Goods and Services Tax

M/s Varun Beverages Limited Versus State Of U.P. And 2 Others
GST
2019 (1) TMI 946 – ALLAHABAD HIGH COURT – TMI
ALLAHABAD HIGH COURT – HC
Dated:- 11-1-2019
Writ Tax No. – 1670 of 2018
GST
B. Amit Sthalekar And Mrs. Manju Rani Chauhan JJ.
For the Petitioner : Shubham Agrawal
For the Respondent : C.S.C.
ORDER
Heard Sri Shubham Agrawal, learned counsel for the petitioner, Sri C.B.Tripathi, learned Standing Counsel for the respondents.
The petitioner in the writ petition i

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M/s Varun Beverages Limited Versus State of U.P. And 2 Others
GST
2019 (1) TMI 809 – ALLAHABAD HIGH COURT – TMI
ALLAHABAD HIGH COURT – HC
Dated:- 11-1-2019
Writ Tax No. – 1666 of 2018
GST
B. Amit Sthalekar And Mrs. Manju Rani Chauhan JJ.
For the Petitioner : Shubham Agrawal
For the Respondent : C.S.C.,C.B.Tripathi
ORDER
Heard Sri Shubham Agrawal, learned counsel for the petitioner, Sri C.B.Tripathi, learned Standing Counsel for the respondents.
The petitioner in the wr

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M/s. COASTAL FREEZ TECH AND SANITARIES Versus GOODS SERVICE TAX COUNCIL O/O THE GST COUNCIL SECRETARIAT, NEW DELHI, THE PRINCIPAL CHIEF COMMISSIONER CENTRAL GOODS AND SERVICE TAX CENTRAL REVENUE, ERNAKULAM, THE PRINCIPAL CHIEF COMMISSIONER, ERNAKULAM, THE COMMISSIONER STATE GOODS AND SERVICE TAX, TAX, THIRUVANANTHAPURAM, THE GOODS AND SERVICE TAX NET WORK PVT. LTD., THE ASST. COMMISSIONER OF STATE TAX STATE GOODS AND SERVICE TAX (KERALA), THRISSUR AND THE DEPUTY COMMISSIONER STATE GOODS AND SERVICE TAX (KERALA), KOCHI
GST
2019 (1) TMI 808 – KERALA HIGH COURT – [2019] 63 G S.T.R. 308 (Ker)
KERALA HIGH COURT – HC
Dated:- 11-1-2019
WP(C). No. 42348 of 2018
GST
MR DAMA SESHADRI NAIDU, J.
For The Petitioner : ADVS. SMT. S.

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t of India 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, Central and State government would appoint nodal officers in requisite number to address the problem a taxpayer faces due to glitches, if any, in the Common Portal. This would be publicized adequately.
5.2 Taxpayers shall make an application to the field officers or the nodal officers where there was a demonstrable glitch on the Common Portal in relation to an identified issue, due to which the due process as envisaged in law could not be complete

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roached this Court. Both the learned counsel submit that this Court on earlier occasions permitted the petitioners to apply to the sixth respondent for the issue resolution.
5. So, in this case also, the petitioner may apply to the sixth respondent, the Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner's uploading FORM GST TRAN-1, without reference to the time-frame. Ordered so.
6. To set a time frame, I may also observe that if the petitioner applies within two weeks after receiving this judgment, the Nodal Officer will consider and take steps within a week thereafter. If the uploading of FORM GST TRAN-1 is not possible for reasons not attributable to the petitioner, the auth

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Casa Grande Co-Operative Housing Versus Commissioner of CGST, Mumbai South
Service Tax
2019 (1) TMI 721 – CESTAT MUMBAI – 2019 (29) G. S. T. L. 349 (Tri. – Mumbai)
CESTAT MUMBAI – AT
Dated:- 11-1-2019
Appeal No. ST/86347/2018 – A/85048/2019
Service Tax
Mr. S.K. Mohanty, Member (Judicial)
Shri Vipin Jain, Advocate for appellant
Shri M.K. Sarangi, Jt. Commr (AR) for respondent
ORDER
Per: S.K. Mohanty
This appeal is directed against the impugned order dated 28.12.2017 passed by the Commissioner of Central Tax (Appeals), Mumbai, upholding the adjudication order dated 11.11.2006, by which the Asst. Commissioner (Refund), Service Tax-II, Mumbai had rejected the claim for refund of service tax amounting to Rs. 20,38,255/- filed by the appellant.
2. Brief facts of the case are that the appellant is engaged in providing taxable service under the category of “Club or Association Service” defined under Section 65(25a) of the Finance Act, 1994. The appellant is regis

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dated 28.12.2017 has upheld rejection of the refund application by the original authority.
3. Learned Advocate appearing for the appellant submitted that for the first time the appellant became aware about the decision rendered by this Tribunal in the case of Matunga Gymkhana vs. Commissioner of Service Tax, Mumbai – 2015 (38) STR 407 (Tri-Mum), holding that contribution received by the housing society from its members is not exigible to service tax under the Head “Club or Association Service” and accordingly, upon seeking legal opinion, filed an application dated 19.08.2016, claiming refund of service tax paid during the period 2005-06 to 2014-15. He further submitted that since the levy of service tax under such category of service was held as unconstitutional by the Hon'ble Gujarat High Court in the case of Sports Club of Gujarat Ltd.[2013 (31) STR 645 (Guj.)] and by Hon'ble Jharkhand High Court in the case of Ranchi Club Ltd.[ 2012 (26) STR 401 (Jhar.)], the limitation prescribed

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bed under the statute is strictly applicable for consideration of the refund application and the statutory authorities are not empowered to relax the limitation period, while entertaining the application filed under the statute. In support of such arguments, the learned D.R. has relied on the judgments' of the Hon'ble Supreme Court in the case of Miles India Ltd. – 1987 (30) ELT 641 (SC), Collector v. Doaba Co-operative Sugar Mills – 1988 (37) ELT 478 (SC) and Assistant Collector of Customs v. Anam Electrical Manufacturing Co. – 1997 (90) ELT 260 (S.C.). The learned D.R has also relied on the judgment of the Hon'ble Supreme Court in the case of Mafatlal Industries Ltd. (supra) to state that where the tax levy is declared unconstitutional by the competent court, the claim for refund will not arise under such law, which was so affirmed as illegal. Therefore, he submitted that refund application filed by the appellant cannot be governed under Section 11B of the Act, and accordingly, rejec

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ce tax). Clause (f) in explanation (B), appended to Section 11B ibid provides the relevant date for the purpose of computation of limitation period for filing of refund application. As per the said statutory provisions, in the case of the present appellant, the date of payment of service tax should be considered as the relevant date. Section 11B ibid mandates that the refund application has to be filed before the expiry of one year from the relevant date. In this case, it is an admitted fact on record that the refund application was filed by the appellant beyond the statutory time limitation prescribed under the statute. Therefore, the refund sanctioning authority adjudicating the refund issue under the statute has no option or scope to take a contrary view, than the position prescribed in the statute, to decide the issue differently. In other words, when the wordings of Section 11B are clear and unambiguous, different interpretations cannot be placed by the authorities functioning und

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authorities acting under the Act were justified in disallowing the claim of refund, as they were bound by the period of limitation provided under Section 27(1) of the Customs Act, 1962 [pari materia with Section 11B (supra)].
6.1 In view of the above settled principles of law and in view of the fact that the refund applications were filed and decided under Section 11B ibid, the time limit prescribed there-under was strictly applicable for deciding such issue. Since, the authorities below have rejected the refund applications on the ground of limitation, I do not find infirmity in such orders, as the same are in conformity with the statutory provisions.
6.2 The ratio of the judgment delivered by the constitutional Bench of Hon'ble Supreme Court in the case of Mafatlal Industries (supra) will not support the case of the appellant inasmuch as, when any provision in the statute has been held to be unconstitutional, refund of tax under such statute will be outside the scope and purview of

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M/s Sucden India Pvt. Ltd. Versus CCGST, Mumbai South
Service Tax
2019 (1) TMI 718 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 11-1-2019
APPEAL NO. ST/86033/2018 – A/85053/2019
Service Tax
SHRI S K MOHANTY, MEMBER (JUDICIAL)
Shri Anand Desai, C.A. for Appellant
Shri Dilip Shinde, Assistant Commissioner (AR) for Respondent
ORDER
Per: S K Mohanty
The issue involved in this appeal relates to the time limit within which the refund application has to be filed under the statute. In this case, the appellant had filed the refund application under Notification No. 41/2012-ST dated 29.06.2012, claiming refund of Service Tax paid on the input services, used for export of the output service. The refund application was filed on 21.04.2016. The matter was adjudicated vide order dated 24.08.2016, wherein the refund claim was favourably considered by the original adjudicating authority. Feeling aggrieved with the said adjudication order, Revenue had filed appeal befo

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ice Tax Department was closed. He further submitted that on 20.04.2016, the signed refund application was received from Delhi office and as per the directions of the jurisdictional Assistant Commissioner, the refund application together with the supporting documents were filed before the department on 21.04.2016. Thus, the Learned Consultant submitted that delay in filing of refund application should be condoned in the interest of justice. In support of his stand that delay in filing of refund application can be condoned in the circumstances of the case, he has relied on the judgment of Hon'ble Supreme Court in the case of Raj Kumar Dey and Others Vs. Tarapada Dey and Others – AIR 1987 SUPREME COURT 2195 and the judgment of Hon'ble Bombay High Court in the case of Rama Aba Singale and Others Vs. Sumitrabai and Another – AIR 1979 BOMBAY 14 and Pratapsing Ganpatrao Kadam Vs. Maruti Raghunath Todkar – AIR 2003 BOMBAY 11, also the judgment of Hon'ble Madras High Court in the ca

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). In addition, the Learned DR also relied on the recent decision of the Larger Bench of this Tribunal in the case of Veer Overseas Ltd. Vs. Commissioner of Central Excise, Panchkula [2018- TIOL-1432-CESTAT-CHD-LB].
4. Heard both sides and perused the case records.
5. In this case, the appellant had filed the refund application, claiming refund of service tax paid on the input services. The refund application was filed under notification no. 41/2012 ST dated 29.06.2012. Filing of refund application is governed under the provisions of Section 11B of the Central Excise Act, 1944, as made applicable to the service tax matters under Section 83 of the Finance Act, 1994. The statute provides that the refund application should be filed with the competent authority before the expiry of one year from the relevant date. In view of date of issue of LEO, the refund application was required to be filed on or before 14.04.2016. The appellant contended that it had tried to file refund claims online

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late filing of the refund application. In context with adherence of the prescribed time limit for entertaining the refund application, the Hon'ble Supreme Court in the case of Miles India Limited (supra) have endorsed the views expressed by the Tribunal that the customs authorities acting under the Act were justified in disallowing the claim of refund, as they were bound by the period of limitation provided under Section 27(1) of the Customs Act, 1962 (pari materia to Section 11B of the Central Excise Act, 1944). Further, in the case of Daoba Co-operative Sugar Mills (supra), the Hon'ble Supreme Court have also held that if the proceedings have been taken under the Central Excise Act by the department, the provisions of limitation prescribed in such Act alone will prevail with regard to applicability of the time limit for filing the refund claim application. In this case, since the appeal of Revenue was allowed by the Learned Commissioner (Appeals) on the ground of limitation, holding

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M/s. Omkareshwar Engineering Versus CCGST & CX, Mumbai
Central Excise
2019 (1) TMI 703 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 11-1-2019
Application No. E/COD/86540/2018, Appeal No. E/88856/2018 – A/85063/2019
Central Excise
Dr. Suvendu Kumar Pati, Member (Judicial)
Shri S.V. Nair, Advocate for the appellant
Shri Anil Chaudhary, AC (AR) for the respondent
ORDER
COD application which was heard on 17.12.2018 is taken up for final order.
2. The contention of the applicant is that there was labour unrest and strike for which staff and workers were not cooperating the management and due to such non-cooperation attitude appellant was unable to trace the correct date of receipt of impugned order as the same was received by staff from whom the order was recovered and appeal was filed that caused delay of 38 days.
3. Learned counsel for the appellant, in referring to copies of police report etc. annexed to COD vide exhibit A pleaded that those documents wo

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d document which indicated that there was strike and unrest in the factory and jurisdiction police station namely Dahanu and Dy. Commissioner of Labour, Boisar were intimated by the appellant regarding such unrest.
6. Appellant claims that the copy of the order of the Commissioner (Appeals) is served on one staff contrary to the Rule which is contrary to the decision of the Hon'ble High Court of Chattisgarh at Bilaspur reported in 2017 (345) ELT 357 (Chattisgarh) and the same is miscarriage of justice as pointed out in the judgment of the Hon'ble Supreme Court in the decision reported in 2015 (322) ELT 192 (SC).
7. Be that as it may, the delay of 38 days in filing appeal which appellant attributes to the strike and unrest in its factory appears to be sufficient cause for the purpose of Condonation. It has been held by the Hon'ble Supreme Court in 1987 (28) ELT 15 that when substantial justice and technical consideration are pitted against each other, cause of substantial just

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of prime importance.
9. I therefore condone the delay and admit the appeal for hearing. Section 35C empowers this Tribunal to confirm, modify or annul the decision of the order appeal against, which indicates that the merit of the decision is to be assessed by the Appellate Tribunal. In the instant case, as found from the order of the Commissioner (Appeals), no merit concerning tax liability of the appellant has been discussed and the appeal filed by him was rejected as not maintainable as hit by the period of limitation.
10. Section 35B (b) empowers the Appellate Tribunal to entertain appeal against an order passed by the Commissioner (Appeals) under Section 35A and in view of Sub-Section 4 to Section 35A, such order of the Commissioner (Appeals), at the time of disposal of appeal before him, shall state the points for determination, the decision thereon and the reasons for such decisions. Hon'ble Supreme Court in Saheli Leasing & Industry Ltd. – 2010 (253) ELT 705 (SC) also propose

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GST on Development agreement
Query (Issue) Started By: – Ritesh Mehta Dated:- 10-1-2019 Last Reply Date:- 14-1-2019 Goods and Services Tax – GST
Got 2 Replies
GST
An individual enters into development agreement with a builder for a consideration of X amount.
The Consideration is completely in cash and not kind.
Not. No.4/2018 Dtd.25/01/18 mandates GST on development rights to be paid by registered person on consideration recd. from builder.
My take on this is that GST shall not be applicable as it is not a Supply Per Se.
If read with Sec. 7, which defines supply to be in the course or furtherance of business.
It is not a business for that individual to enter into agreement with the builder. It was his one of the land on wh

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GST Council Boosts Small Business: New Exemption Limits, Simplified Compliance, and Composition Scheme for Service Providers Announced.
News
GST
Major Decisions taken by the GST Council in it

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Major Decisions taken by the GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley
GST
Dated:- 10-1-2019

The GST Council in its 32nd Meeting held today under the Chairmanship of the Union Minister of Finance & Corporate Affairs, Shri Arun Jaitley in New Delhi took the following major decisions to give relief to MSME (including Small Traders) among others –
1. Increase in Turnover Limit for the existing Composition Scheme: The limit of Annual Turnover in the preceding Financial Year for availing Composition Scheme for Goods shall be increased to ₹ 1.5 crore. Special category States would decide, within one week, about the Composition Limi

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ion Scheme shall be made available for Suppliers of Services (or Mixed Suppliers) with a Tax Rate of 6% (3% CGST +3% SGST) having an Annual Turnover in the preceding Financial Year up to ₹ 50 lakhs.
3.1 The said Scheme Shall be applicable to both Service Providers as well as Suppliers of Goods and Services, who are not eligible for the presently available Composition Scheme for Goods.
3.2 They would be liable to file one Annual Return with Quarterly Payment of Taxes (along with a Simple Declaration).
4. Effective date: The decisions at Sl. No. 1 to 3 above shall be made operational from the 1st of April, 2019.
5. Free Accounting and Billing Software shall be provided to Small Taxpayers by GSTN.
6. Matters referred to Group of Mi

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Recommendations made during 32nd Meeting of the GST Council held on 10th January, 2019
GST
Dated:- 10-1-2019

Press Release
January 10, 2019
The GST Council in its 32nd meeting held today at New Delhi gave approval for the following:
a. Changes made by CGST (Amendment) Act,2018, IGST (Amendment) Act, 2018, UTGST (Amendment) Act, 2018 and GST (Compensation to States) Amendment Act, 2018 along with amendments in CGST Rules, notifications and Circulars issued earlier and the corresp

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GST exemption limit doubled to give relief to small businesses
GST
Dated:- 10-1-2019

New Delhi, Jan 10 (PTI) In a bid to give relief to small businesses, the GST Council Thursday doubled the exemption limit and raised the threshold for availing the composition scheme.
The GST Council doubled the GST exemption limit to ₹ 20 lakh for north eastern states and ₹ 40 lakh for the rest of the country, Finance Minister Arun Jaitley told reporters here.
The scope of the GST Co

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Restaurant or canteen
Query (Issue) Started By: – Ravikumar Doddi Dated:- 10-1-2019 Last Reply Date:- 14-1-2019 Goods and Services Tax – GST
Got 2 Replies
GST
Applicant running a canteen in a Hospital, Hospital provides power supply by a sub meter to the canteen, which bills are coming ₹ 1 lak and above per month, hospital collecting 18% GST, is it correct sir, if any exemption please provide Notification/circular and HSN/SAC Code on which they are collecting 18%
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
Hospital is correct. HSN Code is 9969. The relevant extract of Notification No. 11/17-Central Tax (Rate) dated 28.6.17 is reproduced as under :
Sl.No.
Chapter, Section, Heading, Group or Service Code (Tariff)

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8 clarifying the notification no. 46/2017 C.T(R) dated 14th November 2017.
Only way to avail exemption from GST levy by Hospital on this transaction is through Pure Agency Concept.
Pure Agent is the person enters into a contractual agreement with the recipient of supply to act as his pure agent to incur expenditure or costs in the course of supply of goods or services or both; neither intends to hold nor holds any title to the goods or services or both so procured or supplied as pure agent of the recipient of supply; does not use for his own interest such goods or services so procured and receives only the actual amount incurred to procure such goods or services in addition to the amount received for supply he provides on his own account.

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RCM on Security Services
Query (Issue) Started By: – Ethirajan Parthasarathy Dated:- 10-1-2019 Last Reply Date:- 12-1-2019 Goods and Services Tax – GST
Got 7 Replies
GST
An individual is registered under GST. He has engaged the services of security agencies (which is a partnership firm). Their services are used for his residence which is personal expense. I am of the opinion that he is not liable for RCM tax. Please confirm..
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
It is taxable. The supplier of Service is other than body corporate (Partnership) and receiver is a registered person. (A person who is registered under GST is registered for business. He may use security service for residence.That is a separate issue) Th

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goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
So, all the provision of the act will apply to recipient and in tax payable in relation to the supply. As per Sec 7(1) (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
Security service at home of registered person is not in the course or furtherance of business but its personal in nature. GST is basically tax on business. The said transaction is personal in natur

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on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both.
Does it mean that a Registered proprietor purchase from unregistered person items like vegetables, clothes, payment made to house servant etc for his home he has to pay RCM on such supply.
in my view he is not required to pay RCM on such supply. Same logic may also apply for security services as provision of sec 9(3) and 9(4) are similar.
Reply By KASTURI SETHI:
The Reply:
Analogy does not come into picture. Here emphasis is to be laid on the language of notification dated 31.12.18 itself.
Discussion Forum – Knowledge S

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Possible positive impact of GST Audit by a CA or a CWA
By: – Shilpi Jain
Goods and Services Tax – GST
Dated:- 10-1-2019

As per section 35(5), 44(2) of the CGST Act, 2017 read with rule 80(3) of the CGST Rules, 2017, every registered person whose aggregate turnover during a financial year exceeds two crore rupees, shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C, electronically through the common portal either directly or through a Facilitation Centre notified by the Commissioner.
Initially there was no clarity whether a separate audit will have to be carried out for the purposes of GST or the audit done under the existing laws would suffice. However, with the Form GSTR – 9C being notified it had become clear that a separate audit report need not be issued for the purposes of GST and that the already existing audited fina

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this Act or the rules made thereunder or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder.
From the above definition it seems that there is a vast responsibility laid on the GST auditor whereby he has to go the extent of assessing the level of compliance with the provisions of the Act. However, since the paper writer's intention in the present case is not to resolve the above conflict but to bring out what positive can be taken out of this audit exercise, it is not discussed here as to which view is correct in law. Further, before getting into the subject of the positive impact, let us classify the assessees into the following basic categories:
* Those who do not wish to take any risk and take the conservative approach in complying with the law.
* Those, for whom business needs are the fir

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e would get identified and reported) and in cases of assessees who came under the department scanner, were burdened heavily with interest, penalties and litigation costs. All in all, it was creating a very negative environment when it came to compliance under the indirect tax laws.
However, the scenario should be a little different (if not more) under GST. Under GST the assessee has the chance of getting an audit done by a qualified professional and to understand the nuances of the law (including the procedural aspects) by way of a comprehensive compliance report whereby the assessee can take a reasoned decision on various aspects while being aware of the risk that it is carrying for the non-compliance, if any. Further, all of this being within a reasonable time of the completion of the transaction, as compared with 3 to 4 years under the earlier laws.
Another way of reducing the risk of non-compliance and to facilitate a reasoned decision making w.r.t. GST would be the services of a

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arly and assessee will be better educated of the provisions of the law that have to be complied with, as against the scheme of things that existed under the earlier laws.
It is pertinent to point out here that the penalties under Indirect tax laws are more stringent than those in the direct tax laws as IT is on income whereas IDT is on revenue. Hence the stakes are very high (which could many times be fatal to the business). Hence, there is a need to be more cautious under the IDT laws.
Under GST when the audited financials are submitted with the reconciliations in Form GSTR-9C, it will become very difficult for the department to invoke the extended period of limitation. Further another benefit of the audit provision is that now it would be mandatory for all assesses crossing the prescribed limit to get the IDT audit done, which would have otherwise not been sanctioned by the management of the small assesses. Hence it would be very important to hire a professional who has very good k

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RECENT NOTIFICATIONS FOR CGST ACT
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 10-1-2019

The Central Government has issued 13 notifications for CGST Act for the implementation of the decisions taken in the recent GST Council from Notification No. 67 to Notification No. 79 on 31.12.2018.
Notification No. 67/2018-Central Tax
This notification seeks to extend the time period specified in notification No. 31/2018-CT dated 06.08.2018 for availing the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process.
* Notification No. 31/2018-Central Tax, dated 06.08.2018 specified the persons who did not file the complete FORM GST REG- 26 of the Central Goods and Services Tax Rules, 2017 but received only a Provisional Identification Number till the 31st December, 2017 may apply for Goods and Services Tax Identification Number (GSTIN) on or before 31.08.2018.
* On receipt of ARN nu

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ho have obtained Goods and Services Tax Identification Number (GSTIN) shall be furnished electronically through the common portal on or before the 31st day of March, 2019.
* Notification No. 56/2017-Central Tax, dated 15.11.2017 provides that the return in FORM GSTR-3B is to be filed for the period from July, 2017 to November 2018 by the taxpayers who have obtained Goods and Services Tax Identification Number (GSTIN) shall be furnished electronically through the common portal on or before the 31.12.2018.
* Notification 68/2018-Central Tax amended the Notification No. 56/2017 and provides that the return in FORM GSTR-3B is to be filed for the period from July, 2017 to February 2019 by the taxpayers who have obtained Goods and Services Tax Identification Number (GSTIN) shall be furnished electronically through the common portal on or before the 31st day of March, 2019.
Notification No. 69/2018-Central Tax
This notification seeks to extend the time limit for furnishing the return in

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Services Tax Identification Number (GSTIN) in terms of shall be furnished electronically through the common portal on or before the 31st day of December, 2018.
* Notification 69/2018-Central Tax amended the Notification No. 35/2017-Central Tax and provides that that the return in FORM GSTR-3B is to be filed for the period from July, 2017 to February 2019 by the taxpayers who have obtained Goods and Services Tax Identification Number (GSTIN) in terms of shall be furnished electronically through the common portal on or before the 31.03.2019.
Notification No. 70/2018-Central Tax
* The third proviso to para 1 of Notification No. 34/2018-Central Tax, dated 10.08.2018 provides that the return in of the said rules to be filed for the period from July, 2017 to November 2018 who have obtained Goods and Services Tax Identification Number (GSTIN) shall be furnished electronically through the common portal on or before the 31.12.2018.
* This notification amended by which the return in of th

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oth in FORM GSTR-1 to be filed for the quarters from July, 2017 to September, 2018 by the taxpayers who have obtained Goods and Services Tax Identification Number (GSTIN), shall be furnished electronically through the common portal, on or before the 31.12.2018.
* This notification amended by which the return in of the said rules to be filed for the period from July, 2017 to December 2018 who have obtained Goods and Services Tax Identification Number (GSTIN) shall be furnished electronically through the common portal on or before the 31.03.2019.
Notification No.72/2018-Central Tax
This notification seeks to extend the time limit for furnishing the details of outward supplies in FORM GSTR-1 for the newly migrated taxpayers.
* Vide Notification No.44/2018-Central Tax, dated 10.09.2018 the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the details of outward supplies in of the Central Goods and Services Tax Rules, 2017, by such class

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ment Departments and PSUs to other Government Departments and vice-versa from TDS. This notification seeks to insert a third proviso after the second proviso in the Notification No. 50/2018-Central Tax, dated 13.09.2018(notified the appointed date for section 50 as 01.10.2018). The newly inserted proviso provides that nothing in the notification No. 50/2018-Central Tax shall apply to the supply of goods or services or both which takes place between one person to another person specified under clauses (a), (b), (c) and (d) of sub-section (1) of section 51 of the Act
Section 51(1) provides that 51 (1) provides that notwithstanding anything to the contrary contained in this Act, the Government may mandate,
(a) a department or establishment of the Central Government or State Government; or
(b) local authority; or
(c) Governmental agencies; or
(d) such persons or category of persons as may be notified by the Government on the recommendations of the Council,
to deduct tax at the rate o

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notification inserted the secondproviso which providesthat the amount of late fee payable under section 47 of the said Act shall stand waived for the registered persons who failed to furnish the details of outward supplies in FORM GSTR-1 for the months/quarters from July, 2017 to September, 2018 by the due date but furnishes the said details in FORM GSTR-1 between the period from 22nd December, 2018 to 31st March, 2019.
Notification No. 76/2018-Central Tax
This notification seeks to specify the late fee payable for delayed filing of FORM GSTR-3B and fully waive the amount of late fees leviable on account of delayed furnishing of FORM GSTR-3B for the period July, 2017 to September, 2018 in specified cases.
This notification provides that the amount of late fee payable under section 47 of the said Act, shall stand waived for the registered persons who failed to furnish the return in FORM GSTR-3B for the months of July, 2017 to September, 2018 by the due date but furnishes the said re

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m July, 2017 to December, 2018 till the 31st day of March, 2019.
Notification No.79/2017-Central Tax
This notification amended the Notification No.2/2017-Central Tax, dated 19.06.2017 which prescribed the territorial jurisdiction officer. Table I of the said notification prescribed the jurisdiction of Principal Chief Commissioner/Chief Commissioner of Central Tax in terms of Principal Commissioners/Commissioners of Central Tax, Commissioners of Central Tax (Appeals), Additional Commissioner of Central Tax (Appeals) and Commissioners of Central Tax (Audit).
This notification provides that the central tax officer and the officers subordinate to him as detailed below-
* Principal Chief Commissioner;
* Chief Commissioner;
shall exercise powers under sections 73, 74, 75 and 76 of Chapter XV of the said Act throughout the territorial jurisdiction of the corresponding central tax officer of Principal Chief Commissioner/Chief Commissioner in respect of those cases as may be assigned by

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31st GST Council Meeting Update
By: –
Goods and Services Tax – GST
Dated:- 10-1-2019

Hi Readers,
This is to inform that the GST council in their 31st council meeting held at New Delhi on 22nd Dec 18 has recommended various changes and thereafter notified by issuance of notification under GST law and its compliance, which are summarized below:
Central Tax Notifications
[Notification No. 67/2018 Central Tax dated 31st December, 2018]
Extension in time limit for availing the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process to 31st Jan 19 and to furnish other details to migration@gstn.org.in to 28th Feb 19.
[Notification No. 68/2018, 69/2018 & 70/2018 Central Tax dated 31st December, 2018]
Time limit for furnishing the return in FORM GSTR-3B for the newly migrated taxpayers as specified in Notification No 31/2018
Particular
Period
Due Date
Prior to change
Jul 17 to Nov 18
31st Dec

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ted 31st December, 2018]
Changes in GST Form-9 & 9C
GSTR-1 and GSTR-3B to be filed before filing of GSTR-9
It is mandatory for a registered person to file all GSTR-1 and GSTR-3B for the FY 2017-18 before filing of GSTR-9.
GSTR-4 to be filed before filing of GSTR-9A
It is mandatory for a registered person under composition scheme to file all GSTR-4 returns for the FY 2017-18 before filing of GSTR-9A
Additional Liability to be paid through DRC-03
Any transaction resulting in additional liability which is declared in GSTR-9 to be discharged in Cash Only by way of DRC-03 form
Input Tax Credit cannot be availed through Form 9 & 9C
Registered person cannot claim any ITC unclaimed during FY-17-18 through Form 9 & 9C return. All unclaimed ITC has to be claimed through GSTR-3B only for which Government has extended the due date till the month of filing of Return for 31st March 2019.
Change in Heading of Form GSTR-9 & GSTR-9A
Amendment of headings in the forms to specify that the retu

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r 19
[Notification No. 76/2018 Central Tax dated 31st December, 2018]
Complete waiver of Late fees for late filling of GSTR-3B for period of Jul 17 to Sept 18, if GSTR-3B filled between period from 22nd Dec 18 to 31st Mar 19
[Notification No. 77/2018 Central Tax dated 31st December, 2018]
Complete waiver of late fees for late filling of GSTR-4 for the period of Jul 17 to Sept 18, if furnished between period from 22nd Dec 18 to 31st Mar 19
[Notification No. 78/2018 Central Tax dated 31st December, 2018]
Extension of time limit for filling of Form GST ITC-04, in respect of goods dispatched to Job worker or received from Job worker to 31st Mar 19 for the period Jul 17 to Dec 18
[Notification No. 79/2018 Central Tax dated 31st December, 2018]
Amendment in Notification No.-2/2018 for insertion of proviso which provides officers for exercising power under Section 73, 74, 75 & 76 through the jurisdictional senior authority.
Central Tax (Rate) Notifications
[Notification No. 24/2018

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such proof of export is not produced within the period mentioned in condition (ii), the Nominated Agency shall pay the amount of central tax payable on the quantity of gold not exported, along with interest from the date when the said tax on such supply was payable, but for the exemption.
[Notification No. 27/2018 – Central Tax (Rate) dated 31st December, 2018]
Change in Rate of tax on supply of Services
* Service by way of construction or engineering or installation or other technical services, provided in relation of setting up of Bio-gas plant, Solar power based devices, Solar power generating system, Wind mills, Wind Operated Electricity Generator (WOEG), Waste to energy plants/devices, Ocean waves/tidal waves energy devices/plants will be taxable at 18%
* Supply of Food & Beverage to School & College will be exempted.
* Transportation of passengers, with or without accompanied baggage, by air, by non-scheduled air transport service or charter operations, engaged by specif

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sit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana
* Services provided by CG, SG, UT by way of guaranteeing the loans taken by PSUs or undertakings from Banking Companies shall be exempt
* Services provided by IIM will be qualify as educational institution thus remain exempt [Circular -84/01/2019-GST]
* Services provided by rehabilitation professionals recognized under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income- tax Act, 1961 (43 of 1961).
[Notification No. 29/2018 – Central Tax (Rate) dated 31st December, 2018]
Services Notified under Reverse Charge
* Services provided by business facilitator (BF) to a banking company will be liable to RCM
* Serv

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* It is clarified that the Government departments (i.e. Central Government, State Government, Union territory or a local authority) shall be liable to get registered and pay GST on intra-State and inter-State supply of used vehicles, seized and confiscated goods, old and used goods, waste and scrap made by them to an unregistered person
* It is clarified that in case of revision of prices, after the appointed date, of any goods or services supplied before the appointed day thereby requiring issuance of any supplementary invoice, debit note or credit note, the rate as per the provisions of the GST Acts (both CGST and SGST or IGST) would be applicable
* The provisions of section 51 of the CGST Act are applicable only to such authority or a board or any other body set up by an Act of parliament or a State legislature or established by any Government in which fifty-one per cent. or more participation by way of equity or control is with the Government
* It is clarified that as per the

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the CGST Rules.
* It is also clarified that the registered person shall be liable to pay tax under section 9 of the CGST Act from the date of issue of the order in FORM GST CMP-07.
* Provisions of section 18(1)(c) of the CGST Act shall apply for claiming credit on inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the date immediately preceding the date of issue of the order
Circular No. 78/50/2018-GST, dated 31 December 2018
Clarification on export of services under GST
It is clarified that the supplier of services located in India would be liable to pay integrated tax on reverse charge basis on the import of services on that portion of services which has been provided by the supplier located outside India to the recipient of services located outside India. Furthermore, the said supplier of services located in India would be eligible for taking input tax credit of the integrated tax so paid
Circular No. 79/50/2018-GS

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inputs. Tax rate on output supply being less than the rate of inputs is the reason of ITC accumulation for which refund is claimed.
Refund of accumulated ITC of input services and capital goods arising on account of inverted duty structure
* As per proviso to sub-section (3) of section 54, refund of unutilized ITC shall be allowed:
* “Where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies)”
* Inputs, as defined under clause (59) of section 2, means “any goods other than capital goods…”
* Thus, ITC on account of input services and capital goods shall not be included in the value of “Net ITC” for the purpose of Rule 89(5) and hence the same cannot be claimed as refund under section 54(3)
Refund to be allowed on all 'inputs' as the meaning and scope of term 'inputs' is very wide
* Definition of inputs under clause (59) of section 2 reads as follows:
* “Any

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18 allowed in July 2018? What is the amount of compensation cess to be refunded?
* Clarification:
* Circular 45/2018-CGST clarifies that a registered person making export of goods under LUT shall be eligible for claiming the refund of compensation cess paid on inputs used for making such supplies.
* A registered person, being eligible to claim refund of compensation cess paid during the period July 2017 – May 2018, shall calculate the refund amount for each month as per the formula specified in Rule 89(4), i.e.
Refund amount = (Turnover of zero rated supply of goods + Turnover of zero-rated supply of services)*Net ITC/Adjusted Total Turnover
* The sum of the eligible amount calculated above for the period July 2017 – May 2018 should be less than or equal to the amount actually claimed as refund in the month of July 2018.
* Whether refund of compensation cess paid on purchase of coal used for captive generation of electricity which is in turn used for manufacture of goods exp

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es issued by the supplier in previous month but filed in GSTR-3B of current tax period for the purpose of calculation of refund of unutilized ITC filed for the current tax period.
* It contends that the definition of relevant period mentioned in Rule 89(4) restricts the inclusion of the same, which reads as follows:
* “The period for which the claim has been filed”
* Thus, it has been clarified that refund claim filed for the relevant period is for the amount of Net ITC availed and not restricted only to the purchases made during the period. Moreover, section 16(4) also allows the registered person to claim ITC on or before the due date of filing of return for the month of September following the financial year to which the invoice pertains or the date of filing of annual return, whichever is earlier.
* Hence, if the invoice pertaining to the month of September on which ITC has been availed in the GSTR-3B of the month of October, the ITC for refund computation purpose would be

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* It would be incorrect to classify services of printing of pictures under SAC 998912 as the notes to SAC 998912 – Printing and reproduction services of recorded media, on a fee or contract basis specifically excludes such services
Circular No. 85/50/2018-GST, dated 1 January 2019
Whether supply of food and drinks by an educational institution to its students is eligible for exemption
* Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, Sl. No. 7(i) prescribes GST rate of 5% on supply of food and beverages services. Explanation 1 to the said entry states that such supply can take place at canteen, mess, cafeteria of an institution such as school, college, hospitals etc.
* On the other hand, Notification No. 12/2017-Central Tax (Rate), Sl. No. 66 (a) exempts services provided by an educational institution to its students, faculty and staff.
* A supply which is specifically covered by any entry of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017 is exemp

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n has not changed due to amendment of section 140(1)
* the transition of credit of taxes paid under section 66B of the Finance Act, 1994 was never intended to be disallowed under section 140(1)
* Under tax statutes, the word “duties" is used interchangeably with the word “taxes” and in the present context, the two words should not be read in a disharmonious manner
* No transition of credit of cesses, including cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975, would be allowed in terms of Explanation 3 to section 140, which shall become effective from the date the same is notified giving it retrospective effect
Order No 2/2018 – Central Tax dated 31 December 2018
* The said order has extended the time period relating to availment of Input tax credit pertaining to FY 17-18 and amendments in the details furnished in form GSTR-1 for FY 17-18 which are briefed below:
Extension of the due date for availing

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ate of furnishing of the return under section 39 for the month of September, 2018 till the due date of furnishing of the return under the said section for the month of March,2019 in respect of any invoice or invoice relating to such debit note for supply of goods or services or both made during the financial year 2017-18, the details of which have been uploaded by the supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019.”
Extending the time period to make amendments in details furnished in form GSTR-1 pertaining to FY 17-18
* Section 37(3) of the CGST Act allows rectification of any error or omission, if any in respect of return already filed. Proviso of the said section specifies that the rectification can be made till the filing of Annual return or due date of filing of September return following the financial year, whichever is earlier.
* Second proviso has been inserted via

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GST Migration — Frequently Asked Questions (FAQs) dated 28-03-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q 1. I am an existing PAN-based Service Tax (ST) and Central Excise (CE) assessee, and wish to enroll in GST. I have business premises and factories in the State of Telangana. Through the ACES portal, I received the Provisional ID and password for the State of Andhra Pradesh, whereas my Principle Place of Business is in Telangana.
Ans. Assessees situated in the State of “Telangana”, but incorrectly issued Provisional IDs and passwords for “Andhra Pradesh”, have now been issued new Provisional IDs and passwords for “Telangana”. The previous Provisional IDs and passwords issued for “Andhra Pradesh” have been cancelled, and can no longer be used for migrating to GST. You are requested to get new Provisional IDs and passwords through the ACES portal at www.aces.gov.in and complete the GST migration process. In case of any difficulties, please contac

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FSD002 is having business premises in Delhi, and branches in Haryana, Karnataka, Maharashtra and Tamil Nadu. In this case, the assessee is issued five Provisional IDs and passwords, one for each State.
The CR assessee may also have a factory (under Central Excise or CE registration) or a Service Tax (ST) single premises registration (independent of CR) in the State of Tamil Nadu (registration number ABCDE1234FXM001 or ABCDE1234FSD001). Then a Provisional ID and password for the State of Tamil Nadu will be issued against either the CE or ST registration number mentioned earlier. In this case, the CR assessee will get four Provisional IDs and passwords for the remaining States i.e. Delhi, Haryana, Maharashtra and Karnataka.
Q 3. I am an existing taxpayer and wish to enroll in GST. To complete the Provisional Registration process on the GST Common Portal, I need to enter the one-time-password (OTP) in the OTP Verification window. However, I received the OTP on my mobile number, and not

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the GST Common Portal, I entered the Provisional ID and password. After clicking the LOGIN button, I received the message: “User name or password is not valid. Please ensure that enrollment for your State has started”.
Ans. For further assistance, please contact the GST helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. To find the answer to your question, you can also refer to the Frequently Asked Questions or FAQs on the GST Common Portal.
Q 6. I am an existing taxpayer and wish to enroll in GST. I received the Provisional ID and password for migrating to GST. On the GST Common Portal, on the Login page, I entered the Provisional ID and password in the respective fields. After clicking the LOGIN button, I got the message: “Not activated”.
Ans. For further assistance, please contact the GST helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. To find the answer to your question, you can also refer to the Frequently Asked Questions or FAQs on the GST Common Portal.
Q 7.

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VAT assessee. I did not receive the Provisional ID and password for migrating to GST.
Ans. You may have multiple registrations under the State VAT department. For further investigation, please contact CBEC Mitra Helpdesk at cbecmitra.helpdesk@gst.gov.in or call at the toll-free number 1800-1200-232. When requesting help, please provide your registration details to CBEC Mitra Helpdesk. CBEC Mitra Helpdesk will notify you as soon as the issue is resolved.
Q 9. I am an existing PAN-based Service Tax (ST), Central Excise (CE) and State VAT assessee. For migrating to GST, I received the Provisional ID and password from the State VAT department. Do I also need to add my ST and CE registration details in the Enrolment Application also?
Ans. Yes, you must add your Service Tax (ST) and Central Excise (CE) registration details in GST FORM-20 on the GST Common Portal.
Note: Since GST registration is based on PAN and State, only one Provisional ID and password will be issued to a given PAN

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in GST. My previous registration number was ST001 and after cancellation (or surrender), my current registration number is ST002. However, a Provisional ID and password has been issued against my previous registration number ST001. I logged into the ACES portal (using my existing ACES username and password), and received the Provisional ID and password for my previous registration number ST001, but not for the current registration number ST002.
Ans. As a policy, if the assessee has multiple registrations within a State on the same PAN, only one Provisional ID and password will be issued, as per the following order: Only one Provisional ID and password will be issued to a given PAN within a State, irrespective of the number of registrations on that PAN within that State.
Apparently, you have more than one registration i.e., ST001 and ST002, of which registration number ST001 is either “Inactive” or “Surrendered”. However, as per CBEC guidelines, a Provisional ID and password has alr

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insert a “0” or zero as prefix to the token i.e., if you received an access token of”12345678″, then the corrected token number is “0012345678”. If the issue persists, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further assistance. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.
Q 13. I am an existing taxpayer and wish to enroll in GST. I received the Provisional ID and password for migrating to GST. On the GST Common Portal, on the Login page, I entered the Provisional ID and password in the respective fields. After clicking the LOGIN button, I got the message: “Not activated”.
Ans. Multiple causes may have contributed to this problem. For further investigation, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999. When you send your service request over email or phone, a s

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d. However, I have not received the one-time- password (OTP) on my registered email. The problem continued even after I clicked the “RESEND OTP” button on the GST Common Portal.
Ans. The one-time-password (OTP) may have been delivered to the spam folder of your registered email ID. Please check the spam folder of your email account. If you find the OTP in the spam folder, please change the spam-filter policy settings of your email account to allow legitimate emails sent by GSTN. This will ensure that a future OTP sent by GSTN is not marked or filtered as spam. If you do not find the OTP in the spam folder, please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.
Q 16. I am an existing taxpayer and wish to enroll in GST. While submitting GST FO

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h to enroll in GST. On submitting the Enrolment Application i.e., GST FORM-20 on the GST Common Portal, I received the message: “Submitted & Pending for verification”.
Ans. Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.
Q 19. I am an existing taxpayer and wish to enroll in GST. On the GST Common Portal, while filing GST FORM-20, the desired RANGE CODE is not appearing in the drop-down list.
Ans. Please contact the GST Helpdesk at helpdesk@gst.gov.in or call at 0124-4688999 for further investigation. When you send your service request over email or phone, a support ticket is registered with GST Helpdesk and the issue is forwarded to the appropriate technical team for analysis and resolution.
Manuals, Ready reckoner, Law and pract

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Lease Rental Costs During Pre-Operative Phase Not Eligible for ITC Under GST Act Section 17(5)(d.
Case-Laws
GST
Input tax credit (ITC) – The lease rental paid during the pre-operative period should be treated as part of the cost of goods and services received for the purpose of constructing an immovable property (other than plant and machinery) on the Applicant’s own account – Input tax credit is, therefore, not admissible on such lease rental in terms of section 17(5)(d) of the GST A

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PP Non-woven Bags Classified as Plastic Goods Under Subheading 3923 29, Subject to 18% GST Rate.
Case-Laws
GST
PP Non-woven Bags, specifically made from non woven Polypropylene fabric are pla

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Government Companies' Control Establishes TDS Liability for Applicant Under Companies Act, 2013 Section 2(27) and Section 51(1).
Case-Laws
GST
TDS liability – Specified person u/s 51(1) – The Central and the State Governments, therefore, acting through the government companies, are in a position to indirectly control the management or policy decisions of the Applicant. The Central and the State Governments, therefore, “control” the Applicant within the meaning of Section 2(27) of th

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DGFT Related GST FAQs dated 12-06-2017
General FAQ on GST – GST Frequently Asked Questions (FAQs)
GST
Q. 1. Will GST be debited in duty credit scrips such as Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS)?
Ans. No, MEIS and SEIS scrip would be used only for payment of Basic Customs Duty under GST regime.
Q. 2.  What is HSN code (under GST scheme) for my product? What is the applicable GST rate for my product?
Ans. Please visit CBEC site for details on HSN classification and GST rates for your products.
Q. 3.  As an EOU, BCD is exempted under customs notification 52/2003. In GST regime, EOUs should pay IGST on imports?
Ans. Only SEZs have been exempted from payment of IGST on

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C in GSTIN. It also advised to check correct PAN in GSTIN and IEC. You may contact jurisdictional DGFT regional office for updating correct PAN in IEC. From 1st July, in all shipping bills declaration of GSTIN will be mandatory for claiming ITC/refund of GST. Please refer to DGFT Trade Notice No. 9/2018, dated 12-6-2017 for changes in IEC with the introduction of GST.
Q. 7.  Under GST regime, can we get duty free benefit (all duties exempted) if we import using Advance authorization?
Ans. No, only basic customs duty will be exempted on imports made under Advance Authorisation. IGST will have to be paid on imports. IGST paid on import will be refunded on making exports.
Q. 8.  We are recently started export firm. Now we are in p

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M/s. ITC Ltd. Versus Commissioner of GST & Central Excise Coimbatore
Central Excise
2019 (2) TMI 1416 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 10-1-2019
E/42348/2018 – Final Order No. 40048 / 2019
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial)
For the Appellant : Shri V. Srinivasan, Consultant
For the Respondent : Shri L. Nandakumar, AC (AR)
ORDER
The appellant is a manufacturer of paper and paper products and they have other manufacturing units at Badrachalam, Bollaram and Tribeni. The Head Office of the appellant at Secunderabad receives invoices towards input services and distributes the credit among the various manufacturing units. For this purpose, the Head Office is registered as an ISD. Du

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er. He submitted that the rejection of credit is only on the ground of technical defects in the invoices. The audit team had scrutinized almost 30,000 entries and out of these only 50 ISD invoices have now been rejected stating that necessary details are not available in the invoices. The value of services or the distribution of the services, registration number of service provider and address of service provider were not noted in cases of certain invoices. He adverted to proviso to Rule 9(2) of CCR, 2004 and argued that in case of such technical defects, the AC/ DC ought to have verified the accounts of the appellant and allowed credit. When there is no dispute with regard to the services availed or the tax paid, the department ought not t

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issions, it is brought out that the rejection of credit is only for the reason of technical defects in the invoices. There is no dispute with regard to the services consumed. The argument of the ld. consultant that as per proviso to Rule 9(2), the AC / DC ought to have verified the accounts of the assessee when there are technical defects in the invoices is correct. I am of the view that the penalty imposed in this respect for wrongly availed credit is unjustified. The impugned order is modified to the extent of setting aside the penalty only without disturbing the disallowance of credit or the interest thereon. The appeal is partly allowed in the above terms with consequential relief, if any.
(Dictated and pronounced in open court)
Ca

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KERALA CO-OPERATIVE DEPOSIT GUARANTEE FUND BOARD Versus COMMISSIONER OF CENTRAL GST AND THE CUSTOMS EXCISE AND SERVICE TAX APPELLATE TRIBUNAL, BANGALORE
Customs
2019 (1) TMI 1151 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 10-1-2019
WP (C). No. 203 of 2019
Customs
MR. DAMA SESHADRI NAIDU, J.
For The Petitioner : ADV. SRI. ASOK M. CHERIAN
For The Respondent : SC SRI. SREELAL M. WARRIER
JUDGMENT
After suffering adverse orders, the petitioner filed the Exts.P2 and P3 appeals for the Assessment Years 2012-13 to 2014-15 and 2015-16. Pending those appeals, the petitioner received the Ext.P5 notice, on the same issue, for the Assessment Year 2016-17.
2. The petitioner, in this writ petition, questions the

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ment, on the other hand, fairly concedes that the appellate authority will consider the Exts.P2 and P3 appeals expeditiously.
5. As to the Ext.P5 notice, the learned Senior Standing Counsel assures the Court that as the petitioner has already replied to it, the primary authority will consider it without further delay.
6. The learned Senior Standing Counsel nevertheless submits that law does not permit staying the proceedings concerning other assessment years merely because appeals are pending for other assessment years. According to him, it is especially so when the assessee has already suffered adverse orders, which are now in appeal.
7. I reckon there is force in the learned Senior Standing Counsel's contentions. This Court cannot

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M/s. Binny Ltd. Versus Commissioner of GST & Central Excise Chennai
Service Tax
2019 (1) TMI 568 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 10-1-2019
Appeal No. ST/41095/2017 – Final Order No. 40051/2019
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial)
Ms. Parimala Devi, Advocate for the Appellant
Shri L. Nandakumar, AC (AR) for the Respondent
ORDER
Brief facts are that the appellants are providing services of Storage and Warehousing service, Cargo Handling service, Renting of Immovable Property service and GTA. During the course of audit, it was noticed that they had short-paid service tax on various services and also had wrongly availed abatement under Notification No. 1/2006-ST in respect of GTA s

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ng pointed out by the audit. Subsequently, before issue of show cause notice, the tax liability for the year 2010 – 11 was also paid. Interest was also paid except for an amount of Rs. 1,02,051/- which was to be quantified. The same has also been paid up before the passing of the adjudication order. She submitted that the delay in payment will not attract the ingredients of section 78 to impose penalty. Since substantial amount of the demand along with interest has been paid up before issuance of show cause notice, the benefit of Section 80 may be extended to the appellant. She relied upon the decision of the Tribunal in the case of Commissioner of Central Excise, Panchkula Vs. M/s. Krishna Cylinders – 2015 (1) TMI 1197 – CESTAT New Delhi a

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he penalties imposed. The appellants have paid up the entire tax liability along with interest. The amount of Rs. 34,24,678/- has been determined and confirmed by the authorities below. The adjudicating authority has imposed equal penalty under section 78. The appellant has established that they had paid up the entire service tax along with interest even though belatedly. It is submitted that the delay in payment was due to financial hardship and there was no intention to evade payment of service tax. In fact, there is nothing unearthed by the audit team. The entire demand has been quantified as reflected in the accounts of the appellant. The appellants have established reasonable cause for not paying the service tax and I am of the view th

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M/s. Pepsico India Holdings Pvt. Ltd. Versus Commissioner of GST & Central Excise Chennai South
Central Excise
2019 (1) TMI 559 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 10-1-2019
Appeal No. E/41945/2018 – Final Order No. 40050/2019
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial)
Shri Raghavan Ramabhadran, Advocate for the Appellant
Shri L. Nandakumar, AC (AR) for the Respondent
ORDER
Brief facts are that the appellants are engaged in the manufacture of aerated water, beverages and fruit pulp or juice based drinks. They are availing the facility of CENVAT credit on various input services. Show cause notice was issued to the appellant proposing to deny CENVAT credit availed by them on canteen services provided to employees and soil filling charges. The appellant accepted the objection in respect of credit availed on soil filling charges and reversed the credit. They defended the disallowance of credit on canteen services. After due process o

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n the definition of input service. The exclusion is applicable only to services relating to personal consumption. In other words, credit is eligible when outdoor catering services are not for personal consumption of the employees.
2.1 The Larger Bench of the Tribunal in the case of Wipro Ltd. Vs. Commissioner of Central Excise, Bangalore – 2018 (4) TMI 149 CESTAT Bangalore has held that outdoor catering services are excluded from the definition of input services with effect from 1.4.2011. This decision proceeds on the basis that outdoor catering services is specifically mentioned in the exclusion clause of the definition and that the intention of the legislature is to deny credit on such services. The ld. counsel argued that as per the definition of input services, the exclusion of outdoor catering is not unqualified. The definition does not exclude all catering services unconditionally. Only such outdoor catering services which are used primarily for personal use or consumption for e

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t stipulated in Workmen's Compensation Act, 1996 which is a beneficial legislation for the welfare of the employees. Since it is a statutory requirement, the Court held that the services cannot be held to be used primarily for personal use or consumption of an employee. Thus, the Hon'ble High Court has laid down a test as to whether the services used to provide certain employee benefit and whether it flows out of statutory requirement of a welfare labour legislation. Such services which are provided under a statutory requirement cannot be said to be used primarily for the personal use or consumption of an employee. He therefore argued that the exclusion clause of the definition will not take away outdoor catering services provided within the factory premises for the benefit of employees as per the statutory requirement.
2.3 He also adverted to the decision in the case of Hindustan Coca-Cola Beverages as reported in 2017 (49) STR 88 (Tri. Hyd.) and argued that the Tribunal in the said

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erpretational in nature involving legal provisions as seen from the fact that the matter was referred to the Larger Bench. The appellant was regularly filing returns and also disclosed the credit availed on outdoor catering service in their ST-3 returns. Therefore, there is no ingredients for imposing penalty and prayed to set aside the penalty.
3. The ld. AR Shri L. Nandakumar supported the findings in the impugned order. He adverted to definition of input service and submitted that after 1.4.2011, the exclusion clause has been added to the definition. As per clause (c) of the definition, the services in relation to outdoor catering, beauty treatment, health services etc. are excluded when such services are primarily for personal use or consumption of an employee. Outdoor catering services are used for consumption of the employees and therefore the authorities below have rightly disallowed the credit. He relied upon the decision of the Larger Bench of the Tribunal in the case of Wipr

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a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal, and includes services used in relation to modernisation, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage upto the place of removal, procurement of inputs, accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, security, business exhibition, legal services, inward transportation of inputs or capital goods and outward transportation upto the place of removal; but excludes services,-
(A) Service portion in the execution of a works contract and construction services including service listed under clause (b) of Section 66E of Finance Act (hereinafter referred as specified services) insofar as they are used for

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to employees on vacation such as Leave or Home Travel Concession, when such services are used primarily for personal use or consumption of any employee;
[Explanation: For the purpose of this clause, sales promotion includes, services by way of sale of dutiable goods on commission basis].'
5.1 Clause (C) of the above definition states that services such as those is provided in relation to outdoor catering when such services are used primarily for personal use or consumption of any employee is not eligible for credit. The Tribunal in the case of Hindustan Coca-Cola Beverages (supra) had observed that if such services are provided as per the statutory requirement, they are eligible for credit. The relevant portion is noted as under:-
“7. The appellants contend that canteen/outdoor catering services is provided within the factory premises in compliance to the provisions of the Factories Act, 1948. It is also submitted that such services are not used primarily for personal use or consu

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employee.”
5.2 The Tribunal thus noted that the outdoor catering services are availed primarily as per requirement of appellant in order to engage in manufacture of finished product and is not for personal consumption or personal use of employee. However, the said decision was referred to the Larger Bench and vide decision in the case of Wipro Ltd. (supra), the Larger Bench of Tribunal held that since outdoor catering services are specifically mentioned in the exclusion clause of the definition, credit is not eligible.
5.3 I do note that the Hon'ble High Court of Madras in the case of Ganesan Builders (supra) has analyzed the issue of eligibility of credit when there is a statutory requirement as per the labor laws to provide such facilities / benefits to the employees. The said decision has analyzed the issue of providing insurance service to the employees. The issue whether outdoor catering services are eligible for credit was decided by the Larger Bench wherein it is held that cr

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