Goods and Services Tax

Goods and Services Tax – Vires of Rule 89(5) of the Central Goods and Services Tax Rules, 2017 – denial of grant of refund of unutilized tax credit in respect of tax paid on input services – Notices i

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Goods and Services Tax – Started By: – Manjunath S – Dated:- 25-9-2018 Last Replied Date:- 31-10-2018 – Dear Experts, We are running a manufacturing industry, and we used to send following Capital items for the following reasons both intra & inter state frequently. Motors – for rewinding Iron Rolls – for grinding /rubberising or repair Drilling/cutting machines – for Repair My Quairy is: a) Are these works comes under job-Work ? b) Is it require to intimate department before sending these items for repair. ? c) Do we need to file ITC 4 for this ? Note: Apart from these capital goods, we are not sending any inputs or semi finished goods. Kindly guide us. Thanks is advance. Manjunath S – Reply By Arunachalam siva – The Reply = Sir, Sendi

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a Aggarwal – The Reply = Dear Sir, The term 'Job-work' has been defined under sub section 68 of section 2 of CGST Act, 2017 and the same is reproduced hereunder for the sake of ready reference:- (68) job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression job worker shall be construed accordingly; Further, the definition of term goods has been defined in sub section 52 of section 2 of CGST Act, 2017 and the same reads as under:- (52) goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or unde

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 25-9-2018 Last Replied Date:- 16-11-2018 – It is a growing trend now a days that more and more Indian students are opting for higher and technical education from foreign universities abroad and there are agencies who act as facilitators (intermediaries) between potential students and foreign universities. These promote courses of foreign universities in India, arrange or convince to students to join such courses and provide certain ancillary services to both, students as well as foreign universities. These services are in the nature of advisory and/or support services for which it receives consideration in convertible foreign exchange. According to general practice, there is service of promotion of the university courses among the prospective students and the service provider (agent of University) receives consideration for it as an independent service provider. Advance Ruling Since there was confusion prevalent on the

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gn University for these services rendered to prospective students. The Applicant, therefore, submits that the principal supply, therefore, is the service of promoting the courses of the Universities abroad and the services incidental thereto are naturally bundled to the composite supply of business auxiliary services. The applicant is not acting as an intermediary or agent in terms of section 2(13) of the IGST Act, as it supplies the main service (i.e. promotion of the University courses) on its own account. It does not facilitate provision of service by such Universities to the students. Its role is limited to only promoting the courses in India and thus, earns consideration out of it. According to assessee, the agreements between the Universities abroad and the Applicant clarify that the relationship between them is not one of Principal and Agent. This being the case, the place of supply should be the location of the recipient outside India in terms of Section 13(2) of the IGST Act.

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er and employee nor one of principal and agent. The agreement reveal that the main service provided by the applicant is facilitating recruitment of students and the consideration is paid as commission on the basis of course fee and recruitment through the applicant. Promotion of the courses is incidental to the above principal supply. While providing the above service the applicant is subject to audit by the University which includes fulfilling recruitment targets. If the students get enrolled directly by the University through distant education or online services, the Applicant will not be paid any consideration whether or not it has provided any promotional service. Apart from the above consideration received from the University, the Applicant is not allowed to receive any fees or charges from the students or deduct anything from the charges or fees payable by the students to the University. The AAR observed that the assessee is facilitating recruitment / enrolment of students to for

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GST Act. Place of supply of services shall be the location of service provider in India and it will not qualify as export of service. [In Re: Global Reach Education Services Pvt. Ltd. (2018) (2018) 4 TMI 808; ]. Appellate Advance Ruling The assessee was not convinced with the ruling and approached Appellate Authority (AAAR) against the ruling of AAR, West Bengal decided by AAAR on 24.07.2018. AAAR observed that the main responsibilities of education agent inter alia, included: promote the Courses of the University; find suitable Prospective Students to undertake Courses; in accordance with University procedures and requirements, recruit and assist in the recruitment of suitable students. The definition of 'intermediary' under Clause (13) of Section 2 of the Integrated Goods and Services Tax Act, 2017, reads as under: Intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securit

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ties, finds suitable prospective students to undertake the courses in accordance with University procedures and requirements, recruits and assists in recruitment of suitable students. Assessee to be considered as an intermediary in terms of section 2(13) of IGST Act, 2017, more so when he is not paid any consideration for services provided, if no student is admitted in the University. Services provided by University can not be treated as export of services as per section 2(6) of IGST Act, 2017 and are thus subject to levy of GST. Definition of intermediary under Service Tax and IGST Act are difficult and can not be considered as pari materia to earlier definition in place of provision of services Rules, 2012. Intermediary services may also include ancillary services. The AAAR, thus confirmed the advance ruling pronounced by AAR, West Bengal that the services in question were not export of services and were exigible to levy of GST under the GST laws. – Reply By Archna Gupta – The Reply

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Goods and Services Tax – Started By: – venkataraman swaminathan – Dated:- 25-9-2018 Last Replied Date:- 25-9-2018 – Dear Sir/ Good Morning We are doing job work by manufacturing activity on the goods supplied by our customer (ie.Principal Manufacturer) and we are paying GST for the job charges/labour charges collected from our customer. We are in Tamilnadu chennai., we are having HT Connection for our factory. We are filing GSTR-3B return . Query : Is it necessary to report / to show the electricity BILL amount ( Bill of TNEB/Tangedco + Outside electricity purchase by windmill) (monthly bill ) amount in our GSTR-3B return under Non-GST supplies/service. Presently we are not reporting this EB bill amount in our GSTR-3B monthly return. Need

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2019 (2) TMI 185 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – TMI – Works contract or not? – EPC Contract for electrical cable supply and laying work – whether can be classified as contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract or can be classified as works contracts as per GST Law? – N/N. 11/2017-Central Tax (Rate) dated 28th June 2017 as amended by notification Tax (Rate) dated 25th Jan 2018.
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Held that:- Works contract will be treated as service and tax would be charged accordingly. As per Section 2(119) of the CGST Act, 2017, unless the context otherwise requires, the term works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out,

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itation in holding that the applicant is supplying Works Contract Services. It is also apparent that the nature of the works undertaken by the applicant are not in the nature of ‘Original Works’ as per detailed discussions in the latter part of the findings.
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Works contract or not? – applicability of N/N. 11/2017-Central Tax (Rate) dated 28th June 2017 as amended by N/N. 01/2018-Central Tax (Rate) dated 25th Jan 2018 – Held that:- In the subject case it is seen that the applicant is providing composite supply of Works Contract in respect of Metro but the reduced rate of tax is available only if the work is of the type of ORIGINAL WORKS.
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Original Works would mean ; all new constructions; all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; erection, commissioning or installation on of plant, machinery or equipment or structures, whether pre-fabricated or otherwise, etc. In the present case the work done by

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i) of Notification No. 11/2017 dated 28.06.2017 as amended by Notification No. 1/2018 dated 25.01.2018 and attract GST (9% each of CGST and SGST). – GST-ARA-47/2018-19/B-120 Dated:- 25-9-2018 – SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 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 YOGIRAJ POWERTECH PRIVATE LIMITED, the applicant, seeking an advance ruling in respect of the following ISSUE. 1. Whether EPC Contract for electrical cable supply and laying work can be classified as contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of immovable property

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us- Statement of relevant facts having a bearing on the question(s) raised We have received order from Nagpur Metro Rail Corporation hereafter called as NMRCL for Shifting LT,HT O/H lines crossing and providing LT,HT U/G cables from Hingna Depot CH. 19500 to Ambazari Lake CH.12500 for Nagpur Metro Rail Project for E-W corridor . NMRCL Is a Special Purpose Vehicle (SPV) created for the smooth implementation and operations of the Nagpur Metro Rail Project & is a joint venture of Govt. of India & Government of Maharashtra, with 50:50 equity. NMRCL is incorporated by Govt. of India- Ministry of Corporate affairs. This work is awarded to us through tendering process and scope of work is described in work schedule attached to the tender. The work involves Supply, erection, testing and commissioning including transport, loading, unloading, insurance etc of transformer substation, HT & LT Overhead Line & Cable Through Underground, from RR Substation to metro Khapri station for

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ismantling, joints, earthing, stone, metal etc. are clearly incidental and ancillary to an identifiable main supply i.e supply of cable. In the above said case identifiable main supply particularly underground LT/HT cable and it can be moved/ shifted by excavation of earth and can be re-installed at other place. The cable is embedded in earth for safety of human and cable itself. The name of the work itself says Shifting & providing 315 KVA transformer substation HT & LT Overhead Line & Cable Through Underground, …. The said NMRCL department is insisting us to charge 12% GST as per the notification number 11/2017-Central Tax (Rate) dated 28th June 2017 as amended by notification no. 01/2018-Central Tax (Rate) dated 25th Jan 2018, treating above work as Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, or installation of original works pe

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e tender the work can not be classified as immovable property therefore it cannot be classified as works contract and hence it cannot be classified as service, thus the above said notification will not be applicable in this case. But it should be classified as Composite supply, as different goods and services vis. Testing, cable, wires, cement pipes, laying, joints, Insurance, commissioning, transport etc. which are naturally bundled and supplied in conjunction with each other, with principal supply being LT/HT Cable. Once it is classified as composite supply, rate of GST applicable to principal Supply will be applicable to whole composite contract, here the principle supply is L T/HT cable (item no. 1, 7, 10 Of work schedule) and rate of the same should be applicable to whole contract. NAGPUR METRO Name of Work:- Estimate No. NMRCL/U/S (ELE)/01-2015, CH 11040 to CH 16280 Shifting & providing 315 KVA transformer substation HT &LT Overhead Line & Cable Through Underground, 1

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0 A. complete erected in 14 gauge CRCA sheet box with supporting angles, self locks, gasket and slanting top to be erected on provided foundation as per per specification No. SW-SWR/MFP 2 Each 34752.00 69504.00 4. 16.3.4 Providing Cement concrete foundation for pump in with required size and length of foundation bolts and nuts (cost with required size and lengthf foundation bolts and nuts (cost with wooden box is included). 110 Cu.Mtrs 5673.00 624030.00 5. 18.1.41 Dismantling of KVA Distribution Transformer safely without any damages and storing it in safe place. 200 KVA 80.00 16000.00 6. 8.8.3 Dismantling the existing overhead line including G.I. wires of all sizes without damaging & making the coils in suitable sizes. 11.5 Km 816.00 9384.00 7. 7.5.16 Providing and erecting Heat shrinkable outdoor termination kit for 11kV (E) XLPE HT cable 3×240 to 300 sq. mm. with necessary material as per specification No. CB-JT/HT 72 Each 15127.00 1089144.00 8. 7.5.7 Providing and erecting Heat

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cing compound required to fill up the excavated earth with required quantity as per specification no EA-MOBI 5 Each 15764.00 78820.00 12. 9.1.3 Providing earthing with Galvanised cast iron earth plate size 60 x 60 x 0.6 cm with funnel with a wire mesh for watering and brick masonry block C.I. 76 cover complete with all materials, testing & recording the results as per specification No. EA-EP 76 Each 5495.70 417673.20 13. 5.9.6 Supplying & erecting 11 kV 630A, Indoor type Ring Main unit with 1 or 2 Incoming & 2 or 1 Outgoing with HRC fuses complete erected on provided cc foundation/ MS channels/trench, etc, in an approved manner as per specification no SW-HTS/RMU 7 Each 432050.00 3024350.00 14. 8.8.2 Dismantling the existing pole above 6 m height with brackets, clamps, insulators, stay from the cement concrete foundation and making the site clear by refilling the pits with excavated materials and bringing it to the ground level. 60 Each 615.00 36900.00 15. 10.2.18 Supplying

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ms. dia RCC Hume pipe with coupling collar of standard thickness at required depth up to 90 cms. below road / ground surface, for enclosing provided cable & necessary back filling with light ramming to make the road [ground surface as it was (Except bitumen carpet) 350 Mtr 751.00 262850.00 20. 7.6.8 Supplying & laying (including excavation) 25 cm Dia half round RCC Hume pipe of standard thickness at required depth up to 90 cms. below road / ground surface, for enclosing provided cable & necessary back filling with light ramming to make the road/ ground surface as it was (Except bitumen carpet). 9480 Mtr 577.00 5469960.00 21. 16.2.4 Providing and spreading stone metal 25mm size for 100 mm depth above the 1000 ground level. 1000 Cu m 66.00 66000.00 22. 16.5.15 Supplying and erecting ISI mark G.I. pipe 100 mm dia C class position with accessories. As per specification No. CWPLB/GP 372 Mtr 1821 677412.00 23. 16.3.6 Providing cement concrete for foundation or for concrete fillin

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ith cross 2 supports for legs, welded with 4 hooks and duly painted with one coat of red lead and two coats of silver paint. 2 Each 2972 5944.00 27. 10.2.24 Providing round bottom FIRE Bucket of 9 Litres capacity as per IS: 2546 made out of 24 gauge G.I. sheet with extra handle 18 at bottom duly painted white inside and red outside with FIRE Mark, on provided Stand/ wall hook. 8 Each 637 5096.00 28. 8.1.10 Supplying and erecting Rolled steel Joist (Girder) pole 100 x 116 mm (23 kg/ m) with provided base plate in provided foundation as per specification No. OHPL/RSJ 264 Each 1436 379104.00 29. 8.4.11 Supplying 100 x 50 mm with 4.7 mm thick web and 7.5 mm thick flange channel iron cross arm of suitable length for 2.4m wide DP structure and erecting on DP with 50×6 mm clamp as 18 Each 2174 39132.00 30. 16.3.3 Providing cement concrete foundation including excavation for the poles 60 cm x 60 Cm x deep 1/6 of pole length in 1:3:6 cement concrete (20 x 25 mm stone metal) and 45 cm x 45 cm x

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M.S. channel with working current of 15 Amps capacity complete erected on provided cross arm. 2 Set 9821 19642.00 34. 8.4.23 Supplying & erecting inline cut point end pole D.P. Structure for 200 KVA Transforme with R.S.J. Pole 2 Nos. of size 100 x 116 mm x 11 Mtr. Long with suitable Distribution Box of C.R.C.A. Sheet 16 SWG (size 4 SqMtr.) with 4 Pole MCCB 300 Amps as incomer & 6 Nos. 63 Amps Kitkat for outing circuits. Transformer D.P. Structure includes the A. B. Switch 200 Amps, D.O. fuse Set & LA. Set. 2 Nos. Top channel of size 100 mmx 50 mm for erection of A. B. Switch & 2 Nos. Base channel of size 100 mm x 50 x mm for erecting Transformer. Channel Of size 75 x40 mm for erecting DO. Fuse Set, LA., A.B. Switch handle etc. Angle of size 50 x 50 x6 mm for erecting Distribution Box, Transformer Belt tc.as per drawing(App.176 kg. iron work) with neccessary clamps, Nut-bolts. Vee cross arm, top clip, insulators etc. complete with caution board & barbed wire. D.P. S

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x 50 x6 mm for erecting Distribution Box, Transformer Belt etc.as per drawing(App. 176 Kg. iron work) with neccessary clamps, Nut-bolts. Vee cross arm, top clip, insulators etc. complete with caution board & barbed wire. D.P. Structure shall be erected in provided c.c. foundation 1 Each 130443 130443.00 37. 8.4.17 Supplying & erecting single pole cut point channel set of for 11 kV HTOH. Line. Two channel of size 100 x 50 mm 1.6 m Long having stud angle of size 50 x 50 x 6 mm 1.5 m long with top piece of size 100 x 50 mm 0.45 m. Long with necessary clamps, nut bolts etc. complete as per drawing. 1 Each 6364 6364.00 38. 5.9.1 Supplying and erecting approved make extendable / non- extendable type 11 kV, 630A, load break switch with fuses of required rating, on provided MS channels / trench / foundation in an approved manner as per specification no SW-HTS / LBS 3 Each 154214.00 462642.00 39. 7.3.27 Supplying, erecting & terminating PVC armoured cable 34 core 120 sq mm aluminiu

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contract for building, construction……………of immovable property should only be considered as works contract Immovable property is defined in section 3(26) of General Clauses Act, 1897 as follows: Immovable property shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth; Meaning of immovable property as per Section 3 of the Transfer of Property Act, 1882 does not include Standing timber, growing crops or grass. The Hon ble Supreme Court in the case of Commissioner of Central Excise, Ahmedabad Vs. Solid & Correct Engineering Works 2010 (252) ELT 481 = 2010 (4) TMI 15 – SUPREME COURT has with reference to case under Central Excise Act discussed the meaning of words immovable property which also confirms our view that only things permanently attached to the land which cannot be demolition can be considered as immovable property, merely attachment of the plant to the

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as excisable goods for imposition of central excise duty, the components, however, would be dutiable in the normal course. Here we would like to draw your attention to the fact that our scope of work does not include construction of entire project of Metro stations, railway line, power supply, civil structures etc. but scope include Shifting LT,HT Overhead lines crossing which are obstructing metro railway path and providing LT,HT underground cables for Nagpur Metro Rail Project. The work is not construction of metro rail project but this is shifting of existing utilities obstructing metro railway path and providing supplying and installation of new underground cable along with its accessories. Detail scope is already submitted in statement of facts submitted with application for advance ruling. (2) Huge tanks made of metal for storage of petroleum products in Oil refineries or installations. These tanks, though not embedded in the earth, are erected at site, stage by stage, and after

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entral Excise Tariff. (4) Lifts and escalators. (a)Though lifts and escalators are specifically mentioned in sub heading 8428.10, those which are installed in building and permanently fitted into the civil structure, cannot be considered to be excisable goods. Such lifts and escalators have also been held to be non-excisable by the Govt. of India in the case of Otis Elevators India Co. Ltd. reported in 1981 ELT 720 (GOI) = 1981 (7) TMI 70 – GOVERNMENT OF INDIA. Further, this aspect was also a subject matter of C&AG s Audit Para No 7.1(b)/98-99| DAP NO 1867 which has since been settled by the C&AG accepting the Board s view that such lifts and escalators are not excisable goods. Also refer CCE vs Kone Elevators India Ltd reported in 2001 (45) RLT 676 (CEGAT- Chen) = 2001 (6) TMI 142 – CEGAT, CHENNAI Thus we are of the opinion that our work does not fall under the term works contract and we agree with the opinion expressed by Dy Commissioner State Tax vide letter dated 30th July

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eir questionnaires as a jurisdiction officer as under. Applicant have raised following questions 1. Whether EPC Contract for electrical cable supply and laying work can be classified as contract for building, construction, fabrication, completion, erection, installation, fitting qut, improvement, modification, repair, maintenance, renovation, alteration or commissioning of immovable property wherein transfer of property in goods (whether as goods or in some Other form) is involved in the execution of such contract. As per information provided by applicant, The applicant received order from Nagpur Metro Rail Corporation hereafter called as NMRCL for Shifting LT,HT O/H lines crossing and providing LT,HT U/G cables for Nagpur Metro Rail Project . NMRCL Is a Special Purpose Vehicle (SPV) created for the smooth implementation and operations of the Nagpur Metro Rail Project and is a joint venture of Government of India & Government of Maharashtra, with 50:50 equity. NMRCL is incorporated

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the nature of main supply would get affected. Now as per Section 2(119) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term. works Contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract So as to qualify as works contracts work there should be of transfer of property in goods of immovable property is necessary. The Hon ble Supreme Court in the case of Commissioner of Central Excise, Ahmedabad vs. Solid & Correct Engineering Works 2010 (252) ELT 481 = 2010 (4) TMI 15 – SUPREME COURT has with reference to case under Central Excise Act discussed the meaning of words immovable property . The Court has observed in paras 18 and 19 Of the judg

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he case of walls or buildings or (c) attached to what is imbedded for the permanent beneficial enjoyment of that to which it is attached. Attachment of the plant in question with the help of nuts and bolts to a foundation not more than 11/2 feet deep intended to provide stability to the working of the plant and prevent vibration/wobble free operation does not qualify for being described as attached to the earth under any one of the three clauses extracted above. That is because attachment of the plant to the foundation is not comparable or synonymous to trees and shrubs rooted in earth. It is also not synonymous to imbedding in earth of the plant as in the case of walls and buildings, for the obvious reason that a building imbedded in the earth is permanent and cannot be detached without demolition. Imbedding of a wall in the earth is also in no way comparable to attachment of a plant to a foundation meant only to provide stability to the plant especially because the attachment is not

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ting the same with the help of the crain without damaging the same. It is Very clear that material is not installed for beneficial enjoyment of land but it is installed for more beneficial use of that material itself. Section 2(30) defines composite supply as supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply Thus going through the above facts it is crystal clear that above said supply (activity) constitutes composite Supply and not a works contract. Thus in my humble opinion in the above said work that there is no transfer of immovable property involved and thus the above work cannot be considered as contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, reno

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ng to immovable property can be classified as works contracts and thus the above said work does not fall in ambit works contract but it is composite supply of various items mentioned in work schedule submitted. Thus the said work can not be classified as works contract and the said notification is not applicable to the applicants case. Thus going through the above facts it is clear that the above said supply (activity the dealer does not amounts works contract but said supply constitutes composite supply only Hon. Forum is humbly requested to admit the application for Advance ruling and consider the above submission while disposing the application of the dealer. 04. HEARING The case was taken up for Preliminary hearing on dt. 31.07.2018 when Sh. Sidharth Bodas, C.A. along with Sh. Ravindra Nene, M.D. appeared and requested for admission of application as per contentions in their ARA. Jurisdictional Officer, Sh. S. B. Mohite, Dy. Commr. of S.T.(E-009) Raigad division, Navi Mumbai appear

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rance etc of transformer substation, HT & LT Overhead Line & Cable through Underground, for the Metro Rail Project. In the tender/ work order, the work schedule separately describes each activity to be carried out to complete the work and also rate for each activity is separately mentioned, by adding amount of each activity total estimated tender cost is derived and they have quoted in percent % above or below of the estimated cost. Thus they had no option to quote the individual prices for each activity and the tender had to be accepted as a whole and they could not accept part activities. They have further stated that NMRCL department is insisting them to charge 12% GST as per Notfn. No. 11/2017-C. T. (Rate) dated 28th June 2017 as amended by Notfn. NO. 01/2018-C.T. (Rate) dated 25th Jan 2018, treating above work as Composite supply of works contract as defined in clause (119) of Sec. 2 of the CGST Act, 2017, supplied by way of construction, erection, commissioning, or instal

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ding intended for sale to a buyer, wholly or partly, b. works contract including transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract Hence Works contract will be treated as service and tax would be charged accordingly. As per Section 2(119) of the CGST Act, 2017, unless the context otherwise requires, the term works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract Thus what we need to find out is whether the applicant in the subject case is dealing in any immovable property which is transferred in the execution of the contract. The applicant has submitted Schedule B in respect of the work allotted to them by NAGPUR METRO.

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xide and two coats aluminum paint. 5. Supplying & laying (including excavation) 15 cms. dia RCC Hume pipe with coupling collar of standard thickness at required depth up to 90 cms. below road/ ground surface, for enclosing provided cable & necessary back filling with light ramming to make the road/ ground surface as it was (Except bitumen carpet) Section 3(26) of General Clauses Act, 1897 defines Immovable property as follows: Immovable property shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth; a. It is evident from (1) above that they are providing cement concrete (cc) foundation for pump and the pump is attached to the CC foundation with nuts and bolts. It is very clear that the CC foundation is permanently fastened to earth and the pump is attached to it. b. Itis evident from (2) to (4) above that, they are Supplying & erecting 11 kV 630A, Indoor type Ring Main unit With 1 or 2

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t is it? This clearly satisfies the condition of being attached to earth. The pipes are fixed underneath the ground level underground, covered with filling and in such case it is clear that the said pipes are meant to be affixed permanently underneath the ground and therefore cannot be considered as a movable property. We further find from the work schedule submitted by the applicant that their work involves supply, erection, testing and commissioning including transport, loading, unloading, insurance etc of transformer substations, HT & LT Overhead Line & Cable Through Underground. Their EPC contract for electrical cable supply and laying work can be classified as contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution o

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ruction service) (i) ……………………………..) 9 – (ii) Composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017. 9 – (iii) construction services other the (i) and (ii) above. 6 – Hence as per the said Notfn it is very clear that the composite supply of works contract as in the subject case falls under (ii) attracting 18% GST. The said Notification was amended on 22.08.2017 vide Notfn No. 20/2017 – Central Tax (Rate) and is reproduced as under:- Sl.No. Chapter, Section or Heading Description of Service Rate (per cent) Condition 1 2 3 4 5 Chapter 99 All Services Section 5 Construction Services Heading 9954 (Construction service) (i) ……………………………..) 9 – (ii) Composite supply of works contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017. 9 – (iii) Compo

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der the Housing for All (Urban) Mission/Pradhnn Mantri Awas Yojana,……….; (d) a civil structure or any other original works pertaining to ………….. under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana; (e) a pollution control or effluent treatment plant,…………. 6 (v) Composite supply of works contract as 6 defined in clause. (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, or installation of ORIGINAL WORKS pertaining to, (a) railways, excluding monorail and metro………. 6 (vi) Construction services other than (i), (ii), (iii), (iv), (v) and (vi) above. 6 As per the said Notfn with the amendment mentioned above also it is very clear that the composite supply of works contract as in the subject case falls under (ii) attracting 18% GST. The said Notification 11/2017 was further amended on 21.09.2017 vide Notfn No. 24/2017-Central

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thority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of – (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or (c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017 6 (vii) Construction services other than (i), (ii), (iii), (iv), (v) and (vi) above. 6 Vide amendment Notfn No. 31/2017, dated 13.10.2017 and 46/2017 dated 11.11.2017, the original Notfn No. 11/2017 stood as under:- Sl.No. Chapter, Section or Heading Description of Service Rate (per cent) Condition 1 2 3 4 5 Chapter 99 All Services Section 5 Co

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contract as defined in clause 119 of section 2 of Central Goods and Services Tax Act, 2017 provided to the Central 6 Government, State Government, Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of – (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(iii) an art or cultural establishment; or (c) a residential complex predominantly meant for self-use or the use of their employees or other persons specified in paragraph 3 of the Schedule III of the Central Goods and Services Tax Act, 2017 6 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Cent

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orks would mean ; all new constructions; all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; erection, commissioning or installation on of plant, machinery or equipment or structures, whether pre-fabricated or otherwise, etc. In the present case the work done by the applicant does not appear to be original works. The applicant themselves have stated that Here we would like to draw your attention to the fact that our scope of work does not include construction of entire project of Metro stations, railway line, power supply, civil structures etc. but scope include Shifting LT,HT Overhead lines crossing which are obstructing metro railway path and providing LT,HT underground cables for Nagpur Metro Rail Project. The work is not construction of metro rail project but this is shifting of existing utilities obstructing metro railway path and providing supplying and installation of new underground cable along with its acce

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ding, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of immovable property wherein transfer of property in goods (Whether as goods or in some other form) is involved in the execution of such contract. Answer:- Answered in the affirmative. Question 2:- Whether these contracts can be classified as works contracts as per GST Law and whether notification no. 11/2017-Central Tax (Rate) dated 28th June 2017 as amended by notification no.01/2018-Central Tax (Rate) dated 25th Jan 2018 is applicable to the present case? Answer:- In view of the discussion above these contracts are classifiable as Works Contract as per GST Law and Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017 as amended by notification no.01/2018-Central Tax (Rate) dated 25th Jan 2018 is applicable to the present case but the rate of GST @18% would be applicable in respect of applicant as per det

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Customs – PUBLIC NOTICE NO.- 35/2018 – Dated:- 25-9-2018 – OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS CUSTOM HOUSE: PORT AREA: VISAKHAPATNAM – 530 035 F. No. P3/06/2017-Stats(AM).Pt.II Date: 25.09.2018 PUBLIC NOTICE NO.- 35/2018 Sub: Sanction of pending IGST refund claims where the records have not been transmitted to from the GSTN to DG system-Reg. Kind attention of all exporters, Customs Broker, the members general trade and other stake holders is invited to the resolution provided for IGST Refund vide this office s Public Notices 21/2018 dt 31.05.2018 in terms of Board Circular No. 12/2018 dt 29.05.2018 wherein the records were not transmitted from GSTN to Customs due to mismatch in GSTR 1 and GSTR 3B. The interim solution was subj

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Customs – PUBLIC NOTICE NO. 31/2018 – Dated:- 25-9-2018 – OFFICE OF COMMISSIONER OF CUSTOMS, NEW CUSTOM HOUSE, KANDLA-370 210 Phone No. 02860-271468/469, FAX NO. 02836-271467 E-mail- commr-cuskandla@nic.in F. No. S/20-72/PN/IGST Ref/AG/2017-18 Dated: 25.9.2018 PUBLIC NOTICE NO. 31/2018 Subject: Formation of IGST Refund helpdesk- reg. Attention of all Importer/ Exporter, Custom Brokers, Members of the Trade and all other concerned is invited to this office Public Notice No. 1/2018 dated 16.1.201

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Customs – 23/2018 – Dated:- 25-9-2018 – OFFICE OF THE COMMISSIONER OF CUSTOMS: BENGALURU CITY COMMISSIONERATE P.B. NO. 5400: C.R. BUILDING, QUEEN'S ROAD, BENGALURU-5600 001 C.NO.VIII/09/09/2018 City Cus.Tech-PN Dated: 25.09.2018 PUBLIC NOTICE NO. 23/2018 Subiect: Sanction of pending IGST refund claims where the records have not been transmitted from the GSTN to DG Systems Reg. Attention of all Customs Brokers, Exporters, Importers, Members of the Trade and other stake holders is invited to

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2018 (12) TMI 844 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – TMI – Classification of services – Rate of GST – Composite supply of works contract – MEP activities (Mechanical, Electrical & Plumbing Works) undertaken by the Applicant – whether taxable at 12% or otherwise? – benefit of Central Tax (Rate) Notification No. 01/2018 dated 25th January 2018 – supplies are in relation to an housing project enjoying Infra status – F No 13/6/2009-INF dated 30th March 2017 of Government of India – compete installation testing and commissioning and satisfactory handing order of substation electrical works, HT & LT cabling works, DG and cabling works, street light and cabling.
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Held that:- The contract like the one at hand which includes Design, engineering, work laying of RCC Hume pipe/GI pipe etc. for storm waterline and construction of chambers involves more than two taxable supplies in the nature of resources, material and machinery – large number of service receivers of such bundle of

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tract pertaining to immovable property within the scope of section 2(119) of the GST Act.
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Compete installation testing and commissioning and satisfactory handing order of substation electrical works, HT & LT cabling works, DG and cabling works, street light and cabling – Held that:- The applicant would be required to do various acts which includes design, supply, installation and commissioning of substation that is electrical infrastructure. This is also a turnkey project contract like plumbing contract discussed in the earlier part of this ruling – electrical contract which involves supply of taxable goods and services is a composite supply as defined u/ s 2(30) of the GST Act and the said composite supply is works contract as defined u/ 2(119) Of the CST Act.
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Rate of GST – MEP (Mechanical, Electrical & Plumbing Works) activities by availing the benefit of Central Tax (Rate) Notification No 01/2018 dated 25th January 2018 – taxable at 12% or not? – Held that:- The applican

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S PVT LTD, the applicant, seeking advance ruling respect of the following questions. 1) Whether MEP activities (Mechanical, Electrical & Plumbing Works) undertaken by the Applicant falls within the definition of composite supply of works contract as defined under Section 2(119) of CGST Act?? 2) Whether can the applicant charge GST rate of 12% on MEP (Mechanical, Electrical &Plumbing Works) activities by availing the benefit of Central Tax (Rate) Notification No. 01/2018 dated 25th January 2018, if the said supplies are in relation to an housing project enjoying Infra status vide F No 13/6/2009-INF dated 30th March 2017 of Government of India, in Ministry of Finance, Dept. of Economic Affairs? 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

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de MEP services for an affordable housing project. The said housing project satisfies the definition of affordable housing described in Notification no 13/6/20091NF dated 30th March, 2017 by Ministry of Finance, Department of Economic Affairs thereby enjoying the Infra status within the meaning of Central Tax (Rate) Notification No. 01/2018 dated 25th January 2018. By conjoint reading of Notification No 20/2017-Central Tax (Rate) dated 22nd August 2017 and notification No 01/2018 dated 25th January 2018 as amended by inserting therein in Item No (v) new sub item (da) it is apparent that Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, or installation of original works pertaining to, (da) low-cost houses up to a carpet area of 60 square meters per house in an affordable housing project which has been given infrastructure status vide notification of Governm

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te supply of Works contract? In reply to the above we state that, as per the draft contracts agreement for Electrical & Plumbing works to be undertaken by us and submitted in this behalf to the GST Dept. on 08.08.2018, the scope of work for electrical contract includes complete installation, testing & Commissioning of Substation Electrical Work, HT & LT Cabling work, DG & Cabling Work, Street light & Cabling Works whereas the scope of work for plumbing contract includes complete external plumbing work, laying of RCC hume pipes/Gl pipes/UPVC Pipes for storm water lines, construction of chambers. With reference to section 3(26) of General Clause Immovable Property is defined as Land, benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth. Further Works Contract as defined in clause (119) of Section 2 of the CGST Act 2017, means a contract for building, construction, fabrication, completion, erection, i

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nary course of business, and hence they together form a composite supply within the meaning of Section 2 (30). B) In reply to second question on whether can the applicant charge GST Rate of 12% on MEP activities by availing the benefit of central tax rate Notification No 01/2018 dated 25th January, 2018 under sub item (da) in item (V) under serial no 3 of the said notification, the department replied that the benefit of this notification is in respect of Original Works and the same is defined under S no 2(zs) of Notfn No 12/2017 CT(rate) dated 28.06.2017 as under Original Works means-all new constructions; l) All types of additions & alterations to abandoned or damaged structure on land that are required to make them workable; Il) Erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise. The department s contention is that the aforesaid activities cannot be termed as Original Works which is impractical. All the abov

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s Tax Act, 2017, supplied by way of construction, erection, commissioning, or installation of original works pertaining to, (a) Railways, including monorail and metro; (vide notification No. 1/2018 central Tax rate dated 25/01/2018 excluding deleted and replaced by including) (b) A single residential unit otherwise than as a part of a residential complex; (c) low-cost houses up to a carpet area of 60 square meters per house in a housing project approved by competent authority empowered under the Scheme of Affordable Housing in Partnership framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India; (d) Low cost houses up to a carpet area of 60 square meters per house in a housing project approved by the competent authority under (1) The Affordable Housing in Partnership component of the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana; (2) Any housing scheme of a State Government; (e) Post-harvest storage infrastructure for agricultural produce inclu

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course of business, one of which is a principal supply; Illustration:- Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is the principal supply. b) Works Contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, the term works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. c) The definition of Original Works as defined in at S. No. 2(zs) of Notification No. 12/2017-Central Tax(rate) dated 28 06.2017 is as under; Original Works means- all new constructions; I) all types of additions and alterations to abandoned or damaged structures on

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inition of Immovable property as defined u/Section 3(26) of the General Clause, Immovable property shall include land, benefits to arise out of land, and things attached to the earth or permanently fastened to anything attached to the earth. If the aforesaid works become immovable property as permanently fastened to the building attached to Earth & transfer of property is involved in execution of contract then it will fall within the definition of Works Contract. In the opinion of this office as per the definition of composite Supply in the instant case two or more works contract supplies which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply has to be made by the applicant. So if the combination of the services provided by the applicant are covered under the definition of works contract and simultaneously is also covered under the definition of composite supply then it will fall within the defi

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Original Works viz. New construction or addition / alteration to abundant or damaged structure on land or erection commissioning or installation of plants, machinery or equipment or structure whether pre-fabricated or otherwise. Hence, prima facie, it appears that the applicant is not entitled to avail the exemption GST rate of 12% on MEP activity. Therefore, if the combination of the services provided by the applicant are covered under the definition of works contract and simultaneously is also covered under the definition of composite supply then only the applicant will be eligible to charge CST rate of 12% on MEP by availing the benefits of Central Tax-Rate Notification No. 01/2018 dated 25th January 2018 subject to fulfilment of other conditions of the notification. Additional submissions given by the Officer- Please refer to this office letter of even no. dated 30.07.2018 and letter dated 14.08.2018 received from M/s. Eiffel Hills and Dales Developers Pvt. Ltd. on the above menti

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ontract, for the proposed substation electrical works, HT & LT Cabling works, DG & Cabling works, Street Light & Cabling. a. Basic rate for each item is mentioned in Annexure-II. In case of any deviation in specification, Contractor has to seek prior written approval from Client. b. Contract shall submit all the quotes from Vendors to our Purchase dept. c. Purchase Dept. shall verify and approve the rate of the item. d. After, the above approval Contractor shall procure and install the item at site. e. Contractor shall raise bill for the same item with basic landed approved rate (excluding GST) plus 5% for handling charges. f. It shall be mandatory for the Contractor to seek approval from the client for each & every lot of Procurement of all the items & also for which the basic rates has been mentioned in Annexure-II. g. Any variations in the basic rates of the items will be paid or debited – as the case may be – to the Contractor accordingly upon the completion of

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te Supply means a supply made by a taxable person to a recipient comprising two or more supplies of goods or services, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. There are following elements to be present to qualify as such for composite supply 1. There should be two or more taxable services. 2. They should be naturally bundled. 3. Supply in conjunction with each other, 4. in the ordinary course of business; 5. one of which is a principal supply. It is observed that in the ordinary course of business , the customer controls only the quality of that goods and services and the timelines Of the project. However, the quantity of the goods is left to the control of the Contractor. But in the instant case, as per the Service Work Order, they are controlling both. As per Annexure 1 they are billing the goods and labour cost separately. Hence, these are two different

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vided by the suppliers. Also there are materials supplied by the client free of cost and the rates have been worked out at actual cost of material with 15% profit on material + labour + 3% Overheads & Wastages (where M = Material component & L = Labour component). Therefore, these works orders are for supply of material and supply of labour, Hence, the said contract cannot be termed as composite supply. Q2. Whether can the applicant charge GST rate of 12% on MEP (Mechanical, Electrical, plumbing Works) activities by availing the benefit of central Tax rate notification No. 01/2018 dated 25th January, 2018, if the said supplies are in relation to an housing project enjoying infra status vide F. No. 13/6/2009-INF dated 30th March 2017 of Government of India, In Ministry of Finance, Department of Economic Affairs? Comments: The supply made by the applicant cannot be treated as composite supply as explained above in r/o Question No. 1, the applicant is not entitled to avail the exe

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on transactions effected which would be on the lines thus – We have been informed of the activities carried on by the applicant which include design, engineering, supply, installation and commissioning of plumbing, firefighting and electrical infrastructure to a wide range commercial project. Applicant in furtherance of business has entered into an agreement that is draft contract agreement with a Developer/ Builder for electrical and plumbing work. Applicant has raised question on the basis of the draft agreement and by virtue of activity of the applicant claimed as covered by the scope of Notification No. 20/2017-Central Tax (Rate) dated 22/08/ 2017 and Notification No. 1/2018 dated 25th January 2018 as amended by inserting therein in item No (V) a new subitem (da) whereby composite supply of works contract as defined in clause (119) of section 2 of GST Act, supplied by way of construction, erection, commissioning, or installation of original works pertaining to, (da) low-cost houses

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, pipes for electrical cabling work, construction of chambers in External development of________project. This has reference to your final offer dated_______regarding the External plumbing work at________ and subsequent discussion with you in presence of our Director Projects during the meeting, we herewith confirm our intention of awarding the subject matter work to your esteemed organization at the rates mentioned herein below for the specifications mentioned therein for above said works. Agreed Rate & Contract Value: – Total Value of the Contract awarded is Rs____plus GST (as applicable). Contractor shall study the detailed drawing / BOQ & site topography and revert with the final BOQ in consultation with our MEP head Mr. Prince -______, in 7 working days after receipt of LOI/ WO; we shall thereafter convert the work order on Lumsum basis. The Contract Value is arrived based on the present tax structure prevailed as on date. However, any new levy of taxes or change in present

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easonable facility to any other agency employed by the Company for carrying out of works relating to civil works, installations and other ancillary works if any, during the duration of the contract, excluding the defect liability period in the manner laid down in the said terms and conditions and shall make good any damages, etc., after the completion of such work 5. The responsibility of maintaining and security of client supplied material and assets shall lie with the Contractor. 6. Dewatering from Footing Pits or trenches will be in the scope of the Contractor. 7. Before commencing the Work, Contractor shall submit QAP (Quality assurance Plan) to the Client. 8. It is mandatory & binding upon the Contractor to fill the cubes (at least 06 Nos.) at site during every concrete pouring (for RCC Footings, Columns, Plinth Beams, Shear Walls, Slab, etc.) & shall submit the Cube Testing Reports after 7 days. 14 days & 28 days to the Client. 9. Contractor shall have strict vigilanc

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production of signed documents in original recorded jointly, by the Contractor with the authorized representative of the Client, along with proof of payments made by the Contractor during such period from time to time 13. The Shuttering design shall be prepared & submitted to the Client upon receipt of the approval from the Structural Consultant, prior to the commencement of the RCC works. 14. Contractor shall consider basic rate of Cement (OPC-53G / Vasavdatta OR equivalent) @_______F.O.R. at Site. Billing and Payment Terms:- This contract is Item Rate labour plus material contract. A contract to carry out work in respect of the scope of work defined in the said conditions in the Tender document as modified by this Work Contract to be paid for according to actual measured quantities at the rates contained in the schedule, as per Annexure-A . R.A. Bill and Final Bill:- 1. Contractor is entitled to submit his R.A. Bill on Milestone basis duly defined & mutually agreed while sig

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ion of work. Execution of Extra items/ Deviated items:- 1. The rates for deviated or extra items shall be derived from the Tender item rates as far as possible. 2. if the items of work are absolutely new, then the rate shall be worked at actual cost of materials with 15% profit on material + labour + 3 % Overheads & Wastages (where M = Material component & L = Labour component). 3. If for such extra items any material supplied by the Client free of cost than 5% on such free supply material shall be considered towards overheads and profit element. 4. The Contractor shall submit the Rate Analysis of such items along with the material bills. However, before execution of such items, prior approval in writing shall be obtained from Client in respect of rates, quantity etc. 5. In case of requirement of any items other than the scope of work of this contract to complete the work, the same shall be approved by client engineer in writing to the Contractor. Contractor shall bring the sam

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omponent then Contractor will be asked to execute the Contract accordingly with fixed pre-defined prices of required material component as finalized by the client, to be procured from client defined Contractor and with the following terms and conditions :- 1. Your contract is finalized on the basis of [(Material + 15% profit on Material) + labour + 3% Overheads & Wastages.] 2. Material component is to be derived on the basis of material indicated in item description & Other miscellaneous material required to complete work even if not indicated in item description. 3. Take of sheet of the Material, based on GFC drawing, required to complete the work in all respect, mutually agreed by both the Contractor & the Client shall be considered as the basis for arriving at Material Cost. 4. Basic rates of materials shall be indicated by client along with list of approved Contractors for 30 days payment credit. 5. Any variation in basic rate beyond a limit of (+/-) 5% due to market fl

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plete installation, Testing & Commissioning & satisfactory handing over work of Substation Electrical work, HT & LT Cabling work, DG & Cabling Work, Street Light & Cabling Works at_____ This has reference to your quotation dated______& subsequent discussion we had dated ______ we are pleased to confirm our intention Of awarding the subject matter work to you on the terms and conditions broadly depicted herein the succeeding paragraphs. 1. Contract Type:- The Contract shall be divided into two types: TYPE- I – (Material supply, Installation, testing & commissioning) This shall be purely a Item rate with Material plus Labour basis Contract for the proposed Substation electrical works, HT & LT Cabling works, DG & Cabling works, Street Light & Cabling, wherein, the Contractor shall execute an awarded Scope of Work – duly defined herein, as per the respective clauses – wherein, it is expected to carry out the complete installation so as to satisfactor

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of Work:- The Scope of Work for the Electrical Infra Works shall comprise of the following and as mentioned in attached Annexure I- Bill of Quantities :- a. Based on our mutually agreed terms, we will provide an ample storage space within the site premises. You need to ensure that the material procured & delivered at the work site under every lot shall be thus kept / properly stacked within the storage space defined & provided by the Client including an aid for its proper Lock & Key arrangement & which shall be dedicatedly controlled, operated & thoroughly secured by you & your team on day to day basis until the satisfactory completion & handing over of the awarded scope of work With due material reconciliation. Any pilferage, misplace or theft of the Client supplied material, which shall be further issued & kept under your control & custody shall be the sole responsibility of the Contractor & under such scenario, Contractor shall make amend for

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d works in Type – I Contract, for the proposed Substation electrical works, HT & LT Cabling works, DG & Cabling works, Street Light & Cabling. a. Basic rate for each item is mentioned in Annexure-Il. In case of any deviation in specification, Contractor has to seek prior written approval from Client. b. Contractor shall submit all the quotes from vendors to our Purchase dept. c. _____Purchase Dept. shall verify and approve the rate of the item. d. After the above approval Contractor shall procure and install the item at site. e. Contractor shall raise bill for the same item with basic landed approved rate (excluding GST) plus 5% for handling charges. f. It shall be mandatory for the Contractor to seek approval from the Client for each & every lot of Procurement of all the items & also for which the basic rates has been mentioned in Annexure-II. g. Any variations in the basic rates of the items will be paid or debited – as the case may be – to the Contractor accordin

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se of the following and as mentioned in attached Annexure B Bill of Quantities :- a. Based on our mutually agreed terms, we will provide & handover to you an ample storage space within the site premises. You need to ensure that the material procured & delivered at the work site under every lot shall be thus kept / properly stacked within the storage space defined & provided by the Client including an aid for its proper Lock & Key arrangement & which shall be dedicatedly controlled, operated & thoroughly secured by you & your team on day to day basis until the satisfactory completion & handing over of the awarded scope of work with due material reconciliation. Any pilferage, misplace or theft of the Client supplied material, which shall be further issued & kept under your control & custody shall be the sole responsibility of the Contractor & under such scenario, Contractor shall make amend for such losses & shall ensure that the same shall

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y GFC shop drawings to the Client. In the absence of the same, Client determined methodology and schedule of completion shall be treated as final & mandatorily binding upon the Contractor. 6. R.A. Bill and Final Bill:- a. Contractor shall have to submit two types of separate bills for respective Contract type. Cumulative amount shall be calculated for each bill for tracking purpose. b. Contractor is entitled to submit his R.A. Bill on Monthly basis based on the work progresses at the work site & at the rate not more than I bill/ month, before 10th of every month. On receipt of such R.A. Bill and after its assessment, due payment – after keeping aside retention – will be made within 15 days starting from date of receipt of certified invoice / bill at our Head Office. c. Similarly upon satisfactory completion of awarded work, Contractor shall submit Full and Final Bill duly supported by all requisite measurements, reconciliation statement for Client supplied material and Statemen

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an enclosure with each Milestone Bill as mandatory submittals. In the event if the Contractor fails to satisfy Clients / Consultants in achieving good quality of work, desired speed of work and overall timely execution of the project then the client has full rights to terminate the contract by issuing a termination notice 7 days in advance. Client also reserves the right to get part or whole work done through any other agency at Contractors sole risk and cost and Consequences. 22. General Conditions & Special Conditions of Contract (GCC &SCC) a. Coordination with Client, Architect, Consultants, Project Manager, etc.; wherever applicable shall be the integral part of Contractors Scope of Work. However the Client shall extend his full co-operation to this effect in the interest of timely completion of the project. b. The Contractor shall afford every reasonable facility to any other agency employed by the Company for carrying out of works relating to civil works, installations a

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nure of the Contract & the Contractor is not liable to claim any escalation under whatsoever circumstances. f. Points discussed & mutually agreed & duly signed by both the parties hereinafter, from time to time, during the meetings pertaining to this Work Contract & thus transformed into M.O.M.(Minutes of Meeting) shall form the part of this Contract & treated as an Addendum to this Work Order. We find that in view of above facts we have to decide whether the plumbing work undertaken by the applicant falls within the definition of supply of Works Contract. The GST Act provides definition of Composite Supply which is as below: S.2(30) of the Act, composite supply means a supply made by a taxable person to a recipient consisting, of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Illustra

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s per Section 2(119) Of the Act, works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. We understand the expression Works Contract as is essentially a contract of service which may also involve supply of goods in the execution of the contract. It is basically a composite supply of both goods and services. In a general sense, a contract of works, may relate to both immovable and movable property. But from the perusal of above definition it can be seen that the term works contract has been restricted to contract for building, construction, fabrication, repair etc. of any immovable property only. In this view of the matter we have to decide whether the draft/proposed plumbing contract o

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ugh the relevant clauses of the draft contract we are not inclined to agree with the jurisdictional officer that there is separate supply of goods and services. We observe that all the activities to be undertaken by the applicant pursuant to agreement are integral parts of the performance of the contractual obligation by the applicant. In order to comply with the contractual obligation cast on the applicant, the applicant would be required to do various acts as per the scope of work. In our view, the acts to be committed by the applicant cannot be divided into two parts, namely supply of goods and services which are in fact inseparable. Accordingly we reject the contention of the jurisdictional officer and reiterate our stand that the plumbing contract is indivisible works contract pertaining to immovable property within the scope of section 2(119) of the GST Act. We now take up second contract comprising of compete installation testing and commissioning and satisfactory handing order

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an housing project enjoying Infra status vide F No 13/6/2009-INF dated 30th March 2017 of Government of India, in Ministry of Finance, Dept. of Economic Affairs? With respect to this question applicant was specifically informed during the course of hearing to submit document such as agreement, total area and area per dwelling etc. However, we observe that applicant has not submitted any details / evidence such as agreement entered into with a developer/ builder for the provisions Of MEP services to an affordable housing project. Therefore in the absence of detailed information in relation to housing project it is not possible for this authority to reach at definite conclusion. 06. In view of the extensive 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 Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-46/2018-19/B-119 Mumbai, dt. 28/09/2018 For reasons as discussed in the body of the

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GST – States – 02/2018-Puducherry GST – Dated:- 25-9-2018 – GOVERNMENT OF PUDUCHERRY COMMERCIAL TAXES DEPARTMENT F.No. 3074/CTD/GST/2018. Puducherry, the 25th September 2018. ORDER No. 02/2018-Puducherry GST Subject : Extension of time-limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Puducherry Goods and Services Tax Rules, 2017 in certain cases. In exercise of the powers conferred by sub-rule (1A) of rule 117 of the Puducherry Goods and Services Tax Rules, 2017

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GST – States – G.O. Ms. No. 46 – Dated:- 25-9-2018 – GOVERNMENT OF PUDUCHERRY COMMERCIAL TAXES SECRETARIAT (G.O. Ms. No. 46, Puducherry, dated 25th September 2018) NOTIFICATION In exercise of the powers conferred by section 164 of the Puducherry Goods and Services Tax Act, 2017 (Act No. 6 of 2017), the Lieutenant-Governor, Puducherry, hereby makes the following rules further to amend the Puducherry Goods and Services Tax Rules, 2017, namely:- 1. (1) These rules may be called the Puducherry Goods and Services Tax (Tenth Amendment) Rules, 2018. (2) Save as otherwise provided in these rules they shall be deemed to have been come into force with effect from 13th day of October, 2018. 2. In rule 80, the two sub-rules below sub-rule (1) which are numbered as (1) and (2), shall be renumbered as (2) and (3) respectively with effect from 1st July, 2017. 2. In the FORMS to the Puducherry Goods and Services Tax Rules, 2017, after FORM GSTR-9A, the following shall be inserted, namely:- FORM GSTR-

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G Turnover from April 2017 to June 2017 (-) H Unbilled revenue at the end of Financial Year (-) I Unadjusted Advances at the beginning of the Financial Year (-) J Credit notes accounted for in the audited Annual Financial Statement but are not permissible under GST (-) K Adjustments on account of supply of goods by SEZ units to DTA Units (-) L Turnover for the period under composition scheme (-) M Adjustments in turnover under section 15 and rules thereunder (+/-) N Adjustments in turnover due to foreign exchange fluctuations (+/-) O Adjustments in turnover due to reasons not listed above (+/-) P Annual turnover after adjustments as above < Auto > Q Turnover as declared in Annual Return (GSTR9) R Un-Reconciled turnover (Q – P) AT1 6 Reasons for Un – Reconciled difference in Annual Gross Turnover A B C Reason 1 << Text >> Reason 2 << Text >> Reason 3 << Text >> 7 Reconciliation of Taxable Turnover A Annual turnover after adjustments (from 5P abo

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al amount paid as declared in Annual Return (GSTR-9) R Un-reconciled payment of amount PT 1 10 Reasons for un-reconciled payment of amount A B Reason 1 << Text >> Reason 2 << Text >> C Reason 3 << Text >> 11 Additional amount payable but not paid (due to reasons specified under Tables 6,8 and 10 above) To be paid through Cash Description Taxable Value Central tax State tax/UT tax Integrated tax Cess, if applicable 1 2 3 4 5 6 5% 12% 18% 28% 3% 0.25% 0.10% Interest Late Fee Penalty Others (please specify) Pt. IV Reconciliation of Input Tax Credit (ITC) 12 Reconciliation of Net Input Tax Credit (ITC) A ITC availed as per audited Annual Financial Statement for the State/ UT (For multi-GSTIN units under same PAN this should be derived from books of accounts) B ITC booked in earlier Financial Years claimed in current Financial Year (+) C ITC booked in current Financial Year to be claimed in subsequent Financial Years (-) D ITC availed as per audited finan

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unt of eligible ITC availed <> S ITC claimed in Annual Return (GSTR9) T Un-reconciled ITC ITC 2 15 Reasons for un-reconciled difference in ITC A Reason 1 << Text >> B C Reason 2 << Text >> Reason 3 << Text >> 16 Tax payable on un-reconciled difference in ITC (due to reasons specified in 13 and 15 above) Description Amount Payable Central Tax State/UT Tax Integrated Tax Cess Interest Penalty Pt.V Auditor's recommendation on additional Liability due to non-reconciliation To be paid through Cash Description Value Central tax State tax/UT tax Integrated tax Cess, if applicable 1 2 3 4 5 6 5% 12% 18% 28% 3% 0.25% 0.10% Input Tax Credit Interest Late Fee Penalty Any other amount paid for supplies not included in Annual Return (GSTR 9) Erroneous refund to be paid back Outstanding demands to be settled Other (Pl. specify) Verification: I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my

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ith the turnover as declared in the Annual Return furnished in FORM GSTR-9 for this GSTIN. The instructions to fill this part are as follows :- Table No. Instructions 5A The turnover as per the audited Annual Financial Statement shall be declared here. There may be cases where multiple GSTINs (State-wise) registrations exist on the same PAN. This is common for persons / entities with presence over multiple States. Such persons / entities, will have to internally derive their GSTIN wise turnover and declare the same here. This shall include export turnover (if any). It may be noted that reference to audited Annual Financial Statement includes reference to books of accounts in case of persons / entities having presence over multiple States. 5B Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting in the last financial year and was carried forward to the current financial year shall be declared here. In other words, when GST is payable d

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ade discounts which are accounted for in the audited Annual Financial Statement but on which GST was livable (being not permissible) shall be declared here. 5G Turnover included in the audited Annual Financial Statement for April 2017 to June 2017 shall be declared here. 5H Unbilled revenue which was recorded in the books of accounts on the basis of accrual system of accounting during the current financial year but GST was not payable on such revenue in the same financial year shall be declared here. 5I Value of all advances for which GST has not been paid but the same has been recognized as revenue in the audited Annual Financial Statement shall be declared here. 5J Aggregate value of credit notes which have been accounted for in the audited Annual Financial Statement but were not admissible under Section 34 of the CGST Act shall be declared here. 5K Aggregate value of all goods supplied by SEZs to DTA units for which the DTA units have filed bill of entry shall be declared here. 5L T

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the Annual Return (GSTR-9) and turnover reported in the audited Annual Financial Statement due to reasons not listed above shall be declared here. 5Q Annual turnover as declared in the Annual Return (GSTR 9) shall be declared here. This turnover may be derived from Sr. No. 5N, 10 and 11 of Annual Return (GSTR 9). 6 Reasons for non-reconciliation between the annual turnover declared in the audited Annual Financial Statement and turnover as declared in the Annual Return (GSTR 9) shall be specified here. 7 The table provides for reconciliation of taxable turnover from the audited annual turnover after adjustments with the taxable turnover declared in annual return (GSTR-9). 7A Annual turnover as derived in Table 5P above would be auto-populated here. 7B Value of exempted, nil rated, non-GST and no-supply turnover shall be declared here. This shall be reported net of credit notes, debit notes and amendments if any. 7C Value of zero rated supplies (including supplies to SEZs) on which tax

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this part are as follows :- Table No. Instructions 9 The table provides for reconciliation of tax paid as per reconciliation statement and amount of tax paid as declared in Annual Return (GSTR 9). Under the head labelled "RC", supplies where tax was paid on reverse charge basis by the recipient (i.e. the person for whom reconciliation statement has been prepared) shall be declared. 9P The total amount to be paid as per liability declared in Table 9A to 9O is auto populated here. 9Q The amount payable as declared in Table 9 of the Annual Return (GSTR9) shall be declared here. It should also contain any differential tax paid on Table 10 or 11 of the Annual Return (GSTR9). 10 Reasons for non-reconciliation between payable / liability declared in Table 9P above and the amount payable in Table 9Q shall be specified here. 11 Any amount which is payable due to reasons specified under Table 6, 8 and 10 above shall be declared here. 6. Part IV consists of reconciliation of Input Tax

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2C Any ITC which has been booked in the audited Annual Financial Statement of the current financial year but the same has not been credited to the ITC ledger for the said financial year shall be declared here. 12D ITC availed as per audited Annual Financial Statement or books of accounts as derived from values declared in Table 12A, 12B and 12C above will be auto-populated here. 12E Net ITC available for utilization as declared in Table 7J of Annual Return (GSTR-9) shall be declared here. 13 Reasons for non-reconciliation of ITC as per audited Annual Financial Statement or books of account (Table 12D) and the net ITC (Table12-E) availed in the Annual Return (GSTR-9) shall be specified here. 14 This table is for reconciliation of ITC declared in the Annual Return (GSTR-9) against the expenses booked in the audited Annual Financial Statement or books of account. The various sub-heads specified under this table are general expenses in the audited Annual Financial Statement or books of acc

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commend if there is any other amount to be paid for supplies not included in the Annual Return. Any refund which has been erroneously taken and shall be paid back to the Government shall also be declared in this table. Lastly, any other outstanding demands which is recommended to be settled by the auditor shall be declared in this Table. 8. Towards, the end of the reconciliation statement taxpayers shall be given an option to pay their taxes as recommended by the auditor. PART – B- CERTIFICATION I. Certification in cases where the reconciliation statement (FORM GSTR-9C) is drawn up by the person who had conducted the audit : * I/we have examined the- (a) balance sheet as on ……… (b) the *profit and loss account/income and expenditure account for the period beginning from ………….…..… to ending on ……., and (c) the cash flow statement for the period beginning from ……..…to ending on ……&hellip

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lip;…………………………. 3. (b) *I/we further report that, – (A) *I/we have obtained all the information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit/ information and explanations which, to the best of *my/our knowledge and belief, were necessary for the purpose of the audit were not provided/partially provided to us. (B) In *my/our opinion, proper books of account *have/have not been kept by the registered person so far as appears from*my/ our examination of the books. (C) I/we certify that the balance sheet, the *profit and loss/income and expenditure account and the cash flow Statement are *in agreement/not in agreement with the books of account maintained at the Principal place of business at ……………………and ** ……………………additional place of business within the State. 4. The documents required to be f

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lip;……………………………………………………………… ………………………………………………………………………………………. …………………………………………………………………………………….… **(Signature and stamp/Seal of the Auditor) Place: …………………………………………………………. Name of the signatory ……………………………….…… Membership No…………………………………..………… Date: ……………………….… Full address …………&

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of their audit report dated ……………………………. along with a copy of each of :- (a) balance sheet as on …………………………………… (b) the *profit and loss account/income and expenditure account for the period beginning from ………..…to ending on ……………………………, (c) the cash flow statement for the period beginning from ……..…to ending on ………, and (d) documents declared by the saidAct to be part of, or annexed to, the *profit and loss account/income and expenditure account and balance sheet. 2. I/we report that the said registered person- *has maintained the books of accounts, records and documents as required by the IGST/CGST/APGST Act, 2017 and the rules/notifications made/issued thereunder *has not maintained the following accounts/records/documents as required by the IGST/CGST/APGST Act, 20

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;…….……………………… (c) …………………………….…………………………….……………………… …………………………………………………………………………………….. **(Signature and stamp/Seal of the Auditor) Place: …………………………………………………………… Name of the signatory ……………………………………… Membership No………………………………………………. Date: ………………………. Full address …………………&he

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2018 (11) TMI 1569 – JHARKHAND HIGH COURT – TMI – Bail application – Illegal availment of Input tax credit – Petitioner is in custody since 24.7.2018 i.e. more than 62 days – Held that:- The petitioner is directed to be released on bail on furnishing bail bond of ₹ 50,000/- with two sureties of the like amount each to the satisfaction of learned Special Judge, Economic Offence, Jamshedpur in connection with Complaint Case No. 2144 of 2018.
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Petitioner is directed to co-operate with the Investigating Officer during investigation and till completion of the investigation, he must appear before the Investigating Authority once a fortnight. – B.A. No. 6909 of 2018 Dated:- 25-9-2018 – MR. ANANDA SEN. J. For The Petitioner(S) : Mr. Ni

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2018 (11) TMI 1151 – CESTAT CHENNAI – TMI – Reverse charge mechanism – appellants were engaged in providing clearing & forwarding services and they provided services to M/s. Project Management Inc. USA for the goods manufactured and exported by them for the period June 2008 – Held that:- The appellants have provided clearing and forwarding services to the service recipient who is situated outside India.
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The Tribunal in the case of Bnazrum Agro Export Pvt. Ltd. [2018 (4) TMI 1239 – CESTAT CHENNAI], had occasion to analyse the very same issue and it was held that the said activities having been performed outside India will not be exigible to service tax.
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Demand cannot sustain – appeal allowed – decided in favor of appellant. – A

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riod 1.7.2008 to 31.3.2009 along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. Counsel Shri Akhil Suresh submitted that the appellant had provided clearing and forwarding services to the service recipient who is situated outside India. Such services are performance based services and as per Rule 3(ii) of Taxation of Services (Provided from Outside India and Received in India) Rules 2006, there cannot be any liability even after insertion of Section 66A since clearing and forwarding services are wholly performed outside India. He relied

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GST – States – SRO 431 – Dated:- 25-9-2018 – Government of Jammu and Kashmir Notification (J&K), DATED 25-9-2018 SRO-431 – Government in order to provide budgetary support to the existing eligible manufacturing units operating in the state of Jammu and Kashmir hereby notifies the following scheme for providing budgetary support to the manufacturing units in the shape of reimbursement of Integrated Goods and Service Tax (IGST) paid under the Integrated Goods and Service Tax Act, 2017. Short Title and Commencement The scheme shall be called as Jammu and Kashmir Reimbursement of Integrated Goods and Services Tax for promotion of Small/Medium/Large Scale Industries in the State of Jammu and Kashmir. The said Scheme shall deemed to have come into operation w.e.f. 01.04.2018 for an eligible unit and shall remain in force till the last date of Industrial Policy 2016. Objective 1.1 The State Government, in recognition of the hardships arising due to withdrawal of Central Sales Tax exempti

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ed by the department of Industries and Commerce/ Handloom/Handicrafts except those mentioned in Annexure -A to this notification. Determination of the Amount of Reimbursement 3.1 The amount of Reimbursement under the scheme for specified goods manufactured by the eligible unit shall be the:- two percent of the taxable turnover with respect to the interstate supplies made by the Industrial Unit under Integrated Goods and Services Tax Act, 2017 provided that the maximum amount of annual reimbursement shall be limited to 2% of the interstate sales turnover reflected by the dealer in his returns for the accounting year 2016-17. 3.2 Reimbursement under this scheme shall be worked out on quarterly basis for which claims shall be filed on a quarterly basis namely for January to March, April to June, July to September & October to December. All claims of reimbursement shall be supported by hard copies of the E-way bills duly endorsed by the consignee to the effect that the goods have been

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to pay the amount repayable if any. Any other document evidencing the details required in clauses (a) to (c) may be accepted with the approval of the Jurisdictional Additional Commissioner. 3.5 The scheme shall be shall be available to only those industrial units who provide employment to permanent residents of the state of Jammu & Kashmir as per the guidelines of the Industrial Policy 2016. 3.6 For the purpose of this Scheme, "manufacture" means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term "manufacturer" shall be construed accordingly. 4. INSPECTION OF THE ELIGIBLE UNIT 4.1 The reimbursement under the Scheme shall be allowed to an eligible unit subject to an inspection by a team(s) constituted by Commissioner Commercial Taxes. The inspection report shall be made available to the jurisdictional Assessing Authority before sanction of the reimbursement. Reimburs

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al Commissioners within one week after the receipt of application. 5.3 The concerned Additional Commissioners shall forward consolidated information of the concerned division to the Nodal Officer(s) to be designated by Commissioner Commercial Taxes for reimbursement of GST to the eligible industrial units by the end of the month in which application is received and a copy of the same shall be forwarded to Commissioner Commercial Taxes for consolidation and submission to Government. 5.4 The concerned nodal officer(s) shall credit the amount due in the declared bank accounts of the industrial units referred to in the information forwarded by respective Additional Commissioners within seven days of receipt of consolidated information from the concerned Additional Commissioner. 5.5 The nodal officer(s) shall intimate the Commissioner/Additional Commissioner(s) Commercial Taxes the amount disbursed to the beneficiary industrial units. 6. Repayment By Claimant/ Recovery And Dispute Resolutio

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any change in its constitution, bank account, line of activity, and title of the firm within the time allowed shall not be eligible for reimbursement of taxes for the period in which he fails to intimate the Department. 6.4 The procedure for recovery: Where any amount is recoverable from a unit, jurisdictional Assessing Authority, shall issue a demand note to the unit (i) intimating the amount recoverable from the unit and the date from which interest thereon is due and (ii) directing the manufacturer to deposit the full sum within 30 days of the issue of the demand note in the account head of State Tax and submit proof of deposit to him/her. 6.5 Where the amount is not paid by the beneficiary within the time specified as above, action for recovery shall be taken in terms of the affidavit-cum-indemnity bond submitted by the applicant at the time of submission of the application, in addition to other modes of recovery. 6.6 Where any amount of reimbursement/or interest remains due from t

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ms, their accessories and ammunition 3. Edible oil and Vasnaspati Ghee. 4. Menthol. 5. Copper & Non ferrous items. 6. Cement. Annexure-A DECLARATION Name of the Industrial Unit: …………………………………. GSTIN: …………………………………. Registration No …………………………………. Department of industries/handloom/ handicrafts) Bank A/c No: …………………………………. Bank Name: …………………………………. Bank Branch: …………………………………. IFSC Code: …………………………………. MICR Code: …………………………………. Certificate I ………………………………….Proprietor/Partner/Director of M/s ………………………………….located at ………………………………….do hereby certify that the total number of employees working in my industrial unit is …………………………………. That I have provided employment to number of locals (

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bursement of Integrated goods and Services Tax for promotion of Small/Medium/Large Scale Industries in the State of Jammu and Kashmir of Budgetary Support notified by Finance Department, Government of Jammu & Kashmir I/We confirm that the eligible unit is manufacturing and supplying specified goods on payment of State GST/Central GST/ Integrated GST and the claim will not include any other activity being carried out under the same GSTIN. I/We further affirm and declare, as stated above, goods other than specified goods manufactured by the eligible unit will not be taken into account while filing the application under the scheme. No amount of budgetary support which is not due as per the conditions of the scheme notified by Finance Department, Government of Jammu & Kashmir shall be claimed by the eligible unit and where any misdeclaration is detected, the amount paid by the Government shall be paid back by me/us with interest as prescribed in the scheme. I/We solemnly affirm and

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2018 (10) TMI 1276 – MADRAS HIGH COURT – TMI – Maintainability of appeal – monetary amount involved in the appeal – Rule 5 of the CENVAT Credit Rules, 2004 – N/N. 5/2006-CE (NT) dated 14.3.2006 – Held that:- The monetary limits, involved in the instant case, being well below the amount fixed in the instruction dated 11.7.2018, we hold that the Department cannot pursue this appeals – appeal dismissed as withdrawn. – Civil Miscellaneous Appeal Nos.2202 to 2204 of 2018 Dated:- 25-9-2018 – Mr. Justice T.S. Sivagnanam And Mrs. Justice V. Bhavani Subbaroyan For the Appellant : Mr.Rajnish Pathiyil, SPC COMMON JUDGMENT T.S.SIVAGNANAM J. These appeals by the Revenue have been directed against the common order passed by the Customs, Excise and Serv

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7.8.2018 received from the Deputy Commissioner (Legal), Salem, Office of the Commissioner of GST and Central Excise, Salem-1 instructing to withdraw the above appeals based on the Board's monetary policy circular. He would state that on account of the monetary limits involved in these appeals, which are lesser than the threshold fixed by the Board's Circular dated 11.7.2018, he has been instructed to withdraw the appeals. 3. Be that as it may, it is seen that the appeals have been filed by the Revenue, which arose out of an order passed by the Tribunal dated 24.10.2017. The Original Authority rejected the refund claim of ₹ 36,96,374/- and ₹ 42,13,167/-. Thus, the monetary limits, involved in the instant case, being well

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2018 (10) TMI 1313 – AUTHORITY FOR ADVANCE RULING, KERALA – 2018 (18) G. S. T. L. 373 (App. A. A. R. – GST) – Levy of GST – providing canteen services exclusively for their employees – Supply of services or not – scope of “supply” and “consideration” – Held that:- The appellant company has admitted that they are serving food to the employees for cash, though there is no profit involved in the transaction. In spite of the absence of any profit, the activity of supplying food and charging price for the same from the employees would surely come within the definition of “supply” as provided in Section 7(1)(a) of the GST Act, 2017. Consequently, the appellant would definitely come under the definition of “supplier” as provided in subsection (105) of Section 2 of the GST Act, 2017.
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Moreover, since the appellant recovers the cost of food items from their employees, there is “consideration” as defined in Section 2(31) of the GST Act, 2017.
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Ruling:- The supply of food items to the

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the definition of outward supplies and are taxable under Goods & Services Tax Act. 2. The applicant is a Private Limited Company engaged in the manufacture and sale of foot wear. It was submitted that they are providing canteen services exclusively for their employees. They incur the canteen running expenses for a month and recover the same from their employees without any profit margin on the same. 3. The applicant has further submitted that the service provided to the employee is not being carried out as a business activity and it is according to the provisions in the Factories Act, 1948. As per Section 46 of the said Act, any factory employing more than 250 workers is required to provide canteen facility to its employees. The applicant detailed activity as follows:- a) The space for the canteen is provided by the Company, inside the factory premises. b) The cook is employed by the Company and is paid monthly salary. c) The vegetables and other items required for preparing the fo

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thout making any profit. 5. The company also referred to the erstwhile Service Tax Mega Exemption Notification No.25/2012-ST dated 20.06.2012 issued by the Government of India whereby services in relation to supply of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 was exempted under the Service Tax Law. 6. The Authority for Advance Ruling had deliberated on the issue raised and after hearing the authorized representative of the applicant elaborated as follows; "10. Schedule II to the GST Act describes the activities to be treated as supply of goods or supply of services. As per clause 6 of the Schedule, the following composite supply is declared as supply of service. "supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment

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or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply. Since the applicant recovers the cost of food from its employees, there is consideration as defined in Section 2 (31) of the GST Act, 2017." 7. The Advance Ruling authority also clarified that "It is true that in the pre-GST period, vide sl.No.19 and 19A of Notification No. 25/2012-ST dated 20.06.2012 as amended by the Notification No. 14/2013-Service Tax dated 22.10.2013 the 'services provided in relation to serving of food or beverages by a canteen maintained in a factory covered under the Factories Act, 1948 (63 of 1948), having the facility of air-conditioning or central air-heating at any time during the yea

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oyment is neither a supply of goods, nor a supply of services and that any consideration received by the employee from his employer for the services rendered in relation to the employment is outside the purview of GST. A press release dated 10.07.2017 issued by the Central Board of Indirect Taxes and Customs (CBIC) was also submitted. 11. The party also produced a copy of the press release issued by the CBEC to clarify the applicability of Reverse Charge under section 9(4) of the GST Act, 2017 on the purchase of ornaments by a jeweller from a consumer. It reads as follows: "Even though the sale of gold by an individual is for a consideration, it cannot be said to be in the course of or in furtherance of his business (as selling old gold jewellery is not the business of the said individual), and hence does not qualify to be a supply perse. Accordingly, the sale of old jewellery by an individual to a jeweller will not attract the provisions of section 9(4) and the jeweller will not

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limited company manufacturing foot wears. As per the requirement of Factories Act, for an industry having more than 250 employees, canteen facility shall be provided. To comply with the statutory requirements, the company provides food to the employees and cash is recovered from their salary. The authority below classified it as supply in furtherance of business. The Telengana High Court had delivered a judgement in favour of M/s. Bhima case stating that subsidized food to employees and realization of cost of wages is an industrial obligation it does not amount to service. Government of India issued a press release on 10-07-2017, stating that supply by employer to employee is in the course of furtherance of employment and not in the course of furtherance of business and comes under Schedule III, which is not liable to tax." 14. The contentions raised by the appellant have been examined in detail. The crucial aspects to be considered in this case are the elements of "supply&q

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the said Order held that "the petitioner has paid the value added tax on the value of the food supplied to its workers. In respect of some assessment years, they have even been imposed with a penalty under the Andhra Pradesh Value Added Tax Act, 2005. Therefore, once the State Authorities have treated the supply of food to the workers of the petitioner as sale, it is not open to the respondents to treat the same as service and impose a liability. " 16. It is apparent from the extract supra that, in the above referred case, the food provided to the employees was already taxed under the erstwhile Value Added Tax and thereby the Hon'ble High Court held that the same could not be subjected to Service Tax. Hence the Hon'ble Court had decided upon a matter where the issue of double taxation was a relevant fact. As there is no possibility of such double taxation in the GST regime, it is evident that the facts of the Bhimas Hotels case cannot be considered to be in pari-mate

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2018 (10) TMI 1312 – AUTHORITY FOR ADVANCE RULING, KERALA – 2018 (18) G. S. T. L. 367 (App. A. A. R. – GST) – Rate of GST – Classification of the commodity – commodity 'Ada' – whether the commodity “Ada” should be classified under the HSN Code 1902 along with “Seviyan (Vemicelli)” attracting GST at the rate of 5% or should be classified under residual entry at Sl No. 453 of the Third Schedule of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 and State Government Notification No. 360/2017 attracting 18% GST?
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Held that:- The applicable rule in this case is Rule 4 and as per the same, 'Ada' is to be classified under the heading appropriate to the goods to which it is most similar in character.
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The product, “Ada”, in sum and substance, is something akin, i.e., similar in character to “Vermicelli”. Both are made from 'maida or rice flour' or 'maida and rice flour' and are manufactured through an identical process and “ada” is used for giving richness to certain

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acting 5% GST. – CT/3368/2018-C3 Dated:- 25-9-2018 – Pullela Nageswara Rao, IRS, Member And Rajan N. Khobragade IAS, Member ORDER M/s. Ramachandran Bror, Kollam, a wholesale distributor of Ada in Kollam District (hereinafter called the applicant) is a registered person having GSTIN 32AAJFM1969P1ZP. The applicant had preferred an application on 20.02.2018 for Advance Ruling on the rate of tax of the commodity 'Ada'. 2. The applicant had argued that usage of Ada is same as that of "seviyan (vermicelli) i.e., to make sweet kheer or palada payasam or ada pradhaman. Ada is one of the grocery goods, mainly used by Keralites to prepare a sweet kheer or payasam otherwise called pradhaman. The ada is produced from rice flour or maida and no other ingredients are added. 3. In support of their claim, the applicant had produced a copy of the judgment dated 23.04.1987 of Tamil Nadu Sales Tax Appellate Tribunal, Madurai Bench in the case of Meenakshi Cottage Industries Vs State of Tami

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da", the matter has been referred to the Appellate Authority for Advance Ruling in terms of subsection (5) of Section 98 of the CGST/KGST Act, 2017 for hearing and decision on the classification of the said commodity. 6. A personal hearing was granted to the applicant on 13.09.2018. On the basis of the facts disclosed in the application and the oral/written submissions made at the time of personal hearing, it was decided to admit the application and the contentions raised by the applicant were examined. 7. Seviyan (Vermicelli) is a commodity produced from maida and is used for the purpose of giving richness to Kheer / Payasam. "Ada" is also a commodity produced from maida or rice flour or a mixture of maida and rice flour and is used for the purpose of giving richness to some regional varieties of payasams; Known as "Ada Pradhaman" and "Palada Pradhaman". In other words, "Seviyan (Vermicelli)" and "Ada" are produced from maida or r

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ould be classified under residual entry at Sl No. 453 of the Third Schedule of Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017 and State Government Notification No. 360/2017 attracting 18% GST. 9. Sl No. 453 of Third Schedule reads as follows; "Any Chapter – Goods which are not specified in Schedule I, II, IV, V or VI." Therefore, it is evident that the entry is a residuary entry to classify commodities that are not classifiable under any of the other entries. 10. The Explanation appended to the Notification No. 01/2017 Central Tax (Rate) dated 28.06.2017 reads as follows; "Explanation:- (1) In this Schedule, tariff item, heading, sub-heading and Chapter shall mean respectively a tariff item, heading, sub-heading and Chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (2) The rules for the interpretation of the First Schedule to the said Customs Tariff Act, 1975, including the Section and Chapter Notes and the General E

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goods in this Schedule shall be governed by the following principles: 1. The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that materi

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ures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criterion is applicable. (c) When goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. 14. A perusal of the para supra and the application of the same with respect to the facts in the instant case, it is evident that the applicable rule in this case is Rule 4 and as per the same, 'Ada' is to be classified under the heading appropriate to the goods to which it is most similar in chara

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in Para 3, inter alia, observed as under; "The question before us is whether the department is right in claiming that the items in question are dutiable under Tariff Entry 68. This, as mentioned already, is the residuary entry and only such goods as cannot be brought under the various specific entries in the tariff should be attempted to be brought under the residuary entry. In other words, unless the department can establish that the goods in question can by no conceivable process of reasoning be brought under any of the tariff items, resort cannot be had to the residuary item." 18. In the case of Western India Plywoods Ltd Vs Collector of Customs reported in 2005 (188) ELT 365 SC the Hon ble Supreme Court, inter alia, held that; "Application of residuary item only when no other heading expressly or by necessary implication applies." 19. In the case of COMMISSIONER OF CENTRAL EXCISE vs M/s WOCKHARDT LIFE SCIENCES LTD reported in 2012 (277) ELT 299 (SC); the Hon&#39

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classification of that product under a fiscal schedule like the Central Excise Tariff. What is more important is whether the broad description of the article fits in with the expression used in the Tariff. Moreover, the functional utility and predominant or primary usage of the commodity which is being classified must be taken into account, apart from the understanding in common parlance. A commodity cannot be classified in a residuary entry, in the presence of a specific entry, even if such specific entry requires the product to be understood in the technical sense. A residuary entry can be taken refuge of only in the absence of a specific entry; that is to say, the latter will always prevail over the former. The combined factor that requires to be taken note of for the purpose of the classification of the goods are the composition, the product literature, the label, the character of the product and the use to which the product is put. 20. In the light of the discussion above, it can

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2018 (10) TMI 1077 – CESTAT MUMBAI – TMI – 100% EOU – Refund of CENVAT Credit – refund was rejected on the ground that availment of CENVAT Credit for the disputed period was not reflected in the ST-3 returns and the returns filed at the end of the quarter showed the available credit balance as “zero” – N/N. 27/2012-CE (NT) dated 18.06.2012 – Held that:- Since the appellant claimed that revised returns were filed manually and the same were available with the department for necessary verification, the matter should be remanded to the original authority for verification of ST-3 returns manually filed by the appellant and the input service invoices, based on which credit was availed by the appellant – appeal allowed by way of remand. – Appeal No. ST/86921 & 86923/2018 – A/87458-87459/2018 – Dated:- 25-9-2018 – Mr. S.K. Mohanty, Member (Judicial) Shri Haren Pandya, C.A. for appellant Shri O.M. Shivdikar, Asst. Commr (AR) for respondent ORDER Per: S.K. Mohanty These appeals are directed aga

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Revenue that the appellant had not followed the procedures prescribed under statute, more specifically, as provided under Notification No. 27/2012-CE (NT) dated 18.06.2012. 3. Learned Consultant appearing for the appellant submits that the appellant had exported the entire output service and since it was not able to utilize the input credit, the refund applications were filed claiming refund of service tax paid on the input services. He further submits that due to over sight, the ST-3 returns filed electronically were not reflected the particulars of available CENVAT Credit and on pointing out such mistake by the department, manual returns were filed, incorporating the credit particulars therein. He further submits that based on the records maintained by the appellant, the Chartered Accountant's firm had also certified export of service by the appellant and also availment of CENVAT Credit on the input services used for export of the service. Thus, he contended that refund benefit

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re filed manually and the same were available with the department for necessary verification, I am of the view that the matter should be remanded to the original authority for verification of ST-3 returns manually filed by the appellant and the input service invoices, based on which credit was availed by the appellant. If the records maintained by the appellant demonstrate that the input services were used / utilized for export of service, the refund benefit should be extended by the original authority under Rule 5 of the Rules. 7. In view of the above, after setting aside the impugned order, the matter is remanded to the original authority for deciding the issue afresh, in line with the above observations. Needless to say that opportunity should be granted to the appellant before deciding the issue afresh. 8. In the result, appeals are allowed by way of remand. (Order dictated in Court) – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxma

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2018 (10) TMI 1076 – CESTAT MUMBAI – TMI – Penalty – Non-payment of Service Tax – import of certain services from over-seas entities – reverse charge mechanism – Section 66A of Finance Act – Held that:- Since the appellant did not pay the service tax attributable to receipt of taxable service, the CERA audit officers have rightly pointed out such mistakes. Being a Service Tax registered assessee, the appellant was required to comply with the statutory provisions, including payment of service tax within the stipulated time frame.
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Penalty rightly upheld – appeal dismissed – decided against appellant. – Appeal No. ST/86912/2018 – A/87457/2018 – Dated:- 25-9-2018 – Mr. S.K. Mohanty, Member (Judicial) Shri Pradeep Sawant, C.A. for appell

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nterest. The department initiated show cause proceedings against the appellant, which were culminated into adjudication order dated 31.01.2017, wherein service tax demand of ₹ 35,54,314/- along with interest was confirmed. The said amount deposited by the appellant prior to issuance of show-cause notice was appropriated in such order. Besides, the adjudication order was also imposed penalties under Section 77 and 78 of the Finance Act, 1994. On appeal against the adjudication order, learned Commissioner (Appeals) vide impugned order dated 12.03.2018 has upheld the adjudged demand confirmed against the appellant. Thus, the appellant has preferred this appeal before this Tribunal. 2. Learned Consultant appearing for the appellant, at th

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authoritative judgements pronounced by the Hon'ble Supreme Court. 4. Heard both sides and perused the records. 5. It is an admitted fact on record that the appellant had received the taxable services from over-seas entities and was liable to pay service tax under Section 66A of the Act, as recipient of service, under reverse charge mechanism. Since the appellant did not pay the service tax attributable to receipt of taxable service, the CERA audit officers have rightly pointed out such mistakes. Being a Service Tax registered assessee, the appellant was required to comply with the statutory provisions, including payment of service tax within the stipulated time frame. It is not the case of the appellant that for the first time it had re

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2018 (10) TMI 940 – KERLA HIGH COURT – 2019 (20) G. S. T. L. 338 (Ker.) – Refund of Tax paid – IGST – deemed export – application cannot be uploaded electronically – Held that:- The procedure mandates that the demand for refund should be through an application uploaded electronically. The petitioner could not follow that procedure because of the unavailability of the online facility.
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The Government of India issued a circular for “setting up an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal” – So, here too, the petitioner may apply to the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner’s uploading FORM GST TRAN-1 or any other applicable Form, without reference to the time-frame.
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Petition disposed off. – WP(C).No. 22615 of 2018 Dated:- 25-9-2018 – MR. DAMA SESHADRI NAIDU J. PETITIONERS: BY ADVS. SRI. E.P. GOVINDAN SMT. G. DEEPA SMT. JULIA PRIYA

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ner submitted the applications physically. As those applications have not been processed in terms of Ext.P14 circular, the petitioner has filed this writ petition. 2. The Standing Counsel for the 3rd respondent has drawn my attention to the counter affidavit the respondents filed and submitted that Ext.P14 circular only facilitates belated uploading. He has also submitted that if the petitioner approaches the 5th respondent -GST Network, he will entertain the petitioner's applications and process them. 3. Heard the learned counsel for the petitioner, the learned Assistant Solicitor General, the learned Government Pleader as also the learned Standing Counsel. 4. The Government of India issued a circular for setting up an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal. Paragraph 5 of the circular outlines the procedure the Nodal Officers is to follow. It reads: 5. Nodal officers and identification of issues 5.1 GSTN, Ce

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nce Redressal Committee with suggested solutions for resolution of the problem. (italics supplied) 5. Not only the petitioner but also many other people faced this technical glitch and approached this Court. Both the learned counsel submit that this Court on earlier occasions permitted the petitioner to apply to the Nodal Officer concerned to have the issue resolved. 6. So, here too, the petitioner may apply to the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner s uploading FORM GST TRAN-1 or any other applicable Form, without reference to the time-frame. Ordered so. 7. The petitioner to claim its refund based on the applications its already physically filed. For that purpose the Exhibits P15, P16 and P17 rejection orders shall stand quashed. With these observation, I dispose of the Writ Petition. The respondents may complete the entire exercise in three months. – Case laws – Decisions – Judgements – Orders – Tax Manage

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2018 (10) TMI 476 – CESTAT CHENNAI – TMI – Renting of immovable property – Co-ownership – Association of persons – inherited property – SSI Exemption – clubbing of clearances – Held that:- The demand has been raised on all the co-owners to treat them as association of person and levy service tax on the amount of rent received by them. When the co-owners are treated individually, the amounts undoubtedly fall below the threshold exemption.
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The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad [2017 (5) TMI 240 – CESTAT AHMEDABAD], had considered the similar issue and held that The service Tax Registration of individual assessees for collection of service tax is PAN based, hence, collection of service tax from one of the co-owners, against his individual Registration for the total rent received by all co-owners separately, is neither supported by law nor by laid down procedure. Thus, it is difficult to accept the proposition advanced by

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n combined together would cross the threshold limit. Thus, they are liable to pay service tax. Show cause notice was issued proposing to demand service tax along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand along with interest and also imposed penalties. In appeal, Commissioner (Appeals) upheld the same except for modifying the penalty imposed under section 77(1)(a). Hence this appeal. 2. On behalf of the appellant, ld. counsel Shri S. Kannappan appeared and argued the matter. He submitted that the period of dispute is from April 2008 to March 2012. Shri S. Varadharaju Chettiar, Smt. V. Anusuya and Shri S.V. Janardhanam were co-owners of the immovable property and Shri S. Varadharaju Chettiar owned 50% of share in the property whereas the other two had 25% share in the property. The rental income were received by each owners and they were paying income tax separately. The department has combined the rental income receiv

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The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad – 2017 (5) TMI 240 had occasion to consider similar issue and observed as under:- 4. The learned Authorized Representative for the Revenue reiterates the findings of the lower authorities. It is his contention that the learned Commissioner after taking into consideration the percentage of share of individual co-owners in the property against the total area owned and leased observed that the entire immovable property is given on lease, and there is no specific area that has been allotted to individual owner; thus since each of the co-owners not holding absolute ownership of any identifiable part in the property, hence not entitled to the benefit of said Notification. Further, the co-owners had only undivided interest in whole of the property and no divided interest in separate parts; accordingly, each co-owner cannot lease their share of the property independently to the lessee, henc

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vided on rent. Needless to mention, the Service Tax Registration of individual assessees for collection of Service Tax is PAN based, hence, collection of Service Tax from one of the co-owners, against his individual Registration for the total rent received by all co-owners separately, is neither supported by law nor by laid down procedure. Thus, it is difficult to accept the proposition advanced by the Revenue that all the co-owners providing the service of renting of immovable property be considered as an association of persons and the Service Tax on the total rent be collected from one of the co-owners. Another argument of the Revenue is that since the property is indivisible and not earmarked against each of the co-owners, hence the Service Tax is leviable on the total rent received against the said property without apportioning against each of the co-owners in proportion to their share. We find fallacy in the said argument of the Revenue. Conceptually Service Tax is levied on the s

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2018 (10) TMI 401 – CESTAT CHENNAI – TMI – Renting of immovable property Service – inherited property – SSI Exemption – Association of persons – Held that:- The demand has been raised on all the co-owners to treat them as association of person and levy service tax on the amount of rent received by them. When the co-owners are treated individually, the amounts undoubtedly fall below the threshold exemption.
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The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad [2017 (5) TMI 240 – CESTAT AHMEDABAD], had considered the similar issue and held that The service Tax Registration of individual assessees for collection of service tax is PAN based, hence, collection of service tax from one of the co-owners, against his individual Registration for the total rent received by all co-owners separately, is neither supported by law nor by laid down procedure. Thus, it is difficult to accept the proposition advanced by the Revenue that all the co-ow

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es were issued for the period April 2008 to March 2012 and April 2012 to March 2013 respectively and statement of demand dated 6.3.2015 issued covering the period from April 2013 to March 2014. After due process of law, the original authority confirmed the demand along with interest and imposed penalties under sections 76, 77 and 78 of the Finance Act, 1994. In appeal, Commissioner (Appeals) upheld the same. Hence these appeals. 2. On behalf of the appellants, ld. counsel Shri V. Ravindran appeared and argued the matter. He submitted that the appellants are individuals, mother, father, daughter and son. They inherited undivided individual shares in the immovable property which was rented for commercial purposes long years before renting was brought within the taxable services. They received rent individually albeit under a single lease deed and paid income tax. For service tax, the only rent received by each of them was less than the threshold limit. When the limit crossed in 2014 – 15

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ew Delhi. b. Sh. Jasdeep Singh & Ors. Vs. Commissioner of Central Excise, Jalandhar – 201 (5) TMI 895 – CESTAT, Chandigarh 3. The ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order. 4. Heard both sides. 5. The demand has been raised on all the co-owners to treat them as association of person and levy service tax on the amount of rent received by them. When the co-owners are treated individually, the amounts undoubtedly fall below the threshold exemption. The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad – 2017 (5) TMI 240 had occasion to consider similar issue and observed as under:- 4. The learned Authorized Representative for the Revenue reiterates the findings of the lower authorities. It is his contention that the learned Commissioner after taking into consideration the percentage of share of individual co-owners in the property against the total area owned and leased observed that the entire immov

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lants inasmuch as association of persons has been considered as a separate legal entity under the Income-tax Act for assessment and provided separate PAN number different from the PAN number possessed by individual co-owners; who joined together to form an association of persons . In the present case, the show cause notices were issued in many cases to one person among the Joint owners and in other cases to all the persons who had jointly owned the immovable property provided on rent. Needless to mention, the Service Tax Registration of individual assessees for collection of Service Tax is PAN based, hence, collection of Service Tax from one of the co-owners, against his individual Registration for the total rent received by all coowners separately, is neither supported by law nor by laid down procedure. Thus, it is difficult to accept the proposition advanced by the Revenue that all the coowners providing the service of renting of immovable property be considered as an association of

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2018 (10) TMI 400 – CESTAT CHENNAI – TMI – Renting of immovable property – Joint ownership – clubbing of clearances – SSI Exemption – Department was of the view that since co-owners have an undivided share in the property, all the co-owners have to be treated as an association of person and the rental income has to be combined together – case of appellant is that that the department cannot consider all the four co-owners as an association of person so as to demand service tax by combining the rent by each co-owners.
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Held that:- When the co-owners are treated individually, the amounts undoubtedly fall below the threshold exemption.
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The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad [2017 (5) TMI 240 – CESTAT AHMEDABAD], had considered the similar issue and held that The service Tax Registration of individual assessees for collection of service tax is PAN based, hence, collection of service tax from one of the co-owners, again

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d separately for each co-owner for income tax purposes. Department was of the view that since co-owners have an undivided share in the property, all the co-owners have to be treated as an association of person and the rental income has to be combined together. When the rental income was combined in such manner, the amount exceeded the threshold limit and the appellants were therefore liable to pay service tax. Show cause notice was issued to the appellants proposing to demand service tax along with interest and also for imposing penalties. After due process of law, the original authority confirmed the demand of service tax of ₹ 10,06,867/- on the appellants along with interest under renting of immovable property service and also imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal. 2. On behalf of the appellant, ld. Consultant Shri G. Siva Kumar appeared and argued the matter. He submitted that the four appellants are co-owners and each have the

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; CE, Dehradun – 2018 (6) TMI 810 – CESTAT, New Delhi. b. Sh. Jasdeep Singh & Ors. Vs. Commissioner of Central Excise, Jalandhar – 201 (5) TMI 895 – CESTAT, Chandigarh 4. The ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order. 5. Heard both sides. 6. The ld. consultant for the appellant has given the break-up of the share of each co-owners in the value of rent alleged n the show cause notice. It would show that the same would fall below the threshold exemption under SSI notification during the relevant period. The demand has been raised on all the coowners to treat them as association of person and levy service tax on the amount of rent received by them. When the coowners are treated individually, the amounts undoubtedly fall below the threshold exemption. The Tribunal in the case of Sarojben Khulsanchand & Ors. Vs. Commissioner of Service Tax, Ahmedabad – 2017 (5) TMI 240 had occasion to consider similar issue and observed as under:- 4. The learned A

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o effect on Service Tax matters in which the service of renting of property is indivisible and the Appellants are liable to pay Service Tax on the gross value realised in providing the service. xxxx xxxx xxxx xxxx xxxx 9. We find force in the contention of the ld. Advocates representing the respective appellants inasmuch as association of persons‟ has been considered as a separate legal entity under the Income-tax Act for assessment and provided separate PAN number different from the PAN number possessed by individual co-owners; who joined together to form an association of persons‟. In the present case, the show cause notices were issued in many cases to one person among the Joint owners and in other cases to all the persons who had jointly owned the immovable property provided on rent. Needless to mention, the Service Tax Registration of individual assessees for collection of Service Tax is PAN based, hence, collection of Service Tax from one of the co-owners, against his

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service provided by a service provider is ascertainable Service Tax is accordingly charged. This Tribunal in similar facts and circumstances in the cases of Deoram Vishrambhai Patel, Anil Saini & Others and Luxmi Chaurasia (supra) after considering the issues raised, rejected the contention of the Revenue and allowed the benefit of exemption Notification No. 6/2005-S.T., dt.1-3-2005 as amended to individual co-owners who jointly owned the property and provided the service of renting of immovable property, and received the rent in proportion to the shares in the immovable property. Similar issue was considered in the cases relied by the ld. consultant for the appellants. 7. Following the said decisions, we are of the considered opinion that the demand cannot sustain and requires to be set aside. The impugned order is set aside and the appeal is allowed with consequential relief, if any. (Operative portion of the order was pronounced in open court) – Case laws – Decisions – Judgeme

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Tax Deduction at source as per Section 51 of Goa Goods and Services Tax Act, 2017 and Section 51 of the Central Goods and Services Tax Act, 2017 and procedure / guidelines to be followed by Drawing and Disbursing Officers (DDO s) / Government Departments or Government Agencies / Local authorities etc. of the State Government. – GST – States – 8/1/2017-Fin (R&C) – Dated:- 25-9-2018 – Government of Goa Department of Finance (Revenue & Control) Secretariat, Porvorim, Bardez – Goa – 403521. No. 8/1/2017-Fin (R&C) Dated:- 25/09/2018 Read: Circular No. 8/1/2017-Fin(R&C) dated 25/07/2017. CIRCULAR Sub:-Tax Deduction at source as per Section 51 of Goa Goods and Services Tax Act, 2017 and Section 51 of the Central Goods and Services Tax

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2017, and also, section 51 of the CGST Act, 2017, had not been brought into force and thus, the said levy of TDS had not been implemented till date. 2. Pursuant to the decision taken by the GST Council, the Central Government vide Notification No. 50/2018-Central Tax dated 13/09/2018 (published in The Gazette of India : Extraordinary, Part II – Section 3 (i) dated 13/09/2018) has notified 01/ 10/2018 as the date on which section 51 of the CGST Act, 2017, shall come into force. Likewise, the State Government, vide Notification No. 38/1/2017/Fin(R&C)(72) dated 21/09/2018 (published in the Official Gazette, Extraordinary No. 2, Series I No. 25, dated 21/09/2018) has notified 01/10/2018 as the date on which the provisions of section 51 of t

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2018 (10) TMI 211 – CESTAT NEW DELHI – TMI – Condonation of delay of 23 days in filing appeal – reasons stated is that the Counsel Shri Aakash Gupta was ill for the period 25th June 2018 to 8th July 2018 which has resulted in the delay – Held that:- It is found that delay is explained to some part – we condone the delay subject to payment of cost of ₹ 5000/- payable in ‘Kerala Chief Minister Relief Fund’ on or before 1st November, 2018 and to tag appeal Nos. E/2224-2225/2012-EX.(DB) with this appeal. – E/COD/50910/2018 in Appeal No. E/52536/2018-DB – Misc. Order No. 50686/2018 – Dated:- 25-9-2018 – Mr. Anil Choudhary, Member (Judicial) And Mr. Bijay Kumar, Member (Technical) For the Appellant : None For the Respondent : Shri S.K. Ban

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