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2018 (7) TMI 1824 – KERLA HIGH COURT – 2018 (19) G. S. T. L. 16 (Ker.) – Quantum of GST – specified works already undertaken by the petitioner – the concerned officer is awaiting directions from the Head Office – Circular No.GST/002/17, dated 10.08.2018 – Held that:- I cannot immediately accede to the stand taken by the respondents because, as is clear from Ext.P5 circular, the Head Office, which is to mean the Managing Director, has already taken a decision to compensate the contractors to the extent of the GST paid by them on account of the fact that, at the time when the contract was entered into, the GST regime had not been implemented – I, therefore, fail to understand why the Deputy Chief Engineer should take a stand in the counter affidavit that he is still awaiting directions from the Head Office, when the circular makes it clear that all such payments are to be made to the contractors – petition disposed off. – WP(C).No. 13630 of 2018 Dated:- 7-6-2018 – DEVAN RAMACHANDRAN, J

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nly issue, as per the petitioner, between them and the Water Authority is as to the manner in which the amount of tax under the GST regime is to be reckoned and adjusted as per the contract. 3. The petitioner says that, as is clear from Ext.P1, work orders, it was issued before the GST regime was brought into effect in the State of Kerala. They say that GST was implemented in the State of Kerala only with effect from 01.07.2017. The petitioner submits that the time when the notice inviting tender was published and tender process was undertaken, GST had not been implemented and hence, that the petitioner was allowed to enter into a contract, under which, they were obliged to pay Value Added Tax at the rate of 4.04%, Income Tax at the rate of 2.266% and Labour Workers' Welfare Fund of 1%. According to them, when the work was being executed by them, the GST regime was implemented, as per which, the contractors were obligated to pay tax at the rate of 18% instead of 4.04% VAT. The peti

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al representations before the Water Authority, copies of which have been placed on record as Exts.P6 to P8 in W.P.(C) No.13676 of 2018 and as Exts.P6 to P9 in W.P.(C) No.13630 of 2018. They have filed these writ petitions praying that the Water Authority be directed to honour their bill and to pay them the GST already deposited by them. 6. I have heard Sri.Santhosh Mathew, the learned counsel appearing for the petitioner in both cases and the learned standing counsel appearing for the respondents. 7. Sri.Santhosh Mathew opens his submission in line with the facts narrated above and according to him, the only reason, as is discernible from the counter affidavit filed by the respondents in these cases, for not complying with the stipulations in Ext.P5 circular, is that the concerned officer is awaiting directions from the Head Office. He points out that there is no other reason stated in the counter affidavit and according to him, this stand of the respondents, that they are awaiting per

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dents because, as is clear from Ext.P5 circular, the Head Office, which is to mean the Managing Director, has already taken a decision to compensate the contractors to the extent of the GST paid by them on account of the fact that, at the time when the contract was entered into, the GST regime had not been implemented. I, therefore, fail to understand why the Deputy Chief Engineer should take a stand in the counter affidavit that he is still awaiting directions from the Head Office, when the circular makes it clear that all such payments are to be made to the contractors. 10. In any event of the matter, so long as the respondents do not have a case that the petitioner has not paid the GST amount or that he has not completed the works in question satisfactorily, it would not be reasonable on their part to keep these claims pending ad infinitum. I am certainly of the view that a decision on this regard has to be taken by the competent Authority imperatively and without any further delay.

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GST – States – 26-CT-2697/2018 C1 – Dated:- 7-6-2018 – PROCEEDINGS OF THE Prl SECRETARY & COMMISSIONER, STATE GST DEPARTMENT, THIRUVANANTHAPURAM (Present: Dr. Rajan N Khobragade IAS) Sub:- GST- REFUND- Constitution of Refund facilitation Cell in GST Facilitation Centers at District and State Head Quarters- reg:- Goods and Service Tax is launched on 1st July 2017. The law envisaged prompt refund mechanism. GSTN is developing online processing of refund application mechanism. Till complete online system is operational, manual system is operationalized. GST being a major tax reform in indirect taxation system in the Country, handholding support from officers to stakeholders for the change in the transformation to the GST is very important

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e Tax Inspector to function in the Cell. (Ensure adequate number of officers in major districts where refund cases are more) III. It shall be embedded in the district GST Facilitation Centres (Tax Corners). 2. As a corollary, a State Refund Facilitation Cell shall be formed at the State head quarters to assist the District Refund Cell and for clarification on any matter which are required from the Commissionerate. 3. Sri. Mansur M I Asst. Commissioner (Internal Audit) and Sri.B.S. Haridas, Asst. Commissioner, O/o CST are nominated in the State Refund Cell. 4. The functions of the District Refund Facilitation Cell and State Refund Facilitation Cell shall be as follows: I. To act as a focal point in addressing refund related queries from tax

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2018 (8) TMI 1496 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – cleaning/housekeeping services – Held that:- The appellant has availed the impugned services for the purpose of cleaning the equipment/machinery used in the manufacturing activity. Further, housekeeping services were availed to keep the factory premises as well as the office attached to the factory in a clean and hygienic manner. These services are indispensable for the manufacturing activity and are integrally connected also – the denial of credit is unjustified – appeal allowed – decided in favor of appellant. – Appeal No. E/42636/2017 – Final Order No. 41745/2018 – Dated:- 7-6-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) Shri G. Mani, Advocate for the Appell

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behalf of the appellant, the learned Counsel, Shri G. Mani submitted that the cleaning services were availed by the appellant for cleaning the equipment/machinery in the factory and the housekeeping services were availed for keeping the factory premises as well as the office premises in a clean and hygienic manner. That the second clause in the definition of input services would well cover the said services and that these services are related to the manufacturing activity. He relied upon the decision of Tribunal in the case of Sai life Sciences Ltd. Vs. CCE, Cus. & S.T., Hyderabad-IV, 2017 (51) S.T.R. 55 (Tri. – Hyd.) and Hindustan Petroleum Corporation Ltd. Vs. CCE Visakhapatnam-I, 2017 (47) S.T.R. 33 (Tri.- Hyd.). 3. The learned AR, S

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2018 (8) TMI 1497 – CESTAT CHENNAI – TMI – Liability of Interest and penalty – On being pointed out about the mistake, the credit, having been reversed before utilization – Held that:- The appellant has reversed a substantial portion of the irregularly availed credit to the tune of ₹ 1,70,290/- along with interest before the issuance of the Show Cause Notice. A small differential amount of ₹ 6,296/- was also reversed by them after passing of the order in original – It is also brought out that the appellants had sufficient credit balance and the wrongly availed credit was reversed before utilization.
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Interest and penalty set aside without disturbing the confirmation of demand or interest already paid – appeal allowed in pa

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st and penalties imposed. Aggrieved, the appellants are now before the Tribunal. 2. On behalf of the appellant, the learned Counsel, Shri V. S. Manoj, submitted that the appellant had reversed the credit of ₹ 1,70,290/- along with interest much before the issuance of the Show Cause Notice. There was a balance of ₹ 6,296/- which was reversed after the issuance of the order in original. Thus, the appellant has reversed the entire credit along with interest. On being pointed out about the mistake, the credit, having been reversed before utilization, he argued that there is no interest liability or penalties. He relied upon the decision in the case of Strategic Engineering Pvt. Ltd., (2014) 310 ELT 509 Madras, as well as the decisio

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gic Engineering Pvt. Ltd. (supra) would be applicable. I, therefore, find that the penalty imposed is unwarranted and requires to be set aside, which I hereby do. The learned Counsel submitted that they are not liable to pay the interest on the differential amount of ₹ 6,296/- as per the decision of the Strategic Engineering Pvt. Ltd. (supra). 6. The impugned order is modified to the extent of setting aside the penalty and the demand of interest or the amount of ₹ 6296/- only without disturbing the confirmation of demand or interest already paid. Appeal allowed in above terms, with consequential reliefs, if any. (Dictated and pronounced in open Court) – Case laws – Decisions – Judgements – Orders – Tax Management India – taxma

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2018 (8) TMI 1498 – CESTAT CHENNAI – TMI – CENVAT credit – input service – business development services – Held that:- The period involved is prior to 01.04.2011 when the definition of input service included the words ‘activities relating to business’ – denial of credit unjustified.
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Penalty u/r 15(1) of the Cenvat Credit Rules, 2004 – Held that:- Since the major credit of business development service has been set aside, the penalty is also unwarranted and requires to be set aside.
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Appeal allowed – decided in favor of appellant. – Appeal No. E/42331/2017 – Final Order No. 41743/2018 – Dated:- 7-6-2018 – Ms. Sulekha Beevi C.S., Member (Judicial) Ms. Yogalakshmi, Advocate for the Appellant Shri R. Subramaniyan, AC (AR) for the Res

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e, 2010 to August, 2010 and, therefore, the said services are covered within the definition of input service as it stood during the relevant period. She relied upon the decision in the case of FLOWSERVE SANMAR LTD. Vs. CCE Chennai, 2017 (5) G.S.T.L. 375 (Tribunal – Chennai). 3. The learned AR, Shri R. Subramaniyan, supported the findings in the impugned order. 4. Heard both sides. 5. The learned Counsel has submitted that though various services have been denied credit, as per the impugned order, they are confining their contest only on the credit only in respect of business development services. The period involved is prior to 01.04.2011 when the definition of input service included the words activities relating to business . The decision

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2018 (11) TMI 707 – CALCUTTA HIGH COURT – [2018] 2 GSTL 131 (Cal) – Enlargement on Bail – Section 132(1)(a),(b) and (c) of the Central Goods and Services Tax Act, 2017 – Held that:- The authority of the opposite party will take endeavour to record or to interrogate the accused/petitioner in custody in the correction home as per the order passed by the learned Additional Chief Judicial Magistrate by recording his statement. So, this application is kept pending as deferred in the next week. – CRM 3328 of 2018 Dated:- 7-6-2018 – Shivakant Prasad, J. Mr. Debasish Roy, Mr. Rajdeep Mazumdar, Mr. Danish Haque, Mr. Arindam Dey, Mr. Moyukh Mukherjee, Ms. Aroshi Rathore, Ms. Kriti Mehorotra, for the Petitioner. Mr. K.K.Maity, for the opposite party

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Customs – PUBLIC NOTICE No. 88/2018 – Dated:- 7-6-2018 – OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT) NEW CUSTOMS HOUSE, BALLARD ESTATE, MUMBAI – 400 001. F. No. S/26-Misc-05/2018 IGST Date: 07.06.2018 PUBLIC NOTICE No. 88/2018 Subject: reg. Attention of the Exporter, Customs Broker and Traders is invited to board s Circular no. 15/2018-Customs issued vide F. No. 450/119/2017-Cus IV dated 6th June 2018. 2. CBIC has issued Circular No s 05/2018-Customs dated 23.02.2018 and 08/2018-Customs dated 23.03.2018 wherein an alternative mechanism with officer interface to resolve invoice mismatches was provided for the shipping bills filed till 28.02.2018. Although the cases having SB005 error have now ebbed due to continuous outreach done by the

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GSTR-3B. Board has examined the issue and it has been decided to provide a correction facility in cases where although GSTIN of both the entities are different but PAN is same. This happens mostly in cases where an entity filing Shipping bill is a registered office and the entity which has paid the IGST is manufacturing unit/other office or vice versa. However, in all such cases, entity claiming refund (one which has filed the Shipping bill) will give an undertaking to the effect that its other office (one which has paid IGST) shall not claim any refund or any benefit of the amount of IGST so paid. The undertaking shall be signed by authorized persons of both the entities. This undertaking has to be submitted to the Customs Officer at the p

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Customs – PUBLIC NOTICE NO. 24/2018 – Dated:- 7-6-2018 – OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOM HOUSE: PORT AREA: VISAKHAPATNAM – 530 035 F. No. P3/06/2017-Stats (AM) Date: 07.06.2018 PUBLIC NOTICE NO. 24/2018 Sub : Reg. Attention of all exporters, customs brokers, members of general trade, and all other stakeholders is invited to refer this office s Public Notice Nos. 09/2018 dated 26.02.2018 and 15/2018 dated 25.03.2018 wherein an alternative mechanism with officer interface to resolve invoice mismatches was provided for the shipping bills filed till 28.02.2018. [Board s Circular No. 05/2018-Customs dated 23.02.2018 and Circular No. 08/2018-Cus. Dated 23.03.2018 refers.] 2. Although the cases having SB005 error have now

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atch between GSTIN entity mentioned in the Shipping bill and the one filing GSTR-1/GSTR-3B. Board has examined the issue and it has been decided to provide a correction facility in cases where although GSTIN of both the entities are different but PAN is same. This happens mostly in cases where an entity filing Shipping bill is a registered office and the entity which has paid the IGST is manufacturing unit/other office or vice versa. However, in all such cases, entity claiming refund (one which has filed the Shipping bill) will give an undertaking to the effect that its other office (one which has paid IGST) shall not claim any refund or any benefit of the amount of IGST so paid. The undertaking shall be signed by authorized persons of both

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Customs – Refund of IGST on export of Goods-Extension of date in SB005 alternate mechanism cases and Clarification in other cases – TMI Updates – Highlights

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Goods and Services Tax – Applicable GST rate on Priority Sector Lending Certificates (PSLCs), Renewable Energy Certificates (RECs) and other similar scrips. – TMI Updates – Highlights

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Goods and Services Tax – GST – By: – Amrit Mohanty – Dated:- 6-6-2018 Last Replied Date:- 9-6-2018 – With the advent of the E-Way Bill Rules and provisions under the GST laws, the following article has been prepared to provide a substantive understanding of the law surrounding E-way Bills. Firstly we would discuss in a point-wise manner the law surrounding e-way bills and its requirements. The following may please be noted: E-way Bill is not fundamentally a GST document. Applicability of GST law is in no way based upon the practice of E-way bills and neither is the charge of GST in any manner linked to e-way bill rules and provisions. Therefore beginning from the very precipice down to the intricate details, we must refrain from drawing any inferences from the general laws and principles of GST while interpreting the provisions of E-way Bills or while carrying out the practice of e-way bills no matter how so logically intuitive they may seem. E-way Bill is a document that can be said

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the documents and devices and also allow the inspection of the goods. Under section 68 of the CGST Act, 2017 the E-way Rules have been notified under Chapter-XVI of the CGST Rules, 2017. Under the said rules, there are two broad based directions: Rule 138 : Furnish the specified Information in the online portal about the movement of goods and generate an e-way bill. Rule 138A : Person in charge of the conveyance shall carry the above generated e-way bill/ e-way bill number in electronic form/ e-way bill number mapped to a RFID embedded unto the conveyance. First we shall go into the specifics of the first direction i.e furnishing of specified information in the online portal about the movement of goods and generate an e-way bill. The specifics are furnished below in a question answer format (along with the exceptions) for easy understanding of the reader. Also for better understanding we would suggest the reader to proceed into reading the questions in the order of numerical progressi

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der reverse charge respectively. Who is required to furnish the information about the movement of the goods? Every registered person who causes the movement of goods -in relation to supply -for reasons other than supply -due to inward supply from unregistered person. Therefore the supplier or the recipient of goods, who so ever is registered and causes the movement of goods shall furnish the information. Further if neither of them do so, the transporter may also (also see Q.9 and Q.10) on authorization received from the registered person furnish the information. Furthermore e-commerce operator (amazon, flipkart etc) may also furnish information if goods are supplied through it. Where and in what form does this aforesaid information need to be furnished? The information is needed to be furnished in Part A of Form GST EWB-01 electronically on the common portal. What are the information required in Part A of Form GST EWB-01? The following: A.1 GSTIN of Supplier A.2 Place of Dispatch A.3 G

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through a transporter? Yes, Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or a public conveyance, by road, the said person shall be required to generate the e-way bill by the standard usual process. With reference to Q.8, what shall be the case where the goods are handed over to the transporter for transportation by road? The registered person shall furnish the information relating to the transporter on the common portal. Moreover as mentioned in Q.3 the transporter (on authorization received from the registered person) may also furnish the information on the common portal in Part A of form GST EWB-01 and continue with the process of generation of e-way bill. 10. With reference to Q.3 and Q.8 and Q.9, what shall be the case where the movement of goods is caused by an unregistered person? In a case where movement of goods is caused by an unregistered person either in his o

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hed in Part-A of form GST EWB-01 and the unique number is generated? With reference to Q. 6, After the information is furnished in Part-A of form GST EWB-01 and the unique number is generated, the registered supplier or recipient or the transporter, as the case may be, shall furnish the details of Vehicle (i.e Vehicle number for road) using the unique number in Part-B of form GST EWB-01 after which an E-way bill shall be generated in the portal itself and only after generation of the E-way bill with the furnishing of info in Part-B of form GST EWB-01, will it be valid for movement of goods by road. Further upon generation of e-way bill on the common portal, a unique e-way bill number (EBN) shall be made available to the supplier, the recipient and the transporter on the common portal. Is there any exemption from furnishing of details of vehicle i.e. the Part-B of Form GST EWB-01 ? Yes, under the following two circumstances: In case where the goods are transported for a distance of upto

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y bill shall be generated by the registered person, being the supplier or the recipient, who shall, either before or after the commencement of movement, furnish, on the common portal, the information in Part-B of Form GST EWB-01. Further where the goods are transported by railways, the railways shall not deliver the goods unless the e-way bill required under these rules is produced at the time of delivery. What procedure is required to be followed wherein multiple consignments are intended to be transported in one conveyance? In such cases, multiple e-way bills are required to be generated for each such consignment. The transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in Form GST EWB-02 may be generated by him on the said portal prior to the movement of goods. What shall be procedure to be followed in case the neither the consignor nor the consignee generate the E-wa

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ill or a consolidate E-way bill? The E-way bill s validity period is determined based on the distance it is required to travel. The following table shows the distance upto which the conveyance needs to travel within the respective time from the relevant date so as to keep the E-way bill validated and on failure of which the e-way bill shall be invalidated and a fresh e-way bill will then have to be generated: Sl. No. Validity Period Upto 100 km One day in cases other than over dimensional cargo For every 100 km. Or part thereof thereafter One additional day in cases other than over dimensional cargo Upto 20km One day in case of over dimensional cargo For every 20 km. Or part thereof thereafter One additional day in cases of over dimensional cargo Relevant date means the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as the period expiring at midnight of th

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iner depot or a container freight station for clearance by Customs; (d) in respect of movement of goods within such areas as are notified under clause (d) of sub-rule (14) of rule 138 of the State or Union territory Goods and Services Tax Rules in that particular State or Union territory; (e) where the goods, other than de-oiled cake, being transported, are specified in the Schedule appended to notification No. 2/2017- Central tax (Rate) (f) where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel; (g) where the supply of goods being transported is treated as no supply under Schedule III of the Act; (h) where the goods are being transported- (i) under customs bond from an inland container depot or a container freight station to a customs port, airport, air cargo complex and land customs station, or from one customs station or customs port to another cus

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scription of goods Liquefied petroleum gas for supply to household and non domestic exempted category (NDEC) customers Kerosene oil sold under PDS Postal baggage transported by Department of Posts Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71) Jewellery, goldsmiths and silversmiths wares and other articles (Chapter 71) Currency Used personal and household effects Coral, unworked (0508) and worked coral (9601) The above 20 Question were relating to the first direction as mentioned in page 2 last para. Moving to second broad direction the following questions have been answered: What is the liability of the person in charge of a conveyance? The person in charge of conveyance shall carry- The invoice or the bill of supply or delivery challan as the case may be; and A copy of the e-way bill in physical form or the e-way bill number in electronic form or mapped to a Radio frequency Identification Device embedd

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lls. Given the standard practice prevalent in varied industries which are not homogenous, the processes and procedures of each organisation need to be optimized around the above provisions so as to result in most efficient compliance of E-way bill provisions. Further we must acknowledge the fact thatcertain ambiguities and apprehensions still persists which may be due to varied interpretations and insufficienciesof the statute which may lead the reader into resorting to best possible assumptions in the given scenario and the material provided above may not be free from the same. All ambiguities and doubts would eventually be removed after regular and practical usage of the E-way bill provisions and after comprehending in substance the beneficial features as well as the limitations of the IT infrastructure in place supporting the E-way Bill. For any further clarifications and valuable suggestions on the material provided above please do communicate. Article written by:- Amrit Aaron Moha

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Goods and Services Tax – 46/20/2018 – Dated:- 6-6-2018 – Circular No. 46/20/2018-GST F. No. 354/149/2017 -TRU Government of India Ministry of Finance Department of Revenue Tax Research Unit ****** North Block, New Delhi Dated the 6th June, 2018 To The Principal Chief Commissioner/ Principal Directors General/Chief Commissioner/ Directors General/Principal Commissioner/ Commissioner of Central Excise and Central Tax (All) / Director General of Systems Madam / Sir, Subject: Applicable GST rate on Priority Sector Lending Certificates (PSLCs), Renewable Energy Certificates (RECs) and other similar scrips -regarding Representations have been received seeking clarification regarding the classification and applicable GST rate on the Renewable Ene

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S. No. 453 of Schedule III of notification No. 01/2017-Central Tax (Rate). 4. As a result, there is lack of clarity on the applicable rate of GST on various scrips/ certificates like RECs, PSLCs etc. 5. The matter has been re-examined. GST rate of 18 % under the residual entry at S.No. 453 of Schedule III of notification No. 01/2017-Central Tax (Rate) applies only to those goods which are not covered under any other entries of Schedule I, II, IV, V, or VI of the notification. In other words, if any goods are covered under any of the entries of Schedule I, II, IV, V, or VI, the GST rate applicable on them will be decided accordingly, without resorting to the residual entry 453 of Schedule III. 6. As such, various certificates like RECs, PSL

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Customs – 15/2018 – Dated:- 6-6-2018 – Circular No.15/2018-Customs F. No: 450/119/2017-CusIV Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes and Customs) ***** Room No.227-B, North Block, New Delhi dated 6th June, 2018 To, All Principal Chief Commissioner/Chief Commissioner of Customs/ Customs & Central Tax / Customs (Preventive) All Principal Commissioner/Commissioner of Customs/ Customs & Central Tax / Customs (Preventive) All Director Generals under CBIC. Subject: Refund of IGST on export of Goods-Extension of date in SB005 alternate mechanism cases and Clarification in other cases -reg. Sir/ Madam, CBIC has issued Circular No s 05/2018-Customs dated 23.02.2018 and 08/2018-Customs d

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rocessing of refund claims. 2. Apart fromSB005 errors, IGST refunds are also stuck on account of SB003 error on the customs side. This error occurs when there is a mismatch between GSTIN entity mentioned in the Shipping bill and the one filing GSTR-1/GSTR-3B. Board has examined the issue and it has been decided to provide a correction facility in cases where although GSTIN of both the entities are different but PAN is same. This happens mostly in cases where an entity filing Shipping bill is a registered office and the entity which has paid the IGST is manufacturing unit/other office or vice versa. However, in all such cases, entity claiming refund (one which has filed the Shipping bill) will give an undertaking to the effect that its other

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2018 (6) TMI 378 – CESTAT CHENNAI – TMI – CENVAT credit – common inputs used in taxable service as well as trading activities – clearance of goods as such – case of appellant is that they have reversed the credit, as under Rule 3(5), when they have cleared the goods as such – Held that:- The appellants have reversed the credit, as under Rule 3(5), when they have cleared the goods as such. In a normal trading activity, the goods which are procured, are sold and there is no question of availing the credit of such goods or clearing them on the payment of duty.
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In the present case, the appellant has availed credit on the inputs and, in some circumstances, they were not able to use the goods in the manufacture of final products. They have opted to clear the goods as such, under the provision of Rule 3(5) by reversing the credit – demand cannot sustain – appeal allowed – decided in favor of appellant. – Appeal No. E/42615/2017 – Final Order No. 41747 / 2018 – Dated:- 6-6-2018 – Ms. S

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posed input penalty. In appeal, the Commissioner (Appeals) upheld the same. 2. On behalf of the appellant, the learned Counsel, Shri Sai Prasanth, submitted that the appellant had removed the raw materials under Rule 3(5) of Cenvat Credit Rules, after reversing the credit. The inputs/raw materials were removed after payment of duty. Thus, there is no trading as such and the activity cannot be treated as an exempted service. He relied upon the decision in the case of Suyash Auto Press Components and Assemblies Pvt. Ltd. Vs. CCE [2018-TIOL-1424-CESTAT-MUM]. 3. The learned AR, Shri R. Subramaniyan, supported the findings in the impugned order. He submitted that with effect from 01.04.2011, an explanation has been added to the definition of exempted service, clarifying that exempted service includes trading. Thus, when the appellants have removed the inputs as such, the same amounts to trading and, therefore, they are liable to pay an amount of 5%/6% of the value of traded goods. That the

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as such under Rule 3(5) of the Cenvat Credit Rules, 2004 on payment of excise duty which is equal to the cenvat credit. Therefore, Rule 6(3) should not be applied and accordingly the demand is not sustainable. He placed reliance on the following judgments: – (i) CCE, Ahmedabad- II vs Inductotherm (I) Pvt. Ltd. – 2013 (1) ECS (26) (Guj-HC); = 2012-TIOL-929-HC-AHM-CX (ii) AR Casting (P) Ltd. vs. CCE&ST, Chandigarh – (Service Tax Appeal No. 580/2008) (Tri. – Delhi); = 2010-TIOL-245-CESTAT-DEL (iii) Chitrakoot Steel and Power Pvt. Ltd. vs. CCE – 2008 (125) ECC 188 (Tri. -Chennai)= 2008-TIOL-246-CESTAT-MAD 3. Shri S.J. Sahu, learned Assistant Commissioner (AR) appearing on behalf of the Revenue, reiterates the finding of the impugned order. He emphasizes on para 6 of the impugned order. He further submits that all the judgements relied upon by the appellant have been dealt with by the learned Commissioner (Appeals) and the same have been distinguished. 4. I have carefully considered the

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2018 (6) TMI 424 – KERALA HIGH COURT – TMI – Release of detained goods – Section 129 of the CGST Act as also the Kerala SGST Act – Held that:- Identical matter has been disposed of by a Division Bench of this Court in the case of THE COMMERCIAL TAX OFFICER AND THE INTELLIGENCE INSPECTOR VERSUS MADHU. M.B. [2017 (9) TMI 1044 – KERALA HIGH COURT], directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017.
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The writ petition is disposed of directing the competent authority to complete the adjudication provided for under Section 129 of the statutes, within a week from the date of production o

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2018 (6) TMI 425 – ALLAHABAD HIGH COURT – [2018] 2 GSTL 43 (All), 2018 (14) G. S. T. L. 176 (All.) – Seizure of goods alongwith vehicle – Section 129(1) of the UPGST Act, 2017 – non filing Part-B of E-way Bill – Held that:- Part-B of E-Way Bill requires the details of the vehicle carrying the goods and the destination – as the complete details to be filled up in Part-B of the E-way Bill were supplied on 25.05.2018, the goods were not liable for seizure on 26.05.2018 – goods alongwith vehicle to be released on furnishing security other than cash or bank guarantee equivalent to the proposed tax – decided in favor of petitioner. – Writ Tax No. 905 of 2018 Dated:- 6-6-2018 – Hon'ble Pankaj Mithal And Hon'ble Jayant Banerji, JJ. For th

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iew of the above, as the complete details to be filled up in Part-B of the E-way Bill were supplied on 25.05.2018, the goods were not liable for seizure on 26.05.2018. Learned standing counsel appearing for the respondents may file counter affidavit within a month. Two weeks thereafter is allowed to the petitioners to file rejoinder affidavit. List for admission/final disposal after the expiry of the above period. In the meantime, the goods and the vehicles seized vide seizure memo order dated 25.05.2018 shall be released in favour of the petitioner on furnishing security other than cash or bank guarantee equivalent to the proposed tax. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanageme

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2018 (6) TMI 619 – ALLAHABAD HIGH COURT – [2018] 2 GSTL 40 (All), 2018 (15) G. S. T. L. J74 (All.) – Seizure of goods – non-payment of U.P.G.S.T. – inter-state transportation – Held that:- appellant may seek instructions and file counter affidavit within a month – List immediately thereafter for admission/final disposal. – Writ Tax No. 906 of 2018 Dated:- 6-6-2018 – Hon'ble Pankaj Mithal And Hon'ble Jayant Banerji, JJ. For the Petitioner : Udai Chandani For the Respondent : C.S.C.,A.S.

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2018 (6) TMI 989 – CESTAT MUMBAI – TMI – Rectification of mistake application – maintainability of ROM Application – Revenue argues that in view of the circular dated 18.12.2015, the issue involving refund is not covered under the original litigation policy circular dated 17.8.2011. Therefore, he submits that the order be recalled and the matter be heard again – Held that:- In view of the circular dated 4.4.2018, even refund matters are included in the scope of litigation policy circular dated 17.8.2011. Therefore, the order is passed in accordance with law. Hence the ROM is not maintainable – ROM application dismissed being not maintainable. – APPLICATION No. E/ROM/85360/2018 APPEAL No. E/87246/2017 – M/85567/2018 – Dated:- 6-6-2018 – Dr.

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2018 (7) TMI 881 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – 2018 (14) G. S. T. L. 559 (A. A. R. – GST) – Input Tax Credit (ITC) – seeking credit packaging material which is to be used in exempted supply, till they are into their stock – ITC while transferring goods between their 'own branches – multiple taxes on transfer of goods to other branches of the applicant
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Held that:- As per provisions of section 17(2) of CGGST Act, 2017 any registered recipient can claim ITC to the extent of taxable stock or taxable outward supply shown in their returns. The registered recipient cannot claim ITC on the amount of taxable supply component included in the total amount of exempted supply. The amount of unclaimed ITC shall also be reversed in the electronic ledger of the same month – If the applicant supplies seeds (exempted item) in packaged form using such packing materials (taxable item), to its own branches in other States, then no ITC could be claimed on the packaging material used

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p Input Tax Credit (ITC) of the packaging material till they are into their stock and regarding ITC while transferring goods between their 'own branches. This ruling has been sought by the applicant in the light of section 17 of CGGST Act, 2017 stipulating therein non accumulation of ITC in case of units dealing in non-tax/exempted goods. The aforesaid Advance ruling has also been requested by the applicant as for each such transfer they have to pay GST merely for internal transfer of goods from one branch to another branch for one goods and the same goods in same hands would be liable for multiple tax which will be against the core principles of GST. 2. Facts of the case:- I. The applicant M/s VNR Seeds Pvt. Ltd. Raipur with multiple registrations under GST in various States is involved in the business of supplying seeds (in packaged form using packing materials), for sowing purpose, which is exempted item. II. They procure taxable packaging materials/commodities etc. which are re

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rated their contention. He also furnished a written submission dated 24/5/2018, which has been taken on record. 5. The legal position, Analysis and Discussion:- The provisions for implementing the CGST Act and CGGST Act, 2017 are similar. Now we sequentially discuss the provisions that are applicable in the present case -The Applicant is involved in – a. The supply of seeds (exempted item) in packaged form using packaging material (taxable under GST) and also in b. Supply of such packaging materials and other consumables to their own branches situated in other States across India. 5.1 The Applicant has submitted that they are involved in the business of supplying seeds in packaged form using such packaging materials. Seeds are exempted from GST whereas packing materials and other consumables are taxable. Thus, this supply of the applicant falls under the category of composite supply, as stipulated under the provisions mentioned hereunder:- i U/s. (2)30 of CGGST Act, 2017:- "Compos

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scribed and in the manner specified in Section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. iv U/s. 49(1) of CGGST Act, 2017:- Every deposit made towards tax, interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions and restrictions as may be prescribed, maintained in such manner as may be prescribed. v. U/s. 41 of CGGST Act, 2017;- Claim of input tax credit and provisional acceptance thereof :- (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to take the credit of eligible input tax, as self-assessed, in his return and such amount

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of exempted supply. The amount of unclaimed ITC shall also be reversed in the electronic ledger of the same month. Thus it is clear from the above legal provisions that if the applicant supplies seeds (exempted item) in packaged form using such packing materials (taxable item), to its own branches in other States, then no ITC could be claimed on the packaging material used for the said exempted supply of seeds. Whereas, if the applicant supplies only packing material to own branches in other States, then the ITC involved in purchase of such packing material could be availed as per section 17(2) of CGGST Act, 2017. In view of the deliberations and discussions as above, we pass the following order: Order (Under section 98 of the Chhattisgarh Goods and Services Tax Act, 2017) In view of the discussions held above, the ruling sought by the applicant is answered as under:- The applicant is not entitled to ITC on the packing material used for packaging seeds, while making such exempted suppl

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2018 (7) TMI 1635 – SIKKIM HIGH COURT – [2018] 59 G S.T.R. 56 (Sik), 2018 (19) G. S. T. L. 18 (Sikkim) – GST on lotteries – Validity of Notifications issued by the State of Goa – seeking deletion of the State of Goa as a party Respondent – distinction between lotteries run by the State Government and the lotteries authorized by the State Government – Petitioners are aggrieved by not only impugned notification issued by State of Goa under the GGST Act, 2017 but also by the act of the Centre of issuing the impugned notifications under the CGST Act, 2017 as well as the IGST Act, 2017 which seeks to levy Goods and Services Tax on lotteries organized, promoted and conducted by the State of Sikkim.
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Held that:- It is not the actual incidence of GST under the GGST Act, 2017 which are impugned in the present Writ Petitions but the provisions of law made by the Parliament as well as the respective State Governments including the State of Goa by which it seeks to levy GST on lotteries.
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Manju Rai, Advocates., Mr. Karma Sonam Lhendup, Advocate For Respondent (s) For R-1 & R-2 : Mr. B.K. Gupta, Advocate. For R-3 & R-4 : Mr. J.B. Pradhan, Addl. Advocate General with Mr. Karma Thinlay, Sr. Govt. Advocate, Mr. Thinlay Dorjee Bhutia, Govt. Advocate, Mr. S.K. Chettri, Ms. Pollin Rai, Assistant Government Advocates. For R-3 : Ms. Prarthana Ghataney, Advocate For R-5 & R-6 : None. For R-7 : Mr. Salvador Santosh Rebello and Mr. Ugang Lepcha, Advocates. For R-4 : Ms. Karma Yangchen Bhutia, Advocate. For R-7 : Mr. Manish Kr. Jain, Advocate. For R-9 : Mr. Salvador Santosh Rebello and Mr. Ugang Lepcha, Advocates. For R-10 : Ms. Babita Rai and Ms. Ranjeeta Kumari, Advocates. For R-5 & 6, R-11 and R-12 : None. O R D E R Pradhan, J. 1. Three Writ Petitions are pending before this Court for adjudication. The present applications filed by the State of Goa under consideration seek the deletion of the State of Goa as a party Respondent in WP(C) No.36/2017, WP(C) No.38/201

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, the appropriate Court where the notification and the consequential actions if at all can be challenged is the High Court of Bombay at Goa. Consequently, the Applicant submits that this Court would not entertain such a challenge to the notification of the Government of Goa is concerned. 4. The Applicant further states that an identical Writ Petition No. 759/2017 has already been filed before the High Court of Bombay at Goa by one Serenity Trades Private Limited which has been admitted by the said High Court vide order dated 20.09.2017 and is pending final hearing. 5. The Applicant thus submits that the Petitioner can either challenge the impugned notification issued by the State of Goa by filing a Writ Petition before the High Court of Bombay at Goa or apply for intervention in Writ Petition 759/2017. The challenge to the impugned notification cannot continue before this Court as no cause of action has arisen vis-a-vis the said notification within the jurisdiction of this Court. The A

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er, notwithstanding that the seat of such Government or authority or the residence of such person is not within those territories (3) Where any party against whom an interim order, whether by way of injunction or stay or in any other manner, is made on, or in any proceedings relating to, a petition under clause (1), without (a) furnishing to such party copies of such petition and all documents in support of the plea for such interim order; and (b) giving such party an opportunity of being heard, makes an application to the High Court for the vacation of such order and furnishes a copy of such application to the party in whose favour such order has been made or the counsel of such party, the High Court shall dispose of the application within a period of two weeks from the date on which it is received or from the date on which the copy of such application is so furnished, whichever is later, or where the High Court is closed on the last day of that period, before the expiry of the next d

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nd, subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. (2) Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. Explanation.- The provisions of this article, shall, in respect of goods and services tax referred to in clause (5) of article 279A, take effect from the date recommended by the Goods and Services Tax Council. 9. The Central Government in exercise of the powers conferred by 246 A of the Constitution of India has enacted the Central Goods and Services Act, (CGST Act) 2017 as well as Integrated Goods and Services Act, (IGST Act) 2017. The State of Sikkim, the Government of Goa as well as some other States have also enacted their respective State Goods and Services Act, 2017. The Government of Goa has also enacted Goa Goods and Services

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the State of Sikkim is unconstitutional and illegal. 14. In WP(C) No.36/2017 the State of Goa is Respondent No.9. In the said Writ Petition the following prayers are sought :- (a) issue a writ in the nature of mandamus or certiorari or any other writ order or direction to hold and declare that the provisions of Serial No.6 of Schedule III read with Section 7(2) of the Central Goods and Service Act, 2017 and also serial No.6 of Schedule III read with Section 7(2) of the States Goods Service Act, 2017 of Respondent Nos. 2 to 11 exempting actionable claims as activities or transactions which shall be treated neither as supply of goods nor a supply of service but not excluding lottery from such exemption is unconstitutional, illegal and non-est as lotteries cannot at all be subjected to tax under the GST Act, 2017, IGST Act, 2017 and SGST Acts, 2017. (b) in the alternative, issue a writ in the nature of mandamus or certiorari or any other writ order or direction to hold and declare that t

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alternative, issue a writ in the nature of mandamus or any other writ order or direction to hold and declare that even if State lotteries are subject to tax, the prize money in a lottery ticket or under the lottery scheme of the State Government cannot be taxed at all and the tax i.e. Central tax and the State tax imposed on State Organized lotteries under the CGST Act, 2017 IGST Act, 2017 and the SGST Act, 2017 of the Respondents can only be levied only on the face value of the lottery ticket minus the prize money in the scheme under which the State Govt. sells its lotteries through its Distributors/ Selling Agents; (e) in the further alternative, issue a writ in the nature of mandamus or any other writ order or direction to hold and declare that the value of the lottery tickets supplied by the States to its Distributor should be the invoice value and /or the transaction value of the actually paid by the Distributor and received by the Respondent No.2 as reflected in the invoice raise

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erse Charge, and the impugned State Notification – Reverse Charge providing that in case of Lottery supply the Lottery Distributor or selling agent shall be liable to pay tax on reverse charge basis; (h) pass any other directions/s, relief/s, order/s that may be deemed fit and proper in the circumstances of this case. (i) all the costs of Writ Petition 15. In WP(C) No.38/2017 the State of Goa is arrayed as Respondent No.7 and the Petitioner has sought for the following prayers:- (i) Set aside the Impugned Notifications 01/2017 Central Tax (Rate), 01/2017 Integrated Tax (Rate), 01/2017, and the State rate Notifications of the States of Sikkim, Goa, Punjab and Maharashtra to the extent it levies differential rates of tax on the supply of Lottery tickets by creating an illusory sub-classification between Lottery run by the State Government as discriminatory and violative of Article 14, 19(1)(g) , 301, 304 of the Constitution of India and of the CGST, SGST and IGST Act, and further hold th

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writ order or direction to hold and declare that lottery are not actionable claims for the purpose of Section 3 of the Transfer of Property Act and assumption and treatment of lotteries as actionable claims for the purpose of subjecting lotteries to tax under the GST Act, 2017, IGST Act, 2017 and SGST Act, 2017 is illegal and unconstitutional and beyond the scope and powers of the said GST legislations. (b) Or in the alternative to issue a writ in the nature of mandamus or certiorari or any other writ order or direction to hold and declare and S.No.6 of Schedule III read with Section 7(2) of the Central Goods and Service Act, 2017 and also S.No.6 of Schedule III read with Section 7(2) of the States Goods and Service Act, 2017 of Respondent Nos.2 to 11 exempting actionable claims as activities or transactions which shall be treated neither as supply of goods nor a supply of service but not excluding lottery from such exemption is unconstitutional, illegal and non -est as lotteries cann

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e and/or read down S.No.242 in Schedule-II of the impugned Central Notification, impugned IGST Notification and the impugned State Notifications of Respondent Nos.2 to 12 providing for taxation of Lottery run by State Governments ; (e) in the further alternative, issue a writ in the nature of mandamus or any other writ order or direction to hold and declare that even if State lotteries are subject to tax, the prize money in a lottery ticket or under the lottery scheme of the State Government cannot be taxed at all and the tax i.e. Central tax and the State tax imposed on State Organized lotteries under the CGST Act, 2017, IGST Act, 2017 and the SGST Act, 2017 of the Respondents can only be levied only on the face value of the lottery ticket minus the prize money in the scheme under which the State Govt. sells its lotteries through its Distributors/ Selling Agents; (f) in the further alternative, issue a writ in the nature of mandamus or any other writ order or direction to hold and dec

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butor or selling agent shall be liable to pay tax on reverse charge basis; (h) pass any other direction/s, relief/s, order/s that may be deemed fit and proper in the circumstances of this case. (i) all the costs of Writ Petition. 17. It is the case of the Petitioners in the Writ Petitions that the State of Goa is also engaged in the business of State organized lotteries and has been organizing, conducting and promoting its State organized lotteries and is one of the States in the Union of India where lotteries can be sold. It is the case of the Petitioners that the Petitioners distribute, purchase and sell lotteries and online lotteries both within the State of Sikkim as well as in the State of Goa. It is the case of the Petitioners that the Central Government issued impugned notifications in exercise of the powers conferred by the Sub-section (1) of the Section 9 of the CGST Act, 2017 and similarly identical notifications have also been issued by the State Governments including the St

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tion of the Section 5 of the Lotteries Regulation Act, 1998. 19. Thus it is seen that the Petitioners are aggrieved by not only impugned notification issued by State of Goa under the GGST Act, 2017 but also by the act of the Centre of issuing the impugned notifications under the CGST Act, 2017 as well as the IGST Act, 2017 which seeks to levy Goods and Services Tax on lotteries organized, promoted and conducted by the State of Sikkim. It is not the actual incidence of GST under the GGST Act, 2017 which are impugned in the present Writ Petitions but the provisions of law made by the Parliament as well as the respective State Governments including the State of Goa by which it seeks to levy GST on lotteries. 20. Perusal of the prayers, as prayed for, in the said three Writ Petitions also makes it evident that at least a part of the cause of action has arisen within the jurisdiction of this Court. 21. WP(C) No.36/2017 was filed on 07.07.2017, WP(C) No.38/2017 was filed on 14.07.2018 and WP

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2018 (7) TMI 1688 – KARNATAKA HIGH COURT – TMI – Memo Seeking withdrawal of petition – Held that:- Memo is placed on record – The writ petition is dismissed as withdrawn. – WRIT PETITION No.23557/2018 (T–RES) Dated:- 6-6-2018 – MR. B. VEERAPPA J. Petitioner (BY Smt.Rukmini Nair, Advocate) Respondents: (By Sri K M Shivayogiswamy, Advocate for R1, Sri Vikram Huigol, HCGP for R2 & R3) ORDER After arguing the matter for sometime, Smt. Rukmini Nair, learned counsel for the petitioner has filed

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2018 (8) TMI 390 – KARNATAKA HIGH COURT – TMI – Withdrawal of petition – Petitioner has filed a memo seeking leave of the Court to withdraw the writ petition with liberty to approach appropriate Authority for appropriate relief in accordance with law – Held that:- Memo is placed on record – The writ petition is dismissed as withdrawn. – WRIT PETITION No.23558/2018 (T-RES) Dated:- 6-6-2018 – MR. B. VEERAPPA J. Petitioner (BY Smt. Rukmini Nair, Advocate) Respondents (By Sri K M Shivayogiswamy, A

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2018 (8) TMI 1495 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – tour operator services for the period prior to 01.04.2011 – denial on the ground of nexus – whether the service tax paid for services availed for pickup and drop of employees under the head “tour operator services” is eligible for credit or not?
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Held that:- The period involved is prior to 01.04.2011 when the definition of input services had a wide ambit – the issue is also covered by the decision in the case of Comstar Automotive Technologies Pvt. Ltd. [2017 (6) TMI 910 – MADRAS HIGH COURT], where it was held that availing of such services are necessary to the manufacture and transporting the workers to and fro from the factory is included under input service

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operator services for the period prior to 01.04.2011. The department was of the view that such services do not have nexus with the manufacturing activity and, hence, Show Cause Notice was issued, proposing to deny the credit and for recovery of the same along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, the Commissioner (Appeals) upheld the same. Hence, these appeals. 3. On behalf of the appellant, the learned Counsel, Shri P. Ravindran, submitted that the tour operator services were availed by the appellant for pickup and drop facilities of the staff/employees of the appellant-factory. That these services are essentially necessary

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2018 (9) TMI 433 – AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – 2018 (16) G. S. T. L. 645 (A. A. R. – GST) – Carry forward of CENVAT credit – transition to GST Regime – Whether the applicant is entitled to carry forward the accumulated cenvat credit as reflected in its Excise returns for the month of June- 2017 to GST regime in terms of provisions under the CGST Act, 2017, more particularly Section 140 of the CGST Act? – Whether the accumulated Cenvat Credit so carried forward, not being the credit availed under the GST regime, is required to be adjusted/restricted in the manner prescribed under Rules 42 and 43 of the CGST Rules, 2017?
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Held that:- A plain reading of Section 97(2) clearly implies that the any question relating to CENVAT credit, which falls under transitional provision, shall be out of purview of Advance Ruling. Admissibility of input tax credit, as given in Section 97(2), relates to 'input tax credit' as defined in Section 2(63) of CGST Act, 2017 read with Sec

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n and sale of electricity, having Registration No. 23AAKCS072M1ZB. The applicants have been allocated captive coal mines in the State of M.P. with a condition that the coal extracted would be exclusively used in the power generation plant of the applicant. The applicant have been granted one single registration under CGST Act, 2017 for the captive coal mines as well as power plant which are situated 14 km apart. 1.2 Prior to 1.7.2017, i.e., the appointed day for roll out of GST, the applicant had been registered with Central Excise Department under the existing Central Excise Act, 1944, whereby they were discharging Central Excise duty liability on extraction and manufacture of coal from coal mines for captive consumption, in view of the provisions of the Central Excise Act, 1944. Obviously, the applicant, during the period prior to 1.7.2017, had been availing credit of duty paid on inputs/capital goods and service tax paid on services used in or in relation to the activity of extracti

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ply'. In such circumstances, the applicant has sought Advance Ruling on following two questions : (i) Whether the applicant is entitled to carry forward the accumulated cenvat credit as reflected in its Excise returns for the month of June- 2017 to GST regime in terms of provisions under the CGST Act, 2017, more particularly Section 140 of the CGST Act ? (ii) If the answer to the above is in affirmative, whether the accumulated Cenvat Credit so carried forward, not being the credit availed under the GST regime, is required to be adjusted/restricted in the manner prescribed under Rules 42 and 43 of the CGST Rules, 2017 ? 2. Record of personal hearing : Mr. Gopal Mundra, Mr. Ravi Ghiyani and Mrs. Laxmi Vyas appeared for personal hearing on 10.5.2018 and reiterated the stand already taken in the application. He, however, informed that the applicant had already claimed the Credit under TRAN-1 which has been duly filed by them with the jurisdictional officers. 3. Department's stand

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Cenvat credit lying unutilized as balance as per the last ER-1 filed by the applicant for the month of June, 2017, in light of the provisions of Section 140 of the CGST Act, 2017 which specifically deals with the subject of Transitional Credit. 4.2 We have taken a note of the letter F.No. GST/PartyIssue/HQR JBP/2017-18 dated 10.5.2018 of the Joint Commissioner, CGST & Central Excise, Jabalpur. It is an admitted fact on record, as also transpired during the course of personal hearing, that the question raised by the applicant before the AAR had already been examined by the department as the applicant had claimed such disputed credit in their TRAN-1. 4.3 Before going into the merits of the case, it is necessary to deal with the. issue whether the application deserves to be admitted and heard on merits. In this context it is pertinent to refer to section 97(2) and section 98(2), which are following : 4.4 Section 97(2) : The question on which the advance ruling is sought under this Act

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bid and not the CENVAT carried forward in TRAN-1, which categorically pertains to pre-GST regime. Thus, we find that the question placed before us does not fall within the four corners of issues defined for seeking Advance Ruling under Section 97(2) ibid. Hence the application does not hold ground to be admitted on this count. 4.6 Further, Section 98(2) of the CGST Act, 2017 reads as under : Sec. 98 : Procedure on receipt of application (1) ………………………………… (2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application : Provided that the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act': 4.7 Now having regard to the

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2018 (10) TMI 341 – AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – 2018 (17) G. S. T. L. 50 (A. A. R. – GST) – Levy of GST – services by way of granting Long Term Lease – upfront charges – Whether GST is applicable on upfront amount (called as premium/salami) payable in respect of services by way of granting of longterm lease of the thirty years or more for plots catering to public health care such as hospital, nursing home, diagnostic centres etc?
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Held that:- From the plane reading of N/N. 12/2017-Central Tax (Rate), dated 28-6-2017, it can be concluded that contention of applicant is correct i.e. the above such services are exempted from the GST, if fulfil all the above conditions as mentioned in the notification.
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Ruling:- GS

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thority for Advance Ruling. "Whether GST is applicable on upfront amount (called as premium/salami) payable in respect of services by way of granting of longterm lease of the thirty years or more for plots catering to public health care such as hospital, nursing home, diagnostic centres etc?. 3. Further, applicant has referred the office memorandum sent to New Okhla Industrial Development Authority (Noida) by Ministry of Finance, Deptt. of Revenue dated 20-12-2017. In response to their request for clarification regarding eligibility for GST exemption, the memorandum does not have any mentioning of upfront for hospital plots neither in favour nor against it and applicant requested clarification on the same. They have also referred to th

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ed by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area.". From the plane reading of the above notification, it can be concluded that contention of applicant is correct i.e. the above such services are exempted from the GST, if fulfil all the above conditions as mentioned in the notification. 6. In the light of the above, we rule as under : RULING 7. GST is not applicable i.e. exempted on upfront amount, if the conditions are satisfied as mentioned [at] SI. No. 41 of Notification No. 12/2017-Central Tax (Rate),

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