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2018 (7) TMI 1758 – CESTAT ALLAHABAD – TMI – Commercial Training & Coaching Services – case of the Revenue is that the appellant themselves are engaged in providing IT Education through the up front companies i.e. M/s APLL – Held that:- The case are not in dispute that the coaching centers are registered coaching center and provide services to their students. The coaching centers are also private limited companies and having separate identity known by the Registrar of Companies – appellant is engaged in only selling of study material to the students of these coaching centers and paying VAT on sale of these study material.
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It cannot be said that these coaching centers or up front companies of the appellant and the appellant is liable to pay service tax on the payment of sale of study material – demand cannot sustain – appeal allowed – decided in favor of appellant. – ST/70817/2018-CU[DB] – FINAL ORDER NO-71643/2018 – Dated:- 26-7-2018 – Mr. Ashok Jindal, Member (Judicial) and M

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mselves are engaged in providing IT Education through these up front companies i.e. M/s APLL. Therefore, it was alleged that all the educational services has been provided by the appellant through their companies the study material has been sold by the appellant is nothing lest it is as gamut of the appellant to avoid payment of service tax on sale of study material related to IT Education services. Therefore, the show cause notice was issued to the appellant to demand service tax on the amount of sale of study material by the appellant on behalf of these three companies mentioned hereinabove under the category of Commercial Coaching or Training Services by invoking the extended period of limitation. The matter was adjudicated. The demand of service tax was confirmed along with interest and penalties were also imposed. Against the said order, the appellant is before us. 3. The learned counsel of the appellant submits that the appellant is selling study materials for the coaching center

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On returned study material, the appellant deducted the certain amount and that amount does not pertain any liability of service tax, as pertains to the activity of sale or purchase of study material by the appellant. It is further submitted that the coaching centers which are held that up front companies of the appellant, are paying the service tax on the fees collected by them from the students directly. In that circumstances, it cannot be said that these coaching centers one up front companies of the appellant. Therefore, no demand of service tax is sustainable against for the activity in question against the appellant. He also submits that for sale of study material, no service tax is payable, as held by this Tribunal in the case of M/s Chate Coaching Classes Pvt. Ltd. Vs Commissioner of Central Excise, Aurangabad reported at 2013 (29) S.T.R. 138 (Tri.-Mum.). 4. On the other hand learned A.R. reiterated the finding of the impugned order. 5. Heard the parties and considered the submi

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2018 (8) TMI 66 – KERALA HIGH COURT – TMI – Condonation of delay in filing appeal – Validity of assessment orders – Form 18 declarations produced by the assessee being not genuine – concessional rate of tax – Held that:- We need not look into the facts or the sustainability of Exhibit P4 as of now, since the appellant is guilty of laches on account of the long delay. The appellant is said to have filed an appeal itself in the year 2011, belatedly too. The pre-condition of deposit of the tax demanded was also not satisfied. The appellant also did not choose to approach this Court under Article 226 of the Constitution at that point – The writ petition itself is filed in the year 2018.
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The appeal cannot be entertained and is thus dismis

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was brought into effect in 2007 and the subject assessments were completed in 2010. 2. The assessment orders are of the years 2002-03 and 2003-04. The allegation against the appellant-assessee was also of Form 18 declarations produced by the assessee being not genuine and that the appellant could not have availed the concessional rate of tax. On assessments being completed, there was a belated appeal filed before the Tribunal in the year 2013. The provision under Section 17D required the assessment to be completed by a team of officers, called Fast Track Team , and an appeal is provided only to the Tribunal. The appeal also had a pre-condition of deposit of the tax demanded on assessment. These were measures brought out only to specificall

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he learned Government Pleader, however, would point out that the mere fact that the other dealer had accounted the transaction would not absolve the appellant from the liability especially since the allegation was of the Form 18 produced being bogus insofar as the transactions not having actually happened and the goods moved in accordance with the said documents. 4. We need not look into the facts or the sustainability of Exhibit P4 as of now, since the appellant is guilty of laches on account of the long delay. The appellant is said to have filed an appeal itself in the year 2011, belatedly too. The pre-condition of deposit of the tax demanded was also not satisfied. The appellant also did not choose to approach this Court under Article 22

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2018 (8) TMI 89 – CESTAT MUMBAI – 2018 (362) E.L.T. 853 (Tri. – Mumbai – Condonation of delay of 21 days in filing appeal – Held that:- The ground stated in the appeal memo that the order was sent to the factory office that was received by the security personnel is not a convincing ground in the sense that such important registered letter cannot be dealt in such casual manner and assigned to the security personnel to handle the same and it appears improbable that such letter would take more than 3 weeks to travel a distance of 20 km to reach its head office – Therefore no illegality or infirmity is found in the order of Commissioner (Appeals).
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Appeal dismissed – decided against appellant. – Appeal No. E/86405/2018 – Order No. A/86978 / 2018 – Dated:- 26-7-2018 – Hon ble Dr. Suvendu Kumar Pati, Member ( Judicial ) Shri G.P. Pingle, Consultant for the appellant Shri H.M. Dixit, AC (AR) for the respondent ORDER The appellant M/s Kagaz Packaging has brought this appeal against the o

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of order-in-original and submit the reasons for delay. After such compliance, the appeal before the Commissioner (Appeals) was again dismissed on rejection of delay condonation petition on the ground that sufficient cause was not shown. The ld. Counsel further submitted that apart from scrutinisation of the order passed by the Commissioner (Appeals) concerning refusal to condone delay, the case can also be heard on merit on the basis of Board circular no. 579/16/2001 prescribing procedure in respect of removal of goods by the consignor and receipt of the goods by the consignee as well as procedure dealing warehousing certificate in which appellant being consignor, is required to obtain copy of AR3 duly signed by the consignee in proof of receipt of goods at his warehouse and get released from the obligation. 3. Ld. AR for the department on the other hand, supported the rationality of the order passed by the Commissioner (Appeals). 4. Heard both sides and perused the case records. It i

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anything wrong in the impugned order passed by the Commissioner. The matter was remitted back to the Commissioner (Appeals) only to provide an opportunity to the appellant to examine the evidence of receipt of order-in-original and the reason for delay (in the said order no. A/86728/16 SMB dated 14.03.2016). The second order of the Commissioner refusing to condone the delay also reveals that acknowledgement of receipt dates 09.03.2010 though in the first order he took the date of receipt as the date on which acknowledgement was received by the department. Therefore, if the actual data is to be taken as the date of receipt of order-in-original, it is delayed about a week over 21 days. 5. In the delay condonation petition, which the appellant stated before the Commissioner that some security personnel had received the order at the factory which is situated 20 kms. away from the office and the delay was to be attributed to such fact of receipt by it in the factory. Such a plea was not tak

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ocess a convenient lever to retain the illegal-gains indefinitely. We have no hesitation to say that a person, whose case is based on falsehood, has no right to approach the court. He can be summarily thrown out at any stage of the litigation. 7. In Indian Bank Vs. Satyam Fibres (India) Pvt. Ltd. (1996) 5 SCC 550 it was held by the Hon'ble Supreme Court has follows:- since fraud affects the solemnity irregularity and orderly based of the proceedings of the Court and also amounts to the abuse of the process of court, the court have been held to have an inherent power to set aside an order obtained by fraud practice upon that court. Similarly where the court is misled by the party or the court itself counts the mistake which prejudice the party the court as inherent power to recall its order. 8. Though the above pronouncements were held in respect of civil disputes, it has a bearing on the case in hand for the reason that initial period of about 28 days delay was suppressed by the ap

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GST – States – F.12(56)FD/Tax/2017-Pt-II-077 – Dated:- 26-7-2018 – GOVERNMENT OF RAJASTHAN FINANCE DEPARTMENT (TAX DIVISION) NOTIFICATION Jaipur, dated: July 26, 2018 In exercise of the powers conferred by sub-section (1) of section 11 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), the State Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-state supplies of handicraft goods, the description of which is specified in column (3) of the Table given below, falling under the tariff item, subheading, heading or Chapter, as specified in the corresponding entry in column (2), from so much state tax leviable thereon under section 9 of the said Act as is in excess of the rate specified in column (4) of the said Table. Explanation: For the purpose of this notification, the expression handicraft goods means Goods predominantly made by hand even though some tools or machinery

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4 90 Art ware of cork [including articles of sholapith] 6% 7. 4601 and 4602 Mats, matting and screens of vegetable material, basketwork, wickerwork and other articles of vegetable materials or other plaiting material, articles of loofah (including of bamboo, rattan, canes and other natural fibres, dry flowers (naturally dried), articles thereof, ringal, raambaan article, shola items, Kouna/chumthang (water reeds) crafts, articles of Water hyacinth, korai mat] 2.5% 8. 4823 Articles made of paper mache 2.5% 9. 5607, 5609 Coir articles 2.5% 10. 5609 00 20, 5609 00 90 Toran, Doorway Decoration made from cotton yarn or woollen yarn and aabhala (mirror) with or without hanging flaps. 2.5% 11. 57 Handmade carpets and other handmade textile floor coverings (including namda/gabba) 2.5% 12. 5804 30 00 Handmade lace 2.5% 13. 5805 Hand-woven tapestries 2.5% 14. 5808 10 Hand-made braids and ornamental trimming in the piece 2.5% 15. 5810 Hand embroidered articles 2.5% 16. 6117, 6214 Handmade/hand em

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opper alloys, electro plated with nickel/silver 6% 30. 7616 99 90 Aluminium art ware 6% 31. 8306 Bells, gongs and like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; (including Bidriware, Panchlogaartware, idol, Swamimalai bronze icons, dhokrajaali) 6% 32. 9405 10 Handcrafted lamps (including panchloga lamp) 6% 33. 9401 50, 9403 80 Furniture of bamboo, rattan and cane 6% 34. 9503 Dolls or other toys made of wood or metal or textile material [incl wooden toys of sawantwadi, Channapatna toys, Thanjavur doll) 6% 35. 9504 Ganiifa card 6% 36. 9601 Worked articles of ivory, bone, tortoise shell, horn, antlers, coral, mother of pearl, seashell other animal carving material 6% 37. 9602 Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac) 6% 38. 9701 Hand paint

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GST – States – F.12(56)FD/Tax/2017-Pt-III-075 – Dated:- 26-7-2018 – GOVERNMENT OF RAJASTHAN FINANCE DEPARTMENT (TAX DIVISION) NOTIFICATION Jaipur, dated: July 26, 2018 In exercise of the powers conferred by sub-section (1) of section 11 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), the State Government, on the recommendations of the Council, hereby makes the following amendments in this department's notification number F.12(56)FD/Tax/2017-Pt-I-41 dated 29th June, 2017, as amended from time to time, with effect from 27 July, 2018, namely:- AMENDMENTS In the Schedule of the said notification, – (i) after the existing serial number 92 and entries thereto, the following new serial number 92A and entries thereto sha

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ies made of stone, marble or wood 114B. 46 Khali Dona; goods made of sal leaves, siali leaves, sisal leaves, sabai grass, including sabai grass rope ; (v) for the existing serial number 117 and entries thereto, the following shall be substituted, namely:- 117. 48 or 4907 Rupee notes or coins when sold to Reserve Bank of India or the Government of India (vi) after the existing serial number 132 and entries thereto, the following new serial number 132A and entries thereto shall be inserted, namely:- 132A. 53 Coir pith compost other than those put up in unit container and, – (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where a

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GST – States – F.12(56)FD/Tax/2017-Pt-III-070 – Dated:- 26-7-2018 – GOVERNMENT OF RAJASTHAN FINANCE DEPARTMENT (TAX DIVISION) NOTIFICATION Jaipur, dated: July 26, 2018 In exercise of the powers conferred by sub-section (1) of section 11 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), the State Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following amendments in this department's notification number F. 12(56)FD/Tax/2017-Pt-I-50 dated 29th June, 2017, as amended from time to time, with effect from 27 July, 2018, namely:- AMENDMENTS In the said notification, (i) in the Table,- (a) against serial number 4, in column (3), the the existing expression Central Government, State Government, Union territory, local authority or shall be deleted; (b) against serial number 5, in column (3), the existing expression Central Government, State Government, Union territory, local au

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cultural use. Nil Nil ; (e) against serial number 14, in column (3), for the existing expression declared tariff , the expression value of supply shall be substituted; (f) against serial number 19A, in column (5), for the existing number 2018 , the number 2019 shall be substituted; (g) against serial number 19B, in column (5), for the existing number 2018 , the number 2019 shall be substituted; (h) after the existing serial number 24 and entries thereto, the following new serial number 24A and entries thereto shall be inserted, namely:- 24A Heading 9967 or Heading 9985 Services by way of warehousing of minor forest produce. Nil Nil ; (i) after the existing serial number 31 and entries thereto, the following new serial numbers 31A and 31B and entries thereto shall be inserted, namely:- 31A Heading 9971 or Heading 9991 Services by Coal Mines Provident Fund Organization to persons governed by the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (Central Act No. 46 of 1948)

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s Authority of India (FSSAI) to Food Business Operators. Nil Nil ; (m) after the existing serial number 55 and entries thereto, the following new serial number 55A and entries thereto shall be inserted, namely:- 55A Heading 9986 Services by way of artificial insemination of livestock (other than horses). Nil Nil ; (n) after the existing serial number 65A and entries thereto, the following new serial number 65B and entries thereto shall be inserted, namely:- 65B Heading 9991 or any other Heading Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the mining lease holders. Explanation: mining lease holder means a person who has been granted mining lease, quarry lease or license or other mineral concession under the Mines and Minerals (Development and Regulation) Act, 1957 (Central Act No. 67 of 1957), the rules made there under or the rules ma

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

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GST – States – F.12(56)FD/Tax/2017-Pt-III-069 – Dated:- 26-7-2018 – GOVERNMENT OF RAJASTHAN FINANCE DEPARTMENT (TAX DIVISION) NOTIFICATION Jaipur, dated: July 26, 2018 In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), the State Government, on the recommendations of the Council and on being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in this department's notification number F.12(56)FD/Tax/2017-Pt-I-49 dated 29th June, 2017, as amended from time to time, with effect from 27 July, 2018, namely:- AMENDMENTS In the Table of said notification,- (i) against serial number 7, in column (3), – (a) for the existing item (i) and entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: – (i) Supply, by way of or as

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r the serial number 7 (v) Explanation 3: declared tariff' includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation number (iv)] (ia) Supply, of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation number (iv)] (b) in items (ii), (vi) and (viii),- (A) for the existing expression declared tariff', wherever occurring, the expression value of supply

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multimodal transporter means a person who,- (A) enters into a contract under which he undertakes to perform multimodal transportation against freight, and; (B) acts as principal, and not as an agent either of the consignor, or consignee or of the carrier participating in the multimodal transportation and who assumes responsibility for the performance of the said contract. 6 – (vii) Goods transport services other than (i), (ii), (iii), (iv), (v) and (vi) above. 9 – ; (iii) for the existing serial number 22 and entries relating thereto, the following shall be substituted, namely:- 22 Heading 9984 (Telecommunications, broadcasting and information supply services.) (i) Supply consisting only of e-book Explanation: For the purposes of this notification, e-books means an electronic version of a printed book (falling under tariff item 4901 in the First Schedule to the Customs Tariff Act, 1975 (Central Act No. 51 of 1975)) supplied online which can be read on a computer or a hand held device.

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2018 (8) TMI 393 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (15) G. S. T. L. 614 (App. A. A. R. – GST) – Classification of product, “SIKA Block Joining Mortar” under Tariff Heading 3214 90 90 – whether 'SIKA Block Joining Mortar' manufactured and marketed by the Appellant, is to be classified under Tariff Head 3214 90 10, which the Appellant was declaring voluntarily for the past few years and which the WBAAR held as 3214 90 90 to be the correct classification or Tariff Head 3824 50 90, which the Appellant now insists is the correct classification? – Challenge to Advance Ruling.
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Held that:- It is clear that the 'SIKA Block Joining Mortar' is non-refractory and that it is not used for preparation of surfaces – Considering the nature, use and commercial identity of the item in question and, notwithstanding the Appellant's earlier voluntary declaration about the classification of the item, its classification is to be accepted under Tariff Item 3214 instead, it is

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ts used in building construction. One such product is manufactured and marketed by it under the brand name of SIKA Block Joining Mortar and is said to be used for joining masonry units like AAC blocks, Concrete blocks, fly ash bricks, etc. The Appellant had approached the West Bengal Authority for Advance Ruling for determining the proper classification of SIKA Block Joining Mortar . The West Bengal Authority for Advance Ruling (hereinafter referred to as WBAAR ) after hearing the matter and examining the documents, vide its Ruling dated 09.04.2018, decided that: SIKA Block Joining Mortar' is to be classified under tariff item 3214 90 90 of the Customs Tariff Act, 1975, and, therefore, taxable under Serial no. 24 of Schedule IV vide Notification No. 01/2017-Central Tax (Rate) dated 28/06/2017 under CGST Act, 2017 and 1125-FT dated 28/06/2017 under WBGST Act, 2017 It is against this Ruling that the Appellant has filed the instant appeal under Section 100(1) of the West Bengal Goods

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e Appellant relied on the order of the Commissioner of Sales Tax, West Bengal, passed in case no. 24X/PRO/VAT/16/303 in the matter of M/S UAL Industries Ltd. where the Commissioner of Sales Tax, West Bengal, finds 'dry mix mortar', made by mixing sand, fly ash, OPC/PPC Cement, hydrated lime and polymer additives. b. The Appellant argued that as per common parlance the product is classifiable as mortar under Tariff Heading 3824 50 90 citing the following judgements: i. Porritts & Spencer (Asia) Ltd. Vs. State of Haryana [1983(13) ELT of 607 (SC) ii. Asian Paints India Ltd v. Collector of Central Excise [1998 taxmann.com 6(SC)] iii. Plasmac Machine Manufacturing Co. (P) Ltd v. Collector of Central Excise [1991 taxmann.com 6 (SC)] iv. Dabur Industries Ltd vs. CCE [2005] 4 SCC 9, v. Commissioner of Central Excise v. Wockhardt Life Sciences Ltd (2012) 5 SCC 585. c. By citing the judgement of Morocco (India) Ltd vs. Collector of Customs, Madras [1997(91) ELT 126 (Tribunal)] &

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keted by the Appellant, is to be classified under Tariff Head 3214 90 10, which the Appellant was declaring voluntarily for the past few years and which the WBAAR held as 3214 90 90 to be the correct classification or Tariff Head 3824 50 90, which the Appellant now insists is the correct classification. 5. The Appellant admitted that it had earlier classified their product 'SIKA Block Joining Mortar' under Tariff Head out of ignorance and it made no difference as the duty/tax payable under both the heads, that is Tariff Head 3214 90 10 and Tariff Head 3824 50 90, was the same. Under the GST Act, however, there is a difference of 10 % which is pushing them out of market as its competitors are supplying the similar products charging lower tax. Following is the comparison of duty/tax in pre- and post- GST regime: Tariff Heading Duty (Prior to GST) Tax Rate under GST 38245090 Excise: 12.5%, VAT: 14.5% 18% 32149010 Excise: 12.5%, VAT: 14.5% 28% 6. The Appellant submitted that 'S

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#39; putty, grafting putty, resin cements, caulking compounds and other mastics; painters' fillings 3214.90 Other 3214.90.10 Non-refractory surfacing preparations 3214.90.20 Resin cement 3214.90.90 Other 3824 Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included. 3824.10 Prepared binders for foundry moulds or cores 3824.10.00 Prepared binders for foundry moulds or cores 3824.30 Non-agglomerated metal carbides Mixed together or with metallic binders 3824.30.00 Non-agglomerated metal carbides mixed together or with metallic binders 3824.40 Prepared additives for cements, mortars or concretes 3824.40.10 Damp proof or Water proof compounds 3824.40.90 Other 3824.50 Non-refractory mortars and concretes 3824.50.10 Concretes ready to use known as "Ready-mix concrete (RMC)" 3824.50.90 Other 8. The Appellant submitted that

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2018 (8) TMI 694 – CESTAT MUMBAI – TMI – Condonation of delay in filing appeal – Held that:- It cannot be said that any misstatement is made in the COD. The petition also reveal that the management took immediate action upon the fact of such order in appeal was brought to its notice by their Chartered Accountant.
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When substantial justice and technical consideration are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non-deliberate delay and there is no presumption that delay was occasioned deliberately.
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Delay of 38 days in filing appeal before this Tribunal is condoned – appeal is admitted for hearing. – Ap

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d period. He further cited a case law reported in 1987 (28) ELT 15 (SC) and submitted that he has a fair case since payment of duty demanded along with interest was made much before issue of show-cause notice and for just technical consideration substantial justice pitted against it should not be brushed aside for such technical consideration. Therefore, he submitted to give lenient consideration to the delay condonation petition. 3. Ld. AR on the other hand, submitted that delay was much more than 38 days as referred by the appellant and the ground mentioned in the petition should not be taken as sufficient ground to condone delay as it was incumbent upon the management to protect the interest of the company which was negligent on its part

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bstantial justice and technical consideration are pitted against each other, cause of substantial justice deserves to be preferred for the other side cannot claim to have vested right in injustice being done because of a non-deliberate delay and there is no presumption that delay was occasioned deliberately. 5. In another decision, reported in (2001) 9 SCC 10C, Hon ble Supreme Court has observed that where the delay is of a few days, the court should adopt a liberal approach. A distinction must be made between a case where the delay is inordinate and a case where the delay is of few days. Whether the delay is inordinate, the consideration of prejudice to the opposite party will be a relevant factor calling for a more cautious approach, but

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Seeks to insert explanation in an item in notification No. 11/2017 – Satae Tax (Rate) by exercising powers conferred under section 11(3) of Chhattisgarh Goods and Services Tax Act, 2017 – GST – States – 17/2018 – State Tax (Rate) – Dated:- 26-7-2018 – Government of Chhattisgarh Commercial Tax Department Mantralaya, Mahanadi Bhawan, Naya Raipur Notification No. 17/2018 – State Tax (Rate) Naya Raipur, Dated : 26th July, 2018 No. F- 10-39/2018/CT/V(61) – In exercise of the powers conferred by sub-section (3) of section 11 of the Chhattisgarh Goods and Services Tax Act, 2017 (7 of 2017), the State Government, on the recommendations of the Council, and on being satisfied that it is necessary so to do for the purpose of clarifying the scope and a

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2018 (8) TMI 875 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA – 2018 (15) G. S. T. L. 718 (A. A. R. – GST) – Supplies to SEZ – non-alcoholic beverages – input tax credits relating to SEZ supplies – Whether supply of non-alcoholic beverages to SEZ units using coffee vending machines is in the nature of zero rated supply as defined under Section 16 of the IGST Act 2017? – Held that:- Each SEZ Unit is allowed to carry out predefined activities (termed as 'authorised operations') to be eligible to avail the benefits of being in the Special Zone. The activities to be carried out have, therefore, to be strictly in consonance with the authorized operations certified by the proper office of the SEZ. Though the IGST Act, in Section 16(1)(b) does not categorically say that the supplies of goods and services should be for authorized operations, it is implicit therein when it says that the supplies are for the SEZ Developer or SEZ Unit. Therefore the litmus test for any supply to be termed as zero-

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es by the applicant, do not qualify as zero rated supply, as defined under Section 16 of the IGST Act 2017. – ADVANCE RULING NO. KAR/ADRG 13 of 2018 Dated:- 26-7-2018 – Sri. Harish Dharnia, Joint Commissioner of Central Tax, Member (Central Tax) And Dr. Ravi Prasad M.P. Joint Commissioner of Commercial Taxes Member (State Tax) For The Respondent : S. Vishnumurthy, CA RULING 1. M/s Coffee Day Global Limited, 23/2, 6th Floor, Vittal Mallya Road, Bangalore – 560 001, having GSTIN number 29AABCA5291P1Z3, have filed an application, on 18.01.2018, for advance ruling under Section 97 of CGST Act,2017, KGST Act, 2017 & IGST Act, 2017 read with rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01. They also enclosed copy of challan for ₹ 5,000/- bearing CIN number SBIN18012900060485 dated 11.01.2018. 2. The Applicant is engaged in supply of non-alcoholic beverages to SEZ units using coffee vending machines and undertakes the following types of transactions: (a) The a

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e beverages consumed by employees as being used for authorized operations in SEZ & therefore it is possible to argue that such supplies are not zero rated supplies. However the provisions of the Act have the ability to silence the provisions contained in the rules to the extent they are inconsistent with the Act. Therefore, the supplies to the SEZ units are in the nature of zero rated supplies not withstanding that they are not used for authorized operations. Accordingly, the applicant is eligible to claim refund of the tax paid on inputs used for such supplies. The applicant also contends that they are entitled to make the said supplies under a bond or letter of undertaking as provided in Rule 89 of CGST Rules 2017. In view of the above, the applicant filed this instant application seeking advance ruling on the following issue : Whether supply of non-alcoholic beverages to SEZ units using coffee vending machines is in the nature of zero rated supply as defined under Section 16 of

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ncluding beverages and ingredients for beverages, if literal interpretation is applies. (e) SEZ obtains separate registration as an independent vertical of a person and suppliers to SEZ mention such GSTIN. Accordingly invoices will show SEZ as the recipient. Thus no further proof is required to show that it is a supply made to SEZ. (f) Once the supplies are zero rated, refund of input tax credit of IGST paid on such supplies is automatic. The conditions such as they should be authorized operations etc can be treated as ultravires the statue. FINDINGS & DISCUSSION: 5. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri S Vishnumurthy, Chartered Accountant during the personal hearing. We also considered the issue/transaction(s) involved on which advance ruling is sought by the applicant, relevant facts & the applicant's interpretation of law. 6. The Applicant seeks advance ruling on the questi

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ut in the Special Economic Zone and also in the Units located therein have to be in accordance with the authorisation to be given by the Central Government, in terms of Section 4(2) of the SEZ Act, 2005. Further Section 15(9) of the said Act further requires that the SEZ Unit shall carry out only the authorised operations in the Unit. These provisions are incorporated in the definition of 'authorised operations'under Section 2(c) of the SEZ Act, 2005. 7.4 The definition of the authorised operations and the provisions of Section 4(2) and Section 15(9) clearly establish that the Units operating in the SEZ are required to undertake well defined activities. Such activities are termed as authorised operations. The Act also provides that the proper officer shall certify the authorised activities. It thus flows that any special benefit accruing to the Units located in the SEZ shall be strictly in respect of the authorised operations only. 8. In the backdrop of the various definitions

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y supply'would cover everything, including beverages and ingredients for beverages. 8.3 The applicant has used the term 'any supply'. We find that this term is not used anywhere in the statute. The word 'any'has been used only once in Section 16(1) of IGST Act, 2017. It reads '(1) zero-rated supply means any of the following supplies of goods or services or both, namely:- …'. This sentence is followed by two options (a) and (b) and there is an 'or'between them. The word 'any'refers to either (a) or (b). Had the word 'any'been placed at the beginning of the sentence in (b) to read 'any supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone Unit'then the contention of the applicant would have been worth consideration. The statute has not used this word in (b). Therefore the interpretation of the applicant is not correct. 8.4 In this regard we once again refer to the provisions

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mount.-(1) Any person, except the persons covered under notification issued under section 55, claiming refund of any tax, interest, penalty, fees or any other amount paid by him, other than refund of integrated tax paid on goods exported out of India, may file an application electronically in FORM GST RFD-01through the common portal, either directly or through a Facilitation Centre notified by the Commissioner: Provided that any claim for refund relating to balance in the electronic cash ledger in accordance with the provisions of sub-section (6) of section 49 may be made through the return furnished for the relevant tax period in FORM GSTR-3 or FORM GSTR-4 or FORM GSTR-7, as the case may be: Provided further that in respect of supplies to a Special Economic Zone unit or a Special Economic Zone developer, the application for refund shall be filed by the – (a) supplier of goods after such goods have been admitted in full in the Special Economic Zone for authorised operations, as endorse

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2018 (8) TMI 1017 – CESTAT ALLAHABAD – TMI – Commercial Training & Coaching Services – sale of study material by the appellant on behalf of the companies, the product of whom were sold by the appellant – Held that:- The facts of the case are not in dispute that the coaching centers are registered coaching center and provide services to their students. The coaching centers are also private limited companies and having separate identity known by the Registrar of Companies.
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The appellant is engaged in only selling of study material to the students of these coaching centers and paying VAT on sale of these study material – it cannot be said that these coaching centers or up front companies of the appellant and the appellant is liable to pay service tax on the payment of sale of study material.
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Appeal allowed – decided in favor of appellant. – APPEAL No.ST/70817/2018-CU[DB] – ST/A/71643/2018-CU[DB] – Dated:- 26-7-2018 – Mr. Ashok Jindal, Member (Judicial) And Mr. Anil G. Shakka

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ed in providing IT Education through these up front companies i.e. M/s APLL. Therefore, it was alleged that all the educational services has been provided by the appellant through their companies the study material has been sold by the appellant is nothing lest it is as gamut of the appellant to avoid payment of service tax on sale of study material related to IT Education services. Therefore, the show cause notice was issued to the appellant to demand service tax on the amount of sale of study material by the appellant on behalf of these three companies mentioned hereinabove under the category of Commercial Coaching or Training Services by invoking the extended period of limitation. The matter was adjudicated. The demand of service tax was confirmed along with interest and penalties were also imposed. Against the said order, the appellant is before us. 3. The learned counsel of the appellant submits that the appellant is selling study materials for the coaching centers which are provi

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material, the appellant deducted the certain amount and that amount does not pertain any liability of service tax, as pertains to the activity of sale or purchase of study material by the appellant. It is further submitted that the coaching centers which are held that up front companies of the appellant, are paying the service tax on the fees collected by them from the students directly. In that circumstances, it cannot be said that these coaching centers one up front companies of the appellant. Therefore, no demand of service tax is sustainable against for the activity in question against the appellant. He also submits that for sale of study material, no service tax is payable, as held by this Tribunal in the case of M/s Chate Coaching Classes Pvt. Ltd. Vs Commissioner of Central Excise, Aurangabad reported at 2013 (29) S.T.R. 138 (Tri.-Mum.). 4. On the other hand learned A.R. reiterated the finding of the impugned order. 5. Heard the parties and considered the submission in details.

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GST – States – FIN/REV-3/GST/1/08 (Pt-1)/220 – Dated:- 26-7-2018 – GOVERNMENT OF NAGALAND FINANCE DEPARTMENT (REVENUE BRANCH) F.NO.FIN/REV-3/GST/1/08 (Pt-1)/220 Dated: 26th July, 2018 NOTIFICATION In exercise of the powers conferred by sub-section (1) of section 11 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the State Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of Nagaland, Finance Department (Revenue Branch) F.NO.FIN/REV-3/GST/1/08 (Pt-1) E , dated the 30th June, 2017, namely:- In the said notification,- (1) in the Schedule, (i) after S. No. 92 and the entries relating thereto, the following serial number and the entries shall be i

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ncluding sabai grass rope 114B 44 or 68 Deities made of stone, marble or wood ; (v) for S. No. 1 17 and the entries relating thereto. the following shall be substituted, namely 117 48 or 4907 or 71 Rupee notes or coins when sold to Reserve Bank of India or the Government of India , (vi) after S. No. 132 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: – 132A 53 Coir pith compost other than those put up in unit container and, (a) bearing a registered brand name; or (b) bearing a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone volun

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GST – States – FIN/REV-3/GST/1/08 (Pt-1)/219 – Dated:- 26-7-2018 – GOVERNMEN V OF NAGALAND FINANCE DEPARTMENT (REVENUE BRANCH) F.NO.FIN/REV-3/GST/1/08 (Pt-1)/219 Dated: 26th July, 2018 NOTIFICATION In exercise of the powers conferred by sub-section (1) of section 9 of the Nagaland Goods and Services Tax Act, 201 7 (4 of 2017), the State Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of Nagaland, Finance Department (Revenue Branch) F.NO.FIN/REV-3/GST/1/08 (Pt-1) D the 30th June, 2017, namely: In the said notification, – (A) in Schedule I-2.5%, (i) after S. No. 102 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: 102A. 2207 Ethyl alcohol supplied to Oil Marketing Companies for blending with motor spirit (petrol) ; (i) in S. No. 123, for entries in columns (2) and (3), the following entries shall be substituted, namely: (2) (3) 2515 (except 2515 1210, 25

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ng accessories or cap/topi, knitted or crocheted, of sale value not exceeding ₹ 1000 per piece ; (viii) in S. No. 264, for the entry in column (3), the entry Biomass briquettes or solid bio fuel pellets , shall be substituted; (B) in Schedule II-6%, – (i) S. No. 57B and the entries relating thereto shall be omitted; (ii) after S. No. 96 and the entries relating thereto, the following serial numbers and the entries shall be inserted, namely: – 96A 4409 Bamboo flooring ; (iii) in S. No. 146, in the entry in column (3), the words except the items covered in 219 in Schedule II , shall be inserted in the end; (iv) S. No. 147 and the entries relating thereto shall be omitted; (v) after S.No. 185 and the entries relating thereto, the following serial number and the entries shall be inserted, namely:- 185A 7419 99 30 Brass Kerosene Pressure Stove ; (vi) after S. No. 195 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: – 195AA 8420 H

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dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter 52B 3209 Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in an aqueous medium 52C 3210 Other paints and varnishes (including enamels, lacquers and distempers); prepared water pigments of a kind used for finishing leather ; (iii) after S. No. 54A and the entries relating thereto, the following serial number and the entries shall be inserted, namely:- 54B 3214 Glaziers' putty, grafting putty, resin cements, caulking compounds and other mastics; painters' fillings; non-refractory surfacing preparations for facades, indoor walls, floors, ceilings or the like ; (iv) in S. No. 137, in column (3), after the words, or end-jointed the words and brackets, [other than bamboo flooring] shall be added; (v) in S. No. 177E, in column (3), the words except the items covered in Sl. No. 123 in Schedule I ,

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ely:- 376AA 8507 60 00 Lithium-ion Batteries 376AB 8508 Vacuum cleaners 376AC 8509 Electro-mechanical domestic appliances, with self-contained electric motor, other than vacuum cleaners of heading 8508 [other than wet grinder consisting of stone as a grinder] 376AD 8510 Shavers, hair clippers and hair-removing appliances, with self-contained electric motor ; (xi) after S. No. 378 and the entries relating thereto, the following serial number and the entries shall be inserted, namely:- 378A 8516 Electric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electro thermic hair-dressing apparatus (for example, hair dryers, hair curlers, curling tong heaters) and hand dryers; electric smoothing irons; other electro-thermic appliances of a kind used for domestic purposes; electric heating resistors, other than those of heading 8545 ; (xii) after S. No. 383B and the entries relating thereto, the following serial number and

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d the entries relating thereto, the following serial number and the entries shall be inserted, namely:- 403A 8716 Trailers and semi-trailers; other vehicles, not mechanically propelled; parts thereof [other than Self-loading or self-unloading trailers for agricultural purposes, and Hand propelled vehicles (e.g. hand carts, rickshaws and the like); animal drawn vehicles] ; (xvi) in S. No. 446, for entries in columns (2) and (3), the following entries shall be substituted, namely: (2) (3) 9607 20 00 Parts of slide fasteners ; (xvii) after S. No. 449A and the entries relating thereto, the following serial number and the entries shall be inserted, namely:- 449AA 9616 Scent sprays and similar toilet sprays, and mounts and heads therefor; powder-puffs and pads for the application of cosmetics or toilet preparations ; (D) in Schedule-IV-14%, (i) S. Nos. 20, 21, 22, 24 and the entries relating thereto, shall be omitted; (ii) S. No. 120, and the entries relating thereto, shall be omitted; (iii)

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Seeks to insert explanation in an item in notification No. F.NO.FIN/REV3/GST/1/(Pt-1) “N” dated 30th June,2017 – GST – States – FIN/REV-3/GST/1/08 (Pt-1)/218 – Dated:- 26-7-2018 – GOVERNMENT OF NAGALAND FINANCE DEPARTMENT (REVENUE BRANCH) F.NO.FIN/REV-3/GST/1/08 (Pt-1I)/218 NOTIFICATION Dated: 26th July, 2018 In exercise of the powers conferred by sub-section (3) of section 11 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the State Government, on the recommendations of the Counci

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GST – States – FIN/REV-3/GST/1/08 (Pt-1)/215 – Dated:- 26-7-2018 – GOVERNMENT OF NAGALAND FINANCE DEPARTMENT (REVENUE BRANCH) F.NO.FIN/REV-3/GST/1/08 (Pt-1)/215 Dated: 26th July, 2018 NOTIFICATION In exercise of the powers conferred by sub-section (1) of section 11 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the State Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of Nagaland, Finance Department (Revenue Branch) F.NO.FIN/REV-3/GST/1/08 (Pt-1) O dated the 30th June, 2017, namely:- In the said notification, (i) in the Table, – (a) against serial number 4, in the entry in column (3), the words Central Government, State Government, Union territory, local authority or shall be omitted; (b) against serial number 5, in the entry in column (3), the words Central Government, State Government, Union territory, local au

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ltural use. Nil Nil ; (e) against serial number 14, in the entry in column (3), for the words declared tariff', the words value of supply shall be substituted; (f) against serial number 19A, in the entry in column (5), for the figures 2018 , the figures 2019 shall be substituted; (g) against serial number 19B, in the entry in column (5), for the figures 2018 , the figures 2019 shall be substituted; (h) after serial number 24 and the entries relating thereto, the following serial number and entries shall be inserted, namely: – (1) (2) (3) (4) (5) 24A Heading 9967 or Heading 9985 Services by way of warehousing of minor forest produce. Nil Nil ; (i) after serial number 31 and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: – (1) (2) (3) (4) (5) 31A Heading 9971 or Heading 9991 Services by Coal Mines Provident Fund Organisation to persons governed by the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948). Nil

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Standards Authority of India (FSSAI) to Food Business Operators. Nil Nil ; (m) after serial number 55and the entries relating thereto, the following serial number and entries shall be inserted, namely: – (1) (2) (3) (4) (5) 55A Heading 9986 Services by way of artificial insemination of livestock (other than horses), Nil Nil ; (n) after serial number 65A and the entries relating thereto, the following serial number and entries shall be inserted, namely: – (1) (2) (3) (4) (5) 65B Heading 9991 or any other Heading Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the mining lease holders. Explanation. – mining lease holder means a person who has been granted mining lease, quarry lease or license or other mineral concession under the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1 957), the rules made thereunder or the rule

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

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GST – States – FIN/REV-3/GST/1/08 (Pt-1)/214 – Dated:- 26-7-2018 – GOVERNMENT OF NAGAIÄND (REVENUE BRANCH) F.NO.FIN/REV-3/GST/1/08 (Pt-1)/214 Dated: 26th July, 2018 NOTIFICATION In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the State Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of Nagaland, Finance Department (Revenue Branch) F.NO.FIN[REV-3/GST/1/08 N dated the 30th June, 2017, namely In the said notification, in the Table, (i) against serial number 7, in column (3),- (a) for item (i)and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: – (3) (4) (5) (i) Supply, by way of or as part of an

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). Explanation 3.- declared tariff' includes charges for all amenities provided in the unit of accommodation (given on rent for stay) like furniture, air conditioner, refrigerators or any other amenities, but without excluding any discount offered on the published charges for such unit. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] (ia) Supply, of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms. 2.5 Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no. (iv)] ; (b) in items (ii), (vi) and (viii),- (A) for the words declared tariff wherever they occur, the words value of supply shall be substituted; (B) the Explanation shall be

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nters into a contract under which he undertakes to perform multimodal transportation against freight; and (B) acts as principal, and not as an agent either of the consignor, or consignee or of the carrier participating in the multimodal transportation and who assumes responsibility for the performance of the said contract. 6 – (vii) Goods transport services other than (i), (ii), (iii), (iv), (v) and (vi) above. 9 – ; (iii) for serial number 22 and the entries relating thereto, the following shall be substituted, namely: – (1) (2) (3) (4) (5) 22 Heading 9984 (Telecommunications, broadcasting and information supply services) (i) Supply consisting only of e-book. Explanation. -For the purposes of this notification, e-books means an electronic version of a printed book (falling under tariff item 4901 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)) supplied online which can be read on a computer or a hand held device. 2.5 – (ii) Telecommunications, broadcasting and infor

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GST – States – FIN/REV-3/GST/1/08 (Pt-1)/216 – Dated:- 26-7-2018 – GOVERNMENT OF NAGALAND FINANCE DEPARTMENT (REVENUE BRANCH) F.NO.FIN/REV-3/GST/1/08 (Pt-1)/216 NOTIFICATION Dated: 26th July, 2018 In exercise of the powers conferred by sub-section (3) of section 9 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the State Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Government of Nagaland, Finance (Revenue Branch) F.NO.FIN/REV-3/GST/1/08 (Pt-1) P dated the 30th June, 2017, namely:- In the said notification, – (i) in the Table, after serial number 10 and the entries relating thereto, the following serial number and entries shall be inserted, namely:

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GST – States – FIN/REV-3/GST/1/08 (Pt-1)/217 – Dated:- 26-7-2018 – GOVERNMENT OF NAGALAND FINANCE DEPARTMENT (REVENUE BRANCH) F.NO.FIN/REV-3/GST/1/08 (Pt-1)/217 NOTIFICATION Dated: 26th July, 2018 In exercise of the powers conferred by sub-section (2) of section 7 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the State Government, on the recommendations of the Council, hereby makes the following amendments in the notification of the Government of Nagaland, Finance Department (Re

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GST – States – FIN/REV-3/GST/1/08 (Pt-1)/221 – Dated:- 26-7-2018 – GOVERNMENT OF NAGALAND FINANCE DEPARTMENT (REVENUE BRANCH) F.NO.FIN/REV-3/GST/1/08 (Pt-1)/221 NOTIFICATION Dated: 26th July, 2018 In exercise of the powers conferred by clause (ii) of the proviso to sub-section (3) of section 54 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the State Government, on the recommendations of the Council, hereby makes the following further amendments in the notification of the Governm

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GST – States – FIN/REV-3/GST/1/08 (Pt-1)/222 – Dated:- 26-7-2018 – GOVERNMENT OF NAGALAND FINANCE DEPARTMENT (REVENUE BRANCH) F.NO.FIN/REV-3/GST/1/08 (Pt-1)/222 NOTIFICATION Dated: 26th July, 2018 In exercise of the powers conferred by sub-section (1) of section 11 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the State Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-state supplies of handicraft goods, the description of which is specified in column (3) of the Table below, falling under the tariff item, sub-heading, heading or Chapter, as specified in the corresponding entry in column (2), from so much State tax leviable thereon under section 9 of the said Act as is in excess of the rate specified in column (4) of the said Table. Explanation – For the purpose of this notification, the expression handicraft goods means Goods predominantly made by hand even though some to

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4 90 Art ware of cork [including articles of sholapith] 6% 7. 4601 and 4602 Mats, matting and screens of vegetable material, basketwork, wickerwork and other articles of vegetable materials or other plaiting material, articles of loofah (including of bamboo, rattan, canes and other natural fibres, dry flowers (naturally dried), articles thereof, ringal, raambaan article, shola items, Kouna/chumthang (water reeds) crafts, articles of Water hyacinth, korai mat] 2.5% 8. 4823 Articles made of paper mache 2.5% 9. 5607, 5609 Coir articles 2.5% 10. 5609 00 20, 5609 00 90 Toran, Doorway Decoration made from cotton yarn or oolen yarn and aabhala (mirror) with or without hanging flaps 2.5% 11. 57 Handmade carpets and other handmade textile floor coverings (including namda/gabba) 2.5% 12. 5804 30 00 Handmade lace 2.5% 13. 5805 Hand-woven tapestries 2.5% 14. 5808 10 Hand-made braids and ornamental trimming in the piece 2.5% 15. 5810 Hand embroidered articles 2.5% 16. 6117, 6214 Handmade/hand embro

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pper alloys, electro plated with nickel/silver 6% 30. 7616 99 90 Aluminium art ware 6% 31. 8306 Bells, gongs and like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal; (including Bidriware, Panchloga artware, idol, Swamimalai bronze icons, dhokra jaali) 6% 32. 9405 10 Handcrafted lamps (including panchloga lamp) 6% 33. 9401 50, 9403 80 Furniture of bamboo, rattan and cane 6% 34. 9503 Dolls or other toys made of wood or metal or textile material [incl wooden toys of sawantwadi, Channapatna toys, Thanjavur doll) 6% 35. 9504 Ganjifa card 6% 36. 9601 Worked articles of ivory, bone, tortoise shell, horn, antlers, coral, mother of pearl, seashell other animal carving material 6% 37. 9602 Worked vegetable or mineral carving, articles thereof, articles of wax, of stearin, of natural gums or natural resins or of modelling pastes etc, (including articles of lac, shellac) 6% 38. 9701 Hand pain

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2018 (9) TMI 916 – CESTAT HYDERABAD – TMI – Liability of Service tax – amount calculated of the share of the land owners in the developed property – case of the appellants before the lower authorities that the value of the services rendered to the land owners is already built on the amounts charged by them to independent flat owners – Held that:- Identical issue decided in the case of VASANTHA GREEN PROJECTS VERSUS CCT, RANGAREDDY GST [2018 (5) TMI 889 – CESTAT HYDERABAD], where it was held that the amount attributable to the consideration received by appellant in the form of land rights from the land owner stands included in the value of villas sold to prospective customer which would mean that whatever consideration was received by the a

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2. Heard both sides and perused the records. 3. On perusal of records, it transpires that the issue in all these three appeals is regarding the service tax liability on these appellants on the land owner's share i.e., on construction of flats. Appellants herein entered into agreement with land owners for the construction/development of the land; the land owners gave developmental rights to appellants herein on an understanding and an agreement that after the development of the land as desired appellants will hand over 40% of the developed residential apartments built by them. The appellants herein discharged the service tax liability on the flats sold by them to 3rd parties, they had not discharged the service tax liability on the amou

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(one of us M.V. Ravindran was member therein) held as under: 12. It can be seen from the above said instructions, the gross amount charged by the builder is liable to tax. The said instructions are in force till today and has not been withdrawn by the Board. As already detailed herein above, the appellant has discharged the service tax liability on the gross amount charged i.e. consideration received from land owners in the form of kind other than cash (value of the land/development rights) + Consideration received from prospective buyers in cash by way of financial arrangements on the construction services undertaken by the appellant on joint development basis. We also note that appellant had declared the same in the books of accounts lik

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2018 (10) TMI 445 – AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – 2018 (18) G. S. T. L. 112 (A. A. R. – GST), [2019] 60 G S.T.R. 50 (AAR) – Classification of supply – Levy of GST – Supply of service – exempted supply or not? – printing of various items – Whether, in the facts and circumstances as explained in Annexure II, supply of service of: (i) Printing of Pre examination items like question papers, OMR sheets (Optical Mark Reading), Answer booklets for conducting of an examination by the educational boards be treated as exempted supply of service by virtue of the notifications cited supra in Annexure I?; (ii) Printing of Post examination items like marks card, grade card, certificates to educational boards (up to higher secondary) after scanning of OMR Sheets and processing of data in relation to conduct of an examination be treated as exempted supply of service by virtue of the notifications cited supra in Annexure I?; (iii) Scanning and processing of results of examinatio

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ng paper and ink would be borne by the company and the cheques after printing as per the bank’s specifications, would be supplied to them. In both the cases, the unit prints the cheque and then supplies the cheque book to the bank after completion of the printing work – In respect of the situation, where the paper is being supplied by the banks, and the applicants are undertaking job work of printing the cheque and converting them as cheque books, the predominant supply in the instant case is supply of service. As the “services by way of any treatment or process on goods belonging to another person, in relation to- printing of all goods falling under chapter 48 or 49, which attract CGST @ 2.5% or Nil” are covered under sub-item ( c) of item (ii) at Serial No.26 of the Notification No.11/2017-Central Tax ( Rate) dated 28.06.2017 as amended, and the “cheques, loose or in book form” being an exempted supply in terms of S.No. 118 to the Notification No. 02/2017- Central Tax (Rate) dated 28

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conjunction. Despatching of aadhaar card will not be complete unless it is printed, laminated and franked by the applicant. Likewise all the services are interdependent on one another. Hence it cannot be considered as mixed supply in terms of section 2(74) of CGST/TGST Act, 2017. In the entire gamut of things being undertaken by the applicant, it appears that, it is an activity of predominant nature of supply of service rather than supply of goods – Accordingly, it appears that, the services rendered by the applicant merits as supply of service and accordingly falls under serial no.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended and the rate of tax applicable is 12% ( 6% CGST + 6% SGST).
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What would be the classification and the GST rate, for printing and sale of Polyvinyl chloride (PVC) Cards for various customers? – Held that:- In terms of GST Circular No.11/11/2017-GSTdated 20.10.2017, it is clarified that, supply of books, pamphlets, brochures, en

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ce it attracts 18% GST ( 9%CGST+9%SGST) as per Sl.No.106 of Schedule III of Notification No.1/2017-Central Tax (Rate) dated 28th June, 2017.
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Ruling:- The supply of service to ‘educational institutions’ for conducting of examinations are eligible for exemption under entry No.66 of Notification No. 12/2017- Central Tax (Rate) dt. 28.6.2017.
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The supply of ‘Printing of cheque books’(where the paper is being supplied by the banks) are classifiable under heading 9988 and attracts GST @ 5% (2.5% CGST + 2.5% SGST).
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The supply of cheque books(where the printing paper and inks are being borne by the applicants) are classifiable under heading 4907 of GST Tariff as goods and would not attract any GST as they are exempted supply in terms of Serial No 118 to the Notification No.02/2017-Central Tax (Rate) dated 28.06.2017.
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The supply of Aadhaar Cards are classifiable under heading 9989 of GST Tariff and attracts GST @ 12% ( 6% CGST + 6% SGST) in terms of S.No.27 of Notificatio

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g on the issues raised in ANNEXURE I enclosed to their application: 2. The applicant submitted the application in Form GST ARA-01 enclosing ANNEXURE-I (Questions on which advance ruling is required), ANNEXURE-II(Statement of relevant facts having a bearing on the questions raised) and ANNEXURE-III(Statement containing applicant s interpretation of law and /or facts, in respect of the questions raised) which are given below. They have also submitted a copy of Challan evidencing payment of ₹ 10000/- towards application fee. ANNEXURE- I(Questions on which advance ruling is required) 1. Whether supply of service of: (i) Printing of Pre-examination items like question papers, OMR sheets (Optical Mark Reading), answer booklets; (ii) Printing of Post-examination items like marks card, grade card, certificates to the educational boards of up to higher secondary; and (iii) Scanning and processing of results of examinations; be treated as exempted supply of service by virtue of Entry No. 6

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3, Anrich Industrial Estate, IDA Bollaram, Sangareddy District, Telangana 502 325. 2. The Company is engaged in the business of providing the services of printing of security documents to its clients, who vary from Government Authorities and agencies, Banks, Educational Boards / Institutions and Private Companies. 3. The details of the services are as follows: (i) Supply of services to the Educational Boards:- a) Printing of Pre and Post Examination items for various Educational Boards: The Company provides the service of printing of both pre and post examination documents to various educational boards. The pre examination documents includes OMR sheets, question papers, answer booklets. The post examination documents include marks card, grade card and certificates. b) Scanning and processing of results of examinations to educational institutions: The Company carries out the following two activities:- i. Scans the counter foils of the evaluated answer books which has bar codes and scans

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vices of printing and despatching of Aadhaar Cards. For providing the said service the Company has to perform the following activities which includes: A. Data processing – The Company receives the data for printing from UIDAI in Unicode XML (Extensible Markup Language) file format. In order, to carry out the activity of printing the Company has to convert the file into a readable format, for which the Company is availing the professional services of Data processing from a third party service provider. This service is received by the Company in-house. B. Printing of photographs along with individual data of the Citizens. C. Lamination and enveloping – The Company has to laminate the Aadhaar card, post which it shall be enveloped and despatched to the card holder. D. Sorting of data – The Company has to collate and sort the data based on the parameters provided by UIDAI, like sorting of data based on the Pin Code', printing of barcodes allotted by UIDAI to track each envelope. E. Fra

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ce of: (i) Printing of Pre examination items like question papers, OMR sheets (Optical Mark Reading), Answer booklets for conducting of an examination by the educational boards be treated as exempted supply of service by virtue of the notifications cited supra in Annexure I? (ii) Printing of Post examination items like marks card, grade card, certificates to educational boards (up to higher secondary) after scanning of OMR Sheets and processing of data in relation to conduct of an examination be treated as exempted supply of service by virtue of the notifications cited supra in Annexure I? (iii) Scanning and processing of results of examinations be treated as exempted supply of service by virtue of the notifications cited supra in Annexure I? 2. Applicant's interpretation of Law: 2.1 Applicant submits that the service provided to an educational institution, by the applicant in relation to conduct of examination by an institution is exempt by virtue of the notifications cited supra.

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n course In this regard, the following are to be considered: (i) The services provided by the applicant to an educational board by way of printing of question papers, OMR sheets (Optical Mark Reading), answer booklets which enables the educational institution / universities to conduct the examination. The said service provided by the applicant to the educational institution is towards conduct of examination. Since, the service provided by the applicant towards pre-examination items will be used by the educational institution for conduct of examination. The applicant submits that the aforesaid exemption as outlined in the notification will be applicable to the applicant's case. Thus, the services provided by the applicant to the educational institutions by way of supply of pre-examination materials will not be liable to Goods and Service tax. (ii) the services provided by the applicant to the educational boards by way of printing of marks card, grade card, certificates etc. which ac

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ing of the OMR answer sheets/OMR sheets (marks foil)/counterfoil's of the evaluated answer books having bar codes and scans the data entry of the question wise marks and total marks, verification of data with the hard copy of counter foils of answer booklets. Scanning and posting of subject wise marks, against students roll number; Preparation of final marks and posting against the students final database; Scanning of attendance sheets for generation of absentee statement. b) Processing of results Collating data of – paper/subject wise marks of absent candidates, marks scored by the students, dual status, TSS & GSS, total questions solved, total unsolved questions; Preparation of reports such as-consolidated reports; subject mismatch reports; discrepancy reports for correction in consultation of Board; statistical reports as and when required by the board; Validation and preparation of data base for regular student; The aforesaid details will be transmitted into high quality so

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ces of printing of pre-examination items, post-examination items and Scanning and processing of results provided by the applicant to an educational institution is towards conduct of examination. The services are normally not carried out by the educational institution by themselves but has to be outsourced to other service providers due to lack of infrastructure for printing, administrative convenience, confidentiality, volume etc. Accordingly, when such Services are procured by the educational institution they tantamount to the services relating to conduct of examination, which will aptly fall within the ambit of exemption outlined under Entry No. 66 of the Notification No. 12/2017 – Central Tax (Rate), dated 28th June, 2017 and as amended by Notification No.2/2018 – Central Tax(Rate), dated 25th January, 2018; Entry No. 66 of Notification No. 12/2017 – State Tax(Rate), dated 29th June, 2017; and Entry No. 69 of the Notification No. 9/2017 – Integrated Tax (Rate), dated 28th June, 2017

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paper. After the activity of printing, the end product shall accordingly be construed as "Cheque" and not "Cheque paper". (b) The Cheque printed on the cheque paper should be classifiable as "products of the printing industry", which will be "Cheque". The Cheque paper is not the product of printing industry, but it is the cheque which is the product of the printing industry. (c) The printing was the primary purpose and without it, the cheque paper on which the matter was printed, is of no use to the appellant's customer. (d) The trade as well as in common parlance, treat these products as cheque and not cheque paper. (e) The product wherever printed must be classified having regard to what it means and how it is understood in common parlance. Thus being the case, it is the printing on the cheque paper, which communicates the message to the buyer that the product supplied to him is "Cheque" and not "Cheque paper". The prin

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2017 and the Telangana Goods and Service Tax ("TGST") Act, 2017 provides the meaning of 'job work' which reads as under: Job work" means any treatment or process undertaken by a person on goods belonging to another registered person and the expression "job worker" shall be construed accordingly. The applicant submits that the process of printing of cheques undertaken by the applicant is on the input, i.e., paper, belongs to customer bank, who are registered persons. Hence, the process of printing undertaken by the applicant should be construed as "job-work". Further, in terms of Entry No. 3 of Schedule II appended to the CGST Act, 2017, any treatment or process which is applied to another person's goods is a supply service, and accordingly printing of cheque by the applicant shall be construed to be supply of service. The applicant submits that the aforesaid activity of "job-work" carried out by the applicant will be taxable at t

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all goods falling under Chapter 48 or 49, which attract CGST @ 2.5% percent or NIL; TGST @ 2.5% percent or NIL; IGST @5% or NIL 2.5 – Thus, the applicant based on the above facts submits that the activity of printing of cheque, the goods being the cheque in the given case would fall under within the ambit of Chapter 4907. Such goods attracts the rate of tax i.e., CGST, SGST and IGST as "NIL". Hence, the activity of printing of cheque carried out by the applicant will be liable to tax under GST as treatment of process on goods belonging to another registered person being in the nature job work at the rate of 5% (2.5% – Central Tax and 2.5% – State Tax or 5% – Integrated Tax.) (B) Physical inputs ie., paper belonging to the applicant:- The applicant submits that even such supplies would be supply of services i.e., printing. The applicant further submits that serial No. 5 of Circular No. 11/11/2017- GST, dated 20th October, 2017 which provides that: In case of supply of printed

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rtant to note that this will always be transaction and business specific; it cannot be specified on an all-pervasive basis. Hence, the applicant submits that the activity provided by them is purely a "service" in relation to printing where the content to be printed is specified by the banks and the applicant only prints such content on the paper. Accordingly the activity of printing on the paper will fall within the ambit of Entry No. 27 with heading 9989(i) of Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017 as amended by Notification No. 20/2017-Central Tax (Rate) dated 22nd August, 2017 and Notification No. 31/2017-Central Tax (Rate) dated13th October, 2017, Notification No. 11/2017 -State Tax (Rate) dated 29th June, 2017 as amended by Notification G.O.Ms No.227, dated 05th October, 2017 and Notification No. 31/2017 – State Tax (Rate), dated 23rd November, 2017; Notification No. 8/2017-Integrated Tax (Rate), dated 28th June, 2017 as amended by Notification

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T, SGST and IGST as "NIL". Hence, the activity of printing of cheque carried out by the applicant will be liable to tax under GST as treatment of process belonging to the applicant itself will be liable to tax under GST at the rate of 12% (6%- Central Tax and 6%- State Tax or 12%- Integrated Tax). QUESTION : 3 Whether, in the facts and circumstances as explained in Annexure II, what would bethe classification and the GST rate for, printing and supply of Aadhaar cards on paper to the Unique Identification Authority of India (UIDAI)? 6.Applicant's interpretation of Law: The applicant submits that the activity of printing and despatch of Aadhaar cards provided to Unique Identification Authority of India (UIDAI), by the applicant is a supply of service. The activity of printing of Aadhaar cards is carried out on-paper as explained in Annexure II. There are two limbs in the aforesaid activity carried out by the applicant to UIDAI:- (a) Printing of Aadhaar cards on paper; (b) D

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anking and dispatching is a composite supply of printing of Aadhaar card. Whereby, printing of Aadhaar card shall constitute to be the principal Supply and the other services are ancillary to the principal supply and such ancillary service is naturally bundled. The applicant further submits that serial No. 5 of Circular No. 11/11/2017GST, dated 20th October, 2017 which provides that: "In case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff is ultra vires and quod contra leg

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Notification No. 20/2017-Central Tax (Rate) dated 22nd August, 2017 and Notification No. 31/2017-Central Tax (Rate) dated 13th October, 2017, Notification No. 11/2017 -State Tax (Rate) dated 29th June, 2017 as amended by Notification G.O.Ms No.227, dated 05th October, 2017 and Notification No. 31/2017 – State Tax (Rate), dated 23rd November, 2017; Notification No. 8/2017- Integrated Tax (Rate), dated 28th June, 2017 as amended by Notification No. 20/2017- Integrated Tax (Rate), dated 22nd August, 2017 and Notification No. 39/2017- Integrated Tax (Rate), dated 13th October, 2017, which is as under:- SI.No. Heading Description of Service Rate (Per Cent) Condition 27 9989 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; TGST @ 6 per cent or 2.5 percent or Nil IGST @12% percent or 5 % or Nil. Where only content is supplied by the

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the product which is printed by the applicant under the following Chapter heading as provided in Notification No. 01/2017-Central Tax (Rate) dated 28th June, 2017, Notification No. 01/2017-State Tax (Rate) dated 29th June, 2017 and Notification No.1/2017-Integrated Tax (Rate) dated 28th June, 2017. Sl.No. Heading Description of Goods 106 3920 Other plates, sheets, film, foil and strip, of plastics, non-cellular and not reinforced, laminated, supported or similarly combined with other materials d with other materials Rate of tax The applicant submits that printing activity specified above shall be taxable at the rate specified in Entry No. 27 with heading 9989 (ii) of Notification No. 11/2017Central Tax (Rate) dated 28th June, 2017 and as amended by Notification No. 20/2017-Central Tax (Rate) dated 22nd August, 2017, Notification No. 11/2017 -State Tax (Rate) dated 29th June, 2017 and as amended by Notification G.O.Ms No.227, dated 05th October, 2017; Notification No. 8/2017-Integrated

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g on the issues raised in their application. 3. DISCUSSION & FINDINGS: The applicant sought advance ruling on different issues and each issue is discussed below: 3.1. Whether the following services are treated as exempted supply of service? (i) Printing of Pre-examination items like question papers, OMR sheets (Optical Mark Reading), answer booklets etc., (ii) Printing of Post-examination items like marks card, grade card, certificates to the educational boards upto higher secondary; and (iii) Scanning and processing of results of examinations; 3.1.1 Exemption from payment of GST in respect of certain supplies of Services has been provided under Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 as amended by Notification No.02/2018-Central Tax ( Rate) dated 25.01.2018 . 3.1.2 In terms of Serial No.66 of the impugned notification exemption from payment of GST has been provided to the following supply of services as on date. 66. Services provided – (a) by an educational ins

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ding 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. ; Further, the said Notification also provides definition for educational institution . In terms of the definition provided under the Notification, (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 recognised by any law for the time being in force; (iii) education as a part of an approved vocational education course; So the services provided to educational institutions for conducting of examinations are eligible for exemption under entry No.66 of Notification No. 12/2017- Central Tax (Rate) dt. 28.6.2017 3.2. What would be the classification and the applicable GST rate, for the supply of Printing of cheque book. 3.2.1 In this

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x ( Rate) dated 28.06.2017 as amended, and the cheques, loose or in book form being an exempted supply in terms of S.No. 118 to the Notification No. 02/2017- Central Tax (Rate) dated 28.06.2017, the supply of service by the applicant attracts GST @ 5% ( 2.5% CGST + 2.5% SGST). 3.2.3 In respect of supply of cheque books where the printing paper and inks are being borne by the applicants, the impugned goods merit classification under Tariff heading 4907 as goods and they are an exempted supply in terms of Serial No 118 to the Notification No.02/2017-Central Tax (Rate) dated 28.06.2017. Hence, cheques or cheque books would not attract any GST and are an exempted supply in terms of the Notification. 3.3. What would be the classification and the applicable GST rate, for the supply of Aadhaar Cards on paper. 3.3.1 As per the information provided by the applicant, they receive the data for printing from UIDAI in Unicode (extensible mark up language) file format. The said file format would be

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the supplies are provided in conjunction. Despatching of aadhaar card will not be complete unless it is printed, laminated and franked by the applicant. Likewise all the services are interdependent on one another. Hence it cannot be considered as mixed supply in terms of section 2(74) of CGST/TGST Act, 2017. In the entire gamut of things being undertaken by the applicant, it appears that, it is an activity of predominant nature of supply of service rather than supply of goods. Accordingly, it appears that, the services rendered by the applicant merits as supply of service and accordingly falls under serial no.27 of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 as amended and the rate of tax applicable is 12% ( 6% CGST + 6% SGST). 3.4. What would be the classification and the applicable GST rate, for the printing and supply of Polyvinyl chloride cards (PVC). 3.4.1 Assessees are undertaking printing on Polyvinyl chloride (PVC) cards to various customers. PVC cards are plas

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plies and the question, whether such supplies constitute supply of goods or services would be determined on the basis of what constitutes the principal supply. 3. Principal supply has been defined in Section 2(90) of the Central Goods and Services Tax Act 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 to the printer, supply of printing [of the content supplied by the 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. 5. In case of supply of printed envelopes, letter c

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o.106 of Schedule III of Notification No.1/2017-Central Tax (Rate) dated 28th June, 2017. In view of the foregoing discussions, the following ruling is passed. ADVANCE RULING 1. The supply of service to educational institutions for conducting of examinations are eligible for exemption under entry No.66 of Notification No. 12/2017- Central Tax (Rate) dt. 28.6.2017. 2. The supply of Printing of cheque books (where the paper is being supplied by the banks) are classifiable under heading 9988 and attracts GST @ 5% (2.5% CGST + 2.5% SGST). 3. The supply of cheque books(where the printing paper and inks are being borne by the applicants) are classifiable under heading 4907 of GST Tariff as goods and would not attract any GST as they are exempted supply in terms of Serial No 118 to the Notification No.02/2017-Central Tax (Rate) dated 28.06.2017. 4. The supply of Aadhaar Cards are classifiable under heading 9989 of GST Tariff and attracts GST @ 12% ( 6% CGST + 6% SGST) in terms of S.No.27 of N

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2018 (10) TMI 1140 – AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – [2018] 59 G S.T.R. 134 (AAR), 2018 (18) G. S. T. L. 625 (A. A. R. – GST) – Supply or not? – Whether the construction activity undertaken by the Company is a supply? – Held that:- The construction activity undertaken by the Company falls within the definition of the business as it includes any adventure, whether or not for a pecuniary benefit Sec 2 (17) the Central and State GST Act – The reimbursement of construction cost by the Partners to the Company would fall within the definition of consideration under Sec 2(31) Central and State GST Act as it includes (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both – Hence, the construction activity is a “Supply of Service as per the terms of section 7 of the Central and State GST Act.
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Whether in the facts and circumstances the pooling of land by way of

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and Services Tax act, 2017 and Telangana Goods and Services Tax Act, 2017.
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Whether in the facts and circumstances construction activity undertaken by the Company with respect to the share belonging to the Partners would be treated a Supply of service under the Central and State GST act? – Held that:- In terms of clause 5 (b) of Schedule II of the CGST, Act, 2017, ‘construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier shall be treated as supply of service’ – the activity undertaken by M/s Gowra Venture Pvt Ltd with respect to the share belonging to the said partners (as described in the “Statement of relevant facts” of the subject Application) is a supply of service under the Central and State

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see (Owner 1) and the title of the property of the parcels of land remained with the respective owners at any point of time. Further M/s Gowra Ventures Pvt Ltd have provided construction service on the amalgamated land for a consideration to the Owners 2 to 8. Neither any service nor any consideration has been received by owner1 for vesting of constructed portion to the partners (owners 2 to 8) and hence the same cannot be treated as an independent supply.
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Ruling:- The pooling of land by way of amalgamation of the separate parcels viz Land 1 and Land 2 as described in the “Statement of relevant facts” would not constitute a supply under the CGST/TGST Act, 2017.
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The activity undertaken by M/s Gowra Venture Pvt. Ltd., with respect to the share belonging to the partners (as described in the “Statement of relevant facts” of the subject Application) is a supply of service under the CGST/TGST Act, 2017.
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The applicant is providing service to owners 2 to 8 who are related per

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read with Rule 103 of CGST/TGST Rules, seeking Advance Ruling on the following issues. Questions on which advance ruling is requested : 1. Whether in the facts and circumstances the pooling of land by way of amalgamation of the separate parcels viz Land 1 and Land 2 as described in the Statement of relevant facts would constitute a supply under the Central Goods and Services TaxAct, 2017 and Telangana Goods and Services Tax Act, 2017 (herein after referred to as Central and State GST Act)? 2. Whether in the facts and circumstances construction activity undertaken by the Company, with respect to the share belonging to the Partners (as described in the "Statement of relevant facts ) would be treated a Supply of Service under the Central and State GST Act? 3. Whether in the facts and circumstances, the recovery of construction cost by the Company from the Partners would be the transaction value for purpose of Section 15 of the Central and State GST Act to be valued in accordance with

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. Subbaraj, Mr. Arvind Lakshmi Narayana, Mr. SubbaramLakshminarayana, Mr. Aditya Srinivas, Mr. Nagarjun Srinivas, (herein after referred to as Partners ) own parcels of land (hereinafter referred to as land 2 ) adjoining the land 1 owned by the Company in Survey Nos. 80 to 84 at Madhapur, Hyderabad. These Partners, who are also directors in the Company intend to develop the said land by constructing a multi-storeyed building and hence approached the Company for construction services. Both the Company and the Partners have agreed to amalgamate their land parcels and construct a multi-storeyed building (Project) on the amalgamated land parcels, i.e., land 1 & land 2 taken together. This is found beneficial to all parties in terms of enhanced floor space index and area in addition to several other benefits like common areas and facilities. As agreed a revised plan has been filed for approval by the competent authorities and the extra built-up area that will accrue on account of the am

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ments or agreements as required under the relevant laws will be entered into by the Partners to give effect to the above arrangement. Statement containing the applicant s interpretation of law based on the facts, in respect of the aforesaid questions: Whether the activity of pooling (amalgamation) of individual parcels of land is a supply? There is no disposal by any of the modes described in terms of Sec 7 of the Central and State GST Act for consideration in this case where the respective land parcels (land 1 and land 2) are amalgamated for purpose of constructing a multi-storied building after obtaining necessary approval from the competent authority under the Building Laws. This is because the parties to the amalgamation retain their respective shares in the combined parcel of land. Whether the construction activity undertaken by the Company is a supply? The construction activity undertaken by the Company falls within the definition of the business as it includes any adventure, whe

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furtherance of business; (c) the activities specified in Schedule I, made or agreed to be made without a consideration; and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. (2) Notwithstanding anything contained in sub-section (1),- (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods. As per Section 2(31) of the Central

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, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; (b) any activity or transaction in connection with or incidental or ancillary to sub-clause (a); (c) any activity or transaction in the nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club; and (i) a

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ral and State GST Rules shall apply and one hundred and ten percent of the cost of construction would represent the value in this case where the parties are related in terms of Rule 30 of the Central and State GST Rules] As per Section 15 Central and State GST Act (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. (4) Where the value of the supply of goods or services or both cannot be determined under sub-section (1), the same shall be determined in such manner as may be prescribed. As per explanation to Section 15, the persons shall be deemed to be related if- (i) such persons are officers or directors of one another s businesses; (ii) such persons are legally recognized partners in business; (iii) such persons are employer and employee

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e value as determined by the application of rule 30 or rule 31, in that order: Provided that where the goods are intended for further supply as such by the recipient, the value shall, at the option of the supplier, be an amount equivalent to ninety percent of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person: Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services. Rule 30. Value of supply of goods or services or both based on cost.- Where the value of a supply of goods or services or both is not determinable by any of the preceding rules of this Chapter, the value shall be one hundred and ten percent of the cost of production or manufacture or the cost of acquisition of such goods or the cost of provision of such services. Whether the vesting of the constructed portion to the Partner

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rvices Tax act, 2017 and Telangana Goods and Services Tax Act, 2017? As per the copy of the MOU for construction of Commercial Complex at Madhapur, furnished by M/s Gowra Ventures Pvt Ltd vide their letter dated 16-07-2018, Parcels of land pertaining to the Owners 2 to 8 of the said MOU are amalgamated with the land of the assessee (Owner 1). The activity of pooling of land owned by Owner1 with that of the owners 2 to 8 needs to be examined in the light of the provisions of Section 7 of the CGST/TGST Act,2017 and the Schedules there under. The provisions of Section 7 of the CGST Act, 2017 is extracted hereunder: 7. (1) For the purposes of this Act, the expression supply includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furthe

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ns of Section 7 it can be inferred that the said activity of amalgamation of the land do not fall under any of the sub-clauses (1) to (3) of Section 7 of the CGST Act,2017. Further, in terms of clause 1(c) of Schedule II of the GST Act, 2017 any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods. But as per Section 2(52) of the CGST Act,2017, goods includes only moveable property but land is not covered under the definition of goods . Hence pooling of land by way of as described in the Statement of relevant facts of the subject Application would not constitute a supply under the Central Goods and Services Tax act, 2017 and Telangana Goods and Services Tax Act, 2017. 2) Whether in the facts and circumstances construction activity undertaken by the Company with respect to the share belonging to the Partners (as described in the Statement of relevant facts ) wo

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tement of relevant facts of the subject Application) is a supply of service under the Central and State GST Act, 2017. 3) Whether in the facts and circumstances, the recovery of construction cost by the Company from the partners would be the transaction value for purpose of Section 15 of the Central and state GST Act to be valued in accordance with Sec 15 read with Rule 30 of the Central Goods and Services Tax Rules, 2017 and Telangana Goods an Service Tax Rules, 2017(Central & State GST Rules)? M/s Gowra Ventures Pvt Ltd(owner 1) is providing the construction service to the Owners 2 to 8 on the amalgamated land belonging to the owner1 and owners 2 to 8 and it is also seen from the subject Application and the said MOU that the Owners 2 to 8 are also Directors of M/s Gowra Ventures Pvt Ltd. Further Section 15 of CGST Act,2017 which stipulates the issue of valuation is extracted hereunder: 15. (1) The value of a supply of goods or services or both shall be the transaction value, whic

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h at the time of, or before delivery of goods or supply of services; (d) interest or late fee or penalty for delayed payment of any consideration for any supply; and (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. Explanation.-For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. (3) The value of the supply shall not include any discount which is given- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, if- (i) such discount is established in terms of an agreement entered into at or before the time of such supply and specifically linked to relevant invoices; and (ii) input tax credit as is attributable to the discount on the basis of document issued by the supplier has been reversed by the recipient of the

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y directly or indirectly control a third person; or (viii) they are members of the same family; (b) the term person also includes legal persons; (c) persons who are associated in the business of one another in that one is the sole agent or sole distributor or sole concessionaire, howsoever described, of the other, shall be deemed to be related. On going through the MOU, the nature of service provided by the assessee and in the light of the provisions of the Section 15 of CGST Act,2017 recourse needs to be made to the provisions of Rule 28 and Rule 30 of the CGST Rules, 2017. Rule 28 and Rule 30 of the CGST Rules, 2017 are extracted hereunder: 28. Value of supply of goods or services or both between distinct or related persons, other than through an agent.-The value of the supply of goods or services or both between distinct persons as specified in sub-section (4) and (5) of section 25 or where the supplier and recipient are related, other than where the supply is made through an agent,

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value needs to be determined by applying the provisions of rule 30 of CGST Rules, 2017. Rule 30 of CGST Rules, 2017 is extracted hereunder for ready reference: 30. Value of supply of goods or services or both based on cost.- Where the value of a supply of goods or services or both is not determinable by any of the preceding rules of this Chapter, the value shall be one hundred and ten percent of the cost of production or manufacture or the cost of acquisition of such goods or the cost of provision of such services In view of the above, the applicant is providing service to owners 2 to 8 who are related persons and therefore the value of the construction service supplied by M/s Gowra Ventures Pvt. Ltd shall be 110% of the cost of provision of the said service. 4) Whether in the facts and circumstance the vesting of the constructed portion upon the Partners , would independently constitute a supply besides the supply on account of recovery of construction cost as aforesaid by the Compan

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2018 (12) TMI 67 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (19) G. S. T. L. 663 (A. A. R. – GST) – Levy of tax – the supply of goods which are moved from a place located outside taxable territory and are delivered at a place outside taxable territory – section 7(5)(a) of IGST Act – input tax credit – recipient of goods – inter-state supply – Place of supply of goods – territorial jurisdiction.
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Held that:- It is clear that the applicant would be purchasing goods from Jotun Norway on the bas1S of purchase orders received from their customer in India and the said goods would be delivered by JN from their Norway place to the ship/vessel of the customer which is also in non-taxable territory i.e. outside India. The order received by the applicant from their customer in India and the order placed to Jotun, Norway are back to back orders. Thus it is seen that the goods are delivered by JN from a place outside the taxable territory of India to the customer’s vessel which is als

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s imported into India is to be levied and collected in accordance with Section 3 of the Customs Tariff Act, 1975 and Section 12 of the Customs Act, 1962 and the same is to be levied and collected at the time of import into India. The goods are considered to be imported into India only after they clear the customs frontier after compliance of applicable procedures and payment of duty as applicable.
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In case of goods supplied on an out an out basis as is in the present case, there is no levy till the time of their customs clearance in compliance with Section 12 of the Customs Act and Section 3 of the Customs Tariff Act. In view of this the import goods sold from and to a non-taxable territory, though they are clearly in the nature of inter-state supply would come in the category of “‘exempt supply” as no duty is leviable on them except in accordance with proviso to Section 5(1) of the IGST Act – Thus it is very clear that the goods sold in the subject transaction are non-taxable sup

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are moved from a place located outside taxable territory and are delivered at a place outside taxable territory, would be liable to tax in India under section 7(5)(a) of IGST Act? b) If answer to (a) is yes, whether the recipient of the goods i.e. person liable to pay consideration, be eligible to avail the input tax credit of the said goods? 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

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sel for the purpose of maintenance purpose (hereinafter referred to as Dry Dock Supplies and Sea Dock Supplies) Applicant caters to paint and coating requirements for ships within India. It has been mutually agreed between all entities Of the Group that any requirement of supply of goods (paints) within a Country where Jotun Group entity is present would be served by that particular entity. Consequently in case where the applicant gets an order from Indian customer to supply paints to ship located near Norway, entity of Jotun Group located in Norway would be serving the said order by supplying paints to that ship and thereafter raising an invoice on the Applicant in this regard. To elaborate, sequential flow of transactions under such situation is presented as under: (a) A customer located in taxable territory ( Cl ), places an order on applicant (JIPL ) to supply goods (paint) as a new building, dry dock supply or sea dock supply to its ship / vessel located near Norway i.e. a place o

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INING APPLICANTS INTERPRETATION OF LAW IN RESPECT OF THE QUESTIONS RAISED A. Levy of IGST cannot be extended beyond territorial jurisdiction of the said legislation Evaluating IGST provisions to understand possibility of levying IGST A1. In order to deliberate on the question being sought, it is pertinent to analyse applicability of provisions of IGST Act, 2017 in terms of nature of the transaction. A2. Section 7 of IGST Act, 2017, makes provision to treat the transactions as interstate supply . In this regard, the Applicant hereby wishes to submit following provision of IGST Act, 2017 which would be relevant in analysing the needful: Section 7(5) of IGST Act, 2017 which reads as under: (5) Supply of goods or services or both, – (a) when the supplier is located in India and the place of supply is outside India; (b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or (c) in the taxable territory, not being an intra-State Supply and not covered elsewhere in thi

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to be referred wherein provisions for determining place of supply has been laid down for various situations 10. (1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under, (a) where the supply involves movement of goods, whether by the supplier or the recipient or by any other person, the place of supply of such goods shall be the location of the goods at the time at which the movement of goods terminates for delivery to the recipient. (b)…….. (C)…………….. (d) (e)where the goods are supplied on board a conveyance, including a vessel, an aircraft, a train or a motor vehicle, the place of supply shall be the location at which such goods are taken on board. A6. Applying the above provisions in the current situation, it could be construed that: For Dry Dock supply of goods – The Applicant is supplying paints to the Customer located in taxable territory. Hence the Applicant would be co

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ection 7(5)(a) where supplier is located in India and place of supply is outside India. A8. However, the Applicant intends to draw your kind attention to section 1(2) of IGST Act which determines the extent of applicability of IGST Act. As per the said section IGST Act extends to whole of India except State of Jammu and Kashmir. Further India has been defined in section 2(56) of CGST Act read with section 2(24) of IGST Act to mean the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air space above its territory and territorial waters; A9. Hence, Applicant wishes to contend that scope of IGST Act is limited to territorial jurisdiction to which it extends. Thus, IGST levy can be introduced only to supplies

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ting that for the transaction under question where the goods are lying outside India i.e. in Norway, the place of supply shall be outside India. Hence, the Applicant pleads that it is outside the jurisdictional powers of the GST law to determine the place of Supply for goods when such goods are not located in India. A11. Given the aforesaid, the tax cannot be said to be payable on the transaction under consideration as the subject i.e. goods, on which tax is payable are supplied outside India i.e. beyond the jurisdictional extent of IGST Act, 2017. B. Constitution only permits sale in the course of import to be considered as interstate supply, hence, extending the scope of section 7(5)(a) of IGST Act to Out to out supply would be unconstitutional B1. It is no more res-integra that no tax shall be collected unless there is constitutional validity to levy the same. In this regard, we wish to draw your attention to following Article of The Constitution of India which empowers the Central

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ate the principles for determining the place of supply, and when a supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. B3. On plain reading of the above provisions, it can be seen that, (a) Basis clause (5) of article 269-A, the Parliament may, by law, formulate the principles for determining the place of supply and when a supply of goods or of services or both takes place in the course of inter-state trade or commerce. The power given is to formulate principles to decide when a supply takes place in the course of inter-state trade or commerce . (b) The word inter-state is not defined in the constitution. Therefore the natural meaning of the term inter-state needs to be adopted, i.e. between states . lnvolvement of more than one state. (c) Consequently, for any transaction if only one state is involved, the said supply cannot be termed as inter-state. (d) For formulating the principles to determine when a supply takes place in the course

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ons to be an inter-state transaction nor given powers to determine so, the provisions ought to be treated as ultra-vires. C. Cross-border transactions are being covered under Inter-State supply Only to exclude the same from purview Of State Government, however. that would not conclude IGST applicability unless authorised C1. Applicant wishes to submit that section 7 and section 8 of IGST Act have been enacted to lay down principles to determine nature of supply to be inter-State supply and intra-State supply respectively. Thus, the objective appears to be to delineate powers of State Government to levy respective GSI- only on intra-State supply and not to cover Inter-State Supply . C2. However, section 7 or section 8 of IGST Act should not, in isolation, be read as sections enabling levy of IGST on all supplies covered therein. IGST Act needs to be read in harmonious manner considering the constitutional empowerment and extent of its applicability to determine levy. Merely because a tr

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ent and said section should not be considered as piece of legislation which is empowering Central Government to travel beyond territorial jurisdiction and levy IGST on all transactions, covered therein. D. The term Zero-rated supply should be read in liberal manner and should not be restricted only to taking of goods outside India D1. Attention is invited to section 16 of IGST Act, which provides that Zero rated supply means any of the following supplies of goods or services or both: (a) Export of goods or services or both; or (b) Supply of goods or services or both to a Special Economic Zone developer or unit D2. Further Section 2(5) of IGST Act defines export of goods/ with its grammatical variations and cognate expressions, means taking goods out of India to a place out of India. D3. From the conjoint reading of the abovementioned provisions it can be inferred that any inter-state supply would qualify to be zero-rated only if it falls within the purview of export or supply to SEZ. D

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involving movement from India would mean disregarding the fact that place of supply is outside India. Thus, the Applicant pleads for extending the meaning of export of goods even to cases where goods are delivered to customer outside India even if not taken from India. D8. Assuming without accepting that such supplies would not qualify as zero rated supply , the same should, at least, be treated as not liable to GST since the concept of exports could be deemed to be covering a case where the goods are consumed/ used outside India. D9. Under erstwhile Service Tax legislation, if the place of provision of service was outside India but other conditions of Export were not getting fulfilled then the export linked benefits were not made available to such services. However, at the same time, they would still not be liable to service tax. Accordingly, Applicant pleads that even if transaction in question may not be considered as Export of goods , the same should be considered as not liable to

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. For your reference we have reproduced relevant portion of section 12(3) of IGST Act, 2017 (3) The place of supply of services, – (a) (b) – (C) – (d)- Provided that if the location of the immovable property or boat or vessel is located or intended to be located outside India, the place of supply Shall be the location of the recipient. … (Emphasis provided) E3. It can be observed from the aforesaid provisions that there is specific provision in case of services wherein it is specifically provided that the place of supply shall be the location of immovable property. However, if both the supplier and recipient are in India and location of immovable property or boat or vessel is outside India then the place of supply, for the purpose of GST, will be location of the recipient of service. E4. Similar provisions were provided in Rule 8 of Place of Provision of Services Rules, 2011 under Service Tax regime. We have reproduced the said provisions below: 8. Place Of provision of services whe

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Thus, in case of transaction in question, since location of goods is outside India the levy should not arise in India in the absence of specific provision in this regard. F. Circular issued for High Sea Sales will be applicable to the transaction under consideration F1. Under Circular No 33/2017 – Customs dated August 01, 2017, a clarity was provided as regards tax implications on High Seas Sales. Based on the same, it was decided that levy of IGST on High Seas transactions of imported goods, shall be only at the time of importation i.e. when import declarations are filed before Customs authorities for clearance purposes. Accordingly, IGST liability arising on such transactions would be disposed of only once, by the ultimate importer who clears the goods for home consumption. Consequently first leg of High Seas Sales, where goods are supplied out of India, would be exempted from payment of IGST. F2. The relevant para of the circular is reproduced below: 4. GST Council has deliberated o

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e Hon ble Advance Ruling Authorities of Kerala in case of M/s. Synthite Industries Ltd. = 2018 (4) TMI 583 – AUTHORITY FOR ADVANCE RULING – KERALA where it was ruled that the applicant is neither liable to GST on sale of goods procured from China and directly supplied to USA nor on sale of goods stored in the warehouse of Netherlands, after being procured from China, to customers in and around Netherlands, as the goods are not imported into India at any point . F5. Further another circular was issued by CBEC to clarify the tax applicability of goods lying in bonded warehouse. Circular No. 46/2017-Customs dated 24th November 2017, provided that in case the goods are soId while the same lying in bonded warehouse, the same shall be chargeable to GST. F6. It is pertinent to note that one of the basic reasons behind differential tax treatment in both the circulars above is that in case of High Seas the goods are not in India while in case of warehoused goods, the goods are in India. F7. Giv

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is unclear and consequently it is unclear as to whether only Central Government or both Central and State Government would receive this revenue. G4. In the absence of ambiguity around collection mechanism and revenue Sharing of Such GST, it appears that intention of legislatures was never to levy and collect IGST on such type of transaction. H. The transaction was not taxable under erstwhile indirect tax laws and hence, the same should not be liable to GST H1. GST has been introduced with a view to subsume majority of indirect taxes applicable in India like service tax, central excise, entry tax, VAT, GST etc. The intention of the legislator has not been to tax the transactions which were not taxed under existing laws but to have a uniform tax regime throughout the country. H2. For the transaction under consideration, no tax was leviable under Customs Act, 1962, Central Excise Act, 1944, Central Sales Tax Act, 1956 and other State VAT laws prior to implementation of GST in India. H3. A

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port or export and the same are reproduced below: (1) A sale or purchase of goods shall be deemed to take place in the course of the export of the goods out of the territory of India only if the sale or purchase either occasions such export or is effected by a transfer of documents of title to the goods after the goods have crossed the customs frontiers of India. (2) A sale or purchase of goods shall be deemed to take place in the course of the import of the goods into the territory of India only if the sale or purchase either occasions such import or is effected by a transfer of documents of title to the goods before the goods have crossed the customs frontiers of India. (3) …….. (4) …….. (5) ………… H6. From the above, it can be understood that even under CST Act, similar type of transaction was not liable to CST. Since, the transaction of sale/ supply was not taxable under erstwhile Indirect Tax laws, the GST should not be payable

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isions: Section 4(1) of VATA: Scope of VAT on taxable supplies VAT shall be charged on any supply of goods or services made in the United Kingdom, where it is a taxable supply made by a taxable person in the course or furtherance of any business carried on by him. Section 7(2) of VATA: Place of supply Subject to the following provisions of this section, if the supply of any goods does not involve their removal from or to the united Kingdom they shall be treated as supplied in the United Kingdom if they are in the United Kingdom and otherwise shall be treated as supplied outside the United Kingdom. ……Emphasis supplied I3. Basis the above provisions, it could be inferred that for a transaction to be within the scope of UK VAT, following 4 conditions needs to be satisfied: It is a supply of goods or services It takes place in the UK It is made by a taxable person It is made in the course or furtherance of any business carried on by that person Further with reference to secti

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Further, section 16 of CGST Act, 2017 lays down various conditions for a person to become eligible to avail input tax credit which interalia include receipt of goods and/ or services. J3. The relevant provisions of section 16 of CGST Act, 2017 is reproduced below: (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation.-For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by w

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eon, in such manner as may be prescribed: Provided also that the recipient shall be entitled to avail of the credit of input tax on payment made by him of the amount towards the value of supply of goods or services or both along with tax payable thereon. J4. Without prejudice to the aforesaid submission, if at all tax is payable on the transaction under consideration then the recipient of supply should be eligible to avail input tax credit of the supply made to him and the condition of receipt should be deemed to have been complied with by applying explanation to section 16(2)(b) of CGST Act, 2017. J5. The Applicant contends that if a transaction is held to be liable qua the supplier and not the goods or services or both, then in the same analogy on the very transaction, the credit of input tax needs to be allowed based on the recipient and not whether the goods or services or both had been received or not. J6. If the transaction is deemed to be an inter-state supply and if the Same is

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ction is made taxable, the recipient should be eligible to avail the input tax credit. In addition to submissions made earlier, applicant also intends to submit the following: A. Recent rulings laid by the Hon ble Authority of Advance Ruling A.1. Under the recent ruling of the Hon ble Authority of Advance Ruling of Maharashtra in case of BASF India Limited = 2018 (7) TMI 53 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA (Annexure 1), it was observed that the goods which are sold on high seas sale basis are non-taxable supply as no tax is leviable on them till the time of customs clearance in accordance with and compliance of section 12 of the Customs Act, 1962 and section 3 of Customs Tariff Act, 1975. Further the authorities were of the view that the tax position on the said transaction was also confirmed under circular no 3/1/2018 – IGST dated 25.5.2018 issued by Central Board of indirect Taxes and Customs (Annexure 2). A.2. Under the said circular, a clarity was provided as regards to

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d not be subject to the levy of integrated tax and the same would be levied and collected only when the warehoused goods are cleared for home consumption from the customs bonded warehouse. ….(Emphasis provided) A.4. Drawing analogy from abovementioned circular Hon. Advance Ruling Authority has held such supply would get covered under the definition of non-taxable supply as per section 2(78) of CGST Act, 2017 which means a supply of goods or services or both which is not leviable to tax under this Act. A.5. Given the aforesaid, the applicant hereby submits that no GST can be levied on any supply till goods customs frontiers of India. Accordingly, no GST on supply of goods would be applicable when supply involves movement of goods from a place outside India to another place outside India wherein such goods never Cross customs frontiers of India. 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- It is submitted that, Issue on

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in this provision is given on supplier located in India and place of such supply is outside of India would be considered as interstate supply. The applicant has taken the reference of term Supplier . But if we go through the Section 20 of IGST Act, 2017 it doesn t covers definition of Supplier. The applicant has taken the reference of Section 10 of IGST Act, 2017. In the specific type of transaction mentioned in the application the applicant is challenging the jurisdiction of levy of IGST by taking reference of Section 2(56) of CGST Act, 2017 read with Section 2(24) IGST Act, 201% The applicant contends that the provisions of GST are travelling beyond it power by stating that for the transaction under question where the goods are laying out side of India i.e. in Norway. The place of supply shall be outside India. But Section 7(5) (a) of IGST Act, 2017 is self-explanatory an IGST on this transaction will be applicable. The applicant has also taken several references of constitutional p

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cannot treated as zero rated supply. The applicant request to apply the principle of Service tax legislation can no be accepted because the provision of IGST Act are self-explanatory. The applicant has also referred circular no 33/2017 of Custom dated August 2017. In this circular highs seas transaction and corresponding imports in the Custom frontiers of India is explained. The circular doesn t speak anything wrt Section 7(5) (a) of IGST Act, 2017. As the goods are not cleared through Customs frontiers of India the same will not be applicable. In applicant has raised the issue that there is no provision in GSTR-1 and GSTR-2 and thus therefore the collection mechanism of such IGST is unclear and consequently it is unclear as whether only central government or both center and state government would receive this revenue. Merely there is no provision in the return doesn t mean that the intention of legislation was not levy IGST. The applicant has said that if IGST is applicable the recipi

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& services. 7) To claim ITC the Input Tax must be paid through electronic cash ledger or electronic credit ledger. 8) It is mandatory to file all the applicable GST returns. 9) For goods which are received in lots, you can claim ITC only after you have received the final lot. 04. HEARING The case was scheduled for 27.06.2018 for Preliminary hearing but At the request of Sh. Nitin S. Shah, Advocate , Who was having another hearing on 26.06.2018 the Preliminary hearing was preponed and held on dt. 26.06.2018 With respect to admission or rejection of present application and Sh. Nitin S. Shah, Advocate duly authorized appeared and requested for admission of application as per details in their application. During hearing Jurisdictional Officer was not present. The application was admitted and called for final hearing on 24.07.2018, Sh. Nitin Shah, Advocate appeared and made oral and written submissions. The Jurisdictional Officer, Sh. Rajesh Gaikwad Dy, Commr. Of S.T. (E-607), large Tax

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. Thereafter JN would raise an invoice on the applicant transferring the ownership of the goods to the applicant pursuant to which, the applicant would be raising an invoice on their customer located in taxable territory, thereby ultimately transferring the ownership to the Customer. In view of the above situation, the applicant has raised the following questions:- a) Whether the supply of goods which are moved front a place located outside taxable territory and are delivered at a place outside taxable territory, would be liable to tax in India under section 7(5)(a) of IGST Act? b) If answer to (a) is yes, whether the recipient of the goods i.e. person liable to pay consideration, be eligible to avail the input tax credit of the said goods? In this connection among the various submissions made by the applicant, they have also contended that :- i. The levy of IGST on said transaction mentioned above would be ultra vires the IGST Act. ii. It is outside the jurisdictional powers of the GS

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lace outside the taxable territory of India to the customer s vessel which is also the taxable territory of India. This transaction is similar to selling of goods on High Seas Sale since in both the cases the goods purchased do not cross the customs frontiers of India. In view of the above facts we would be required to refer to the provisions of IGST Act, 2017. First of all to confirm the nature of supply Of present goods i.e. whether inter-state or intra-state we are required to refer to Chapter IV of the IGST ACT, 2017, which reads as under:- CHAFTER IV DETERMINATION OF NATURE OF SUPPLY Inter-State supply 7. (1) Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in,- (a) two different Stales; (b) two different Union territories; or (c) a State and a Union territory, shall be treated as a supply of goods in the course of inter-State trade or commerce. (2) Supply of goods imported into the territory of India, till th

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ar that supply of goods imported into the territory of India till they cross the customs frontier shall be treated as supply of goods in the course of inter-state trade or commerce. From the proposed transactions placed by the applicant before us there is no doubt that the goods of the applicant would be imported goods if they are brought from outside the country into India and it is clear that when the said goods are delivered/supplied from a place outside India to a place outside India, these goods have not crossed the customs frontiers of India Thus clearly the transaction in these goods are in the nature of inter-state supply as per Section 7(2) of the IGST Act. Now when we are clear that the subject transaction in question is in the nature of inter-state sales, the liability to tax in respect of these goods would be as per Section 5 of the IGST Act which reads as under: CHAPTER III LEVY AND COLLECTION OF TAX Levy and collection 5. (1) Subject to the provisions of sub-section (2),

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ip;….; (5) …………………….; We find that proviso to Section 5(1) of the IGST Act states that: Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Ad at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962 . Thus from the above it is clear that integrated tax on goods imported into India is to be levied and collected in accordance with Section 3 of the Customs Tariff Act, 1975 and Section 12 of the Customs Act, 1962 and the same is to be levied and collected at the time of import into India. The goods are considered to be imported into India only after they clear the customs frontier after compliance of applicable procedures and payment of duty as applicable. Thus as per Section 7(2) of the IGST Act and proviso to Section

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e CGST Act is as under:- Section 2(47) of the Central Goods and Services Tax (CGST) Act, 2017, exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply . Further we find that Section 2(78) of the CGST Act defines non-taxable supply which is as under:- As per Section 2(78) of the Central Goods and Services Tax (CGST) Act, 2017, non-taxable supply means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act . Thus it is very clear that the goods sold in the subject transaction are non-taxable supply as no tax is leviable on them till the time of customs clearance in accordance with and compliance of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff act, 1975. We find that the above legal position is furth

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