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Section 9A – Acts – PAYMENT OF TAX – UNION TERRITORY GOODS AND SERVICES TAX ACT, 2017 – Section 9A – 1[Utilisation of input tax credit. 9A. Notwithstanding anything contained in section 9, the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised towards such payment.] ****** Notes 1. Inserted vide Union Terri

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Goods and Services Tax – GST (Amendment) Acts, 2018 to amend CGST Act, IGST Act, Compensation to States Act and UTGST Act, got Presidential assent as on 29.8.2018 – TMI Updates – Highlights

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Goods and Services Tax – Started By: – Ramakrishnan Seshadri – Dated:- 31-8-2018 Last Replied Date:- 31-8-2018 – We are going to construct one factory.For this we have awarded the contract to one construction company.We have paid advance and gst to them.Now they have given their first bill after after adjusting the 50% advance and 50% gst on this bill.Whether this correct or not?Details as below in example:-Total contract value : 100 croresAdvance 30% : 30 crores +GST 5.4 croresBill submitted for 25%on contract value :25 crores +4.5 croresThey have adjusted 50% of the advance and gst paid in their first bill submitted.ie.: 15 crores +GST :2.7 croresThe balance 50% advance will be adjusted in the next bill.Could you please suggest whether t

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tral Tax, dated 15/11/2017, extended the benefit to all taxable persons (other than Composition dealers). This relief is not available on outward supply of services. GST is payable on advance received in case of outward supply of services. Construction Company providing SERVICES to you . They need to pay GST on received of advance itself. In my view , GST on Advance can not be kept pending for adjustment in their subsequent bills – Reply By Ganeshan Kalyani – The Reply = GST is applicable on receipt of advance toward service. The supplier of service shall pay tax on advance received and adjust that tax paid against the invoice he will raise in future. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = I endorse the views of Ms. Anita – Disc

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2018 (9) TMI 247 – CESTAT MUMBAI – 2018 (362) E.L.T. 833 (Tri. – Mumbai) – CENVAT Credit – input service or not? – payment made to a third agency i.e. M/s. Shree Kalamadevi Charitable Trust for imparting training to students of underprivileged section of society in discharge of corporate social responsibility – Held that:- CSR is not only a holistic approach but it has integrated the core business strategy since it addresses the wellbeing of all stake holders and not just companies shareholders – CSR is not a charity any more since it has got a direct bearing on the manufacturing activity of the company which is largely dependent on smooth supply of raw materials even from remote location or tribal belts (that requires no resistance in the supply chain from the community) and the same also augments the credit rating of the company as well as its standing in the corporate world.
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Whether CSR can be considered as input service and be included within the definition of “activities re

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ncy(Trust), the other dispute relating to suppression etc. that would attract extended period is not required to be discussed in the appeal, nor the part acceptance of the duty liability by the appellant.
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Appeal allowed – decided in favor of appellant. – Appeal No. E/85322/2018 – Order No. A/87216 / 2018 – Dated:- 31-8-2018 – Hon ble Dr. Suvendu Kumar Pati, Member ( Judicial ) Shri Prasad Paranjape, Advocate for the appellant Shri D.S. Chavan, Supdt. ( AR ) for the respondent ORDER Denial of cenvat credit to the appellant against payment made to a third agency i.e. M/s. Shree Kalamadevi Charitable Trust for imparting training to students of underprivileged section of society in discharge of corporate social responsibility is challenged before this Tribunal. 2. Facts given arise to this appeal is that appellant M/s. Essel Propack Ltd. situated in village Vadavali at Thane District manufactures multi layer plastic laminates falling under chapter heading 39201012 & 39201012 of t

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diture was incurred by the company which was covered under the activities relating to business as provided under the definition of input services given in Rule 2(l) of the Cenvat Credit Rules 2004 and the services of students were utilised in relation to manufacturing business of the appellant since they were assigned duties to prepare data sheet, maintain production log book, support preventive maintenance of machines, and assist production operators and in the process, they learn the nature of job that made them eligible to become future workers in factories. 4. Ld. Counsel for the appellant Shri Prasad Paranjape also pointed out with reference to judicial decision that the concept of business is not static and over the period of time, the expression involves complete care and concern for the society at large and the people of the locality in which business is located in particular for which the term activities relating to business is of wider ramification and corporate social respon

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Charitable Trust from various tenders against which reimbursement of expenses were claimed by the trust and the same was reimbursed that would not fulfil the requirement of input service availed by the appellant. Ld. AR of the department also pointed out that Section 135 of the Companies Act effective from 01.04.2014 on mandatory CSR activities to be discharged by the company pertains to the period not covered under the period of dispute which was between October 2009 and November 2010 and therefore the contention of the ld. Advocate for the appellant that such obligation of CSR activity was discharged in compliance to statutory obligation is not to be accepted. In citing judicial decisions on these issues and highlighting the judgment reported in 2012 (26) STR 514 (Kar) in the case of Millipore India Pvt. Ltd. and 2010 (20) STR 456 in the case of Manikgarh Cement, ld. AR submitted that credit of service tax paid on input services for CSR were not covered under Cenvat Credit Rules for

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SR, though roots of CSR lie in philanthropy activity of Corporations globally. The concept of CSR has evolved and now encompasses all related concept including corporate sustainability since EC defines CSR as the responsibility of enterprises arose for their impact on society who should have in place a process to integrate social, environmental, ethical human rights and consumer consciousness into the business operation and core statute in close collaboration with their stake holders. The World Bank CST defines CSR as the continuing commitment by business to contribute to economic development while meeting the quality of life in the work place and their family as well as of the community and society at large. Similarly, United Nations IDO also defines it as a management concept whereby companies integrate social and environmental concerns in their business operations and interaction with stakeholders (not only with share holders). Therefore, CSR is generally understood as being the way

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onents namely:- i) Community s participation provide the licence to operate companies as government licenses would not suffice such smooth operation. ii) It attracts and boosts employees and encourages them to participate by enhancing employees moral that they all belong to the company. iii) Companies have invested in CSR to enhance community livelihood by incorporating them in their supply chain. This has not only benefited communities and increased their in complacency but has provided the company with additional or secure supply of raw material. iv) It enhances the reputation of company, its goodwill by creating a positive image and branding benefits that continue to exist for companies who operate CSR programmes. 6.4. The essence of the above discussion would indicate that CSR is not a charity any more since it has got a direct bearing on the manufacturing activity of the company which is largely dependent on smooth supply of raw materials even from remote location or tribal belts

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a charity which is unrelated to production. Second, no direct service was availed by the appellant from the said Kalama charitable Trust as it had made the expenditure itself and sought reimbursement from the appellant. Third, the same is not in conformity to the Rules meant for raising of invoice as contemplated under Rule 9(2) besides being outside the scope of input service defined under Rule 2(l) of the Cenvat Credit Rules 2004 for which the credit as referred above was inadmissible. 9. The stand of the department is reiteration of the order-in-original passed by the Jt. Commissioner of Central Excise, Thane I that was also affirmed by the Commissioner (Appeals) Thane on the ground that the reimbursement of expenses is nothing but financial assistance in the form of charity made to Kalama Charitable Trust. Reliance has been placed on the decision of the CESTAT Chennai bench in 2011 (268) ELT 86 (Tri-Chennai) in holding such finding by the first appellate authority and justificatio

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the department is that even if such an activity was not carried out, the appellant s activity of manufacturing and sale of excisable goods would have continued. In placing reliance on the decision reported in Millipore India Pvt. Ltd. (supra) and decision of the Bangalore Tribunal in Mangalore Refinery and Petrochemicals Ltd. case reported in 2015 (10) STR 1093 that distinguished the Mangalore Refinery case. He thrust his emphasis on the copy of the agreement made between the appellant and the M/s. Shree Kalamadevi Charitable Trust about which reference is also made in the orderin- original that although the Trust and the company specifically agreed with the training being provided by the company, it was purely towards CSR initiative driven by the company (para 13 at page 57 of the appeal paper book) and therefore no separate stand can be taken by it that students were engaged in the manufacturing activity. It pertains to the dispute for the year 2009-10. Therefore in the instant case

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rred, there was existence of such provision (may not be in the form of statutory provision) regarding discharging of CSR activities by the companies as it says that new guidelines issued by the DPE in April 2013 would replace two existing separate guidelines on CSR and sustainable development issued in 2010 and 2011 respectively. Therefore sustainability is dependent on CSR without which companies cannot operate smoothly for a long period as they are dependent on various stake holders to conduct business in an economically, socially and environmentally sustainable manner i.e. transparent and ethical. Hence in my considered view, CSR which was a mandatory requirement for the public sector undertakings, has been made obligatory also for the private sector and unless the same is to be treated as input service in respect of activities relating to business, production and sustainability of the company itself would be at stake. The relied upon case laws, which have equated CSR only with char

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2018 (9) TMI 295 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – Department was of the view that the credit availed on the above input services is not eligible for the reason that the said input services are not used for providing output services – Scope of SCN – Held that:- In the instant case, what is alleged in the show cause notice is that as per Rule 2(l) of the CENVAT Credit Rules, 2004, input service means ‘any service used for providing output service’. As trading activity undertaken by the appellant is not taxable service, hence the appellant is not eligible to avail credit on the alleged / impugned input service. This being so, the appellants have clearly fallen foul of Rule 3 of the CENVAT Credit Rules, 2004 since that is the particular provision which lays down the types of duties or taxes or cesses suffered on input, input services etc. which alone can be availed as CENVAT credit.
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In the present case, only Rule 3 and Rule 6 has not been invoked. When credi

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ept penalty – appeal allowed in part. – Appeal No. ST/302/2011 – Final Order No. 42328 / 2018 – Dated:- 31-8-2018 – Hon ble Ms. Sulekha Beevi C.S., Member ( Judicial ) And Hon ble Shri Madhu Mohan Damodhar, Member ( Technical ) Shri Raghavan Ramabhadran, Advocate for the Appellant Shri A. Cletus, Addl. Commissioner (AR) for the Respondent ORDER Per Bench The appellants are engaged in providing consulting engineer service, transport of goods by road service, renting of immovable property service and intellectual property right service. During the course of audit, it was noticed that appellant had engaged into contracts for designing, supplying and supervising the erection and commissioning of Recovery Boilers. Such boilers are used for segregating and recycling the chemicals involved in paper pulp. The appellants received consideration for designing, supply and supervising the erection and commission of such boilers. The boilers consist of various components. The appellant get some of t

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VAT credit of service tax paid on input services such as:- (i) Commission paid to agents for procuring the project orders for supply of Recovery boiler (ii) Bank guarantee for advance of supply of materials / components – such advances were reduced proportionately from the invoices of the components and do not relate to rendering of registered taxable services (iii) Clearing and forwarding charges for imported goods (iv) Cargo handling charges (v) Metal testing conducted on the raw materials meant for manufacture of components (vi) Processing of components which does not amount to manufacture (vii) Technical testing and inspecting of components supplied / to be supplied to the paper mills (viii) Cargo contracts (ix) Insurance paid on materials / components lying with sub-contractors (x) Deputation of technical staff to job workers premises to assist / supervise the manufacturing process 2.1 The department was of the view that the credit availed on the above input services is not eligib

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uring the course of trading activity and since trading activity is not a taxable service, the appellants are not eligible to avail credit on the above input services. It also appeared that they are not providing exempted service to claim benefit under Rule 6 of CENVAT Credit Rules, 2004. Therefore, the appellants are not eligible for credit of service tax to the tune of ₹ 76,90,088/- relating to the period April 2007 to March 2008. 2.4 Thus, it was observed that they have contravened the provisions of Rule 3 of CENVAT Credit Rules and had availed ineligible input credit to the tune of ₹ 3,22,07,53/- for the period April 2007 – 2008. 2.5 During the said period, they had utilized credit of ₹ 35,91,928/- towards discharging service tax liability and such utilization resulted in short-payment to the tune of ₹ 35,91,928/-. 2.6 Show cause notice was therefore issued proposing recovery of wrongly availed CENVAT credit of ₹ 3,22,07,534/- and the short-paid duty fo

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certain components to the Recovery Boilers. The appellant procures raw materials for manufacture of such components and sends the same directly to the job worker. The job worker avails input credit of the raw materials supplied. Upon completion of the manufacture of Recovery Boilers, the job workers directly clear these to the customer and raise invoices on the appellant for the job charges and the excise duty component. The appellant has availed input service credit on various input services. The department now disputes the credit availed on input services. The sole ground for disallowing CENVAT credit as alleged in the show cause notice is that the entire credit availed by the appellant is attributable to trading activity and is therefore ineligible in terms of Rule 3 of CENVAT Credit Rules, 2004. He submitted that the department has proceeded on the wrong basis that the activity involved is trading. The ordinary meaning of the word trading as given in The Concise Oxford Dictionary

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ture and supply of recovery boiler and at no point of time, the appellant purchases the boiler as such and sells it to call it a trading activity. That therefore the entire premise on which the department has issued the show cause notice fails and therefore the disallowance of credit on the count that the appellant has used the input services for doing trading activity is without any basis. 3.3 It is also argued by him that trading is an exempted service with effect from 1.4.2011. The Hon ble High Court of Madras in the case of Ruchika Global Interlinks Vs. Commissioner of Central Excise – 2017-VIL-323-MAD-ST has held that trading is an exempted service prior to 1.42011 as well and that therefore Rule 6 is applicable for reversing the proportionate credit availed on trading. In the present case, show cause notice is not issued invoking Rule 6 to deny the credit. Instead department has invoked only Rule 3 of CENVAT Credit Rules, 2004. He submitted that the disputed input services are us

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upon the judgment of the Hon ble Supreme Court in the case of Ramala Shahkari Chini Mills Vs. Commissioner of Central Excise, Meerut – 2016 (334) ELT 3 (SC) to argue that the word includes used in the definition of input service cannot be interpreted in a restrictive manner. 3.4 The ld. counsel relied upon the decision rendered in their own case reported in 2017 (48) STR 261 (Tri. Chennai) wherein on similar set of facts, the input credit disallowed on Chartered Accountancy Service, Courier Agency Service, Manpower Supply Service, Telecom Service, Business Support Service,, Banking and Other Financial Service, Testing and Inspection Service were held to be eligible. 3.5 It is also argued by him that the demand to recover ₹ 35,91,928/- as short-paid duty on the ground that ineligible credit was utilized to pay service tax is a duplication of demand and hence unsustainable. In any case, the appellant has reversed the CENVAT credit of ₹ 3,22,07,534/- without utilization (as th

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and in para 6, the amount of such wrong credit has been proposed to be recovered under Rule 14 of the CENVAT Credit Rules, 2004. He explained that the services viz. commission paid to agents for procuring project order, Bank guarantee for advance, clearing and forwarding charges for goods, cargo handling services, technical testing etc. are services related to procurement of raw materials etc. But the appellant is not registered as a manufacturer and is not paying excise duty on the Recovery Boilers. So the appellant cannot avail credit as a manufacturer. They are registered as output service provider for Consulting Engineer Service. He adverted to the definition of Consulting Engineer and stated that it involves giving technical advice and has nothing to do with procurement of goods. So these input services cannot be said to be used for providing output service of Consulting Engineer Service. Instead, they are purchasing raw materials and selling it to job workers. These activities a

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,91,928/- has been utilized during the period April 2007 to September 2008 towards discharge of service tax liability which has also been sought to be demanded. 6.1 Ld. counsel has been at pains to convince us that these issues pertains to period prior to 1.4.2011 from which date trading was made a deemed exempted service. That nonetheless, even for the period of dispute the trading activity is required to be considered as an exempted service. To support this, he has relied upon the judgment of the Hon ble High Court of Madras in Ruchika Global Interlinks (supra) to contend that the trading activity can be categorized as exempted service even prior to 1.4.2011. From the perusal of the said judgment, we however find that the Hon ble High Court had only addressed the issue of apportionment as provided under Rule 6(3)(c) of the CENVAT Credit Rules, 2004. The Hon ble High Court had therefore found that before and after the amendment of Rule 2(e) of the Rules, exempted services meant those

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t service. This being so, the appellants have clearly fallen foul of Rule 3 of the CENVAT Credit Rules, 2004 since that is the particular provision which lays down the types of duties or taxes or cesses suffered on input, input services etc. which alone can be availed as CENVAT credit. From the facts brought out in the show cause notice, it is evident that the impugned input services listed out in para 3.0 and 4.0 have all been availed in spite of the appellant having been involved in trading activity. Thus, there cannot be any credit that could be availed by the appellant ab initio and hence there is no need to examine the applicability of Rule 6 of the CENVAT Credit Rules, 2004 to their case. In any case, trading activity has been made deemed exempted service only with effect from 1.4.2011 and therefore we are not able to appreciate the argument of the ld. counsel that as per the decision of Hon ble High Court in Ruchika Global (supra) trading is held to be exempted service even prio

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coming from the facts brought out in the order as to whether the input service was used exclusively for trading. There is no discussion in the said order as to disallowance of credit on account of credit availed on trading. On the other hand, the said decision has taken the view that the input services were essential to provide output service of consulting engineer and thus allowed the credit. Hence this case law is also of no help to the appellant. 6.4 In the event, we do not find any infirmity in that portion of the impugned order upholding the demand of wrongly availed credit to the tune of ₹ 3,22,07,534/- along with interest thereon. So ordered. 6.5 Coming to the demand of ₹ 35,91,928/- with interest in respect of alleged wrong utilization of CENVAT credit, since this being only a part of the total credit amount of ₹ 3,22,07,534/-, the demand of which has already been upheld supra, we find that it would cause double jeopardy, hence demand of ₹ 35,91,928/-, a

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GST – States – 34/2018 –State Tax – Dated:- 31-8-2018 – DEPARTMENT OF TRADE AND TAXES (GST-POLICY BRANCH) NOTIFICATION No. 34/2018 -State Tax Delhi, the 31st August, 2018 No.F. 2(92)/Policy-GST/2018/509-18.-In exercise of the powers conferred by section 168 of the Delhi Goods and Services Tax Act, 2017 (03 of 2017) (hereafter in this notification referred to as the said Act) read with sub-rule (5) of rule 61 of the Delhi Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the Commissioner, on the recommendations of the Council, hereby specifies that the return in FORM GSTR-3B of the said rules for each of the months from July, 2018 to March, 2019 shall be furnished electronically through the c

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Clarification regarding applicability of GST on the petroleum gases retained for the manufacture of petrochemical and chemical products – regarding. – GST – States – 15/2018 – Dated:- 31-8-2018 – GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE AND TAXES (POLICY BRANCH) VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110 002 No.F.3 (66)/Policy-GST/2017/ 525-30 Dated: 31/08/2018 CIRCULAR NO. 15/2018-GST (Ref .Circular No. 53/27/2018-GST of Central Tax) Subject: Clarification regarding applicability of GST on the petroleum gases retained for the manufacture of petrochemical and chemical products – regarding. References have been received regarding the applicability of GST oh the petroleum gases retained for the manufacture of petro

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pplied by oil refineries to them on a continuous basis through dedicated pipelines, while, a portion of the raw material is retained by these manufacturers (recipient of supply), and the remaining quantity is returned to the oil refineries. In this regard, an issue has arisen as to whether in this transaction GST would be leviable on the whole quantity of the principal raw materials supplied by the oil refinery or on the net quantity retained by the manufacturers of petrochemical and chemical products. 3. The GST Council in its 28th meeting held on 21.7.2018 discussed this issue and recommended for issuance of a general clarification for petroleum sector that in such transactions, GST will be payable by the refinery on the value of net quan

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GST – States – 16/2018 – Dated:- 31-8-2018 – GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE AND TAXES (POLICY BRANCH) VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110 002 No.F.3 (66)/Policy-GST/2017/ 531-36 Dated: 31/08/2018 CIRCULAR NO. 16/2018-GST (Ref .Circular No. 54/28/2018-GST of Central Tax) Subject: Classification of fertilizers supplied for use in the manufacture of other fertilizers at 5% GST rate- reg. References have been received regarding a clarification as to whether simple fertilizers, such as MOP (Murate of Potash) classified under Chapter 31,and supplied for use in manufacturing of a complex fertilizer, are entitled to the concessional GST rate of 5%, as applicable in general to fertilizers (i.e. fertilize

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der Chapter 31 which are clearly to be used directly as fertilizers or in the manufacture of other fertilizers, whether directly or through the stage of an intermediate product. 3. In the GST regime, tax structure on fertilizers has been prescribed on the lines of pre-GST tax incidence. The wording of the GST notification is similar to the central excise notification except certain changes to meet the requirements of GST. These changes were necessitated as GST is applicable on the supply of goods while central excise duty was applicable on manufacture of goods. Accordingly, fertilizers falling under heading 3102, 3103, 3104 and 3105, other than those which are clearly not to be used as fertilizers, attract 5% GST [S. No. 182A to 182D of the

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GST – States – SRO-GST- 46 (Rate) – Dated:- 31-8-2018 – Government of Jammu and Kashmir Finance Department Civil Secretariat, Srinagar Notification Srinagar, the 31th August, 2018 SRO-GST- 46 (Rate).- In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest to do so, hereby makes the following further amendments in the SRO notification No. SRO-GST-11 dated 08-07-2017; namely: (i) against serial number 7, in column (3),- (a) for ite

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on 1: This entry includes such supply at a canteen, mess, cafeteria or dining space of an institution such as a school, college, hospital, industrial unit, office, by such institution or by any other person based on a contractual arrangement with such institution for such supply, provided that such a supply is not event based or occasional. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] (ia) Supply, of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms. 2.5 Provided that credit

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or item (vi) in column (3) and the entries relating thereto in columns (3), (4) and (5), the following entries shall be substituted, namely: – (3) (4) (5) (vi) Multimodal transportation of goods. Explanation.- (a) multimodal transportation means carriage of goods, by at least two different modes of transport from the place of acceptance of goods to the place of delivery of goods by a multimodal transporter; (b) mode of transport means carriage of goods by road, air, rail, inland waterways or sea; (c) multimodal transporter means a person who,- A. enters into a contract under which he undertakes to perform multimodal transportation against freight, and; B. acts as principal, and not as an agent either of the consignor, or consignee or of the

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GST – States – SRO-GST- 45 (Rate) – Dated:- 31-8-2018 – Government of Jammu and Kashmir Finance Department Civil Secretariat, Srinagar Notification Srinagar, the 31th August, 2018 SRO-GST- 45 (Rate).- In exercise of the powers conferred by sub-section (2) of section 7 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on the recommendations of the Council, hereby makes the following amendments in the SRO notification No. SRO-GST- 14 dated 08-07-

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GST – States – SRO-GST-43 (Rate) – Dated:- 31-8-2018 – Government of Jammu and Kashmir Finance Department Civil Secretariat, Srinagar Notification Srinagar, the 31th August, 2018 SRO-GST-43 (Rate).- In exercise of the powers conferred by sub-section (1) of section 11 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on the recommendations of the Council, hereby makes the following further amendments in the notification SRO No. SRO-GST-2 dated 08-07-2017 issued by Finance Department Government of Jammu and Kashmir, namely:- (i) after S. No. 92 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: – 92 A 1401 Sal leaves, siali leaves, sisal

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ss, including sabai grass rope (v) for S. No. 117 and the entries relating thereto, the following shall be substituted, namely:- 117 48 or 4907 or 71 Rupee notes or coins when sold to Reserve Bank of India or the Government of India ; (vi) after S. No. 132 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: – 132A 53 Coir pith compost other than those put up in unit container and, – (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, subject to the conditions as in the AN

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GST – States – SRO-GST-41 (Rate) – Dated:- 31-8-2018 – Government of Jammu and Kashmir Finance Department Civil Secretariat, Srinagar Notification Srinagar, the 31th August, 2018 SRO-GST-41 (Rate).- In exercise of the powers conferred by sub-section (3) of section 11 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scop

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GST – States – SRO-GST-40 (Rate) – Dated:- 31-8-2018 – Government of Jammu and Kashmir Finance Department Civil Secretariat, Srinagar Notification Srinagar, the 31th August, 2018 SRO-GST-40 (Rate).- In exercise of the powers conferred by sub-section (3) of section 9 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on the recommendations of the Council, hereby makes the following further amendments in the SRO notification No. SRO-GST-13 dated 08-07-2017; namely:- (i) in the Table, after serial number 10 and the entries relating thereto, the following serial number and entries shall be inserted, namely: – (1) (2) (3) (4) 11 Services supplied by individual Direct Selling Agents (DSAs) other

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GST – States – SRO-GST-39 (Rate) – Dated:- 31-8-2018 – Government of Jammu and Kashmir Finance Department Civil Secretariat, Srinagar Notification Srinagar, the 31th August, 2018 SRO-GST-39 (Rate).- In exercise of the powers conferred by sub-section (1) of section 11 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in notification SRO No. SRO-GST-12 dated 08-07-2017; namely:- (i) in the Table, – (a) against serial number 4, in the entry in column (3), the words Central Government, State Government, Union territory, local authority or shall be omitted; (b) against serial number 5, in the entry in column (3), the words Central Government, State Government, Union territory, local authority or shall be omitted; (c) after serial number 9C and the entries relating thereto, the followi

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tariff , the words value of supply shall be substituted; (f) against serial number 19A, in the entry in column (5), for the figures 2018 , the figures 2019 shall be substituted; (g) against serial number 19B, in the entry in column (5), for the figures 2018 , the figures 2019 shall be substituted; (h) after serial number 24 and the entries relating thereto, the following serial number and entries shall be inserted, namely: – (1) (2) (3) (4) (5) 24A Heading 9967 or Heading 9985 Services by way of warehousing of minor forest produce. Nil Nil ; (i) after serial number 31 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: – (1) (2) (3) (4) (5) 31A Heading 9971 or Heading 9991 Services by Coal Mines Provident Fund Organisation to persons governed by the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948). Nil Nil 31B Heading 9971 or Heading 9991 Services by National Pension System (NPS) Trust to its members against

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he entries relating thereto, the following serial number and entries shall be inserted, namely: – (1) (2) (3) (4) (5) 55A Heading 9986 Services by way of artificial insemination of livestock (other than horses). Nil Nil ; (n) after serial number 65A and the entries relating thereto, the following serial number and entries shall be inserted, namely: – (1) (2) (3) (4) (5) 65B Heading 9991 or any other Heading Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the mining lease holders. Explanation.- mining lease holder means a person who has been granted mining lease, quarry lease or license or other mineral concession under the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the rules made thereunder or the rules made by a State Government under sub-section (1) of section 15 of the Mines and Minerals (Development and R

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l be inserted, namely: – (1) (2) (3) (4) (5) 77A Heading 9995 Services provided by an unincorporated body or a non-profit entity registered under any law for the time being in force, engaged in,- (i) activities relating to the welfare of industrial or agricultural labour or farmers; or (ii) promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment, to its own members against consideration in the form of membership fee upto an amount of one thousand rupees (Rs 1000/-) per member per year. Nil Nil ; (ii) in paragraph 3, in the Explanation, after clause (iii), the following clause shall be inserted, namely: – (iv) For removal of doubts, it is clarified that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students. . This notification shall be deemed to

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2018 (8) TMI 1742 – CESTAT DELHI – TMI – Classification of Services – the appellant provides the activities of bringing down the sizes of the mined coal into certain specific sizes – whether the said activity would be classified under Business Auxiliary Services or not? – Held that:- There is no service involved in the facts of the matter – The appellant offering the cut to size coal to its customer, is like offering his coal in various forms and sizes to its customers hence if cutting the coal to various sizes is a service then we feel it is a service to himself and not to the buyer because buyer is being charged on per tonnage basis as per coals forms and sizes – appeal allowed – decided in favor of appellant. – Service Tax Appeals No. 5

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The Department interpreted that such activities provided by the appellant should fall under the taxable category of Business Auxiliary Service‟. Accordingly, after adjudication of the matter, the adjudged demands were confirmed on the appellant. 2. We have heard both sides and perused the record of appeal. 3. We feel that there is no service involved in the facts of the matter. Considering the facts of matter we feel that the appellant offering the cut to size coal to its customer, is like offering his coal in various forms and sizes to its customers hence if cutting the coal to various sizes is a service then we feel it is a service to himself and not to the buyer because buyer is being charged on per tonnage basis as per coals forms

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s auxiliary service as per Section 65 (19) of the Finance Act, 1994. But by the impugned order, the Commissioner dropped the demand. Being aggrieved, the Department has filed the present appeal. 3. With this background, we heard Shri K. Chowdhury and Shri Rajiv Agarwal , Ld. Counsels for the parties. 4. After hearing both the parties it appears that the appellants had paid the sales tax/vat and total amount of sale includes crushing charges as well as other charges e.g. silo loading charges and the same was shown in the profit and loss account. The Honble Supreme Court in the case of Bharat Sanchar Nigam Ltd. Vs. UOI reported in 2006 (2) STR 161 (SC) observed that sales tax and service tax cannot be made applicable on the same transaction a

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2018 (11) TMI 1219 – CESTAT NEW DELHI – TMI – Levy of service tax – Construction Services – Amount received in advance – abatement under N/N. 1/2006/ST dated 1/3/2006 – whether the appellants were required to pay the service tax on the amount received by them from the prospective buyers, In advance? – extended period of limitation – penalty.
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Held that:- No doubt as per section 67 of the Act a person in the case where the provisions of service is for consideration in money, is liable to pay the service tax on gross amount charged by the service provider for the service provided or to be provided by him. But simultaneously there is no denial of fact that the levy in question was imposed for the first time by the amendment to Finance Act 1994 with effect from 1/07/2010 to Section 65(105) (zzzh).
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The Notification No. 136/2010 as impressed upon by the appellant is perused. It becomes clear that vide the said Notification the advance receipt by a builder till 30th June 2010 for

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e, 2012. Vide which the taxable service to the extent of 25 per cent only is made taxable. Hence the appellant is held to be entitled for the abatement at the rate of 75 per cent. The computation at the rate below is an error apparent, as such the same is liable to be re-computed the matter needs to be remanded for this limited purpose.
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Extended period of limitation – Held that:- The appellant was not liable to pay the service tax prior to 1st July 2010 there remains no reason for alleged suppression. Otherwise also to invoke the extended period of limitation heavy burden rests upon the Department to proof some positive Act on account on the assessee other than the mere inaction or failure to discharge the liability – extended period cannot be invoked.
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Penalty – Held that:- The apparent allegation is delay in discharging the liability the allegation as grave as of misinterpretation and suppression are not at all attributable. For the similar reason penalty also will not ord

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records, the Department observed that they are paying service tax on the service amount received at the time of giving possession of the constructed shop/house towards providing services to their clients. The said amount of service tax is calculated on 33 per cent of the sales amount of the property by availing abatement as provided under Notification No. 1/2006/ST dated 1/3/2006. The Department also observed that the appellants were not paying service tax on the amount received by them at the time of the receipt of the amounts resultantently the service tax was not paid on the total amount received toward taxable services provided by the appellant the Department, accordingly served the appellant with Show Cause Notice No. 6900 dated 6/3/2014 proposing the demand of alleged short payment along with the interest at appropriate rate of proportionate penalties the said entire demand was confirmed vide the order under challenge hence the present appeal. 3. We have heard Mr. Sandeep Mukharj

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on the Notification No. 1/2006 dated 1/07/2010 and Notification No. 36/2010 the demand for the said subsequent period is prayed to be quantified at the rate of 75 per cent abatement. Order is accordingly prayed to be set aside. It is also submitted that the extended period of limitation has wrongly been invoked by the department while issuing show cause notices and suppression of fact has also been wrongly alleged, while imposing the penalty as there was no intent to evade the tax initially for the reason that the amount received was not taxable subsequently for the reason that the appellants were entitled for abatement. The order to that extent is also prayed to be set aside. Appeal is prayed to be allowed. 5. Ld. DR while justifying the order has submitted that the Commissioner has duly appreciated Section 67 and Section 68 of the Finance Act while adjudicated the impugned controversy holding that the service tax becomes payable at the time of receipt of consideration even in respect

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ed to pay the service tax on the amount received by them from the prospective buyers, In advance. 8. No doubt as per section 67 of the Act a person in the case where the provisions of service is for consideration in money, is liable to pay the service tax on gross amount charged by the service provider for the service provided or to be provided by him. But simultaneously there is no denial of fact that the levy in question was imposed for the first time by the amendment to Finance Act 1994 with effect from 1/07/2010 to Section 65(105) (zzzh) Act as follows; Explanation.- For the purpose of this sub-clause, construction of a complex which is intended for sale, wholly or partly, by a builder or any person authorised by the builder before, during or after construction(except in cases for which no sum is receive from or on behalf of the prospective buyer by the builder or a person authorised by the builder before the grant for completion certificate by the authority competent to issue such

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a) of the Finance Act taxable under Section 65(105) (zzq). In another recent adjudication by Tribunal Bangaloor in the case of Vinayaka Homes 2016 (43) STR 251 it was held that activity squarely falling under construction of residential complex service is not liable to service tax prior to 1/07/2010 in case of phased payments. 10. The Notification No. 136/2010 as impressed upon by the appellant is perused. It becomes clear that vide the said Notification the advance receipt by a builder till 30th June 2010 for which service was provided by him after 30th June 2010 was not to be taxed thereby qualifying that services of appellant were not taxable prior 1/07/2010. When the explanation as inserted in Section 65(105)(zzzh) is read along with clarification given by CBEC vide letter No. 334/3 TRU dated 1/07/2010, it again becomes amply clear that if agreement is entered into or any payment is received for sale of complex or apartment in residential complex service tax will be leviable on suc

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ted the matter needs to be remanded for this limited purpose. 12. Finally coming to the issue of invoking the extended period of limitation and imposition of penalty on ground of alleged suppression we observe that the department has alleged appellant to have deliberately mis-represented the fact with intent to evade payment of service tax but it is simultaneously apparent fact that the present is not the case of non payment of service tax the allegation is that the service tax is not paid at the time of receipt of the first instalment from the property buyer but at the time of final payment and allotment. The gross value of the taxable service has been self-assessed by the appellant only after receiving the last instalment. We have already opined that he appellant was not liable to pay the service tax prior to 1st July 2010 there remains no reason for alleged suppression. Otherwise also to invoke the extended period of limitation heavy burden rests upon the Department to proof some po

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Goods and Services Tax – Started By: – Jasbir Uppal – Dated:- 30-8-2018 Last Replied Date:- 1-9-2018 – Dear Professionals, The exporter had made export from the manufacturing of goods from the stock left on 30.06.2017 and claimed drawback on higher rate during the month of July 2017 to September 2017. My query is Exporter who have not filed CENVAT returns because his manufacturing was exempt goods and he has not file Trans-1 in which CENVAT portion credit was in his CGST electronic credit ledger. Then how the exporter shall get refund of the CGST and IGST in the compliance with sec 16(3) of CGST Act, 2017 for the goods manufactured from the stock of 30.06.2017 and my goods are on consumption basis. With Warm Regards J S Uppal Advocate – Re

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Now the last date for filing Trans-1 has expired and hence you cannot claim the credit taxes paid on stocks held as on 30.6.2017. Moreover, according to Section 18 (2) of CGST Act, 2017 a registered person shall not be entitled to take input tax credit under sub-section (1) in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply. Therefore the invoices issued by the manufactures of the inputs held in stock by you as on 30.6.2017 would have been issued prior to 30.6.2017. As on date according to Section 18 (2) you will not be eligible to take the credit since all the invoices would have been issued beyond one year from now. Even if you move your j

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Goods and Services Tax – Classification of goods – rate of GST – The PVC floor Mat would fall in the Customs Tariff heading 3918 and applicable rate of GST would be 18% (9% each of CGST and SGST) – th

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2018 (9) TMI 173 – GUJARAT HIGH COURT – [2018] 59 G S.T.R. 329 (Guj) – Rectification application – rejection of rectification application on the ground that the assessee had not raised such a contention before the Tribunal, or even before the lower authorities earlier and any exercise by the Tribunal to entertain such a contention to modify the order would amount to review- a power which the Tribunal does not possess.
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Held that:- In the present case, judgment of the Tribunal was passed on 29th June 2015. The Appeal was filed before the High Court sometime thereafter. Even after the High Court dismissed the appeal on 28th January 2016, it appears from the record that the rectification application was filed nearly six months later. Therefore, only on the question of limitation, rectification application could have been dismissed by the Tribunal; though Tribunal did not advert to this aspect of the matter.
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ite opposition by the assessee, the same were confirmed. The issue travelled to the Tribunal. The Tribunal, by the judgment dated 29th June 2015 rejected the appeal, upon which further appeal was filed before the High Court. Such Tax Appeal came to be disposed of by the judgment dated 28th January 2016. The Court did not find any merits in the contention raised by the learned counsel for assessee on the issues arising in such appeal. It was, however, lastly contended that the assessee should have been granted benefit of reduced penalty as per proviso to Section 78 of the Finance Act, 1994. In this context, the Court made the following observations : 11. Counsel lastly contended that by virtue of proviso to Section 78, if the tax demand is based on records maintained by the assessee, the penalty would be 50% of otherwise imposable. He pointed out that the term specified record used in the said provision has now been defined by including an explanation to Section 78. However, we notice t

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d the second question was-whether the Tribunal was correct in dismissing the application on merits. We are conscious that the first of these two issues were not pressed into service by the Tribunal, nevertheless, we were prima facie of the opinion that the application for rectification filed by the assessee had to satisfy the requirement of the period of limitation prescribed. Learned advocate Shri Dhaval Shah for the assessee submitted that in the Finance Act, 1994 where the appeal provisions in connection with the service tax are contained, provide for no period of limitation for filing an application for rectification. He drew our attention to Section 86 of the Finance Act, 1994. We, however, notice that Section 86 itself does not contain any provision giving power to the Tribunal to rectify its own orders. Sub-section [6A] of Section 86 merely prescribes a fee to be paid for making such an application. This cannot be seen as a source of power for rectification. Subsection [7] of Se

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Thus, the power of the Tribunal while disposing of appeals in terms of Section 86 of the Finance Act, 1994 would also contain power of rectification. The source of such power can be traced to Section 35C of the Central Excise Act, 1944 which would be coupled with the prescription of period of limitation provided therein. Learned advocate Shri Shah, however, submitted that such time limit is not rigid and on sufficient cause being shown, can be extended. Reliance was placed on a decision of the Supreme Court in case of Sunitadevi Singhania Hospital Trust & Anr. vs. Union of India & Ors., reported in [2008] 16 SCC 365. In the said case, while observing that powers of rectification could be exercised beyond six months, it was further observed that the same cannot be done beyond reasonable period. In the said case, the Court was also influenced by the fact that the party was pursuing remedy bona fide before another Court. In the present case, judgment of the Tribunal was passed on

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2018 (9) TMI 610 – GUJARAT HIGH COURT – 2018 (17) G. S. T. L. 370 (Guj.) – Constitutional validity of section 47 of the Central Goods and Service Tax Act, 2017 – Penalty – principal contentions of the petitioners are that the Government is trying to recover penalty in the guise of late fee charges – Held that:- The petitioners who are themselves active tax consultants and tax practitioners have challenged the vires of section 47 of CGST Act. They are obviously indirectly concerned with the same.
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There are millions of dealers who would be adversely affected by the provisions made therein. There is no reason why such an issue should be examined in a public interest petition when, the group of persons whom the statute affects does not suffer from any handicap preventing them from taking up the litigation themselves and pursuing it.
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Petition dismissed. – R/WRIT PETITION (PIL) NO. 161 of 2018 Dated:- 30-8-2018 – MR. AKIL KURESHI AND MR.B.N. KARIA JJ. Appearance: MR. RAJ S TANN

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) of section 47 further provides that any registered person who fails to furnish the return as required under section 44 by the due date would be liable to pay a late fee of one hundred rupees for every day of delay subject to a maximum of an amount calculated at a quarter per cent of his turnover. Principal contentions of the petitioners are that the Government is trying to recover penalty in the guise of late fee charges. As a result, the dealers losing their valuable right of appeals as well as right to point out that there was sufficient cause preventing them from filing the return within the due date. It was argued before us that in all previous laws which have been repealed by the statutes enacted under the new GST regime, such charges were categorized as penal in nature. Various practical difficulties in filing the returns including such as malfunctioning of the official portal which often times, prevents uploading of the returns were cited. 2. We are not inclined to entertain t

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. Nevertheless, even after such expansion, public interest is confined to environmental issues, the issues of public accountability and such like. The reference in this respect can be made to the decision of Supreme Court in case of State of Uttaranchal vs. Balwant Singh Chaufal and ors reported in (2013) 3 SCC 402. 3. In the present petition, the petitioners who are themselves active tax consultants and tax practitioners have challenged the vires of section 47 of CGST Act. They are obviously indirectly concerned with the same. As noted, they pointed out that there are millions of dealers who would be adversely affected by the provisions made therein. There is no reason why such an issue should be examined in a public interest petition when, as noted above, the group of persons whom the statute affects does not suffer from any handicap preventing them from taking up the litigation themselves and pursuing it. 4. Petition is dismissed. – Case laws – Decisions – Judgements – Orders – Ta

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2018 (9) TMI 1258 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (17) G. S. T. L. 151 (A. A. R. – GST) – Levy of GST – service by the commission agents to the agriculturists for their sale or purchase of their produce not involving the agents – Whether service by the commission agents to the agriculturists for their sale or purchase of their produce not involving the agents as either a recipient of goods or as a supplier of goods are liable to tax or not?
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Held that:- It is clear that the agent, who is a member of the applicant stores the turmeric in their godown, the sales of which is as per the guidelines of EMC. Also from the invoices furnished, it is seen that the invoice is raised by the agent on the buyer wherein the agriculturist is mentioned as the seller and is signed by the Farmer, agent and the buyer. Further, it is seen that the buyer pays the agent who after deducting his commission for the services rendered passes on the sale proceeds to the farmer. It is evident

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Ruling:- The service by the Commission Agents as per the submissions of the applicant to the agriculturists of turmeric is service under the Heading 9986 and is taxed to 'NIL' rate of CGST as per Sl.No. 24 (i) (i) (g) of the Notification No. 11/2017-CT (Rate) dated 28.06.2017 as amended and 'NIL' rate of SGST as per Sl.No. 24 (i) (i) (g) of G.O.(Ms) No 72 dated 29.06.2017 No. II(2)/CTR/532(d-14)/2017 as amended. – TN/06/AAR/2018 Dated:- 30-8-2018 – MS. MANASA GANGOTRI KATA AND THIRU S. VIJAYAKUMAR, 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 ce

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have stated that they are registered Sangam with 357 members under the Tamilnadu Societies Registration Act 1975. Their activities as agents and Service are regulated and permitted by the Erode Marketing Committee (hereinafter referred as EMC) Erode. The members permitted by EMC as agents own their godowns where the agriculturists produce are kept, stored in safe custody. A tender is conducted at the premises/ yard of the EMC. The tender is concluded when the selling price is agreed by the agriculturists. Thereafter the buyer raise a bill on the basis of weighment receipt in favour of the agriculturists with full details. An agreement among and between agriculturists, agents and buyer is executed for payment. The buyer issues a cheque for the sale of the agricultural produce to the agents as per the agreement. On realization, the agent takes his commission for service rendered, balance being returned to agriculturist. They have stated that the agent is neither a seller nor a buyer but

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y 5, 1989 with reference to Sec 2(7) and Section 8(1) (C) on the license granted by the Marketing Committee. 4. On scrutiny of the various submissions of the applicant, it is seen that the applicant is society registered under Tamilnadu Societies Registration Act 1975 whose members are governed by Erode marketing Committee which an Agricultural is marketing committee licensed under Tamilnadu Agricultural Produce Marketing (Regulation) Act 1987. Section 2(7) of 'The Tamilnadu Agricultural Produce Marketing (Regulation) Act 1987, defines 'Commission agent' in respect of agricultural produce marketing as follows: 2. (7). Commission Agent means a person who by himself or through his servants, buys and sells agricultural produce for another person keeps it to his custody and controls it during the process its purchase and sale, and collects payment therefore from the buyer and pays it to the seller, and receives by way of remuneration a commission or percentage upon the amount i

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14) of Erode Marketing Committee, a maximum commission of ₹ 5 per 100 rupees worth is prescribed for turmeric in all forms. Sub clause 24(15) states In the case of commission sales, no allowance other than a trade allowance separately prescribed shall be charged either to seller or to buyer. If commission is charged to both buyer and seller, the total thereof shall not exceed the maximum prescribed in sub -clause (14). The applicant submitted the criteria for the Commission Charges subject to the Bye-Laws 24(14) are as follows: Sl. No. Month Commission Amount 1. Up to 12 Months 3% 2. Up to 24 Months 4% 3. Above 24 Months 5% Also from the agreement note between agriculturist, buyer and agent, weighment slip and invoices furnished, it is seen that the invoice is raised by the agent on the buyer wherein the agriculturist is mentioned as the seller and is signed by the Farmer, agent and the buyer. All the three documents mention the weight of the goods and the sale price and separate

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ellip;……….., (b). (c) ……………….., (d). (e) ……………….., (g) Services by an Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce NIL Explanation 4 (vii) and (viii) of the Notification No. 11/2017-CT (Rate) states that: (vii) agricultural produce means any produce out of cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products, on which either no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market. (viii) Agricultural Produce Marketing Committee or Board means any committee or board constituted under a State law for the time being in force of the purpose of regulating

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the definition of 'Commission agent' under 'The Tamil Nadu Agricultural Produce Marketing (Regulation) Act, 1987'. Section 7(8) of this Act also states that trading in agricultural produce must take place on in notified areas which are licensed from a Market Committee under that Act. These Commission agents provide the space for storage, weighment and facilitate buying and selling of the produce. The word 'Commission agent' under SI.No. 24 of the Notification No. 11/2017-CT (Rate) is not specifically defined in the said notification but Section 2(5) of the CGST Act defines 'agent' as a person, including commission Agent who carries on the business of supply or receipt of goods or services or both on behalf of another. From the supporting documents and materials filed by the applicant and the various statutory provisions discussed above, it is clear that the activities of the applicant are those services provided by an agent to the farmer, generally prov

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GST – States – F.A-3-28-2018-1-V-(76) – Dated:- 30-8-2018 – Commercial Tax Department Mantralaya, Vallabh Bhawan, Bhopal Bhopal, the 30th August 2018 No. F.A-3-28-2018-1-V-(76).- In exercise of the powers conferred by Section 168 of the Madhya Pradesh Goods and Services Tax Act, 2017 (No. 19 of 2017) (hereafter in this notification referred to as the said Act) read with sub-rule (5) of rule 61 of the Madhya Pradesh Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules). the Commissioner, on the recommendations of the Council, hereby specifies that the return in FORM GSTR-3B of the said rules for each of the months from July, 2018 to March, 2019 shall be furnished electronically through the common

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2018 (9) TMI 1335 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (17) G. S. T. L. 171 (A. A. R. – GST) – Catering Service – Applicant is engaged in supplying food and beverages at the canteen of their customers – Whether the supply of the applicant falls under 7(i) of Notification No. 11/2017 dated 28.06.2017 or under 7(v) of the said Notification? – Applicability of Notification No. 46/2017-C.T. (Rate) dated 14th November 2017.
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Held that:- From the contracts furnished, it is seen that the Applicant supplies the food in the place of business of the Service Recipient. The charges are received from the companies monthly basis on the coupons collected. In short, it is deciphered that the Applicant is vested with management of the canteen facilities. The Applicant himself does not get paid for by the consumers of the food and beverages. The Recipient of the services are the companies who enter into contract with the applicant. Supply of food is classified under 9963.
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It is

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11/2017 -C.T. (Rate) dated 28.06.2017 and 9% SGST under Sl.No. 7(v) of G.O.(Ms) No 72 dated 29.06.2017 No. II(2)/CTR/532(d-14)/2017 for the period upto 26.07.2018 and from 27.07.2018 onwards at the rate of 2.5% CGST under SI.No. 7(i) of the Notification No. 11/2017-C.T. (Rate) as amended and at the rate of 2.5% SGST under SI.No. 7(i) of G.O.(Ms) No 72 dated 29.06.2017 No.II(2)/CTR/532(d-14)/2017 as amended subject to the condition that credit of input tax charged on goods and services used in supplying the services are has not been taken read with Explanation (iv) of said Notifications. – TN/09/AAR/2018 Dated:- 30-8-2018 – MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, 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,

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cant has stated to render catering services to various companies. They prepare food in their place and supply to the employees of their clients/companies. The said companies provide them the rent free space to distribute the food to the employees of the companies. They purchase materials and use their own manpower in cooking and distributing food. The applicant has submitted that, on interpretation of Notification 11/2017CT(R) dated 28/06/2017 as amended, they assume that GST for the catering services rendered by them is 5%. 3. The Authorised Representative of the Applicant was personally heard in the matter on 08.05.2018. In the first hearing, the Applicant submitted, that they enter into contracts with companies on whose rent free premises where food is supplied, no payment is taken from employees of the company. They submitted that it is a catering service and eligible for SI.No. 7(i) of Notification No. 11/17 as amended. In the subsequent hearing, the applicant submitted a copy of

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the Management using the Applicant's manpower. This will be served to the employees, by collecting coupons on behalf of the client. Based on the coupons collected, the Applicant will give a bill and payment will be made by the company to the Applicant on monthly basis. 5. The Advance Ruling is sought on the applicability of Notification No. 46/2017-C.T. (Rate) dated 14th November 2017 to the case at hand. In the case at hand, the Applicant is engaged in supplying food and beverages at the canteen of their customers. From the contracts furnished, it is seen that the Applicant supplies the food in the place of business of the Service Recipient. The charges are received from the companies monthly basis on the coupons collected. In short, it is deciphered that the Applicant is vested with management of the canteen facilities. The Applicant himself does not get paid for by the consumers of the food and beverages. The Recipient of the services are the companies who enter into contract w

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ever name called to serve alcoholic liquor for human consumption. 6 – (v) Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering and such supply or service is for cash deferred payment or other valuable consideration. 9 – The tax rates under Sl.No. 7 came under Scrutiny and the same was taken up by the council for consideration. Tax Structure of different categories of Restaurants, with a view to their possible rationalization / reduction was mandated to be examined. The same was examined at the 23rd Meeting of the GST Council held on 10th November 2017. The council discussed the various aspects involved in respect of the rate of tax on the supply is reproduced below: 65.28. The Hon'ble Chairperson proposed a tax rate of 18% with input tax credit on the outdoor catering

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e food, etc. was bought by the customer. Advisor, Finance, Punjab also supported this suggestion. He stated that several people only did catering business and theoretically, they could claim that they had set up a restaurant to cater to a function at a venue. He suggested that rate of tax for outdoor catering where only food was being provided should be kept at 5%. The Hon'ble Chairperson observed that low rate of tax for one sector would lead to demand for lowering tax for other services sector also. The Hon'ble Minister from Uttar Pradesh proposed to keep a uniform tax rate of 12% without input tax credit as it would be bad optics to charge tax at the rate of 18% on outdoor catering and 5% on restaurant. The Secretary stated that this proposal would not be acceptable to the trade. The Hon'ble Minister from Assam did not support this proposal and stated that this would lead to increase in prices. 65.29. Keeping in view the discussion as above, the Council agreed to apply t

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luable consideration, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. Explanation.- declared tariff includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)]. ; And no amendment was made in Sl.No 7(v) of Notifi

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ions and decisions also clearly differentiate a restaurant/ canteen / mess run independently and the services extended by the applicant which tall under the category' of outdoor catering. The very likely scenario of 'Outdoor Caterer' trying to call himself as a 'restaurant' has been discussed and the decision to lower the tax rate only to restaurants has been taken by the council. Therefore, the supply of food by the applicant in the premises of client, whether prepared in that place or brought and served is more appropriately covered by the description at Sl.No. 7(v) of the Notification No. 11/2017 -C.T. (Rate) dated 28.06.2017 and is liable to tax at 9% CGST and 9% SGST. 5.3 GST Council in the 27th Council Meeting held on 4th May 2018, discussed and on 21.07.2018, the following decision as given in the press note was taken and the same is reiterated below: 18. Rationalize entry relating to composite supply of food and drinks in restaurant, mess, canteen, eating jo

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e located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent. Explanation 1.- This item includes such supply at a canteen, mess, cafeteria or dining space of an institution such as a school, college, hospital, industrial unit, office, by such institution or by any other person based on a contractual arrangement with such institution for such supply, provided that such supply is not event based or occasional. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] From the above, it is clear that the instant case of the applicant is making supply of services in the dining space of the industrial units and offices which is squarely covered in the Explanation 1 to Sl.No 7(i) and SI

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2018 (9) TMI 1336 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (17) G. S. T. L. 146 (A. A. R. – GST) – Classification of goods – Exemption under GST Act – Cattle Feed in Cake form – Whether the product is classifiable under Ch. 2305 or under Ch. 2309?
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Held that:- The product is not merely groundnut oil cake/residue but is manufactured by combining groundnut oil cake with broken rice, jaggery, salt and water and leaving the mixture for condensing itself into solid form and finally steamed. Further, the applicant states that the product is meant for domestic animals or birds as an essential raise for the maintenance of life, but also that feed which is supplied over and above the maintenance requirements for growth or fattening and for production purposes such as re-production, for production of milk, eggs, meat, wool or feathers and in the case of animals, also for efficient output of work.
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The product in hand, the 'Cattle feed' is manufactured using 'Groundnut oil cak

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Heading 23099010 and stands exempted as per vide Sl.No. 102 of Notification No. 2/2017-Central Tax(Rate) dated 28th June 2017 as amended and Sl.No. 102 of Notification. No.II(2)/CTR/532(d-5)/2017 dated 29th June 2017 as amended and in case of interstate supplies vide Sl.No.102 of Notification No. 2/2017-lntegrated Tax(Rate) dated 28th June 2017 as amended. – TN/08/AAR/2018 Dated:- 30-8-2018 – MS. MANASA GANGOTRI KATA S. VIJAYAKUMAR, 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

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ients including husked rice with broken rice, black & broken rice, jaggery, salt and water. It is stated that the cattle feed which is being sold is meant for domestic animals as an essential raise for the maintenance of life, but also that feed which is supplied over and above the maintenance requirements for growth or fattening and for production purposes such as re-production, for production of milk meat and wool and in the case of animals, also for efficient output of work. The Applicants have produced the certificates of analysts of the product manufactured by them which is sold as cattle feed Cake Form, duly issued by the Department of Animal Institution, Veterinary College and Research Institute, Orathanadu, Thanjavur, both in respect of cattle feed Cake Form and groundnut oil cake. Additionally, a test report from the CSIR – Central Food Technological Research Institute, Mysore was also procured by the Applicant. The applicant has stated that there is a considerable differe

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Act, as per Section 11 of the Central Goods and Services Tax Act, 2017, cattle feed is classified under Chapter Heading/sub-heading/Tariff Item – 2309 which is exempted for intrastate supplies of goods as under Schedule vide Notification No. 2 of 2017 in Serial No. 102. 3. The Authorized Representative of the Applicant was heard in the matter. They submitted that the raw material is groundnut oil cake and submitted invoice, test reports of both raw material and output / cattle feed and manufacturing process flowchart. They also provided video clipping of manufacturing process and costing details of the product. 4. The details and documents furnished were examined. From the various submissions of the applicant, it is seen that the product under consideration, 'Cattle Feed in Cake Form' is manufactured by pulverizing Groundnut oil cake, husked rice with broken and black broken rice pulverized separately, which are spread over and then jaggery, salt & water are added, mixed,

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product. 5. The issue before us is to determine the classification of – Cattle Feed in Cake form and as to whether the same is exempted. To be precise, the question to be answered is whether the product is classifiable under Ch. 2305 or under Ch. 2309. 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, subheading, 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. As per Harmonised System of Nomenclature Explanatory Notes 2017, the chapter notes for Chapter 23 and specifically heading 2305 and 2309 has been examined. The relevant extracts of the above are as u

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e the General Explanatory Note to this Chapter). This heading also includes non-textured defatted soya-bean flour fit for human consumption. This heading excludes : (a) Oil dregs (heading 15.22) (b) Protein concentrates obtained by the elimination of certain constituents of defatted soya-bean flour (used as additives in food preparations) and textured soya-bean flour (heading 21.06), 23.09 Preparations of a kind used in animal feeding. 2309.10 Dog or cat food, put up for retail sale 2309.90 Other This heading covers sweetened forage and prepared animal feeding stuffs consisting of a mixture of several nutrients designed: (1) to provide the animal with a rational and balanced daily diet (complete feed); (2) to achieve a suitable daily diet by supplementing the basic farm-produced feed with organic or inorganic substances (supplementary feed); or (3) for use in making complete or supplementary feeds, The heading includes products of a kind used in animal feeding, obtained by processing v

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or this purpose are seeds of leguminous vegetables, brewing dregs oil-cake, dairy by-products. The minerals serve mainly for building up bones and, in the case of poultry, making egg-shells. The most commonly used contain phosphorus, chlorine, sodium, potassium, iron iodine, etc. (C) PREPARATIONS FOR USE IN MAKING THE COMPLETE FEEDS OR SUPPLEMENTARY FEEDS DESCRIBED IN (A) AND (B) ABOVE These preparations, known in trade as premixes , are, generally speaking, compound compositions consisting of a number of substances (sometimes called additives) the nature and proportions of which vary according to the animal production required. These substances are of three types: (1) Those which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguard its health : vitamins or provitamins, amino-acids, antibiotics, coccidiostats, trace elements, emulsifiers, flavourings and appetisers, etc. (2) Those designed to preserve the feeding stuffs (particularly t

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kind used in animal feeding, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material. From the submissions of the applicant, it is seen that the product is not merely groundnut oil cake/residue but is manufactured by combining groundnut oil cake with broken rice, jaggery, salt and water and leaving the mixture for condensing itself into solid form and finally steamed. Further, the applicant states that the product is meant for domestic animals or birds as an essential raise for the maintenance of life, but also that feed which is supplied over and above the maintenance requirements for growth or fattening and for production purposes such as re-production, for production of milk, eggs, meat, wool or feathers and in the case of animals, also for efficient output of work. The product in hand, the 'Cattle feed' is manufactured using 'Groundnut oil cake' as a raw material along with oth

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2018 (9) TMI 1337 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (17) G. S. T. L. 168 (A. A. R. – GST) – Classification of goods – Disc Brake Pads – What is the appropriate classification of ‘Disc Brake Pads’ under GST?
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Whether ‘Disc Brake Pads’ supplied by the Applicant is covered under Sl.No. 170 of Schedule IV of N/N. 1/2017 dated 28.06.2017- Integrated Tax (Rate), i.e., under Tariff Heading 8708 attracting GST at 28% or under Sl.No.182 B of Schedule III of the Rate Notification i.e., under Tariff Heading 6813 attracting GST Rate of 18%?
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Held that:- Friction Material in the form of discs or pads or any other form consisting of mineral materials with or without textiles are classifiable under CTH 6813 if they are not mounted. But when they are mounted including friction material fixed to a metal plate provided with circular cavities, perforated tongues or similar fittings for disc brakes, these are classified as parts of the machines or vehicles for which they are des

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28.06.2017 and Sl.No. 170 of Schedule IV of G.O. (Ms) No. 62 dated 29.06.2017 No. II(2)/CTR/532(d-4)/2017 attracting 14% CGST/14% SGST respectively. – AAR TN No.7/AAR/2018 Dated:- 30-8-2018 – MS. MANASA GANGOTRI KATA AND S. VIJAYAKUMAR, MEMBER Note : Any appeal against the advance ruling order shall be filed before the Tamilnadu 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 provisions under the Tamil Nadu Goods and Service Tax Act. M/s. Brakes India Pr

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/2017 dated 28.06.2017- Integrated Tax (Rate) (hereinafter referred to as the GST Tariff Notification), i.e., under Tariff Heading 8708 attracting GST at 28% or under Sl.No.182 B of Schedule III of the Rate Notification i.e., under Tariff Heading 6813 attracting GST Rate of 18%? 2. M/s. Brakes India Private Limited has stated that Disc Brake Pads are commonly used in the brake assembly of motor vehicles also known as caliper brakes, to cause friction, which would assist the vehicle to slow down or stop. Disc Brake Pads contain two elements, i.e., one, the Disc Pad which is made of friction materials and the backing plate made of steel which is coated with an adhesive. These two elements when brought together, form what is referred to as the Disc Brake Pads . The two-main processes that the Disc pads (friction material) and the backing plate undergo are the process of using adhesives to bond the friction material to the backing plate and the process of molding, where the Disc Pads are p

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of classification of Disc Brake Pads and applicable rate of tax under GST based on the application received from M/S. Indo German Brakes Private Limited. In the written submission, the applicant has stated that the product is not classifiable under CTH 6813 as HSN Explanatory Notes to CTH 6813 specifically excludes Mounted Brake Linings. The applicant further stated that they are rightly classifiable under CTH 8708 at 28% under Sl. No 170 of Notification 1/2017 dated 28.06.2017- Integrated Tax (Rate) as amended dated 28.06.2017. 4. On examination of the documents submitted, it is seen that the product in question is an assembly consisting of friction material and a steel back plate. The friction material comprises of organic fibers, binding material, steel wool powder, synthetic/natural graphite, fillers etc. Its purpose is to provide the necessary frictional force when in contact with the disc while brake is applied. The steel back plate is used to fasten or bond the friction materia

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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. 5.2. Chapter Heading 6813 states: Friction material and articles thereof (for example, sheets, rolls, strips, segments, discs, washers, pads), not mounted, fir brakes, for clutches or the like, with a basis of asbestos, of other mineral substances or of cellulose, whether or not combined with textiles or other materials HSN Explanatory Notes to Heading 6813 provides for specific exclusions as under: The Heading excludes: (a) Friction materials not containing mineral materials or cellulose fibre (e.g., those of cork); these are generally classified according to the constituent material. (b) Mounted brake linings (including friction material

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parts of the machines or vehicles for which they are designed. In the present case, the product consists of a friction material (made up of organic fibers and minerals, graphite) which is bonded with a steel backing plate forming an integrated component. Heading 6813 specifically excludes such mounted brake linings which are rightly classifiable as parts of vehicles for which they are designed. It is used in automotive vehicle brakes to stop or slow down the vehicle. Parts of the motor vehicles of heading 8701 to 8705 are classifiable under Heading 8708. Explanatory Notes to CTH 8708 also covers Brakes (shoe, segment, disc, etc.) and parts thereof (plates , drums, cylinders, mounted linings, oil reservoirs fir hydraulic brakes, etc). Thus the product to be classified Disk brake Pads , a part of the motor vehicle, classifiable under Heading 87083000 as Brakes and servo-brakes; parts thereof . The product attracts 14% CGST covered under Sl.No. 170 of Schedule IV of Notification No. 01/2

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