Author: admin_gst

2018 (5) TMI 1184 – KERALA HIGH COURT – TMI – Stay on recovery proceedings – sales tax appeal has been preferred and is pending before this Court – Held that: – In the light of the limited prayer sought by the petitioner herein, I am inclined to direct the petitioner to seek his relief before this Court in the proceedings reported to be pending within a period of one month from today – further proceedings to be kept in abeyance. – W.P. (C). No.15199 of 2018 Dated:- 11-5-2018 – MR. SUNIL THOMAS, J. For The PETITIONER : SRI. C. P. MOHAMMED NIAS And SRI.S.AJITH (PALAKKAD) For The RESPONDENT : SRI MOHAMMED RAFIQ JUDGMENT By Ext.P9, interest on balance tax due from the petitioner for the year 1997-98 was determined by the assessing authority.

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2018 (5) TMI 1208 – GUJARAT HIGH COURT – TMI – Tax Appeal admitted to consider the question:- Whether the CESTAT is right in law not to decide on merits though there a Jurisdictional High Court decision in case of Commissioner of C. Ex., AhmedabadII Versus Cadila Healthcare Ltd. [2013 (1) TMI 304 – GUJARAT HIGH COURT] And Astik Dyestuff Pvt. Ltd. Versus Commissioner of C. Ex. & Customs [2014 (1) TMI 776 – GUJARAT HIGH COURT]? – R/Tax Appeal No. 551 of 2018 Dated:- 11-5-2018 – MR. AKIL KURESHI

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2018 (6) TMI 860 – CESTAT NEW DELHI – TMI – CENVAT Credit – input services – Sales Commission – Held that:- Identical issue has came up before the Tribunal in the case of CCE & ST, Jaipur I/ Alwar vs. M/s. Bhagwati Kripa Paper Mills Pvt. Ltd. & others [2018 (4) TMI 1163 – CESTAT NEW DELHI], where it was held that CENVAT credit is admissible on the services of the sale of the dutiable goods on commission basis – credit allowed – appeal dismissed – decided against Revenue. – Excise COD Application No. 50342 – 50343 of 2018, Excise Appeal No. 50835 – 50836 of 2018 – A/51944-51945/2018-EX[DB], MISC ORDER No. 50305-50306/2018 – Dated:- 11-5-2018 – Mr. Justice (Dr.) Satish Chandra, President And Mr. Bijay Kumar, Member (Technical) Shri M R Sharma. Shri R K Mishra, AR for the Appellants Shri Ankit Danial, Advocate for the Respondent No. 1, None for Respondent No. 2 Per: Justice (Dr.) Satish Chandra: Delay in filing the present appeals is condoned for the reasons mentioned in the application.

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it appears that identical issue has came up before the Tribunal in the case of CCE & ST, Jaipur I/ Alwar vs. M/s. Bhagwati Kripa Paper Mills Pvt. Ltd. & others [ Final Order No. 51412- 51426/2018 dated 16.4.2018] where Tribunal relied on the earlier decision in the case of National Engineering Industries Ltd. vs. CCE & ST, Jaipur I Final Order No. 57218/2017 dated 10.10.2017 where it was observed that : After hearing both the parties, we note that identical issue has come up before the Tribunal in the case of M/s Mangalam Cement Ltd. vs. CCE, Udaipur. The Tribunal vide final order No. 56683-56685/2017 dt. 28.08.2017 held as under:- 4. With regard to availment of Cenvat credit on the commission paid for sale promotion activities, the CBEC vide Circular No. 943/4/2011-CX dt. 29.04.2011 has clarified that Cenvat credit is admissible on the services of the sale of the dutiable goods on commission basis. The said circular was endorsed by the Central Government vide Notification

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cerned, the question is answered in favour of the Revenue and against the assessee. In this background, legislature explained the meaning of the sales promotion by inserting Explanation in Rule 2(1) of Rules, 2004 and declared that sales promotion includes services by way of sale of dutiable goods on commission basis. In other way, Explanation to Rule 2(l) of Rules says in clear terms that there is no bar on availment of the Cenvat credit on sales promotion service by way of sale of dutiable goods on commission basis. Further, by inserting the Explanation in the Rule 2(l), it has confirmed the Board Circular and resolved the different views of the High Courts. Taking into circumstances under which the Explanation was inserted in Rule 2(l) of Rules, 2004 and consequences of the Explanation to extend the benefit to the assessee as per Board Circular, we hold that the Explanation inserted 4 in Rule 2(l) of Rules, 2004 by Notification No. 2/2016-CX (N.T.) (supra) should be declaratory in n

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2018 (6) TMI 1196 – AUTHORITY FOR ADVANCE RULING – RAJASTHAN – 2018 (14) G. S. T. L. 309 (A. A. R. – GST) – Levy of GST – Transmission or distribution of electricity by an electricity transmission or distribution utility – Whether TPADL is eligible to avail the exemption from levy of GST under Entry No. 25 of Notification 12/2017 – Central Tax (Rate) dated 28.06.2017 bearing description 'Transmission or distribution of electricity by an electricity transmission or distribution utility' with respect to the non-tariff charges recovered by TPADL from its customers? – Whether TPADL is liable to pay tax on the aforesaid recovery made from its customer?
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Held that:- M/s TPADL is covered under electricity transmission or distribution utility and Transmission or distribution of electricity by an electricity transmission or distribution utility is EXEMPTED.
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As regard the other services provided by M/s TPADL, it is clarified by the Department under Circular no. 34/8/2018-GST dated 01

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ative RULING (A) SUBMISSION OF APPLICANT 1. M/s TP Ajmer Distribution Limited ('TPADL' or 'Applicant' or 'the Company ); having Goods and Services Tax ( GST') Registration No. 08AAGCT2158P1ZR and is engaged in the business of distribution of electricity; has submitted that, 1.1 The Tata Power Company Limited ('TPCL') has signed a Distribution Franchisee Agreement ('DFA') with Ajmer Vidyut Vitran Nigam Limited ('AVVNL') to cater to the power requirements of customers in Ajmer, Rajasthan for a period of 20 years. To serve the aforesaid purpose, TPCL has formed a Special Purpose Vehicle ('SPV') called TPADL, which will be responsible for operating and maintaining the distribution network in Ajmer City. It will also be responsible for managing the billing and collections in the said areas. 1.2 They are engaged in the activity of distribution of electricity. For the aforesaid service, distribution charges are recovered from the custome

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demand for extension of distribution mains/SuppIy line This amount is collected for extension of the distribution mains/ supply lines. There is certain amount of material which is used in the present case. Security Deposits for Electricity Consumption This is a refundable security deposit w'hich is collected from the consumers Security Deposits against Meters This is a refundable security deposit for the meter installed at the customer's premises Rent for metering equipment Rent is collected for metering equipment for industrial consumers Meter Testing Fees In case a consumer complains about a defect on the meter, a fee is collected for testing the meter ABT compliant meter ABT means Availability Based Tariff Meters. This is fee for ensuring compliance as per the regulatory norms Change of meter In case of a change in the meter, charges are recovered from the consumer Labour charges for shifting of meter in the same premises In case there is a shifting of the meter for any reas

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rresponding Volt Ampere Hours. Fee charged for testing of consumer's installation These charges are recovered for any addition/ alternation on consumer installation. Installation shall mean the whole of the electric wires, fittings, motors and apparatus erected and wired by or on behalf of the consumer, on his premises. Charges for alteration/shifting of service line In case of shifting of the service line from the pole to the home, charges for alteration/ shifting are recovered. Such charges may also be recovered in case of shifting of lines within the premises. Moreover, if there is pole near the consumer's home, the consumer may want the same to be shifted on account of safety issues or any alteration or extension of his house. Cheque dishonour fee In case the cheque given by the consumer is dishonoured, charges are recovered Delayed payment Charges In case of delay in payment by the consumers of the electricity bill, delay payment charges is collected from the consumers 1.3

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6.2017 (B) ISSUE FOR DETERMINATION The question/ issue before the authority of advance Ruling (AAR) for determination are: a. Whether TPADL is eligible to avail the exemption from levy of GST under Entry No. 25 of Notification 12/2017 – Central Tax (Rate) dated 28.06.2017 bearing description 'Transmission or distribution of electricity by an electricity transmission or distribution utility' with respect to the non-tariff charges recovered by TPADL from its customers? b. Whether TPADL is liable to pay tax on the aforesaid recovery made from its customer? (C) SUBMISSION BY THE APPLICANT 3 The applicant has submitted the following provisions of GST in their support, 3.1 In accordance with Section 9 of the Central Goods and Services Tax Act, 2017 ('CGST Act') and Section 5 of the IGST Act, which provides for charging of GST, GST is levied at the rate prescribed on all intra-state and inter-state supplies of goods/ services. 3.2 As per Section 7 (1) of the CGST Act, 'Sup

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of electricity by an electricity transmission or distribution utility have been exempted vide the Exemption Notification. The relevant extract of the Exemption Notification is reproduced hereunder: ''Transmission or distribution of electricity by an electricity transmission or distribution utility " 3.5 Serial No. 2(z) of the Exemption Notification defines electricity transmission or distribution utility as under: "electricity transmission or distribution utility" means the Central Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003 (36 of 2003); or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government ". 3.6 Further, some of the relevant terms as defined under the Exemption Notification are provided below: Serial No. 2(q) – "

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the below mentioned conditions are satisfied: a) The service shall be the service of transmission or distribution of electricity, and b) The said service shall be provided by an electricity transmission or distribution utility. 4.2 In the present case, TPADL is regarded as a franchisee since it has entered into a DFA with AVVNL being distribution licensee under the Electricity Act, 2003 ('Electricity Act). Therefore, TPADL would clearly fall within the ambit of definition of the term 'electricity transmission or distribution utility'. Accordingly, the condition (b) is satisfied in the present case. 4.3 With respect condition (a), it is submitted that the said Exemption Notification does not define the terms 'transmission or distribution of electricity'. Accordingly, it is pertinent to analyse whether the non-tariff charges collected by TPADL would be treated as consideration for the activity of 'transmission and distribution of electricity' and thereby cover

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. (D) Personal Hearing (PH) 5. In the matter personal hearing was given to applicant. Shri Varun Sharma, FCA , appeared as Authorised Representative of applicant for personal hearing on 05.05.2018. During the PH he reiterated the submission already made in application submitted on 12.02.2018 . Further during personal hearing the clarification issued under Circular no. 34/8/2018-GST dated 01.03.2018 issued vide F.No. 354/17/ 2018 was brought to the applicant's notice and issues raised in application for Advance Ruling were discussed in light of the provisions of clarification in detail . He argued that issues relating to Security deposits against electricity consumption and meters, cheque dishonour fees and delayed payment charges are not part of the considerations for the supplies hence non taxable. He further requested that the case may be decided at earliest on the basis of submission already made. (E) Issues to be decided: 6. The issue involved in this case is, (a) Whether TPADL

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al Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003 (36 of 2003); or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government; Therefore, in terms of above definition. M/s TPADL is covered under electricity transmission or distribution utility and Transmission or distribution of electricity by an electricity transmission or distribution utility is EXEMPTED. 7.2 Further as regard the other services (mentioned in para 1.2 above) provided by M/s TPADL, it is clarified by the Department under Circular no. 34/8/2018-GST dated 01.03.2018 issued vide F.No. 354/17/ 2018, In the said circular Clarifications regarding GST in respect of certain services has been given and at Sr. No. 4 clarification on the issue; Whether the activities carried by DISCOMS against recovery

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other person but shall not include any subsidy given by the Central Government or a State Government: (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply ; Therefore, the refundable security deposit against Electric Consumption and Electric Meter, which are collected from customers, will not be treated as consideration for the supply. Only when the security deposits are applied as consideration (such as forfeiture, offsetting against future progress payment, etc.) does it becomes taxable. 7.4 CHEQUE DISHONOUR FEE – As per clause 5 (e) schedul

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18 which states that other services provided by DISCOM to consumer are taxable. 7.8 Therefore, in view of the clarification issued under Circular no. 34/8/2018-GST dated 01.03.2018 issued vide F.No. 354/17/ 2018. and as discussed in above paras, it is found that, M/s TPADL is not eligible to avail the exemption from levy of GST under Entry No. 25 of Notification 12/2017 – Central Tax (Rate) dated 28.06.2017 bearing description 'Transmission or distribution of electricity by an electricity transmission or distribution utility' with respect to the non-tariff charges recovered from their customers and is liable to pay tax on the aforesaid made from its customer. 8. In view of the forgoing, we rule as under, RULING In light of clarification issued under Circular no. 34/8/2018-GST dated 01.03.2018 issued vide F.No. 354/17/ 2018-TRU and provisions of GST Act , The Services (as mentioned in para 1.2 above) provided by M/s TPADL with respect to the non-tariff charges recovered from the

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2018 (7) TMI 1114 – CESTAT ALLAHABAD – TMI – Refund claim – GTA Service – reverse charge mechanism – denial on the ground of unjust enrichment and time limitation – Section 11B of the Central Excise Act, 1944 – Held that:- The Service Tax paid, was paid under the category of “Reverse Charge Mechanism”, The appellant himself was the service recipient. Therefore, the question of passing on incidence on other person, does not arise at all since the appellant was service recipient.
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Time Limitation – Held that:- Karnataka High Court in the case of K.V.R. Constructions Versus Commissioner of Central Excise, Bangalore [2009 (8) TMI 150 – KARNATAKA HIGH COURT] wherein it was held that if an amount paid by assessee to Revenue considering Service Tax, it is to be treated as deposit at the hands of Government and over such amount limitation under Section 11B of the Central Excise Act, 1944, does not apply.
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Refund allowed – appeal allowed – decided in favor of appellant. – APPEAL No.

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alue. However, subsequently they realized that Notification No. 26/2012-ST dated 20/06/2012 has provided exemption from so much of the Service Tax leviable under Section 66B of the Finance Act, 1994, which was in excess of 25% of the value calculated and as a result during the aforesaid period they were required to pay Service Tax on taxable value of ₹ 17,72,016/- which was 25% of ₹ 70,88,083/- and as a result they had paid ₹ 8,76,090/- (-) ₹ 2,19,020/- = ₹ 6,57,070/- excess Service Tax. The said excess paid Service Tax was sought to be refunded through the said application. The appellant was issued with a Show Cause Notice dated 24/06/2015, wherein it was contended that in terms of Section 11B of the Central Excise Act, 1944, made applicable to Service Tax through Section 83 of the Finance Act, 1994, the Refund Application was time barred. The appellant was called upon to show cause as to why the said refund application should not be rejected. The said cl

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nt Service Tax in view of Notification No.26/2012-ST dated 20/06/2012 wherein it was provided that Service Tax would be applicable only on 25% of the consideration. The appellant had paid Service Tax on 100%. Therefore, under Section 66B of the Finance Act, 1994, the amount sought as a refund, does not represent Service Tax. He has further submitted that the Service Tax paid, was paid under the category of "Reverse Charge Mechanism", The appellant himself was the service recipient. Therefore, the question of passing on incidence on other person, does not arise at all since the appellant was service recipient. Therefore, the finding by ld. Commissioner (Appeals) that the claim of refund was hit by bar of unjust enrichment is not sustainable. He has relied upon ruling of Hon'ble Bombay High Court in the case of Parijat Construction Versus Commissioner of Central Excise, Nashik reported at 2018 (9) G.S.T.L. 8 (Bombay), wherein it was held that the amount paid as duty by mist

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GST – CONCEPT & STATUS (Updated as on 01st May 2018) – Goods and Services Tax – GST – Dated:- 10-5-2018 – INTRODUCTION: The introduction of Goods and Services Tax on 1st July 2017 was a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, the aim was to mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which was estimated to be around 25%-30%. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a positive impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer. GENESIS: 2. The idea of moving towards the GST was first mooted by the then Union Finan

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the States were clearly demarcated in the Constitution with almost no overlap between the respective domains. The Centre had powers to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.) while the States had powers to levy tax on sale of goods. In case of inter-State sales, the Centre had power to levy a tax (Central Sales Tax) but the tax was collected and retained entirely by the originating States. As for services, it was the Centre alone that was empowered to levy service tax. Since the States were not empowered to levy any tax on the sale or purchase of goods in the course of their importation into or exportation from India, the Centre levied and collected this tax as additional duties of customs, which was in addition to the Basic Customs Duty. This additional duty of customs (commonly known as CVD and SAD) counter balanced excise duties, sales tax, State VAT and other taxes levied on the like domestic products. Introductio

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x- UTGST). The Parliament would have exclusive power to levy GST (integrated tax – IGST) on inter-State trade or commerce (including imports) in goods or services. The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products. The tax on supply of five specified petroleum products namely crude, high speed diesel, petrol, ATF and natural gas would be levied from a later date on the recommendation of GST Council. 5. A Goods and Services Tax Council (GSTC) was constituted comprising the Union Finance Minister, the Minister of State (Revenue) and the State Finance Ministers to recommend on the GST rate, exemption and thresholds, taxes to be subsumed and other features. This mechanism would ensure some degree of harmonization on different aspects of GST between the Centre and the States as well as across States. One half of the total number of members of GSTC would form quorum in meetings of GSTC. Decision in GSTC would be taken by a m

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ty six meetings of the GSTC have been held so far. The following major decisions have been taken by the GSTC: (i) The threshold exemption limit would be ₹ 20 lakh. For special category States (except J&K) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 10 lakh. (ii) Composition threshold shall be ₹ 1 crore. As decided in the 23rd meeting of the GSTC, this limit shall be raised to ₹ 1.5 crore after necessary amendments in the Act. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers. For special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 75 lakh. (iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The sch

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to compensate States for any revenue loss on account of implementation of GST. The list of goods and services in case of which reverse charge would be applicable has also been finalized. (v) The five laws namely CGST Law, UTGST Law, IGST Law, SGST Law and GST Compensation Law have been recommended. (vi) In order to ensure single interface, all administrative control over 90% of taxpayers having turnover below ₹ 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further all administrative control over taxpayers having turnover above ₹ 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration. (vii) Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions. (viii) Power to collect GST in territorial waters shall be delegated by Central Government to the States. (ix) Formula and mechanism for GST Compensation Cess has

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s from GTA to unregistered persons has been exempted from tax. (xv) Registration and operationalization of TDS/TCS provisions has been postponed till 30.06.2018. (xvi) The e-way bill system has been introduced nation-wide for all inter-State movement of goods with effect from 01.04.2018. As regards intra-State supplies, option has been given to States to choose any date on or before 01.06.2018. As on 01.05.2018, a total of 17 States and one Union Territory have introduced e-way bill system for intra-state movement of goods. These are Karnataka, Andhra Pradesh, Gujarat, Kerala, Telangana, Uttar Pradesh, Bihar, Haryana, Himachal Pradesh, Jharkhand, Tripura, Uttarakhand, Arunachal Pradesh, Madhya Pradesh, Meghalaya, Sikkim, Puducherry and Nagaland. (xvii) www.ewaybillgst.gov.in, managed by NIC, shall be the Common Goods and Services Tax Electronic Portal for generation of e-way bill. As on 30.04.2018, around 2.80 crore e-way bills have been generated. (xviii) E-Wallet Scheme shall be intr

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77; 20/- per day instead of ₹ 200/- per day; whose tax liability for that month was not NIL‟ will be ₹ 50/- per day instead of ₹ 200/- per day. (xxiv) Facility has been introduced for manual filing of refund application. (xxv) Facility shall be introduced for manual filing of application for advance ruling. (xxvi) Supply of services to Nepal and Bhutan shall be exempted from GST even if payment has not been received in foreign convertible currency – such suppliers shall be eligible for input tax credit. (xxvii) Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government. (xxviii) www.gst.gov.in, managed by GSTN, shall be the Common Goods and Services Tax Electronic Portal. (xxix) Rate of interest on delayed payments and delayed refund has been recommended. (xxx) Rules for National Anti-Profiteering Authority have been recommended. The National Anti-Profiteering Authority has been constituted having Chairman and

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tate supply (including stock transfers) of goods or services. This would be collected by the Centre so that the credit chain is not disrupted. (v) Import of goods would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties. (vi) Import of services would be treated as inter-State supplies and would be subject to IGST. (vii) CGST, SGST /UTGST & IGST would be levied at rates to be mutually agreed upon by the Centre and the States under the aegis of the GSTC. (viii) GST would replace the following taxes currently levied and collected by the Centre: a) Central Excise Duty; b) Duties of Excise (Medicinal and Toilet Preparations); c) Additional Duties of Excise (Goods of Special Importance); d) Additional Duties of Excise (Textiles and Textile Products); e) Additional Duties of Customs (commonly known as CVD); f) Special Additional Duty of Customs (SAD); g) Service Tax; h) Cesses and surcharges insofar as they relate to supply of good

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s specified in article 279A of the Constitution) would be exempt from GST. A composition scheme (i.e. to pay tax at a flat rate without credits) would be available to small taxpayers (including to manufacturers other than specified category of manufacturers and service providers) having an annual turnover of up to ₹ 1 crore (Rs. 75 lakh for special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution). As decided in the 23rd meeting of the GSTC, this limit shall be raised to ₹ 1.5 crore after necessary amendments in the Act. The threshold exemption and compounding scheme would be optional. (xiv) The list of exempted goods and services would be kept to a minimum and it would be harmonized for the Centre and the States as well as across States as far as possible. (xv) All Exports and supplies to SEZs and SEZ units would be zero-rated. (xvi) Credit of CGST paid on inputs may be used only for paying CGST on the output and the credit of

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2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers. (xviii) Input Tax Credit (ITC) to be broad based by making it available in respect of taxes paid on any supply of goods or services or both used or intended to be used in the course or furtherance of business. (xix) Electronic filing of returns by different class of persons at different cut-off dates. (xx) Various modes of payment of tax available to the taxpayer including internet banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS). (xxi) Obligation on certain persons including government departments, local authorities and government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand ru

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five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful mis-statement. (xxviii) Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person. (xxix) Goods and Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act. (xxx) Provision for penalties for contravention of the provision of the proposed legislation has been made. (xxxi) Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under

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exports thereby making our products more competitive in the international market and give boost to Indian Exports; (vii) Improve the overall investment climate in the country which will naturally benefit the development in the states; (viii) Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State sales; (ix) Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption, which in turn means more production thereby helping in the growth of the industries. This will create India as a Manufacturing hub . (B) Ease of Doing Business: (i) Simpler tax regime with fewer exemptions; (ii) Reduction in multiplicity of taxes that are at present governing our indirect tax system leading to simplification and uniformity; (iii) Reduction in compliance costs – No multiple record keeping for a variety of taxes- so lesser investment

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ly large segment of small retailers will be either exempted from tax or will suffer very low tax rates under a compounding scheme- purchases from such entities will cost less for the consumers; (iii) Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption. GOODS AND SERVICES TAX NETWORK: 9. Goods and Services Tax Network (GSTN) has been set up by the Government as a private company under erstwhile Section 25 of the Companies Act, 1956 . GSTN would provide three front end services to the taxpayers namely registration, payment and return. Besides providing these services to the taxpayers, GSTN would be developing back-end IT modules for 27 States who have opted for the same. The migration of existing taxpayers has already started from November, 2016. The Revenue department of both Centre and States are pursuing the presently registered taxpayers to complete the necessary formalities on the IT system operated by GSTN

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amendment to rules and for waiver of penalty, etc. Thirteen, twenty three and one notifications have also been issued under IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Further 57, 61, 57 and 8 rate related notifications each have been issued under the CGST Act, IGST Act, UTGST Act and GST (Compensation to States) Act respectively. Similar notifications have been issued by all the States under the respective SGST Act. 13. Apart from the notifications, 44 circulars and 14 orders have also been issued by CBIC on various subjects like proper officers, ease of exports, and extension of last dates for filling up various forms, etc. ROLE OF CBIC: 14. CBIC is playing an active role in the drafting of GST law and procedures, particularly the CGST and IGST law, which will be exclusive domain of the Centre. This apart, the CBIC has prepared itself for meeting the implementation challenges, which are quite formidable. The number of taxpayers has gone up significantly. Th

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assive four-tier training programme has been conducted under the leadership of NACIN. This training project is aimed at imparting training on GST law and procedures to more than 60,000 officers of CBIC and Commercial Tax officers of State Governments. Officers of the office of CAG are also participating and getting trained in this training programme. More than 52000 officers (including around 20000 officers from States) have already been trained. Out of these 7000 officers have attended refresher-training course also. 17. It is expected that a momentous reform like GST is popularized and familiarized to the trade and industry who are the vital stakeholders in successful implementation of this reform. 18. CBIC would be responsible for administration of the CGST and IGST law. In addition, excise duty regime would continue to be administered by the CBIC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBIC would also conti

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applications which are still in process 1,05,140 8. Total No. of taxpayers; new + migrated (3 + 5) 1,08,46,658 9. No. of taxpayers who have opted for composition scheme 20,07,119 10. No. of 3 (B) returns filed for July, 2017 63,95,556 11. No. of 3(B) returns filed for August, 2017 68,63,945 12. No. of 3(B) returns filed for September, 2017 71,25,202 13. No. of 3(B) returns filed for October, 2017 67,97,880 14. No. of 3(B) returns filed for November, 2017 67,88,825 15. No. of 3(B) returns filed for December, 2017 67,77,191 16. No. of 3(B) returns filed for January, 2018 67,37,400 17. No. of 3(B) returns filed for February, 2018 66,41,318 18. No. of 3(B) returns filed for March, 2018 60,66,551 19. No. of GSTR 1 returns filed for July, 2017 56,91,216 20. No. of GSTR 1 returns filed for August, 2017 22,51,097 21. No. of GSTR 1 returns filed for September, 2017 60,74,232 22. No. of GSTR 1 returns filed for October, 2017 22,65,274 23. No. of GSTR 1 returns filed for November, 2017 22,59,271

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Goods and Services Tax – Started By: – Rishabh Mishra – Dated:- 10-5-2018 Last Replied Date:- 13-5-2018 – Dear Experts, Please provide solution for the treatment on Free of Cost supply in GST Returns(i.e. GSTR-1, GSTR-3B). In which return we can show an FOC Invoice. Please suggest. – Reply By Ganeshan Kalyani – The Reply = In my view, such detail cannot be reported in the return because there is no value for supply of free goods. However, the input tax credit reversed proportionate to free good

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Goods and Services Tax – Exemption from GST – supply of cereals, pulses and flour – sale under the brand name or not – the goods are being supplied through the “More Stores” which is a registered bran

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Goods and Services Tax – Classification of goods – rate of tax – E-rickshaw tyres – the e-rickshaw is not within the sweep of the word bicycles or cycle Rickshaw – The product is classified and covere

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Goods and Services Tax – GST – By: – Monarch Bhatt – Dated:- 10-5-2018 Last Replied Date:- 14-5-2018 – In this article, author has tried to cover the issues which are generally faced by the assessee. The issues are chosen based on the queries raised in the various seminars delivered by the author. Query: The Company has received legal consultancy services from an advocate in the month of September, 2017 and received an invoice dated 20th September, 2017. The company has made payment to an advocate on 20th March, 2018. The turnover of the company exceeds 20 lakh. The company wants to know: Whether they are liable for the payment of GST as receiver of service? What shall be considered as a point of taxation? How it is to be discharged and shown in the return? Reply: As per section 9(3) receiver of service is liable for the payment of GST, if such supplies are specified by way of an issue of notification. In this regards, notification number 13/2017-Central Tax (Rate) has been issued to

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As per the GST provisions, under reverse charge mechanism tax is payable when the time of supply takes place. The time of supply for reverse charge payments is earliest of the following: The date of payment to the supplier (advance or payment against bill) OR 61st day from the date of invoice, if invoice is unpaid till such time OR If the transaction is for import of services, with associated enterprise, the date of debit in the books of account. In view of the provisions in the present case, the time of supply becomes the 61st day from the invoice date. i.e. 20th November, 2017 as it has not been paid prior to that and invoice is dated 20th September, 2017. c. Now the company has not discharged the GST liability in the month of September, 2017 while filing GSTR 3B. Hence, company shall pay interest on it @ 18% from 21/10/2017 (due date for filing of GSTR 3B) to till the date of filing of GSTR 3B for the month of March 2018. The same shall be shown as liability under reverse charge me

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filing GSTR 3B for the month of March 2018 and interest shall also be mentioned in the GSTR 3B. – Reply By JAIPRAKASH RUIA – The Reply = Sir, We are honored to get the guidance from you, my humble request to please be more active on taxmanagementindia.com website so that learner people like me may get benefit of you knowledge.God Bless you sir, – Reply By Archna Gupta – The Reply = Dear Mr. BhattI have query on advocate services by senior advocate because there is distinction between advocate and senior advocate in notification number 12/2017-Central Tax (Rate). If a senior advocate provides services to another advocate or another senior advocate then what would be the consequences. Whether advocate or senior advocate receiving services from SENIOR ADVOCATE are liable to get registration? – Reply By Monarch Bhatt – The Reply = The query is with respect to the applicability of reverse charge mechanism on the advocate or firm of advocate where they are receiving the services from senior

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y an individual advocate including a senior advocate or firm of advocates by way of legal services, directly or indirectly. Explanation. – legal service means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority. . An individual advocate including a senior advocate or firm of advocates. Any business entity located in the taxable territory. The term business entity located in the taxable territory as referred in the column number (4) which is for recipient of service has been explained under the notification itself, under explanation (c). The explanation (c) of the notification reads as follows: (c) the business entity located in the taxable territory who is litigant, applicant or petitioner, as the case may be, shall be treated as the person who receives the legal services for the purpose of this notification. In view of the above, receiver of service

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GST – States – MGST-1018/C.R.38/Taxation-1 – Dated:- 10-5-2018 – FINANCE DEPARTMENT Madam Cama Marg, Hutatma Rajguru Chowk, Mantralaya Mumbai 400 032, dated the 10th May 2018 NOTIFICATION Notification No. /2018- State Tax MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017 No. MGST-1018/C.R.38/Taxation-1.-In exercise of the powers conferred by section 99 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), the Government of Maharashtra, hereby constitutes an Authority known as The

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GST – States – 4-P/2017 – Dated:- 10-5-2018 – FINANCE SECRETARIAT NOTIFICATION (4-P/2017) No. FD 47 CSL 2017, Bengaluru, dated: 10/05/2018. In exercise of the powers conferred by Section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), on the recommendation of the GST Council, the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely:- RULES 1. Title and commencement – (1) These rules may be called the Karnataka Goods and Services Tax (Sixth Amendment) Rules, 2018. (2) Save as otherwise provided, they shall come into force on the date of their publication in the Official Gazette. 2. Amendment of rule 89 – In rule 89, for sub-rule (5), the following shall be substituted, namely:- "(5). In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:- Maximum Refund Amount = [(Turnover of inverted rated s

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r sub-section (5) of section 54 of the Central Goods and Services Tax Act, 2017 (Central Act 12 of 2017), read with section 20 of the Integrated Goods and Services Tax Act, 2017(Central Act 13 of 2017), shall be deposited in the Fund. (2) Where any amount, having been credited to the Fund, is ordered or directed to be paid to any claimant by the proper officer, appellate authority or court, the same shall be paid from the Fund. (3) Accounts of the Fund maintained by the State Government shall be subject to audit by the Comptroller and Auditor General of India. (4) The Government shall, by an order, constitute a Standing Committee (hereinafter referred to as the 'Committee') with a Chairman, a Vice-Chairman, a Member Secretary and such other members as it may deem fit and the Committee shall make recommendations for proper utilisation of the money credited to the Fund for welfare of the consumers. (5) (a) The Committee shall meet as and when necessary, generally four times in a

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be, such books, accounts, documents, instruments, or commodities in custody and control of the applicant, as may be necessary for proper evaluation of the application; (c) to require any applicant to allow entry and inspection of any premises, from which activities claimed to be for the welfare of consumers are stated to be carried on, to a duly authorised officer of the State Government or the Central Government, as the case may be; (d) to get the accounts of the applicants audited, for ensuring proper utilisation of the grant; (e) to require any applicant, in case of any default, or suppression of material information on his part, to refund in lump-sum along with accrued interest, the sanctioned grant to the Committee, and to be subject to prosecution under the Act; (f) to recover any sum due from any applicant in accordance with the provisions of the Act; (g) to require any applicant, or class of applicants to submit a periodical report, indicating proper utilisation of the grant; (

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f the money available in the Fund; (c) for making available grants (on selective basis) for reimbursing legal expenses incurred by a complainant, or class of complainants in a consumer dispute, after its final adjudication; (d) for making available grants for any other purpose recommended by the Central Consumer Protection Council (as may be considered appropriate by the Committee); (e) for making available up to 50% of the funds credited to the Fund each year, for publicity/ consumer awareness on GST, provided the availability of funds for consumer welfare activities of the Department of Consumer Affairs is not less than twenty five crore rupees per annum. Explanation .- For the purposes of this rule, (a) 'applicant' means, (i) the State Government or the Central Government; (ii) regulatory authorities or autonomous bodies constituted under an Act of Parliament or the Legislature of the State or of any other State or Union Territory; (iii) any agency or organization engaged in

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b) 'application' means an application in the form as specified by the Standing Committee from time to time; (c) 'Central Consumer Protection Council' means the Central Consumer Protection Council, established under sub-section (1) of section 4 of the Consumer Protection Act, 1986 (Central Act 68 of 1986), for promotion and protection of rights of consumers; (d) 'Committee' means the Committee constituted under sub-rule (4); (e) 'consumer' has the same meaning as assigned to it in clause (d) of sub-section (1) of section 2 of the Consumer Protection Act, 1986 (Central Act 68 of 1986), and includes consumer of goods on which State tax has been paid; (f) 'Fund' means the Fund established by the State Government under section 57 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017); (g) 'proper officer' means the officer having the power under the Act to make an order that the whole or any part of the state tax is refun

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inputs contained in semi-finished or finished goods held in stock, and capital goods/plant and machinery on which input tax credit is required to be reversed and paid back to Government. Sl.No. GSTIN Invoice/Bill of Entry Description of inputs held in stock, inputs contained in semi-finished or finished goods held in stock and capital goods /plant and machinery Unit Quantity Code (UQC) Qty Value (As adjusted by debit/ credit note) Input tax credit/Tax payable (whichever is higher) (Rs.) No. Date Central tax State/Union territory tax Integrated tax Cess 1 2 3 4 5 6 7 8 9 10 11 12 8 (a) Inputs held in stock (where invoice is available) 8 (b) Inputs contained in semi-finished or finished goods held in stock (where invoice is available) 8 (c) Capital goods/plant and machinery held in stock 8 (d) Inputs held in stock or inputs as contained in semi-finished /finished goods held in stock (where invoice is not available) 9. Amount of tax payable and paid (based on Table 8) Sl.No. Description I

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dd/mm/yyyy Instructions: 1. This form is not required to be filed by taxpayers or persons who are registered as :- (i) Input Service Distributors; (ii) Persons paying tax under section 10; (iii) Non-resident taxable person; (iv) Persons required to deduct tax at source under section 51; and (v) Persons required to collect tax at source under section 52. 2. Details of stock of inputs, inputs contained in semi-finished or finished goods and stock of capital goods/plant and machinery on which input tax credit has been availed. 3. Following points need to be taken care of while providing details of stock at Sl. No.8: (i) where the tax invoices related to the inputs held in stock or inputs contained in semi-finished or finished goods held in stock are not available, the registered person shall estimate the amount under sub-rule (3) of rule 44 based on prevailing market price of the goods; (ii) in case of capital goods/ plant and machinery, the value should be the invoice value reduced by 1/

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2018 (6) TMI 464 – AUTHORITY FOR ADVANCE RULING-ANDHRA PRADESH – 2018 (13) G. S. T. L. 431 (A. A. R. – GST) – Concessional Rate of GST – N/N. 45/2017 (Central Tax Rate), dated 14th November, 2017 and N/N. 47/2017 (Integrated TAX-Rate), dated 14th November 2017 – supply of goods like scientific and technical instruments – Adoptability of notification to their supplies – Whether the supplies, made to SRI HARI KOTA HIGH ALTITUTDE RANGE (SHAR.) I SARISH DHAWAN SPACE CENTRE located at Sri Hari Kata, Andhra Pradesh, are eligible for concessional rate of tax as per N/N. 45/2017 (Central Tax Rate), dated 14th November, 2017 and N/N. 47/2017 (Integrated TAX-Rate), dated 14th November 2017?
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Held that:- As seen from the copy of the certificates Issued by the Satish Dhawan Space Center (SHAR), it is understood that the said Institution falls under ' Public funded research institution'. As per the certificate it Is also mentioned that the said institution is under the administrative control

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ations 45/2017 (Central Tax Rate), dated 14th November, 2017 and 47/2017 (Integrated TAX-Rate), dated 14th November 2017." 3. In the light above, the application was forwarded to both the jurisdictional officers (State tax & Central tax) to offer their remarks as par the Sec 98(1) of CGST/APGST Act, 2017, and requested for the Information, whether there is any proceedings pending before any of the forums or the authorities. This authority received reply through an e- Mail, dated 03,04.2018, that there is no pending proceeding before any forum. 4.1 Based on the remarks received from the jurisdictional officers', a personal hearing, was fixed on 04,04,2018, Shri. A.V.S Krishna Mohan Advocate and authorized representative of the applicant attended the personal hearing wherein he submitted Xerox copies Of work order and ICSI Exemption Certificates received from SHAR authorities, and submitted a separate list of goods, for which an indent is made by the SHAR. 4.2 The applicant

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cant. As seen from the copy of the certificates Issued by the Satish Dhawan Space Center ( SHAR ), it is understood that the said Institution falls under ' Public funded research institution'. As per the certificate it Is also montioned that the said institution is under the administrative control of Department of Space, Government of India It would be pertinent to discuss the conditions laid down In the subject notification for better clarity. The relevant extract is reproduced hereunder S.No. Name of the Institutions Description of the goods Conditions (1) (2) (3) (4) 1 Public funded research institution other than a hospital or a University or an Indian Institute of Technology or Indian Institute of Science. Bangalore or a National Regional Engineering College (a) Scientific and technical instruments, apparatus, equipment (including computers); (b) accessories, parts consumables and live animals (experimental purpose); (c) Computer software, Compact Disc-Read Only Memory (CD

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ndia or the Deputy Secretary to the State Government or the Deputy Secretary in the Union territory in concerned department to the supplier at the time of supply of the specified goods; (ii) The institution produces, at the time of supply, a certificate to the supplier from the I lead of the Institution, in each case, certifying that the said goods are required for research purposes only; (iii) In the case of supply of live animals for experimental purposes, the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution that the live animals are required for research purposes and enclose a no objection certificate issued by the Committee for the Purpose of Control and Supervision of Experiments on Animals. The subject Notification gives concessional rate of duty to specific goods as mentioned at Column 3 of above table when supplied to institutions mentioned at Column 2 of the above table, subject to the condition as mentioned al column

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GST – States – 414/2018/4(120)/XXVII(8)/2018/CT-21 – Dated:- 10-5-2018 – Government of Uttarakhand Finance Section-8 No.414/2018/4(120)/XXVII(8)/2018/CT-21 Dehradun : : Dated:: /10th May, 2018 Notification In exercise of the powers conferred by section 164 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017) read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (Act no. 01 of 1904) (as applicable in the State of Uttarakhand), the Governor is pleased to make the followi

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2018 (7) TMI 1202 – CESTAT ALLAHABAD – TMI – CENVAT Credit – input services – Outdoor Catering Service – Held that:- In all the rulings pointed out by the ld. Counsel for the appellants Hon’ble High Courts of Bombay, Gujarat & Allahabad have held that Service Tax paid on Outdoor Catering Service, when such services are availed by manufacturer for providing canteen facility to the workers as required by Factory Act were admissible as input service – credit allowed – appeal allowed – decided in favor of appellant. – APPEAL No. E/70291-70297/2018-EX[SM] – A/71067-71073/2018-SM[BR] – Dated:- 10-5-2018 – Mr. Anil G. Shakkarwar, Member (Technical) Shri Hrishikesh, Advocate, for Appellant Shri Pawan Kumar Singh, Superintendent (AR), for Respondent ORDER Per: Anil G. Shakkarwar The above stated seven appeals are taken together for decision since these are arising out of common impugned Order-in-Appeal No. NOIDA-EXCUS-001-APP-1444 to 1450-17-18 dated 30/11/2017 passed by Commissioner, Central

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ing Service is not an input service. Therefore, through various Show Cause Notices issued to the said appellants there were proposals to disallow Cenvat credit of ₹ 1,80,967/-, ₹ 1,08,712/- & ₹ 1,05,115/- to MATEL, ₹ 2,72,067/-, ₹ 1,24,695/- & ₹ 2,91,389/- to SMIEL & ₹ 3,36,890/- to MSEW. The said Show Cause Notices were adjudicated through Orders-in-Original, wherein the Original Authority has allowed the said credit through Orders-in-Original as follows: OIO No. 02 dated 21/04/2016, OIO No. 10 dated 26/04/2016, OIO No. 11 dated 26/04/2016, OIO NO. 04 dated 21/04/2016, OIO No. 03 dated 21/04/2016, OIO NO. 01 dated 21/04/2016 & OIO No. 05 dated 21/04/2016. Aggrieved by the said orders, Revenue preferred appeal before Commissioner (Appeals). In the grounds of appeal, Revenue had contended that it was held by Hon ble High Court of Calcutta in the case of Peico Electronics & Electricals Ltd. Versus Commissioner of Income Tax re

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ed at 2010 (20) S.T.R. 577 (Bombay) in Para 32 had clearly ruled that the manufacturer is entitled to the credit of Service Tax paid on Outdoor Catering Service. He has further relied on ruling of Hon ble Gujarat High Court in the case of Commissioner of Central Excise, Ahmedabad-I Versus Ferromatik Milacron India Ltd. reported at 2011 (21) S.T.R. 8 (Gujarat). He has submitted that the Hon ble Gujarat High Court in the said case in Para 6 of their judgment have held that Canteen Services which are indispensable in relation to manufacture of the final products would certainly fall within the ambit of input service as defined under Rules. He further relied on ruling of Hon ble Allahabad High Court in the case of Commissioner of Central Excise Versus HCL Technologies reported at 215 (37) S.T.R. 716 (Allahabad), wherein the Hon ble High Court of Allahabad has relied on ruling of Hon ble Gujarat High Court in the case of Commissioner of Central Excise, Ahmedabad-I Versus Ferromatik Milacron

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2018 (12) TMI 775 – CESTAT KOLKATA – TMI – Penalty u/s 11AC of CEA – Clandestine removal – entire amount of differential duty alongwith interest paid on their own before intervention of the department – Held that:- Such reversal of credit on the basis of their own ascertainment and payment of interest involved thereon, before the issuance of relevant Show Cause Notice, is in agreement with the provisions of sub-section (1)(b)(i) of Section 11A of the Central Excise Act, 1944 – appeal dismissed – decided against Revenue. – Appeal No. E/77119/2017, CO-75258/2018 – FO/76566/2018 – Dated:- 10-5-2018 – Shri P.K. Choudhary, Member (Judicial) Shri D. Halder, AC(AR) for the Appellant (s) Shri Anjan Dasgupta, Advocate for the Respondent (s) ORDER Per Shri P.K. Choudhary 1. Briefly stated the facts of the case are that the appellants are engaged in the manufacture of M.S. Round, CMS Crossing, Bogie, Coupler Body/Set, Back Stop, Draft Gear etc. classifiable under Chapter 72,73 & 86 of the Fi

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ntly paid the differential duty with interest on their own and also reiterated the fact in the relevant ER-I Returns. In fact there was no occasion to issue show cause notice. 4. Heard both sides and perused the appeal records. 5. I find that the assessee had paid the entire amount of differential duty alongwith interest on their own before intervention of the department. I observe that the first appellate authority has discussed the issue in details. The relevant portions of the impugned order are reproduced for the sake of appreciation of the facts and law on the point: 14. In view of the above, I am of the considerate opinion that the Chartered Accountant s Certificate should have been given due cognizance to display the application of judicious nature of mind by the lower authority during the course of appreciating the factual matrix of the instant case. 15. It obviously follows from the above discussions that in absence of any of the excluding elements as specified in subsection (

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2 and 163 dated 25.07.2012 and 164 & 165 dated 26.07.2012, based on their own ascertainment, before issuance of the impugned Show Cause Notice dated 16.11.2016 was served on them. The details of such payment of duty by way of raising supplementary invoices has also been furnished by them in their relevant ER-I Returns pertaining to the months of May 11, June 12 which had been submitted by them to the Department on 09.06.2011, 10.07.2012 and 10.08.2012 respectively. All such payments of duty had been done before issuance of the impugned Show Cause Notice dated 16.11.2016. In addition, they have also paid the interest involved in this case and totaling to ₹ 9,93,447/- vide e-Challan Nos. 00274 dated 26.12.2014, 00069 dated 23.08.2014 and 00211 dated 30.08.2013, which too had been paid before issuance of the impugned Show Cause Notice dated 16.11.2016 was served on them. Such reversal of credit on the basis of their own ascertainment and payment of interest involved thereon, bef

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garding imposition of penalty on the appellant in terms of Section 11AC of the Central Excise Act, 1944, I find that the statute explicitly bars the imposition of penalty in cases where the assessee concerned is eligible for availment of benefit of sub-section (2) of Section 11A of the said Act. Accordingly, I am of the considerate opinion that the penalty imposed by the impugned OIO deserves to be set aside being not maintainable on merit. 20. In view of the discussions above, I uphold the impugned OIO only to the extent of demand for recovery of duty along with appropriate interest. Penalty imposed is set aside and appeal is allowed on the above terms with consequential relief. 6. In view of the above discussions I do not find any infirmity in the impugned order and the same is hereby sustained. 7. The appeal filed by the revenue is dismissed. Cross objection is disposed of. (Operative portion of the order have already been pronounced in the open court) – Case laws – Decisions – Ju

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2018 (12) TMI 859 – CESTAT KOLKATA – TMI – Refund claim – export of services – disallowance of such refund claim under various heads on the ground of lack of nexus/co-relation between the input service and the out-put service – Rule 5 of the Cenvat Rules read with the provisions of Notification No. 27/2012- CE(NT) dated 18-06-2012 – Held that:- In the present case, some of the input services do not qualify the definition of input services in terms of Rule 2 (e) of the Cenvat Credit Rules, 2004.
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Tribunal in various decisions has consistently held that there cannot be two different yardsticks, one for permitting credit and the other for eligibility for granting rebate. Whatever credit has been permitted to be taken, the same are permitted to be utilized and when the same is not possible, there is provision for grant of refund or rebate. Without questioning the credit taken, the eligibility to rebate cannot be questioned.
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In some cases, the Cenvat Credit has been disallowed o

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the appellant availed various input services, defined under Rule 2(l) of the Cenvat Credit Rules, 2004 (hereafter referred to as the Cenvat Rules , in short). The services provided by them being qualified as Export of Service , as defined under Rule 6A of the Service Tax Rules, 1994 (hereafter referred to as the Rules , in short), the appellant filed Refund Claim in terms of Rule 5 of the Cenvat Rules read with the provisions of Notification No. 27/2012- CE(NT) dated 18-06-2012 for the quarterly period from October, 2012 to December, 2012, October, 2014 to December, 2014 and January, 2015 to March, 2015. 3. The grounds for disallowance of credit in respect of all the three adjudication Orders as well as Orders-in-Appeal are summarized in the following Table:- Sl. Name of the Service Provider Nature of Service Inadmissible Cenvat Credit Reason for disallowance Remarks 1. Burman Bohra & Associates Deloittee Haskins & Sales LLP Chartered Accountants Service Rs.2,71,222/ No relatio

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FUND/BDN/CGST&CX/ KOL-NORTH/17-18 dated 13-02-2018 and Order-in- Original No. 33/REFUND/STI/ ND/KOL/17-18 dated 13-05-2017. Refer 2017 (52) STR 497 (Tri.-All.) – CCE&ST, Noida vs. Samsung India Electronics Pvt. Ltd. 4. Bodyline Sports (ST/75551/18) Maintenance & Repair Service Rs.1,730/- No relationship or nexus Refer 2014 (33) STR 96 (Tri.-Del.) – KPMG vs. CCE, New Delhi 5. ABS Enterprise (ST/75550/18) Maintenance & Repair Service Rs.481.88 Invoice not submitted Copy of the Invoice is enclosed at page 53 of Appeal No. ST/75550/2018. 6. Godrej & Boyce Mfg. Co. Ltd. (ST/75549/18) Maintenance & Repair Service Rs.14,362/- Credit Taken on Proforma Invoice Once Service Tax has been found to be paid, merely due to the name shown as Proforma Invoice cannot be the sufficient ground for denial of refund of input service credit. Credit taken on Debit Note has been allowed. Refer 2014 (34) STR 66 (Tri.-Ahmd.) – CCE&C, Daman vs. Jalaram Plastic Pack 7. AT&T Communic

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6/- has been sought to be disallowed towards credit in respect of out of pocket expenses. But entire credit of ₹ 1,774/- has come to be disallowed by mistake. 10. Deloitte Touche Toumatsu India Pvt. Ltd. Management Consultants (ST/75550/18) Rs.54,631/- No relationship or nexus Refer 2014 (33) STR 96 (Tri.-Del.) – KPMG vs. CCE, New Delhi 11. UCS Corporate Services Pvt. Ltd. Management Consultants (ST/75550/18) Rs.2,348/- No reason No reasons provided. Held as eligible input service. in 2014 (33) STR 96 (Tri.-Del.) – KPMG vs. CCE, New Delhi. Refund has been allowed for the subsequent period vide Order-in-Original No. 19/REFUND/BDN/ CGST&CX/KOL-NORTH/17-18 dated 13-02-2018. 12. First Advantage Pvt. Ltd. Management Consultants (ST/75550/18) Rs.4,713.20 No reason No reasons provided. But held as eligible input service in 2014 (33) STR 96 (Tri.- Del.) – KPMG vs. CCE, New Delhi. 13 R.S. Software India Ltd. Manpower Recruitment or Supply Agency s Service Rs.76,078.76 (ST/75550/18) No

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inadmissible or ineligible, while granting the refund of the same credit. 17. Praxis Softech Solutions Pvt. Ltd. (ST/75549/18) Manpower Recruitment or Supply Agency s Service Rs.6,23,633/- Could not be correlated without description The nature of service is clear from the Invoice itself (Sample invoice at page 47 of the appeal against the appeal Order No.297/STI/ Kol/2017dated 31-10-2017) 18. Prime Online Pvt. Ltd. (ST/75549/18) Manpower Recruitment or Supply Agency s Service Rs.8,239/- Could not be correlated without description Refund has been allowed for the subsequent period vide Order-in-Original No. 19/REFUND/BDN/ CGST&CX/KOL-NORTH/17- 18 dated 13-02-2018. The nature of service is clear from the Invoice itself (Sample invoice at page 49 of the appeal against the appeal Order No.297/STI/ Kol/2017dated 31-10-2017) 19. RS Software (India) Pvt. Ltd. (ST/75549/18) Manpower Recruitment or Supply Agency s Service Rs.2,77,288/- Could not be correlated without description The nature o

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as inadmissible or ineligible, while granting the refund of the same credit. It is wrong to refuse refund of credit lawfully taken on the ground of inadmissibility. In support of his contention, he has relied upon the decision of the Tribunal in the case of Target Sourcing Service India (P) Ltd. Vs. Commr. of Central Excise & S.Tax, Delhi II reported in 2017 (52) S.T.R. 277 (Tri.-Del.). 4.2 The ld.Advocate has also brought to the notice of the Bench that the ld adjudicating authority has contravened the principles of natural justice by denying the credit without granting any opportunity of personal hearing in respect of the Appeal Nos.ST/75550/18 & 75551/18. In this regard, reliance is placed during the course of hearing on the following reported decisions:- (i) 2015-TIOL-1044-CESTAT-DEL – Serco Global Services Pvt. Ltd. vs. CCE, Delhi-III; ST – Refund – Even if the CENVAT credit was considered to have been taken wrongly, disallowing the same requires quasi-judicial process inv

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them an opportunity of producing the relevant material and a reasoned order shall thereafter be passed by the authority and uninfluenced by the earlier action. All contentions on merits of the claim of refund are kept open. The petitions are allowed. No costs. Our order and directions does not mean that we have adjudicated the claim of refund and that the authorities are oblige to grant it. [Emphasis supplied] (ii)2017 (52) S.T.R. 3 (S.C.)-UNION OF INDIA vs. HANIL ERA TEXTILES LTD. 5. The ld.D.R. appearing on behalf of the Revenue, has reiterated the findings of the lower authorities. 6. Heard both sides and perused the appeal records. 7. I find that the transaction undertaken by the appellants qualified to be export of service , as defined under Rule 6A of the Service Tax Rules, 1994. Since they were not in a position to utilize the accumulated Cenvat Credit, refund claim has been filed in terms of Rule 5 of Cenvat Credit Rules, 2004 read with the provisions of Notification No.27/201

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Goods and Services Tax – Started By: – ramappa Nagappa – Dated:- 9-5-2018 Last Replied Date:- 16-6-2018 – whether Reply By KASTURI SETHI – The Reply = Assessable value is to be arrived at after deducting the percentage of abatement from MRP. On that value NCCD will be computed. – Reply By YAGAY and SUN – The Reply = Abatement rate runs from a range 50% -55% for tobacco products depending on the classification and containing the pertcentage of tobacco in particulars product. – Reply By KASTURI SETHI – The Reply = Section 4A of Central Excise Act is applicable. – Reply By YAGAY and SUN – The Reply = Please refer appendix XI – MRP Based assessment – Percentage of abatement read with Schedule III of the C.E.Tariff and appendix X of the NCCD i

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Goods and Services Tax – Started By: – Narendra Soni – Dated:- 9-5-2018 Last Replied Date:- 10-5-2018 – Kindly suggest, whether sale value of below mentioned items will be included in Adjusted Total turnover for claiming refund of ITC accumulated on export of goods/services under Bond/LUT, in its formula:-1.Sale of MEIS (Duty credit scrip issued by DGFT as incentive on export) on which GST rate is 0% (NIL rated)2.Sale of Waste & Scrap of fire woods on which GST rate is 0% (NIL rated).Kindly suggest at the earliest. – Reply By YAGAY and SUN – The Reply = In our view there is no such need as first point relate to post export activity and second limb is associated with fire wood on which at any stage GST is not applicable. – Reply By Nare

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Goods and Services Tax – Started By: – SURYAKANT MITHBAVKAR – Dated:- 9-5-2018 Last Replied Date:- 13-5-2018 – As per GST Act, we have to mention all record kept i.e. Challon Number in GSTR1. In our case we have not mentioned any challon number under Material supply under warranty , Inter Unit Transfer, Returnable Goods in particular month. Since our GSTR1 for Mar-18 is due can we mention altogether challon number i.e. (July-17 to Mar-18) in Month of Mar-18. – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = If there is supply you have to mention invoice number. In my view it cannot altogether be mentioned – Reply By SANJEEV JADHAV – The Reply = Dear Sir, GST is the new law and their may be possibilities of mistakes at the initial stage du

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Goods and Services Tax – Started By: – Senthilkumar R – Dated:- 9-5-2018 Last Replied Date:- 10-5-2018 – Sir,One machine purchased from karnadaka to tamilnadu in bill to and ship to concept.billing address pay the payment and utilised the IGST amount. But supplier passing the taxamount, to shipping address. How to rectify the problem. – Reply By YAGAY and SUN – The Reply = Through issuance of revised invoice you may rectify this problem. – Reply By Senthilkumar R – The Reply = These transaction

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Goods and Services Tax – Started By: – Shrenik Bhura – Dated:- 9-5-2018 Last Replied Date:- 9-5-2018 – Sequence of events: A. Goods are billed to us my manufacturer based in state A. B. Handed over to GST registered transporter to transport to us in state B. C. Payment is made by us before receipt of goods in almost all cases. D. Transporter fills part B for e-waybill generation and dispatches goods from state A to state B which are more than 1000 km apart. E. Transporter bills us for transportation on a monthly basis and we make the payment and also pay a 5% GST as RCM with our monthly 3B. F. Goods are kept in most cases at transporters warehouse much beyond the e-waybill validity period of 15 days. We also have an insurance cover for the

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il the ITC? – Reply By MUKUND THAKKAR – The Reply = G. Goods are shifted to our warehouses or shop on a periodic basis in the next 2-3 months and at times even 5-6 months based on demand. All our warehouses are in state B itself and have been listed in additional places of business.Goods kept at the transporter warehouse :- if such transporter place if you had listed in additional place & additional place meet all condition as per GST rules then you are eligable to take ITC after receiving the goods at transporter place ( your additional place).E-way Bill Validity as per my point of view will be not effected.if Bill to ship to invoice showing your additional place in invoice. other wise in future may dept may raised the objection. – Rep

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Goods and Services Tax – Started By: – Pankaj Aggarwal – Dated:- 9-5-2018 Last Replied Date:- 9-5-2018 – Dear Experts,Whether taxi services for transportation of faculty or staff provided to educational institute i.e. university is exempted from GST or not? – Reply By Alkesh Jani – The Reply = Sir, In terms of Sl.No.66 (b) of Notification No. 12/2017 -CT (Rates) dated 28th June, 2017, Services provided to educational institute is exempted but this exemption shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to higher secondary school or equivalent. In your case, educational institute is an University and therefore, exemption benefit is not available and GST

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Goods and Services Tax – Input tax credit on motor vehicle – cash carry vans – used for cash management business – As the Members of the Advance Ruling Authority differ in respect of this question as

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Goods and Services Tax – Scope of Supply – disposal of the scrap vehicles – supply of such motor vehicles as scrap after its usage is an activity of supply in the course or furtherance of business and

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