Goods and Services Tax – Profiteering – refund of excess amount of GST paid – The allegation of profiteering made by the Applicant against the Respondent as well as the Supplier is not established – t
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2018 (7) TMI 1678 – DELHI HIGH COURT – TMI – Simultaneous penalties u/s 76 and 78 – Commercial coaching and training services – case of Revenue is that the assessee was aware about its service tax liability; despite this knowledge, it filed its returns claiming that no liabilities were attracted – Held that:- The appellant, when it smelt investigation and adverse orders, it apparently approached the service tax authorities and deposited the amounts which they were admittedly liable to pay. Such being the case of foreknowledge, in the opinion of the court, itself is an important factor that ought to have been and was taken into account by the lower revenue authorities. Hence, foreknowledge lead to the imposition of recovery of dues assessed as well as imposition of the penalty under Section 78 – penalty u/s 78 upheld.
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Penalty u/s 76 – effect of amendment, retrospective or prospective? – Held that:- The appellant’s contention with respect to retrospective effect of the amendment o
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in providing commercial coaching and training services and therefore, he is subject to service tax levy under the Finance Act, 1994. It was registered as a service tax assessee and it appears to have not paid up his liability for the period 09.09.2004 to 31.03.2008, however, he filed its returns stating that there was no service tax liability. The Income Tax Search and Seizure proceedings apparently triggered investigations by the Service Tax Authorities. The Assesssee in these circumstances offered to pay service tax dues and filed returns on 02.03.2009. In the meanwhile, a show cause notice was issued on 23.06.2009. For a later period, the assessee again approached the Service Tax Authorities, conceding its liability and offering to pay up its dues. The show cause notice culminated in order in original dated 06.01.2012. Besides the tax liability, the Learned Commissioner (Adjudication), who adjudicated show cause notice, ordered, imposing penalties. The relevant part of the extract o
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ove amounts is also chargeable from them under Section 75 of the Act on the aforesaid amount till the date of payment of the service tax; v. I confirm the demand of service tax amounting to ₹ 4,64,867/- (Rupees four lakh sixty four thousand eight hundred sixty seven only) against the assessee i.e. M/s. N&N Chopra Consultant Pvt. Ltd. on the value of taxable service amounting to ₹ 43,53,501/- under Business Auxiliary Service and the same be recovered from them under Section 73 (1) read with Section 68 of the Act; vi. I confirm the demand of Cess amounting to Rs,8,165/- (Rupees eight thousand one hundred sixty five only) on the amount of service tax shown in para 70.5 against them under Section 95 of the Finance (No.2) Act, 2004 read with section 66 of the Act; vii. I confirm the demand of SHEC amounting to ₹ 1,074/- (Rupees one thousand and seventy four only) on the amount of serviced tax shown in para 70.5 against them under Section 140 of the Finance Act; The ass
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e was issued and had paid ₹ 34 lakhs prior to that. Given these facts, he states that imposition of any penalty under Section 76 was itself unjustified. The facts of this case, in the opinion of this court, notes that the assessee was aware about its service tax liability; despite this knowledge, it filed its returns claiming that no liabilities were attracted. When it smelt investigation and adverse orders, it apparently approached the service tax authorities and deposited the amounts which they were admittedly liable to pay. Such being the case of foreknowledge, in the opinion of the court, itself is an important factor that ought to have been and was taken into account by the lower revenue authorities. Hence, foreknowledge lead to the imposition of recovery of dues assessed as well as imposition of the penalty under Section 78. The court is of the opinion that the invocation of Section 78 cannot be faulted with having regard to the facts of this case. Depositing the amount due
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2018 (8) TMI 137 – MADRAS HIGH COURT – TMI – Unable to upload Form GST TRAN-1 – input tax credit – Held that:- It was brought to the notice of the Central Board of Indirect Taxes (CBIC) and Customs about the difficulties faced by a section of tax payers owing to technical glitches on the GST and representations were given by the assessees. Therefore, the CBIC is setting up a Grievance Redressal Mechanism vide Circular No.39/13/2018-GST dated 03.4.2018.
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The respective Commissioner of GST and Central excise are directed to appoint Nodal Officer/Officers for the State of Tamil Nadu, if not already appointed, within a period of 2 weeks from the date of receipt of a copy of this order – petition disposed off. – Writ Petition No. 18794 of 2018 Dated:- 24-7-2018 – T. S. Sivagnanam, J. For the Petitioner : Mr. C. Bakthasiromani For the Respondents : Mr. V. Sundareswaran, SPC Mrs. G. Dhana Madhri, GA ORDER Heard both. 2. The sum and substance of the prayer of the petitioner is that they
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ed order dated 5.4.2018 in which Nodal Officers have already been appointed by the State Government. In view of the above, the petitioner is directed to approach the Nodal Officer of Dhamtari i.e., Assistant Commissioner, State GST, Raipur Circle 7 within four days from today by filing representation along with all necessary documents for redressal of his grievance and in turn, the said authority would consider and dispose of the same following the procedure laid down in para 8 of the circular dated 3.4.2018 and would take decision accordingly keeping in view that this writ petition remained pending since 26.3.2018. 8.With the aforesaid direction, the writ petition stand finally disposed of. 5. So far as the High Court of Delhi is concerned, the Delhi High Court, in W.P(C) No.1300 of 2018 etc. batch by order dated 09.4.2018, directed the petitioners therein to approach the concerned Nodal Officer with brief representations outlining their grievances and the Nodal Officer or the Redress
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e to him, appropriate action shall be taken to enable him to take credit of the input tax available to him at the time of migration. 7. The learned counsel appearing for the petitioner would submit that identical directions may be issued in this case as well. 8. It was brought to the notice of the Central Board of Indirect Taxes (CBIC) and Customs about the difficulties faced by a section of tax payers owing to technical glitches on the GST and representations were given by the assessees. Therefore, the CBIC is setting up a Grievance Redressal Mechanism vide Circular No.39/13/2018-GST dated 03.4.2018. Paragraph 8 of the said circular would be relevant for the purpose of the cases on hand, which reads as under : 8. Resolution of stuck TRAN-1s and filing of GSTR-3B 8.1 A large number of taxpayers could not complete the process of TRAN-1 filing either at the stage of original or revised filing as they could not digitally authenticate the TRAN-1s due to IT related glitches. As a result, a
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irectly with the taxpayers in this regard and submit a final report to GIC about the number of TRAN-1s filed and submitted through this process. 8.4. The taxpayers shall complete the process of filing of TRAN 1 stuck due to IT glitches, as discussed above, by 30th April 2018 and the process of completing filing of GSTR 3B which could not be filed for such TRAN 1 shall be completed by 31st May 2018. 9. Further, paragraph 5.1 of the said circular would state that GSTN, Central and State Government would appoint Nodal Officers in requisite number to address the problem a taxpayer faces due to glitches, if any, in the common portal. This would be publicized adequately. 10. An argument was advanced by the learned counsel for the assessee that paragraph 5 of the said circular dated 03.4.2018 is confined to non-TRAN-1 issues. However, this Court finds that there is no such specific distinction brought about in paragraph 5 of the said circular. Therefore, it can be safely held that the procedu
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cise (Outer). 12. Thus, writ petition stands disposed of with the following directions: (i) The respective Commissioner of GST and Central excise are directed to appoint Nodal Officer/Officers for the State of Tamil Nadu, if not already appointed, within a period of 2 weeks from the date of receipt of a copy of this order and (ii) The petitioner/assessee is directed to submit their application in accordance with paragraph 8 of the said circular dated 03.4.2018 within a period of two weeks from the date of receipt of a copy of this order to their respective Assessing Officer/Jurisdictional Officer/GST Officer. The Assessing Officer is directed to forward the application to the Nodal Officers within a period of one week. The Nodal Officer nominated will, in consultation with the GSTN, shall take note of the grievances expressed by the petitioner/assessee and forward the same to the Grievance Committee, who, in turn, would take an appropriate decision in the matter within a period of thre
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2018 (8) TMI 392 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (15) G. S. T. L. 618 (App. A. A. R. – GST) – Export of services or not? – promotion services – case of Applicant is that they not intermediary and therefore, is not liable to pay service tax in terms of Rule 6A of the Rules, 1994 read with Rule 9 of the said Rules – challenge to Advance Ruling.
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Held that:- Appellant’s submission is that the Advance Ruling Authority wrongly considered them as recruitment agent facilitating the recruitment or enrolment of students to Foreign Universities, which is not tenable – The Appellant cannot have the liberty to pick and choose only some portions of the Agreement by saying that such and such clause is not being undertaken by it. The Agreement has to be considered in its entirety.
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The Appellant in the instant case was free to refer students to Australian Catholic University (ACU) or any other University of its choice. Further, the fee paid to the Appellant was
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For The Appellant : Mr. Pulak Kumar Saha, Chartered Accountant RULING This Appeal has been by filed M/s Global Reach Education Services Private Limited, holding GSTIN 19AAGCG0859E1ZK (hereinafter referred to as the Appellant ), on 16.04.2018 against the Ruling dated 21.03.2018 pronounced by the West Bengal Authority for Advance Ruling. The Appellant is a Private Limited Company primarily engaged in promoting the courses of Foreign Universities in India among prospective students. The Appellant had approached the West Bengal Authority for Advance Ruling for deciding the determination of liability to pay goods and services tax on Appellant s output services. The West Bengal Authority for Advance Ruling after hearing the matter and examining the documents vide its Ruling dated 21.03.2018 came to the finding that the Applicant was an intermediary service provider and held that: The services of the applicant are not Export of Services and are taxable under the GST Act. The Appellant in Par
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s offered by these Universities. The Appellant argued that the function of an intermediary is to facilitate or arrange the supply of goods or services between two or more persons. The Appellant on the contrary was providing services on its own account, in the nature of marketing and promotion of courses of Foreign Universities in India and remuneration paid for these services was based on a percentage of fees paid by students admitted to the University. The Appellant submitted the copy of its agreement with Australian Catholic University (ACU) dated 23.11.2018 expiring on 22.11.209. In Clause 3.1 of the said agreement main responsibilities of the Appellant, referred to as Education Agent have been spelt out as follows- Under this Agreement the Education Agent must (to the University s satisfaction and as notified by the University from time to time): (a) promote the Courses of the University; (b) find suitable Prospective Students to undertake Courses; (c) in accordance with University
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addy India Web Services Ltd [2016-TIOL-08-ARA-ST], in connection with various support services provided by the applicant to GoDaddy US located in USA. The services included marketing and promotion services of GoDaddy US services in India by way of direct marketing, branding activities and offline marketing. GoDaddy India also provided services for supervising quality of third party customer care centre service. In this case the Authority For Advance Rulings observed that the definition of intermediary as envisaged under Rule 2(f) of the Place of Provision of Services Rules, 2012, does not include a person who provides the main service on his own account and that the applicant was providing business support services to GoDaddy US. The Appellant submitted that the facts in the case are similar to that of GoDaddy and the scope of services provided by the Appellant, inter-alia, includes marketing and promotion services. The Appellant also referred to order dated 16.03.2018 passed by the Cu
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lients namely banks and universities. Therefore, the Applicant did not arrange or facilitate main service i.e. education or loan rendered by colleges/banks. Therefore, the Applicant is not intermediary and therefore, is not liable to pay service tax in terms of Rule 6A of the Rules, 1994 read with Rule 9 of the said Rules. Hon ble Customs, Excise & Service Tax Appellate Tribunal, Chandigarh confirmed the liability to pay tax on the visa facilitation service as the same was not disputed. For other two services the Tribunal observed that ….the appellant is nowhere providing services between two or more persons. In fact, the appeWant is providing services to their clients namely banks/colleges/university who are paying commission/fees to the appellant. The appellant is only facilitating the aspirant student and introduced them to the college and if these students gets admission to the college, the appellant gets certain commission which is in nature of promoting the business of the
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(a) promote the Courses of the University; (b) find suitable Prospective Students to undertake Courses; (c) in accordance with University procedures and requirements, recruit and assist in the recruitment of suitable students; The Appellant cannot have the liberty to pick and choose only some portions of the Agreement by saying that such and such clause is not being undertaken by it. The Agreement has to be considered in its entirety. In the matter of M/s GoDaddy India Web Services Ltd [2016-TIOL-08-ARA-ST], cited by the Appellant, the nature of agreement with GoDaddy US was not identical either in terms of service rendered or the other conditions, including payment for the services rendered. In fact Authority For Advance Rulings (Central Excise, Customs and Service Tax), New Delhi, noted that… In consideration for the above-mentioned support services, the applicant shall charge a fee equal to the operating costs incurred by the applicant plus a mark up of 13 on such costs, which wil
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s length basis. Unlike the agreement of the Appellant, M/s GoDaddy India Web Services Ltd. had M/s GoDaddy US as the only customer and had several other restrictive and stringent conditions including the fee which was fixed equal to the operating cost and a markup of 13 above such cost. The Appellant in the instant case was free to refer students to Australian Catholic University (ACU) or any other University of its choice. Further, the fee paid to the Appellant was not tied to the promotional activities or expenses incurred to promote Courses of ACU but as a percentage of fee paid by the students who got admitted to ACU. In other words no consideration was paid in spite of incurring expenses by the Appellant for promoting activities of ACU, if no student joined ACU. The facts and circumstances of the case of M/s Sunrise Immigration Consultants Private Ltd. v. CCE & ST, Chandigarh, and statutory provisions involved, under which the order was passed by Hon ble Customs, Excise &
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or services or both or securities on his own account; From the above two definitions it is amply clear that the issue of main service decided by the Hon ble Customs, Excise & Service Tax Appellate Tribunal, Chandigarh, in the matter of M/s Sunrise Immigration Consultants Private Ltd. v. CCE & ST, Chandigarh, cannot be imported into intermediary , as defined under the IGST Act, 2017, as the definition of intermediary under Section 2(13) of IGST Act, is not the same as that under Rule 2(f) of the POPS Rules,2012, in as much as under GST an Intermediary is an entity who arranges/facilitates for the supply of services of another entity, which may include ancilliary services, whereas under POPS Rules, 2012, the intermediary arranges/facilitates for provisions of services of the main service provider. In this case, the Appellant promotes the courses of the University, finds suitable prospective students to undertake the courses, and, in accordance with University procedures and requi
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GST – States – SRO 318 – Dated:- 24-7-2018 – GOVERNMENT OF JAMMU AND KASHMIR FINANCE DEPARTMENT NOTIFICATION NO. SRO 318 (JAMMU & KASHMIR), DATED 24-7-2018 In exercise of the powers conferred by section 164 of the Jammu and Kashmir Goods and Services Tax Act, 2017, (Act No. V of 2017) the Government, on the recommendation of Council, hereby makes the following rules to amend the Jammu and Kashmir Goods and Services Tax Rules, 2017, namely:- (i) in rule 125, for the words "Directorate General of Safeguards", the words "Directorate General of Anti-profiteering" shall be substituted; (ii) in rule 129, for the words "Director General of Safeguards", wherever they occur, the words "Director General of Anti
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Goods and Services Tax – Nature of supply – The activity of fabrication and fitting and mounting of bus bodies on the chassis supplied by the other party is a composite supply with supply of goods, i.
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Goods and Services Tax – The value of points forfeited of the applicant on which money had been paid by the issuer of points on account of failure of the end customers to redeem the payback points wit
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Goods and Services Tax – Classification of goods – Truck Mounted Cranes (TMC) – The product manufactured/supplied by the applicant, which is resultant of mounting/fixing of crane on readymade trucks/l
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Goods and Services Tax – Classification of goods – Battery’ for Mobile Handset – Under which of the chapter headings of the Customs Tariff Act, 1985, the said product “battery for mobile handsets’’, w
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Goods and Services Tax – Started By: – Ajay Sahi – Dated:- 23-7-2018 Last Replied Date:- 1-8-2018 – SirCan contractors claim input tax on materials purchased for contruction of govt building? – Reply By Alkesh Jani – The Reply = Sir, As per section 17(5) (c) of the CGST Act, 2017, input tax credit shall not be available in respect of the works contract services when supplied for construction of an immovable property (other than plant and machinery) except where it is an input service for further supply of works contract service. In my point of view ITC is not available, whether it is a Govt. Building or other immovable property. Thanks – Reply By KASTURI SETHI – The Reply = ITC is not available. – Reply By DR.MARIAPPAN GOVINDARAJAN – The R
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actor receives from sub-contractor. No other way out to avail ITC on material. – Reply By Himansu Sekhar – The Reply = Sir, kindly go through the minutes of 20th gst council meeting. Credit on materials is clarified there. In my view, there is no ground for denying the credit. Sec 17 has not put any bar also. – Reply By Alkesh Jani – The Reply = Sir, I am thankful to our experts for expressing their valuable views. In this regards, I wish to add that here as per the query raised, the querist seems to be main contractor, further, the opening lines of Section 17 (5) clearly mentions input tax credit shall not be available the definition of Input tax is given at Section 2 (62) of CGST Act, 2017, which implies of goods and services and closing
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ed for construction of immovable property except plant and machineries.\ Such exception is not applicable to the Service provider because the materials are used for providing the services. The gross value attracts the GST. – Reply By Ajay Sahi – The Reply = Thanks to all for valuable input. Still as a contractor supplying the works contract service for contruction of govt building even if its immovable, ITC on purchases of materials to be utilized for the contruction can be availed as its for the furtherance of the business… – Reply By MUKUND THAKKAR – The Reply = ITC available in case of WCT is case of immovable property as per definition of works contract.2(119). (iv) Works contract services when supplied for construction of immovable p
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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 23-7-2018 – GST Charcha: Compliances of E-Way Bill – Alarming Bells!! Recently, a penalty of whopping INR 1.32 crores (approx.) imposed by the Hon ble High Court ( HC ) of Madhya Pradesh on a transport company namely M/s Gati Kintetsu Express Pvt. Ltd. for non-filing of Part-B of E-Way Bill has created a situation of flux amongst the transporters as to what is the real essence of introducing E-Way Bill system in India – Is it really a system to check tax evasion or to confer arbitrary powers on authorities to impose heavy penalties in case of missing details for a technical fault even when apparently there is no ill intention to evade taxes. This GST Charcha aims to draw attention on the troublesome open powers for detention and seizure of goods/conveyances in transit under Section 129 of the CGST Act, 2017 in the light of recent judgment of Madhya Pradesh HC viz-a-viz earlier ruling of Allahabad HC and the likely consequences
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r so that the conditions of validity of the movement of goods are met by the concerned parties. Even E-way bill is mandatory for non-taxable supplies through delivery challan: Kerala HC in the case of Assistant State Tax Officer Vs. Indus Towers Ltd. [ 2018 (7) TMI 1181 – KERALA HIGH COURT ], has held that E-way bill mandatory for non-taxable supplies through delivery challan. HC upholds INR 1.32 crore penalty for non-filing of E-Way Bill 'Part B' during inter-state transportation of goods A matter arose before the Madhya Pradesh HC in the case of Gati Kintetsu Express Pvt. Ltd. Vs. Commissioner, Commercial Tax of MP & Ors [ 2018 (7) TMI 1097 – MADHYA PRADESH, HIGH COURT ], wherein a transport company was carrying consignment of goods from Pune to Noida via Indore where it was apprehended in Indore for not carrying along the requisite and properly filled up E-Way Bill. The transport company failed to fill up Part-B of the E-Way Bill and resultantly the goods were seized and
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urt responded that no such grievance was uploaded on the GST grievance portal and hence such a plea cannot be availed by the petitioners for such non-compliance. Gloomy fate of Section 129 powers: With all due regards to the Hon ble Madhya Pradesh HC, there does not seems any viable justification in imposing such harsh penalty on assessee for mere failure to fill Part B of E Way Bill. The fact that E-Way Bill was carried with the consignment and having all particulars duly filled in Part A of E-Way Bill, evasion of taxes cannot be assumed arbitrarily. It needs to be appreciated that the primary purpose for introducing E-Way Bill is to track the movement of goods and ensure no tax evasion. But, when the petitioner has already discharged his liability of payment of tax, then imposing such a severe penalty is too harsh for a bona fide law-abiding citizen. Further, it is a settled proposition of fiscal jurisprudence that mere non-compliance of procedural aspect of law without the intention
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Goods and Services Tax – GST – By: – Bimal jain – Dated:- 23-7-2018 Last Replied Date:- 18-8-2018 – GST Charcha: Whether Intermediary Services are export of Services? Though, it has been a year since the implementation of GST, yet there are some problems which require immediate attention of the government to clarify, one of such dubious issue is place of supply of intermediary services for the chargeability of GST. It is a general trade practice for the Indian entities to provide intermediary services to the recipient located outside the Indian territory. This GST Charcha aims to determine whether the supply of services by the intermediaries to the recipients located outside India amounts to export of services or not? Intermediary services Before proceeding with the issue at hand, it is important to understand the meaning of intermediary first. Under Section 2(13) of IGST Act, 2017 ( IGST Act ), intermediary has been defined to mean a broker, an agent or any other person, by whatever
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ry . Diagnosis of Section 13(8)(b) of the IGST Act At the start, it must be clarified that the services provided by intermediaries located in India to the recipient located outside India in lieu of fee/commission charged for the said services amounts to supply of services. Now, in order to determine whether the said transaction will be Export of Services and/ or an intra-state supply or inter-state supply, the place of supply of such services must be determined. Section 13 of IGST Act determines the place of supply of services where either the location of supplier or the location of recipient is outside India. Here, default Section 13(2) provides that the place of supply shall be the location of the recipient unless the services falls within the ambit of specified sections from 13(3) to 13(13) of the IGST Act. In pursuance of Section 13(8)(b) of the IGST Act, the place of supply in case of the Intermediary services shall be the location of the supplier of services . Example: If XYZ is
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d the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8 Therefore, going by the strict interpretation of Section 13(8) of IGST Act, the supply of services by the Intermediaries to the recipients outside India are not export of services. Recent Judicial Advance Ruling: Global Reach Education Services Pvt. Ltd: In this case, the applicant was promoting the foreign university and was helping them in enrolling Indian students. In providing the promotional services, the promotional company was charging commission/fee from the foreign university. In this very case, the authorities found that the Indian representative was an intermediary acting as an independent representative. Citing Section 13(8)(b) of the IGST Act, the Hon ble West Bengal Advance Ruling Authority ruled that the place of supply shall be the place of supplier of service and such intermediary services would not be termed as export of services. Intermediary se
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er the intermediary services provided by a banking company to its offshore account holders be treated as an intra-State supply or an inter-State supply for payment of GST? The department answered citing Section 13(8)(b) of IGST Act and responded that the place of supply of such services is the location of the provider of services. As the location of supplier and place of supply are in same State, such supplies will be treated as intra-State supply and Central tax and State tax or Union territory tax, as the case may be, will be payable. The clarification of the department makes it amply clear that the intermediary services provided to an offshore account holder shall be treated to be intra-state supply where the place of supply shall be location of the service provider. Now, the question is whether the said answer as given for this FAQ is correct? Diagnosis of Section 8(2) and Section 7(5)(c) of the IGST Act: A contrasting and opposite view is reflected for the determination of place o
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;. c) In the taxable territory, not being an intra-State supply and not covered elsewhere in this section, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce . Therefore, it may be safely concluded with conjoint reading of Sections 8(2) and 7(5)(c) of the IGST Act that intermediary services given to the recipient outside India by an intermediary in India is an Inter-State Supply. Economics behind why intermediary services should be termed as export of services: India has already established its name as one of the leaders in providing intermediary services to foreign recipients of prospective Indian customers. So, it is the responsibility of the government to encourage this major forex earning sector by making the international supply of the Indian intermediary services highly rewarding and internationally competitive. This can only happen when supply of such services is brought within the ambit of export of services i.e. when the
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on of supplier and place of supply i.e. location of supplier, both are outside India. Hence, no reverse charge will be applicable in hands of the Indian recipient of intermediary services. This logic also supports the contention of changing place of supply provisions for intermediary services from location of supplier to location of recipient. Application of Section 13(8) of IGST Act is reducing the Indian forex reserves by making the imports tax free and exports taxable. For instance, when the supplier is in the foreign territory and the intermediary is also located in the foreign territory, but the location of the recipient is in the Indian Territory. Now, if the location of foreign intermediary service provider is made the place of supply, then this transaction will be kept outside the ambit of GST and the consequent transaction shall be tax-free for the Indian recipient making the import of service much more convenient and feasible for Indian recipient as compared to Indian interme
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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 23-7-2018 – Advance rulings are important in any tax law as it provides a forum for clarification and possible interpretation of statutory provisions. Moreover, it conveys the legislative intention from the revenue s view point. Provisions of advance ruling are contained in section 95 to 106 of CGST Act, 2017 and State / UT GST enactment. Rules 103 to 107 of also provide for forms, manner, certification etc. The Authority for Advance Rulings (AAR) have been set up in all the states and we have now over 100 advance rulings on different issues already pronounced by various State Authorities. The orders of Appellate Authority have also started pouring in. A major issue presently being faced is about multiple authorities (equal to number of States), each pronouncing a ruling of its own even if the matter is covered by some other State AAR s rulings. There would be situations where we may have different rulings on same quest
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ices and are taxable services under GST. Such services are provided only as a representative of foreign university and not as an independent service provider. Therefore, place of supply shall be governed by section 13(8) (b) and not by section 13(2) of IGST Act. Place of supply of services shall be the location of service provider in India and it will not qualify as export of service. [Global Reach Education Services Pvt. Ltd., In re. (2018) 4 TMI 808 (AAR, West Bengal); ] Advance Ruling on applicability of GST on recovering charges Applicant is engaged in business of generation, transmission and distribution of electricity which calls for laying and maintenance of power lines and other incidental work which require digging up of trenches. The Municipal Authorities grant the needful permissions, however, subject to charges for restoring the street or pavement which has been dug up. Thus, charges are recovered by the Municipal Authorities to restore that portion of the street or pavemen
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ns under section 23(1) of GST Act, subject to condition that applicant is not otherwise liable to pay tax under Reverse Charge mechanism under section 9(3) of GST Act or section 5(3) of IGST Act. [In Re; Joint Plant Committee (2018) 67 GST 262 (AAR- West Bengal); (2018) 4 TMI 809 (AAR-West Bengal) ; ]. Advance Ruling on catering services to manufacturing industries The applicant is an industrial canteen contractor who provides catering services to manufacturing industries at various places of their customers who have in house canteens at their factories. The applicant normally charges Goods & Services Tax at the rate of 18% classifying their services under heading 9963 as outdoor catering. One of the customer of the applicant asked the applicant to charge GST at the rate of 12%. The applicant therefore, sought a clarification regarding the rate of taxability, before the AAR. The applicant submitted that as per the contract made between the applicant and client, the canteen space an
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) dated 30.06.2017, as amended, issued under the Gujarat Goods and Services Tax Act, 2017, attracting Goods and Service Tax at the rate 18%. [In Re; Rashmi Hospitality Services Private Limited (2018) 5 TMI 1181 (AAR – Gujarat); ]. Advance Ruling on classification and rate of tax Tariff item 83062120 covers Trophies . This would be trophies of base metal and not of any other material. Mere mention of word trophies would not mean that trophies of any material would be covered by Heading. Chapter 83 is for miscellaneous articles of base metal. Hence, Heading 8306 falling in Chapter 83 would have to be understood in that sense only. Therefore, even though word TROPHY is specifically mentioned under 83062920, all trophies made of any material cannot be classified under this HSN and are to be classified as per applicable provisions of Customs Tariff Headings. Caesarstone which is original engineered quartz surface is an article made from artificial stone. It is a product made using artificia
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2018 (7) TMI 1746 – KERLA HIGH COURT – 2018 (15) G. S. T. L. 648 (Ker.) – Input tax credit – failure to upload FORM GST TRAN-1 within the stipulated time – case of petitioner is that though he attempted to upload it within the time, he failed because of some system error – Held that:- Not only the petitioner but also many other people faced this technical glitch and approached this Court. Both the learned counsel submit that this Court on earlier occasions permitted the petitioners to apply to the Nodal Officer for the issue resolution.
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In this case also, the petitioner may apply to the the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner’s uploading FORM GST TRAN-1, wit
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ome system error. The petitioner, therefore, seeks directions to enable him to take credit of the available input tax. 4. Heard the learned counsel for the petitioner and the learned Government Pleader, besides perusing the record. 5. There is a circular issued by the Government of India for setting up an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal. Paragraph 5 of the circular outlines the procedure the Nodal Officers is to follow. It reads: 5. Nodal officers and identification of issues 5.1 GSTN, Central and State government would appoint nodal officers in requisite number to address the problem a taxpayer faces due to glitches, if any, in the Common Portal. This would be
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n of tax payers are affected. GSTN shall forward the same to the IT Grievance Redressal Committee with suggested solutions for resolution of the problem." (italics supplied) 6. Not only the petitioner but also many other people faced this technical glitch and approached this Court. Both the learned counsel submit that this Court on earlier occasions permitted the petitioner to apply to the Nodal Officer for the issue resolution. 7. So, in this case also, the petitioner may apply to the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner s uploading FORM GST TRAN-1, without reference to the time-frame. Ordered so. 8. I may also observe that if the petitioner applies within two
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2018 (8) TMI 164 – CESTAT NEW DELHI – TMI – Valuation – inclusion of VAT in assessable value – Revenue was of the view that VAT liability discharged by utilising the investment subsidy granted in Form 37B cannot be considered as VAT actually paid, for the purpose of Section 4 of the Central Excise Act, 1944 – Held that:- The identical issue has come up before the Tribunal in the case of Shree Cements Ltd. V/s CCE [2018 (1) TMI 915 – CESTAT NEW DELHI], where it was held that there is no justification for inclusion in the assessable value, the VAT amounts paid by the assessee using VAT 37B Challans – appeal allowed – decided in favor of appellant. – Excise Appeal No. 50900 of 2018 – A/52624/2018-EX[DB] – Dated:- 23-7-2018 – Hon ble Mr. Anil Choudhary, Member (Judicial) And Hon ble Mr. C L Mahar, Member (Technical) Shri G K Sarkar, Shr Prashan Srivastava, Advocates for the Appellants Ms Tamana Aalam, AR for the Respondent ORDER Per : Anil Choudhary The present appeals have been filed aga
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y granted in Form 37B cannot be considered as VAT actually paid, for the purpose of Section 4 of the Central Excise Act, 1944. Accordingly, the Revenue proceeded to include such subsidy amounts in the value of the goods cleared by the appellants and demanded the difference of the duty. The impugned orders also charged interest and penalty. Being aggrieved, the appellants have filed the present appeals. 3. With this background we heard the Ld. Advocates for the appellant and Shri M.R. Sharma, Ld DR for the Revenue. 4. After hearing both sides and on perusal of record, it appears that the identical issue has come up before the Tribunal in the case of Shree Cements Ltd. V/s CCE, Alwar 2018-TIOL-748-CESTAT-DEL where it was observed that:- 7. We have heard both sides at length and perused the appeal record. As out lined above, the appellants are covered by the Investment Promotion Schemes of the Rajasthan Government. In terms of the various schemes of the Rajasthan Government, the appellant
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egorically held that after 01/07/2000, unless the sales tax/VAT is actually paid to the good, no benefit towards excise duty can be given in terms of Section 4(3)(d). However, we note that the Tribunal in the case of Welspun Corporation Ltd. (Supra) has distinguished the decision of the Apex Court in the light of Gujarat VAT Act, 2003. In the Welspun Corporation Ltd. case, the assesse had opted for remission of tax scheme under which a portion of the VAT paid was remitted back to the assessee. The Tribunal held that such subsidy amounts are not required to the included in the transaction value. 9. In the present case we know that for the initial period the assessees are required to remit the VAT recovered by them at the time of sale of the goods manufactured. A part of such VAT is given back to them in the form of subsidy in Challan 37 B. Such Challans are as good as cash but can be used only for payment of VAT in the subsequent period. In terms of the scheme of the Government of Rajas
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set. There was no option to claim exemption from payment of sales tax. The quantum of remission was based upon the investment made in the fixed assets. The condition of the remission amongst others included to remain in production, employment of certain percentage of persons in assessee unit, and numerous other conditions as brought out in Para 9 of the impugned Order-in-Appeal. 11. By following the decision of the Tribunal in the Welspun Corporation Ltd. case we conclude that there is no justification for inclusion in the assessable value, the VAT amounts paid by the assessee using VAT 37B Challans. 12. In the result, the impugned orders are set aside and the appeals are allowed. 5. By following our earlier order (supra), we set aside the impugned order and allow the appeal with consequential relief, if any. ( Dictated and pronounced in the open Court ) – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement – taxmanagementindia.com
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2018 (8) TMI 448 – CESTAT DELHI – TMI – CENVAT Credit – duty paying invoices – supplementary invoices, raised by M/s. South Eastern Coalfields Ltd., for supply of coal – Rule 9(1)(b) of CCR 2004 – matter pending adjudication – Held that:- Tribunal in connected matter of South Eastern Coalfield Ltd. in Appeal No.52023-52026/2014-DB dated 3.4.2017 vide Final Order No.52723-52726/2017 dated 3.4.2017, taking notice of pendency of similar matter before the Hon’ble Supreme Court in the case of South Eastern Coal Fields Ltd. and ors. and also other cases, referred to in the above case, disposed of the appeal of the South Eastern Coal Fields Ltd., granting liberty to them to come again after having final verdict from the Hon’ble Supreme Court.
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The appellant is entitled to take cenvat credit on the supplementary invoices in question – There is no element of fraud and suppression on the part of the appellant. The issue herein is recurring in nature – appeal allowed – decided in favor of
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e of their inputs from SECL, Raigarh a subsidiary company of M/s. Coal India Ltd. Subsequently, they had received supplementary invoices issued by M/s. SECL during the period from June 2013 to September 2013 charging additional amount of excise duty & cess on royalty charges/stowing excise duty , paryavaran upkar , vikas upkar , forest fee and entry tax etc. in respect of coal earlier supplied by them. They had paid additional amount of duty & cess ₹ 63,69,674/- and taken credit in their cenvat credit register, which it appeared, are not valid documents for availing cenvat credit in terms of Rule 9(1) (b) of the CCR, 2004.Accordingly, a show cause notice No. V(15)ADJ/UDR/208/2015/1554 dated 29.09.2015 was issued to the appellant and subsequently proceeding was finalized by the adjudicating authority vide order-in-original no.77/CE/UDR/2016-17/ADC dated 04.01.2017 wherein Cenvat Credit was disallowed and ordered to recover the same along with interest and penalty. The said
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by SECL, with the Govt. exchequer. 5. Ld. Counsel appearing for the appellant argues that in view of the admitted facts that the demand of duty on such charges like royalty charges, etc. is subjudice before the Hon ble Supreme Court in Civil Appeal No.4056-5064/1999 (Mineral Area Development Vs. Steel Authority of India) and as such, the issue is debatable as to inclusion of aforesaid charges in the assessable value and as such, denial of cenvat credit by the Revenue on the ground of fraud, suppression is not tenable and have no legs to stand. The ld. Counsel further relies on this Tribunal s order in Assessee s own case on identical issue decided in his favour vide Final order no. 52486/2018 dated 03.07.2018. 6. Learned AR for the Revenue have reiterated the findings of the impugned order. 7. Having considered the rival contentions of both the sides, we take notice that this Tribunal in connected matter of South Eastern Coalfield Ltd. in Appeal No.52023-52026/2014-DB dated 3.4.2017 v
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2018 (8) TMI 492 – CESTAT KOLKATA – TMI – CENVAT Credit – common input service used for both taxable and exempted services – Rule 6(3) of CENVAT Credit Rules – Held that:- The lower authority has failed to make any justifiable grounds before confirmation of demand in respect of submission of the appellant that they never availed and utilised Input service credit towards exempted service in respect of road construction. The department also failed to submit any calculation sheet/reconciliation statement specifying the details of such alleged Cenvat Credit with supportive evidence and in absence of any such evidence this appellate forum is not in a position to make the correct decision.
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Before raising such demand, proper investigation is required and in absence of any material facts with corroborative evidence, the same is not maintainable.
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Appeal dismissed – decided against Revenue. – Appeal No.ST/75604/2018 – FO/76466/2018 – Dated:- 23-7-2018 – Shri P.K. Choudhary, Member
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s etc. The department also observed that they have neither exercised any option nor paid any amount of duty under Rule 6 which resulted non-payment of Service tax of ₹ 20,53,252/- (5% of ₹ 4,10,65,033/-. 4. I find that the ld. Commissioner (Appeals) has dealt the issue in detail. The relevant portions of the impugned order are reproduced here: 5. I have carefully gone through the case records on record, grounds of appeal and submissions made subsequently. On perusal of the O/O, I find that the lower authority have confirmed the demand on the ground that as the notice has not opted for maintaining separate accounts for providing taxable and exempted service, the department was free to demand amount equal to five percent on the value of exempted service i.e. ₹ 4,10,65,033/- under Rule 6(3)(i) of the Rules. The appellant contended that the observation of the lower authority and stated that the alleged availing of credit on the inputs on Security Service, Courier Service,
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the basis of interference and not on the basis of correct fact based on supportive evidence. I find the lower authority has also failed to make any justifiable grounds before confirmation of demand in respect of submission of the appellant that they never availed and utilised Input service credit towards exempted service in respect of road construction. The department also failed to submit any calculation sheet/reconciliation statement specifying the details of such alleged Cenvat Credit with supportive evidence and in absence of any such evidence this appellate forum is not in a position to make the correct decision. Here, on the basis of mere Audit objection, the department raised the demand without making necessary investigation and without any basis of evidence when the appellant claims that they did not maintain separate ledger as no Cenvat Credit was taken being exempted service. It is also noticed from their submission that the appellant did not sub-let the work of road constru
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er charges and Security expenses as shown in the financial statement for the financial year 2011-12 does not relate to construction of road. 8. Regarding the aspect of limitation as raised by the appellant, I find that the impugned demand notice was issued on 12.04.2013 involving the period from 2008-09 to 2011-12 by invoking extended period for the reasons that they have suppressed the income of exempted service i.e. Construction of road in their statutory return. On scrutiny of the case records, I find they maintained proper records and the fact of availment of Cenvat Credit were duly disclosed in their statutory return during the disputed period. More so, when the department detected non-maintenance of separate records during the investigation, the appellant produced all the records, as demanded and the department did not raise objection towards non-submission of document. Hence, the appellant cannot be accused that they have suppressed the material facts to the department. I find t
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GST – States – F-10-36/2018/CT/V (55) – Dated:- 23-7-2018 – Commercial Tax Department Mantralaya, Mahanadi Bhawan, Naya Raipur Naya Raipur, Dated 23rd July, 2018 NOTIFICATION No. F-10-36/2018/CT/V (55).-In exercise of the powers conferred by Section 164 of the Chhattisgarh Goods and Services Tax Act, 2017 (7 of 2017), the State Government hereby makes the following rules further to amend the Chhattisgarh Goods and Services Tax Rules, 2017, namely:- 1. In the Chhattisgarh Goods and Services Tax Rules, 2017, – (i) in rule 109A. of sub-rule (1) in part(a), for the words Commissioner (Appeal) , the words Additional Commissioner (Appeal) and for the words Additional or Joint Commissioner , the words Joint Commissioner or Deputy Commissioner sha
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GST – States – G.O.Ms.No. 392 – Dated:- 23-7-2018 – REVENUE DEPARTMENT (COMMERCIAL TAXES-II) THE ANDHRA PRADESH GOODS AND SERVICES TAX ACT, 2017 (ACT NO. 16 OF 2017) – NOTIFYING GOODS OF PERISHABLE OR HAZARDOUS NATURE UNDER SECTION 67(8) OF THE ANDHRA PRADESH GOODS AND SERVICES TAX ACT, 2018. [G.O.Ms.No.392, Revenue (Commercial Taxes-II), 23rd July, 2018.] ORDER: In exercise of the powers conferred by sub-section (8) of section 67 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017), the Government of Andhra Pradesh hereby notify the goods or the class of goods mentioned in the Schedule below, which shall, as soon as may be after its seizure under sub-section (2) of section 67 of the said Act, be disposed of by the pr
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f the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) 12. Fireworks 13. Red Sander 14. Sandalwood 15. All taxable goods falling within Chapters 1 to 24 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) 16. All unclaimed/abandoned goods which are liable to rapid depreciation in value on account of fast change in technology or new models etc. 17. Any goods seized by the proper officer under section 67 of the said Act, which are to be provisionally released under sub-section (6) of section 67 of the said Act, but provisional release has not been taken by the concerned person within a period of one month from the date of execution of the bond for provisional release. Dr. D. SAMBASIVA RAO, Special Chief Secretary to
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GST – States – G.O.Ms.No. 393 – Dated:- 23-7-2018 – REVENUE DEPARTMENT (COMMERCIAL TAXES-II) [G.O.Ms.No. 393, Revenue (Commercial Taxes-II), 23rd July, 2018.] NOTIFICATION In exercise of the powers conferred by section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017), the Government hereby make the following rules to amend the Andhra Pradesh Goods and Services Tax Rules, 2017, issued in G.O.Ms.No.227, Revenue (CT-II) Department, dated. 22-06-2017 as subsequently amended namely, – (1) These rules may be called the Andhra Pradesh Goods and Services Tax (Twentieth Amendment) Rules, 2018. (2) They shall be deemed to have come into force with effect on and from 19.06.2018. AMENDMENTS In the Andhra Pradesh Goods and
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ation Numbers for the purposes of the said Chapter XVI. ; (ii). in rule 138C, after sub-rule (1), the following proviso shall be inserted, namely:- Provided that where the circumstances so warrant, the Chief Commissioner, or any other officer authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days. Explanation.-The period of twenty four hours or, as the case may be, three days shall be counted from the midnight of the date on which the vehicle was intercepted. ; (iii). in rule 142, in sub-rule (5), after the words and figures of section 76 , the words and figures or section 129 or section 130 shall be inserted; (iv). af
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GST – States – G.O.Ms.No. 391 – Dated:- 23-7-2018 – REVENUE DEPARTMENT (COMMERCIAL TAXES-II) [G.O.Ms.No. 391, Revenue (Commercial Taxes-II), 23rd July, 2018.] NOTIFICATION In exercise of the powers conferred by section 164 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No. 16 of 2017), the Government of Andhra Pradesh hereby make the following rules further to amend the Andhra Pradesh Goods and Services Tax Rules, 2017, issued in G.O.Ms.No.227, Revenue (CT-II) Department dated.22-06-2017 as subsequently amended. (1) These rules may be called the Andhra Pradesh Goods and Services Tax (Nineteenth Amendment) Rules, 2018. (2) Save as otherwise provided, they shall be deemed to have come into force with effect on and from 13th June, 2018. AMENDMENTS In the Andhra Pradesh Goods and Services Tax Rules, 2017, – i. in rule 37, in sub-rule (1), after the proviso, the following proviso shall be added, namely:- Provided further that the value of supplies on account of any amount adde
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s (4A) or (4B) or both; and (b) Adjusted Total turnover shall have the same meaning as assigned to it in sub-rule (4). iv. with effect on and from 01st July, 2017, in rule 95, in sub-rule (3), for clause (a), the following shall be substituted, namely:- (a) the inward supplies of goods or services or both were received from a registered person against a tax invoice v. in rule 97, in sub-rule (1), after the proviso, the following proviso shall be inserted, namely:- Provided further that an amount equivalent to fifty per cent of the amount of cess determined under sub-section (5) of section 54 read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (Act No. 15 of 2017), shall be deposited in the Fund. ; vi. in rule 133, for sub-rule (3), the following shall be substituted, namely,- (3) Where the Authority determines that a registered person has not passed on the benefit of the reduction in the rate of tax on the supply of goods or services or the benefit of
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(n), the following clause shall be inserted, namely:- (o) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply. ; viii. in FORM GSTR-4, in the Instructions, for instruction 10, the following shall be substituted, namely:- 10. For the tax periods July, 2017 to September, 2017, October, 2017 to December, 2017, January, 2018 to March, 2018 and April, 2018 to June, 2018, serial 4A of Table 4 shall not be furnished. ; ix. with effect on and from 01st July, 2017, in FORM GST PCT-01, in PART B, in the Table a. against Sl. No. 4, in column (3) after entry (10), the following shall be added, namely:- (11) Sales Tax practitioner under existing law for a period of not less than five years (12) tax return preparer under existing law for a period of not less than five years ; b. after the heading Consent , the following shall be inserted, namely:- Declaration I hereby declare that: i. I am a citizen of India; ii. I am a person of sound mind; ii
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ward supplies in case refund is claimed by recipient Tax paid GSTIN the supplier No. Date Taxable value Integrated Tax Central Tax State Tax/Union territory Tax Cess 1 2 3 4 5 6 7 8 9 ; xi. in FORM GST RFD-01A, in Annexure-1, a. for Statement IA, the following Statement shall be substituted, namely:- Statement 1A [see rule 89(2)(h)] Refund Type: ITC accumulated due to inverted tax structure [clause (ii) of first proviso to section 54(3)] Sl.No. Details of invoices of inward supplies received Tax paid on inward supplies Details of outward supplies issued Tax paid on outward supplies GSTIN of the supplier No. Date Taxable value Integrated Tax Central Tax State Tax/Union territory Tax No. Date Taxable value Integrated Tax Central Tax State Tax/Union territory Tax 1 2 3 4 5 6 7 8 9 10 11 12 13 14 ; b. for Statement 5B, the following Statement shall be substituted, namely:- Statement 5B [see rule 89(2)(g)] Refund Type: On account of deemed exports (Amount in Rs) Sl.No. Details of invoices o
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2018 (9) TMI 1657 – CESTAT CHENNAI – TMI – Classification of services – appellant had outsourced their matrimony activity to other associate centers and had entered into franchise agreement with these associate centers – whether classified under Franchise service or under transfer of intellectual property service?
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Held that:- The recital of the agreement in the first paragraph itself states that the appellant (formerly Bharatmatrimony.com) is referred as a franchisor and the associate member with whom the agreement is entered is referred to as the franchisee – it is not an agreement for mere transfer of intellectual property. In fact, the franchise agreement stipulates for payment of franchise fee charged by the franchisor upon the franchisee.
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The argument of the ld. counsel that it involves only transfer of intellectual property cannot be accepted for the reason that the agreement involves conditions wherein the manner of functioning and operation of the associate center
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Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri Akhil Suresh, Advocate for the Appellant Shri S. Govindarajan, AC (AR) for the Respondent ORDER Per Bench Brief facts are that the appellant is a private limited company having branches all over India and are providing matrimonial services through online information on website, providing private employment exchange for employers and job seekers to find the candidates and jobs respectively. They are also aiding property transactions in the websites by creating a common meeting ground for those dealing in real estate business and providing information on buying and selling of automobiles. For all these services, they had registration under the category of Advertisement Services. During the course of audit by the departmental officers, it was noticed that during 2005 – 06, appellant had outsourced their matrimony activity to other associate centers and had entered into franchise agreement with these associate centers. These
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hri Akhil Suresh appeared and argued the matter. He adverted to the agreement entered into by the appellant with their associate centers and submitted that the agreement is mere granting of right to use the trademark of appellant company. As per the definition of franchise service, as it stood prior to 16.6.2005, there was specific condition and characteristics in order to classify the services under franchise service. After the introduction of Intellectual Property Service from 10.9.2004, the definition of franchise service underwent a change with effect from 16.6.2005 covering only those services of granting representative right to use the process identified with trademark, logo or symbol. Thus from 10.9.2004, difference has been drawn, through Intellectual Property Service were temporarily right is granted to use all intangible properties like trademark, technical know-how etc. He argued that as per the agreement, it is transfer of intellectual property right and would not fall unde
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uld be covered under Intellectual Property service. Thus, the ld. counsel has argued that the services would not fall under franchise service but would be more akin to Intellectual Property service. 3. In addition, it was submitted that the demand cannot sustain as the show cause notice has been issued invoking the extended period alleging suppression of facts. That the appellant has not suppressed any facts. In fact, an internal audit was conducted in 2006 wherein the agreement was scrutinized by the officers during the course of audit and there was no objection raised with regard to the said agreement to be taxable under franchise service. Subsequently, in September 2007, another internal audit took place and the department has scrutinized the agreement, balance sheet and profit and loss account and thereafter has raised the demand invoking the extended period of limitation. In the alternative, he prayed that in any case, since the appellant was under bonafide belief that the said ac
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upport service like design of marketing know-how, technical know-how etc. That these would clearly show that it is not an agreement for transfer of intellectual property but an agreement for franchise service. With regard to limitation, he submitted that the appellant have suppressed the activity of rendering franchise service, with intent to evade payment of service, the show cause notice issued invoking the extended period is proper. 5. Heard both sides. 6. The main ground that has been argued by the ld. counsel is that the activity does not fall under franchise service and that it would more rightly be classified under transfer of intellectual property service. We have perused the agreement dated 4.9.2006 furnished by the ld. counsel for appellant. The recital of the agreement in the first paragraph itself states that the appellant (formerly Bharatmatrimony.com) is referred as a franchisor and the associate member with whom the agreement is entered is referred to as the franchisee.
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arged by the franchisor upon the franchisee. The argument of the ld. counsel that it involves only transfer of intellectual property cannot be accepted for the reason that the agreement involves conditions wherein the manner of functioning and operation of the associate center is laid down. Thus the franchisor has a right to dictate or direct how the franchisee has to carry on the business. There is also a condition for the franchisee to attend the training conducted by them. Clause 5.3 states that the administration of centre shall be by the Centre Manager, the counselors etc. This shows that the franchisor issues guidelines to the franchisee as to how the business has to run, how the staff and employees have to be recruited etc. After going through the agreement, we are convinced that the agreement is a franchise agreement. For the same reason, we hold that the demand sustains on merits. 8. The ld. counsel has argued on the ground of limitation. It is his case that there was an audit
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Goods and Services Tax – GST Council recommends GST rates reduction on several goods & for specified handicraft items – TMI Updates – Highlights
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Goods and Services Tax – GST Council Decisions – GST on goods and services – Rates, Exemptions, Reverse Charge, Procedural aspects etc. – As updated on 21-7-2018 – TMI Updates – Highlights
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Goods and Services Tax – GST – Dated:- 21-7-2018 – GST COUNCIL RECOMMENDS GST RATES REDUCTION ON SEVERAL GOODS & for specified handicraft items GST rates have been recommended to be brought down to Nil on Sanitary Napkins & Rakhi & more Goods GST Council recommends for allowing refund to fabrics on account of inverted duty structure Rate change made in respect of footwear The GST Council in its 28th meeting held here today under the Chairmanship of Shri Piyush Goyal , Union Minister for Railways , Coal , Finance & Corporate Affairs took following decisions on GST Rate on Goods . I. GST rates reduction on 28% items: 28% to 18% Paints and varnishes (including enamels and lacquers) Glaziers putty, grafting putty, resin cements Refrigerators, freezers and other refrigerating or freezing equipment including water cooler, milk coolers, refrigerating equipment for leather industry, ice cream freezer etc. Washing machines. Lithium-ion batteries Vacuum cleaners Domestic electri
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ated ITC on account of inversion will not be allowed. However, considering the difficulty faced by the Fabric sector on account of this condition, the GST Council has recommended for allowing refund to fabrics on account of inverted duty structure. The refund of accumulated ITC shall be allowed only with the prospective effect on the purchases made after the notification is issued. III. GST rates have been recommended to be brought down from,- 18%12%/5% to Nil: Stone/Marble/Wood Deities Rakhi [other than that of precious or semi-precious material of chapter 71] Sanitary Napkins, Coir pith compost Sal Leaves siali leaves and their products and Sabai Rope PhoolBhariJhadoo [Raw material for Jhadoo] Khali dona. Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to Ministry of Finance. 12% to 5%: Chenille fabrics and other fabrics under heading 5801 Handloom dari Phosphoric acid (fertilizer grade only). Knitted cap/topi having retail
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Art ware of iron Art ware of brass, copper/ copper alloys, electro plated with nickel/silver Aluminium art ware Handcrafted lamps (including panchloga lamp) 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) Ganjifa card 12% to 5%: Handmade carpets and other handmade textile floor coverings (including namda/gabba) Handmade lace Hand-woven tapestries Hand-made braids and ornamental trimming in the piece Toran VI Miscellaneous Change relating to valuation of a supply: IGST @5% on Pool Issue Price (PIP) of Urea imported on Govt. account for direct agriculture use, instead of assessable value plus custom duty. Exemption from Compensation cess to Coal rejects from washery [arising out of cess paid coal on which ITC has not been taken]. VII. Clarifications/amendments as regards applicability of GST rate in respect of certain goods recommended by GST Council whic
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