Author: admin_gst

Goods and Services Tax – Levy of GST – providing the service of teaching to the students of Class Xlth and Xllth science – providing the coaching for entrance examination – The education service provi

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Goods and Services Tax – Classification of Caesarstone – an article made from artificial stone – same would not be covered by the Chapter 25 and the Heading 2506 – Caesarstone imported by the applican

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Goods and Services Tax – Levy of GST – reinstatement charges paid to Municipal Authorities – to carry out the excavation of roads for laying, repair and maintenance of electric supply lines – the acti

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2018 (5) TMI 887 – CESTAT CHENNAI – TMI – Nature of activity – deemed sale or service? – Supply of Tangible Goods – appellants are engaged in supply, installation and operation of digital camera equipment having Qube digital technology to various theatre owners on ‘right to use’ basis through an agreement entered with the parties – Department was of the view that the supply of digital camera equipment on higher basis to theatre owners would fall within the definition of service as under Section 65 B (44) of the Act, and the nature of the said service as defined under Section 66 E (f) of the Finance Act, 1994 is liable to levy of service tax.
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Held that: – The sub-clause (f) of Section 66 E (declared services) refers to transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods – in the present case the supply of goods involves transfer of right of possession and effective control on such goods and therefore would fall

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basis through an agreement entered with the parties. In terms of the said agreement/LOU, the theatre owners pay a non-refundable deposit and also pay per show fee and in addition to this the appellant will have exclusive right of 20 mts. advertising time for every show. Further, the appellant has to install, commission and maintain all the appliances at their cost and these shall always remain the property of the appellants. The department was of the view that the supply of digital camera equipment on higher basis to theatre owners would fall within the definition of service as under Section 65 B (44) of the Act, and the nature of the said service as defined under Section 66 E (f) of the Finance Act, 1994 is liable to levy of service tax. Three separate SCNs were issued for various periods from July 2012 to March, 2015 and after due process of law, the original authority vide separate Order-in-Original confirmed the demands, interests and imposed penalties. In appeal, the Commissioner

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ion 66 E – declared services. He pointed out that Section 65 B (44) sub-clause (ii) specifically excludes activity which involves transfer, delivery or supply of goods, which is deemed to be a sale within the meaning of clause 29 A of article 366 of the Constitution. That the activity rendered by the appellants was analysed by the Tribunal in the above stated Final Order wherein the Tribunal held that the activity is a deemed sale and does not fall under the category of Supply of Tangible Goods service. That, therefore the issue stands covered by the appellant s own case for the period after July, 2012 also. He prayed that the demand may be set aside. 4. The Ld. AR, Shri B. Balamurugan, AC, reiterated the findings in the impugned orders. 5. Heard both sides. 6.1 Undoubtedly, the activity on which the demand of service tax has been made in these appeals are analogous/identical to the activity which has been under scrutiny in the final order stated supra. The Tribunal after appreciating

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the category of supply of tangible goods service. The department contends that the theatre owners do not have any right of possession of the equipment and that the appellants have not transferred the right of possession. That since the appellant has retained certain rights and also put down conditions that the theatre owners shall ensure that the appliances connected to the VSAT remains switched on all times that is 24 hours a day in order to enable the appellant to have access to the QCP would amount to retaining the effective control over the equipment. In the decision of G.S. Lamba & Sons Vs. State of Andhra Pradesh (supra), the Hon‟ble High Court has summarized the meaning and transfer of possession as well as retaining effective control over machinery. The relevant portion of the decision is as under:- 30. From the judicial decisions, the settled essential requirement of a transaction for transfer of the right to use goods are : (i) it is not the transfer of the property

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r of goods, even if such licences or permits are in the name of owner (transferor) of the goods, and (vi) during the period of contract exclusive right to use goods along with permits, licences etc., vests in the lessee..‟ 8.3 Following the said decision, we are of the view that the activity carried out by the appellant, involving supply of tangible goods for use, since such supply also involves transfer of right of possession and effective control of such goods, the said activity would not fall under supply of tangible goods service. Moreover, the appellant has furnished documents which show that the said user fee collected is assessed under the VAT Act. The levy of VAT and service tax being mutually exclusive, the demand is not sustainable on this ground also. The demand raised and related penalties will therefore require to be set aside which we hereby do. 6.2. The appellant has been discharging VAT on the said activity holding that the transfer of right to use the equipment b

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on; or (22) declared service means any activity carried out by a person for another person for consideration and declared as such under section 66E; 65 B (51) taxable service means any service on which service tax is leviable under section 66B; 66 E Declared Services – The following shall constitute declared services, namely:- (f) transfer of goods by way of hiring, leasing, licensing or in any such manner without transfer of right to use such goods; The Tribunal having already analysed the nature of the activities in the appellant s own case for a previous period, we are of the considered opinion that the activity does not fall within the definition of service under the Finance Act, 1994 as amended in 2012. 8. In the result, impugned orders are set aside and the appeals are allowed with consequential reliefs, if any. ( Operative part of the Order pronounced in the open Court ) – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement –

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2018 (5) TMI 1030 – ALLAHABAD HIGH COURT – 2018 (14) G. S. T. L. 184 (All.) – Seizure of goods with vehicle – goods dispatched without E-way bill – petitioner has furnished the E-way bill before the respondent no.3 prior to the seizure proceedings and seizure order – Section 129(3) of the UPGST Act – Held that: – Once the E-way bill is produced and other documents clearly indicates that the goods are belongs to the registered dealer and the IGST has been charged there remains no justification in detaining and seizing the goods and asking the penalty – the seizure order dated 5.5.2018 as well as the consequential penalty order dated 5.5.2018 quashed – goods with vehicle to be released immediately – petition allowed – decided in favor of petitioner. – Writ Tax No. 763 of 2018 Dated:- 9-5-2018 – Hon'ble Krishna Murari And Hon'ble Ashok Kumar, JJ. For the Petitioner : Nishant Mishra For the Respondent : C.S.C. ORDER Heard Sri Nishant Mishra, learned counsel for the petitioner and

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No. UP 13 AT 1153 on 4.5.2018. It is an admitted case of the petitioner that though the E-way bill post 1.4.2018 was not clear and the notification issued under CGST/UPGST Act were silent with regard to requirement of E-way bill for inter-state transactions, the petitioner dispatched the goods without generating the E-way bill. While movement of the vehicle and when the vehicle crossed Yamuna Express Way it was intercepted by the respondent no.3 Assistant Commissioner, State Tax, Mobile Squad, Unit-II, Noida at 1.30 a.m. on 5.5.2018 solely on the ground that the goods were not accompanied with E-way bill. The respondent no.3 has proceeded for inspection/physical verification of the goods and for the same he has issued verification report in part-A and part-B on 5.5.2018 itself wherein no time has been mentioned. When the proprietor of the petitioner's firm has received the information about interception of the vehicle, he has immediately generated E-way bill on 5.5.2018 at 11.55 a.

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29(3) are completely without jurisdiction, arbitrary as such are nothing but clearly a misuse of power by the respondent no.3. Counsel for the petitioner has relied upon a recent decision of this Court in the case of Axpress Logistics India Pvt. Ltd. vs. Union of India and 3 others reported in 2018 NTN (Vol.66) 245. Learned counsel for the petitioner has submitted that the goods were intercepted at 1.30 a.m. on 5.5.2018 whereas the E-way bill was generated on the same day at 11.55 a.m. which was furnished before the respondent no.3 but reasons best known to the respondent no.3, a seizure order and consequential penalty order has been passed. Counsel for the petitioner has submitted that once E-way bill was generated after interception of the goods, but before seizure order is passed, then the goods cannot be seized as is held by this Court in the case of Axpress Logistics India Pvt. Ltd. (supra). Counsel for the petitioner has also relied upon the circular dated 13.4.2018 issued by the

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under Section 129(3). Both the aforesaid orders are passed on 5.5.2018 i.e. before the date which has been indicated in the interception memo being 6.5.2018. Learned counsel for the petitioner has submitted that since the petitioner has placed the E-way bill on 5.5.2018 itself the respondent no.3 has illegally proceeded to pass the impugned orders before any physical verification done. We find substance in the submission of the learned counsel for the petitioner. Once the E-way bill is produced and other documents clearly indicates that the goods are belongs to the registered dealer and the IGST has been charged there remains no justification in detaining and seizing the goods and asking the penalty. In view of the aforesaid facts, we quash the seizure order dated 5.5.2018 as well as the consequential penalty order dated 5.5.2018. We direct the respondent no.3 to immediately release the goods and vehicle in favour of the petitioner. The writ petition is allowed. – Case laws – Decisi

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GST – States – F.IV/Misc/HR/GST/27/2015-16/Part file/5239 -5245 – Dated:- 9-5-2018 – GOVERNMENT OF NATIONAL CAPITALTERRITORY OF DELHI DEPARTMENT OF TRADEAND TAXES (HUMAN RESOURCE BRANCH) VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002. ORDER F.NO. F.IV/Misc/HR/GST/27/2015-16/Part file/5239 -5245 Dated: 09.05.2018 Specification of Proper Officer under various provisions of DGST Act, 2017. In exercise of the power conferred upon me by sub-section (1) of section 5 read with clause (91) of section 2 o

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2018 (7) TMI 161 – CESTAT KOLKATA – TMI – CENVAT credit – inputs – cement, angles, TMT bars, etc – Held that:- The impugned order has relied upon the judgment of the Tribunal in the case of Vandana Global Ltd. [2010 (4) TMI 133 – CESTAT, NEW DELHI (LB)] in holding that the definition of ‘inputs’ does not include cement, angles, TMT bars, etc. However, this judgment of the Tribunal has been disapproved by the Hon’ble Calcutta High Court in the case of Surya Alloy Industries Ltd. v. Union of India [2014 (9) TMI 406 – CALCUTTA HIGH COURT] – credit cannot be denied.
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Further, the Chartered Engineer’s certificate reflects that the impugned goods were actually used during the manufacture of the final products – the usage of various iron and steel items is to be analysed in light of the decision of the Hon’ble Supreme Court in the case of Rajasthan Spinning & Weaving Mills Ltd. [2010 (7) TMI 12 – SUPREME COURT OF INDIA].
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Shortage of finished goods detected during the stock verific

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l reason for shortage and deposited the entire amount of duty of ₹ 82,906/-. The adjudicating authority confirmed demand of duty of ₹ 82,906/- alongwith interest and also imposed penalty of equal amount of duty. It has also disallowed Cenvat Credit of ₹ 3,89,093/- along with interest and imposed penalty of equal amount of Cenvat Credit on capital goods. The officers also found that the appellant had taken credit on MS Angle, joist, channel, beam, TMT bars, etc. considering them as capital goods. Accordingly, a Show Cause Notice dated 18.06.2007 was issued proposing demand of Central Excise Duty of ₹ 81,280/- along with interest and irregular availment of Cenvat Credit of ₹ 3,81,479/- with interest and to impose penalty. On appeal, the Commissioner (Appeals) upheld the adjudication order. Hence, the present appeal before the Tribunal. 2. Heard both sides and perused the appeal records. 3. The ld. Advocate for the appellant submitted that there was an extra

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STR 726 (Guj.). 4. The ld. AR for the Revenue reiterated the findings of the lower authorities. 5. I find that the impugned order has relied upon the judgment of the Tribunal in the case of Vandana Global Ltd. reported as 2010 (253) ELT 0440 Tri.-LB in holding that the definition of inputs does not include cement, angles, TMT bars, etc. However, this judgment of the Tribunal has been disapproved by the Hon ble Calcutta High Court in the case of Surya Alloy Industries Ltd. v. Union of India reported as 2014 (305) ELT 47 (Cal.). Therefore, credit on the impugned goods cannot be denied to the appellant. 6. Further, the Chartered Engineer s certificate reflects that the impugned goods were actually used during the manufacture of the final products. I find that the usage of various iron and steel items is to be analysed in light of the decision of the Hon ble Supreme Court in the case of Rajasthan Spinning & Weaving Mills Ltd. reported as 2010 (255) ELT 481 (SC). In this judgment, the

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2018 (7) TMI 1493 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (15) G. S. T. L. 423 (A. A. R. – GST) – Classification of goods – rate of GST – MIDEL eN 1204 – MIDEL eN 1275 – What is the correct Harmonized System of Nomenclature (HSN) code and the applicable GST rate for our products MIDEL eN 1204 (rapeseed oil based dielectric transformer fluid) and MIDEL eN 1275 (soya oil based dielectric transformer fluid) in terms of Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017?
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Held that:- The products are not vegetable fats and vegetable oils per se – The products do not remain mere vegetable fat or mere vegetable oil. The impugned products are a distinct product which is known in the market as a dielectric transformer fluid – The products also contain additives, the information about which has also not been shared with this Authority. But the manufacturing process of these ingredients and the addition of additives leads to a distinct product being formed.
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tion 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as "the CGST Act and MGST Act"] by M&I MATERIALS INDIA PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the applicability of GST on: What is the correct Harmonized System of Nomenclature (HSN) code and the applicable GST rate for our products MIDEL eN 1204 (rapeseed oil based dielectric transformer fluid) and MIDEL eN 1275 (soya oil based dielectric transformer fluid) in terms of Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of th

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usiness in India 2.4 Provide local first line support for any technical queries. 3. The details of the products for which the Advance Ruling is being sought is as follows: 3.1 MIDEL eN 1204 3.1.1 It is a vegetable oil based dielectric transformer fluid It is a chemically modified rapeseed oil based natural ester 3.1.2 It is used as electric insulator in transformers Its function is to provide electrical insulation, suppress corona and arcing, and to serve as a coolant. 3.1.3 We have classified MIDEL eN 1204 as per the Harmonized System of Nomenclature (HSN) code under the First Schedule of the Customs Tariff Act, 1975 (hereinafter referred to as "the Customs Tariff') under the entry 15180039 The relevant extract of the entry is reproduced hereunder for ease of reference: "1518.00 animal or vegetable fats and oils and their fractions , boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding

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y of various goods is notified vide Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017, as amended from time to time (hereinafter referred to as "the Notification"). 4.1 Under the Notification, the HSN code 1518 appears under "Schedule I – 2.5%" as well as "Schedule 2 – 6%". The relevant extract is reproduced hereunder for ease of reference: 4.2 S. No. Chapter / Heading / Sub-heading / Tariff item Description of goods Schedule I – 2.5% 90. 1518 Vegetable fats and oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516 [emphasis supplied] Schedule II – 6% 27. 1518 Animal fats and animal oils and their fractions, boded, oxidised, dehydrated, sulphurised, blown, polymerised by heal in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; inedible mixtures or preparations of animal or

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o. 90 of Schedule – 1 [applicable rate of Central Goods and Services Tax (CGST) – 2,5%]. To support our view, we would like to put forth our contentions, without prejudice to each other, as follows: 1. Specific entry should prevail over general entry 1.1 Chemically modified vegetable oils are more specifically covered under Entry at S No 90 of Schedule – I of the Notification. Hence, both our products viz, MIDEL eN 1204 and MIDEL eN 1215 should be classified under the said entry. 1.2 Further, explanations (iii) and (iv) to Notification No 1/2017-Central Tax (Rate) dated 28 June 2017, as amended from time to time, state as under "iii "Tariff item ", "sub-heading" "heading " and "Chapter'' shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). iv. The rules for the interpretation of the first Schedule to the Customs Tariff Act, 1975 (51 of 1975

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emphasis supplied) 1.4 The entry at S. No 27 of Schedule II – 6% is a general entry mainly referring to animal fats and oils while vegetable fats and oils are mentioned only cursorily. Further, it should be noted under the said entry only those vegetable fats or oils can be covered which are not specified elsewhere. 1.5 It is a well established principle of taxation jurisprudence for resolving classification disputes that a specific entry shall prevail over a general entry. In this regard, we would like to bring to your attention the judgement of the Hon'ble Supreme Court of India in the case of Western India Plywoods Ltd. versus Collector of Customs, Cochin [2005 (188) E.L.T 365 (S.C.)] (attached as Annexure I), wherein the question pertained to classification of "motor vibrator with actuator" under the Customs Tariff. In this case, the Hon'ble Supreme Court held that, " … it is well settled that the application of the residuary tariff entry must always be mad

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to both our products 2. Intention of the legislature 2 .1 It is pertinent to note that whereas under the Customs law, animal or vegetable fats and oils are part of the same entry i.e. 1518.00 (supra), under the GST regime a conscious decision has been made by the GST Council to split the said entry between vegetable fats and oils and animal fats and oil by including vegetable fats and oil under Schedule I of the Notification which provides for lower GST rate of 2.5%. 2.2 The Constitution Bench of the Hon'ble Supreme Court of India in Dattatraya Govind Mahajan versus State of Maharashtra [1977 AIR 915] (attached as Annexure 3) has held that, "…. ultimately it is the intention of the legislature which is paramount and mere use of a label cannot control or deflect such intention. It must be remembered that the legislature has different ways of expressing itself and in the last analysis the words used by the legislature alone are the true repository of the intent of the legisla

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for ease of reference: S. No. Chapter / Heading / Subheading / Tariff item Description of goods Schedule I – 2.5% 88. 1516 Vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidnised, whether or not refined, but not further prepared. " 3.3 Both our products being vegetable oil based esterified transformer fluids, we submit that they should fall within the ambit of the said entry and classified accordingly. 4. Beneficial rate under the Maharashtra Value Added Tax (MVAT) Act, 2002 4.1 Most of the customers of the Company to whom these products are supplied include government and non-government entities operating in the essential sector of electricity generation, transmission and distribution. 4.2 Under the erstwhile MVAT regime, Sec 8 (5) of the MVAT Act empowered the State Government for partial or full exemption from Value Added Tax (VAT) on sales made by a registered dealer, inter cilia, to entities involved in generat

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on is taken in this matter and also crave leave to produce documents / records / case law at the hearing granted to us." Additional submission dt.16.03.2018 We, M/s. SKP Business Consulting LLP, in our capacity as authorised representatives of M/s. M&I Materials India Private Limited (hereinafter referred to as "the Company" or "us" or "we") refer to the preliminary hearing held for admission / rejection of our advance ruling application on 7 March 2018 We thank you for admitting our application and granting us another opportunity to present our case During the course of the hearing, we were requested to submit certain additional information and documents in connection with our advance ruling application. Accordingly, without prejudice to the contentions raised by us in our previous submissions we would like to submit as under: 1. Principle of equivalence under GST 1.1 Under the erstwhile excise law, the tariff rate of excise duty applicable to it

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eration, transmission and distribution of electrical energy. 1.4 Given the above, it is evident that our products being supplied to an essential sector, the incidence of tax was kept at a minimum i.e. 5%, to avoid any undue tax burden on the ultimate customers of essential sector of electricity. 1.5 At this juncture we would like to reproduce the relevant extract from the minutes of the 3rd and the 4th GST Council meetings held on 18-19 October 2016 and 3-4 November 2016 respectively, wherein the principles for fixation of GST rates were debated upon: – 3rd GST Council meeting "37. The principles on the basis of which the proposed GST rate structure was worked out was elucidated and these included: (i) proposed rate slabs should be closest to the present combined tax incidence of 'Excise and VAT (including cascading): (ii) protecting existing revenues of Centre and States: (iii) impact on inflation i.e.. on items in the Consumer price Index (CPI) basket is minimal, (iv) propos

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d the proposal to have a four rate GST structure and the rates could be 6%, 12%, 18% and 26%. He explained that a slab of 6% was needed for such goods where VA T was being charged at 5% and Central Excise duty on the same goods was Nil. He stated that if such goods put in the 12% rate band, it would adversely affect the poorer sections of the society." [emphasis supplied] 1.6 Applying the principles emanating from the discussions and observations made by the GST Council it is incontrovertible that our products should be classified under the GST rate bracket which is closest to the combined rate of tax applicable under Central Excise and VAT – i.e. 5% 1.7 Therefore, we submit that the intention of the GST Council provides a compelling view that our products should be classifiable under Entry at S No. 90 of Schedule – I – 2.5% of the Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017, as amended from time to time. 1.8 Further, the Hon'ble Finance Minister Arun Jaitley

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ed under Entry at S. No. 90 of Schedule -I of the Notification No. 1/2017-Central Tax (Rate) dated 28 June 2017, as amended from time to time, i.e chargeable to GST at the rate of 5%. 2. Non-classification as 'mixtures' 2.1 The quantity of additives in our products viz. MIDEL eN 1204 and MIDEL eN 1215 is minimal i.e. 0.3% of the total weight of the product. Therefore, the said products cannot be considered as 'mixtures' covered under Entry at S. No. 27 of Schedule II – 6%. 2.2 In order to corroborate our explanation, a copy of test report by 'Electrical Research and Development Association' of our product MIDEL eN 1215 is attached herewith as "Annexure 6". 3. Further, as required, a flow chart exhibiting the transaction flow of the products has been attached herewith as "Annexure 7" We request your good self to take the above on record and oblige." 03. CONTENTION – AS PER THE CONCERNED OFFICER The submissions, as reproduced verbatim, cou

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be used as only dielectric fluid. The dealer is in his application admit that use of the product is transformer fluid, which means it is inedible and hence covered by Schedule II. Chapter heading 1518 and rate of tax applicable is 6%. 2) The above submission is made in the light of Notification No. 1/2017-State Tax(Rate) No. MGST-1017/C.R. 104/Taxation 1 dated 29/06/2017. Hon. Forum is humbly requested to admit the application for Advance Ruling and decide the issue as per above mentioned notification. " 04. HEARING The case was taken up for hearing on dt.07.03.2018 when Sh. Jigar Doshi, Sh. Shivendra Dwivedi, Sh. Harshal Fifadra, Sh. Prathamesh Shende along with Sh. Nitin Satija, Director and Country head attended and made oral submissions for admission of their application as per submission made in the Advance Ruling application. They were requested to provide copies of Bill of Entries of import of their products for last one year and it was also requested to provide exact cont

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the cost of repetition, let us have a look at the information about the products as provided by the applicant- MIDL eN1204 It is a vegetable oil based dielectric transformer fluid. it is chemically modified rapeseed oil based natural ester. It is used as electric insulator in transformers. Its function is to provide electrical insulation, suppress corona and arcing, and to serve as a coolant. The applicable Indian Standards (IS) of the Bureau of Indian Standards (BIS) under the Bureau of Indian Standards Act, 1986 is IS 16659:2017. MIDEL eN 1215 It is a vegetable oil based dielectric transformer fluid. It is a chemically modified soya based natural ester. It is used as electric insulator in transformers. Its function is to provide electrical insulation, suppress corona and arcing, and to serve as a coolant. The applicable Indian Standards (IS) of the Bureau of Indian Standards (BIS) under the Bureau of Indian Standards Act, 1986 is IS 16659:2017. The above information does not throw a

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tified uses of the substance or mixture and uses advised against Product Use: Dielectric fluid Uses advised against: None. 1.3 Details of the supplier of the substance or mixture Company: M&I Materials Ltd. Hibernia Way, Trafford Park, Manchester, M32 0ZD, UK. 1.1 Product Identifier Material Name: MIDEL eN 1215. 1.2 Relevant identified uses of the substance or mixture and uses advised against Product Use: Dielectric fluid Uses advised against: None 1.3 Details of the supplier of the substance or mixture Company: M&I Materials Ltd., Hibernia Way, Trafford Park, Manchester. M32 0ZD, UK 2. Hazards Identification This product is not classified as hazardous and this document has been compiled for information purposes, in accordance regulation 1907/EC/2006, Annex II, as amended by Regulation (EU) No. 453/2010 and OSHA hazard communication guidelines. 2.1 Classification of the substance or mixture Regulation (EC) No 1272/2008 (CLP) Not classified. 2.2 Label elements Regulation (EC) No

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68-3 Description: Blend of natural triglyceride esters (vegetable oil) Composition: Constituent CAS Number Contents Blend of natural triglyceride esters 68956-68-3 >98.5% Performance enhancing additives Proprietary<1.5% All constituents are listed on the TSCA inventory. Additives used in this product are a trade secret, but do not lead to classification of the substance as hazardous. 4. First Aid Measures 4,1 Description of first aid measures Inhalation: None envisaged due to the low vapour pressure of the substance Skin: Wash with soap and water. Obtain medical attention if irritation develops. Eyes: Irrigate with copious amounts of water. Obtain medical attention if irritation develops. Ingestion: Do not induce vomiting, obtain medical attention. 4 2 Most important symptoms and effects, both acute and delayed No adverse effects expected 4.3 Indication of any immediate medical attention and special treatment needed No special treatment required. 4.1 Description of first aid meas

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nd use(s) Exposure to air should be minimised. Opened containers should be properly resealed 8. Exposure Controls/ Personal Protection 8 1 Control parameters No relevant control parameters. 8 2 Exposure controls Eye washes should be available for emergency use Respiratory protection: None required. Skin protection: Wear coveralls Hand protection: Wash hands after use. For prolonged or repeated skin contact gloves are recommended Eye protection If splashes are likely to occur wear safety glasses. 8.1 Control parameters No relevant control parameters. 8 2 Exposure controls Eye washes should be available for emergency use. Respiratory protection: None required. Skin protection: Wear coveralls. Hand protection: Wash hands after use. For prolonged or repeated skin contact gloves are recommended. Eye protection: If splashes are likely to occur wear safety glasses. 11. Toxicological Information 11.1 Information on toxicological effects Likely routes of exposure: Skin and eyes are the most lik

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oil based and as such non-toxic. Acute oral toxicity: Considered to be low toxicity, vegetable oil. Acute dermal toxicity: Considered to be low toxicity. Acute inhalation toxicity: Low volatility makes inhalation unlikely Skin corrosion/irritation: Considered to be not irritating Eye corrosion/irritation Considered to be not irritating. Respiratory or skin sensitisation: Considered to be not sensitising Aspiration hazard: Not considered an aspiration hazard Carcinogenicity/mutagenicity: Not considered a mutagenic hazard or carcinogen. This product is not considered to be a carcinogen by IARC, ACGIH, NTP or OSHA. What we can gather from the above is thus : Composition/lnformation on Ingredients Constituent CAS Number Contents MIDEL eN 1204 (rapeseed oil based dielectric transformer fluid) Blend of natural triglyceride esters 68956-68-3 >98.5% Performance enhancing additives Proprietary <15% MIDEL eN 1204 (soya based dielectric transformer fluid) Blend of natural triglyceride ester

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weight of the product. Therefore, the said products cannot be considered as 'mixtures'. Having seen thus, we look at the contention with regard to the applicability of the schedule entries thus – If it is assumed that either or our products cannot be classified under entry at S. No. 90 of Schedule I – 2.5%, we would like to submit that, entry at S. No. 88 of Schedule I – 2.5% also provides an appropriate description of our products, and that in no case the said products can be classified under the general entry at S. No. 27 of Schedule II – 6%. We shall look at each of the above entries as found in the Notification No. 1/2017-Central / State Tax (Rate) [as amended from time to time] thus – S. No. Chapter / Heading/ Subheading / Tariff item Description of Goods Rate [CGST + MGST] 88 1516 Vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinised, whether or not refined, but not further prepared. 5% [2.5 +2.5] 90 151

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uid. 3. The applicant has argued that the products cannot be considered as 'mixtures'. However, we find a reference to the products being a 'substance' or 'mixture' in the Safety Data Sheet of these products as can be seen thus – 1.3 Details of the supplier of the substance or mixture 4. No information about the manufacturing process has been given. Neither any information has been shared as to the ingredients contained in the products. The products also contain additives, the information about which has also not been shared with this Authority. But we see that the manufacturing process of these ingredients and the addition of additives leads to a distinct product being formed. The ingredients or additives are added so as to formulate a certain product which could be used as a transformer fluid. So the processes are intended to manufacture a new commodity in which rapeseed oil or soya would be the prime ingredient. Owing to this, the products are described as &q

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parations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, not elsewhere specified or included : Lin seed oil: 1518 00 11 Edible grade 151800 19 Other Castor oil, dehydrated: 1518 0021 Edible grade 1518 00 29 Other Other Vegetable oil and its fats: 1518 00 31 Edible grade 1518 00 39 Other 151800 40 Other From the Tariff Heading 1518 as reproduced above, we see that – a. There are 2 parts to Tariff Heading 1518 thus – • Part 1 – Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurised, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading 1516; • Part 2 – Inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, not elsewhere specified or included: B. Of the Tariff Heading 1518, schedule entry 90 covers portion relating to vegetable fats and oils and the

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s and their fractions should retain their original fundamental structure. e. The part 1 (as reproduced above) of Heading 1518 speaks of certain processes which have been subjected to vegetable and animal oils. But the HSN Notes say that despite undergoing these processes, the vegetable or animal oils should retain their original fundamental structure. In the present case, we have a final product which is a transformer fluid. Though the Test Report shows the percentage of the natural triglyceride esters to be at 98.5%, it would not mean that a new commodity has not been produced. There are data and international standards galore for mineral oils, there are as yet no IEC standards addressing the composition or testing of the natural ester oils with their different chemical composition. Each manufacturer has his own set of ingredients to obtain a transformer fluid. That is precisely the reason that the applicant has not preferred to divulge the details. Thus, by addition of the needful ad

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to part 2 (as reproduced above) of Heading 1518. This part covers inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of the Chapter 15. The present products, as discussed above, are a preparation from natural triglyceride esters. They are based or derived from "rapeseed oil based" or "soya based". In addition, the products are inedible. And even though the applicant disputes about the products being a 'mixture', there being a combination of ingredients and additives, the impugned products could be classified as an 'inedible preparation'. Therefore, they could very well be covered by the description "inedible preparations of vegetable oils'. Now the aspect which remains to be seen is "not elsewhere specified or included". We have not found any specific description which covers a "dielectric transformer fluid". To that extent, it is prima facie felt that the descr

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hapter 15 of the Customs Tariff Heading/GST Tariff. 6. We are not in doubts that entry 88 and 90 of Schedule I of the Notification No. 1/2017-Central / State Tax (Rate) would not cover the impugned products. We are also convinced that the impugned products are not covered by any entry of the Schedule in the Notification No. 2/2017- Central / State Tax (Rate) for goods exempted from GST. It is only the question of entry 90 or any other entry of the Notification No. 1/2017- Central / State Tax (Rate) which would cover the impugned products. 7. We have gone through the case laws and arguments relied upon by the applicant. However, we find that they do not apply to the facts that we are faced with. Since we have formed an opinion on the facts at hand, we would not enter into any discussing or differentiating the case laws. 06. In view of the deliberations as held hereinabove, we pass an order as follows: ORDER (under section 98 of the Central Goods and Services Tax Act, 2017 and the Mahara

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2018 (12) TMI 714 – CESTAT KOLKATA – TMI – CENVAT Credit – contravention to the provisions of Rule 3 (5A) of the Cenvat Credit Rules, 2004 – it was alleged that assesses have not paid Central Excise duty on the clearance of used and rejected machinery/machinery spare/equipment – Held that:- Rule 3(5A) of Cenvat Credit Rules, 2004, prescribes that “if the capital goods are cleared as waste and scrap, the manufacturer shall pay an amount equal to the duty leviable on the transaction value” – the appellant all along stated that waste and scrap generated from the capital goods were brought into the factory much before 01.04.1994, when where was no provisions for availing credit on the capital goods.
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It is the case of the appellant that s

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l classifiable under Chapters 72 and 73, among others, of the Central Excise Tariff Act, 1985. Show-cause notice dated 07.05.2014 was issued for the period 2009-2010 alleging that the assesses have not paid Central Excise duty on the clearance of used and rejected machinery/machinery spare/equipment in contravention to the provisions of Rule 3 (5A) of the Cenvat Credit Rules, 2004. The Adjudicating Authority confirmed the demand of ₹ 2,31,875/- along with interest and imposed equal amount of penalty under Section 11AC of the Central Excise Act, 1944. On appeal, the ld.Commissioner (Appeals) dismissed the appeal filed by the assessee. Hence, the present appeal before the Tribunal. 3. Heard both sides and perused the appeal records. 4.

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2018 (12) TMI 727 – CESTAT KOLKATA – TMI – CENVAT Credit – credit to be availed after payment of amount under Rule 4(7) – extended period of limitation – absence of allegation of suppression of facts – Held that:- Rule 4(7) of the Cenvat Credit Rules, 2004, states that “the Cenvat Credit in respect of input service shall be allowed, on or after the day that which payment is made of the value of input service and the service tax paid or payable as is indicated in invoice, bill or, as the case may be, challan referred to in Rule 9.”
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Rule 6(2A) of the Service Tax Rules, 1994 specifies that the date of payment in case of service tax shall be the date of presentation of cheque subject to realization of cheque – it is also found from the records that none of the cheque issued by the appellant were dishonored.
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Appeal allowed – decided in favor of appellant. – S.T. Appeal No.75423/18 – FO/76543/2018 – Dated:- 9-5-2018 – SHRI P. K. CHOUDHARY, JUDICIAL MEMBER Shri Sushil Kr. Goyal,

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mits that the appellant has maintained proper records in respect of all the receipts and consumption of input services under Rule 9 (6) of the Cenvat Credit Rules, 2004 as amended. It is his submission that the complete facts and figures were duly disclosed in the ST-3 Returns and proper records as required were being maintained by the appellant and therefore, there cannot be any allegation of suppression against the appellant and the extended period of limitation of five years is not invokable. The ld.C.A.for the appellant also submits that the demand is barred by limitation. 4. The ld.A.R. for the Revenue, reiterated the findings of the lower authorities. 5. Heard both sides and perused the appeal records. 6. On perusal of records, I find that Rule 4 (7) of the Cenvat Credit Rules, 2004, states that the Cenvat Credit in respect of input service shall be allowed, on or after the day that which payment is made of the value of input service and the service tax paid or payable as is indi

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that the issue is covered by the decision of the Co-ordinate Bench of the Tribunal in the case of India Cement Limited Vs. Commr. of Central Excise, Hyderabad : 2002 (150) ELT 1344. In this regard, the relevant Para is reproduced below: 8. We have carefully considered the submissions made by both sides. In the instant case, the penalties have been imposed on the appellants on the ground that there is a gap of few days between the date of presentation of cheque to their banker and the date of actual realisation of the amount by the Revenue. As can be seen that there is no dispute that the cheques presented by the appellants were subsequently encashed by the Revenue and no cheque was dishonoured and accordingly the date of presentation of the cheque has to be taken as the relevant date for the purpose of taking credit. Precisely this was the view taken by the Tribunal in the cases referred to above. Further more, the Commissioner himself has given a categorical finding that there was no

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2018 (5) TMI 1805 – CESTAT HYDERABAD – TMI – Refund of duty paid – export of goods – rejection of refund on the ground of time limitation – Section 11B of the Central Excise Act, 1944 – Held that:- The First Appellate Authority should be give an opportunity to reconsider the issue afresh. Accordingly, impugned order is set aside and the matter is remanded back to the Adjudicating Authority to reconsider the issue afresh after following the principles of natural justice – appeal allowed by way of remand. – Appeal No. E/31214/2017 – A/30583/2018 – Dated:- 9-5-2018 – Mr. M.V. RAVINDRAN, MEMBER (JUDICIAL) Shri N Ram Reddy, Advocate for the Appellant. Shri P. S. Reddy, Assistant Commissioner (AR) for the Respondent. ORDER Per: M.V. Ravindran Th

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them on the ground that initially they had debited the amount from CENVAT account. Both the lower authorities have rejected the refund claim only on the ground that it is hit by limitation as per the provisions of Section 11B of the Central Excise Act, 1944. 4. Learned Counsel brings to my notice in an identical issue, the First Appellate Authority by Order-in-Appeal dated 28.03.2018 had taken a diagonally opposite view and allowed the refund claim filed by the appellant. On perusal of the impugned order in appeal (dated 25.09.2017) and the order produced by the Learned Counsel dated 28.03.2018 I do find it so. 5. In my view, the First Appellate Authority should be give an opportunity to reconsider the issue afresh. Accordingly, impugned o

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Goods and Services Tax – Started By: – Kishore Padav – Dated:- 8-5-2018 Last Replied Date:- 9-5-2018 – Our Company had sold an equipment to a customer (A) in May 2017 @ ₹ 20 lakhs (incl. CST). The customer (A) has paid us only ₹ 7 lakhs till date.He has expressed his inability to pay the balance ₹ 13 Lakhs and has asked the company to take back his machine or help him sell his machine. Now we have found a customer (B) who has agreed to purchase the machine @Rs.13 Lakhs from hi

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Goods and Services Tax – Started By: – JAY SHAH – Dated:- 8-5-2018 Last Replied Date:- 9-5-2018 – HelloWe have a partnership firm and registered as composition dealer under GST regime. now i want to convert the same to proprietorship by retiring one partner and other one continue in same business under same banner. is there any tax liability arise on closing stock? in proprietorship also i want to continue under composition dealer. – Reply By kollengode venkitaraman – The Reply = WHEN THE BUSINESS OF THE PARTNERSHIP IS TAKEN OVER BY ONE PATNER AS A PROPRIETORSHIP, IT WILL BE EXEMPT TAKING OVER A BUSINESS AS A WHOLE IS EXEMPTED UNDER GST – Reply By DR.MARIAPPAN GOVINDARAJAN – The Reply = In my view you cannot continue under erstwhile compos

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t we are composition dealer. If we pay GST on closing stock in partnership firm for transfer of stock to proprietorship then we are going to pay two time GST. One at the time of transfer to proprietorship and again we have to pay gst in proprietorship on final sale. – Reply By KASTURI SETHI – The Reply = Dear Querist, There is no doubt that afresh registration is required as rightly advised by Dr.Govindarajan, Sir.. When you apply for a new registration, you are to decide whether to opt for composition dealer or not. New registration, afresh option is required. It is natural that a composition dealer cannot avail ITC Actually, no-provision of ITC as composition dealer is a hurdle for you. Otherwise there would have been no problem as rightl

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 8-5-2018 – Implementation of e-way bill The implementation of e-way bill has caused more delay because of the improvements to be done in the portal system. The Central Government has announced that the e-way bill system would be applicable for the inter-State transactions with effect from 01.02.2018 and the States would implement the e-way bill system for intra-State transactions by 1st June, 2018. Because of the glitches in the system, the Central Government postponed the implementation date and finally it has been implemented with effect from 01.04.2018. The States are advised to implement the same before 1st June, 2018. E-way bill operations are now available for the following States- E-way bill operations are compulsory for intra-state movement of goods for Andhra Pradesh, Gujarat, Kerala, Telangana and Uttar Pradesh from 15th April 2018; E-way bill operationsare compulsory for intra-state movement of goods for Bih

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there was some problem in downloading the E-way Bill. The High Court directed to release the vehicles and goods subject to deposit of bank guarantee, equal to the value of the tax on goods. In Abicor and Binzel Technoweld Pvt. Ltd. Versus The Union of India and Another – 2018 (2) TMI 766 – BOMBAY HIGH COURT, the petitioner says that the Electronic Way Bills Rules have yet to come into force. Therefore, without access to the online profile, the petitioner cannot generate E-way bills. Without such E-way bills, the petitioner will not be allowed to move the goods anywhere and that will paralyze its business. Lack of access would mean that the petitioner is unable to file return or pay tax or undertake any other compliance required by the statute. The High Court held that the special sessions of Parliament or special or extraordinary meetings of Council would mean nothing to the assessees unless they obtain easy access to the website and portals. The regime is not tax friendly. The High C

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dication provided for under section 129 after affording the petitioner an opportunity of hearing, within a week from the date of receipt of the order. Seizure before effective date In Modern Traders V. State of UP – 2018 (4) TMI 1076 – ALLAHABAD HIGH COURT (decided on 03.04.2018) the goods were transported from Bhulandshahr to Delhi. There was no e-way bill during the movement of goods, while the vehicle was crossing Ghaziabad. The vehicle was intercepted and detained at Ghaziabad by the Assistant Commissioner, Mobile Squad on 24.03.2018. The vehicle was seized on the ground that there was no e-way bill. A show cause notice dated 28.03.2018 was issued under section 129(3) of the Act, The petitioner was directed to appear on 04.04.2018 and explain as to why the tax @ 18% and equivalent amount of penalty may not be imposed. The petitioner, therefore, approached the High Court invoking writ jurisdiction. The petitioner, in this writ petition contended that- There is no requirement to carr

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s in the present case the transaction is much before the aforesaid date. The High Court directed respondent No. 3 to release the goods and vehicle. In M/s Bhumika Enterprises V. State of U.P. And 3 Others – 2018 (4) TMI 530 – ALLAHABAD HIGH COURT, from perusal of the record the High Court have noticed that the vehicle has been detained and the goods/vehicle was seized by the respondent no.4 on 27.3.2018 whereas the time has been granted for submission of reply and appearance of the person concerned before the respondent no.4 on the later date. There is no dispute with regard to quality and quantity of the goods and further that the invoice issued clearly indicates of charge of C.G.S.T. and S.G.S.T by the petitioner. The High Court further noticed that there is no dispute with regard to registration of the seller (the petitioner) and the purchaser as also that the goods were being transported from Varanasi to Fatehpur which are detained in between the aforesaid two places. The High Cour

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d seizure order nor the details of the mobile number holder. Since the tax invoice indicating the tax charged and the same admittedly found during the course of inspection/detention and E-way bill-02 has been downloaded much before the seizure order, the High Court saw no justification in the impugned seizure order and therefore, the High Court have no option but to allow the present writ petition and to set aside the seizure order dated 27.3.2018 as well as the show cause notice issued under Section 129(3) of the Act for imposition of penalty. Justification for seizure In Surendra Steel Supply Company Versus State of U.P. And Another – 2018 (5) TMI 526 – ALLAHABAD HIGH COURT, (decided on 11.04.2018) the vehicle carrying the goods was intercepted at Kanpur on 01.04.2018 at about 9-30 a.m. by respondent no. 2 and interception/detention memo was issued on the ground that since the E-Way Bill No.01 is not available as such the physical verification of the goods loaded is to be made and fi

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e as the Central Government has suspended the requirement of E-Way Bill No.01 on 01.02.2018. The Revenue has not been able to justify the impugned order in the facts and circumstances of the case. The High Court required respondent no.2-Assistant Commissioner, Commercial Tax, Mobile Squad-XI, Kanpur, U.P. to appear before the Court day after tomorrow (13.04.2018) to explain as to under which authority of law he intercepted the vehicle and passed the seizure order despite E-Way Bill No.01 was generated and produced. Non mentioning of vehicle number In VSL Alloys (India) Pvt. Ltd. Versus State Of U.P. And Another – 2018 (5) TMI 455 – ALLAHABAD HIGH COURT, (decided on 13.04.2018) the detention was made on the ground that Part-B of e-way bill was incomplete. The contention of the petitioner before the authority below was that there was no intention on the part of the petitioner to evade payment of tax during the course of intra-state sale of the goods. The High Court Held that no ill inten

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Goods and Services Tax – Started By: – Kusalava InternationalLimited – Dated:- 8-5-2018 Last Replied Date:- 22-6-2018 – we are mfg co and provide transportation facility to employee from home to factory and factory to home for that we have purchased bus and given to one person(Unregistered Person) to run bus.For that we are paying every month bill to him.(including Diesel,Driver Salaries and his commission)1.What is the rate of GST to be charged on Bill if he is registered?Please refer SAC Code.2.Can we claim ITC on that bill? – Reply By Praveen Nair – The Reply = SAC – 9964 @18%. As per section 17(5) of the CGST Act input tax credit shall not be available in respect of motor vehicles and other conveyances except when they are used for making the following taxable supplies; Further supply of such vehicles or conveyances. Transportation of passengers. Imparting training on driving, flying, navigating such vehicles or conveyances. For transportation of goods. Transportation of passenger

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same fixed point. This service cannot be classified in the nature of personal consumption either as the activity is related to business only. Further this transportation service cannot be classified under rent-a-cab service. As such, I feel, GST input tax credit is available in this case. would invite experts counter opinion on this. – Reply By Alkesh Jani – The Reply = Sir, For ready reference please allow me to reproduce relevant portion of Section 17(5) of CGST, Act, 2017. (5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:- (a) motor vehicles and other conveyances except when they are used- (I)for making the following taxable supplies, namely:- (A) further supply of such vehicles or conveyances ; or (B) transportation of passengers; or….. For better understanding meaning of cab is important and meaning was assigned in the erstwhile Finance Act (

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1988, are covered under Rent-a-cab service. Based on above, I am of the view that ITC is not available in the instant case. Our experts may correct me if mistaken. Thanks – Reply By KASTURI SETHI – The Reply = Sh.Alkesh Jani Ji, Top most reply. Crystal clear interpretation. – Reply By JSW CEMENTLIMITED – The Reply = Sh Alkesh Janiji, appreciate your analysis. But, still I am of the same view that credit of service provided by using the company's bus is available to a manufacturer on the following ground. In the absence of definition of cab in GST Act, you have to refer the definition given other existing law in force viz; motor vehicle Act only and not repealed law (i.e.section 65(20) of Finance Act which was in in force till 30.06.2012). During Service tax regime, credit on transportation of employees were not available and department has issued a no. of SCNs but in GST transportation of employee would be covered under input tax credit eligibility norm for the reason that bus is

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in which the driver sits . Now rent-a-cab means renting of the space which controls the motor vehicle. The bus falls as motor vehicle having capacity of carrying more than 12 passengers and falls with the ambit of Rent-a-cab service. Repeating that an employee cannot be termed as passenger . If I accept your contention that bus is not a cab then too it is covered under Section 17(5)(a)(i)(B) of CGST Act, 2017, ITC with regards to motor vehicle except for transportation of passenger, is not available. Let me thank Sh. Kasturiji,Sir for expressing their views. Our experts may correct me if mistaken. Thanks – Reply By JSW CEMENTLIMITED – The Reply = Sir,Here the queriest is not asking for eligibility of ITC on Bus, but his query is with regard to services availed for transportation of employees. ITC on buses purchased for the purpose of transportation is not available but services provided by using the buses for transportation of employees are available. The meaning provided in Cambridge

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ility extended to the employee by the employer, this service is not obligatory for an employer to provide to its employee under any law for the time being in force. However, as there are various decision in the erstwhile law allowing the Credit as input service but that depends upon the facts and circumstances of the case. Further, it is onus on the assessee to prove the nexus.Request for comments.Thanks – Reply By JSW CEMENTLIMITED – The Reply = SirPresently, most of the companies are located in remote areas away from the city, and almost all the companies are providing pick and drop facilities to its staff and sub-staffs for the reason that they reach office and plant in time so that production is not hampered. This facility may be seen as a facility given to employee for the benefit of business only. Unless there is business requirement companies will not extend this facilities. Let's talk about a BPO where can facilities are given to its employees due to time constraint, is it

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g. However, there is a slim chance on the ground of challenging the definition of 'passenger' in this context. – Reply By JSW CEMENTLIMITED – The Reply = Kasturi sirI respect your interpretation and experience also. Still I am not convinced as to why we are comparing employees with passenger, employer employee relationship and all. The service is not falling under rent a cab service where eligibility is restricted except it is performed under as an obligation under some law, it can not be said to be a welfare facility, it is used for furtherance of business, it helps people to reach workplace in time attend to their duty timely,. Directly or indirectly it has a bearing on the manufacturing business, still all the experts are negative towards eligibility. – Reply By Alkesh Jani – The Reply = Sir, I agree that by way of discussion we may reach to some good conclusion. My participation here is to meet the new horizon. Now coming to the point, the facility extended to employee is d

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The grounds of notice, orders and appeal and person representing the case is important and than too the decisions may not be expected or favorable. The case law, as on now, have not attained its finality, I may agree with the contention in future. Please offer your comments and correct me if mistaken. Thanks, – Reply By Anubhav Bansal – The Reply = Deal All,I went through entire discussion in this thread which mainly is on eligibility of ITC in this case of services.Now, I seek experts opinion on what will be the GST treatment of this service in hands of the Company when they are giving this service to employees i.e. will it be consider as supply in terms of the provision of CGST act and will company have to discharge GST liability in case:-1. When the company is recovering partial amount towards this service cost from the employees.2. When the company is giving this service free of cost.This question is in light to the AAR, Kerala ruling in case of M/S Caltech Polymers Pvt. Ltd., Mala

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usal: ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION 1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets. 2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both. Further, as per the explanation to section 15, for the purposes of CGST Act:- (a) persons shall be deemed to be related persons if – (i) ………..; (ii) ……..; (iii) such persons are employer and employee; Conjoint reading of this 2 provisions of the act make this service as taxable even when an employer is giving it for free of cost. Please let me know your thoughts on the matter and how do you take it? Regards, Anubhav Bansal – Reply By JSW CEMENTLIMITED –

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ng a gift. Another issue is the taxation of perquisites. It is pertinent to point out here that the services by an employee to the employer in the course of or in relation to his employment is outside the scope of GST (neither supply of goods or supply of services). It follows therefrom that supply by the employer to the employee in terms of contractual agreement entered into between the employer and the employee, will not be subjected to GST. Further, the input tax credit (ITC) scheme under GST does not allow ITC of membership of a club, health and fitness centre [section 17 (5) (b) (ii)]. It follows, therefore, that if such services are provided free of charge to all the employees by the employer then the same will not be subjected to GST, provided appropriate GST was paid when procured by the employer. The same would hold true for free housing to the employees, when the same is provided in terms of the contract between the employer and employee and is part and parcel of the cost-to-

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mehow save the commission cost being paid by the manufacturing company to the person. – Reply By HIREGANGE& ASSOCIATES – The Reply = My views are as below: a): 17 (5) (a) not applicable as it blocks credit on supply of motor vehicles when supplied as such but not on the services provided by using such motor vehicle. Accordingly, no need of considering definition of passenger/employee etc. b) Restriction in 17 (5) (iii) is on the rent a cab not renting of motor vehicle. Erstwhile Cenvat Credit Rules excluded from the definition of input services services provided by way of renting of a motor vehicle . If the intention of law makers under GST was to disallow credit on buses, they could have used similar language. (i.e. motor vehicle instead of rent a cab) c) Cab is defined separately from Motor Vehicle under Motor Vehicle Act which includes vehicle having passenger capacity upto 12 passengers. Thus it is one of the type of motor vehicle but it cannot be said that all cab includes all nat

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allowed as gradually credits would become more seamless in future. – Reply By YAGAY and SUN – The Reply = Get it clarified from the Law Makers as there are certain words on which no definition is provided in the GST Law. – Reply By Anubhav Bansal – The Reply = Dear Venkat Ramanji,Thanks for sharing the extract of those advertisement. After reading it, I am of the opinion that your conclusion basically is relied upon following extracts of the advertisment it follows therefrom that supply by the employer to the employee in terms of contractual agreement entered into between the employer and the employee, will not be subjected to GST. If this be the case then even the partial recovery form the employee can be said to be a contractual agreement between employer and employee. Then why should this partial recovery from the employees is liable for GST in hands of employer? Reference to the ruling of AAR Kerala bench.Regards,Anubhav Bansal – Reply By JAIPRAKASH RUIA – The Reply = Very happy t

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ansportation of goods; Based on above, it is clear that law has very specifically conveyed that ITC is available ONLY for taxable supply i.e. (i) further supply of such vehicles, (ii) for transportation of passengers or goods and (iii) imparting training. In my point of view drop and pick up of employee does not fall within this namely services. Moreover, supplies to employer to employee has specifically mentioned in Section and schedules, wherever, benefit is to be granted. So only those supplies including gifts, where specifically mentioned is available to employer. So, I am of the view that ITC is not available. Thanks – Reply By Anil Sood – The Reply = Friends let us have a look at the Apportionment & blocked credit:- 17. (1) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his busin

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i) rent-a-cab, life insurance and health insurance except where- (A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or (B) such inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as part of a taxable composite or mixed supply; and (ii) travel benefits extended to employees on vacation such as leave or home travel concession; Now, if we look at the definition, the credit of motor vehicle is inadmissible except in the case of buses owned by the Employer because the buses are not engaged for providing services of transportation of passengers. However, if the Employer hires buses from outside and makes payment to the owner of the buses towards transportation of employees, the Input tax credit, in my view is admissible because without transportation of employ

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Goods and Services Tax – Rate of GST – supply of food on board the trains – it is not possible to classify the whole contract as supply of services – The supply of goods i.e. food, bottled water etc.

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Goods and Services Tax – Supply of newspaper on board the trains – The supply of newspaper is separately invoiced and hence it shall be at Nil” GST under S. No. 120 of Notification No. 2/2017 – AAR – TMI Updates – Highlights

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Goods and Services Tax – Before AAR, the following question was raised: I would like to know if there is a combination of different materials and about 75% (value terms) is getting used of any one Raw

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Goods and Services Tax – Classification – TROPHY – even though the word TROPHY is specifically mentioned under 83062920, all trophies made of any material cannot be classified under this HSN and are t

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Goods and Services Tax – Started By: – nandankumar roy – Dated:- 8-5-2018 Last Replied Date:- 8-5-2018 – DEAR SIR,SUPPLIER OR CREDITORS ISSUED CREDIT NOTE AGAINST RATE DIFFERENCE THAT IS SHOWING IN GSTR2 CAN WE WE TAKE THIS AMOUNT IN OUR GSTR1 BY TREAT AS DEBIT NOTE OR WHETHER CREDITORS REFLECTED ITC AMOUNT ONLY TO BE REVERSE IN 3B RETURN TILL HAVE TO WAIT SUBMISSION OF GSTR2 IN FUTURE.WITH REGARDS,N K ROY – Reply By Praveen Nair – The Reply = Dear Mr. Roy GSTR1 returns are to be filed against

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Goods and Services Tax – Classification of books – Work Books or Exercise Book – Sulekh Sarita – presence of printed text does not affect their classification under heading 48.20 as exercise books – F

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2018 (5) TMI 687 – CESTAT NEW DELHI – TMI – Mis-declaration of imported goods – allegation in the present case is that the appellant has declared the imported goods as ‘Alloy Steel Melting Scrap’. But amidst the declared melting scrap, the examination by Customs Officers revealed that ‘Grinding Media Balls’ were found which were new and unused – Held that: – for purposes of assessment of imported goods, the examination of goods at the port in India is more relevant. Hence, we are inclined to give more credence to the opinion of the experts obtained locally. The three experts commissioned by Customs has unanimously opined that the impugned goods were new ‘Grinding Media Balls’. Sh. I.P.S. Arora, Chartered Engineer who has originally given a contrary opinion, has during cross-examination, retracted his original view.
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The order passed by the lower authority, who has gone by the majority of the opinions, merits no interference.
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Appeal dismissed – decided against appellant. – C

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cation as grinding media balls under Customs Tariff item 73259100/ 7326 1100 which attracted the higher rate of duty. 3. The Customs Department proceeded to investigate a case of alleged mis-declaration. Three samples were drawn of the goods said to be Grinding Media Bills and the opinion of following experts were taken by Customs. (i) Sh. P. C. Sanghi, Chartered Engineer (ii) Sh. Virendra Kumar Gupta, Production Manager M/s Vaibhav Meta Cast Pvt. Ltd., (iii) Sh. B. K. Sharma, Associate General Manager M/s Hindustan Zinc Limited The experts opined that the samples were of Grinding Media Balls – new and unused. 4. Examination of the samples by Chemical Examiner, CRCL, Government of India resulted in the opinion that the fact whether such goods were used or not cannot be ascertained by chemical test. Sample of the goods sent to National Test House, Government of India begot the opinion that the grinding balls imported were not as per IS Standard in terms of hardness and chemical composit

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ue was remanded to the Commissioner (Appeals) for denovo decision after allowing the cross examination of the experts on whose reports Revenue was relying. The present impugned order was passed by the Commissioner (Appeals) in the denovo proceedings in which the Order-in-Original was restored. Aggrieved by the impugned order, the present appeals have been filed. 8. With the above background, we heard Ms. Nupur Maheshwari, ld. Advocate for the appellant and Sh. Rakesh Kumar, ld. AR representing Revenue. 9. The arguments advanced on behalf of the appellant are summarised below: (i) The imported consignment was accompanied by Pre- Inspection Report by an agency at the port of origin in which it stands certified that the imported goods are alloy steel melting scrap. Since the inspecting agency is approved by the DGFT, such certificate is to be accepted. (ii) The report issued by the CRCL has stated that the fact whether the imported goods were new or old cannot be ascertained by chemical a

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at the instance of the appellant has also retracted his original statement and his cross-examination has confirmed that the samples were new and unused grinding balls. 11. Ld. AR further argued that the new grinding balls were cancealed within the consignment of melting scrap. This evidently substantiates the charge of mis-declaration. Further, keeping in view of the fact that the importer is also engaged in the manufacture of grinding balls, he argued that the impugned goods were new and meant to be sold in India. 12. We have heard both sides at length and carefully gone through the appeal record. 13. The allegation in the present case is that the appellant has declared the imported goods as Alloy Steel Melting Scrap . But amidst the declared melting scrap, the examination by Customs Officers revealed that Grinding Media Balls were found which were new and unused. Such balls can also be considered as scrap only if they were new and old. 14. The proceedings before the lower authorities

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nt. Hence, we are inclined to give more credence to the opinion of the experts obtained locally. The three experts commissioned by Customs has unanimously opined that the impugned goods were new Grinding Media Balls . Sh. I.P.S. Arora, Chartered Engineer who has originally given a contrary opinion, has during cross-examination, retracted his original view. In the above scenario, we are of the view that the order passed by the lower authority, who has gone by the majority of the opinions, merits no interference. His views are quoted below with our approval. In light of the facts as mentioned above available on records as discussed in point no. (A) to (H) above I find that for classifying the goods under above heading there is no precondition of fulfilment of condition of specification as per IS standard. As well as in all the report of experts, every expert including National Test House, CRCL, independent expert, chartered engineer have accepted that goods in questions are Grinding Medi

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ndition of IS specification, end use of the goods etc. In the panchnama dated 20.11.2013 it is also described that old and used grinding media balls which cannot be used as Grinding Media Balls already not included in the quality of seized goods. I therefore, uphold the findings of the Adjudicating Authority regarding classification of goods in question. 12. The appellant has declared the goods in their documents submitted to the department at the time of importation classified the same as Alloy Melting Scrap falling under Chapter 72042990 of the Customs Tariff Act, 1962. As discussed in the previous para it is clear that the classification of the goods i.e. Grinding Media Balls 53.240 MT falling under Chapter 7325 of the Customs Tariff Act, 1962 as determined by the department after investigation of the case. Therefore, after investigation, the fact of the mis-declaration of classification of goods in question was detected. Once, the mis-declaration of classification of goods was sust

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2018 (5) TMI 762 – ALLAHABAD HIGH COURT – 2018 (14) G. S. T. L. 3 (All.) , [2018] 59 G S.T.R. 206 (All) – Entitlement of the assessee to collect Entertainment tax event after implementation of GST to claim benefit of exemption – retention of tax so as to enable it to recover the cost of construction of the Multiplex – Section 174 of the U.P.G.S.T. Act – Held that: – respondent are directed to file counter affidavit within one month – Two weeks thereafter are allowed to the petitioner for filing rejoinder affidavit.
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List this petition for admission/final disposal in July, 2018. – Writ Tax No. 751 of 2018 Dated:- 8-5-2018 – Hon'ble Krishna Murari And Hon'ble Ashok Kumar, JJ. For the Petitioner : Asha Parihar For the Respondent

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ax to the above extent so as to enable it to recover the cost of construction of the Multiplex. During the subsistence of the above scheme, the C.GS.T. and U.P.G.S.T. Acts have been implemented w.e.f. 01.07.2017 and the Act has been repealed vide Section 174 of U.P. G.S.T. Act with the saving clause that it will not effect any right, privilege, obligation or liability acquired, accrued or incurred under the repealed Act provided the tax exemption granted under the repealed Act by any notification has not been rescinded or revoked by a fresh notification on or after the enforcement of the G.S.T. The submission of learned counsel for the petitioner is that in view of Section 174 of the U.P.G.S.T. as there is no notification repealing the bene

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2018 (5) TMI 1332 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (13) G. S. T. L. 177 (A. A. R. – GST) – Levy of GST – liquidated damages – applicant contends that these damages being towards deficiency of services and reduce the original consideration and will not be considered as separate service covered by the term 'Obligation to tolerate an act or a situation'.
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Whether GST is applicable on Liquidated Damages in case of: Type 1 i.e. Operation & Maintenance activities; Type 2 i.e. Construction of new power plants or renovation of old plants; Or is applicable in both cases?
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Held that: – the contract price and the liquidated damages are two different aspects. Deduction of one from the other is a mere facilitation towards settlement of the accounts. This manner of giving effect to the obligations under the contract should not be deceptive of the actual intent.
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Presence of liquidation clause in the agreement:- Applicant has argued that it was never the intention o

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n of trial operation is established on the part of the Contractor. This would define the time of supply.
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Where the part of liquidated damages pertains to per-GST, would GST be applicable – Held that:- The question is based on some incorrect presumption owing to which the applicant seems to have adopted some method of deduction of liquidated damages from the payments to be made to the contractor. We are afraid that no such strategy of deducting or of capping can be inferred from the agreement clauses.
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Eligibility of credit of GST on such LT in the hands of Contractor / vendor – Held that:- The above question is not answered as the proper person to ask the above question would be the contractor /Vendor and not applicant. – GST-ARA-15/2017-18/B-30 Dated:- 8-5-2018 – Shri B. V. Borhade, Joint Commissioner of State Tax and Shri Pankaj Kumar, Joint Commissioner of Central Tax PROCEEDINGS (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods

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Will it be the period in which delay is occurring or it is the time when decision to impose Liquidated Damages is taken? c) If some part of delay has occurred before GST roll-out and some part of delay has occurred after GST roll but, whether GST will be applicable to the Liquidated Damages imposed for entire period of delay or to the period falling after GST roll-out? In case when GST is to be imposed for period after date of GST rollout but due to maximum capping of LD, the amount of LD is calculated at given percentage instead of being period-based, then how GST needs to be levied. d) Whether the contractor/vendor will be able to utilize the amount of LD imposed over him as Input Tax Credit subject to satisfying all other conditions? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST A

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and services for operational activities. In this case, if there is delay on the part of the contractor to provide materials / services; Liquidated damages (LD) are deducted from the amount payable to vendor. The L.D so deducted is treated as income Type 2 : Construction of new power plants or renovation of old plants In this regard, normally the contract is awarded to vendors to build the plant on Turnkey basis. Normally the contracts are awarded in three parts, supply of materials, erection & commissioning and Civil work. As per terms and conditions, the period of completing the contract is fixed. When plant construction is completed, the actual time taken for completion of contract is calculated. If there is delay in completing the contract, the assessment regarding party responsible for delay is made. If the delay is on account of contractor, then Liquidated damages (LD) are calculated as per contract terms and levied upon the contractor. In accounting, the LD imposedis reduced

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consideration towards a service provided by the company to the contractor requires clarification. For the sake of better understanding, clauses relating liquidated damages from one of the contracts pertaining to erection, testing and commissioning is reproduced below – "7.0 LIQUIDATED DAMAGES FOR DELAY IN ERECTION, TESTING AND COMMISSIONING 7. 1 The Contractor shall strictly adhere to the Protect completion schedule to achieve the trial operation in accordance with the project completion schedule. In case the Contractor fails to achieve successful completion of Trial Operation due to delay on his part, then the Owner shall levy liquidated damages. 7.2 Time Schedules indicated for various activities are for the purpose of monitoring to ensure work completion as per Project Completion Schedule. Only the successful completion of Trial Operation of the unit shall be considered for the purpose of levy of Liquidated Damages. 7.3 The payment by Contractor or deduction by Owner of any sum

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within the time period specified in the Project Completion Schedule due to reasons attributable to him then the owner shall levy Liquidated damages on the Contractor @12% of the contract price for erection, testing and commissioning (excluding insurance charges, taxes and duties) along with applicable price variation per week of delay or part thereof subject to the maximum 10% of the contract price for erection, testing and commissioning (excluding insurance charges, taxes and duties) along with applicable price variation." Similar clauses are there in supply, civil and structural work of the contract. Submission dt. 08.02.2018 I. STATEMENT OF FACTS 1. The Maharashtra State Power Generation Company Ltd (hereinafter referred to as applicants) is engaged in generation of power with object of making power available on affordable rates. 2 The applicant enters into contract with various contractors for the purpose of construction of new power plants or renovation of old plants or for o

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wner shall levy liquidated damages. 7.2 Time Schedules indicated for various activities are for the purpose of monitoring to ensure work completion as per Project Completion Schedule. Only the successful completion of Trial Operation of the unit shall be considered for the purpose of levy of Liquidated Damages. 7.3 The payment by Contractor or deduction by Owner of any sums under the provision of this clause shall not relieve the Contractor from his obligations to complete the works or from his other obligations under the contract. 7.4 The liability of payment of these liquidated damages by the Contractor will be established once the delay in successful completion of trial operation is established on the part of the Contractor and the Owner shall not be required to lake any further action like arbitration or approaching the Court of Law for levying the Liquidated damages. 7.5 Since the Liquidated damages are limited and the same cannot compensate the consequential loss of the Owner due

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contract price along with the applicable price variation (excluding taxes, duties and insurances charges.) as per contact price adjustment shall be considered. Further Liquidated Damages for each unit shall be levied separately and for this purpose, price of one unit shall be half of the price of both the units. Similar clauses are there in supply of balance of plant package, erection testing and commissioning of balance of plant package, supply of main plant package, civil and structural works of balance of plant package and various another contract entered into with various parties. The applicant enters into contract with various suppliers which inter-alia includes:- BHARAT HEAVY ELECTRICALS LIMITED. BGR ENERGY SYSTEMS LIMITED TATA PROJECT LIMITED. LANCO INFRATECH LIMITED The contract is more or less similarly worded. Each such contract has time line for completion of the project and levy of Liquidated Damages, if not completed within time. The specimen clause reproduced above repres

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ted damages imposed for entire period of delay or to the period falling after GST roll-out? In case when GST is to be imposed for period after date of GST rollout but due to maximum capping of liquidated damages, the amount of liquidated damages is calculated at given percentage instead of being period-based, then how GST needs to be levied. f) Whether the contractor / vendor will be able to utilize the amount of liquidated damages imposed over him as Input Tax Credit subject to satisfying all other conditions? III. APPLICANT'S INTERPRETATION : a) Liquidated Damages reduces the value of main supply: The contract entered into with the contractor gives the nature of services, the value of services and the time frame within which the services are required to be completed. The contractor undertaking the supply of service is aware of the fact that in case the services are not completed within the stipulated period, the value of contract will reduce. Since the recovery of Liquidated Dama

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(ii) to refrain from an act; (iii) to tolerate an act or situation; (h) any combination of any 2 or more of the matters referred to in paragraphs (a) to (g). Rulings are issued by Australian Tax Authority to interpret and clarify the provisions of GST law prevailing in that country. The ruling is an expression of the Commissioners opinion about the way in which the relevant provision applies or would apply to the entities, generally to a class of entities in relevant to a particular scheme. The Commissioner issued the public ruling on the payment of damages on early termination of lease of goods, cancellation of contracts and out of court settlements where in they had discussed the taxability of the liquidated damages. The same along with cases and books has been discussed as follows:- In GSTR 2003/11 of Goods and service tax ruling relating to payment on early termination of lease of goods, it was clarified that if clause relating to early termination has been specified in the origina

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name, personal injury, termination or breach of contract In such cases, there is therefore no GST liability. " Thus, Australian GST has treated the payment of liquidation damages as part of the same supply and mere re-determination of the consideration of the same supply if the has been specified in the original contract i.e. if liquidation of damages are to be borne by the service provider then same will be considered as towards deficiency of services and thereby reduces the original consideration and it will not be considered as separate service and hence it is not covered by the term Obligation to tolerate an act or a situation' The deficiency of service may arise on account of poor quality of service or delay in rendering the service and therefore it is our interpretation that deduction of the contract price on account of delay in contract will be considered towards deficiency of service and therefore will not liable to GST in the hands of the applicant, b) Since as per t

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within a period of 14 days from the completion of the taxable service. The invoice needs to indicate inter alia the value of service so completed. Thus, it is important to identify the service so completed. This would include not only the physical part of providing the service but also the completion of all other auxiliary activities that enable the service provider to be in a position to issue the invoice. Such auxiliary activities could include activities like measurement, quality testing, etc. which may be essential pre-requisites for identification of completion of service. The test for the determination whether a service has been completed would be the completion of all the related activities that place the service provider in a situation to be able to issue an invoice. However, such activities do not include flimsy or irrelevant grounds for delay in issuance of invoice. " Thus, the Ancillary work is required to be completed for the completion of service. In this case, the a

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tional submission by the applicant on 27.02.2018 In addition to the re-submissions made on certain portion of our application for advance ruling, the applicant would like to submit the following additional submissions in support of its view: – 1) Determination of Transaction value. a. Clause (d) of Section 4(3) Central Excise Act, 1944 defines the expression "transaction value " as follows; "means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or un connection with the sale, whether payable at the lime of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses, storage, outward handling, servicing, warranty, commission or any other matter; but does not include the amount of duty of excis

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t related and the price is the sole consideration for the supply. Section 15 of the CGST Act 2017, which is similarly worded i.e. The transaction value is which actually paid or payable hence we can say that the ratio of the above cited judgements can also be applied to the section 15(1) of the CGST Act, 2017 and it can be concluded that resultant price after Liquidated Damages would be the transaction value under section 15(1) of the CGST Act, 2017. 2) Further it is also submitted that primary intention is not to 'tolerate' an act or a 'situation'. Performance is the essence of a contract and hence parties to contract generally incorporate their expectation in terms of damage caused by failure of either party to perform its obligations completely or as per the agreed terms. The contract may prescribe damages for deficiency in the performance of contract known as 'liquidated damages'. It is to dissuade unsatisfactory performance or non-performance. For instance,

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on of loss suffered by recipient 3) Intention of contracting parties are essential to determine nature of transaction. Further, Various courts in India have time and again held that for determining the Tax implications with regard to a transaction, reliance needs to be placed on the intention of the contracting parties as gathered from the contract or conduct of the parties. In case of Dr Golak Bihari Mohanty vs. state of Orissa, [1974] 33 STC 514 (Orissa) = 1974 (1) TMI 91 – ORISSA HIGH COURT , the assessee was carrying on private practice as a radiologist and for that purpose had installed an X-ray plant He used to purchase X-ray plates and other chemicals and take X-ray photographs of patients according to requisitions from physicians as also of his own patients. After taking the X-ray, he used to give technical advice to his patients and was charging a flat rate towards his remuneration and cost of materials. Sales Tax Officer was of the view that the turnover arising from such tra

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ties or such settlement though attributed to the execution of the contract is merely incidental and does not represent the primary intent and objective of the parties which obviously logically and legally continues to construct and deliver a power plant At best these settlements could be considered to be an adjustment or a reduction in the contractual consideration or compensation to be received by the contractor. However, considering these settlements as a separate and distinct supply' from that of the LSTK's scope and ambit seems to be a bit too far stretched. If this argument is found to have some merit, then what could possibly attract levy of GST under the impugned clause could be an arrangement where primary intention is to tolerate an act or a situation. 4) Revised amount in case of renegotiation will be the amount of consideration Further, the CBEC, vide their circular dated 31.03.2011, clarified the service tax rule, 1994, explaining that in case of renegotiation of th

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s evident from the above circular, that in case the consideration for any other service is changed as per the term and conditions laid down in the contract, then service tax/GST will be payable on the renegotiated amount. Additional submission on 07.03.2018 1. We thank you very much for patient hearing on 28.02.2018 on the above application. As submitted during the hearing following additional submission/documents are submitted: – i) Manner of Recovery. As directed, a specimen running bill raised by M/s Bharat Heavy Electricals Limited, bearing no. MS/PW/9515/13/1027(89) is attached as Annexure -l. ln this case 15% of the invoice amounting to ₹ 56,29,471/- has been deducted as retention This amount is deducted on invoice value of ₹ 3,75,29,810/- For the sake of clarification as to retention @ 15% towards LD, when the maximum limit of LD is prescribed at 10%, it is to submit that in case of bills which were received and passed for payment before the scheduled completion date

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the manner in which the recovery of liquidated damages is made by the applicant. ii) amount not retained for toleration of Act. During the hearing the query regarding taxability under the toleration of an act was discussed. It was submitted that the liquidated damage is part of the contract for supply of equipment and service. It is not a separate contract of toleration of an act for which payment is made. The applicant had attached one of the contracts with M/s BHEL as specimen. It was submitted that it was one single contract for supply of goods and services and not two contracts for supply of goods services and toleration of an act. The Divisible contract has been defined in Black's Law' Dictionary, Sixth Edition, Page no. 479, as follows: Divisible contract "One which is in its nature and purposes susceptible of division and apportionment, having two or more parts in respect to mailers and things contemplated and embraced by it, not necessarily dependent on each other

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e, the execution of the contract and deduction cannot be enforced separately. The delay in supply will always precede deduction of liquidated damages, thus, deduction of liquidated damages cannot be independently enforced. Hence it is submitted that the contract is for single supply and not for the two supplies. In any contract if the activities are depended on each other and it cannot be performed individually, then there will not to be two separate supplies. In a contract two supplies can be considered only when two supplies are independent and not depending on each other. In this case, the deduction of the amount is determined on delay in making supply of goods or services by the contractor. Unless, there is delay the clause of liquidated damage will not apply Therefore, it is submitted that contract is single supply and not for two separate supply. iii) The fact is also evident from the provision of Section 15(2) of the CGST Act, 2017. The Section 15 provides for determination of v

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e section 73 and section 74 of the Indian Contract Act, 1872 provides for recovery of liquidated damages in case of breach of contract. The provision of the section 73 and section 74 of the Indian Contract Act, 1872 reads as follows: – 73. Compensation for loss or damage caused by breach of contract When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it. 74. Compensation for breach of contract where penalty stipulated for.- When a contract has been broken, if a sum is named in the contract as the amount to be paid in case of such breach, or if the contract contains any other stipulation by way of penalty, the party complaining of the breach is entitled, whether or not actual dam

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o compensate the person for loss suffered by him. The amount of loss suffered by appellant due to delay as mentioned in the contract. Therefore, it is submitted that the damages are not received by the person for the toleration of an act, but it is made for compensate the loss suffered by the appellant. Therefore, it is submitted that recovery of liquidated damage is not for any supply of service for toleration of an act. 3. The entry in 5(e) of CGST Act, reads as follows: (e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation or to do an act; It was mentioned during hearing that there should be a separate contract to tolerate an act and receive payment for the same The word "obligation" used in clause clearly means that the person should undertake to tolerate an act. There should be a contract for the said purpose and the consideration should be received for such an act of toleration. The contract will not be in the form of compensation o

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ate 18% is correct or any other entry is relevant? (b) LD is determined and imposed upon the contractor after in-depth study. In such case, what will be construed as the time of supply? Will it be the period in which delay is occurring or it is the time when decision to impose LD is taken'' (c) If some part of delay has occurred before GST roll-out and some part of delay has occurred after GST roll-out, whether GST will be applicable to the LD imposed for entire period of delay or to the period falling after GST roll-out? In case when GST when GST is to be imposed for period after date of GST rollout but due to maximum capping of LD, the amount of LD is calculated at given percentage instead of being period-based, then how GST needs to be levied. (d) Whether the contractor/vendor will be able to utilize the amount of LD imposed over him as Input Tax Credit subject to satisfying all other conditions? a) GST on LD is covered under Schedule II entry no 5(2) (e), GST rate will be a

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.2018 otherwise their application is liable for rejection without further notice. Jurisdictional Officer, Sh. S.D. Page, Dy. Commissioner of State Tax (E-630), Large Tax Unit-3, Mumbai also appeared and stated that they do not have objection to admission of application of Advance Ruling and would be submitting details as required at the time of final hearing. Fresh application of Advance Ruling was received on dt.08.02.2018 and the applicant was called for a final hearing on dt.28.02.2018. Sh. S. S. Gupta, Sh. Karan Awtani, Ashutosh Shukla attended alongwith Sh. Vijay Chitlange and Ms. Madhuri Mundlye, (Assistant General Manager) and made revised submission which are taken on record. They orally reiterated their contention as made in the revised application submitted on dt.08.02.2018. They also submitted that they would be submitting, latest by dt.08.03.2018, copies of invoices evidencing recovery of liquidated damages. Jurisdictional Officer Sh. S.D. Page also appeared and made writte

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is deducted in two cases. Type 1 : Operation & Maintenance activities In the normal course of business of generation and sale of power, Mahagenco enters in to various contracts with vendor for providing materials and services for operational activities. In this case, if there is delay on the part of the contractor to provide materials / services; Liquidated damages (LD) are deducted from the amount payable to vendor. The LD so deducted is treated as income Type 2 : Construction of new power plants or renovation of old plants In this regard, normally the contract is awarded to vendors to build the plant on Turnkey basis. Normally the contracts are awarded in three parts, supply of materials, erection and commissioning and Civil work. As per terms and conditions, the period of completing the contract is fixed. When plant construction is completed, the actual time taken for completion of contract is calculated. If there is delay in completing the contract, the assessment regarding par

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be supported by the agreement. We see that a Contract Agreement between Maharashtra State Power Generation Company Limited (Owner) and Bharat Heavy Electricals Limited (Contractor) for Erection & Commissioning of Main Plant Package at Chandrapur T.P.S. Expansion Project 2 x 500 MW has been provided. The agreement consists of a set of various documents such as Letter of Award, Letter of Acceptance, etc. However, the first thing that we notice is that the agreement pertains to the period before the GST Act came into force. The applicant has submitted that the agreements are usually entered on the lines similar to the agreement submitted for our perusal. The clauses as are relevant for determination of the issue at hand could be had a look at – Agreement dt.30.03.2010 Whereas the Owner is desirous that certain ancillary services should be provided by the Contractor, viz. Erection, Testing & Commissioning of Main Plant equipments consisting of Steam Generator, Steam Turbine and Gen

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ade by the Owner to the Contractor as hereinafter mentioned, the Contractor hereby covenants with the Owner to provide the goods and to remedy defects therein in conforming in all respects with the provisions of the Contract. 4. The Owner hereby covenants to pay the Contractor in consideration of the provision of the goods and the remedying of defect therein, the Contract Price or such other sum as may become payable under the provisions of the Contract at the times and in the manner prescribed by the Contract Letter of Award dt.25.07.2008 2.0 SCOPE OF CONTRACT 2.1 The scope of contract shall include receipt of materials/ equipment, unloading and handling at site, transportation to stores, storage, checking of materials in stores, transportation of material to erection site, carrying out preparatory works prior to erection of material, insurance, erection, testing and commissioning, final painting and putting into operation of the Main Plant Equipments supplied by BHEL under supply con

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luding Comprehensive Insurance charges. : ₹ 2478000000/- ii) Service tax on E & C at 12.36% : ₹ 306280800/- Total Price for Erection, Testing & Commissioning of Main Plant Equipments including Comprehensive Insurance (Rupees Two Hundred Seventy eight Crores Forty two Lakhs Eighty Thousand Eight Hundred only) Rs.2784280800/- 4.0 CONTRACT PRICE ADJUSTMENT / VARIATION 4.1 The price for erection, testing & commissioning excluding insurance charges and taxes & duties, shall be subjected to price variation as per the Terms of Bid Specification under ref.1 with Base Indices as on March 08. The price variation shall be subjected to a ceiling of (+/-) 20% of the contract price for Erection, Testing & Commissioning excluding taxes & duties and insurance charges. 4.2 In case the contract period is required to be examined beyond the cut off dates for reasons attributable to the Contractor, for making payments towards price variation, the Owner shall select the i

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LIQUIDATED DAMAGES 10.1 If the Contractor fails to achieve the trial operation of the unit within the stipulated time period as indicated above from the zero date then the Owner shall levy Liquidated Damages on the contractor @1/2% of the contract price for Erection, Testing & Commissioning along with applicable price variation price per week of delay or part thereof subject to a maximum of 10% of the price for Erection, Testing & Commissioning along with applicable price variation. For the purpose of levy of liquidated damages, the contract price for Erection, Testing & Commissioning excluding Insurance charges and taxes & duties and the same for one unit shall be half of the total price. 11.0 TERMS OF PAYMENT 11.1 The Owner shall make progressive payment as and when they are due as per the payment schedule / Billing Break-up approved by the Owner. The Contractor should note that financing of this project shall be covered under loan from Rural Electrification Corporat

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is amended as below. The contract price for Erection, Testing & Commissioning of Main Plant equipments is Rs. ₹ 2,75,28,20,000/- (Rupees Two Hundred Seventy Five Crore Twenty Eight Lakh Twenty Thousand only) as detailed below. Sr No. Particulars Amount in Rs. i) Price for Erection, Testing & Commissioning including Comprehensive Insurance charges ₹ 2,45,00,00,000/- ii) Service tax Including applicable Cess @ 12.36% ₹ 30,28,20,000/- Total Price for Erection, Testing & Commissioning of Main Plant Equipments including Comprehensive Insurance (Rupees Two Hundred Seventy eight Crores Twenty Eight Lakh Twenty Thousand only) Rs.2784280800/- Section 2 – General Conditions of Contract 3.0 DEFINITION OF TERMS 3.9 "works" shall mean labour and services and complete erection, testing and commissioning of the equipment handling, unloading, storage etc. as per contract. 3.13 (A) Contract Price shall mean the total lump-sum price named in the contract for provi

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ms, Such claims shall be paid by the Contractor within 15 (fifteen) days of (he receipt of the corresponding bills and if not paid by the Contractor within the said period, the Owner may then deduct the amount from any monies due or becoming due by him to the Contractor under this contract or any other contract. These amounts may be recovered by actions of law or otherwise, if the Contractor fails to satisfy the Owner of such claims. 21.0 CONTRACTOR'S DEFAULT 21.1 If the contactor shall neglect to execute the works as defined in the contract with due diligence and expedition or shall refuse or neglect to comply with any reasonable orders given to him in writing by the Engineer in connection with the works or shall contravene the provisions of the contract, the Owner may give a notice in writing to the contractor to make good the failure, neglect or contravention complained off Should the contactor fail to comply with the notice within 30 (thirty ) days from the date of service ther

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hall have to pay if the completion of works is delayed. In addition, such action by the owner as aforesaid shall not relieve the Contactor of his responsibility to pay liquidated damages for delay in completion of the works as defined in this contract. 51.0 OWNERSHIP OF PLANT 51.1 The plant and equipment supplied by the Contractor pursuant to the contract shall become the property of the Owner at whichever is the earlier of the following limes viz. i) When the plant and equipment is delivered/despatched pursuant to the contract ii) When the contractor has been paid any sum to which he may become entitles in accordance with the provisions of this contract. iii) Plant is otherwise taken over by the owner in terms of contract. Section 3 – Special Conditions of Contract 7.0 LIQUIDATED DAMAGES FOR DELAY IN ERECTION, TESTING AND COMMISSIONING 7. 1 The Contractor shall strictly adhere to the Protect completion schedule to achieve the trial operation units 8 & 9 by 41 and 44 months respect

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itration or approaching the Court of Law for levying the Liquidated damages. 7.5 Since the Liquidated damages are limited and the same cannot compensate the consequential loss of the Owner due to delay on the part of the Contractor, the Owner reserves the right to get the work done at the risk and cost of the Contractor. in case delay on the part of the Contractor has been established after giving notice to the Contractor. as may be deemed fit in the interest of completing the balance works. 7.6 If the contractor fails to achieve the Trial Operation of the unit within the time period specified in the Project Completion Schedule due to reasons attributable to him then the owner shall levy Liquidated damages on the Contractor @1/2% of the contract price for erection, testing and commissioning (excluding insurance charges, taxes and duties) along with applicable price variation per week of delay or part thereof subject to the maximum 10% of the contract price for erection, testing and com

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% advance adjustment) of the price for erection, testing & commissioning along with applicable 100% Service tax & education cess as per agreed billing break up shall be paid on prorata basis. ……………………………… The following documents shall be submitted ………….. i) Invoice 1 Original + 2 copies 13.5.3 The next 5% (five percent) of the price for erection, testing & commissioning shall be released within 30 days on Successful Completion of Performance Guarantee test. In case Performance Guarantee test is delayed beyond the contractual completion schedule, (to meet the needs of the Owner) the last 5% shall be released on the scheduled date of performance guarantee test against an equivalent bank guarantee valid upto actual satisfactory completion of PG test. The following documents shall be submitted. …………. i) Invoice 1 Original + 2 copies 13.5.4 PAYMENT TOWARDS MARINE CUM ERECTION INSURANCE CHARGES 13.6.1 100% payment towards Marine-cum Erectio

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g along with applicable price variation. For the purpose of levy of liquidated damages, the contract price for Erection, Testing & Commissioning excluding Insurance charges and taxes & duties and the same for one unit shall be half of the total price. 2. The obligations on the Contractor calling for supply of the deliverables thereunder is one event. This event consisting of a supply occurs first. After occurrence of this event, there is evaluation in terms of whether the supply of the deliverables under the agreement were supplied within the time frame as agreed upon by the Contractor. This evaluation results in either a timely or delayed or a premature performance. The finding of this evaluation when there being a delay, the contingent liability of liquidated damages translates into an actual recoverable liability. This is the second event. What we say has been incorporated in the agreement in the words thus – The liability of payment of these liquidated damages by the Contra

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n be seen thus – a. The clause relating to contract price and contract value say thus – 3.13 (A) Contract Price shall mean the total lump-sum price named in the contract for providing all services as per the scope of the contract including all applicable taxes, duties & insurance charges. (B) Total Contract Price means the contract price plus the price variations, if any. 3.14 "Contract value" shall mean that part of the contract price which is properly apportionable to the plant or work in question having regard to the state, conditions and topographical location of the plant, the amount of work done and all other relevant circumstances and disregarding any changes that may have occurred since the date of contract in the cost of executing the works. Neither the contract price nor the contract value refer to the eventuality of liquidated damages. Contract price is the total lumpsum price plus the price variations. There is no specific indication as to reduction in the con

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ontractor shall bill all such claims regularly as and when they fall due. Such bills shall be supported by appropriate documents or explanations, to enable the Contractor to properly identify such claims. Such claims shall be paid by the Contractor within 15 (fifteen) days of the receipt of the corresponding bills and if not paid by the Contractor within the said period, the Owner may then deduct the amount from any monies due or becoming due by him to the Contractor under this contract or any other contract. These amounts may be recovered by actions of law or otherwise, if the Contractor fails to satisfy the Owner of such claims. A perusal of the above clause suggests that when the Owner incurs certain expenses which should have been borne by the Contractor, there is a separate mechanism of recovery also other than recovery by way of adjustment from the payments to be made to the Contractor. d. There is also a clause about Contractor's default thus – 21.0 CONTRACTOR'S DEFAULT

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shall be entitled to retain and apply any balance which may otherwise be due to the contactor or such part thereof, as may be necessary, to the payment of cost of executing the said part of the works or of completing the works. If the cost of executing the said part of the works or of completing the works thereof as aforesaid shall exceed the balance due to the contractor, the contractor shall pay such excesses. Such payment of excess amount shall be independent of the liquidated damages for delay which the contactor shall have to pay if the completion of works is delayed. It can be seen from the above that payment of liquidated damages is treated as an independent liability under the contract. It is not to be mixed with other payments due to the Owner from the Contractor, e. The clause relating to payment towards advance or payment for execution, testing, commissioning also does not require invoices to be considered taking into consideration the liability towards liquidated damages.

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billing 41,74, 816 5629471 against L. D – 15% 6. Net billing with Service Tax (6) = (4)+(5) 360,75,155 12017976 Deductions 29686680 N pay What the above rough calculations as shown by the applicant reveal is that the amount shown as Net and Tax is acceptable to the applicant. It is only while making the payment of the above acceptable amount that the applicant deducts some amount towards liquidated damages. Thus, the value of the work done and which is to be paid is not affected by the amount deducted therefrom towards liquidated damages. Thus, the consideration for the work done remains unaltered. How the amount for the work done is discharged between the parties should not bother the Taxmen as these are the adjustments between the parties. For the Taxman, what would matter is the value for the work done. And once this valuation is properly done and tax liability thereon discharged, whether this value is paid partially or not paid at all would not be a concern from the taxation perspe

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ract value becomes necessary as the applicant has relied on the following provision in sub-section (1) of section 15 of the GST Act to claim that the reduction of the amount towards Liquidated Damages amounts to reducing the value of the supply. It also becomes necessary as the applicant informs that the Liquidated Damages so deducted are treated as income of the applicant. The provision reads thus- Value of taxable supply. 15. (1) The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. In the present case, the agreement clauses as reproduced above, the invoice as prepared card the calculations, as reproduced above, as made by the applicant reveal that there are no two opinions between the contracting parties that the value of the supply as receiv

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o tolerate it. In this regard, we have to observe that if an agreement has such a clause and if the eventuality actually happens then the GST Act has provided for such an eventuality in terms of the provision as follows : SCHEDULE II [See section 7] ACTIVITIES TO BE TREATED AS SUPPLY OF GOODS OR SUPPLY OF SERVICES 5. Supply of services The following shall be treated as supply of services, namely:- (e) agreeing to the obligation to refrain from an act, or to tolerate an act or a situation, or to do an act; In the present case, the agreement provides that the liability of payment of these liquidated damages by the Contractor will be established once the delay in successful completion of trial operation is established on the part of the Contractor. Thus, the act of delayed supply has happened. The same is being tolerated by an additional levy in the nature of liquidated damages. The agreement has also provided that the payment by Contractor or deduction by Owner of any sums under the prov

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er Bench in Victory Electricals (cited supra) that that wherever the assesse, as per terms of the contract between the parties and on account of delay in delivery of manufactured goods, is liable to pay a lesser amount than the generally agreed price as a result of a clause stipulating variation in the price, on account of liability to "liquidated damages" irrespective of whether the clause is titled "penalty" or "liquidated damages", the resultant price would be the "transaction value" and such value shall be alone liable to levy of excise duty, at the applicable rate. In the present case, there are no such clauses as would tantamount to reducing the contract price or the contract value of the supplies of goods or services or both as made by the Contractor. In fact in the present case, the levy of liquidated damages is specifically identified as an independent levy. We have seen that the Contract Price Variation clause in the impugned agreement,

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ms of the agreement between Maharashtra State Power Generation Company Limited (Owner) and Bharat Heavy Electricals Limited (Contractor) for Erection & Commissioning of Main Plant Package at Chandrapur T.P.S. Expansion Project 2 x 500 MW that has been provided for our perusal. In terms of the aforesaid agreement, GST would be applicable on the Liquidated Damages. Question 2 If GST applicable, kindly clarify the following related aspects also a) Whether the GST on Liquidated Damages is covered under Schedule II entry No 5(2)(e) vide HSN code 9997-Other Services rate 18% is correct or any other entry is relevant? We would be constrained to restrict the answer to this question in terms of only the agreement placed before us. We have observed above that the impugned levy of liquidated damages would be covered by clause (e) of para 5 of Schedule II appended to the GST Act. To answer the question as regards the schedule entry and the tax rate applicable, we find that there is no specific

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Heading 9997 Other services (washing, cleaning and dyeing services; beauty and physical well-being services; and other miscellaneous services including services nowhere else classified). 18% [9% + 9%] b) Liquidated Damages is determined and imposed upon the contractor after in-depth study. In such case, what will be construed as the time of supply. Will it be the period in which delay is occurring or it is the time when decision to impose Liquidated Damages is taken? We would be constrained to restrict the answer to this question in terms of only the agreement placed before us. The question would stand answered by the following clauses in the agreement – 10.0 LIQUIDATED DAMAGES 10.1 If the Contractor fails to achieve the trial operation of the unit within the stipulated time period as indicated above from the zero date then the Owner shall levy Liquidated Damages on the contractor @1/2% of the contract price for Erection, Testing & Commissioning along with applicable price variatio

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ect Completion Schedule. Only the successful completion of Trial Operation of the unit shall be considered for the purpose of levy of Liquidated Damages. 7.3 The payment by Contractor or deduction by Owner of any sums under the provision of this clause shall not relieve the Contractor from his obligations to complete the works or from his other obligations under the contract. 7.4 The liability of payment of these liquidated damages by the Contractor will be established once the delay in successful completion of trial operation is established on the part of the Contractor and the Owner shall not be required to lake any further action like arbitration or approaching the Court of Law for levying the Liquidated damages. 7.5 Since the Liquidated damages are limited and the same cannot compensate the consequential loss of the Owner due to delay on the part of the Contractor, the Owner reserves the right to get the work done at the risk and cost of the Contractor. in case delay on the part of

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Further Liquidated Damages for each unit shall be levied separately and for this purpose, price of one unit shall be half of the price of both the units. All the above clauses reveal that the levy of liquidated damages is not when the delay is occurring. The Agreement expressly provides that liability of payment of these liquidated damages by the Contractor will be established once the delay in successful completion of trial operation is established on the part of the Contractor. This would define the time of supply. c) If some part of delay has occurred before GST roll-out and some part of delay has occurred after GST roll-out, whether GST will be applicable to the Liquidated Damages imposed for entire period of delay or to the period falling after GST roll-out? In case when GST is to be imposed for period after date of GST rollout but due to maximum capping of LD, the amount of LD is calculated at given percentage instead of being period-based, then how GST needs to be levied. The q

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r in respect of the liquidated damages if any collected/received under the previously applicable service tax regime before coming into effect of GST, would be dealt with in accordance with the then existant provisions under applicable laws and we do not offer any view with regard to the previous service tax regime being out of the scope of present authority. d) Whether the contractor/vendor will be able to utilize the amount of LD imposed over him as Input Tax Credit subject to satisfying all other conditions? The above question is not answered as the proper person to ask the above question would be the contractor /Vendor and not applicant. 06. In view of the deliberations held hereinabove, we order as follows: ORDER (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO. GST-ARA-15/2017-18/B-30 Mumbai dt. 08/05/2018 For reasons as discussed in the body of the order, the questions are answered, as under, in terms of th

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ned levy of liquidated damages. Q.2(b) Liquidated Damages is determined and imposed upon the contractor after in-depth study. In such case, what will be construed as the time of supply. Will it be the period in which delay is occurring or it is the time when decision to impose Liquidated Damages is taken? A.2(b) In terms of the aforesaid agreement, the clauses reveal that the levy of liquidated damages is not when the delay is occurring but the liability of payment of these liquidated damages by the Contractor will be established once the delay in successful completion of trial operation is established on the part of the Contractor. This would define the time of supply. Q. 2 (c) If some part of delay has occurred before GST roll-out and some part of delay has occurred after GST roll-out, whether GST will be applicable to the Liquidated Damages imposed for entire period of delay or to the period falling after GST roll-out? In case when GST is to be imposed for period after date of GST r

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GST – States – F. No.(3)/HR/DGST/2018/5220-29 – Dated:- 8-5-2018 – GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE AND TAXES (HUMAN RESOURCE BRANCH) VYAPAR BHAWAN, I.P. ESTATE, NEW DELHI-110002 NOTIFICATION F. No.(3)/HR/DGST/2018/5220-29 Dated: 08/05/2018 Appointment of Appellate Authority under DGST Act, 2017 In exercise of the power conferred upon me by sub-section (1) of section 5 read with clause (8) of section 2 of the Delhi Goods and Services Tax Act, 2017 and the ru

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