period.
3.  Accordingly, it is requested that nodal officers for these 80 districts may be appointed and the details may be sent to asim.anand@gov.in with a copy to ravneet.khurana@nic.in by tomorrow 1 PM positively, in order to place the same on the CBIC's website. This list would be shared with the nodal officer in DoPT which would hand over the details to Prabhari Officers. These nodal officers should be directed to coordinate with the respective Prabhari Officers in addressing any GST related issues of the MSMEs in their district. It is also requested that the following activities may be carried out by the CBIC field formations in coordination with the Prabhari Officers in relevant districts:
a.  GST Help-desk for MSME sector with special emphasis on helping them in GST Registration/ Return filing and refund claims;
b.  Publicity of activities/awareness campaigns carried out by CBIC in relation to GST;
c.  Publicity of the CBIC GS

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November, 2018 to the undersigned at asim.anand@gov.in with a copy to ravneet.khurana@nic.in.
7.  This issues with the approval of Finance Secretary.
Yours faithfully,
(Upender Gupta)
Commissioner (GST)
Enclosed: (as above) 
 
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Document 1
1
Chittoor
2
Guntur
3
Narsapur
List of Districts
Andhra Pradesh
Textiles
Powerloom
Handicrafts
4
Visakhapatnam
Food Processing
5
East Godavari
Food Processing
Arunachal Pradesh
6
Papumpare
Handloom
Assam
7
Kamrup (Rural)
Handloom
8
Barpeta
Bamboo
9
South Cachar
Bamboo
Bihar
10
Madhubani
Handicrafts
11
Gaya
Handloom
12
Patna
Electronics (LED)
Delhi
13
Okhla
Electrical equip.
Goa
14
North Goa
Food Processing
Gujarat
15
Ahmedabad
Plastics
16
Kutchh
Handicrafts
17
Rajkot
18
Somnath
19
Bharuch
20
Valsad
Foundry
Food Processing
Chemicals
Chemicals
21
Surendra Nagar
Sanitaryware
Haryana
22
Panipat
Handloom
23
Faridabad
Auto Comp.
24
Manesar
Aut

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Large Cardamom
Powerloom
Electrical & Agri equip.
Handicrafts
Apparel
57
West Sikkim
Tamil Nadu
58
Erode
59
Coimbatore
60
Tanjore
61
Tirupur
62
Thiruvallur
Plastics
63
Vellore
Leather
Tripura
64
Sonamura
Agarbatti sticks
65
West Tripura
Bamboo
Uttar Pradesh
66
Varanasi
Handicrafts
67
Agra
Leather
68
Bhadohi
69
Kanpur
70
Meerut
71
Moradabad
72 Saharanpur
73
Firozabad
74
Unnao
Uttarakhand
75
Nainital
76
Haridwar
77
Udham Singh Nagar
(Pantnagar)
West Bengal
78
Murshidabad
Handloom
79
Nadia
Handloom
80
Bankura
Handicrafts
Handicrafts
Leather
Sports Goods
Handicrafts
Wood Work
Glasswork
Handicrafts
Food Processing
Electrical equip.
Auto Comp.
LIST OF PRBHARI OFFICERS
(with OM No. No. 7/3/2017-EO(SM-I) (P-1) dated 26.10.2018)
Sectors
Districts
Prabbar Officer (Sh./Ms.)
Remarks Related
Aspirational District
ANNEXURE
2
Chittoor
Textiles
1 Visakhapatnam Food Processing
Shiv Das Meena, AS, MOHUA
Shashidhar

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15
Patna
Electronics (LED) Praveen K Srivastava, AS, MHA
AD-Muzzafarpur Bihar
16
Bharuch
Chemicals
Rameshwar Prasad Gupta,AS, NITI
AD-Narmada Gujarat
17
Manesar
Autoparts
Rajni Sekhri Sibal AS MHA
AD-Mewat
Haryana
18
Jamshedpur
Auto Comp.
Alka Tiwari, AS, Do Fertilizers
AD-Ranchi
Jharkhand
19
Bhaglkot
Handloom
Ritvik Ranjanam Pandey,
DoRevenue
AD-Raichur
Karnataka
20
20
Dhule
Food Processing
Rajesh Aggarwal JS MOTA
AD-Nandurbar
Maharashtra
East Khasi
Organic/Floricultur
121
Jitendra Kumar Sinha, JS DONER
AD-Ribhoi
Meghalaya
Hills
e
22
22
Cuttack
Gems & Jewellery Jatindra Nath Swain MD SECI
AD-Dhenkenal Odisha
Suresh Kumar Vasishth, JS Food and
23
Bargarh
Handloom
AD-Balangir
Odisha
PD
1
(with OM No. No. 7/3/2017-EO(SM-I)(P-1) dated 26.10.2018)
ANNEXURE
24
Ludhiana
Apparel, Electrical
equip.
Anurag Agarwal, JS, DEA
AD-Moga
Punjab
25
West Tripura
Bamboo
K Rajeshwar Rao, AS, M/o Mines
AD-Dhalai
Tripura
26
Varanasi

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ra, AS MCA
Punjab
41
Kapurthala
42
Meerut
G. Engineering
Spots Goods
Anjali Bhawara, AS MCA
Punjab
Juthika Patankar, AS MOSD&E
Uttar Pradesh
43
Saharanpur
Wood Work
Juthika Patankar, AS MOSD&E
Uttar Pradesh
44
Erode
Powerloom
Srinivas Bandla, JS, MSME
Tamil Nadu
45
Tirupur
Apparel
Srinivas Bandla, JS, MSME
Tamil Nadu
46 Guntur Powerloom Lav Agarwal, JS DOHFW Andhra
2
(with OM No. No. 7/3/2017-EO(SM-I)(P-1) dated 26.10.2018)
ANNEXURE
47
Narsapur
Handicrafts
Sanjay Jaju, JS D/o Defence
Production
Andhra
48
East Godavari Food Processing
Sanjay Jaju, JS D/o Defence
Production
Andhra
49
Papumpare
Handloom
Amit Yadav, JS, DOT
Arunachal
50
North Goa
Food Processing
Arun Baroka, JS MODWS
Goa
51
Ahmedabad
Plastics
Raj Kumar, DG, ESIC, MOLE
Gujarat
Srinivas Ramaswamy Katikithala,
52
52
Kutchh
Handicrafts
Gujarat
AS DOPT
53
Rajkot
Foundry
Niranjan Kumar, JS M/o Mines
Gujarat
Om Prakash Chaudhary, JS,
54
Valsad
Chemicals
Guja

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Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributor.
09/2018-19 Dated:- 29-10-2018 Karnataka SGST
GST – States
Government of Karnataka
(Department of Commercial Taxes)
No. KSA/GST/CR-108/2017-18
Office of the Commissioner of Commercial Taxes
Vanijya Terige Karyalaya, Gandhinagar,
Bengaluru-560009, Dated: 29-10-2018
COMMISSIONER OF COMMERCIAL TAXES CIRCULAR No. (GST) 09/2018-19
Subiect: Clarifications of issues under GST related to casual taxable person and recovery of excess Input Tax Credit distributed by an Input Service distributor – Reg.
Representations have been received seeking clarification on certain issues under the

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ed to deposit while obtaining registration should be calculated after considering the due eligible ITC which might be available to such taxable person.
2.
As per section 27 of the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the 'KGST Act'), period of operation by causal taxable person is ninety days with provision for extension of same by the proper officer for a further period not exceeding ninety days. Various representations have been received for further extension of the said period beyond the period of 180 days, as mandated in law.
1. It is clarified that in case of long running exhibitions (for a period more than 180 days), the taxable person cannot be treated as a CTP and thus such person would be requir

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he KGST Act where the ISD distributes the credit in contravention of the provisions contained in section 20 of the KGST Act resulting in excess distribution of credit to one or more recipients of credit, the excess credit so distributed shall be recovered from such recipients along with interest and penalty if any.
2. The recipient unit(s) who have received excess credit from ISD may deposit the said excess amount voluntarily along with interest if any by using FORM GST DRC-03.
3. If the said recipient unit(s) does not come forward voluntarily, necessary proceedings may be initiated against the said unit(s) under the provisions of section 73 or 74 of the KGST Act as the case may be. FORM GST DRC-07 can be used by the tax authorities in su

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Circular on Standard Operating Procedure for Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16.
07/2018-19 Dated:- 29-10-2018 Karnataka SGST
GST – States
Government of Karnataka
(Department of Commercial Taxes)
No. KSA/GST/CR-108/2017-18
Office of the Commissioner of Commercial Taxes
Vanijya Terige Karyalaya, Gandhinagar,
Bengaluru-560009, Dated: 29-10-2018
COMMISSIONER OF COMMERCIAL TAXES CIRCULAR No. (GST) 07/2018-19
This office is in receipt of representations seeking clarifications on various issues in relation to processing of the applications for cancellation of registration filed by taxpayers in FORM GST REG-16. In order to ensure uniformity in the implementation of the provisions of law across the field formations, in exercise of the powers conferred by section 168 (1) of the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the “KGST Act”), the issues are hereby clarified as detailed hereunder:
2. Sec

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y identify or pinpoint the day on which such an event occurs. For instance, a business may be transferred/disposed over a period of time in a piece meal fashion. In such cases, the 30-day deadline may be liberally interpreted and the taxpayers' application for cancellation of registration may not be rejected because of the possible violation of the deadline.
4. While initiating the application for cancellation of registration in FORM GST REG16, the Common portal captures the following information which has to be mandatorily filled in by the applicant:
a) Address for future correspondence with mobile number and email address;
b) Reason for cancellation;
c) Date from which cancellation is sought;
d) Details of the value and the input tax/tax payable on the stock of inputs, inputs contained in semi-finished goods, inputs contained in finished goods, stock of capital goods/plant and machinery;
e) In case of transfer, merger of business, etc., particulars of registration of the en

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ed with the tax authority before submission of the application for cancellation.
In all cases other than those listed at (a) and (b) above, the application for cancellation of registration should be immediately accepted by the proper officer and the order for cancellation should be issued in FORM GST REG-19 with the effective date of cancellation being the same as the date from which the applicant has sought cancellation in FORM GST REG-16. In any case the effective date cannot be a date earlier to the date of application for the same.
6. In situations referred to in (a) or (b) in para 5 above, the proper officer shall inform the applicant in writing about the nature of the discrepancy and give a time period of seven working days to the taxpayer, from the date of receipt of the said letter, to reply. If no reply is received within the specified period of seven working days, the proper officer may reject the application on the system, after giving the applicant an opportunity to be he

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e months of the effective date of cancellation or the date of order of cancellation, whichever is later. The purpose of the final return is to ensure that the taxpayer discharges any liability that he/she may have incurred under sub-section (5) of the section 29 of the KGS T Act. It may be noted that the last date for furnishing of FORM GSTR-10 by those taxpayers whose registration has been cancelled on or before 30.09.2018 has been extended till 31.12.2018 vide notification (23/2018) No. FD 47 CSL 2017 dated the 26th October, 2018.
8. Further, sub-section (5) of section 29 of the KGST Act, read with rule 20 of the KGST Rules states that the taxpayer seeking cancellation of registration shall have to pay, by way of debiting either the electronic credit or cash ledger, the input tax contained in the stock of inputs, semi-finished goods, finished goods and capital goods or the output tax payable on such goods, whichever is higher. For the purpose of this calculation, the stock of inputs

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the output tax liability of the taxpayer, as determined under sub-section (5) of section 29 of the KGST Act, was greater than the amount of input tax credit available, then the difference shall be paid by him/her in cash. It is reiterated that, as stated in sub-section (3) of section 29 of the KGST Act, the cancellation of registration does not, in any way, affect the liability of the taxpayer to pay any dues under the GST law, irrespective of whether such dues have been determined before or after the date of cancellation.
9. In case the final return in FORM GSTR-10 is not filed within the stipulated date, then notice in FORM GSTR-3A has to be issued to the taxpayer. If the taxpayer still fails to file the final return within 15 days of the receipt of notice in FORM GSTR-3A, then an assessment order in FORM GST ASMT-13 under section 62 of the KGST Act read with rule 100 of the KGST Rules shall have to be issued to determine the liability of the taxpayer under sub-section (5) of sectio

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KGST Act has been amended by the KGST (Amendment) Ordinance, 2018 to provide for “Suspension” of registration. The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation. Although the provisions of KGST (Amendment) Ordinance, 2018 have not yet been brought into force, it will be prudent for the field formations not to issue notices for non-filing of return for taxpayers who have already filed an application for cancellation of registration under section 29 of the KGST Act. However, the requirement of filing a final return, as under section 45 of the KGST Act, remains unchanged.
12. It may be noted that the information in table in FORM GST REG-19 shall be taken from the liability ledger and the difference between the amounts in Table 10 and Table 11 of FORM GST REG-16.
13. It is informed to all concerned that the above instructions shall be f

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M/s. Euro Pratik LE Versus Union of India & Ors.
GST
2018 (11) TMI 55 – BOMBAY HIGH COURT – TMI
BOMBAY HIGH COURT – HC
Dated:- 29-10-2018
WRIT PETITION NO. 3101 OF 2018
GST
M.S. SANKLECHA & RIYAZ I. CHAGLA, J.J.
Mr. Shreyash Shah a/w Ms. Rukshin Ghiara I/b Rukshin Ghiara for the petitioners
Mr. Pradeep S. Jetly a/w Mr. J.B. Mishra for the respondents
P.C.
1. Mr. Shah, learned Counsel appearing in support of the petition, on instructions, seeks to withdraw this petition.

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Imarti Lakdi Vyapari Sansthan Jodhpur Versus The State Of Rajasthan
GST
2018 (11) TMI 212 – RAJASTHAN HIGH COURT – [2019] 60 G S.T.R. 1 (Raj), 2019 (20) G. S. T. L. 212 (Raj.)
RAJASTHAN HIGH COURT – HC
Dated:- 29-10-2018
D. B. Civil Writ Petition No. 1451/2018
GST
MR. SANGEET LODHA AND MR. DINESH MEHTA JJ.
For Petitioner(s) : Mr. H. R. Soni.
For Respondent(s) : –
Judgment
1. The petitioner, a Society registered under the provisions of Society Registration Act, 1958 (hereinafter referred to as 'Petitioner Society') has preferred the present writ petition, seeking a declaration to the effect that respondent-State has no power to charge tax/cess payable under the provisions of Rajasthan Agriculture Produce Marketing Act, 1961 (hereinafter referred to as the 'Act of 1961') from its members.
2. Mr. Soni informing that the members of petitioner society are engaged in purchase and sale of timber (Imarti Lakadi), asserted that they are having their shops and godowns

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dent-Agriculture Market Committee, such levy and recovery of Mandi cess from the members of the petitioner society is arbitrary and violative of Article 14 of the Constitution of India on the one hand and is a fetter on their right to carry on trade and business, which stand guaranteed by Article 19 (1) (g) of the Constitution of India.
5. We have heard learned counsel for the petitioner and perused the material available on record.
6. At the outset, we may observe that the entire edifice of the petitioner's case is based on the assumption that the impugned levy under the Act of 1961 is a 'Cess'; such foundation is clearly contrary to the very provisions of the Statute and law on the subject.
7. Levy under Section 17 of the Act of 1961 is a 'fee'.
8. It is a settled proposition of law that the State can levy market fee under the relevant provisions of a statute, enacted in exercise of powers available to it under Entry 66 of the second list of the VIIth Schedule. It has also been s

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a market committee constituted under Sub-section (1) of Section 4 of the Act does not end with establishing such number of markets in the notified market area under the first part of Sub-section (3) but also extends to the providing of such facilities in the market as the Government may from time to time by general or special order specify under the second part of Sub-section (3). In exercise of their powers under Section 33 of the Act, the State Government have framed the Andhra Pradesh (Agricultural Produce & Livestock) Markets Rules, 1969. Chapter V relates to 'Regulation of trading'. It would appear that Rules 48 to 53 are the machinery provisions for controlling the trade in notified agricultural produce, livestock and products of livestock in a notified area while Rules 54 to 73 impose restrictions on the carrying on of all such trade in such area. It is clear from the provisions of Section 15 of the Act that the services to be rendered by the market committee and facilit

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market area outside the market in that area.” Another unfounded assumption of the learned Counsel was that the activities of the market committee and the facilities provided by it were confined by Act to the market area only. The establishment, maintenance and improvement of the market is one of the purposes for which the market committee fund might be expanded under Section 15 of the Act. The other services such as the provision and maintenance of standard weights and measures, the collection and dissemination of information regarding all matters relating to crop statistics and marketing in respect of notified agricultural produce, livestock and products of livestock, schemes for the extension or cultural improvement of notified agricultural produce including the grant of financial aid to schemes for such extension or improvement within such area undertaken by other bodies or individuals, propaganda for the improvement of agricultural produce, livestock and products of livestock and

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oresaid view is fully fortified by the judgment of Division Bench of this Court in the case of M/s Vishwakarma Timber Mart vs. State of Rajasthan, reported in 1984 WLN 402, which reads as :-
“Under the definition of “agricultural produce” it cannot be said that the 'timber' is wholly unconnected with the agriculatural produce and, therefore, no ground is made out for striking down this item. In any case the timber (imarti lakadi) is a notified item in the Schedule and comes within the legislative competence and is covered by the words “or otherwise” in the Schedule, as defined in the definition of “agricultural produce”.
11. Moving on to the last point of the petitioner that after promulgation of Goods and Service Tax, the levy of cess under the Act of 1961 cannot continue; we are constrained to observe that even this argument is misconceived.
12. The constitution (One Hundred and First Amendment) Act, 2016 was enacted by the Parliament with the intent to consolidate number of indir

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Submission of final return in FORM GSTR-10 till 31.12.2018 for the taxpayers whose registration has been cancelled on or before the 30th September, 2018 by the Proper Officer.
34061-FIN-CT1-TAX-0043/2017-S.R.O. No. 430/2018 Dated:- 29-10-2018 Orissa SGST
GST – States
Orissa SGST
Orissa SGST
GOVERNMENT OF ODISHA
FINANCE DEPARTMENT
NOTIFICATION
The 29th October, 2018
S.R.O.- In exercise of the powers conferred by section 148 of the Odisha Goods and Services Tax Act, 2017 (Odisha

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The Mizoram Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018).
H.12018/243/2017-LJD Dated:- 29-10-2018 Mizoram SGST
GST – States
Mizoram SGST
Mizoram SGST
NOTIFICATION
No. H.12018/243/2017-LJD, the 29th October, 2018.
The following Ordinance is hereby published for general information.
The Mizoram Goods and Services Tax (Amendment) Ordinance, 2018
(Ordinance No. 3 of 2018)
Promulgated by the Governor of Mizoram on the Sixty Ninth year of the Republic of India
An Ordinance
to amend the Mizoram Goods and Services Tax Act, 2017.
WHEREAS the Mizoram Goods and Services Tax Act, 2017 came into force on 1st July 2017 respectively;
AND WHEREAS the Mizoram Goods and Services Tax Act, 2017 subsumes all existing Indirect Taxation Laws being in place in the State of Mizoram so as to impose goods and services tax (GST) on all goods and services except alcohol for human consumption and five petroleum products (viz. petroleum crude, high speed diesel

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ed by clause (1) of Article 213 of the Constitution of India, the Governor of Mizoram is pleased to promulgate the following Ordinance, namely:-
1. Short title and commencement (1) This Ordinance may be called the Mizoram Goods and Services Tax (Amendment) Ordinance, 2018.
(2) Save as otherwise provided, the provisions of this Ordinance shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Ordinance and any reference in any such provision to the commencement of this Ordinance shall be construed as a reference to the coming into force of that provision.
2. Amendment of section 2: – In section 2 of the Mizoram Goods and Services Tax Act, 2017 (hereinafter referred to as the Principal Act),
(1) in sub-section (4), for the words “the Appellate Authority and the Appellate Tribunal”, the words, brackets and figures “the Appellate Authority, the Appe

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xpression “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,
(1) in sub-section (1),
(a) in clause (b), after the words “or furtherance of business;”, the word “and” shall be inserted;
(b) in clause (c), after the words “a consideration”, the word “and” shall be omitted;
(c) clause (d) shall be omitted;
(2) after sub-section (1), the following sub-section shall be inserted, namely:-
“(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.”;
(3) in sub-section (3), for the words, brackets and figures “sub-sections (1) and (2)”, the words, brackets, figures and letter “sub-sections (1), (1A) and (2)” shall be substituted.
4. Amendment of section 9: – In section 9 of the Principal Act,

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the words “one crore and fifty lakh rupees” 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 those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in the State in the preceding financial year or five lakh rupees, whichever is higher.”;
(2) in sub-section (2), for clause (a), the following clause shall be substituted, namely:
“(a) save as provided in sub-section (1), he is not engaged in the supply of services;”.
6. Amendment of section 12: – In section 12 of the Principal Act, in sub-section (2), in clause (a), the words, brackets and figure “sub-section (1) of” shall be omitted.
7. Amendment of section 13: – In section 13 of the Principal Act, in sub-section (2), the words, brackets and figure “sub-section (2) of” occurring at both the places, sh

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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.';
(2) in sub-section (5), for clauses (a) and (b), the following clauses shall be substituted, namely:-
“(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used
(i) for making the following taxable supplies, namely:-
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigatin

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(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 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; and
(iii) travel benefits extended to employees on vacation such as leave or home travel concession:
Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.”.
10. Amendment of section 20: -In section 20 of the Principal Act, in the Explanation , in clause (c), for the words and figures “under entry 84,”, the words, figures and letter

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rted.
13. Amendment of section 25: – In section 25 of the Principal Act,
(1) 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, 2005, in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State.”;
(2) in sub-section (2), for the proviso, the following proviso shall be substituted, namely:
“Provided that a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.”.
14. Amendment of section 29: – In section 29 of the Principal Act,
(1) in the marginal heading after the word “Cancellation”, the words “or suspension” shall be inserted;
(2) in sub-section (1

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, 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 Act, in sub-section (5), the following proviso shall be inserted, namely:-
“Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.”.
17. Amendment of section 39: -In section 39 of the Principal Act,
(1) in sub-section (1),
(a) for the words “in such form and manner as may be prescribed”, the words “in such form, manner and within such time as may be prescribed” shall be substituted;
(b) the words “on or before the twentiet

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rm 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 section 43A:- After section 43 of the Principal Act, the following section shall be inserted, namely:-
Procedure for furnishing return and availing input tax credit.
“43A. Procedure for furnishing return and availing input tax credit. – (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed.
(3) The procedure for furnishing the de

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hed 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 the non-recovered amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section
(3) by a registered person,-
(a) within six months of taking registration;
(b) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount, shall be such as may be prescribed.”.
19. Amendment of section 48: – In section 48 of the Principal Act, in sub-section (2), after the word and figures “section 45”, the words “and to perform such other functions” shall be inserted.
20. Amendment of section 49: – In section 49

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conditions.
“49A. Utilization 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 utilized fully towards such payment.
Order of utilization of input tax credit.
49B. Order of utilization of the input tax credit. – Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilization of the input tax credit on account of integrated tax, central tax, State tax or Union Territory tax, as the case may be, towards payment of any such tax.”
22. Amendment of section 52: -In section 52 of the Principal Act, in sub-section (9), for the word and figures

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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 words “arising from the said order,”, the words “subject to a maximum of twenty-five crore rupees,” shall be inserted.
26. Amendment of section 112: – In section 112 of the Principal Act, in sub-section (8), in clause (b), after the words “arising from the said order,” the words “subject to a maximum of fifty crore rupees,” shall be inserted.
27. Amendment of section 129: – In section 129 of the Principal Act, in sub-section (6), for the words “seven days”, the words “fourteen days” shall be substituted.
28. Amendment of section 143: -In section 143 of the Principal Act, in sub-section (1), in clause (b), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that the period of one year

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In Re: M/s. Borgwarner Morse Systems India Private Limited
GST
2018 (11) TMI 1267 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (19) G. S. T. L. 344 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 29-10-2018
ORDER No. 17/AAR/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND SHRI. S. VIJAYAKUMAR, M.SC., MEMBER
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also

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aged in manufacture and sale of following automotive chains which are used as a major component in manufacture of motor engines for motor vehicles (i.e., for both two wheelers and four wheelers).
Silent chains/ Inverted tooth chains (Used in Petrol engines)
Roller chains/ Bushing (Used in Diesel engines)
These automotive chains are 'part of internal combustion engines' that synchronizes the rotation of the crankshaft and the camshaft(s) so that the engine's valves could open and close at proper times. As the automotive chains manufactured by the Applicant are used in further manufacture of engines for motor vehicles, the Applicant had classified their product under following HSN code:
HSN
Description as per Central Excise tariff schedule
8409
Parts suitable for use solely or principally with the engines of heading 8407 or 8408
8409 9191
………of petrol engines for motor vehicles
8409 9141
……..of diesel engines for motor vehicles
2.2. Even under the GST legislation, t

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tes to Section XVI for Chapter 84 of Customs Tariff, this Section does not cover parts of general use. Notes to Section XV for chapter 73 clarifies that 'parts of general use' includes articles of heading 7315. Further, there is no specific reference to Roller or Silent Chains in Chapter 84. Though automotive chains are made as per the specifications of the engines, they would be classifiable under HSN 7315. Further, explanatory notes to HSN refers to Transmission chains for chains, automobiles or machinery under HSN 7315 and international classification mentions “Articulated Link chains and parts thereof'. They have relied on the decision of Hon'ble CESTAT, WZB in the case of M/S. Impex Corporation Vs. Commissioner of Customs (1998 (103) E.L.T. 548 (Tribunal)) = 1998 (2) TMI 262 – CEGAT, CALCUTTA, wherein the Tribunal has held that 'steel chains' used as parts of agricultural machinery are specifically covered under Tariff Heading 7315 and Voltas Ltd vs Commissioner of Customs, Mumbai

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purchase by client company, copy of documents relating to exports of 'Chains' by their group companies under HSN 7315. The Applicant further furnished a Technical write-up of the chains with samples, invoices, sample contracts, import documents.
3.2 The submissions of the Applicant were examined. In the case at hand from the technical write-up furnished by the Applicant, it is seen that the product in question are timing chains or Transmission Chains which are used for chain drive mechanism i.e., way of transmitting mechanical power from one shaft to another and are made of steel. They are used for transmitting power between the driver and driving shafts in industrial and automotive applications. Roller chains or Roller bush chains are the most commonly used for transmission of mechanical power on many kinds of domestic, industrial and agricultural machinery including conveyors, cars, motorcycles etc. It consists of a series of short cylindrical rollers held together by side links and

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d chains i.e. made of a series of links or plates which are driven by external sprockets and do not have any other assembly. The Applicant supplies these mainly to automotive industries where they are used in internal combustion engine, they synchronizes the rotation of the crankshaft and the camshaft(s) so that the engine's valves could open and close at proper time.
4.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017 Central Tax (Rate) dt. 28-06-2017, tariff heading, 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 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods.
4.3. Chapter 7315 covers “Chain and parts thereof, of Iron and Steel' and 'Ar

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made from wire, etc), and ball chain.
The heading includes:
(1) Transmission chains for cycles, automobiles or machinery.
(2) Anchor or mooring chains; lifting, haulage or towing chains; automobiles skid chains.
(3) Mattress chains, chains for sink stoppers, lavatory cisterns, etc.
All these chains may be fitted with terminal parts or accessories (e.g. hooks, spring hooks swivels, shackles, sockets, rings and split rings and tee pieces). They may or may not be cut to length, or obviously intended for particular uses.
Iron or steel parts of chain specialised as such e.g. side links, rollers, spindles, etc., for articulated chain, links and shackles for non-articulated for non-articulated chain, also fall in this heading.
The heading does not cover :
(a) Chains having the character of imitation jewellery in the sense of heading 71.17 (e.g. watch chain and trinket chains).
It is seen that articulated link chains of steel such as roller chain, inverted tooth (silent) chains ar

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nders and cylinders blocks, cylinders heads; cylinders linters; inlet or exhaust valves; inlet or exhaust manifolds; piston rings, connecting-rods; carburettors, fuel nozzels),
However, the heading excludes;
(a) Injection pumps (Heading 84.13)
(b) Engine crank shafts and cam shafts (heading 84.83) and gear-boxes (heading 84.83).
(c) Electrical ignition or starting equipment (including, sparking plugs and glow plugs) (heading 85.11)  
HSN Explanatory Note (1) (g) of Section XVI which covers chapter heading 84 states as under:
1. This Section does not cover:
(a)…………………
(g) Parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39)
Note 2 to Section XV defines 'parts of general use 'as under:
2. Throughout this Nomenclature, the expression “parts of general use” means:
(a) Articles of headings 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metal;
Further, the General Note

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In Re: Shri Kailash Chandra, (Mali Construction)
GST
2018 (11) TMI 1349 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (19) G. S. T. L. 537 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 29-10-2018
AAR No. RAJ/AAR/2018-19/22
GST
NITIN WAPA AND HEMANT JAIN MEMBER
Present for the applicant: Shri Yash Dhadda, CA, (Authorized Representative)
Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by Shri Kailash Chandra, (Mali Construction), situated at Mali Vas, Maandava, Mandwa, Sirohi, Rajasthan 307001 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under ambit of the Section 97 (2) (a) (e) which is as given under:
a. Classification of any goods or services or both;
e. Determination of the liabil

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odel and O&M work. That the activities under ESCO model and O & M contract are so closely linked in a manner that they form a single indivisible supply. The driving factors are:
* A single tender shall be floated for Operation and Maintenance of Fluoride Control Project on ESCO Cum O&M Contract where the preamble of scope specifies that the contract combines ESCO model and O&M work.
* The nature of contract is such that initial activities under ESCO model is the main service and the other services under O&M contract combined with such service are in the nature of ancillary services which help in better operation of main activities under ESCO model and make the model successful.
c. Thus, based on above facts and concept such contract shall be a single supply and cannot be treated as distinct supplies. Since all the conditions of composite supply are satisfied, it is a composite supply.
d. Further, since composite supply of works contract has been specifically classified as supply

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applicant shall be responsible for painting, color/ white washing, distempering etc. to the pumping station building, thrice during the entire contract period.
Transmission Pipelines
The contractor shall be responsible for Patrolling, operation and maintenance of the pipelines, repairing of leakages of pipelines, replacement of burst pipes, repairing of appurtenances of pipelines like air valves, scour valves air vessels system, intermediate OHSR (for vacuum filling system), pressure gauges, joints etc.
Switchyards
He shall be responsible for replacement of transformers if required according to year 2027 designed capacity of pump sets. He shall also be responsible for painting, color/ white washing, distempering etc. to the switchyard stuff thrice during the entire contract period.
Storage Tanks (CWR)
He shall also be responsible for painting, color/ white washing, distempering etc. to the CWR, compound wall, store etc thrice during the entire contract period.
Headworks Campus

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ting of all permanent structures like pumping station building etc. are involved in the contract.
j. Based on above facts and the intent of the proposed activity, it is implied that the given work is a contract for improvement of the pumping system under the Fluoride control project, wherein transfer of property in goods in the form of new pumping machinery and mechanical/electrical equipment shall be involved in the execution of such contract.
k. That Works contract in itself is a composite supply in which construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning etc are involved along with transfer or property in goods.
l. Now whether a supply is a works contract or not is dependent on whether the plant or device or property is a movable or immovable property. To decide whether a property is movable or immovable, the given terms have not been defined under the Act and hence th

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as moveable and will, therefore, not be excisable goods.
p. Further, such a contract can amount to works contract in GST only if the improvement is of any immovable property. Taking references from the concepts evolved from the precedents, it is understood that the properties for which improvement works has been assigned like pump houses, storage tanks, headworks campus etc. cannot be moved from one site to another. All the components of the pumping system are erected at the prescribed location and permanently attached to the earth and they cannot be dismantled and reassembled as such dismantling may cause substantial damage to the system and its components.
Thus, according to applicant the property of improvement is an immovable property and thus the given work should be treated as works contract.
2. OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
Whether the activity of O & M of Fluoride control project on ESCO Model and O & M work supply of goods or supply of services and what

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rvices. Now works contract service in itself is a composite supply. The same has been defined under Schedule-Il under Entry 6 which is read under:
“6. Composite supply
The following composite supplies shall be treated as a supply of services, namely:
(a) works contract as defined in clause (119) of section 2; and
(b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration.”
3. The terms and scope of the contract combines ESCO Model and O&M work. That the activities under ESCO model and O&M contract are so closely linked in a manner that they form a single indivisible supply. The driving factors are:
* A single tender is being floated for Operation and Maintenance of Fluoride Control Project on ESCO Cum O&M Contract in which preamble of s

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mp sets or as per site condition. The supply and installation of new pumping machinery and other equipments shall be done as per best engineering practice.
b. The operation and maintenance work shall be carried out of all the electrical and mechanical instruments, pumping machinery etc.
c. The pumping station and its surrounding shall be kept clean and in dry condition, properly ventilated and illuminated. For the purpose of illumination, replacement of fitting/ fixtures shall be done by the contractor, if required.
d. He shall be responsible for painting, color/ white washing, distempering etc. to the pumping station building, thrice during the entire contract period.
e. Transmission Pipelines
The contractor shall be responsible for Patrolling, operation and maintenance of the pipelines, repairing of leakages of pipelines, replacement of burst pipes, repairing of appurtenances of pipelines like air valves, scour valves air vessels system, intermediate OHSR (for vacuum filling sys

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d remote monitoring.
O&M work
The scope of work of O&M contract includes operation and maintenance of rising mains of RWSS/Clusters, OHSR and water treatment plant at Baghera.
5. It is understood based on the scope of work detailed above that ESCO model requires improvement of the whole water supply system involving pump houses, pumping stations, transmission lines, switchyards, storage tanks and headwork campus. Re-modelling of pump foundation and extension of pump house, replacement of fittings/ fixtures and painting of all permanent structures like pumping station building etc. are involved in the contract.
6. Based on above facts and the intent of the proposed activity, it is implied that the given work is a contract for improvement of the pumping system under the Fluoride control project, wherein transfer of property in goods in the form of new pumping machinery and mechanical/ electrical equipment shall be involved in the execution of such contract.
7. That Works contract in

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earth which is temporary in nature or can be shifted from part of earth to another without causing substantial damage to it cannot be treated as immovable property.
11. On the given issue, CBEC has also clarified in its circular number 58/ 1/2002-CX dated 15/ 1/2002 where in para (e) it was clarified that;-
If items assembled or erected at site and attached by foundation to earth cannot be dismantled without substantial damage to its components and thus cannot be reassembled, then the items involved not be considered as moveable and will, therefore, not be excisable goods.
12.According to definition of works contract under GST regime, the supply of goods and services are done by the supplier simultaneously which is for immovable property. Hence in works contract supply of goods and services together is compulsory.
Thus, based on above facts and concept we find that the contract shall be a single supply and cannot be treated as distinct supplies. Since all the conditions of composi

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nt or a local authority and the supply is by way of an activity in relation to functions entrusted to Municipality under Article 243W of the Constitution then no GST is applicable.
14. The activities entrusted to the Municipality under Article 243W of the Constitution of India and listed under Twelfth Schedule are enumerated as under;
[Article 243-W]
1. Urban planning including town planning.
2. Regulation of land use and construction of buildings.
3. Planning for economic and social development.
4. Roads and bridges.
5. Water supply for domestic, industrial and commercial purposes.
6. Public health, sanitation conservancy and solid waste management.
7. Fire services.
8. Urban forestry, protection of the environment and promotion of ecological aspects.
9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
10. Slum improvement and up gradation.
11. Urban poverty alleviation.
12. Provision of urban amenities and facili

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2017-CT (Rate) dated 28.06.2017, as amended from time to time.
On perusal of said Notification under S. No. 3(iii), for schedule of rate of Tax on works contract Services, following is mentioned:-
Heading 9954 (Construction services)
 
CGST Rate %
SGST Rate %
IGST Rate %
Remarks
 
(iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, –
(a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);
(b) canal, dam or other irrigation works;
(c) pipeline, conduit or

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In Re: M/s. Naga Limited
GST
2018 (11) TMI 1350 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (19) G. S. T. L. 342 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 29-10-2018
ORDER No. 18/AAR/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND SHRI. S. VIJAYAKUMAR, M.SC., MEMBER
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same prov

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g out Milling operations in their factory premises and manufacture of food products. While clearing the imported wheat from the sea ports, the Applicant is engaging various service providers for providing services such as loading, unloading, packing, storage or warehousing of agricultural products imported for clearing from the sea ports and to bring to their factory premises. Service Providers of the above said services at certain Ports by availing the exemption as per Sl.No. 54(e) of Notification 12/2017-CT(Rate) dated 28.06.2017, do not charge GST, on the ground that such services are rendered in relation to Agricultural Products. However, in one or two Ports, the service providers of loading and unloading and warehousing who handled wheat imports feels that the GST exemption Notification for the loading, unloading, packing, storage and warehousing of agricultural produce, mentioned under the Chapter heading 9986 Serial No.54(e) of Notification No. 12/2017 Central Tax (Rate) dated 2

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exemption will cover on the market and to all stake holders. Further, they have stated that as there is no differential treatment given between indigenous Agricultural produce and imported Agricultural produce, the exemption provided in respect of the unprocessed Agricultural produce is applicable not only to cultivators but also applicable to import traders.
3. The applicant was heard in person. The applicant submitted an agreement with Karaikal Port, an Invoice for storage charges and Advance Rule of Andhra Pradesh. They stated that Wheat is agricultural produce and service of loading, unloading, storage at Ports by respective Port authorities are related to agricultural produce and hence should be exempt.
4. The contentions of the applicant were examined. We find that the Advance Ruling sought is whether the exemption under Sl.No. 54(e) of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 is applicable for imported agricultural products Viz., Wheat also. From the submissions it

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Orient Poles Versus Commissioner of GST & Central Excise, Chennai South (Vice-Versa)
Service Tax
2018 (11) TMI 1467 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 29-10-2018
ST/397/2011, ST/41867/2013 to ST/41870/2013 and ST/CO/42245 to 42248/2014, ST/42124/2013 to ST/42127/2013 and ST/Misc. /4110, 41152 – 41155, 40809/2017 – Final Order Nos. 42770-42778/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri J. Shankar Raman, Advocate for Assessee
Shri A. Cletus, Addl. Commissioner (AR) for Revenue
ORDER
Per Bench
The issue involved in all these appeals being the same, they were heard together and are disposed by this common order. The parties herein are referred to as assessee and department for the sake of convenience.
2. The assessees are engaged in execution of contracts for erection, installation of electrical poles for street lights etc. for Government and other local bodies namely Municip

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dt. 28.4.2009
7/200 to 9/2008
Rs.50,25,591 of Service Tax under ECIS
Under section 76 & 78
ST/41867 to 41870/2013
OIA No. 191 & 192/2013 dated 12.6.2013 passed by Commissioner of Central Excise(A), Chennai On appeal against OIO No. 81 &82/2011 dated 2.9.2011
SCN No. 339/2010 dated 14.5.2010 & SCN No. 166/2011 dt. 8.4.2011
Oct. 08 to March 2009 And
April 09 to March 2010
Rs.32,45,393/-
Rs.45,33,390/- Demand is under ECIS
Under section 76 & 78
Department appeals ST/42124 – 42127/2013Against confirmation of demand under WCS
OIO No.. 187 & 188/2012 dt. 30.10.2012
SCN No. 290/2011 dt. 25.8.2011 andSCN No. 88/2012 dt. 4.4.2012
April 2010 to March 2011
Apr. 11 to Sep. 11
Rs.27,79,551/-
Rs.33,02,028/-
 
3. On behalf of the assessee, ld. counsel Shri J. Shankar Raman submitted that in Appeal No. ST/397/2011, the period involved is from July 2007 to September 2008 and the demand made in the show cause notice is under erection, commissioning and installation services. As

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ave been under ECIS and not under works contract service. He relied upon the decision of the Tribunal in the case of Real Value Promoters Ltd. (supra) and argued that the entire contracts are composite in nature involving both supply of materials and rendering of service. The Tribunal in the said case has held that after 1.6.2007, the demand of service tax on such composite contracts can be leviable only under works contract service. Therefore, the demands cannot sustain.
4. The ld. AR Shri A. Cletus supported the grounds in the appeals filed by the department.
5. After hearing both sides, it is brought to light that the period involved in the present case is July 2007 to September 2011. The demand has been raised in the show cause notice under ECIS. The contract entered between the appellant and the service recipient is a composite contract which involves both supply of materials as well as rendering of service. The Tribunal in the case of Real Value Promoters Ltd. (supra) had occas

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ommercial or industrial construction service, construction of complex service and in addition turnkey projects including EPC projects within the definition of Works Contract Service.
7.9 At this juncture, it is worthwhile to reproduce excerpts from the Union Finance Minister's budget speech in 2007:-
“State Governments levy a tax on the transfer of property in goods involved in the execution of a works contract. The value of services in a works contract should attract service tax. Hence, I propose to an optional composition scheme under which service tax will be levied at only 2 per cent of the total value of the words contract”.
7.10 The issue was analyzed by the Hon'ble Apex Court in Larsen & Toubro case (supra) and held that there can be no levy of service tax on composite contracts (involving both service and supply of goods) prior to 1.6.2007. This read together with the budget speech as above would lead to the strong conclusion that composite contracts were brought within the

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pecialibus non derogant' – 'general things do not derogate special things'. The counsel for appellants have submitted that as per Section 65A of the Act ibid, classification of service shall be based on the specific entries and the more specific description of service has to be preferred. He invited our attention to CBEC‟s Circular 128/10/2010 dated 24.8.2010 which is reproduced as under:-
“The matter has been examined. As regards the classification, with effect from 1-6-2007 when the new service 'Works Contract service' was made effective, classification of aforesaid services would undergo a change in case of long term contracts even though part of the service was classified under the respective taxable service prior to 1-6-2007. This is because 'works contract' describes the nature of the activity more specifically and, therefore, as per the provisions of Section 65A of the Finance Act, 1994, it would be the appropriate classification for the part of the service provided after

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1994. The SCN did mention this in the first para itself. However, the proposal for tax demand was specifically made under Commercial or Industrial Construction Service under Section 65 (105) (zzq) of the Finance Act, 1994. In such situation, we note that it cannot be a case of simple mentioning of wrong provisions of law as submitted by the Revenue. Apparently, the tax liability of composite works contract is to be considered under works contract services only as per legal position settled by the Hon'ble Apex Court in M/s L&T Limited. Even in the appeal, the Revenue submitted that the respondent were engaged in construction services liable to tax under tax entry Section65(105) (xxq). The grievance of the Revenue is with reference to commercial nature of the construction undertaken by the respondent and not on the correct classification of taxable activity.”
b. In the case of Skyway Infra Projects Pvt. Ltd. Vs. Commissioner of Service Tax, Mumbai – 2018-TIOL-360-CESTAT-MUM, in res

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ties are accepting the facts that the contracts executed by the appellant are nothing but works contracts, for the period in question, entire case of the Revenue in the show-cause notice stands demolished by the Apex Court in the case of Larsen & Toubro Ltd. (supra). In the said judgment, their Lordships have very categorically laid down the law that the works contract cannot be vivisected for the confirmation of demand under various other services. On this ground itself, the entire demand confirmed by the adjudicating authority is liable to be set aside and we do so.”
c. In the case of URC Construction (P) Ltd. Vs. Commissioner of Central Excise, Salem – 2017 (50) STR 147, the Tribunal in paragraphs 9, 10 and 11 has held as under:-
“9. The Hon'ble Supreme Court in re Larsen & Toubro & Ors. has decided thus
'24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter

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of the works contract the value of properly in goods transferred in the execution of a works contract.'
10. In view of this specific decision and the admitted claim of the appellant that they are not providers of 'commercial or industrial construction service' but of 'works contract service', no tax is liable on construction contracts executed prior to 1st June, 2007.
11. Insofar as demand for subsequent period till 30th September, 2008 is concerned, it is seen that neither of the two show cause notices adduce to leviability of tax for rendering 'works contract service'. On the contrary, the submission of the appellant that they had been providing 'works contract service' had been rejected by the adjudicating authority. Therefore, even as the services rendered by them are taxable for the period from 1st June, 2007 to 30th September, 2008 the narrow confines of the show cause notices do not permit confirmation of demand of tax on any service other than 'commercial or industrial constr

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ories and not under Works Contract service. The demand confirmed in the impugned order under these categories namely under construction service for the period 10.09.2004 to 16.06.2005 under CICS for the period 16.06.2005 to 30.09.2008 cannot also sustain and are therefore set aside. So ordered
5.3 For the period 01.04.2008 to 30.09.2008, the demand confirmed is Rs. 26,88,611/-. We note that the appellant has not contested the liability under works contract for this period. The only argument brought forth by the Ld. Counsel is that they have discharged an amount of around Rs. 82 lakhs under this category after the visit of the departmental officers and therefore an amount of Rs. 36,88,611/- demanded in the impugned order should be considered as having been discharged. We find merit in his argument and hence the demand of Rs. 26,88,611/- under works contract service for the period 01.04.2008 to 30.09.2008 is required to be considered as having been paid, albeit subsequent to the visit o

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impliciter.
c. For activities of construction of new building or civil structure or new residential complex etc. involving indivisible composite contract, such services will require to be exigible to service tax liabilities under 'Works Contract Service' as defined under section 65(105)(zzzza) ibid.
d. The show cause notices in all these cases prior to 1.6.2007 and subsequent to that date for the periods in dispute, proposing service tax liability on the impugned services involving composite works contract, under 'Commercial or Industrial Construction Service' or 'Construction of Complex' Service, cannot therefore sustain. In respect of any contract which is a composite contract, service tax cannot be demanded under CICS / CCS for the periods also after 1.6.2007 for the periods in dispute in these appeals. For this very reason, the proceedings in all these appeals cannot sustain.”
5. Following the above decision, we are of the considered opinion that the demand of service tax under

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Commissioner of GST & CE Chennai South Versus Redington (India) Ltd.
Service Tax
2018 (11) TMI 1468 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 29-10-2018
Application No. ST/MISC/40793/2017 Appeal No. ST/330/2012 – FINAL ORDER No. 42883/2018
Service Tax
Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri S. Govindarajan, AC (AR) For the Appellant
Shri C. Manickam, Sh. Ajay Kumar Gupta, Advocate & Shri D. Senthil Nathan, Consultant For the Respondent
ORDER
Per Bench
Brief facts are that the respondents, M/s. Redington (India) Ltd are engaged in the business of distributing computer hardware and software of various manufacturers such as M/s. Hewlett Packard, IBM, Microsoft, etc. They are also engaged in maintenance and repair for these products during the warranty period as well as post warranty period. On intelligence that the respondents are not paying service tax on services rendered to M/s. Hewlett Packa

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as inventory reports on weekly basis to HP.
2. From the foregoing it appeared that respondents as distributors were receiving 1% volume discount on the total turnover made, in respect of HP Products and that this was not a trade or sales discount but a commission for providing HP with strategic market information to enable them to maximize the sales of HP products wherever required. The department was of the view, that respondent were providing Business Auxiliary Service to M/s. HP. Therefore a Show Cause Notice was issued proposing to demand the service tax alongwith interest and for imposing penalties. After due process of law, the original authority dropped the proceedings holding that 1% discount is not consideration received for rendering services and hence not taxable. Aggrieved, the department is now before the Tribunal.
3. The Ld.AR, Sh.S.Govindarajan reiterated the grounds of appeal. He submitted that the findings of the adjudicating authority that respondents are not rende

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ing or sale of goods produced or provided by or belonging to the client would fall under the category of Business Auxiliary Service. Therefore when the respondents are furnishing strategic inventory reports on weekly basis, in a format specified by HP, the same is service incidental or auxiliary or promotion or marketing or sale of goods produced by HP and the 1% discount received by the respondents from HP is chargeable to service tax under Business Auxiliary Service. It is submitted that in a similar case involving M/s.HP and the respondent pertaining to the 1% discount offered to the dealer / distributor as in the present case, the CESTAT, Bangalore [2003(162) ELT 399(T)] considered the issue of includibility of the said 1% additional discount paid to the assesse as a distributor / dealer in the assessable value of the excisable goods manufactured by M/s.HP. In the said case, the Hon'ble Tribunal held that the reports sent by the dealers, are in the nature of market intelligence, wh

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he basis of reports and inventory reports submitted to M/s.HP. The adjudicating authority has rightly dropped the proceedings finding that the respondent was neither commission agent nor was rendering any Business Auxiliary Service. The relationship between the respondent and M/s.HP is that of manufacture and buyer and merely because an inventory report is furnished to the manufacturer in regard to the sale of goods, it cannot be said that the appellant has rendered any services to M/s.HP. The decision of the Tribunal, Bangalore rendered in 2003 (162) E.L.T.399 (Tri.-Bang) relied in the grounds of appeal by the department, has held that the 1% discount does not fall in category of permissible discount to be excluded from the assessable value of goods manufactured by HP in terms of Section 4 of Central Excise Act, 1944. For this very same reason, the said discount, if any, has to be included in the assessable value by the manufacturer namely M/s.HP Ltd. Thus the discount is subject to p

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t, 1994 ―Business Auxiliary Service‖ means any service in relation to –
(i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or
(ii) promotion or marketing of service provided by the client; or
(iii) any customer care service provided on behalf of the client; or
(iv) … … … … … … … … …
(v) … … … … … … … … …
(vi) provision of service on behalf of the client; or
(vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any activity that amounts to manufacture of excisable goods.
Explanation.- For the removal of doubts, it is hereby declared

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s value, then such value shall, –
(i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;
(ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money as, with the addition of service tax charged, is equivalent to the consideration;
(iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner.
(2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.
(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or a

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ed or produced, under the provisions of the Central Excise Act, 1944, as amended. For the purpose of working out the duty of excise chargeable on any excisable goods, as per Section 4 of the Central Excise Act, inter alia, such value shall –
(a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value;
(b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed.
6.5 For the removal of doubts, Explanation to Section 4 (1) declares that that the price-cum duty of the excisable goods sold by the assessee shall be the price actually paid to him for the goods sold and the money value of the additional consideration, if any, following directly or indirectly from the buyer to the assessee in connection with the sale of such goods, and such p

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Excise duty is brought about in Central Excise Valuation Rules, 2000. So also, Service Tax (Determination of Value) Rules, 2006 have been introduced vide Notification No.12/2006-ST dt. 19.4.2006.
6.8 The important takeaway from these discussions on the differing nature of assessable value, one for the purpose of levy of Central Excise duty and the other for levy of service tax, is that they are two different and distinct entities. This indeed has to be so, since the purpose of levy of central excise duty is to levy tax on production or manufacture of excisable goods in India whereas service tax is a levy on service, which by its very intrinsic nature cannot then be an activity amounting to “manufacture” and subject to Central Excise levy.
6.9 The basic nature of service tax was dealt with by the Hon'ble Apex Court in the case of All India Federation of Tax Practitioners Vs UOI – 2007 (7) STR 625 (S.C.) wherein it was inter alia held as under :
“8. As stated above, service tax is VA

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s and consumption of services are similar as they both satisfy human needs. Today with the technological advancement there is a very thin line which divides a “sale” from “service”. That, applying the principle of equivalence, there is no difference between production or manufacture of saleable goods and production of marketable/saleable services in the form of an activity undertaken by the service provider for consideration, which correspondingly stands consumed by the service receiver. It is this principle of equivalence which is inbuilt into the concept of service tax under the Finance Act, 1994. That service tax is, therefore, a tax on an activity. That, service tax is a value added tax. The value addition is on account of the activity which provides value addition, for example, an activity undertaken by a chartered accountant or a broker is an activity undertaken by him based on his performance and skill. This is from the point of view of the professional. However, from the point

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dered to be a service and subjected to service tax. In fact, the process amounting to “manufacture” is kept specifically out of the scope of Section 65 (19) of Finance Act, 1994 which prescribes service tax liability on processing of goods not amounting to manufacture.
6.11 It has been consistently laid down by the Tribunal, in a plethora of decisions, that consideration which is subject to payment of excise duty is not liable for payment of service tax liability. Some of such decisions, correctly cited by the Ld. Advocate for respondents, are as under :
1) Allengers Medical Systems Ltd. Vs CCE Chandigarh 2009 (14) STR 235 (Tri.-Del.)
2) Alidhara Texspin Engineers Vs CCE & Customs, Vapi 2010 (20) STR 315 (Tri.-Ahmd.)
3) Sharma and Associates Firetech Pvt. Ltd. Vs CCE Indore 2017 (51) STR 289 (Tri.-Del.)
4) Vidarbha Grindeers (P) Ltd. Vs CCE Nagpur 2015 (40) STR 331 (Tri.-Mumbai)
In Jubiliant Industries Vs CCE Ghaziabad – 2013 (31) STR 181 (Tri.-Del.), the Tribunal categorically h

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the Hon'ble Apex Court on 06.02.2004 [2004 (167) ELT A137 (SC)]. The department should have taken precautionary measures to issue periodical SCNs on the very same issue from time to time pending final decision in the matter. This being the case, we are unable to fathom the how and why of the department having taken a stand contrary to that settled by the Hon'ble Apex Court on 06.02.2004 and deemed it proper to issue a SCN taking an antipodal and opposite proposition. Unless the said judgment of the Supreme Court has been further reviewed, or for that matter, the ratio laid down had been overturned by the Hon'ble Apex Court itself, which is certainly not the case here, there is no justification for the department to have initiated the impugned proceedings. In our view, seeking to tax a particular commission amount under excise duty on the one hand, and in respect of the identical transaction, demanding service tax liability on the very same amount, is nothing but an exercise in incredul

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take support of the decision of Hon'ble CESTAT in the case of M/s.Pratap Singh & Sons Vs Commissioner of Central Excise, Mumbai-I, as reported in 2007 (5) STR 389 (Tri-Mumbai), wherein it was held as follows :
5. The appellant have purchased and sold from the principals as their distributor. On purchase of the goods, the ownership changes to the appellant and as owner, dealer or transferee of the goods, it was in his own interest to promote the sales activities and to make advertisement and keep the trained salesman and hence, they are part of the dealers job. This cannot be treated as service rendered to the principals namely the manufacturers. If there was any special relationship or additional consideration leading to charging of lower price to the appellant, at the most, it can become an issue relating to valuation of the goods. The discount given by the manufacturer cannot be taken as service charges. The decision of the Commissioner (Appeals) in treating the appellant as provid

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COROMANDEL AGRICO PVT LTD THROUGH ALPANA YAGNESH BAKTARWALA Versus COMMERCIAL TAX OFFICER
GST
2018 (12) TMI 1578 – GUJARAT HIGH COURT – [2019] 63 G S.T.R. 1 (Guj), 2019 (26) G. S. T. L. 460 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 29-10-2018
R/Special Civil Application No. 16731 of 2018
GST
Mr. Justice Akil Kureshi And Mr. Justice Umesh Trivedi
For the Petitioner : Mr D K Trivedi
For the Respondent : Advance Copy Served to Government Pleader/PP, DS AFF.Not Filed (N), Notice Not Recd Back
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. Draft amendment is allowed.
2. The petitioner has challenged an order of attachment dated 09.10.2018 passed by the respondent authorities attaching the petitioner's plant, machinery and present stock situated at the said plant. The petitioner is in the business of manufacturing agrochemicals.
3. The facts admitted by the petitioner are that the petitioner could not discharge its GST liabilities for the past several mont

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perate its factory since the date of passing of the order. The petitioner would not be able to pay its creditors and the workers their dues. The petitioner offered to clear all the taxes in installments.
6. Learned AGP Shri Trivedi opposed the petition contending that the petitioner has not paid the selfassessed tax. Such tax has been collected from the purchasers. The petitioner cannot press financial hardship in depositing such tax with the Government revenue. The authorities have rightly exercised powers under Section 83 of the Act to protect the interest of Government revenue.
7. In the facts of the case, we would like to find a way out of the impasse so that the petitioner can restart its manufacturing activities and start repaying the Government dues. In this context, few things become relevant. Firstly, according to the petitioner, the outstanding dues are in the vicinity of Rs. 64.00 Lacs. This does not account for possible interest or penalty or late payment charges. The pet

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a further sum of Rs. 5.00 Lacs latest by 12.11.2018.
(II) The remaining amount, as per the petitioner's declaration, would be cleared in
Three Equal Monthly installments. The first one of them starting from the month of December 2018. Each installment shall have to be deposited by the Fifth of the month.
(III) The Director of the petitioner Company would file an Undertaking before this Court latest by 02.11.2018 that all these conditions would be fulfilled.
9. The attachment on the petitioner's stock, under the impugned order dated 09.10.2018, shall stand suspended. In other words, while maintaining the attachment on the plant and machinery, we permit the petitioner to carry out its manufacturing activities and clear the manufactured goods. Upon breach of any of the above condition nos.(I), (II) or (III), including failure to deposit any of the installments, such restrictions shall stand restored.
10. The petitioner shall cooperate with the proceedings for assessment or any oth

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IGST Export Refunds – extension in SB005 alternate mechanism and revised processing in certain cases including disbursal of compensation Cess
PUBLIC NOTICE N0. 137/2018/ 30.10.2018 Dated:- 29-10-2018 Trade Notice
Customs
OFFICE OF COMMISSIONER OF CUSTOMS (Export)
NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI-400 001
Email : Drawback.nch@gov.in
F. No. S/26.Misc-12/2018-19 IGST Refund
Date: 29.10.2018
PUBLIC NOTICE N0. 137/2018/ 30.10.2018
Sub: reg.
Attention of the trade is invited to Board's Circular No. 40/2018-Customs issued vide F. No. 450/119/2017-cus IV dated 24th October 2018.
1. Exporters are availing the refunds of IGST paid on exports regularly for more than a year now. It has been observed that exporters have committed many errors which have hampered sanctioning of IGST refund. CBIC has introduced several options and alternative mechanisms through which various mismatch errors between the Shipping Bill (SB) and GSTR 1 data can be handled in the system.
2. CB

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d that the exporters shall have to take care to ensure the details of invoice, such as invoice number, IGST paid etc. under GSTR 1 and shipping bill match with each other since the same transaction is being reported under GST laws and Customs Act.
3. It may be noted that SBS which have not been scrolled due to the IGST paid amount erroneously declared as 'NA' are already being handled through officer interface as per Board's Circular 08/2018 – Customs dated 23.03.2018. However, no such provision was hitherto available in respect of those SBS which were successfully scrolled, albeit with a lesser than eligible amount.
4. CBIC has been receiving representations where the refund scroll has been generated for a much lesser IGST amount than what has actually been paid against the exported goods. Broadly, this has happened due to:
a. Error made by the exporter/CHA in declaring the IGST paid amount in SB or,
b, cases where compensation cess paid amount was not entered by th

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unt, the exporter is required to submit a duly filled and signed Revised Refund Request (RRR) annexed to this circular to the designated AC/DC. A scanned COPY Of the P.P.R may also be mailed to dedicated email address of Customs locations from where exports, took place, The designated/concerned AC/DC will then proceed to sanction the amount after due verification through the option provided in ICES, a detailed advisory on which Will be communicated by DG Systems to all the System Managers shortly. Once the revised amount is approved by the designated AC/DC in the system, a fresh scroll will be available for generation for the differential amount only.
7. It may be noted that only those SBS which have already been scrolled shall be available in this facility, Further, this facility can be used only once for each eligible SB to sanction the revised IGST amount, Thus, utmost care may be taken by the exporter while submitting the RRR as no further provision will be available for revising

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