Author: admin_gst

2018 (9) TMI 388 – CESTAT CHANDIGARH – TMI – Refund Claim – whether the appellant have locus standi to file refund claim or not? – service tax deducted and deposited by the Housing Board on behalf of the appellant (service provider) – Held that:- This issue is already settled by the judgment of the Hon’ble Supreme Court in the case of Oswal Chemicals & Fertilizers Ltd. [2015 (4) TMI 352 – SUPREME COURT], where it was held that the appellant who had paid the excise duty to the manufacturer, viz., M/s. Indian Oil Corporation Ltd. and BPCL in the instant case, had the necessary locus standi to file the application claiming the refund of the duty – It was further held in the case that Explanation (B) defines “relevant date”. Though this date has reference to the calculation of limitation period for the purposes of seeking refund of the duty under the aforesaid provision. However, clause (e) while stating the “relevant date” clarifies that in case of a person, other than the manufacturer,

= = = = = = = =

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

= = = = = = = =

e dt.30.1.2018 issued in favor of the appellant issued by the Housing Board Haryana and to pass a fresh order in accordance with law – appeal allowed by way of remand. – Appeal No. ST/60725/2018-ST – Final Order No. 62857/2018 – Dated:- 24-8-2018 – Hon ble Mr.Devender Singh, Member ( Technical ) For the Appellant : Shri Vikash Bansal, CA For the Respondent : Shri G.M.Sharma, AR ORDER Per : Devender Singh The facts of the case are that the appellant were awarded three works contracts by Housing Board, Haryana (HBH) for construction of flats for BPL category in Housing Board Colony, at different locations. The HBH deducted service tax @ 2.472 % (50% of the applicable rate) approximately amounting to ₹ 87.36 Lacs from running bills of the appellants on the amount of gross work executed by them after 01.07.2012. Aggrieved by the action of HBH, the appellants filed writ petition vide CWP No.12304 of 2015 before Hon ble Punjab & Haryana High Court where the High Court vide Order da

= = = = = = = =

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

= = = = = = = =

und/B.B.Gupta/72/PKL/16-17/1181 dated 18.05.2017 returned the refund application along with supporting documents stating as under:- Since M/s. Bharat Bhushan Gupta & Company is not registered with this office and no record/details of the party is available with this office, therefore, this office is unable to process the refund claim. Secondly, you are also not a service receiver in respect of any services provided by any of the assessees in this jurisdiction. So, in any view provisions of Section 11B of Central Excise Act, 1944, as made applicable to Service Tax, you are not eligible for refund from this office. 2. Aggrieved from the letter dt.18.05.2017 issued by Assistant Commissioner, Central Excise Division, Panchkula, the appellant filed the appeal before the Commissioner (Appeals). However, their appeal was rejected on the ground that the appellant had no locus standi to file refund claim as service tax has been paid by the Housing Board Haryana. Second ground of rejection w

= = = = = = = =

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

= = = = = = = =

and Haryana in the case of Bharat Bhushan Gupta & Co. vs. State of Haryana and others in its judgment dt.11.8.2018 held that no service tax was leviable on reverse charge basis by the Housing Board Haryana and direction of Housing Board in deducting part of Service Tax was declared to be illegal. He submits that as the service tax has been deducted illegally by the Housing Board Haryana and deposited with the Service Tax Department, they were eligible to file refund claim. In this regard, he relied on the judgment of the Hon ble Supreme Court in the case of Oswal Chemicals & Fertilizers Ltd. in its judgment dt.30.3.2015 in Civil Appeal No.2807 of 2004. He also submits that the Housing Board Haryana had issued disclaimer certificate dt.30.1.2018 in which the Housing Board Haryana has given its no objection to refund of service tax to the appellant and has stated that Housing Board will not make any claim for this amount at any time. Ld. CA submits that based on disclaimer certif

= = = = = = = =

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

= = = = = = = =

in the Hon ble Supreme Court has held as below:- 5.Insofar as dismissing the application on the ground that the appellant did not have locus standi, we find that view taken by the authorities below is clearly erroneous in law. Section 11B of the Act which contains the provision for making a claim for refund of duty uses the expression any person who is eligible to claim refund of the duty. The relevant portion of Section 11B reads as under : Section 11B. Claim for refund of duty. – (1) Any person claiming refund of any duty of excise may make an application for refund of such duty to the Assistant Commissioner of Central Excise before the expiry of six months from the relevant date in such form and manner as may be prescribed and the application shall be accompanied by such documentary or other evidence (including the documents referred to in Section 12A) as the applicant may furnish to establish that the amount of duty of excise in relation to which such refund is claimed was collecte

= = = = = = = =

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

= = = = = = = =

the reading of clause (e) to Explanation (B) appended to the aforesaid provision which is as under : Explanation. – For the purposes of this section, – …………………………. ………………………. (B) relevant date means, – …………………………………. …………………………………. in the case of a person, other than the manufacturer, the (e) date of purchase of the goods by such person; ……………………………………. 7.Explanation (B) defines relevant date . Though this date has reference to the calculation of limitation period for the purposes of seeking refund of the duty under the aforesaid provision. However, clause (e) while stating the relevant date clarifie

= = = = = = = =

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

= = = = = = = =

he manufacturer, viz., M/s. Indian Oil Corporation Ltd. (hereinafter referred to as 'IOCL') and BPCL in the instant case, had the necessary locus standi to file the application claiming the refund of the duty." 7. In view of the above judgment of Hon ble Supreme Court, I hold that the appellant have locus standi to file refund claim in this case. I also find that the department has entertained the refund claim of another similarly placed contractor, as is evident from the Order-in-Appeal No.Appl/PKL/ST/32/2017-18 dt.22.2.2018 of the Commissioner (Appeals) in the case of Satish Kumar Gupta, Contractor. Hence, the rejection of plea of appellant on this ground by Commissioner (Appeals) is untenable. 8. The second issue pertains to merits of the case where HBH has given the disclaimer certificate. I find that the appellant have placed on record disclaimer certificate dt.30.1.2018 from the Housing Board Haryana in respect of their claim. The order of the Commissioner (Appeals)

= = = = = = = =

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

= = = = = = = =

2018 (10) TMI 406 – DELHI HIGH COURT – TMI – Extended period of limitation – Section 73(1) of the Finance Act, 1994 – assessment of Service Tax – Business Auxiliary Services – Held that:- The CESTAT was influenced, as is apparent from the reading of the order, by the prevailing confusion between the nature and content of the two taxable incidents i.e. the definition between “business auxiliary services”, which insisted from 2003 and “business support services”, which was a fresh levy introduced w.e.f. 01.05.2006. Concededly, the assessee was filing his assessment returns after 01.05.2006 when business support service was introduced.
–
The mere advertence to the possibility of service tax – without any material or evidence – or even a finding that such service tax had been collected by the assessee during the past, cannot per se amount to a conclusion that it had practiced fraud or misrepresentation – invocation of extended period not justified.
–
Appeal dismissed – decided aga

= = = = = = = =

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

= = = = = = = =

luded the kind of service that the assessee has provided, i.e. marketing of car loans and other retail finance products viz. two-wheelers, personal loans, etc. The assessee resisted the notice including the invocation of the extended period. After adjudication, the Order-in-Original (by the concerned Commissioner), confirmed the demand for the period 01.07.2003 to pare down the quantification of demand; interest towards levy. The Commissioner was of the opinion that in the overall circumstances of the case, invocation of the extended period was proper and appropriate. In doing so, he was influenced in large measure, by the conditions of the agreement which the assessee entered into with its service recipients; that had adverted to levy of tax @ 5%. The CESTAT, to whom the assessee approached, confirmed the Commissioner s order to the extent of levy of demand. However, invocation of the extended period was set aside. The levy was confirmed to the extent that the assessee had filed retur

= = = = = = = =

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

= = = = = = = =

en the nature and content of the two taxable incidents i.e. the definition between business auxiliary services , which insisted from 2003 and business support services , which was a fresh levy introduced w.e.f. 01.05.2006. Concededly, the assessee was filing his assessment returns after 01.05.2006 when business support service was introduced. In these circumstances, the mere advertence to the possibility of service tax – without any material or evidence – or even a finding that such service tax had been collected by the assessee during the past, cannot per se amount to a conclusion that it had practiced fraud or misrepresentation. It has been repeatedly emphasized by the Supreme Court in Uniworth Textiles Ltd. v. Commissioner of Central Excise, 2012 (9) SCC 753, Pushpam Pharmaceuticals Co. v. Commissioner of CE, 1995 Supp. (3) SCC 462, and Commissioner of Central Excise Chemiphar Drugs, 1989 (2) SCC 12 that mere omission to fulfil one s tax liability cannot automatically lead the autho

= = = = = = = =

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

= = = = = = = =

2018 (10) TMI 1245 – AUTHORITY FOR ADVANCE RULING – BIHAR – 2018 (17) G. S. T. L. 480 (A. A. R. – GST) – Levy of GST – Rate of tax – civil works contract for construction of roads, factory godown etc, for M/s. Madhepura Electric locomotive private limited, Madhepura (MEL) – exemption under N/N. 20/2017.
–
Held that:- M/s. Madhepura Electric locomotive private limited, Madhepura (MEL) is a Joint Venture company, which is formed as a Special Purpose Vehicle (SPV) – Electric Locomotives will be manufactured by Madhepura Electric locomotive private limited, Madhepura, which will be suppled to Indian Railways against Valuable Consideration – also, the locomotives would be maintained by this company.
–
The works contract are given by MEL

= = = = = = = =

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

= = = = = = = =

engers or goods, and includes – (a) All lands within the fences or their boundary marks indicating the limits of the land appurtenant to a railway; (b) All lines of rails, sidings, or yards, or branches used for the purposes of, or in connection with, a railway; (c) All electric traction equipment, power supply and distribution installations used for the purposes of, or in connection with, a railway; (d) All rolling stock, stations, offices, warehouses, wharves, workshops, manufactories', fixed plant and machinery, roads and streets, running rooms, rest houses, institutes, hospitals, water works and water supply installations, staff dwellings and any other works constructed for the purpose of or in connection with, railway; (e) All vehi

= = = = = = = =

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

= = = = = = = =

2018 (10) TMI 1370 – BOMBAY HIGH COURT – TMI – Monetary amount involved in the appeal – permission to withdraw the Motion – Held that:- The tax effect in the accompanying Appeal is less than ₹ 50.00 Lakh. Therefore, she has been instructed by Shri. Bhupendra Singh, Assistant Commissioner of CGST, ST & Central Excise, Raigad Commissionerate to withdraw the Appeal – Appeal is restored, it would be ultimately withdrawn. – Notice of Motion No. 165 of 2018 And Central Excise Appeal (L) NO. 15 of 2018 Dated:- 24-8-2018 – MR M. S. SANKLECHA AND MR RIYAZ I. CHAGLA, JJ. For The Applicant : Ms. Neha Mehta and Nikhil Wadikar ORDER This Motion has been taken out for condonation of delay in filing the Appeal under Section 35G of Central Excise A

= = = = = = = =

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

= = = = = = = =

GST – States – F.No. 3240/CTD/GST/2018/08 – Dated:- 24-8-2018 – GOVERNMENT OF PUDUCHERRY COMMERCIAL TAXES DEPARTMENT F.No. 3240/CTD/GST/2018/8. Puducherry, the 24th August 2018. NOTIFICATION In exercise of the powers conferred by sub-rule (5) of rule 61 of the Puducherry Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), read with section 168 of the Puducherry Goods and Services Act, 2017 (Act No. 6 of 2017) [hereafter in this notification referred to as the said Act], the Commissioner of State Tax, Puducherry, on the recommendations of the Council, hereby makes the following amendment in the notification issued vide F.No. 3240/CTD/GST/2017/6, dated the 10th August, 2018, published in the Gaz

= = = = = = = =

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

= = = = = = = =

2018 (12) TMI 862 – CESTAT KOLKATA – TMI – Rebate of service tax paid – export of goods – N/N. 41/2012-ST dated 29.06.2012 – Held that:- The issue is no more resintegra in view of the various decisions of the Tribunal holding a consistent view – this Bench in the case of Commissioner of Service Tax-II, Kolkata vs. SSK Exports Ltd. & others [2017 (11) TMI 299 – CESTAT KOLKATA], wherein under similar circumstances, Revenue has contended that the refund claim for each shipping bill should be examined on individual basis instead of overall basis – The Tribunal has upheld the order of the Ld. Commissioner (Appeals) wherein it was held that there is no requirement to determine FOB value shipping bill wise, to determine the formula enumerated in Para 1 (c) or in Para 3(i) of the notification and the rebate claim should be allowed in full when the assessee has specified the said condition on overall basis – appeal allowed – decided in favor of appellant. – Appeal No. ST/75425/2018 – FO/76539/

= = = = = = = =

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

= = = = = = = =

and rejected an amount of ₹ 21,864 as not admissible. Revenue filed appeal before the first appellate authority who passed the following order: 7. I modify the Order in Original No.R/24/ST-II/Ballygunge Div./kol/2015-16 dated 28.10.2015, passed by the Assistant Commissioner, Ballygunge Division, Erstwhile Service Tax-II Kolkata, to the extent of reducing the sanctioned amount of ₹ 2,61,867/- to ₹ 28,575/-. The differential amount of ₹ 2,33,292/-, which has been sanctioned irregularly, along with appropriate interest, is to be paid by the Respondent Party M/s. Visa Resources India Ltd, in government exchequer on receipt of the instant order. Department is at liberty to adjust the same from any subsequent refund claim in hand with recording of the same in his order, if it remains not paid by the party The assessee is in appeal before the Tribunal against the impugned order. 2. Ld. Consultant appearing on behalf of the appellant company submits that since the Notif

= = = = = = = =

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

= = = = = = = =

ermine FOB value shipping bill wise, to determine the formula enumerated in Para 1 (c) or in Para 3(i) of the notification and the rebate claim should be allowed in full when the assessee has specified the said condition on overall basis. The relevant paragraphs are reproduced below: 3. The main contention of the ld. A.R. for the Revenue, is that the respondent had not complied with the conditions of the Notification properly. The ld. A.R. for the Revenue reiterates the grounds of appeal. The main contention of the Revenue is that the particulars furnished in each and every column, must be shipping bill wise. The ld. Counsel for the respondent placed synopsis of cases specifying the issues involved in each appeal. I find that the Commissioner (Appeals) had given a detailed finding as under: 6. The Department also observes that claim cannot be filed under Para 3 in the difference between the amount of rebate under the procedure specified in paragraph 2 and paragraph 3 is less than twent

= = = = = = = =

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

= = = = = = = =

utory auditor signing annual report for the purpose of Income Tax Act or Companies Act. For non-compliance of the aforesaid conditions, the refund of ₹ 51,167/- is not admissible. 8. I have given a careful look at the contents of the said Notification and the relevant part of the same is reproduced below for the sake of better understanding and clarity in the manner : (3) the rebate shall be claimed in the following manner, namely :- (a) rebate may be claimed on the service tax actually paid on any specified service on the basis of duly certified documents; (b) the person liable to pay service tax under section 68 of the said Act on the taxable service provided to the exporter for export of goods shall not be eligible to claim rebate under this notification; (c) the manufacturer-exporter, who is registered as an assessee under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, shall file a claim for rebate of service tax paid on the taxable service used for ex

= = = = = = = =

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

= = = = = = = =

the claim for rebate of service tax to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, having jurisdiction over the registered office or the head office, as the case may be, in Form A-1; (g) the claim for rebate of service tax paid on the specified services used for export of goods shall be filed within one year from the date of export of the said goods. Explanation. – For the purposes of this clause the date of export shall be the date on which the proper officer of Customs makes an order permitting clearance and loading of the said goods for exportation under section 51 of the Customs Act, 1962 (52 of 1962); (h) where the total amount of rebate sought under a claim is upto 0.50% of the total FOB value of export goods and the exporter is registered with the Export Promotion Council sponsored by Ministry of Commerce or Ministry of Textiles, Form A-1 shall be submitted along with relevant invoice, bill or challan, or any oth

= = = = = = = =

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

= = = = = = = =

is more than 0.50% of the total FOB value of the goods exported, the procedure specified in clause (h) above shall stand modified to the extent that the certification prescribed thereon, in subclauses (A) and (B) shall be made by the Chartered Accountant who audits the annual accounts of the exporter for the purposes of the Companies Act, 1956 (1 of 1956) or the Income Tax Act, 1961 (43 of 1961), as the case may be; (j) where the rebate involved in a claim is less than rupees five hundred, the same shall not be allowed; (k) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise, as the case may be, shall, after satisfying himself,- (i) that the service tax rebate claim filed in Form A-1 is complete in every respect; (ii) that duly certified documents have been submitted evidencing the payment of service tax on the specified services ; (iii) that rebate has not been already received on the shipping bills or bills of export on the basis of procedure pre

= = = = = = = =

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

= = = = = = = =

on. I have very minutely and critically perused Para 1 (c) which reads as the rebate under the procedure specified in paragraph 3 shall not be claimed wherever the difference between the amount of rebate under the procedure specified in paragraph 2 and paragraph 3 is less than twenty per cent of the rebate available under the procedure specified in paragraph 2 . I find that in terms of Para 3, a claim may contain one shipping bill or it may contain more than 1 shipping bill. No restriction has been imposed as to the number of shipping bills to be covered in a claim. The only requirement is that details of shipping bill vis-à-vis details of goods exported and details of specified services used for export of goods have to be furnished. I find that in the Form A-1, details of shipping bill/bill of export, details of goods exported, details of specified services used for export of goods, documents evidencing payment of service tax and total amount of service tax paid and claimed as

= = = = = = = =

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

= = = = = = = =

2018 (12) TMI 893 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 471 (A. A. R. – GST) – Levy of GST – Reimbursement of salary on behalf of foreign entity – pure agent or not – Held that:- The applicant is a Crew Recruitment and Placement Agency, and are involved in selecting and recruiting shipping personnel on behalf of their principal/ client who is a Foreign Ship Owner and for which they are charging Administration fees and paying GST on such Administration charges so received.
–
The Salary of Crews of RMS will be deposited in the account of the applicant in one go and the same will be transferred from the applicant’s account directly to the bank accounts of the Crews, by the bank, on the directions of the applicant – the entire amount received by the applicant from RMS towards salary of crews is disbursed as such. Hence with respect to this transaction it is crystal clear that the applicant is acting as a pure agent of RMS.
–
The applicant will be acti

= = = = = = = =

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

= = = = = = = =

t ] by DRS MARINE SERVICES PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the following issue. Whether GST is applicable on Reimbursement of salary on behalf of foreign entity. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the GST Act . 02 FACTS AND CONTENTION – AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTIONS: We are Crew Recruitment & Placement Agency operating from Belapur, Navi Mumbai having GST Regn No.

= = = = = = = =

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

= = = = = = = =

member through banking channels into their respective accounts. For this activity we would be charging/ invoicing service charges to the principal and on the said charges we would be discharging our GST liability. In view of Rule 33 of the Central Goods and Service Tax Rules, 2017, the expenditure or costs incurred by a supplier as a Pure Agent of the recipient of supply shall be excluded from the value of the supply. Since the activity would be done on behalf of the Foreign Principal and we would not be deducting any charges from the amount of salary received for disbursement, the amount so remitted towards disbursal of salary would not be taxable under GST in view of provisions of Rule 33 of the CGST Rules, 2017. Therefore we would be carrying out the said activity, after amending our contract with the principal. If anything contrary to the said provisions exists, kindly let us know so that we are able to properly follow the Rules and correctly pay the taxes. STATEMENT CONTAINING APP

= = = = = = = =

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

= = = = = = = =

ry-I banks by foreign shipping or airline companies or their agents in India are reproduced below: a) Credits to such foreign currency accounts would be only by way of freight or passage fare collections in India or in ward remittances through normal banking channels from the overseas principal. Debits will be toward Various local expenses in connection with the management of the ships / crew in the ordinary course of business. b) No credit facility (fund based or non-fund based) should be granted against security of funds held in such accounts. c) The bank should meet the prescribed reserve requirements in respect of balances in such accounts. d) NO EEFC facility should be allowed in respect of the remittances received in these accounts. e) These foreign currency accounts will be maintained only during the validity period of the agreement. 3. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 4. The directions con

= = = = = = = =

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

= = = = = = = =

rporated as an addendum as follows: 2. Fee 2.4 Cost related to Training/ Briefing, Interviews in other Cities etc will be invoiced once approved on actual basis. 2.5 A Fix fees of US S 1250.00 per month will be charged as service charges towards disbursement of salaries. 2.6 GST as applicable. 3. Salary Reimbursement of Crew members. RMS will transfer Salary of Crews to DRS SFC A/C as a single remittance, and DRS will instruct the bank to disburse the Crew Salary as per list provided by RMS to respective bank Accounts of Crew members. 4. Reimbursement of Travel Cost 4.1 DRS will arrange travel for Officers/Crew for RMS subject to fare approval. 4.2 Travel Agency will raise invoice to RMS C/O DRS. 4.3 DRS will pay to travel agencies for and on behalf of RMS. 4.4 Monthly Reimbursement bill towards travel cost will be raised by DRS to RMS. The applicant has raised following query:- Qs. No. Questions raised by the applicant Submission as per ACT & RULE B Whether GST liability is applic

= = = = = = = =

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

= = = = = = = =

e, the expression pure agent means a person who- (a) enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; (b) neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply; (c) does not use for his own interest such goods or services so procured; and (d) receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account. Comments: As per the details provided by the applicants and Rule 33 of the CGST Rule 2017, the salary should not be taxable under GST as the applicant is giving instruction to the bank and acting as Agent only on behalf of their Foreign principal. The applicant in this case does not provide manpower to M/s. RMS Ltd but provides service for recruiting the manpower. The personnel involved a

= = = = = = = =

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

= = = = = = = =

e, Dy. Commr of SGST appeared and made written submissions. 05. OBSERVATIONS We have gone through the facts of the case, documents on record and submissions made by both, the applicant and the department. The applicant is a Crew Recruitment and Placement Agency, and are involved in selecting and recruiting shipping personnel on behalf of their principal/ client who is a Foreign Ship Owner and for which they are charging Administration fees and paying GST on such Administration charges so received. The applicant has submitted that their principal has requested them for disbursal Of salary to the crew members from the applicant s side, for which the principal would be transferring the sum of total salary to the applicant who in turn will be disbursing the salary to the crew member through banking channels into their respective accounts. For this activity, the applicant would be charging/ invoicing service charges to the principal and on the said charges they would be discharging their GS

= = = = = = = =

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

= = = = = = = =

for meeting the local expenses in India of such shipping or airline company. The question raised by the applicant is connected with their agreement that they have entered into with M/s. Reefership Marine Services Limited (RMS), situated in Bermuda, i.e. outside India. The agreement made on the 01.11.2003 between the applicant and RMS, has been submitted by the applicant and by way of which the applicant would assist RMS to hire officers of Indian Nationality for their vessels. As per the agreement the applicant would assist RMS in the selection of qualified Senior/ Junior officers for employment on board vessels as when required by RMS, for which they would be paid a certain fee to cover the administrative costs and mobilization expenses and they would also be paid communication costs . Vide the proposed Addendum #5 an amendment has been proposed and one of the amendments, under point no. 3 of the Addendum#5 submitted by the applicant at page 11 of their submissions dated 13.07.2018 is

= = = = = = = =

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

= = = = = = = =

agent of RMS. Here is to reiterate that the amounts that are to be transferred to this account have to be genuinely in respect of salary of crew as discussed and no other amounts which are not authorized and due as salary can be handled through this account by the applicant. We find that Rule 33 of the GST Rules would cover these types of transactions and is reproduced as under:- Rule 33. – Value of supply of services in case of pure agent.- Notwithstanding anything contained in the provisions of this Chapter, the expenditure or costs incurred by a supplier as a pure agent of the recipient of supply shall be excluded from the value of supply, if all the following conditions are satisfied, namely,- (i) the supplier acts as a pure agent of the recipient of the supply, when he makes the payment to the third party on authorisation by such recipient; (ii) the payment made by the pure agent on behalf of the recipient of supply has been separately indicated in the invoice issued by the pure a

= = = = = = = =

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

= = = = = = = =

l be acting as a pure agent of RMS in as much as the entire amount received by them as Crews Salary will be disbursed to the Crew and no amounts from the said receipt will be used by the applicant for his own interest. In fact, for performing as a pure agent they will also be receiving compensation separately in the form of fixed fees to be charged as service charges. In view of the above we are of the opinion that the applicant will not be liable to pay GST on Salary amount received from RMS and disbursed to the Crew. 05. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under section 98 Of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-34/2018-19/B-99 Mumbai, dt. 24.08.2018 For reasons as discussed in the body of the order, the questions are answered thus – Question:- Whether GST is applicable on Reimbursement of salary on behalf of foreign entity. Answer:- Answered in the neg

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – negi ns – Dated:- 23-8-2018 Last Replied Date:- 27-8-2018 – is ARN and LUT no. same.?we got the ARN no. but LUT no. not mention there. can we get LUT online (first time)? – Reply By KASTURI SETHI – The Reply = Dear Querist, Go through this circular. Your doubt will be clear. Exports – Furnishing of Bond/Letter of Undertaking for exports – Clarification C.B.I. & C. Circular No. 40/14/2018-GST, dated 6-4-2018 – Reply By Kishan Barai – The Reply = Yes. Co

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Ravikumar Doddi – Dated:- 23-8-2018 Last Replied Date:- 26-9-2018 – Dear sir,Kindly clarify as to GST Head of tax, dealer running a canteen in a SEZ unit, for the supplies done to employees as per the agreement they are collecting IGST from the SEZ Unit , often employees will also come and eat in the same canteen by paying their personal money to the canteen, Which tax we have to collect and pay either local tax(CGST+SGST) or IGST. – Reply By Ganeshan Kalyani – The Reply = In my view, cgst, sgst is applicable. – Reply By KASTURI SETHI – The Reply = I am also of the same view as opined by Sh.Ganeshan Kalyani Ji. – Reply By Ramaswamy S – The Reply = As per the 26th July, ,2018 order of Advance Ruling of Karnataka in the case of Coffee Day, = 2018 (8) TMI 875 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA the supplies do not qualify as zero rated as per the IGST Act, 2017. The Ruling is reproduced below RULING The supply of non-alcoholic beverages / ing

= = = = = = = =

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

= = = = = = = =

nt installs beverage vending machines inside SEZ premises, prepares beverages using the vending machines & its ingredients, supplies to SEZ units which are consumed by the employees of SEZ units and charge the SEZ units based on number of cups of beverages supplied. (Cuppage billing) b) The applicant installs beverage vending machines inside SEZ premises, supplies beverage ingredients to the SEZ units and bills based on the quantity of ingredients supplied. SEZ units prepare the beverages using the vending machines and serve them to its employees. There will not be any consideration for the usage of vending machine by the SEZ units. – Reply By Ravikumar Doddi – The Reply = Dear sir,My question is Supplies done to SEZ is making bill as per the agreement under IGST, and another supply is Employees of SEZ other than agreement supply i.e, General supply, which tax to collect. – Reply By Ramaswamy S – The Reply = The applicant undertakes two types of transactions. In the first type of t

= = = = = = = =

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

= = = = = = = =

= Views expressed by Sri Ramasamy Sir and Sri Kasturi Sir clarifies that Igst is applicable. I go with third views. – Reply By Ganeshan Kalyani – The Reply = * their – Reply By subramanian vijayakumar – The Reply = You have to pay IGST AND ABREE WITH THE VIEWS OF RAMASAMY SIR – Reply By Nitin Vipradas – The Reply = There are two cases. 1. supplies through vending machine. 2.General supplies such as buisuits chips curd shrikhand other than tea. These are on payment by employee in cash. These bought out items sold supplied by vendors to employees for which whether bills to be issued by canteen contractors whose billing per month is 12 lacs. And taxability will be IGST or else as in SEZ. In my opinion it is taxable. As supply is within sez to SEZ even though it will not attract s ction 16 zero rated. Moreover it is no way to furtherance of export business. It is a sales and purchase between employees and contractors. Supplies are not to SEZ with zero rated. Please do endorse if correct.

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Yatin Bhopi – Dated:- 23-8-2018 Last Replied Date:- 3-1-2019 – Sometimes we received defective goods which need to be return to seller. For rejecting goods, under Section 34 of CGST ACT 2017, supplier of goods should issue credit note and he should declare this credit note in GSTR-1. Once seller uploads credit note, GST amount will be reflected in our GSTR-2 it will be reduce our available ITC. Is that mean for every purchase rejection we need to First avail the Input tax credit (whether full or part rejection) so that when seller issue credit note it will be nullify. Please let me know – Reply By Praveen Nair – The Reply = Dear YatinHow will you send back the defective material to the Supplier?1. With a Tax Invoice by charging GST? or2. Against a Delivery Challan?Let me know – Reply By Yatin Bhopi – The Reply = goods will be return on delivery challan and ewaybill – Reply By Ganeshan Kalyani – The Reply = In my view, there are two options to dea

= = = = = = = =

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

= = = = = = = =

t note issued to the Supplier. Therefore, there is no question of ITC at the recipient end. At the supplier end, the issuance of Credit Note reduces his liability and the receivables, the tax is also reduced based on the Credit Note.RegardsS.Ramaswamy – Reply By Ganeshan Kalyani – The Reply = I fully agree with you Sir. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = I endorse the views of Sri Ramaswamy. – Reply By Arunachalam siva – The Reply = sir, If there is a difference in value/tax rate, either CN/DN to be issued. If defective item received, account it and avail credit, then return under cover of Tax invoice and pay tax. Now tax effect is nil. further to state that purchase return has to be treated as deemed supply by recipient under GST. Sending material back under DC seems improper. – Reply By Ramaswamy S – The Reply = 36 What is the procedure for return of goods under GST? In terms of Section 34(1) of the CGST Act, 2017 in case of return if goods on which GST was paid at th

= = = = = = = =

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

= = = = = = = =

ceptance of the said credit note the amount will be reduced from your Electronic Credit Ledger online, which you may have already debited by raising a Tax Invoice (reflected in your GSTR 1 & GSTR 3B) hence possibility of double effect. It is advisable to send material by DC as suggested by other experts with E-Way bill. Regards Pravin – Reply By Avneesh Sachdev – The Reply = hello all,why cant the receiver just issue a tax invoice back to the vendor instead of all this. – Reply By Praveen Nair – The Reply = In most of the company it has been seen that there are process for Inward of goods. If the goods are received in the system they may either;a. Send back the material against a Tax Invoice orb. Send back the material against DC.If the goods are sold prior to the appointed date (excise law) and received after appointed date (GST) then Tax Invoice should be raised by the purchaser for any goods rejected and sent back to supplier. – Reply By VaibhavKumar Jain – The Reply = I think t

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Ramaswamy S – Dated:- 23-8-2018 Last Replied Date:- 28-8-2018 – Section 17(5)(h) of the CGST Act, 2017 says that the ITC is not allowed if the stock is written off in the books of accounts. Rule 3(5B) of Cenvat Credit Rules says that the Credit is to be reversed if the stock is written off fully or partially or provision is made in the books of accounts partially or fully. Further, the CCR provided the recredit of credit reversed already whereas there is no such provision in the GST. There is a difference in the two provisions. Whether this omission is a unintentional or delibrate? Whether the ITC is to be reversed in case if provision is made to write off in the books of accounts. If this is an unint

= = = = = = = =

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

= = = = = = = =

if stock is written off in the books it has to be considered for reversal of credit. If you differ with my view, kindly share sir. – Reply By Ramaswamy S – The Reply = Thank you sir for your views. Hitherto, the benefit of doubt is to be given to the assessee and not the revenue. The latest Apex Court ruling has reversed the same. It is the same old officers in the department whose mind set is yet to change and will err on the revenue side and issue notice for the same. From the plain reading, it is not includible. However, with the litigation, the Govt can either provide an explanation stating that the words : written off includes provision to write off.In such a case, if considered clarificatory has a retrospective effect or if considered

= = = = = = = =

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

= = = = = = = =

n sub-section (1) of section 16 and subsection (1) of section 18, input tax credit shall not be available in respect of goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples. In Section 17 (5) (h) of CGST Act, 2017 the words and phrases where any provision to write off fully or partially has been made in the books of account is absent. Therefore only when the inputs and/or capital goods are written off fully input tax credit availed on such inputs and/or capital goods is to be paid back. Therefore, in my opinion, where any provision to write off fully or partially has been made in the books of account the ITC availed need not be reversed. Regarding litigation you can move your jurisdictional High Court or

= = = = = = = =

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

= = = = = = = =

2018 (8) TMI 1451 – GUJARAT HIGH COURT – TMI – CENVAT credit – service tax paid on sales commission – input service or not – The Tribunal disposed of all appeals with liberty to both sides to approach the Tribunal soon after the verdict of the Hon'ble High Court in the pending appeal against the Division Bench judgement of this Tribunal in case of Essar Steel India Limited [2016 (4) TMI 232 – CESTAT AHMEDABAD] filed by the Revenue.
–
Held that:- The Tribunal is a creation of statute. Section 35C(1) of the the Central Excise Act, mandates the Tribunal to dispose of the appeals on merits. It was simply not open for the Tribunal to jettison the litigation in this manner – It will be open for the Revenue /Department to file note/ application for fixing early date of hearing of Tax Appeal No.444 of 2016, as the decision on the said appeal would have direct bearing in pending appeals before the learned Tribunal, which are reported to be more than 100.
–
Proceedings are remanded to t

= = = = = = = =

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

= = = = = = = =

xcise and Customs reported in 34 STR 814 following the judgement in case of Commissioner of Central Excise, Ahmedabad vs. Cadila Healthcare (supra). The legislature subsequently added an explanation to the definition of term input service defined under the Cenvat Rules. This explanation came up for consideration before the Tribunal. Ahmedabad Bench of the Tribunal in case of Essar Steel India Ltd vs. C.C.E and S.T, Surat reported in 335 ELT 660 (Tribunal Ahmedabad) held that such amendment is clarificatory in nature and would therefore, with retrospective effect. In essence, it would cover a period prior to the date of amendment i.e. 03.02.2016 also. Such judgement has been challenged by the department before the High Court. Department's appeal is pending. 3. Pending such appeal before the High Court, large number of appeals came up for consideration before the Tribunal on this very issue. The department obviously placed heavy reliance on the judgements of High Court in cases of Co

= = = = = = = =

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

= = = = = = = =

d. Strangely, the Tribunal adopted the third mode. The Tribunal disposed of all appeals with liberty to both sides to approach the Tribunal soon after the verdict of the Hon'ble High Court in the pending appeal against the Division Bench judgement of this Tribunal in case of Essar Steel India Limited (supra) filed by the Revenue . While doing so, the Tribunal also added needless to mention no recovery nor refund would be processed during the period . 5. For multiple reasons, we do not approve the approach adopted by the Tribunal. Dispensation of justice is not number games and should not be brought down to mere statistics. Through the mode adopted by the Tribunal all that has been achieved is to show disposal of large number of appeals and crossobjections without resolution of the disputes between the parties. This disposal is also not final and is open to reopening of all the issues. This would lead to multiplicity of proceedings. The parties, i.e. the department or the assessee,

= = = = = = = =

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

= = = = = = = =

ssed by the Tribunal serves no other purpose. 6. The Tribunal is a creation of statute. Section 35C(1) of the the Central Excise Act, mandates the Tribunal to dispose of the appeals on merits. It was simply not open for the Tribunal to jettison the litigation in this manner. 7. The Division Bench of this Court in case of Commissioner of Central GST vs. Jay Chemicals Industries Ltd in Tax Appeal No. 767 of 2018 and connected appeals under similar circumstances passed following order: 7. In view of the above and for the reasons stated hereinabove, all these appeals succeed. The impugned common order passed by the learned Tribunal is hereby quashed and set aside and the appeals are restored to the file of the learned Tribunal and to avoid any further multiplicity of proceedings /appeals before this Court, it is directed that the appeals on remand be kept pending till the decision of this Court in the case of Essar Steel India Ltd., being Tax Appeal No.444 of 2016. 8. The appeals are partl

= = = = = = = =

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

= = = = = = = =

2018 (8) TMI 1507 – PUNJAB AND HARYANA HIGH COURT – TMI – Maintainability of appeal – substantial questions of law – monetary amount involved – Held that:- It is made clear that dismissal of present appeal will not be taken as upholding the order passed by the Tribunal as the legal issue raised therein is left open to be considered in an appropriate case. – CEA No.36 of 2018 (O&M) Dated:- 23-8-2018 – MR. RAJESH BINDAL AND MR. AMIT RAWAL, JJ. For The Appellant : Mr. Sourabh Goel, Advocatea ORDER RAJESH BINDAL J. The appellant in the present appeal has challenged the order dated 05.06.2017 passed by the Customs, Excise and Service Tax Appellate Tribunal, Chandigarh arising out of Appeal No. E/395/2012, raising the following substantial ques

= = = = = = = =

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

= = = = = = = =

surmises and conjectures to conclude that the respondent assessee is entitled to benefit of CENVAT Credit for 'rent service', when admittedly, the part of premises has been sub leased to sister concern and therefore that part of service is not availed and does not have nexus with manufacturing process? (iv) Whether Hon'ble CESTAT is justified in not considering the provisions of Rule 9 of CENVAT Credit Rules, 2004 which categorically provides for the documents on the basis of which CENVAT Credit may be claimed by the party? (v) Whether the Ld. CESTAT has committed a grave error in allowing the appeal of the respondent and allowing CENVAT Credit claimed by the respondent on the basis of debit notes which does not find mention in

= = = = = = = =

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

= = = = = = = =

s are also not same and therefore the said judgment is not applicable in the present case? At the very outset, learned counsel for the appellant submitted that the amount involved in the present appeal is ₹ 40,06,525/-. As the amount involved is less than the limit prescribed in the Circular issued by the Central Board of Indirect Taxes & Customs (Judicial Cell) dated 11.07.2018, the present appeal be dismissed as not maintainable. Ordered accordingly. However, it is made clear that dismissal of present appeal will not be taken as upholding the order passed by the Tribunal as the legal issue raised therein is left open to be considered in an appropriate case. – Case laws – Decisions – Judgements – Orders – Tax Management India –

= = = = = = = =

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

= = = = = = = =

GST – States – 35/2018-State Tax – Dated:- 23-8-2018 – COMMISSIONER OF STATE TAX, MAHARASHTRA STATE GST Bhavan, Mazgaon, Mumbai 400 010, dated the 23rd August 2018. NOTIFICATION Notification No. 35/2018-State Tax MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017. No. JC(HQ)-1/GST/2018/Noti/Returns/ADM-8.- In exercise of the powers conferred by section 168 of the Maharashtra Goods and Services Tax Act, 2017 (XLIII of 2017) read with sub-rule (5) of rule 61 of the Maharashtra Goods and Services Tax Rules, 2017, the Commissioner of State Tax, Maharashtra State, on the recommendations of the Council, hereby makes the following amendment in the Notification No. JC(HQ)-1/GST/2018/Noti/34/ADM-8 [Notification No. 34/2018- State Tax ], dated the 13th Au

= = = = = = = =

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

= = = = = = = =

2018 (9) TMI 118 – MADHYA PRADESH HIGH COURT – 2018 (19) G. S. T. L. J73 (M. P.) – Levy of CGST, SGST and IGST – duty free shops at international airports in India – seeking of interim direction be issued to the Board through member GST to issue necessary clarification regarding eligibility of refund of accumulated credit of CGST, SGST and IGST paid by the duty free shops on goods and services supplied by the Indian supplier.
–
Held that:- The learned Counsel for the respondents is directed to seek instructions from the Board for issuance of clarification and response – List immediately after ten days. – W. P. No.17999 of 2018 Dated:- 23-8-2018 – P. K. Jaiswal And S. K. Awasthi, JJ. Shri R. Gogoi and Shri Alok Barthwal, learned Counse

= = = = = = = =

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

= = = = = = = =

ary clarification regarding eligibility of refund of accumulated credit of CGST, SGST and IGST paid by the duty free shops on goods and services supplied by the Indian supplier. He has also drawn our attention to the decision of Apex Court in the case of M/s. Hotel Ashoka (Indian Tourism Development Corporation Limited) Versus Assistant Commissioner of Commercial Taxes and another (Civil Appeal No.2560 of 2010) reported in (2012) 276 ELT 433. Considering the aforesaid, we direct the learned Counsel for the respondents to seek instructions from the Board for issuance of clarification and response, as the matter is already settled by the Apex Court, within a period of ten days from today. List immediately after ten days. – Case laws – Decis

= = = = = = = =

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

= = = = = = = =

GST – States – CCW/GST/74/2015 – Dated:- 23-8-2018 – Circular No. CCT's Ref. No. CCW/GST/74/2015 Dated. 23rd August, 2018 Office of the Chief Commissioner of State Taxes, Edupugallu, Vijayawada. Present :- Sri J.Syamala Rao, I.A.S., Sub :- APGST Act, 2017- Intelligence based Enforcement action- Tax payers allotted to Central Tax Authorities – GST Council decisions on Cross -Empowerment- Reg. Ref :-1. Minutes of the 9th GST Council Meeting held on 16.1.2017. 2. Minutes of the Coordination meeting held on 29.5.2018 at CGST, Visakapatnam. ******** It is noticed that the officers of the Department have been conducting audit of tax payers allotted to state authorities and whenever any modus operandi is noticed in evading tax in a particular

= = = = = = = =

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

= = = = = = = =

nistration shall alone have the power to adjudicate a case where the disputed issue relates to place of supply, or when an affected State requests that the case be adjudicated by the CGST authority and for such issues of export and import as may be discussed in the Law Committee of officers and brought back to the Council for decision: Further in the coordination meeting of the Central Tax and State Tax authorities of Andhra Region the following decisions relate to Enforcement Activities are taken. A) Intelligence based irregularities: – The authority detecting the evasion will take up the complete follow up action of investigation adjudication etc. The incident reports will be sent to the counterpart Chief Commissioner soon after the inspe

= = = = = = = =

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

= = = = = = = =

2018 (9) TMI 262 – MADRAS HIGH COURT – 2018 (18) G. S. T. L. 589 (Mad.) – Extended period of limitation – penalty – non registration, non payment and non filing of returns – bonafide belief – no suppression of facts – Whether the Department was justified in invoking the extended period of limitation and also imposing penalty?
–
Held that:- In the instant case, there was no allegation of fraud or suppression or wilful mis-statement against the assessee. The Department, even in the said SCN, stated that the assessee was liable to pay service tax and get himself registered from the year 2007-08 whereas he got himself registered only in the year 2012.
–
The law on the subject as to whether the extended period of limitation could have been invoked when there were two views within the Department itself i.e. when certain Original Authorities hold that the services are taxable services and certain Appellate Authorities hold otherwise – When there is scope for doubt in the mind of the

= = = = = = = =

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

= = = = = = = =

payment and non filing of returns, which were statutorily required to be complied, whether the Tribunal was justified in holding that there was no suppression of facts and that the issue of show cause notice was hit by limitation?" 3. The Department issued the show cause notice dated 19.10.2012 stating that the respondent assessee received commission for promoting, marketing and selling the goods produced by M/s.Herbalife International India Private Limited and that the assessee is one of the independent distributors of multi-level marketing company. The assessee had obtained service tax registration on 17.7.2012 for providing taxable services mentioned in 'other than negative list'. 4. In the said show cause notice, after examining the nature of transaction between the assessee and the principal, the Original Authority stated that the principal raised bills on the sale of products to their distributors by raising sale invoices and charges and value added tax on them. How

= = = = = = = =

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

= = = = = = = =

Proviso to Section 73(1) of the Finance Act, 1994 for the period from 2007-08 to 2011-12; as to why the amount paid by him on 16.8.2012 should not be appropriated towards the demand of service tax; as to why interest applicable should not be demanded; and as to why penalty should not be imposed. 7. The assessee filed his reply, which was rejected and the proposals made in the show cause notice were confirmed vide the Order-in-Original dated 17.10.2014. Aggrieved by the same, the assessee preferred an appeal before the Commissioner of Central Excise (Appeals). The First Appellate Authority, by order dated 30.6.2016, rejected the appeal, against which, the assessee preferred an appeal before the Tribunal. 8. One of the grounds raised in the appeal filed before the Tribunal was as to whether the Adjudicating Authority could have levied penalty under Section 78 of the Finance Act, 1994, since the case of the assessee is squarely covered under Section 73(3) of the Finance Act, 1994 since t

= = = = = = = =

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

= = = = = = = =

ion, which falls for consideration, is as to whether the Department was justified in invoking the extended period of limitation and also imposing penalty. 12. The Tribunal, while considering the correctness of the order passed by the First Appellate Authority, referred to the decision of their New Delhi Bench in the case of Charanjeet Singh Khanuja Vs. CST, Indore [reported in (2016) 68 Taxmann.com 60] and held that if two findings are possible, the longer period of limitation under the Proviso to Section 11A(1) cannot be invoked. There is no dispute with regard to the fact that the decision in Charanjeet Singh Khanuja has attained finality and that the Department has not preferred any appeal against the said decision. 13. The law on the subject as to whether the extended period of limitation could have been invoked when there were two views within the Department itself i.e. when certain Original Authorities hold that the services are taxable services and certain Appellate Authorities

= = = = = = = =

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

= = = = = = = =

cannot be equated with a wilful misstatement. The latter implies making of an incorrect statement with the knowledge that the statement was not correct. 11. Factual position goes to show the Revenue relied on the circular dated 23.5.1997 and dated 19.12.1997. The circular dated 6.1.1998 is the one on which appellant places reliance. Undisputedly, CEGAT in Continental Foundation Joint Venture case (supra) was held to be not correct in a subsequent Larger Bench judgment. It is, therefore, clear that there was scope for entertaining doubt about the view to be taken. The Tribunal apparently has not considered these aspects correctly. Contrary to the factual position, the CEGAT has held that no plea was taken about there being no intention to evade payment of duty as the same was to be reimbursed by the buyer. In fact such a plea was clearly taken. The factual scenario clearly goes to show that there was scope for entertaining doubt, and taking a particular stand which rules out application

= = = = = = = =

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

= = = = = = = =

ion and non-availability of the extended period of limitation, the appeals are allowed. 14. In the instant case, there was no allegation of fraud or suppression or wilful mis-statement against the assessee. The Department, even in the said show cause notice, stated that the assessee was liable to pay service tax and get himself registered from the year 2007-08 whereas he got himself registered only in the year 2012. The Tribunal, in the decision in Charanjeet Singh Khanuja, considered an identical issue in a batch of cases and pointed out that when, on the issue involved in the batch of cases, there were two views in the Department itself, it cannot be said that on the question as to whether the activity of the assessee was taxable under Section 65(105) (zzb) read with Section 65(19) of the Finance Act, 1994, there was no scope for doubt. Thus, it held that when there is scope for doubt in the mind of the assessee on a particular issue, the longer period under the Proviso to Section 11

= = = = = = = =

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

= = = = = = = =

es did not apply for service tax registration or did not file ST-3 returns or did not declare their activities to the jurisdictional Central Excise Authorities, it cannot be inferred that this was a wilful act with intent to evade payment of service tax. We also take notice of the fact that in respect of appeals filed by the Revenue, the Commissioner (Appeals), after analysing the activities of the assessees, had taken the view that the same is not covered by the definition of 'business auxiliary service' under Section 65(105)(zzb) read with Section 65(19) of the Finance Act, 1994. When, on the issue involved in these group of cases, there were two views in the Department itself, it cannot be said that on the question as to whether the activity of the assessees was taxable under Section 65(105)(zzb) read with Section 65(19) of the Finance Act, 1994, there was no scope for doubt. As held by the Apex Court in the case of Continental Foundation Joint Venture Vs. CCE [(2007) Taxman

= = = = = = = =

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

= = = = = = = =

2018 (9) TMI 387 – CESTAT CHENNAI – TMI – Manpower recruitment and supply service – engaging labourers for harvesting sugarcane – Contention of the department is that the charges towards supply of cane harvesting labourers are recovered from the farmers at the rate accepted by the farmers and therefore the said activity would be covered within the definition of manpower recruitment or supply agency service – Held that:- It is explained by the appellant that there is no employer and employee relationship between the cutting labourers and the appellant. The appellant company has no say in the rate for cutting demanded by the labourers and the labourers have got every right to deny to cut for a particular sugarcane grower. The mill simply manufactures the sugar with regard to the availability of the cutting labourers only. Being a Government undertaking, it can be seen that all appointments are to be made in the muster roll of the sugar mill – it cannot be said that the appellants have p

= = = = = = = =

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

= = = = = = = =

f intelligence received that the appellants are providing taxable services on manpower recruitment or supply agency service, but not taken registration and are not paying service tax, investigations were conducted. It was revealed that the appellants have allotted certain agricultural areas for the purpose of procurement of sugarcane cultivated by farmers within their area. These farmers who intend to cultivate sugarcane sell their produce to the appellant s factory. For this purpose, the farmers are required to get registered with the appellant s factory. As per the said agreement executed by the farmers, they cannot deal or sell their sugarcane in any manner other than without the written order of the appellant factory. It is also the responsibility of the farmers to harvest and deliver the sugarcane at the factory gate of the appellant. In the case of harvesting, labourers (manpower) will be arranged by the appellant factory and the cane cutting charges will be recovered by the appe

= = = = = = = =

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

= = = = = = = =

factured by the factory is also controlled by the Government. Further, the price of sugarcane procured is also periodically fixed by the Government. The employees of the sugar mill in the muster roll of the mill which in turn is controlled by the Government of Tamilnadu. The only object of the mill is to manufacture sugar and sell such sugar at the price fixed by the State Government for the public distribution system. As per the policy of the Government, the sugar mill cannot involve in an activity other than those activity fixed by the Government. 2.1 The appellant manufactures sugar by crushing sugarcane grown by the farmers / agriculturists who own lands. The State Government has also earmarked the area or places or jurisdiction from where the sugarcane can be procured from the growers / farmers thereby encouraging the cultivation activities. The crushing of sugarcane for manufacture is a seasonal one and totally dependent on the timely and uninterrupted supply of sugarcane by the

= = = = = = = =

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

= = = = = = = =

has no say whatever in fixing the cutting price of the sugarcane. The farmer alone is liable to pay cutting charges to the labourers and not the sugar mill. To ensure that the sugarcane is harvested and there is regular supply during the period of crush of sugarcane, the mill merely identifies the availability of the labourer for cutting the sugarcane, keep track and maintain some records about the availability of such labourers. The amount so deducted from the price of the sugarcane is paid as wages for the cutting labourers on weekly basis. The payment for the supply of sugarcane is not given in advance and paid only after such completion of supply sugarcane by the farmers. However, the wages for harvesters / labourers is paid on weekly basis as these labourers will not wait till the payment for the sugar supplied is made to the appellant factory. The facility is only for identifying the sugarcane growers as well as harvesters and it does not have anything to do with the arrangement

= = = = = = = =

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

= = = = = = = =

agency service under Section 65(68) of the Finance Act, 1994. The appellant has replied to the show cause notice dated 5.4.2011. It is explained by the appellant that there is no employer and employee relationship between the cutting labourers and the appellant. The appellant company has no say in the rate for cutting demanded by the labourers and the labourers have got every right to deny to cut for a particular sugarcane grower. The mill simply manufactures the sugar with regard to the availability of the cutting labourers only. Being a Government undertaking, it can be seen that all appointments are to be made in the muster roll of the sugar mill. From the facts on record, it cannot be said that the appellants have provided harvesting labourers to the sugarcane growers for harvesting the sugarcane. The Tribunal on identical set of facts had considered the issue and held that the sugarcane growers themselves are encouraging the harvesting labourers and as a mere facilitation, the amo

= = = = = = = =

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

= = = = = = = =

GST – States – POL-41/1/2017-POLlCY /12281/CT – Dated:- 23-8-2018 – Commissionerate of CT and GST, Odisha (At Cuttack) (Finance Department, Government of Odisha) No-POL-41/1/2017-POLlCY /12281/CT Dated 23.08.2018 NOTIFICATION In exercise of the powers conferred by section 168 of the Odisha Goods and Services Tax Act, 2017 (Odisha Act 7 of 2017) (hereafter in this notification referred to as the said Act) read with sub-rule (5) of rule 61 o

= = = = = = = =

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

= = = = = = = =

2018 (9) TMI 1417 – MADHYA PRADESH HIGH COURT – 2018 (19) G. S. T. L. 46 (M. P.) – Jurisdiction – Competency to issue SCN – sole contention of the learned counsel for the petitioner is that in absence of any notification under Section 4 of IGST Act, 2017, the respondent No.4 is not competent to issue show cause notice and the impugned seizure memo dated 15.07.2018 is wholly without jurisdiction – Held that:- The officers appointed under the MPGST Act, 2017 was authorized to be proper officers for the purposes of the IGST Act.
–
The officers appointed under the MPGST Act are authorized to be proper officers for the purpose of IGST and, therefore, the contention of the petitioner that no notification was issued and in absence of any notification under Section 4 of the IGST Act has no force, the contention of the petitioner cannot be accepted that the action of the respondent No.4 is wholly without jurisdiction.
–
Petition dismissed with liberty to avail the remedy of appeal prov

= = = = = = = =

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

= = = = = = = =

se powers under the IGST Act, 2017, therefore, the respondent Nos.3 and 4 have no power to inspect, search and seize goods under the IGST Act, 2017 and prayed for its quashment. 4. The sole contention of the learned counsel for the petitioner is that in absence of any notification under Section 4 of IGST Act, 2017, the respondent No.4 is not competent to issue show cause notice and the impugned seizure memo dated 15.07.2018 is wholly without jurisdiction. 5. The IGST Act, 2017 deals with taxability of inter-state supply of goods and services. Section 4 of the IGST Act reads as under :- 4. Without prejudice to the provisions of this Act, the officers appointed under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorised to be the proper officers for the purposes of this Act, subject to such exceptions and conditions as the Government shall, on the recommendations of the Council, by notification, specify. 6. From perusal of the aforesaid, it

= = = = = = = =

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

= = = = = = = =

ovisions of Central Goods & Services Tax Act (in short the CGST ) relating to inspection, search, seizure etc. Section 68 of the MPGST Act provides the powers of inspection, search and seizure of goods in movement. Section 129 of the MPGST Act provides the power in respect of detention, seizure and release of goods and conveyance in transaction. 9. In the present case, it is an admitted position that the subject vehicle was transporting goods for inter-state supply of goods from Gurgaon, Haryana to Pune, Maharashtra. As per E-Way Bill System (Annexure- P/4), the number of vehicle was mentioned as HR-38-0823 whereas, the correct vehicle number is HR-38-X-0823. It was found by the respondent No.4 that the E-Way Bill was defective and not updated, therefore, show cause notice was issued on 13.07.2018 to inspect the subject vehicle on 15.07.2018. On inspection, the respondent No.4 in exercise of powers under Section 129(1) of the MPGST Act passed the seizure order (Annexure-P/1) on 15.

= = = = = = = =

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

= = = = = = = =

filed this writ petition. He has also drawn our attention to the notification dated 13.10.2017 issued by the Government of India, Ministry of Finance in respect of refund under Section 20 of the IGST Act and submitted that similar type of notification is required and prayed for its quashment. 13. On due consideration of the arguments of the learned counsel for the parties so also the provisions of Section 4 of the IGST Act, we are of the view that officers appointed under the MPGST Act are authorized to be proper officers for the purpose of IGST and, therefore, the contention of the petitioner that no notification was issued and in absence of any notification under Section 4 of the IGST Act has no force, we cannot accept the contention of the petitioner that the action of the respondent No.4 is wholly without jurisdiction. 14. In view of the statutory appeal provided under the statute, we are not inclined to entertain this writ petition and dismiss the writ petition with liberty to av

= = = = = = = =

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

= = = = = = = =

2018 (9) TMI 1666 – CESTAT CHENNAI – TMI – Valuation – inclusion of reimbursable expenses in assessable value – Held that:- The issue is decided in the case of UNION OF INDIA AND ANR. VERSUS M/S. INTERCONTINENTAL CONSULTANTS AND TECHNOCRATS PVT. LTD. [2018 (3) TMI 357 – SUPREME COURT OF INDIA], where it was held that only with effect from May 14, 2015, by virtue of provisions of Section 67 itself, such reimbursable expenditure or cost would also form part of valuation of taxable services for charging service tax – demand do not sustain.
–
CENVAT Credit – input service used for non-taxable output service – Held that:- In the case of THE COMMISSIONER OF CENTRAL EXCISE BANGALORE-V VERSUS M/S. VISHAL PRECISION STEEL TUBES AND STRIPS PVT. L

= = = = = = = =

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

= = = = = = = =

a, were engaged in cargo handling service. Pursuant to audit, it appeared to the department that appellants (i) were required to pay service tax on reimbursable expenses incurred during the period 19.4.2006 to 31.7.2007 amounting to ₹ 3,68,758/- and (ii) wrongly availed CENVAT credit of service tax on input service used for non-taxable output service during the period June 2006 to March 2007 amounting to ₹ 15,34,141/-. Accordingly, show cause notice dated 23.10.2007 was issued proposing demand of the aforesaid amounts along with interest and also for imposing penalties under various provisions of law. In adjudication, the original authority confirmed the proposal. In appeal, Commissioner (Appeals) vide impugned order dated 26.3.

= = = = = = = =

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

= = = = = = = =

put service, he relies on the following case laws:- a. Commissioner of Central Excise Vs. Narmada Chematur Pharmaceuticals Ltd. – 2005 (179) ELT 276 (SC) b. Commissioner of Central Excise Vs. Narayan Polyplast – 2005 (179) ELT 20 (SC) c. Commissioner of Central Excise, Bangalore Vs. Vishal Precision Steel Tubes & Strips Pvt. Ltd. – 2017 (349) ELT 686 (Kar.) The ld. counsel submits that, in all these judgments, it has been reiterated that credit has been utilized for payment of duty which is not required to be paid; such credit is not required to be reversed. 3. On the other hand, ld. AR Shri K. Veerabhadra Reddy reiterated the findings in the impugned order. 4. Heard both sides. 5. We find that the ld. counsel is correct in his assertio

= = = = = = = =

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

= = = = = = = =

2018 (10) TMI 201 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (18) G. S. T. L. 77 (A. A. R. – GST – Classification of Supply – Supply of goods or services? – Levy of GST – activity of printing of question papers for Secondary and Higher Secondary Education Boards of various states and also at the national level and for various education institutes – N/N. 2/2017-Central Tax (Rate) dated 28.06.2017.
–
Whether activity of printing of question papers on behalf of educational institutions can be classified as activity of supply of goods or supply of services?
–
If it is supply of services, referring to Sr. No. 27 of Notification 11/2017-CTR dtd : 28.06.2017 as amended by Notification 31/2017-CTR dtd.: 13.10.2017, then benefit of Sr. No. 66 of Notification 12/2017-CTR dtd.. 28.06.2017 is allowable, as amended by Notification No. 2/2017-CTR of 25.01.2018?
–
If it is supply of goods, then question paper printing should be treated as exempted goods at Sr. No. 1 19 of exempted li

= = = = = = = =

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

= = = = = = = =

oards / Educational Institutes and the physical inputs used for printing belong to the applicant, supply of printing is the principal supply in this case and the same would constitute supply of service falling under heading 9989 of the scheme of classification of services.
–
Applicability of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended, or Sr. No. 27 of Notification No. 11/2017-CentraI Tax (Rate) dated 28.06.2017, as amended, (and corresponding Notifications issued under the Gujarat Goods and Services Tax Act, 2017) to the supply of service – Held that:- The expression ‘relating to’ used in sub-item (iv) of item (b) of Sr. No. 66 of Notification No. 12/2017-Central Tax (Rate) widens the scope of the said entry and printing of question papers would be covered by the phrase ‘services relating to admission to, or conduct of examination by, such institution’ – the supply in this case would constitute supply of service falling under heading 9989

= = = = = = = =

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

= = = = = = = =

e covered by Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), as amended, and will attract Goods and Services Tax @ 12% (CGST 6% + SGST or IGST 12%).
–
Ruling:- The activity of printing of question papers by M/s. Edutest Solutions Private Limited is activity of supply of service classifiable under heading 9989 of the scheme of classification of services.
–
The service provided by M/s. Edutest Solutions Private Limited to educational institutions by way of printing of question papers for conduct of examination by such institutions would be covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), as amended and Notification No. 12/2012-State Tax (Rate), as amended.
–
The service provided by M/s. Edutest Solutions Private Limited to service recipients other than educational institutions by way of printing of question papers would be covered by Sr.No. 27(i) of Notification No: 11/20.17-Central Tax (Rate), as-amended, and Notification No. 11/2017-State

= = = = = = = =

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

= = = = = = = =

t submitted that as per its understanding, the product is covered by Section X Chapter 49 which Covers Printed books, newspapers, pictures and other products of the printing industry, manuscripts, typescripts and plans . The applicant referred to entry at Sr. No. 119 of Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, as amended, which provides Nil rate for Printed books, including Braille books of Chapter Heading 4901. The applicant also referred to entry at Sr. No. 201 of Schedule-I of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, as amended, which provides CGST Rate of 2.5% for Brochures, leaflets and similar printed matter, whether or not in single sheets of Chapter Heading 4901. 3. The applicant submitted that its entire operations are in the education field, since it is doing printing of exam question papers for various Universities and Education Boards. All its clients are Government Bodies – both Central and State Governments. It is submitted that as

= = = = = = = =

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

= = = = = = = =

s, higher education services, specialized education services and also other education and training services and education support services. The applicant submitted that its services are covered at Sr. No. 66(b)(iv), which covers Services provided to an educational institution, by way of, services relating to admission to, or conduct of examination by, such institution, upto higher secondary . It is further submitted that the word upto higher secondary have been omitted at aforesaid Sr. No. 66 vide Notification No. 2/2018-Central Tax (Rate) dated 25.01.2018. The applicant submitted that all services which it is providing to educational institution as defined at Sr. No. (y) of definition provided in Notification No. 12/2017- Central Tax (Rate) are exempt services under GST law. 5. The applicant also referred to Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate), as amended vide Notification No. 31/2017-Central Tax (Rate), 6. The applicant raised the following questions for advance

= = = = = = = =

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

= = = = = = = =

that printed Question Paper are not covered under any of the Headings from 4901 to 4910, it is classifiable under Heading 4911 covering Other printed matter, including printed pictures and photographs , more specifically under HS Code 4911 99 90, with applicable GST Rate of (6% + 6%). 7.2 The Central Goods and Services Tax and Central Excise Commissionerate, Ahmedabad North also referred to Sr. No. 27 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended, covering services falling under Heading 9989. In view of the above, it has been informed that the supply being made by the applicant may either be considered as supply of goods falling under HS Code 4911 9990, attracting 12% GST or be considered as supply of service covered under Heading / Service Code 9989, attracting 12% GST. 8. We have considered the submissions made by the applicant in their application for advance ruling, in additional submission as well as at the time of personal hearing and views of the Ce

= = = = = = = =

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

= = = = = = = =

what constitutes the principal supply. 3. Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax ACI as supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary. 4. In the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong 10 the printer, supply of printing [of the content supplied by [he recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services. 10.2 The manuscript material for printing the Question Papers relating to the examinations is supplied to the applicant by the Education Boards / Educational Institutes. T

= = = = = = = =

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

= = = = = = = =

ax (Rate) dated 28.06,2017 read as follows – (1) (2) (3) (4) (5) Sl. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Conditions 66 Heading 9992 Services provided – (a) by an educational institution to its students, faculty and staff; (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or housekeeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; up to higher secondary: Provided that nothing contained in entry (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. NIL NIL 12.2 The said Sr. No. 66 of Notification No. 12/2017

= = = = = = = =

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

= = = = = = = =

tution; (v) supply of online educational journals or periodicals. Provided that nothing contained in sub-items (i), (ii) and (iii) of item (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent: Provided further that nothing contained in sub-item (v) of item (b) shall apply to an institution providing services by way of; (i) pre-school education and education up to higher secondary school or equivalent; or (ii) education as a part of an approved vocational education course. NIL NIL 12.3 Educational Institution has been defined vide clause (y) of Paragraph 2 of the said Notification No. 12/2017-CentraI Tax (Rate) as follows :- (y) educational institution means an institution providing services by way of,- (i) pre-school education and education up to higher secondary school or equivalent; (ii) education as a part of a curriculum for obtaining a qualification recogn

= = = = = = = =

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

= = = = = = = =

widens the scope of the expression activities relating to business. This is in view of following observations of Supreme Court in Doypack Systems (P) Limited Vs Union of India 1988 (36) ELT 201 (SC) = 1988 (2) TMI 61 – SUPREME COURT OF INDIA, interpreting the expression in relation to: 48. The expression in relation to (so also pertaining to), is a very broad expression which pre-supposes another subject matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context, see State Wakf Board v. Abdul Aziz (A.I.R. 1968 Madras 79, 81 = 1966 (3) TMI 84 – MADRAS HIGH COURT, paragraphs 8 and 10, following and approving Nitai Charan Bagchi v. Suresh Chandra Paul (66 C.W.N. 767) = 1961 (2) TMI 70 – CALCUTTA HIGH COURT, Shyam Lal v. M. Shayamlal (A.I.R. 1933 All. 649) = 1933 (4) TMI 15 – ALLAHABAD HIGH COURT, and 76 Corpus Juris Secundum 621. Assuming that the investments in shares and in lands do not form part

= = = = = = = =

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

= = = = = = = =

, the supply in this case would constitute supply of service falling under heading 9989 of the scheme of classification of services, whereas column 2 of Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate) refers to Heading 9992. However, Explanation (ii) at Para 3 of the Notification No. 12/2017-Central Tax (Rate), as amended, clarifies that Chapter, Section, Heading, Group, or Service Code mentioned in Column (2) of the Table are only indicative . Therefore, merely on the ground of classification of the service of the applicant under heading 9989 would not preclude it from being covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), if it is otherwise covered under the said entry. 13.4 Therefore, services provided by the applicant to educational institutions by way of printing of question papers for conduct of examination by such institutions would be covered by Sr. No. 66 of Notification No. 12/2012-Central Tax (Rate), as amended. 13.5 As defined in clause (y) of

= = = = = = = =

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

= = = = = = = =

eading 9989 (i) Services by way of printing of all goods falling under Chapter 48 or 49 [including newspapers books (including Braille books), journals and periodicals], which attract CGST @ 6 per cent. or 2.5 per cent. or Nil, where only content is supplied by the publisher and the physical inputs including paper used for printing belong to the printer. 6 – (ii) Other manufacturing services; publishing, printing and reproduction services; materials recovery services, other than (i) above. 9 – 14.2 The service of printing of question paper, supplied by the applicant to other than educational institutions will be covered by Sr. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), as amended, and will attract Goods and Services Tax @ 12% (CGST 6% + SGST or IGST 12%). 15. In view of the foregoing, we rule as under – RULING (i) The activity of printing of question papers by M/s. Edutest Solutions Private Limited (GSTIN 24AAGCC5475Q2Z1) is activity of supply of service classifiable und

= = = = = = = =

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

= = = = = = = =

2018 (10) TMI 301 – AUTHORITY FOR ADVANCE RULING, GUJARAT – 2018 (18) G. S. T. L. 144 (A. A. R. – GST) – Exemption from GST – training or coaching – recreational activities or not – UCMAS (Universal Concept Mental Arithmetic System) – The activity provided by UCMAS using abacus whether qualifies for exemption from the payment of GST?
–
Held that:- As per Sl. No. 80 of Notification No. 12/2017-Central Tax (Rate) exempts services by way of training or coaching in recreational activities relating to arts or culture or sports. (In case of training or coaching in recreational activities relating to sports, exemption is admissible only when such services are by charitable entities registered under section 12AA of the Income-tax Act) – The words ‘recreational activities’ and ‘arts’ have not been defined in the GST Acts or Notifications issued thereunder.
–
As per the dictionary meaning, ‘Art’ is the expression or application of human creative skill and imagination, typically in a vis

= = = = = = = =

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

= = = = = = = =

interest in students for more advance form of mathematics so as to enhance their thinking capacity and mental development or employing methods of play involving Musical, Visual and specialized effects does not make the activities of the applicant as the training or coaching in recreational activities.
–
Ruling:- M/s. Omnisoft Technologies Private Limited is not entitled to the exemption provided vide Sl. No. 80 of Notification No. 12/2017Central Tax (Rate) dated 28.06.2017 issued under the CGST Act, 2017 and corresponding Notification issued under the GGST Act, 2017 and Sl. No. 83 of Notification No. 9/2017-Integrated Tax (Rate) issued under the IGST Act, 2017. Hence the activity provided by UCMAS using abacus does not qualify for exemption from the payment of Goods and Services Tax. – GUJ/GAAR/R/2018/15 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2017-18/AR/24) Dated:- 23-8-2018 – R.B. MANKODI AND G.C. JAIN, MEMBER Present for the applicant : Shri Dhruvank Parikh, CA The applic

= = = = = = = =

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

= = = = = = = =

ndia to the applicant. It is submitted that UCMAS is a progressively leveled program, wherein students in the age group of 4 to 13 years join in and take about 3 years to complete the program. There are ten levels in the Basic program route (Basic, Elementary A & B, Intermediate A & B, Higher A & B, Advance, and Grand A & B). For those joining the KG program route there are 12 levels (KG 1 to 4, Elementary B, Intermediate A & B, Higher A & B, Advance, Grand A & B). Each level is of approximately 3 months and students need to come to the center once a week for a 2 hour session. They need to practice for about 30 minutes daily when they are home for the next 6 days. 2.2 It is submitted that UCMAS is a child development program based on Visual Arithmetic and Abacus that boosts brainpower in children aged 4-13 years. Along with strengthening math skills, the UCMAS approach promotes whole brain development and establishes foundational building blocks like memory,

= = = = = = = =

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

= = = = = = = =

uild on them progressively throughout grade school. These crucial skills will enable a child to process sensory information and eventually learn to evaluate, analyze, remember, make comparisons and understand cause and effect. Although some cognitive skill development is related to a child's genetic makeup, most cognitive skills are learned. That means thinking and learning skills can be improved with practice and the right training. It is submitted that UCMAS promotes whole brain development by stimulating both sides of the brain using an innovative mental arithmetic program utilizing the Abacus as a teaching tool. By learning to perform mental calculations quickly and accurately, students aged 4-13 expand their mental capacity and develop skills such as multitasking, time management, memory, concentration and problem solving – skills that are crucial to success in all areas of study and in daily life. It is submitted that UCMAS not only leads to greater student proficiency and co

= = = = = = = =

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

= = = = = = = =

n 9, sub-section (1) of Section 11, sub-section (5) of Section 15 and sub-section (1) of Section 16 of Central Goods and Service Tax Act, 2017, notifies different rates of Central GST applicable to supply of recreational, cultural and sporting services supplied in the course of intra-state supply of the said services. Similarly the levy of State Tax on the said supply is governed by Notification No. 11/2017- State Tax (Rate) dated 30th June, 2017 issued by the Government of Gujarat. Corresponding description finds mention in Notification No. 08/2017-Integrated Tax (Rate) dated 28thJune, 2017 when the services are supplied in the course of inter-state supply of the said services for determining the rate of Integrated Tax applicable to the said services. 4.2 It is submitted that Entry No. 80 containing Heading 9996 in Notification No. 12/2017-Central Tax (Rate) dated 28th June, 2017 issued by the Central Government exempts the levy of Central Tax on the Intra-State Supply of Services by

= = = = = = = =

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

= = = = = = = =

ntioned herein above. 4.4 It is submitted that UCMAS Training or Coaching Services provided by the applicant falls under the category of a Recreational Training Service/Activity. The word recreational activity has not been defined in the GST Act specifically. Although, several definitions can be derived for the word Recreational / Recreation through various dictionaries available either in print or in online version. 4.5 The applicant submitted that the UCMAS approach promotes whole brain development and establishes foundational building blocks like memory, concentration, creativity and problem solving – core skills that inspire greater confidence and success in life. Therefore, if certain specialized training is provided to make career in a particular field, and also the course involves specific certification from the institute rendering such training, then the facilitation of such education falls under the ambit of Recreation and development through various unique techniques (can als

= = = = = = = =

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

= = = = = = = =

students. The training imparted is optional and the child is at discretion, whether to opt for it or just continue with his/her regular studies. 4.7 It is submitted that Recreation should not be confined to playing games or watching television. There are a variety of activities which could be called as recreational. Even though, a vast majority of students do not find mathematics or arithmetic very interesting, by employing special methods, the subject which some consider as drudgery can be made interesting and thereby recreational. There are many games which can be played by using mathematics and mathematical concepts. Under UCMAS, the applicant applies various methods to make learning of arithmetical skills enjoyable. 4.8 It is further submitted that Abacus taught under UCMAS which is a recreational activity relates to an art. Art has again not been defined in the GST Act. ABACUS under UCMAS is not merely a method to improve the speed and accuracy of calculations but it is also an ac

= = = = = = = =

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

= = = = = = = =

This comes from the need to understand the theoretical requirements of each calculation and at the same time be aware of the time, and prompting from the teachers. By using the imaginations of the right brain to visualize the abacus in mind, inevitably the powers of visualization would become sharp and clear. Albert Einstein believes that the imagination is important than knowledge, because imagination is the main source of yet to be discovered knowledge. Memory is the ability to store and retrieve the information and experiences. It has been found that the memory in the left brain would not stay long, but an image that is recorded in the right brain would stay on in the mind forever. By stimulating the right brain with mental arithmetic, and in combination with the alertness of the eyes, ears and hands, the ability to store and recall develops together. 4.9 From the above, the applicant submitted that Training Activity performed by the company under UCMAS using Abacus is a recreationa

= = = = = = = =

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

= = = = = = = =

ST/29/2006) = 2009 (5) TMI 70 – CESTAT, BANGALORE, K.K. Academy Pvt. Ltd. Vs. Commissioner of Service Tax, Chennai (Final Order No. 1075-1076/2011 dated 07.07.2011 in Appeal Nos. ST/226/2007 and ST/10/2008) = 2011 (7) TMI 506 – CESTAT, CHENNAI and Abacus Brain Study (P) Ltd. Vs. Commissioner of Central Excise (A), Hyderabad (Final Order No. 63/2011 in Appeal No. ST/349/2010) = 2011 (1) TMI 833 – CESTAT, BANGALORE. 5.2 The applicant submitted that above verdicts of different judicial forums were based on notifications no more in existence, however the analogy and intention of the Government in the Notifications existing / prevailing in the current context seems similar considering the fact that the explanations to the earlier notifications being existed prior to introduction of negative list reflected the intention of the Government to provide exemption to commercial coaching institutes being qualified as recreational one and the meaning thereof according to government was clarified by

= = = = = = = =

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

= = = = = = = =

ainst by the department before Hon ble Supreme Court through Civil Appeal Nos. 2558-2559 of 2012, which have been admitted by the Hon ble Supreme Court on 24.02.2012 and are pending for decision. 6.2 It has been further opined by the Vadodara – I Commissionerate that activity of the applicant cannot be called as art. As per oxford dictionary, art is the expression or application of human creative skill and imagination, typically in a visual form such as painting or sculpture, producing works to be appreciated primarily for their beauty or emotional power. Thus, Art is commonly used to describe something of beauty, or a skill which produces an aesthetic result. 6.3 It has been opined by the Vadodara – I Commissionerate that the activity performed by the applicant is a form of education imparted to the children to develop their interest and skills in mathematics and hence it is an education support service. It is submitted that it is not a system purely based on abacus , which is used to

= = = = = = = =

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

= = = = = = = =

also considered the views of the Central Goods and Services Tax Commissionerate, Vadodara – I. 8. The issue involved in this case is regarding admissibility of exemption provided vide Sl. No. 80 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 issued under the Central Goods and Services Tax Act, 2017 (herein after referred to as the CGST Act, 2017) and corresponding Notification No. 12/2017-State Tax (Rate) dated 30.06.2017 issued under the Gujarat Goods and Services Tax Act, 2017 (herein after referred to as the GGST Act, 2017 ) or Sl. No. 83 of Notification No. 9/2017-Integrated Tax (Rate) issued under the Integrated Goods and Services Tax Act, 2017 (herein after referred to as the IGST Act, 2017 ) to the supply of services being made by the applicant. 9.1The said Sl. No. 80 of Notification No. 12/2017-Central Tax (Rate) reads as follows :- Sl.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition 80 9996 Servic

= = = = = = = =

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

= = = = = = = =

y of calculations or development of mental capabilities, such as, concentration, observation, visualization, imagination and memory cannot be said to fall within the meaning of Art . 9.5 It will also be useful to refer to services covered under Heading 9996 – Recreational, Cultural and sporting services and more specifically Group 99962 – Performing arts and other live entertainment event presentation and promotion services and Group 99963 – Services of performing and other artists as per the scheme of classification of services prescribed vide Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, which are reproduced below. Heading & Group Service Code (Tariff) Service Description Heading No.9996 Recreational, cultural and sporting services Group 99961 Audiovisual and related services ……… Group 99962 Performing arts and other live entertainment event presentation and promotion services 999621 Performing arts event promotion and organization services 99

= = = = = = = =

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

= = = = = = = =

er the GGST Act, 2017 and Sl. No. 83 of Notification No. 9/2017-Integrated Tax (Rate) issued under the IGST Act, 2017 is not admissible to the activities of the applicant. 10. Further, the training imparted by the applicant to create interest in students for more advance form of mathematics so as to enhance their thinking capacity and mental development or employing methods of play involving Musical, Visual and specialized effects does not make the activities of the applicant as the training or coaching in recreational activities. 11. The decisions of Hon ble CESTAT referred to by the applicant pertain to Notification No. 9/2003-Service Tax and 24/2004-Service Tax issued under the Finance Act, 1994 (Service Tax), which are not pari-materia to Sr. 80 of Notification No. 12/2017-Central Tax (Rate). Further, against the decision of Hon ble CESTAT in the case of Abacus Brain Study (P) Ltd. (supra), Civil Appeal Nos. 2558-2559 of 2012 have been filed in the Hon ble Supreme Court, which are

= = = = = = = =

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

= = = = = = = =

GST – States – F. No. 3240/CTD/GST/2018/07 – Dated:- 23-8-2018 – GOVERNMENT OF PUDUCHERRY COMMERCIAL TAXES DEPARTMENT F. No. 3240/CTD/GST/2018/7. Puducherry, dated 23rd August 2018. NOTIFICATION In exercise of the powers conferred by sub-rule (5) of rule 61 of the Puducherry Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), read with section 168 of the Puducherry Goods and Services Act, 2017 (Act No. 6 of 2017) [hereafter in this notification ref

= = = = = = = =

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

= = = = = = = =

Goods and Services Tax – Started By: – Rahul Gawande – Dated:- 22-8-2018 Last Replied Date:- 27-8-2018 – Hello, I am IT Service provider. We provided service to a client of foreign company in India. We have to bill to foreign company who do not have any office in India. How do I bill them? Do I have to add GST, if so at what rate? They will be transferring payment in USD to our bank account. Do I have to pay any Currency Conversion charges to bank? If yes & what rate? Please help. – Reply B

= = = = = = = =

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

= = = = = = = =