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In Re: Raghav Productivity Enhancers Limited
GST
2018 (10) TMI 1045 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (18) G. S. T. L. 637 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 1-9-2018
RAJ/AAR/2018-19/15
GST
NITIN WAPA, AND SUDHIR SHARMA
Present for the applicant: Mr. Keshv Maloo (Authorized Representative)
Note: Under Section 100 of the CGST & RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST & RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by the applicant is fit to pronounce advance ruling as it falls under ambit of the Section 97 (2) (a), it is given as under:
(a) Classification of goods / or services or both.
Further, the applicant being a registered person, GSTIN is 08AAECR5585Q1ZG, as per the declaration given by him in Form ARA-OI, the issue raised by the applicant is neither pendi

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o small granules through two-three levels of crushing. The primary crushing is done in Jaw Crusher in which stone size is reduced to 100mm -125mm which is followed by secondary crushing which is carried out in Granulator where stones obtained from Jaw Crusher is reduced further to 30mm-35mm.
d. The granules obtained from above process of crushing is stored in Slip-Buffer Storage from where they are fed into Vertical Shaft Impactor where final crushing takes place to reduce the stone size to 1mm to 7mm.
e. The stones are then separated into different Silo according to their size through a Magnetic Separator. This is done through 3 sets of Vibrators.
f. Now comes the final stage of manufacturing where the most important ingredient i.e. Boric acid is mixed in the ratio of approx 0.8% to 2% into the stones/ granules of quartz through Electronically Controlled Mixing which acts as a binding material to bind the granules/ stones.
g. After mixing of Boric Acid the final product i.e. Ra

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nes without mixing of Boric acid cannot be used for lining of furnace, hence is not a refractory material, hence, cannot be called as Ramming Mass.
2. Applicant has sought classification of material if it is a crushed quartz stone and used by recipient as refractory material in lining of induction furnace where as technical fact is that without mixing boric acid, crushed quartz stone cannot be used as refractory material. It may be a case of wrong declaration. However, this is a usual business practice in industry & classification is done in HSN 2506 with 5% GST (CGST+SGST).
3. In case of applicant the quartz stone is mixed with the Boric acid which becomes a refractory material and is classified under HSN 3816 in Schedule III chargeable to 18% GST.
4. Further applicant has stated that other big manufactures in the industry engaged in the manufacture of Ramming Mass such as TRL Krosaki Refractories Ltd (Formerly TATA Refractory's Ltd) are also paying GST@ 18% on Ramming Mass supplie

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quartz stone on standalone basis cannot be used as a lining of furnace and qualify the Tariff head no. 2506 and GST rate of 5%.
5. Findings and Conclusion:
a) Dealer is a manufacturer of Ramming Mass. Ramming Mass is used as a refractory material for lining of induction furnaces to withstand very high temperatures.
b) Dealer manufactures Ramming Mass by mixing Quartz granules of various sizes with minor ratio of boric acid which in turn acts as binding material to bind quartz powder.
c) Major component of Ramming Mass is Quartz granules in unison with boric acid which is mixed in a ratio of 0.8% to 2%.
d) Ramming Mass so manufactured are classified as Refractory Material which falls under HSN code 3816 and attracts 18% rate of tax under GST (9% CGST + 9% SGST).
e) Quartz powder obtained by crushing Quartz stones fall under HSN code 2806 and attracts 5% rate of tax under GST (2.5% CGST + 2.5% SGST).
f) CBEC Released Minutes of Excise Tariff Conference held on 28 and 29 Octo

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he Conference where, two heads of classification viz., CETH 2506 and 3816 were discussed in case of the product Ramming Mass of the kind obtained by crushing/ grinding and mixing of quartz and quartzite minerals of different sizes and where no external binders are added to such mixture.
It was noted that explanatory notes to the HSN of Heading 3816 covers certain preparations (e.g. for furnace linings)…, with an added refractor binder …. Many of the products of this heading also contain non-refractory binders such as hydraulic binding agents, therefore, to qualify for classification under heading 3816, refractory binder is required to be added to such powdered (grained quartz/ quartzite mixture. Since no refractory binder is added to the impugned product, the same is not covered under heading 3816. This view is reinforced by the Tribunal in the case of M/s. Mayur Chemicals Industries [2001 (136) ELT 1389] =1990 (1) TMI 234 – CEGAT, NEW DELHI upheld by the Hon'ble Supreme Court.
B

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GST (Amendment) Acts, 2018 to amend CGST Act, IGST Act, Compensation to States Act and UTGST Act, got Presidential assent as on 29.8.2018
GST
Dated:- 31-8-2018

Government has notified the following GST (Amendment) Acts, 2018 as on 30-8-2018 after assented by the President as on 29-8-2018
*
Union Territory Goods and Services Tax (Amendment) Act, 2018
*
Goods and Services Tax (Compensation to States) Amendment Act, 2018
*
Integrated Goods and Services Tax (Amendment) Act,

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Section 49A
Utilisation of input tax credit subject to certain conditions
GST
PAYMENT OF TAX
Section 49A of Central Goods And Services Tax Act, 2017
1[Utilisation of input tax credit subject to certain conditions
49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the

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Section 49B
Order of utilisation of input tax credit.
GST
PAYMENT OF TAX
Section 49B of Central Goods And Services Tax Act, 2017
1[Order of utilisation of input tax credit.
49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, ce

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Section 43A
Omitted
GST
RETURNS
Section 43A of Central Goods And Services Tax Act, 2017
2[****]
 
 
************
NOTES:-
1.
Inserted vide Section 18 of the Central Goods and Services Tax (Amendment) Act, 2018 w.e.f. [Never Notified. Later Omitted]
2. 
Omitted vide Section 107 of the Finance Act, 2022 w.e.f. 01-10-2022 before it was read as,
“1[Procedure for furnishing return and availing input tax credit
43A. (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the supp

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details furnished by the suppliers under the said sub-section.
(5) The amount of tax specified in the outward supplies for which the details have been furnished by the supplier under sub-section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery

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Utilisation of input tax credit.
Section 9A
GST
PAYMENT OF TAX
Union Territory Goods And Services Tax Act, 2017
1[Utilisation of input tax credit.
9A. Notwithstanding anything contained in section 9, the input tax credit on account of Union territory tax shall be utilised towards payment of integrated tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised towards such payment.]
******
Notes

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Order of utilisation of input tax credit.
Section 9B
GST
PAYMENT OF TAX
Union Territory Goods And Services Tax Act, 2017
1[Order of utilisation of input tax credit.
9B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (c) of section 9, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation of the input tax credit on account of integrated tax, central tax, State tax or Union territory tax,

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GST Amendments of 2018 Approved: Changes to CGST, IGST, Compensation to States, and UTGST Acts.

GST
GST (Amendment) Acts, 2018 to amend CGST Act, IGST Act, Compensation to States Act and UTG

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adjust of advance and gst against the bill
Query (Issue) Started By: – Ramakrishnan Seshadri Dated:- 31-8-2018 Last Reply Date:- 31-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
We are going to construct one factory.
For this we have awarded the contract to one construction company.
We have paid advance and gst to them.
Now they have given their first bill after after adjusting the 50% advance and 50% gst on this bill.
Whether this correct or not?
Details as below in example:-
Total contract value : 100 crores
Advance 30% : 30 crores +GST 5.4 crores
Bill submitted for 25%on contract value :25 crores +4.5 crores
They have adjusted 50% of the advance and gst paid in their first bill submitted.ie.: 15 crores +GST

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required to pay GST on outward supply of goods, at time of receipt of advance.
Notification No. 66/2017 – Central Tax, dated 15/11/2017, extended the benefit to all taxable persons (other than Composition dealers).
This relief is not available on outward supply of services. GST is payable on advance received in case of outward supply of services.
Construction Company providing SERVICES to you . They need to pay GST on received of advance itself.
In my view , GST on Advance can not be kept pending for adjustment in their subsequent bills
Reply By Ganeshan Kalyani:
The Reply:
GST is applicable on receipt of advance toward service. The supplier of service shall pay tax on advance received and adjust that tax paid against the invoice he w

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Essel Propack Ltd. Versus Commissioner of CGST, Bhiwandi
Central Excise
2018 (9) TMI 247 – CESTAT MUMBAI – 2018 (362) E.L.T. 833 (Tri. – Mumbai)
CESTAT MUMBAI – AT
Dated:- 31-8-2018
Appeal No. E/85322/2018 – Order No. A/87216 / 2018
Central Excise
Hon'ble Dr. Suvendu Kumar Pati, Member ( Judicial )
Shri Prasad Paranjape, Advocate for the appellant
Shri D.S. Chavan, Supdt. ( AR ) for the respondent
ORDER
Denial of cenvat credit to the appellant against payment made to a third agency i.e. M/s. Shree Kalamadevi Charitable Trust for imparting training to students of underprivileged section of society in discharge of corporate social responsibility is challenged before this Tribunal.
2. Facts given arise to this appeal is that appellant M/s. Essel Propack Ltd. situated in village Vadavali at Thane District manufactures multi layer plastic laminates falling under chapter heading 39201012 & 39201012 of the Central Excise Tariff Act, 1985 and it has been availing cenv

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es relating to business as provided under the definition of input services given in Rule 2(l) of the Cenvat Credit Rules 2004 and the services of students were utilised in relation to manufacturing business of the appellant since they were assigned duties to prepare data sheet, maintain production log book, support preventive maintenance of machines, and assist production operators and in the process, they learn the nature of job that made them eligible to become future workers in factories.
4. Ld. Counsel for the appellant Shri Prasad Paranjape also pointed out with reference to judicial decision that the concept of business is not static and over the period of time, the expression involves complete care and concern for the society at large and the people of the locality in which business is located in particular for which the term activities relating to business is of wider ramification and corporate social responsibility is within its ambit that would cover rule 2(1) of the Cenvat

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expenses were claimed by the trust and the same was reimbursed that would not fulfil the requirement of input service availed by the appellant. Ld. AR of the department also pointed out that Section 135 of the Companies Act effective from 01.04.2014 on mandatory CSR activities to be discharged by the company pertains to the period not covered under the period of dispute which was between October 2009 and November 2010 and therefore the contention of the ld. Advocate for the appellant that such obligation of CSR activity was discharged in compliance to statutory obligation is not to be accepted. In citing judicial decisions on these issues and highlighting the judgment reported in 2012 (26) STR 514 (Kar) in the case of Millipore India Pvt. Ltd. and 2010 (20) STR 456 in the case of Manikgarh Cement, ld. AR submitted that credit of service tax paid on input services for CSR were not covered under Cenvat Credit Rules for which the order passed by the Commissioner (Appeals) needs no interfe

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

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nce to operate companies as government licenses would not suffice such smooth operation.
ii) It attracts and boosts employees and encourages them to participate by enhancing employees moral that they all belong to the company.
iii) Companies have invested in CSR to enhance community livelihood by incorporating them in their supply chain. This has not only benefited communities and increased their in complacency but has provided the company with additional or secure supply of raw material.
iv) It enhances the reputation of company, its goodwill by creating a positive image and branding benefits that continue to exist for companies who operate CSR programmes.
6.4. The essence of the above discussion would indicate that CSR is not a charity any more since it has got a direct bearing on the manufacturing activity of the company which is largely dependent on smooth supply of raw materials even from remote location or tribal belts (that requires no resistance in the supply chain f

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

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activity was not carried out, the appellant's activity of manufacturing and sale of excisable goods would have continued. In placing reliance on the decision reported in Millipore India Pvt. Ltd. (supra) and decision of the Bangalore Tribunal in Mangalore Refinery and Petrochemicals Ltd. case reported in 2015 (10) STR 1093 that distinguished the Mangalore Refinery case. He thrust his emphasis on the copy of the agreement made between the appellant and the M/s. Shree Kalamadevi Charitable Trust about which reference is also made in the orderin- original that although the Trust and the company specifically agreed with the training being provided by the company, it was purely towards CSR initiative driven by the company (para 13 at page 57 of the appeal paper book) and therefore no separate stand can be taken by it that students were engaged in the manufacturing activity. It pertains to the dispute for the year 2009-10. Therefore in the instant case without any statutory obligation, the

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

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M/s. Enmas Andritz Private Limited Versus Commissioner of GST & Central Excise, Chennai
Service Tax
2018 (9) TMI 295 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 31-8-2018
Appeal No. ST/302/2011 – Final Order No. 42328 / 2018
Service Tax
Hon'ble Ms. Sulekha Beevi C.S., Member ( Judicial ) And Hon'ble Shri Madhu Mohan Damodhar, Member ( Technical )
Shri Raghavan Ramabhadran, Advocate for the Appellant
Shri A. Cletus, Addl. Commissioner (AR) for the Respondent
ORDER
Per Bench
The appellants are engaged in providing consulting engineer service, transport of goods by road service, renting of immovable property service and intellectual property right service. During the course of audit, it was noticed that appellant had engaged into contracts for designing, supplying and supervising the erection and commissioning of Recovery Boilers. Such boilers are used for segregating and recycling the chemicals involved in paper pulp. The appellants received consideration

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ds supplied to Paper Mills and were acting as traders of goods.
2. During the course of audit of accounts, it was further noticed that they had availed CENVAT credit of service tax paid on input services such as:-
(i) Commission paid to agents for procuring the project orders for supply of Recovery boiler
(ii) Bank guarantee for advance of supply of materials / components – such advances were reduced proportionately from the invoices of the components and do not relate to rendering of registered taxable services
(iii) Clearing and forwarding charges for imported goods
(iv) Cargo handling charges
(v) Metal testing conducted on the raw materials meant for manufacture of components
(vi) Processing of components which does not amount to manufacture
(vii) Technical testing and inspecting of components supplied / to be supplied to the paper mills
(viii) Cargo contracts
(ix) Insurance paid on materials / components lying with sub-contractors
(x) Deputation of technical st

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t
(vi) Rent-a-cab service
(vii) Deputation of staff for office and
(viii) Advertisement charges
2.3 According to the department, the above input services were availed by the appellant during the course of trading activity and since trading activity is not a taxable service, the appellants are not eligible to avail credit on the above input services. It also appeared that they are not providing exempted service to claim benefit under Rule 6 of CENVAT Credit Rules, 2004. Therefore, the appellants are not eligible for credit of service tax to the tune of Rs. 76,90,088/- relating to the period April 2007 to March 2008.
2.4 Thus, it was observed that they have contravened the provisions of Rule 3 of CENVAT Credit Rules and had availed ineligible input credit to the tune of Rs. 3,22,07,53/- for the period April 2007 – 2008.
2.5 During the said period, they had utilized credit of Rs. 35,91,928/- towards discharging service tax liability and such utilization resulted in short-payment

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ers for design, supply and supervision of the erection and commissioning of Recovery Boilers. They further entered into sub-contracts with job workers for the manufacture of certain components to the Recovery Boilers. The appellant procures raw materials for manufacture of such components and sends the same directly to the job worker. The job worker avails input credit of the raw materials supplied. Upon completion of the manufacture of Recovery Boilers, the job workers directly clear these to the customer and raise invoices on the appellant for the job charges and the excise duty component. The appellant has availed input service credit on various input services. The department now disputes the credit availed on input services. The sole ground for disallowing CENVAT credit as alleged in the show cause notice is that the entire credit availed by the appellant is attributable to trading activity and is therefore ineligible in terms of Rule 3 of CENVAT Credit Rules, 2004. He submitted th

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the appellant to manufacture Recovery Boiler and clear the same to the customers on behalf of and under the direction of the appellant. Thus, the entire activity entails only manufacture and supply of recovery boiler and at no point of time, the appellant purchases the boiler as such and sells it to call it a trading activity. That therefore the entire premise on which the department has issued the show cause notice fails and therefore the disallowance of credit on the count that the appellant has used the input services for doing trading activity is without any basis.
3.3 It is also argued by him that trading is an exempted service with effect from 1.4.2011. The Hon'ble High Court of Madras in the case of Ruchika Global Interlinks Vs. Commissioner of Central Excise – 2017-VIL-323-MAD-ST has held that trading is an exempted service prior to 1.42011 as well and that therefore Rule 6 is applicable for reversing the proportionate credit availed on trading. In the present case, show cause

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contracts and clearing and forwarding charges for imported goods are also input services for procurement of raw materials to be used in the manufacture of Recovery Boilers. He relied upon the judgment of the Hon'ble Supreme Court in the case of Ramala Shahkari Chini Mills Vs. Commissioner of Central Excise, Meerut – 2016 (334) ELT 3 (SC) to argue that the word 'includes' used in the definition of input service cannot be interpreted in a restrictive manner.
3.4 The ld. counsel relied upon the decision rendered in their own case reported in 2017 (48) STR 261 (Tri. Chennai) wherein on similar set of facts, the input credit disallowed on Chartered Accountancy Service, Courier Agency Service, Manpower Supply Service, Telecom Service, Business Support Service,, Banking and Other Financial Service, Testing and Inspection Service were held to be eligible.
3.5 It is also argued by him that the demand to recover Rs. 35,91,928/- as short-paid duty on the ground that ineligible credit was utili

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Credit Rules, 2004. For this reason, para 5.0 has alleged that appellant have wrongly availed CENVAT credit in contravention of provisions of Rule 3 of the CENVAT Credit Rules, 2004 and in para 6, the amount of such wrong credit has been proposed to be recovered under Rule 14 of the CENVAT Credit Rules, 2004. He explained that the services viz. commission paid to agents for procuring project order, Bank guarantee for advance, clearing and forwarding charges for goods, cargo handling services, technical testing etc. are services related to procurement of raw materials etc. But the appellant is not registered as a manufacturer and is not paying excise duty on the Recovery Boilers. So the appellant cannot avail credit as a manufacturer. They are registered as output service provider for Consulting Engineer Service. He adverted to the definition of Consulting Engineer and stated that it involves giving technical advice and has nothing to do with procurement of goods. So these input servic

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elating to April 2007 to March 2008 amounting to Rs. 76,90,088/-. The total tax demand proposed is Rs. 3,22,07,534/- with interest thereon. In addition, a sum of Rs. 35,91,928/- has been utilized during the period April 2007 to September 2008 towards discharge of service tax liability which has also been sought to be demanded.
6.1 Ld. counsel has been at pains to convince us that these issues pertains to period prior to 1.4.2011 from which date trading was made a deemed exempted service. That nonetheless, even for the period of dispute the trading activity is required to be considered as an exempted service. To support this, he has relied upon the judgment of the Hon'ble High Court of Madras in Ruchika Global Interlinks (supra) to contend that the trading activity can be categorized as exempted service even prior to 1.4.2011. From the perusal of the said judgment, we however find that the Hon'ble High Court had only addressed the issue of apportionment as provided under Rule 6(3)(c) o

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iding output service'. As trading activity undertaken by the appellant is not taxable service, hence the appellant is not eligible to avail credit on the alleged / impugned input service. This being so, the appellants have clearly fallen foul of Rule 3 of the CENVAT Credit Rules, 2004 since that is the particular provision which lays down the types of duties or taxes or cesses suffered on input, input services etc. which alone can be availed as CENVAT credit. From the facts brought out in the show cause notice, it is evident that the impugned input services listed out in para 3.0 and 4.0 have all been availed in spite of the appellant having been involved in trading activity. Thus, there cannot be any credit that could be availed by the appellant ab initio and hence there is no need to examine the applicability of Rule 6 of the CENVAT Credit Rules, 2004 to their case. In any case, trading activity has been made deemed exempted service only with effect from 1.4.2011 and therefore we are

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ill not help the appellant. So also in the Single Member decision of the Tribunal in the appellant's own case reported in 2017 (40) STR 261 (Tri. Chennai), there is nothing forthcoming from the facts brought out in the order as to whether the input service was used exclusively for trading. There is no discussion in the said order as to disallowance of credit on account of credit availed on trading. On the other hand, the said decision has taken the view that the input services were essential to provide output service of consulting engineer and thus allowed the credit. Hence this case law is also of no help to the appellant.
6.4 In the event, we do not find any infirmity in that portion of the impugned order upholding the demand of wrongly availed credit to the tune of Rs. 3,22,07,534/- along with interest thereon. So ordered.
6.5 Coming to the demand of Rs. 35,91,928/- with interest in respect of alleged wrong utilization of CENVAT credit, since this being only a part of the total cr

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

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

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

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

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ing under Chapter 31 of the Tariff (notification No. 12/2012-Central Excise). This concessional rate was applied to goods falling under Chapter 31 which are clearly to be used directly as fertilizers or in the manufacture of other fertilizers, whether directly or through the stage of an intermediate product.
3. In the GST regime, tax structure on fertilizers has been prescribed on the lines of pre-GST tax incidence. The wording of the GST notification is similar to the central excise notification except certain changes to meet the requirements of GST. These changes were necessitated as GST is applicable on the supply of goods while central excise duty was applicable on manufacture of goods. Accordingly, fertilizers falling under heading 31

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Amendment in Notification No. SRO-GST-11 dated 08-07-2017
SRO-GST- 46 (Rate) Dated:- 31-8-2018 Jammu and Kashmir SGST
GST – States
Jammu and Kashmir SGST
Jammu & Kashmir SGST
Government of Jammu and Kashmir
Finance Department
Civil Secretariat, Srinagar
Notification
Srinagar, the 31th August, 2018
SRO-GST- 46 (Rate).- In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (5) of section 15 and sub-section (1) of section 16 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest to do so, hereby makes the following further amendments in the SRO notification No. SRO-GST-11 dated 08-07-2017; namely:
(i) against serial number 7, in column (3),-
(a) for item (i) and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, nam

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vided 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 omitted;
c. for item (v), and the entries relating thereto in columns (3), (4) and (5), the following shall be substituted, namely: –
(3)
(4)
(5)
“(v) Supply, by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibiti

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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 (Act No.51 of 1975)) supplied online which can be read on a computer or a hand held device.
2.5
–
(ii) Telecommunications, broadcasting and information supply services other than (i) above.
9
-“;
This notification shall be deemed to have come into force w.e.f. 27th day of July, 2018.
By order of the Government of Jammu & Kashmir.
Sd/-
(Navin K. Choudhary), IAS
Pr

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

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Amendment in Notification No. SRO-GST-2 dated 08-07-2017
SRO-GST-43 (Rate) Dated:- 31-8-2018 Jammu and Kashmir SGST
GST – States
Jammu and Kashmir SGST
Jammu & Kashmir SGST
Government of Jammu and Kashmir
Finance Department
Civil Secretariat, Srinagar
Notification
Srinagar, the 31th August, 2018
SRO-GST-43 (Rate).- In exercise of the powers conferred by sub-section (1) of section 11 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on the recommendations of the Council, hereby makes the following further amendments in the notification SRO No. SRO-GST-2 dated 08-07-2017 issued by Finance Department Government of Jammu and Kashmir, namely:-
(i) after S. No. 92 and the ent

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inserted, namely: –
“114A
44 or 68
Deities 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 S. No. 117 and the entries relating thereto, the following shall be substituted, namely:-
“117
48 or 4907 or 71
Rupee notes or coins when sold to Reserve Bank of India or the Government of India”;
(vi) after S. No. 132 and the entries relating thereto, the following serial number and the entries shall be inserted, namely: –
“132A
53
Coir pith compost other than those put up in unit container and, –
(a) bearing a registered brand name; or
(b) bearing a brand name on which an actionable claim or enforceable right in a court of law

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Insert explanation in the Notification No.SRO -GST -11 dated 08-07-2017
SRO-GST-41 (Rate) Dated:- 31-8-2018 Jammu and Kashmir SGST
GST – States
Jammu and Kashmir SGST
Jammu & Kashmir SGST
Government of Jammu and Kashmir
Finance Department
Civil Secretariat, Srinagar
Notification
Srinagar, the 31th August, 2018
SRO-GST-41 (Rate).- In exercise of the powers conferred by sub-section (3) of section 11 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017),

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

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

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work upto the tube well of the farmer or agriculturalist for agricultural 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 person

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983 or Heading 9991
Services by way of licensing, registration and analysis or testing of food samples supplied by the Food Safety and Standards Authority of India (FSSAI) to Food Business Operators.
Nil
Nil”;
(m) after serial number 55 and 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 lea

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e service provided by State Government to the ERCC of assignment of right to collect royalty and goods and services tax paid by the mining lease holders on royalty.”;
(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 i

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Northern Coalfields Ltd Versus CGST C.C & C. E-Jabalpur
Service Tax
2018 (8) TMI 1742 – CESTAT DELHI – TMI
CESTAT DELHI – AT
Dated:- 31-8-2018
Service Tax Appeals No. 52895-52896, 53115-53116, 53130, 53186, 53190 of 2015 with 50268, 50420 and 50434 of 2017 – Final Order No. 52911-52920/2018
Service Tax
Shri C.L. Mahar And Ms. Rachna Gupta, JJ.
Shri Rajeev Kumar Agarwal and Hemant Sindhwani, C.A. – for the appellants.
Shri Amresh Jain, Authorized Representative (DR) – for the Respondent.
ORDER
C.L. Mahar :-
In this case, the appellant is engaged in production of coal from its various mines and sells the same on payment of Sales Tax/ VAT. As per the requirement of the customers, the appellant also provides the acti

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ustomers hence if cutting the coal to various sizes is a service then we feel it is a service to himself and not to the buyer because buyer is being charged on per tonnage basis as per coals forms and sizes. We also feel that the present appeals are squarely covered by the decision of this Tribunal in the case of Commr. Of Central Excise & Service Tax, BBSR-I Vs. Mahanadi Coal Fields Ltd. vide Final Order No. 76585/2017 dated 21.08.2017. On perusal of the said order, we find that in the similar set of facts, the Tribunal has allowed the appeal holding as under :-
2. Brief facts of the case are that during the period under consideration, the appellant was engaged in the crushing/sizing of the coal in its own mines. While receiving the cons

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Executive Engineer Division V,M.P. Housing and Infrastructure Development Board Versus CGST C.E & C. C-Bhopal
Service Tax
2018 (11) TMI 1219 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 31-8-2018
Appeal No ST/53124/2015- (DB) – Final Order No. 53282/2018
Service Tax
Mr. C.L. Mahar, Member (Technical) And Mrs. Rachna Gupta, Member (Judicial)
Shri Sandeep Mukherji, CA for the appellant
Shri Vivek Pandey, (DR) for the respondent
ORDER
Per: Rachna Gupta
1. The impugned appeal has been directed against the Order No. 308 dated 21st May, 2015 passed by the Commissioner Central Excise.
2. The appellants were herein are engaged in construction of service and are registered under the category of commercial and industrial construction service and also under construction of residential complex service. During the scrutiny of their records, the Department observed that they are paying service tax on the service amount received at the time of giving possessio

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he impugned order has adjudicated two show cause notices for total period with effect from 1/4/2007 to 31/3/2013. It is impressed upon that till 30th June, 2010 there was no liability upon the builder to pay any service tax upon the amount received prior giving possession of the constructed property to their clients, it is only after explanation under Section 65(105)(zzzh) Finance Act, 1994 was incorporated which into effect from 1/7/2010 that the builders are liable to pay the same. It is impressed upon that the demand as confirmed for the period prior 31st June, 2010 is apparently wrong and is liable to be set aside. With respect to the remaining demand it is submitted that the appellant were entitled for abatement at the rate of 75 per cent but the Adjudicating Authority below has given the said abatement only to the extent of 67 per cent. While impressing upon the Notification No. 1/2006 dated 1/07/2010 and Notification No. 36/2010 the demand for the said subsequent period is praye

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e to discharge the tax liability at the time of receiving the first phase of the said demand. Denying any alleged infirmity even with respect to the effect of abatement, as alleged, Ld. DR has prayed for dismissal of the impugned appeal.
6. After hearing both the parties and perusing the record we observe and hold as follows;
7. The fact of the present case is that the appellant is a builder engaged in construction activity that under heavy financing scheme where the appellant are receiving payments in phases over years. It is also an admitted fact that the appellants were paying the service tax at the stage of final allotment of the constructed residential/Commercial unit after the payment received from the buyers along with taxes at the said final stage. In view of these admitted facts the core issue to be adjudicated is as to whether the appellants were required to pay the service tax on the amount received by them from the prospective buyers, In advance.
8. No doubt as per secti

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r;”
9. Hon'ble High Court of Mumbai in the case of Indian National Ship Honours Association vs. Union of India 2009(40) STR 289 has held that the introduction of new entry and inclusion served services in that entry would pre-supposed that there was no earlier entry covering the said services. This Principal Bench of Delhi in the case of U.B Construction Pvt. Ltd vs. CCE 2013 (32) S.T.R. 738(Tri. Del) has held that Explanation added to Section 65(105)(zzzh) with effect from 1/07/2010 is prospective in nature as it expands scope of taxable service provided by the builder to buyer pursuant to intended sale of property to be during or after the construction. It was classified in this decision that in such case there is no liability on the assessee to remit service tax under the then existing legislative reason that is either under Section 65(38) read with Section 65(91) (a) of the Finance Act taxable under Section 65(105) (zzq). In another recent adjudication by Tribunal Bangaloor in th

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ed demand for the period since 1/04/2007 till 30th June 2010 is not sustainable the same has wrongly been confirmed, accordingly is hereby set aside.
11. Now, coming to the demand for the remaining period, the computation thereof so far as abatement whether of 67 per cent of 75 per cent is concerned, we observe that in view of Notification No. 1/2006 ST dated 1/3/2006 the abatement on construction services till 30th June 2010 was 67 per cent however the said Notification of amended vide Notification No. 29/2010 ST dated 22/06/2010 with a further amended vide Notification No. 26/2012 ST dated 20th June, 2012. Vide which the taxable service to the extent of 25 per cent only is made taxable. Hence the appellant is held to be entitled for the abatement at the rate of 75 per cent. The computation at the rate below is an error apparent, as such the same is liable to be re-computed the matter needs to be remanded for this limited purpose.
12. Finally coming to the issue of invoking the exte

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ble Apex Court in Gopal Zarda Udyog vs. CCE Delhi 2005 (188) E.L.T 251 SC has held that when asseessee has a reasonable belief that he is not required to give a particular information only normal period of limitation that is 1 year is applicable. In the present case also the apparent allegation is delay in discharging the liability the allegation as grave as of misinterpretation and suppression are not at all attributable. For the similar reason penalty also will not ordinarily to be imposed unless the party either acted deliberately in defiance of law and was guilty of dishonest conduct the Hon'ble Apex Court in the case of Hindustan Steel Pvt. Ltd. vs. State of Odissa 1978 E.L.T 134 SC has held that where the breach flows from the bona fide belief that the offender is not liable to act in the manner prescribed by the statue such an offender/assessee is not liable any penal action. In view of these observations the penalty is held being not sustainable the show cause notices is rather

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Refund of IGST CGST for exporters
Query (Issue) Started By: – Jasbir Uppal Dated:- 30-8-2018 Last Reply Date:- 1-9-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Professionals,
The exporter had made export from the manufacturing of goods from the stock left on 30.06.2017 and claimed drawback on higher rate during the month of July 2017 to September 2017.
My query is Exporter who have not filed CENVAT returns because his manufacturing was exempt goods and he has not file Trans-1 in which CENVAT portion credit was in his CGST electronic credit ledger. Then how the exporter shall get refund of the CGST and IGST in the compliance with sec 16(3) of CGST Act, 2017 for the goods manufactured from the stock of 30.06.2017 an

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

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PVC Floor Mat GST Classification at 18% Confirmed by AAR; Split into 9% CGST and 9% SGST.
Case-Laws
GST
Classification of goods – rate of GST – The PVC floor Mat would fall in the Customs Tar

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IWI CRYOGENIC VAPORIZATION SYSTEM (INDIA) PVT. LTD. Versus COMMISSIONER OF CGST AND CENTRAL EXCISE VADODARA-I
Central Excise
2018 (9) TMI 173 – GUJARAT HIGH COURT – [2018] 59 G S.T.R. 329 (Guj)
GUJARAT HIGH COURT – HC
Dated:- 30-8-2018
R/TAX APPEAL No. 1079 of 2018
Central Excise
MR. AKIL KURESHI AND MR. B.N. KARIA, JJ.
For The PETITIONER : Mr DHAVAL SHAH, Advocate
For The RESPONDENT : Ms. MANISHA LAVKUMAR with Ms SHRUTI S PATHAK, AGP
ORAL ORDER
(PER : HONOURABLE Mr. JUSTICE AKIL KURESHI)
This Appeal is filed by the assessee challenging the judgment of the Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad [“the Tribunal” for short] rejecting the application for rectification of an order of the Tribunal.
Brief facts are as under :
The assessee was served with a show cause notice for recovery of unpaid dues with interest and penalty under the service tax regime. Despite opposition by the assessee, the same were confirmed. The issue travelled to th

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tion of law and facts, we do not permit same before us for the first time. However, if it is open for the appellant to file a rectification application before the Tribunal on such basis, we do not prevent him from doing so. Tax Appeal is therefore dismissed.”
The assessee thereupon approached the Tribunal again in an application filed for rectification. Such rectification application came to be dismissed by the impugned order in which the Tribunal held that the assessee had not raised such a contention before the Tribunal, or even before the lower authorities earlier and any exercise by the Tribunal to entertain such a contention to modify the order would amount to review- a power which the Tribunal does not possess.
When we took up the appeal for hearing, two questions were discussed – First was, whether the application for rectification could have been presented beyond the period of limitation prescribed and the second question was-whether the Tribunal was correct in dismissing th

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ing the appeals and making orders under this section, the Appellate Tribunal shall exercise the same powers and follow the same procedure as it exercises and follows in hearing the appeals and make orders under the Central Excise Act, 1944. Thus, the jurisdiction, scope and procedure to be followed by the Tribunal while hearing the appeals under Section 86 of the Finance Act, 1994 are borrowed by reference from the Central Excise Act, 1944. It is undisputed that Section 35C of the Central Excise Act, 1944 which pertains to “Orders of Appellate Tribunal” provides under sub-section [2] thereof that the Appellate Tribunal may, at any time within six months from the date of the order, with a view to rectifying any mistake apparent from the record, amend any order passed by it under sub-section [1] and would make such amendments, if the mistake is brought to its notice by the Department, or any other party to the appeal. Thus, the power of the Tribunal while disposing of appeals in terms of

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er. Even after the High Court dismissed the appeal on 28th January 2016, it appears from the recored that the rectification application was filed nearly six months later. Therefore, only on the question of limitation, rectification application could have been dismissed by the Tribunal; though Tribunal did not advert to this aspect of the matter. When the High Court dismissed the appeal of assessee in the earlier round of litigation, it merely kept liberty open to the assessee to approach the Tribunal by filing rectification application; if it was open for the appellant to do so. The High Court did not mandate the Tribunal to either entertain such an application or open an avenue; which otherwise may have been closed.
Even otherwise, we do not think that the Tribunal has committed any error. The Tribunal recorded that all along, the assessee had never raised such a contention. Before the lower authorities or before the Tribunal, no such ground was raised. Learned advocate Shri Shah dre

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