Month: March 2019

2019 (3) TMI 541 – GUJARAT HIGH COURT – TMI – Validity of SCN – requirements of section 129 of the CGST Act not complied with – detention of goods in transit – perishable goods – Held that:- It appears that the showcause notice under section 130 of the CGST Act has been issued without complying with the requirements of section 129 of the CGST Act – It is also an admitted position that the goods in question are perishable in nature.
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The petitioner has made out a strong prima facie case for the grant of interim relief. By way of interim relief, the respondents are hereby directed to forthwith release the goods in question and the Truck etained / seized under purported exercise of powers under sections 129 and 130 of the CGST Act – Stand over to 27.03.2019, so as to enable the respondents to file affidavitinreply, if any, in the matter. – R/SPECIAL CIVIL APPLICATION NO. 4730 of 2019 Dated:- 8-3-2019 – MS HARSHA DEVANI AND MR BHARGAV D. KARIA For The Petitioner (s) : UCHIT N SHETH

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rted to. The attention of the court was invited to the impugned show cause notice dated 1.3.2019, to submit that the same seeks to impose penalty, redemption fine and confiscation under section 130 of the Act without initiating any proceedings under section 129 of the Act, which is not permissible in law. It was further submitted that the integrated goods and services tax has already been paid on the goods in question at the time of import thereof and that the goods in question are perishable goods with a limited shelflife. 2. Having regard to the submissions advanced by the learned counsel for the petitioners, Issue Notice returnable on 8th March, 2019. Direct Service is permitted today. 2. In response to the notice, Mr. Soham Joshi, learned Assistant Government Pleader, has appeared on behalf of the respondents. 3. The learned Assistant Government Pleader has invited the attention of the Court to the detention order dated 14.02.2019 issued by the proper officer under subsection (1) o

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question as well as the vehicle should not be confiscated for nonpayment of an amount of ₹ 60,72,639/, as detailed therein. On a query by the Court, the learned Assistant Government Pleader is not in a position to point out that the procedure, as contemplated under subsections (3) and (4) of section 129 of the CGST Act, has been followed. Thus, prima facie, it appears that the showcause notice under section 130 of the CGST Act has been issued without complying with the requirements of section 129 of the CGST Act. It is also an admitted position that the goods in question are perishable in nature. 6. In the aforesaid premises, in the opinion of this Court, the petitioner has made out a strong prima facie case for the grant of interim relief. By way of interim relief, the respondents are hereby directed to forthwith release the goods in question and the Truck bearing registration no. GJ07UU7250 detained / seized under purported exercise of powers under sections 129 and 130 of the

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GST – Order No. 2/2019 – Dated:- 8-3-2019 – Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Removal of Difficulty Order No. 2/2019-Union Territory Tax New Delhi, the 8th March, 2019 S.O. 1219 (E). Whereas, clause (vii) of section 21 of Union Territory Goods and Services Tax Act, 2017 (14 of 2017) read with clause (c) of sub-section (3) of section 31 the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) provides that a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 of the said Act shall issue, instead of a tax invoice, a bill of supply, and therefore any person not covere

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GST – Order No. 3/2019 – Dated:- 8-3-2019 – Government of India Ministry of Finance (Department of Revenue) Central Board of Indirect Taxes and Customs Removal of Difficulty Order No. 3/2019-Central Tax New Delhi, the 8th March, 2019 S.O. 1218 (E). Whereas, clause (c) of sub-section (3) of section 31 the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) provides that a registered person supplying exempted goods or services or both or paying tax und

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GST – 93/12/2019 – Dated:- 8-3-2019 – Circular No. 93/12/2019-GST F. No. 354/124/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit Room No. 156, North Block, New Delhi, 8th March, 2019 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: regarding Representations have been received requesting to clarify whether IGST or CGST/ SGST is payable for trading of PSLC by the banks on e-Kuber portal of RBI. 2. In this regard, it is stated that Circular No. 62/36/2018-GST dated 12.09.2018 was issued clarifying that GST on PSLCs for the period 1.7.2017 to 27.05.2018 wi

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2019 (3) TMI 489 – ALLAHABAD HIGH COURT – TMI – Extension of time for filing GST Tran-1 – transitional credit – transition to GST regime – Held that:- The respondents are directed to open the portal before 31st of March 2019. In the event they do not do so, they will entertain the GST TRAN-1 of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner.
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List this matter on 10.04.2019. – Writ Tax No. – 288 of 2019 Dated:- 8-3-2019 – Bharati Sapru And Piyush Agrawal JJ. For the Petitioner : Vishwjit For the Respondent : A.S.G.I.,Ramesh Chandra Shukla ORDER Heard Sri Vishwjit, learned counsel for the petitioner, Sri Krishna Agrawal learned Counsel for the respondents no.1, 2 & 3

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entitled to by passage of time. In view of the above, the respondents are directed to open the portal before 31st of March 2019. In the event they do not do so, they will entertain the GST TRAN-1 of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner. They will also ensure that the petitioner is allowed to pay its taxes on the regular electronic system also which is being maintained for use of the credit likely to be considered for the petitioner. Learned Counsel for the respondents may file a counter affidavit within a month. List this matter on 10.04.2019. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement – taxmanagement

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GST – Various doubts related to treatment of sales promotion scheme under GST clarified – TMI Updates – Highlights

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GST – Implementation of various decisions taken by the GST Council for the MSME Sector; Issue of Notifications there of – TMI Updates – Highlights

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Goods and Services Tax – GST – Dated:- 7-3-2019 – The GST Council in its 32nd Meeting held on 10th January, 2019, inter-alia, had taken the following decisions to be effective from 1st April, 2019 (01.04.2019): Higher Exemption Threshold Limit for Supplier of Goods: There would be two Threshold Limits for exemption from registration and payment of GST for the Suppliers of Goods i.e. ₹ 40 lakhs and ₹ 20 lakhs. States would have an option to decide about one of the limits. The Threshold for Registration for Service Providers would continue to be ₹ 20 lakhs and in case of Special Category States ₹ 10 lakhs. Composition Scheme for Services and Mixed Suppliers: A Composition Scheme shall be made available for Suppliers o

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GST – Started By: – SAFETAB LIFESCIENCE – Dated:- 7-3-2019 Last Replied Date:- 8-3-2019 – Dear GST experts, Some of our suppliers have added Freight charges, Insurance charges in their Bills on their own but not in our Purchase Orders. After receipt of the Invoices, we deny to pay that extra items like this. The suppliers simply ask us to deduct the amount and raise Debit Note. Whether we can raise Debit Note against suppliers Invoice ??? We were informed and come to understand that only Suplliers can raise Credit Note or Debit Note against their own Invices and Buyers can not raise CN or DN against suppliers Invoice under GST act. Please clarify. – Reply By SHARAD ANADA – The Reply = Ask supplier to issue credit Note. As credit Note issue

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ier should issue credit note or debit note as the case may be. However , buyer can issue debit note. In fact buyer is the first person to deny the acceptance of the material or any other cost component in the invoice. So buyer issues debit note based on which supplier issues credit note. Of course credit note or debit note to be issued by supplier for the purpose of compliance in the GST portal in the sense that it auto populates in the GSTR-2A of the recipient compelling him to reverse his input tax credit. Since GSTR 2A matching in not mandatory the purpose of making supplier to upload both the aforesaid note is not visible. – Reply By Ganeshan Kalyani – The Reply = The sequence of raising purchase requisition , purchase order , goods rec

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GST – Anticipatory Bail – input tax credit – continuous issuance of fake invoices without actual supply of goods – offence punishable u/s 137 of Goods and Services Tax Act, 2017 – Anticipatory Bail subject to conditions. – TMI Updates – Highlights

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GST – Profiteering – Respondent has issued incorrect invoices while selling the above product to his customers as he had not correctly shown the basic price which he should have legally charged from t

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GST – Profiteering – Auric City Homes – Construction of flats – Respondent has denied benefit of ITC to the buyers of the flats being constructed by him under the above Policy in contravention of the

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GST – States – 380-F.T. – 14/2019-State Tax – Dated:- 7-3-2019 – GOVERNMENT OF WEST BENGAL FINANCE DEPARTMENT REVENUE NOTIFICATION No. 380-F.T. Howrah, the 7th day of March, 2019 No. 14/2019-State Tax In exercise of the powers conferred under the proviso to sub-section (1) of section 10 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017) (hereinafter referred to as the said Act), and in supersession of the notification no 1142-F.T., dated the 28th June, 2017, published in the Kolkata Gazette, Extraordinary, Part I, except as things done or omitted to be done before such supersession, the Governor, on the recommendations of the Council, is pleased hereby to specify that an eligible registered person, whose agg

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m, sub-heading, heading or Chapter Description (1) (2) (3) 1. 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa. 2. 2106 90 20 Pan masala 3. 24 All goods, i.e. Tobacco and manufactured tobacco substitutes Explanation. – (i) In this Table, "tariff item", "sub-heading", "heading" and "chapter" shall mean respectively a tariff item, subheading,heading and chapters as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (ii) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to

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GST – States – 05/2019–C.T./GST – 13/2019 – State Tax – Dated:- 7-3-2019 – GOVERNMENT OF WEST BENGAL DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA -700015 NOTIFICATION BY THE COMMISSIONER OF STATE TAX Notification No. 05/2019-C.T./GST Dated: 07/03/2019 No.13/2019 – State Tax In exercise of the powers conferred by section 168 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017) (hereafter in this notification referred to as the said Act) read with sub-rule (5) of rule 61 of the West Bengal Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the Commissioner, on the recommendations of the Council, hereby specifies that the return in FORM GSTR-3B of th

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GST – States – 04/2019–C.T./GST – 12/2019 – State Tax – Dated:- 7-3-2019 – GOVERNMENT OF WEST BENGAL DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA -700015 NOTIFICATION BY THE COMMISSIONER OF STATE TAX Notification No. 04/2019-C.T./GST Dated: 07/03/2019 No. 12/2019 – State Tax In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 read with section 168 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017) (hereafter

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GST – States – 379-F.T. – 11/2019-State Tax – Dated:- 7-3-2019 – GOVERNMENT OF WEST BENGAL FINANCE DEPARTMENT REVENUE NOTIFICATION No. 379-F.T. Howrah, the 7th day of March, 2019. No. 11/2019-State Tax In exercise of the powers conferred by section 148 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017) (hereafter in this notification referred to as the said Act), the Governor, on the recommendations of the Council, hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year, as the class of registered persons, who shall follow the special procedure as mentioned below for furnishing the details of outward supply of go

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GST – States – 2/2019-STATE TAX (RATE) – Dated:- 7-3-2019 – EXCISE AND TAXATION DEPARTMENT NOTIFICATION NO. 2/2019-STATE TAX (RATE) Shimla-2, the 7th March, 2019 No. EXN-F(10)-5/2019.-In exercise of the powers conferred by sub-section (1) of section 9, sub- section (1) of section 11, sub-section (1) of section 16 of the Himachal Pradesh Goods and Services Tax Act, 2017 (10 of 2017) (hereinafter referred to as the said Act ), the Governor of Himachal Pradesh, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, is pleased to notify that the State Tax, on the intra-State supply of goods or services or both as specified in column (1) of the Table below, shall be levied at the rate specified in the corresponding entry in column (2), subject to the conditions as specified in the corresponding entry in column (3) of the said table below, namely:- Table Description of supply Rate (percent) Conditions 1 2 3 First supplies of goods

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ified in the corresponding entry in column (2) of the said annexure. 2. Where more than one registered person are having the same Permanent Account Number, issued under the Income Tax Act, 1961(43 of 1961), state tax on supplies by all such registered persons is paid at the rate specified in column (2) under this notification. 3. The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax. 4. The registered person shall issue, instead of tax invoice, a bill of supply as referred to in clause (c) of sub-section (3) of section 31 of the said Act with particulars as prescribed in rule 49 of Himachal Pradesh Goods and Services Tax Rules. 5. The registered person shall mention the following words at the top of the bill of supply, namely:- taxable person paying tax in terms of notification No. 2/2019-State Tax (Rate) dated 07-03-2019 not eligible to collect tax on supplies . 6. The registered person opting to

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ble under this notification shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act. ANNEXURE Sl. No. Tariff item, sub-heading, heading or Chapter Description (1) (2) (3) 1. 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa 2. 2106 90 20 Pan masala 3. 24 All goods, i.e. Tobacco and manufactured tobacco substitutes 2. In computing aggregate turnover in order to determine eligibility of a registered person to pay state tax at the rate of three percent under this notification, value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account. 3. Explanation. -For the purpose of this notification, – (i) tariff item , sub-heading , heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapters specified in the First Sc

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2019 (3) TMI 609 – CESTAT CHENNAI – TMI – CENVAT Credit – common input service used for trading activity and manufacturing activity – High Seas Sales – Rule 6(3) of CCR, 2004 – Held that:- The high-sea sales has taken place outside the jurisdiction of Central Excise authorities.
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The Tribunal in the case of M/s. Rajpetro Specialities Pvt. Ltd., [2019 (2) TMI 7 – CESTAT CHENNAI] had occasioned to analyse the very same issue, where it was held that when High Sea Sales take place outside the territorial waters, it cannot be understood how such sales can be considered as an exempted service (trading) so as to fall within the ambit of Rule 2(e) of the CENVAT Credit Rules, 2004.
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When the alleged trading activity has occurred outside the jurisdiction of Central Excise authorities as well as Finance Act, 1994, the demand cannot sustain – appeal allowed – decided in favor of appellant. – E/41885/2018 – FINAL ORDER NO. 40414/2019 – Dated:- 7-3-2019 – Smt. Sulekha Beevi C.S, Judicial

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the demand amount along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand of ₹ 12,98,151/- along with interest and imposed equal penalty. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, the learned counsel Shri M. Karthikeyan submitted that the allegation is that the appellants have used common input services for trading (high-sea sales) and also manufacturing activity. He explained that the trading has occurred beyond the territorial jurisdiction of Central Excise authorities and, therefore, the said demand alleging that trading is an exempted service cannot sustain. He relied upon the decision of the Tribunal in the case of M/s. Rajpetro Specialities Pvt. Ltd., Vs The Principal Commissioner of GST & CE, Chennai North Commissionerate reported in 2019 (2) TMI 7 – CESTAT Chennai and the decision in the case of M/s. Ramboll Imisoft Pvt. Ltd. Vs Commissione

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, the discussions in para 6 of the said order is reproduced below:- The appellant is aggrieved by the rejection of refund claim. The allegation of the Department is that the appellant is engaged in manufacturing as well as trading activity and that common inputs/input services have been used for the manufacturing activity as well as trading activity. Since they did not maintain proper accounts they have to follow the procedure in Rule 6(3). As the appellant did not exercise option to reverse proportionate Credit, they have to pay an amount equal to 6% of the value of exempted services. The High Sea Sale transactions are considered by the Department to be trading activity falling within Rule 2(e) of CCR, 2004. The area beyond 200 nautical miles from the shore is called High Sea‟. The transaction of sale in such cases commences outside the territory of India and is also concluded outside the territory of India. If a buyer (importer) wants to sell the consignment to a third party be

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GST – States – S.O. 51 – Dated:- 7-3-2019 – COMMERCIAL TAX DEPARTMENT NOTIFICATION The 7th March 2019 S.O. 51, Dated 7th March 2019.- In exercise of the powers conferred by section 168 of the Bihar Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act) read with sub-rule (5) of rule 61 of the Bihar Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the Commissioner, on the recommendations of the

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GST – States – S.O. 50 – Dated:- 7-3-2019 – COMMERCIAL TAX DEPARTMENT NOTIFICATION The 7th March 2019 S.O. 50, Dated 7th March 2019.- In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 read with section 168 of the Bihar Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the details of outward suppli

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GST – States – S.O. 49 – Dated:- 7-3-2019 – COMMERCIAL TAX DEPARTMENT NOTIFICATION The 7th March 2019 S.O. 49, Dated 7th March 2019.-In exercise of the powers conferred by section 148 of the Bihar Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Governor of Bihar, on the recommendations of the Council, hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year, as the class of registered persons, who shall follow the special procedure as mentioned below for furnishing the details of outward supply of goods or services or both. 2. The said registered persons shall furnish the details of

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GST – States – S.O. 48 – Dated:- 7-3-2019 – COMMERCIAL TAX DEPARTMENT NOTIFICATION The 7th March 2019 S.O. 48, Dated 7th March 2019.-In exercise of the powers conferred by sub-section (2) of section 23 of the Bihar Goods and Services Tax Act, 2017 (12 of 2017)(hereafter referred to as the said Act ), the Governor of Bihar, on the recommendations of the Council, hereby specifies the following category of persons, as the category of persons exempt from obtaining registration under the said Act, namely,- Any person, who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, except, – (a) persons required to take compulsory registration under section 24 of the said Act; (b)

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GST – States – 2/2019- State Tax (Rate) – Dated:- 7-3-2019 – COMMERCIAL TAX DEPARTMENT NOTIFICATION The 7th March 2019 Notification No. 2/2019- State Tax (Rate) S.O. 47, Dated 7th March 2019.- In exercise of the powers conferred by sub-section (1) of section 9, sub-section (1) of section 11, sub-section (1) of section 16 of the Bihar Goods and Services Tax Act, 2017 (12 of 2017)(herein after referred to as the said Act ), the Governor of Bihar, on the recommendations of the Council, and on being satisfied that it is necessary in the public interest so to do, hereby notifies that the State tax, on the intra-State supply of goods or services or both as specified in column (1) of the Table below, shall be levied at the rate specified in the corresponding entry in column (2), subject to the conditions as specified in the corresponding entry in column (3) of the said table below, namely:- Table Description of supply Rate (per cent.) Conditions (1) (2) (3) First supplies of goods or service

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corresponding entry in column (2) of the said annexure. 2. Where more than one registered person are having the same Permanent account Number, issued under the Income Tax Act, 1961 (43 of 1961), State tax on supplies by all such registered persons is paid at the rate specified in column (2) under this notification. 3. The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax. 4. The registered person shall issue, instead of tax invoice, a bill of supply as referred to in clause (c) of sub-section (3) of section 31 of the said Act with particulars as prescribed in rule 49 of Bihar Goods and Services Tax Rules. 5. The registered person shall mention the following words at the top of the bill of supply, namely:- taxable person paying tax in terms of notification No. 2/2019-State Tax (Rate), dated 07.03.2019, not eligible to collect tax on supplies . 6. The registered person opting to pay State tax at the

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ation shall not include the supplies from the first day of April of a financial year to the date from which he becomes liable for registration under the Act. ANNEXURE Serial Number Tariff item, sub-heading, heading or Chapter Description (1) (2) (3) 1 2105 00 00 Ice cream and other edible ice, whether or not containing cocoa. 2 2106 90 20 Pan masala 3 24 All goods, i.e. Tobacco and manufactured tobacco substitutes 2. In computing aggregate turnover in order to determine eligibility of a registered person to pay State tax at the rate of three percent under this notification, value of supply of exempt services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, shall not be taken into account. 3. Explanation. -For the purpose of this notification, – (i) tariff item , sub-heading , heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapters specified in the First Schedule to the Cust

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2019 (3) TMI 449 – CESTAT CHENNAI – TMI – Withdrawal of SCN and issuance of fresh SCN for the same period – time limitation – Held that:- We do not understand how the department could withdraw the show cause notice and issue a fresh SCN case for the very same period. The Larger Bench in the case of Agauta Sugar Chemicals [2010 (9) TMI 16 – CESTAT, NEW DELHI] has considered the validity of show cause notice issued and adjudicated after the amendment in 2003 / 2004. It did not discuss a situation in which a fresh show cause notice is issued, where already show cause notice is pending. On perusal of the adjudication order, we do take note of the fact that the adjudicating authority has started the order by stating that the proceedings arise out of show cause notice dated 30.8.2001. However, in the operative portion, it is stated by him that this show cause notice stands abated and treated as withdrawn due to issuance of the show cause notice dated 27.10.2004.
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Show cause notice date

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n manufactured by them. The appellant did not pay service tax as a recipient of the service of erstwhile Goods Transport Operators Service during the period from 16.11.1997 to 1.6.1998. A show cause notice dated 30.8.2001 was issued for payment of service tax of ₹ 479,751/- under section 73(a) of the Finance Act, 1994 besides demand of interest and proposal to impose penalties under sections 76 and 77 of the Act ibid. The appellant had filed Writ Petition No. 27077/2003 before the Hon ble High Court of Madras against the letter dated 16.9.2003 issued by the department informing the appellant to pay up the demand raised in the show cause notice. The main contention taken in such writ petition was that there is no provision to demand tax on service recipient. Later, the said issue as to liability of service recipient to pay service tax reached the Hon ble Supreme Court and vide judgment in Laghu Udyog Bharati Vs. Union of India – 1999 (112) ELT 365 (SC). The Apex Court held that th

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cause notice dated 30.8.2001. Though it is noted that the proceedings arise out of show cause notice which was issued earlier, later in the operative portion of the order, it is stated that the proceedings initiated by show cause notice dated 30.8.2001 abates and are treated as withdrawn. That these are contradictory. She explained when the earlier show cause notice was issued there was no provision for fixing the liability on the service recipient to discharge the service tax. The liability to pay service tax as per statute was on the service provider. Later, the Service Tax Rules brought forth changes to treat the customer of goods transport operator as the person to pay the service tax. Thus it introduced liability for discharging service tax on the service recipient in the case of Goods Transport Operators Service. This was challenged before the Hon ble Supreme Court wherein the said Rule was held ultra vires. Thus the first show cause notice issued in 2001 is against law and ther

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issued invoking extended period. 3. Further, that even the retrospective amendment only validated the recovery of demand for which proceedings have been already initiated. In the present case, the show cause notice itself was issued when there was no authority to issue such notice and therefore the amendment will not help the department to contend that the second show cause notice is saved by the validation clause. The clause only validates the recovery of demand but does not give authority to issue fresh show cause notice for which an earlier show cause notice has already been issued. It is also submitted by her that various High Courts including the jurisdictional High Court has held that show cause notice issued in this regard outside the period between 10.9.2004 and 13.11.2004 were invalid. She relied upon the decision of the Hon ble Madras High Court in the case of PSL Ltd. in CMA No. 2637 of 2017 dated 23.10.2017. 4. The ld. AR Jagan Babu appeared and argued on behalf of the dep

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horized by the statute after its amendment and its collection from the recipients of the service is also authorized by the statute even for the past period by way of retrospective amendment. The Apex Court has upheld the validity of such retrospective amendment. Therefore the second show cause notice has been issued after the amendment which fixed the liability on the service recipient to pay the service tax. The second show cause notice being validated under the statute, the confirmation of demand and interest is legal and proper. 5. Heard both sides. 6. We do not understand how the department could withdraw the show cause notice and issue a fresh SCN case for the very same period. The Larger Bench in the case of Agauta Sugar Chemicals has considered the validity of show cause notice issued and adjudicated after the amendment in 2003 / 2004. It did not discuss a situation in which a fresh show cause notice is issued, where already show cause notice is pending. On perusal of the adjudi

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ax was to be collected from such person and in such manner as was to be prescribed and such person was to be treated as the person responsible for collecting the Service tax. (iv) By notification bearing No. 41/97-S.T., dated November 5, 1997, the levy was made effective from November 16, 1997. (v) By Notification bearing No. 42/97-S.T., dated November 5, 1997, Rule 2(1)(d)(xvii) of the Service Tax Rules, 1994 ( the Rules ) was made treating the customer of the goods transport operator as the person responsible for collecting the Service tax. 1998 (i) By notification bearing No. 49/98-ST dated June 2, 1998, exemption was granted in respect of goods transport service. (ii) By the Finance (No. 2) Act 1998, the provisions in the Act relating to levy of service tax on goods transport service were done away with. July 27, 1999 The Hon ble Supreme Court in Laghu Udyog Bharati v. Union of India – 2006 (2) S.T.R. 276 (S.C.) = 1999 (112) E.L.T. 365 (S.C.) held, inter alia, that Rule 2(1)(d)(xvi

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tor as the person liable to pay service tax to the credit of the Central Government. Section 71A was inserted making the customer liable to furnish service tax return within six months from the date on which the Finance Bill, 2003 received the assent of the President. The rule-making power under Section 94 was amended to include the making of rule for furnishing the return under Section 71A. (ii) Rule 7A was inserted in the Rules with effect from May 14, 2003 providing for furnishing of return by the customer of a goods transport operator for the period November 16, 1997 to June 2, 1998 within a period of six months from May 13, 2003 failing which the interest and penal consequences as provided in the Act were to follow. 2004 Section 73 was substituted by the Finance (No. 2) Act, 2004 with effect from September 10, 2004. Prior to the said substitution, it applied to a case where return was to be filed under Section 70 but not where it was to be filed under Section 71A. The substituted

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GST – F. No. 20/16/04/2018 -GST – Dated:- 7-3-2019 – Corrigendum to Circular No. 76/50/2018-GST F. No. 20/16/04/2018 -GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing New Delhi, Dated the 7th March, 2019 To, The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Central Tax (All) The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Corrigendum to Circular No. 76/50/2018-GST dated 31st December, 2018 issued vide F.No. CBEC- 20/16/04/2018-GST- Reg. Vide serial number 5 of Circular No. 76/50/2018-GST dated 31st December, 2018, it was clarified that the taxable value for the purposes of GST shall inclu

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f GST on Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961? 1. Section 15(2) of CGST Act specifies that the value of supply shall include any taxes, duties cesses, fees and charges levied under any law for the time being in force other than this Act, the SGST Act, the UTGST Act and the GST (Compensation to States) Act, if charged separately by the supplier. 2. It is clarified that as per the above provisions, taxable value for the purposes of GST shall include the TCS amount collected under the provisions of the Income Tax Act since the value to be paid to the supplier by the buyer is inclusive of the said TCS. Read 5. What is the correct valuation methodology for ascertainment of GST on Tax collected at source

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