Goods and Services Tax

The Odisha Goods and Services Tax (Thirteenth Amendment) Rules, 2018.
34124-FIN-CT1-TAX-0043/2017-S.R.O. No. 434/2018 Dated:- 30-10-2018 Orissa SGST
GST – States
Orissa SGST
Orissa SGST
GOVERNMENT OF ODISHA
FINANCE DEPARTMENT
NOTIFICATION
The 30th October, 2018
S.R.O. No. 434/2018.- In exercise of the powers conferred by section 164 of the Odisha Goods and Services Tax Act, 2017 (7 of 2017), the State Government on the recommendations of the Goods and Service Tax Council, do hereby makes the following rules further to amend the Odisha Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the Odisha Goods and Services Tax (Thirteenth Amendment) Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Odisha Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), after rule 83, the following rule shall be inserted, namely:-
“83A. Examination of Goods and Services

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all be specified by NACIN on the official websites of the Board, NACIN and common portal.
(5) Examination centers.- The examination shall be held across India at the designated centers. The candidate shall be given an option to choose from the list of centers as provided by NACIN at the time of registration.
(6) Period for passing the examination and number of attempts allowed.- (i) A person enrolled as a goods and services tax practitioner in terms of sub-rule (2) of rule 83 is required to pass the examination within two years of enrolment:
Provided that if a person is enrolled as a goods and services tax practitioner before 1st of July 2018, he shall get one more year to pass the examination:
Provided further that for a goods and services tax practitioner to whom the provisions of clause (b) of sub-rule (1) of rule 83 apply, the period to pass the examination will be as specified in the second proviso of sub-rule (3) of said rule.
(ii) A person required to pass the examination m

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ed to secure fifty per cent. of the total marks.
(9) Guidelines for the candidates.- (i) NACIN shall issue examination guidelines covering issues such as procedure of registration, payment of fee, nature of identity documents, provision of admit card, manner of reporting at the examination center, prohibition on possession of certain items in the examination center, procedure of making representation and the manner of its disposal.
(ii) Any person who is or has been found to be indulging in unfair means or practices shall be dealt in accordance with the provisions of sub-rule (10). An illustrative list of use of unfair means or practices by a person is as under: –
(a) obtaining support for his candidature by any means;
(b) impersonating;
(c) submitting fabricated documents;
(d) resorting to any unfair means or practices in connection with the examination or in connection with the result of the examination;
(e) found in possession of any paper, book, note or any other material, t

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lt may represent in writing, clearly specifying the reasons therein to NACIN or the jurisdictional Commissioner as per the procedure established by NACIN on the official websites of the Board, NACIN and common portal.
(13) Where the Board or State Tax Commissioner is of the opinion that it is necessary or expedient to do so, it may, on the recommendations of the Council, relax any of the provisions of this rule with respect to any class or category of persons.
Explanation :- For the purposes of this sub-rule, the expressions –
(a) “jurisdictional Commissioner” means the Commissioner having jurisdiction over the place declared as address in the application for enrolment as the GST Practitioner in FORM GST PCT-1. It shall refer to the Commissioner of Central Tax if the enrolling authority in FORM GST PCT-1 has been selected as Centre, or the Commissioner of State Tax if the enrolling authority in FORM GST PCT- 1 has been selected as State;
(b) NACIN means the National Academy of Cust

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d rules, after rule 142, the following rule shall be inserted, namely:-
“142A. Procedure for recovery of dues under existing laws. – (1) A summary of order issued under any of the existing laws creating demand of tax, interest, penalty, fee or any other dues which becomes recoverable consequent to proceedings launched under the existing law before, on or after the appointed day shall, unless recovered under that law, be recovered under the Act and may be uploaded in FORM GST DRC-07A electronically on the common portal for recovery under the Act and the demand of the order shall be posted in Part II of Electronic Liability Register in FORM GST PMT-01.
(2) Where the demand of an order uploaded under sub-rule (1) is rectified or modified or quashed in any proceedings, including in appeal, review or revision, or the recovery is made under the existing laws, a summary thereof shall be uploaded on the common portal in FORM GST DRC-08A and Part II of Electronic Liability Register in FORM GS

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ellation, please file your tax return due for the tax period in which the effective date of surrender of registration falls or furnish an application to the effect that no taxable supplies have been made during the intervening period (i.e. from the date of registration to the date of application for cancellation of registration).”.
5. In the said rules, for FORM GST PMT-01 relating to “Part II: Other than return related liabilities”, the following form shall be substituted, namely:-
“Form GST PMT -01
[See rule 85(1)]
Electronic Liability Register of Registered Person
(Part-II: Other than return related liabilities)
(To be maintained at the Common Portal)
Reference No.-
GSTIN/Temporary Id –
Date-
Name (Legal) –
Trade name, if any –
Stay status – Stayed/Un-stayed
Period – From To (dd/mm/yyyy)
Act – Central Tax/State Tax/UT Tax/Integrated Tax/CESS /All
(Amount in Rs.)
Sr.No.
Date (dd/mm/yyyy)
Reference No.
Tax Period, if applicable
Ledger used for discharging liabilit

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e Demand ID also if appeal is allowed/ partly allowed. Overall closing balance may still be positive.
5. Refund of pre-deposit can be claimed for a particular demand ID if appeal is allowed even though the overall balance may still be positive subject to the adjustment of the refund against any liability by the proper officer.
6. The closing balance in this part shall not have any effect on filing of return.
7. Reduction in amount of penalty would be automatic if payment is made within the time specified in the Act or the rules.
8. Payment made against the show cause notice or any other payment made voluntarily shall be shown in the register at the time of making payment through credit or cash. Debit and credit entry will be created simultaneously.”.
6. In the said rules, in FORM GST APL-04, after serial number 9, and the Table relating thereto, the following shall be inserted, namely:-
“10. Details of IGST Demand
Place of Supply (Name of State/UT)
Demand
Tax
Interest
Pena

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tayed
__Yes __No
17.
Date of stay order
18.
Period of stay
From – to –
Part B – Demand details
19.
Details of demand created (Amount in Rs. in all Tables)
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
Central Acts
State/ UT Acts
CST Act
20.
Amount of demand paid under existing laws
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
Central Acts
State / UT Acts
CST Act
21. (19-20)
Balance amount of demand proposed to be recovered under GST laws << Auto-populated >>
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
Central Acts
State / UT Acts
CST Act
Signature
Name
Designation
Jurisdiction
To
_______________ (GSTIN/ID)
Name
_______________ (Address)
Copy to –
Note –
1. In case of demands relating to short payment of tax declared in return, acknowledgement / reference number of the return may be mentioned.
2. Only recoverable demands shall be posted for recovery under GST laws. Once, a deman

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name, if any
<< Auto >>
4.
Reference no. vide which demand uploaded in FORM GST DRC-07A
5.
Date of FORM GST DRC-07A vide which demand uploaded
6.
Government Authority who passed the order creating the demand
__State UT __ Centre
<< Auto >>
7.
Old Registration No.
<< Auto, editable >>
8.
Jurisdiction under earlier law
<< Auto, editable >>
9.
Act under which demand has been created
<< Auto, editable >>
10.
Tax period for which demand has been created
<< Auto, editable >>
11.
Order No. (original)
<< Auto, editable >>
12.
Order date (original)
<< Auto, editable >>
13.
Latest order no.
<< Auto, editable >>
14.
Latest order date
<< Auto, editable >>
15.
Date of service of the order
<< Auto, editable >>
16.
Name of the officer who has passed the order (optional)
<< Auto, editable >>
17.
Designation of the officer who has passed the order
<< Auto, editable >>
18.
Whether demand is stayed
__Yes __No
19.
Date of stay order
20.
Period of Stay
21.

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M/s. Sify Technologies Limited Versus Commissioner of GST and Central Excise Chennai South
Service Tax
2018 (11) TMI 179 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 30-10-2018
Appeal No. ST/184/2012 – Final Order No. 42732/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri V. Padmanabhan, Member (Technical)
Shri Raghavan Ramabhadran, Advocate for the Appellant
Shri K. Veerabhadra Reddy, JC (AR) for the Respondent
ORDER
Per Ms. Sulekha C.S.
Brief facts are that the appellants are registered for providing various taxable services under the category of on-line information and database access / retrieval, internet café, franchise services, etc. They are having centralized service tax registration and are a member of Large Taxpayer Unit. They are also rendering exempted services such as software development, e-learning for corporates and companies etc. during the period prior to 16.5.2008, after which date these services became ta

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billed separately to the end-customer and thus were engaged in trading activity also. In respect of taxable output service rendered, service bill is raised separately and service tax is paid only on the service charges billed / realized. They were also availing input tax credit on various services like advertising, air travel agents, business auxiliary service, Chartered Accountants etc. which were common input services used for both taxable services as well as trading activity. The department was of the view that the appellants are not eligible for credit on the common input services used by appellant for trading activity as per Rule 3 of CENVAT Credit Rules, 2004. On intimation, the appellant filed intimation dated 14.10.2010 to exercise option with effect from 14..2008 for reversal of proportionate credit under Rule 6(2)(ii) of CENVAT Credit Rules, 2004 and reversed an amount of Rs. 44,68,272/-relating to the CENVAT credit availed on trading activities in respect of appellant and S

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osed to demand interest and impose penalties. After due process of law, the adjudicating authority confirmed the amount of Rs. 13,90,14,831/- along with interest, ordered appropriation of the already reversed amount and imposed equal penalty under Rule 15(4) of CENVAT Credit Rules, 2004. Aggrieved, the appellant is now before this Tribunal.
2. On behalf of the appellant, ld. counsel Shri Raghavan Ramabhadran appeared and argued the matter. He submitted that with effect from1.4.2011, an explanation was introduced to the definition of exempted services under Rule 2(e) wherein it was clarified that trading is an exempted service. The period involved in the present case is from October 2005 to March 2010. He submitted that in the show cause notice, the department has invoked Rule 3 of CENVAT Credit Rules, 2004 for the purpose of denying the credit availed on trading activity. The appellant had reversed the credit attributable to trading as per Rule 6(3)(ii) of CCR, 2004. In para 10 of the

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butable to trading cannot sustain. Show cause notice is the foundation of the proceedings and when the department has not invoked Rule 6 in the show cause notice, the entire proceeding fail in the light of the decision of the Hon'ble High Court of Madras in Ruchika Global Interlinks (supra). He also places reliance on the judgment of the Hon'ble Supreme Court in the case of Commissioner of Central Excise Vs. Brindavan Beverages P. Ltd. – 2007 (213) ELT 487 (SC) to argue that show cause notice is the foundation of the proceedings.
2.1 The ld. counsel has placed reliance upon the decision of the Tribunal in the case of L.G. Electronics India Pvt. Ltd. Vs. Commissioner of Central Excise – 2017 (3) GSTL 249 (Tri. All.) and submitted that on identical facts, the Tribunal has held that Rule 14 cannot be applied for recovery of credit attributable to trading alone without invoking Rule 6 when the allegation is that credit availed is not eligible under Rule 3 of CCR, 2004. It is also fairly s

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finite knowledge of the fact that the appellant is engaged in providing exempt service in the nature of trading. That as per the decision in Nizam Sugar Factory Vs. Commissioner of Central Excise – 2006 (197) ELT 465 (SC), thus the extended period cannot be invoked.
2.3 With regard to penalty, he submitted that since the recovery of CENVAT credit is under Rule 14 cannot sustain, the imposition of penalty under Rule 15(4) merits to be set aside. In addition, being an interpretational issue, penalty cannot be imposed.
2.4 Without prejudice, the ld. counsel submitted that the appellant, in any case is only liable to reverse the proportionate credit to trading activity as per Rule 6 and the same would be only Rs. 64,08,446/- and the appellant has already reversed Rs. 44,68,272/-.
3. On behalf of Revenue, the ld. AR Shri K. Veerabhadra Reddy supported the findings in the impugned order. He submitted that the appellants were very well aware that trading is not an exempted service. It is n

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llegation is wrong availment of credit which is not eligible as per Rule 3(1) r/w Rule 2(l) of CENVAT Credit Rules, 2004. The argument of the appellant all along has been trading activity being an exempted service, they are liable to reverse only proportionate credit under Rule 6 of CENVAT Credit Rules, 2004. Instead the formula adopted for quantifying the demand is the proportion of value of sale of goods to the total income from sale of all goods and services applied to the total credit availed. The case of L.G. Electronics India Pvt. Ltd. (supra) cannot be applied to the facts of the case since in the said case the demand was set aside for the reason that the show cause notice did not make any allegation as to the ineligibility of CENVAT credit. That in the present show cause notice, it is clearly spelt out that the credit is not eligible under Rule 3(1) and therefore the said case law is distinguishable on facts.
4. Heard both sides.
5. The main contention put forward by the ld.

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trading activity as an exempted service. Corresponding amendments were introduced in Rule 6(3A) as to how to calculate the amount that has to be reversed when trading is an exempted service. In Ruchika Global (supra) the Hon'ble jurisdictional High Court held that trading has to be considered as exempted service even prior to 1.4.2011 and only proportionate credit attributable to trading is to be reversed as per Rule 6 of CENVAT Credit Rules, 2004. Undisputedly, the appellants were availing common input services for both taxable service and trading activities and did not maintain separate accounts. In the reply to the intimation given prior to issuance of show cause notice, they have stated that they reversed an amount of Rs. 44,68,272/- and informed the department that they have reversed the proportionate credit pertaining to common input services used for trading as under Rule 6(3)(ii) treating trading activity as an exempted service. In para 10 of the show cause notice, the departm

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tware Development and e-learning etc. It is also stated that the SBUs such as Finance, Human Resource, Administration and Corporate did not render any service and were used for accounting and support service only which were common to all SBUs. In para 4.19 of the reply the appellant has stated as under:-
“When the input service relates to an output services that is exempt or relating to trading activity, n o credit is taken and the entire amount including service tax thereon is debited to expenditure. Accordingly, no CENVAT credit on service tax paid on input service is taken for those input services which are used in SBUs which provide exempted service or involved in trading activity. The input services that are common are accounted under the SBUs of Finance, Human Resource, Administration or Corporate and the credit accounted under common input services. The finance department consolidates all the transactions and prepared periodical financial statements and reports required for mee

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e notice proposes to deny the credit availed on trading as per Rule 3 of CCR, 2004. Rule 3 does not allow credit to be allowed on trading activity. We have no quarrel that the Hon'ble jurisdictional High Court in the case of Ruchika Global Ltd. (supra) has held that for recovery of proportionate credit availed on trading, the trading activity has to be considered as an exempted service prior to 1.4.2011 also. But the said decision was in a case where Rule 6 was invoked for disallowing the credit availed on common input services used for trading also when separate accounts were not maintained. Here the appellant contends to have maintained separate accounts. But such separate accounts is not as provided by Rule 6 is the finding of Tribunal in the appellant's own case as per Final Order cited supra. It is seen that the separate accounts were maintained by appellant for serving its business purposes and not according to provisions of Rule 6(1), (2) or (3) of CCR, 2004. The Tribunal in the

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rvices' meant those 'taxable services which were exempt from the whole of service tax and included those service on which service tax was not leviable under section 66 of the Act'. Based on this conclusion, the Hon'ble High Court held as under:-
“11. Having regard to the rule position and given the admitted fact that no separate accounts were maintained by the appellant, with regard to the taxable and non-taxable services, clause (c) of sub-rule 3 of Rules 6 of 2004 Rules would apply”.
6.2 It is therefore obvious that the Hon'ble High Court was only addressing the aspect of whether by invoking Rule 6(3) trading would be exempted services even prior to 1.4.2011. However, in the instant case, what is alleged in the show cause notice is that as per Rule 2(l) of the CENVAT Credit Rules, 2004, input service means 'any service used for providing output service'. As trading activity undertaken by the appellant is not taxable service, hence the appellant is not eligible to avail credit on

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exempted service even prior to 1.4.2011 and therefore credit availed on trading is admissible. In Ruchika Global, Rule 6 of CENVAT Credit Rules, 2004 was invoked to demand the proportionate credit availed on trading. In the present case, only Rule 3 and Rule 6 has not been invoked. When credit is not admissible under Rule 3, the appellant cannot content that Rule 6 ought to have invoked and that trading is held by the Hon'ble High Court to be exempted service prior to 1.4.2011. The appellant cannot blow both hot and cold.”
We, therefore, hold that the decision in the case of Ruchika Global Ltd. (supra) will be of no assistance to the appellant.
5.4 As already stated, the show cause notice invokes Rule 3 to disallow the credit for the reason that no credit can be availed on trading as per this provision. Undisputedly, the appellants have availed credit on trading activities. Therefore, the demand raised disallowing the credit on trading in our view is legal and proper. The decision

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M/s Nitin Spinners Ltd. Versus CGST. CC & CE, Jodhpur-I
Central Excise
2018 (11) TMI 156 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 30-10-2018
Appeal No. E/52451/2018-DB – Final Order No. 53220/2018
Central Excise
Mrs. Archana Wadhwa, Member (Judicial) And Mr. Bijay Kumar, Member (Technical)
Shri S.C. Jain, Advocate – for the appellant
Shri S.K. Bansal, D.R. – for the respondent
ORDER
Per Mrs. Archana Wadhwa:
After hearing both the sides, we find that the appellant is a 100% EOU and is authorised to sell their product in the DTA, after seeking the permission of Development Commissioner. The appellant applied to the Development Commissioner for clearance of the goods up to the extent of value of Rs.

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phical mistake, and amended the DTA sale entitlement certificate by replacing the amount of Rs. 240.66 lakhs to Rs. 204.66 lakhs. It is also seen that vide their letter dated 18th Sept. 2002, the Assistant Development Commissioner opined that the excess sale of Rs. 36 lakhs may be treated as advance DTA sale and be adjusted against future DTA sale entitlements. Ld. Advocate informs us that the said excess sale was so adjusted against the future sales made by them. Further, the Assistant Development Commissioner addressed another letter dated 7.2.2006 to the Deputy Commissioner, Central Excise proposing to recover the differential duty amount on excess DTA sale of Rs. 36 lakhs granted to the unit.
3. In the above, proceedings were initiated

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ner allowing the appellant to clear the goods in DTA to the extent of Rs. 240.66 lakhs. The subsequent detection of mistake at the end of the Development Commissioner, on account of an audit objection raised, resulting in amendment of the certificate by him will have no bearing to the goods already cleared in terms of a proper, correct and legitimate certificate issued by the Development Commissioner issued initially. As such, it cannot be said that when the goods were cleared, the appellant was not having any valid certificate and the same were cleared against them against an invalid certificate.
5. Apart from above, we also find that the said excess clearances stand adjusted against the clearances for the future period, in which case no

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The Gujarat Goods and Services Tax (Thirteenth Amendment) Rules, 2018.
60/2018-State Tax Dated:- 30-10-2018 Gujarat SGST
GST – States
Gujarat SGST
Gujarat SGST
NOTIFICATION
FINANCE DEPARTMENT.
Sachivalaya, Gandhinagar.
Dated the 30th October, 2018.
Notification No. 60/2018-State Tax
No. (GHN- 110)/GSTR-2018(34)TH:-In exercise of the powers conferred by section 164 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017), the Government of Gujarat hereby makes the following rules further to amend the Gujarat Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the Gujarat Goods and Services Tax (Thirteenth Amendment) Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Gujarat Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), after rule 83, the following rule shall be inserted, namely:-
“83A. Examination of Goods and Services Tax Practitioners

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ied by NACIN on the official websites of the Board, NACIN and common portal.
(5) Examination centers.-The examination shall be held across India at the designated centers. The candidate shall be given an option to choose from the list of centers as provided by NACIN at the time of registration.
(6) Period for passing the examination and number of attempts allowed.-
(i) A person enrolled as a goods and services tax practitioner in terms of sub-rule (2) of rule 83 is required to pass the examination within two years of enrolment:
Provided that if a person is enrolled as a goods and services tax practitioner before 1st of July 2018, he shall get one more year to pass the examination:
Provided further that for a goods and services tax practitioner to whom the provisions of clause (b) of sub-rule (1) of rule 83 apply, the period to pass the examination will be as specified in the second proviso of sub-rule (3) of said rule.
(ii) A person required to pass the examination may avail

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ecure fifty per cent. of the total marks.
(9) Guidelines for the candidates.-
(i) NACIN shall issue examination guidelines covering issues such as procedure of registration, payment of fee, nature of identity documents, provision of admit card, manner of reporting at the examination center, prohibition on possession of certain items in the examination center, procedure of making representation and the manner of its disposal.
(ii) Any person who is or has been found to be indulging in unfair means or practices shall be dealt in accordance with the provisions of sub-rule (10). An illustrative list of use of unfair means or practices by a person is as under: –
(a) obtaining support for his candidature by any means;
(b) impersonating;
(c) submitting fabricated documents;
(d) resorting to any unfair means or practices in connection with the examination or in connection with the result of the examination;
(e) found in possession of any paper, book, note or any other material,

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d to the applicants by e-mail and/or by post.
(12) Handling representations.-A person not satisfied with his result may represent in writing, clearly specifying the reasons therein to NACIN or the jurisdictional Commissioner as per the procedure established byNACIN on the official websites of the Board, NACIN and common portal.
(13) Power to relax.- Where the Board or State Tax Commissioner is of the opinion that it is necessary or expedient to do so, it may, on the recommendations of the Council, relax any of the provisions of this rule with respect to any class or category of persons.
Explanation :- For the purposes of this sub-rule, the expressions –
(a) “jurisdictional Commissioner” means the Commissioner having jurisdiction over the place declared as address in the application for enrolment as the GST Practitioner in FORM GST PCT-1. It shall refer to the Commissioner of Central Tax if the enrolling authority in FORM GST PCT-1 has been selected as Centre, or the Commissioner o

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ations, Circulars and orders issued from time to time under the said Acts and Rules.”.
3. In the said rules, after rule 142, the following rule shall be inserted, namely:-
“142A. Procedure for recovery of dues under existing laws. –
(1) A summary of order issued under any of the existing laws creating demand of tax, interest, penalty, fee or any other dues which becomes recoverable consequent to proceedings launched under the existing law before, on or after the appointed day shall, unless recovered under that law, be recovered under the Act and may be uploaded in FORM GST DRC-07A electronically on the common portal for recovery under the Act and the demand of the order shall be posted in Part II of Electronic Liability Register in FORM GST PMT-01.
(2) Where the demand of an order uploaded under sub-rule (1) is rectified or modified or quashed in any proceedings, including in appeal, review or revision, or the recovery is made under the existing laws, a summary thereof shall be upl

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ion. This application shall be made only after the new entity is registered.
Before applying for cancellation, please file your tax return due for the tax period in which the effective date of surrender of registration falls or furnish an application to the effect that no taxable supplies have been made during the intervening period (i.e. from the date of registration to the date of application for cancellation of registration).”.
5. In the said rules, in FORM GSTR-4, in the instructions, for Sl. No.10, the following shall be substituted, namely;-
“10. Information against the Serial 4A of Table 4 shall not be furnished.”.
6. In the said rules, for FORM GST PMT-01relating to “Part II: Other than return related liabilities”, the following form shall be substituted, namely:-
“Form GST PMT -01
[See rule 85(1)]
Electronic Liability Register of RegisteredPerson
(Part-II: Other than return related liabilities)
(To be maintained at the Common Portal)
Reference No.-
GSTIN/Temporary I

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y.
2. All payments made out of cash or credit ledger against the liabilities would be recorded accordingly.
3. Reduction or enhancement in the amount payable due to decision of appeal, rectification, revision, review etc. will be reflected here.
4. Negative balance can occur for a single Demand ID also if appeal is allowed/ partly allowed. Overall closing balance may still be positive.
5. Refund of pre-deposit can be claimed for a particular demand ID if appeal is allowed even though the overall balance may still be positive subject to the adjustment of the refund against any liability by the proper officer.
6. The closing balance in this part shall not have any effect on filing of return.
7. Reduction in amount of penalty would be automatic if payment is made within the time specified in the Act or the rules.
8. Payment made against the show cause notice or any other payment made voluntarily shall be shown in the register at the time of making payment through credit or cash. De

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Order No. (original)
10.
Order date (original)
11.
Latest order no.
12.
Latest order date
13.
Date of service of the order (optional)
14.
Name of the officer who has passed the order (Optional)
15.
Designation of the officer who has passed the order
16.
Whether demand is stayed
ð Yes ð No
17.
Date of stay order
18.
Period of stay
From – to –
Part B – Demand details
19.
Details of demand created
(Amount in Rs. in all Tables)
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
Central Acts
State/UT Acts
CST Act
20.
Amount of demand paid under existing laws
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
Central Acts
State/UT Acts
CST Act
21.
(19-20)
Balance amount of demand proposed to be recovered under GST laws << Auto-populated >>
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
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7
Central Acts
State/UT Acts
CST Act
Signature
Name
Designation
Jurisdiction
To
_______________

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be inserted, namely:-
“FORM GST DRC-08A
[See rule 142A(2)]
Amendment/Modification of summary of the order
creating demand under existing laws
Reference no.
Date –
Part A – Basic details
Sr. No.
Description
Particulars
(1)
(2)
(3)
1.
GSTIN
2.
Legal name
<>
3.
Trade name, if any
<>
4.
Reference no. vide which demand uploaded in FORM GST DRC-07A
5.
Date of FORM GST DRC-07A vide which demand uploaded
6.
Government Authority who passed the order creating the demand
State /UT ð Centre <> ð
7.
Old Registration No.
<< Auto, editable>>
8.
Jurisdiction under earlier law
<< Auto, editable>>
9.
Act under which demand has been created
<>
10.
Tax period for which demand has been created
<>
11.
Order No. (original)
<>
12.
Order date (original)
<>
13.
Latest order no.
<>
14.
Latest order date
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15.
Date of service of the orde

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M/s. ARMOUR STEEL BUILDINGS INDIA PVT LTD. Versus THE ASSISTANT STATE TAX OFFICER (INTELLIGENCY OFFICE), THRISSUR AND THE INTELLIGENCE INSPECTOR SQUAD NO. I, STATE GOODS AND SERVICE TAX DEPARTMENT, THRISSUR
GST
2018 (11) TMI 143 – KERALA HIGH COURT – 2019 (20) G. S. T. L. 196 (Ker.)
KERALA HIGH COURT – HC
Dated:- 30-10-2018
WP (C). No. 35214 of 2018
GST
MR DAMA SESHADRI NAIDU, J.
For The Petitioner : SMT. S. K. DEVI  AND SRI. SANTHOSH P. ABRAHAM
For The Respondent : GP DR. THUSHARA JAMES
JUDGMENT
The petitioner, an assessee under the GST Act in Tamil Nadu, sent goods across to the State. The Assistant State Tax Officer intercepted the goods and detained them. After the initial procedural formalities the petit

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. The petitioner-Company is a dealer with its registration in Tamil Nadu. When it wanted to comply with the statutory demand and get the goods released, the respondent authorities insisted that the petitioner should have a temporary registration, remit the amounts using that registration, and get the goods released. The petitioner is disinclined to follow that procedure. In the alternative, the authorities wanted the driver of the vehicle to remit the amounts in his name and have the goods released. For this alternative, the petitioner's counsel cites practical difficulties as an answer.
3. Then, the Government pleader took instructions from the authorities, and informed the Court that the petitioner's representative can approach t

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M/s Diamond Metal Versus State of U.P. And 2 Others
GST
2018 (11) TMI 56 – ALLAHABAD HIGH COURT – 2019 (21) G. S. T. L. 305 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 30-10-2018
Writ Tax No. – 1406 of 2018
GST
Pankaj Mithal And Ashok Kumar JJ.
For the Petitioner : Aditya Pandey
For the Respondent : C.S.C.
ORDER
Heard Sri Aditya Pandey, learned counsel for the petitioner and learned Standing Counsel on behalf of the respondents.
The Aluminium scrap of the petitioner transported from Kanpur to Jaunpur has been intercepted and detained under Section 129(1) of the U.P. GST Act, only for the reason that the vehicle number do not tally with the vehicle number mentioned on the E-way bill. Petitioner is a registered dealer

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Shri Narayan Prasad Gour Versus CGST, CE & ST, Bhopal
Service Tax
2018 (11) TMI 33 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 30-10-2018
Service Tax Appeal No. 52638- 52639 of 2015 – FINAL ORDER No. 53202-53203/2018
Service Tax
Mr. C L Mahar, Member (Technical) And Ms. Rachna Gupta, Member (Judicial)
Ms. Rinki Arora, Advocate for the Appellants
Shri Sanjay Jain, AR for the Respondent
ORDER
Per C L Mahar:
The appellants are engaged in providing taxable services under the category of “Goods Transport Agency Services” to M/s. Western Coal Field Ltd. during the period January 2009 to March 2011. Show Cause Notice dated 05.02.2010, for the period January 2009 to March, 2009, Show Cause Notice dated 27.09.2010 for the period April 2009 to March 2010 and Show Cause Notice dated 04.10.2011 for the period April, 2010 to March 2011 were issued on the ground that the appellants were doing loading, transport and unloading of coal from mining under the cate

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to EDC Siding via bye-pass road including unloading. (Lead 25.60 KMs
35,000 MT each
Rs.95.00 MT
Rs.33,25,000/-
12 (Twelve months)
Clause No. 28.
Escalation if applicable will be payable as per the tender document as the contract period is for 12 (Twelve) months as per clause No. 37.00 of Special Terms and Conditions of Tender document for price variation clause.
Contract No.WCL/Pench/CME (OPR)/89/2009-10 dated 23.3.2010
Description of work
Quantity
Rate
Value
Period
Loading of coal into tippers by Pay Loader and Transportation of coal by Tippers from coal stockyard of Vishnupuri UG Mine No. II to EDC Siding including unloading. (Lead 13.90 KMs)
27,000 MT each
Rs.64.00 MT
Rs.17,28,000/-
12 (Twelve months)
Clause No. 31.
The rates are based on ruling price of diesel as on 1.03.2010 i.e. Rs. 39.87 per litre. Escalation if applicable will be paid as per clause No. 37 of Special Terms and Conditions of Tender document for price variation clause.
3. It can be seen from

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facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows:
(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description;
(b) composite service consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential character, in so far as this criterion is applicable;
(c) when a service cannot be classified in the manner specified in clause (a) or clause (b), it shall be classified under the sub-clause which occurs first among the sub-clauses which equally merit consideration.]
4. It can be seen from a plain reading of 65A (2)(b) that the classification in the case of combined service is to be decided by analyzing the fact as to which service gives essential character to the service being performed. As can

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Seeks to provide taxpayers whose registration has been cancelled on or before the 30th September, 2018 time to furnish final return in FORM GSTR-10 till 31st December, 2018
97/GST-2 Dated:- 30-10-2018 Haryana SGST
GST – States
Haryana SGST
Haryana SGST
HARYANA GOVERNMENT
EXCISE AND TAXATION DEPARTMENT
Notification
The 30th October, 2018
No.97/GST-2.- In exercise of the powers conferred by section 148 of the Haryana Goods and Services Tax Act, 2017 (19 of 2017), read with secti

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Central Goods and Services Tax (Thirteenth Amendment) Rules, 2018
60/2018 Dated:- 30-10-2018 Central GST (CGST)
GST
CGST
CGST
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
Notification No. 60/2018 – Central Tax
New Delhi, the 30th October, 2018
G.S.R. 1075 (E). – In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the Central Goods and Services Tax (Thirteenth Amendment) Rules, 2018.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), after rule 83, the following rule shall be inserted, namely:-
“83A. Examination of Goods and Services Tax Practiti

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ecified by NACIN on the official websites of the Board, NACIN and common portal.
(5) Examination centers.- The examination shall be held across India at the designated centers. The candidate shall be given an option to choose from the list of centers as provided by NACIN at the time of registration.
(6) Period for passing the examination and number of attempts allowed.-
(i) A person enrolled as a goods and services tax practitioner in terms of sub-rule (2) of rule 83 is required to pass the examination within two years of enrolment:
Provided that if a person is enrolled as a goods and services tax practitioner before 1st of July 2018, he shall get one more year to pass the examination:
Provided further that for a goods and services tax practitioner to whom the provisions of clause (b) of sub-rule (1) of rule 83 apply, the period to pass the examination will be as specified in the second proviso of sub-rule (3) of said rule.
(ii) A person required to pass the examination may avail

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cure fifty per cent. of the total marks.
(9) Guidelines for the candidates.- (i) NACIN shall issue examination guidelines covering issues such as procedure of registration, payment of fee, nature of identity documents, provision of admit card, manner of reporting at the examination center, prohibition on possession of certain items in the examination center, procedure of making representation and the manner of its disposal.
(ii) Any person who is or has been found to be indulging in unfair means or practices shall be dealt in accordance with the provisions of sub-rule (10). An illustrative list of use of unfair means or practices by a person is as under: –
(a) obtaining support for his candidature by any means;
(b) impersonating;
(c) submitting fabricated documents;
(d) resorting to any unfair means or practices in connection with the examination or in connection with the result of the examination;
(e) found in possession of any paper, book, note or any other material, the

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to the applicants by e-mail and/or by post.
(12) Handling representations.- A person not satisfied with his result may represent in writing, clearly specifying the reasons therein to NACIN or the jurisdictional Commissioner as per the procedure established by NACIN on the official websites of the Board, NACIN and common portal.
(13) Power to relax.- Where the Board or State Tax Commissioner is of the opinion that it is necessary or expedient to do so, it may, on the recommendations of the Council, relax any of the provisions of this rule with respect to any class or category of persons.
Explanation :- For the purposes of this sub-rule, the expressions –
(a) “jurisdictional Commissioner” means the Commissioner having jurisdiction over the place declared as address in the application for enrolment as the GST Practitioner in FORM GST PCT-1. It shall refer to the Commissioner of Central Tax if the enrolling authority in FORM GST PCT-1 has been selected as Centre, or the Commissioner of

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Rules.”.
3. In the said rules, in rule 109A,
(a) in sub-rule (1), in clause (b), for the words and brackets “the Additional Commissioner (Appeals)”, the following words and brackets shall be substituted, namely:-
“any officer not below the rank of Joint Commissioner (Appeals)”;
(b) in sub-rule (2), in clause (b), for the words and brackets “the Additional Commissioner (Appeals)”, the following words and brackets shall be substituted, namely:-
“any officer not below the rank of Joint Commissioner (Appeals)”.
4. In the said rules, after rule 142, the following rule shall be inserted, namely:-
“142A. Procedure for recovery of dues under existing laws. – (1) A summary of order issued under any of the existing laws creating demand of tax, interest, penalty, fee or any other dues which becomes recoverable consequent to proceedings launched under the existing law before, on or after the appointed day shall, unless recovered under that law, be recovered under the Act and may be upload

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death of sole proprietor” and ending with the words “surrender of registration falls”, the following paragraphs shall be substituted, namely:-
“In case of death of sole proprietor, application shall be made by the legal heir / successor before the concerned tax authorities. The new entity in which the applicant proposes to amalgamate itself shall register with the tax authority before submission of the application for cancellation. This application shall be made only after the new entity is registered.
Before applying for cancellation, please file your tax return due for the tax period in which the effective date of surrender of registration falls or 1[furnish an undertaking to the effect] that no taxable supplies have been made during the intervening period (i.e. from the date of registration to the date of application for cancellation of registration).”.
6. In the said rules, in FORM GSTR-4, in the Instructions, for Sl. No. 10, the following shall be substituted, namely:-
“10.

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ntral Tax/State Tax/UT Tax/Integrated Tax/ CESS/ amount under existing law/Total)
Tax
Interest
Penalty
Fee
Others
Total
Status (Stayed / Un-stayed)
15
16
17
18
19
20
21
*[Debit (DR) (Payable)] / [Credit (CR) (Paid)] / Reduction (RD)/ Refund adjusted (RF)]
Note –
1. All liabilities accruing, other than return related liabilities, will be recorded in this ledger. Complete description of the transaction shall be recorded accordingly.
2. All payments made out of cash or credit ledger against the liabilities would be recorded accordingly.
3. Reduction or enhancement in the amount payable due to decision of appeal, rectification, revision, review etc. will be reflected here.
4. Negative balance can occur for a single Demand ID also if appeal is allowed/ partly allowed. Overall closing balance may still be positive.
5. Refund of pre-deposit can be claimed for a particular demand ID if appeal is allowed even though the overall balance may still be positive subject to the

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ws
Reference No.
Date –
Part A – Basic details
Sr. No.
Description
Particulars
(1)
(2)
(3)
1.
GSTIN
2.
Legal name
<< Auto >>
3.
Trade name, if any
<< Auto >>
4.
Government Authority who passed the order creating the demand
__ State /UT
__ Centre
5.
Old Registration No.
6.
Jurisdiction under earlier law
7.
Act under which demand has been created
8.
Period for which demand has been created
From – mm, yy To mm, yy
9.
Order No. (original)
10.
Order date (original)
11.
Latest order no.
12.
Latest order date
13.
Date of service of the order (optional)
14.
Name of the officer who has passed the order (Optional)
15.
Designation of the officer who has passed the order
16.
Whether demand is stayed
__Yes __No
17.
Date of stay order
18.
Period of stay
From – to –
Part B – Demand details
19.
Details of demand created
(Amount in Rs. in all Tables)
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
Central Acts
State/ UT Act

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ent heads of the liabilities under existing laws should be synchronized with the heads defined under Central or State tax.
4. Latest order number means the last order passed by the relevant authority for the particular demand.
5. Copy of the order vide which demand has been created can be attached. Documents in support of tax payment can also be uploaded, if available.”.
10. In the said rules, after FORM GST DRC-08, the following form shall be inserted, namely:-
“FORM GST DRC-08A
[See rule 142A(2)]
Amendment/Modification of summary of the order creating demand under
existing laws
Reference no.
Date –
Part A – Basic details
Sr. No.
Description
Particulars
(1)
(2)
(3)
1.
GSTIN
2.
Legal name
<< Auto >>
3.
Trade name, if any
<< Auto >>
4.
Reference no. vide which demand uploaded in FORM GST DRC-07A
5.
Date of FORM GST DRC-07A vide which demand uploaded
6.
Government Authority who passed the order creating the demand
__State UT __ Centre
<< Auto >>
7.
Old R

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tral Acts
State / UT Acts
CST Act
23.
Updation of demand
Act
Type of updation
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
8
1.
Quashing of demand (Complete closure of demand)
2.
Amount of reduction, if any
3.
Total reduction (1+2)
24.
(22-23)
Balance amount of demand required to be recovered under the Act
<< Auto-populated >>
Act
Tax
Interest
Penalty
Fee
Others
Total
1
2
3
4
5
6
7
Central Acts
State / UT Acts
CST Act
Signature
Name
Designation
Jurisdiction
To
_______________ (GSTIN/ID)
Name
_______________ (Address )
Copy to –
Note –
1. Reduction includes payment made under existing laws. If the demand of tax is to be increased then a fresh demand may be created under FORM GST DRC-07A.
2. Copy of the order vide which demand has been modified /rectified / revised/ updated can be uploaded. Payment document can also be attached.
3. Amount recovered under the Act including adjustment made of refund claim will be automatic

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GST Council Achievements: 918 Decisions Made, 96% Implemented via 294 Notifications Over 30 Meetings.
News
GST
Goods and Services Tax Council – Journey so far – GST Council met 30 times, to

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Amendment of GSTN in Credit note & Debit note
Query (Issue) Started By: – Bibhuti Dash Dated:- 29-10-2018 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
Got 7 Replies
GST
Dear Experts,
Please guide me on how to do amendment in credit notes for wrong GST no. Currently we can amend Credit notes, but the amending GSTN in credit notes is freezed.
Thanks in advance !
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
You may contact the portal for remedy.
Reply By KASTURI SETHI:
The Reply:
Grievances Redressal Cell/ Help Desk may unfreeze to resolve your problem. In one of my client's case GSTR 3 B return (Filed) was opened by the system and I refiled the return but in this case there was snag in common portal syste

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GST rate on marble statues
Query (Issue) Started By: – rajeshh rawat Dated:- 29-10-2018 Last Reply Date:- 20-6-2019 Goods and Services Tax – GST
Got 6 Replies
GST
kindly confirm GST rate on marble statues with natification
Reply By KASTURI SETHI:
The Reply:
In my view, marble statuette is covered under Chapter/Heading/Sub-heading 2515 20 90 attracting GST 5% (CGST 2.5% and SG​​​​​​IST 2.5%.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Kasthuri sir correctly told.
Reply By Alkesh Jani:
The Reply:
Dear Experts,
Can we classify the marble statues under 44,68, 83 Sl.No. 92A of Notification No.1/2017 with corresponding rate of 6% Plus 6% (CGST Plus SGST)?
Thanks in Advance.
Reply By KAS

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umn No. 2 of Chapter heading 2515 12 states that “Merely cut, by sawing or otherwise, into blocks or slabs of rectangular (including square) shape”. Therefore, statue cannot fall within the ambit of blocks or slabs.
Moreover, statuettes is mentioned at Chapter 44, 68 or 83. Now, as Ch. 44 stands for woods, hence not applicable in the instant case, Sl.No.177E clearly states “other than statues” for Chapter 6802 and Chapter 8306 is with regards to base metals, hence not applicable in the instant case.
For GST purpose, based on the above, I am of the view that the marble statues can be classified at Sl.No. 453 “Any Chapter” Goods which are not specified in Schedule I, II, IV, V or VI and hence attracts 18% GST.
Here, it is pertinent to note

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Goods and Services Tax Council – Journey so far;
GST
Dated:- 29-10-2018

Goods and Services Tax Council – Journey so far;
GST Council met 30 times, took 918 decisions since its Constitution;
96% of decisions already been implemented through 294 Notifications
Till date, the Goods and Services Tax (GST) Council has taken 918 decisions related to GST laws, rules, rates, compensation and taxation threshold etc. More than 96% of the decisions have already been implemented through 294 Notifications issued by the Central Government and the remaining are under various stages of implementation. Almost equal number of corresponding SGST Notifications have been issued by each State.
The GST Council Members under the Chairpersonship

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Provisional Attachments Suspended in Bogus Billing Case; Conditions Must Be Met for Release of Assets and Accounts.
Case-Laws
GST
Large scale of bogus billing activities – Validity of provisional orders of attachment – By freezing the petitioner's bank accounts and attaching the properties, the petitioner is temporarily rendered penalized – Provisional attachments suspended subject to fulfillment of certain conditions
TMI Updates – Highlights, quick notes, marquee, annotation, news,

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GSTR 1 amendment
Query (Issue) Started By: – Puttaraj T Dated:- 29-10-2018 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
Got 4 Replies
GST
We have filed November-2017 GSTR1 return but clerical error the B2B invoice we have shown in the B2C, now we want to change it for B2B.
GSTR1 for the month of September-2018 is filed, when I try to add B2C amendment in October-2018 it's not showing FY.2017-18.
Kindly suggest me to make amendment
Reply By SHIVKUMAR SHARMA:
The Reply

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IGST Export Refunds – extension in SB005 alternate mechanism and revised processing in certain cases including disbursal of compensation Cess
PUBLIC NOTICE N0. 137/2018/ 30.10.2018 Dated:- 29-10-2018 Trade Notice
Customs
OFFICE OF COMMISSIONER OF CUSTOMS (Export)
NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI-400 001
Email : Drawback.nch@gov.in
F. No. S/26.Misc-12/2018-19 IGST Refund
Date: 29.10.2018
PUBLIC NOTICE N0. 137/2018/ 30.10.2018
Sub: reg.
Attention of the trade is invited to Board's Circular No. 40/2018-Customs issued vide F. No. 450/119/2017-cus IV dated 24th October 2018.
1. Exporters are availing the refunds of IGST paid on exports regularly for more than a year now. It has been observed that exporters have committed many errors which have hampered sanctioning of IGST refund. CBIC has introduced several options and alternative mechanisms through which various mismatch errors between the Shipping Bill (SB) and GSTR 1 data can be handled in the system.
2. CB

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d that the exporters shall have to take care to ensure the details of invoice, such as invoice number, IGST paid etc. under GSTR 1 and shipping bill match with each other since the same transaction is being reported under GST laws and Customs Act.
3. It may be noted that SBS which have not been scrolled due to the IGST paid amount erroneously declared as 'NA' are already being handled through officer interface as per Board's Circular 08/2018 – Customs dated 23.03.2018. However, no such provision was hitherto available in respect of those SBS which were successfully scrolled, albeit with a lesser than eligible amount.
4. CBIC has been receiving representations where the refund scroll has been generated for a much lesser IGST amount than what has actually been paid against the exported goods. Broadly, this has happened due to:
a. Error made by the exporter/CHA in declaring the IGST paid amount in SB or,
b, cases where compensation cess paid amount was not entered by th

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unt, the exporter is required to submit a duly filled and signed Revised Refund Request (RRR) annexed to this circular to the designated AC/DC. A scanned COPY Of the P.P.R may also be mailed to dedicated email address of Customs locations from where exports, took place, The designated/concerned AC/DC will then proceed to sanction the amount after due verification through the option provided in ICES, a detailed advisory on which Will be communicated by DG Systems to all the System Managers shortly. Once the revised amount is approved by the designated AC/DC in the system, a fresh scroll will be available for generation for the differential amount only.
7. It may be noted that only those SBS which have already been scrolled shall be available in this facility, Further, this facility can be used only once for each eligible SB to sanction the revised IGST amount, Thus, utmost care may be taken by the exporter while submitting the RRR as no further provision will be available for revising

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COROMANDEL AGRICO PVT LTD THROUGH ALPANA YAGNESH BAKTARWALA Versus COMMERCIAL TAX OFFICER
GST
2018 (12) TMI 1578 – GUJARAT HIGH COURT – [2019] 63 G S.T.R. 1 (Guj), 2019 (26) G. S. T. L. 460 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 29-10-2018
R/Special Civil Application No. 16731 of 2018
GST
Mr. Justice Akil Kureshi And Mr. Justice Umesh Trivedi
For the Petitioner : Mr D K Trivedi
For the Respondent : Advance Copy Served to Government Pleader/PP, DS AFF.Not Filed (N), Notice Not Recd Back
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
1. Draft amendment is allowed.
2. The petitioner has challenged an order of attachment dated 09.10.2018 passed by the respondent authorities attaching the petitioner's plant, machinery and present stock situated at the said plant. The petitioner is in the business of manufacturing agrochemicals.
3. The facts admitted by the petitioner are that the petitioner could not discharge its GST liabilities for the past several mont

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perate its factory since the date of passing of the order. The petitioner would not be able to pay its creditors and the workers their dues. The petitioner offered to clear all the taxes in installments.
6. Learned AGP Shri Trivedi opposed the petition contending that the petitioner has not paid the selfassessed tax. Such tax has been collected from the purchasers. The petitioner cannot press financial hardship in depositing such tax with the Government revenue. The authorities have rightly exercised powers under Section 83 of the Act to protect the interest of Government revenue.
7. In the facts of the case, we would like to find a way out of the impasse so that the petitioner can restart its manufacturing activities and start repaying the Government dues. In this context, few things become relevant. Firstly, according to the petitioner, the outstanding dues are in the vicinity of Rs. 64.00 Lacs. This does not account for possible interest or penalty or late payment charges. The pet

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a further sum of Rs. 5.00 Lacs latest by 12.11.2018.
(II) The remaining amount, as per the petitioner's declaration, would be cleared in
Three Equal Monthly installments. The first one of them starting from the month of December 2018. Each installment shall have to be deposited by the Fifth of the month.
(III) The Director of the petitioner Company would file an Undertaking before this Court latest by 02.11.2018 that all these conditions would be fulfilled.
9. The attachment on the petitioner's stock, under the impugned order dated 09.10.2018, shall stand suspended. In other words, while maintaining the attachment on the plant and machinery, we permit the petitioner to carry out its manufacturing activities and clear the manufactured goods. Upon breach of any of the above condition nos.(I), (II) or (III), including failure to deposit any of the installments, such restrictions shall stand restored.
10. The petitioner shall cooperate with the proceedings for assessment or any oth

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Commissioner of GST & CE Chennai South Versus Redington (India) Ltd.
Service Tax
2018 (11) TMI 1468 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 29-10-2018
Application No. ST/MISC/40793/2017 Appeal No. ST/330/2012 – FINAL ORDER No. 42883/2018
Service Tax
Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri S. Govindarajan, AC (AR) For the Appellant
Shri C. Manickam, Sh. Ajay Kumar Gupta, Advocate & Shri D. Senthil Nathan, Consultant For the Respondent
ORDER
Per Bench
Brief facts are that the respondents, M/s. Redington (India) Ltd are engaged in the business of distributing computer hardware and software of various manufacturers such as M/s. Hewlett Packard, IBM, Microsoft, etc. They are also engaged in maintenance and repair for these products during the warranty period as well as post warranty period. On intelligence that the respondents are not paying service tax on services rendered to M/s. Hewlett Packa

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as inventory reports on weekly basis to HP.
2. From the foregoing it appeared that respondents as distributors were receiving 1% volume discount on the total turnover made, in respect of HP Products and that this was not a trade or sales discount but a commission for providing HP with strategic market information to enable them to maximize the sales of HP products wherever required. The department was of the view, that respondent were providing Business Auxiliary Service to M/s. HP. Therefore a Show Cause Notice was issued proposing to demand the service tax alongwith interest and for imposing penalties. After due process of law, the original authority dropped the proceedings holding that 1% discount is not consideration received for rendering services and hence not taxable. Aggrieved, the department is now before the Tribunal.
3. The Ld.AR, Sh.S.Govindarajan reiterated the grounds of appeal. He submitted that the findings of the adjudicating authority that respondents are not rende

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ing or sale of goods produced or provided by or belonging to the client would fall under the category of Business Auxiliary Service. Therefore when the respondents are furnishing strategic inventory reports on weekly basis, in a format specified by HP, the same is service incidental or auxiliary or promotion or marketing or sale of goods produced by HP and the 1% discount received by the respondents from HP is chargeable to service tax under Business Auxiliary Service. It is submitted that in a similar case involving M/s.HP and the respondent pertaining to the 1% discount offered to the dealer / distributor as in the present case, the CESTAT, Bangalore [2003(162) ELT 399(T)] considered the issue of includibility of the said 1% additional discount paid to the assesse as a distributor / dealer in the assessable value of the excisable goods manufactured by M/s.HP. In the said case, the Hon'ble Tribunal held that the reports sent by the dealers, are in the nature of market intelligence, wh

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he basis of reports and inventory reports submitted to M/s.HP. The adjudicating authority has rightly dropped the proceedings finding that the respondent was neither commission agent nor was rendering any Business Auxiliary Service. The relationship between the respondent and M/s.HP is that of manufacture and buyer and merely because an inventory report is furnished to the manufacturer in regard to the sale of goods, it cannot be said that the appellant has rendered any services to M/s.HP. The decision of the Tribunal, Bangalore rendered in 2003 (162) E.L.T.399 (Tri.-Bang) relied in the grounds of appeal by the department, has held that the 1% discount does not fall in category of permissible discount to be excluded from the assessable value of goods manufactured by HP in terms of Section 4 of Central Excise Act, 1944. For this very same reason, the said discount, if any, has to be included in the assessable value by the manufacturer namely M/s.HP Ltd. Thus the discount is subject to p

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t, 1994 ―Business Auxiliary Service‖ means any service in relation to –
(i) promotion or marketing or sale of goods produced or provided by or belonging to the client; or
(ii) promotion or marketing of service provided by the client; or
(iii) any customer care service provided on behalf of the client; or
(iv) … … … … … … … … …
(v) … … … … … … … … …
(vi) provision of service on behalf of the client; or
(vii) a service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relation services, management or supervision, and includes services as a commission agent, but does not include any activity that amounts to manufacture of excisable goods.
Explanation.- For the removal of doubts, it is hereby declared

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s value, then such value shall, –
(i) in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him;
(ii) in a case where the provision of service is for a consideration not wholly or partly consisting of money, be such amount in money as, with the addition of service tax charged, is equivalent to the consideration;
(iii) in a case where the provision of service is for a consideration which is not ascertainable, be the amount as may be determined in the prescribed manner.
(2) Where the gross amount charged by a service provider, for the service provided or to be provided is inclusive of service tax payable, the value of such taxable service shall be such amount as, with the addition of tax payable, is equal to the gross amount charged.
(3) The gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or a

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ed or produced, under the provisions of the Central Excise Act, 1944, as amended. For the purpose of working out the duty of excise chargeable on any excisable goods, as per Section 4 of the Central Excise Act, inter alia, such value shall –
(a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value;
(b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed.
6.5 For the removal of doubts, Explanation to Section 4 (1) declares that that the price-cum duty of the excisable goods sold by the assessee shall be the price actually paid to him for the goods sold and the money value of the additional consideration, if any, following directly or indirectly from the buyer to the assessee in connection with the sale of such goods, and such p

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Excise duty is brought about in Central Excise Valuation Rules, 2000. So also, Service Tax (Determination of Value) Rules, 2006 have been introduced vide Notification No.12/2006-ST dt. 19.4.2006.
6.8 The important takeaway from these discussions on the differing nature of assessable value, one for the purpose of levy of Central Excise duty and the other for levy of service tax, is that they are two different and distinct entities. This indeed has to be so, since the purpose of levy of central excise duty is to levy tax on production or manufacture of excisable goods in India whereas service tax is a levy on service, which by its very intrinsic nature cannot then be an activity amounting to “manufacture” and subject to Central Excise levy.
6.9 The basic nature of service tax was dealt with by the Hon'ble Apex Court in the case of All India Federation of Tax Practitioners Vs UOI – 2007 (7) STR 625 (S.C.) wherein it was inter alia held as under :
“8. As stated above, service tax is VA

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s and consumption of services are similar as they both satisfy human needs. Today with the technological advancement there is a very thin line which divides a “sale” from “service”. That, applying the principle of equivalence, there is no difference between production or manufacture of saleable goods and production of marketable/saleable services in the form of an activity undertaken by the service provider for consideration, which correspondingly stands consumed by the service receiver. It is this principle of equivalence which is inbuilt into the concept of service tax under the Finance Act, 1994. That service tax is, therefore, a tax on an activity. That, service tax is a value added tax. The value addition is on account of the activity which provides value addition, for example, an activity undertaken by a chartered accountant or a broker is an activity undertaken by him based on his performance and skill. This is from the point of view of the professional. However, from the point

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dered to be a service and subjected to service tax. In fact, the process amounting to “manufacture” is kept specifically out of the scope of Section 65 (19) of Finance Act, 1994 which prescribes service tax liability on processing of goods not amounting to manufacture.
6.11 It has been consistently laid down by the Tribunal, in a plethora of decisions, that consideration which is subject to payment of excise duty is not liable for payment of service tax liability. Some of such decisions, correctly cited by the Ld. Advocate for respondents, are as under :
1) Allengers Medical Systems Ltd. Vs CCE Chandigarh 2009 (14) STR 235 (Tri.-Del.)
2) Alidhara Texspin Engineers Vs CCE & Customs, Vapi 2010 (20) STR 315 (Tri.-Ahmd.)
3) Sharma and Associates Firetech Pvt. Ltd. Vs CCE Indore 2017 (51) STR 289 (Tri.-Del.)
4) Vidarbha Grindeers (P) Ltd. Vs CCE Nagpur 2015 (40) STR 331 (Tri.-Mumbai)
In Jubiliant Industries Vs CCE Ghaziabad – 2013 (31) STR 181 (Tri.-Del.), the Tribunal categorically h

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the Hon'ble Apex Court on 06.02.2004 [2004 (167) ELT A137 (SC)]. The department should have taken precautionary measures to issue periodical SCNs on the very same issue from time to time pending final decision in the matter. This being the case, we are unable to fathom the how and why of the department having taken a stand contrary to that settled by the Hon'ble Apex Court on 06.02.2004 and deemed it proper to issue a SCN taking an antipodal and opposite proposition. Unless the said judgment of the Supreme Court has been further reviewed, or for that matter, the ratio laid down had been overturned by the Hon'ble Apex Court itself, which is certainly not the case here, there is no justification for the department to have initiated the impugned proceedings. In our view, seeking to tax a particular commission amount under excise duty on the one hand, and in respect of the identical transaction, demanding service tax liability on the very same amount, is nothing but an exercise in incredul

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take support of the decision of Hon'ble CESTAT in the case of M/s.Pratap Singh & Sons Vs Commissioner of Central Excise, Mumbai-I, as reported in 2007 (5) STR 389 (Tri-Mumbai), wherein it was held as follows :
5. The appellant have purchased and sold from the principals as their distributor. On purchase of the goods, the ownership changes to the appellant and as owner, dealer or transferee of the goods, it was in his own interest to promote the sales activities and to make advertisement and keep the trained salesman and hence, they are part of the dealers job. This cannot be treated as service rendered to the principals namely the manufacturers. If there was any special relationship or additional consideration leading to charging of lower price to the appellant, at the most, it can become an issue relating to valuation of the goods. The discount given by the manufacturer cannot be taken as service charges. The decision of the Commissioner (Appeals) in treating the appellant as provid

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Orient Poles Versus Commissioner of GST & Central Excise, Chennai South (Vice-Versa)
Service Tax
2018 (11) TMI 1467 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 29-10-2018
ST/397/2011, ST/41867/2013 to ST/41870/2013 and ST/CO/42245 to 42248/2014, ST/42124/2013 to ST/42127/2013 and ST/Misc. /4110, 41152 – 41155, 40809/2017 – Final Order Nos. 42770-42778/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri J. Shankar Raman, Advocate for Assessee
Shri A. Cletus, Addl. Commissioner (AR) for Revenue
ORDER
Per Bench
The issue involved in all these appeals being the same, they were heard together and are disposed by this common order. The parties herein are referred to as assessee and department for the sake of convenience.
2. The assessees are engaged in execution of contracts for erection, installation of electrical poles for street lights etc. for Government and other local bodies namely Municip

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dt. 28.4.2009
7/200 to 9/2008
Rs.50,25,591 of Service Tax under ECIS
Under section 76 & 78
ST/41867 to 41870/2013
OIA No. 191 & 192/2013 dated 12.6.2013 passed by Commissioner of Central Excise(A), Chennai On appeal against OIO No. 81 &82/2011 dated 2.9.2011
SCN No. 339/2010 dated 14.5.2010 & SCN No. 166/2011 dt. 8.4.2011
Oct. 08 to March 2009 And
April 09 to March 2010
Rs.32,45,393/-
Rs.45,33,390/- Demand is under ECIS
Under section 76 & 78
Department appeals ST/42124 – 42127/2013Against confirmation of demand under WCS
OIO No.. 187 & 188/2012 dt. 30.10.2012
SCN No. 290/2011 dt. 25.8.2011 andSCN No. 88/2012 dt. 4.4.2012
April 2010 to March 2011
Apr. 11 to Sep. 11
Rs.27,79,551/-
Rs.33,02,028/-
 
3. On behalf of the assessee, ld. counsel Shri J. Shankar Raman submitted that in Appeal No. ST/397/2011, the period involved is from July 2007 to September 2008 and the demand made in the show cause notice is under erection, commissioning and installation services. As

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ave been under ECIS and not under works contract service. He relied upon the decision of the Tribunal in the case of Real Value Promoters Ltd. (supra) and argued that the entire contracts are composite in nature involving both supply of materials and rendering of service. The Tribunal in the said case has held that after 1.6.2007, the demand of service tax on such composite contracts can be leviable only under works contract service. Therefore, the demands cannot sustain.
4. The ld. AR Shri A. Cletus supported the grounds in the appeals filed by the department.
5. After hearing both sides, it is brought to light that the period involved in the present case is July 2007 to September 2011. The demand has been raised in the show cause notice under ECIS. The contract entered between the appellant and the service recipient is a composite contract which involves both supply of materials as well as rendering of service. The Tribunal in the case of Real Value Promoters Ltd. (supra) had occas

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ommercial or industrial construction service, construction of complex service and in addition turnkey projects including EPC projects within the definition of Works Contract Service.
7.9 At this juncture, it is worthwhile to reproduce excerpts from the Union Finance Minister's budget speech in 2007:-
“State Governments levy a tax on the transfer of property in goods involved in the execution of a works contract. The value of services in a works contract should attract service tax. Hence, I propose to an optional composition scheme under which service tax will be levied at only 2 per cent of the total value of the words contract”.
7.10 The issue was analyzed by the Hon'ble Apex Court in Larsen & Toubro case (supra) and held that there can be no levy of service tax on composite contracts (involving both service and supply of goods) prior to 1.6.2007. This read together with the budget speech as above would lead to the strong conclusion that composite contracts were brought within the

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pecialibus non derogant' – 'general things do not derogate special things'. The counsel for appellants have submitted that as per Section 65A of the Act ibid, classification of service shall be based on the specific entries and the more specific description of service has to be preferred. He invited our attention to CBEC‟s Circular 128/10/2010 dated 24.8.2010 which is reproduced as under:-
“The matter has been examined. As regards the classification, with effect from 1-6-2007 when the new service 'Works Contract service' was made effective, classification of aforesaid services would undergo a change in case of long term contracts even though part of the service was classified under the respective taxable service prior to 1-6-2007. This is because 'works contract' describes the nature of the activity more specifically and, therefore, as per the provisions of Section 65A of the Finance Act, 1994, it would be the appropriate classification for the part of the service provided after

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1994. The SCN did mention this in the first para itself. However, the proposal for tax demand was specifically made under Commercial or Industrial Construction Service under Section 65 (105) (zzq) of the Finance Act, 1994. In such situation, we note that it cannot be a case of simple mentioning of wrong provisions of law as submitted by the Revenue. Apparently, the tax liability of composite works contract is to be considered under works contract services only as per legal position settled by the Hon'ble Apex Court in M/s L&T Limited. Even in the appeal, the Revenue submitted that the respondent were engaged in construction services liable to tax under tax entry Section65(105) (xxq). The grievance of the Revenue is with reference to commercial nature of the construction undertaken by the respondent and not on the correct classification of taxable activity.”
b. In the case of Skyway Infra Projects Pvt. Ltd. Vs. Commissioner of Service Tax, Mumbai – 2018-TIOL-360-CESTAT-MUM, in res

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ties are accepting the facts that the contracts executed by the appellant are nothing but works contracts, for the period in question, entire case of the Revenue in the show-cause notice stands demolished by the Apex Court in the case of Larsen & Toubro Ltd. (supra). In the said judgment, their Lordships have very categorically laid down the law that the works contract cannot be vivisected for the confirmation of demand under various other services. On this ground itself, the entire demand confirmed by the adjudicating authority is liable to be set aside and we do so.”
c. In the case of URC Construction (P) Ltd. Vs. Commissioner of Central Excise, Salem – 2017 (50) STR 147, the Tribunal in paragraphs 9, 10 and 11 has held as under:-
“9. The Hon'ble Supreme Court in re Larsen & Toubro & Ors. has decided thus
'24. A close look at the Finance Act, 1994 would show that the five taxable services referred to in the charging Section 65(105) would refer only to service contracts simpliciter

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of the works contract the value of properly in goods transferred in the execution of a works contract.'
10. In view of this specific decision and the admitted claim of the appellant that they are not providers of 'commercial or industrial construction service' but of 'works contract service', no tax is liable on construction contracts executed prior to 1st June, 2007.
11. Insofar as demand for subsequent period till 30th September, 2008 is concerned, it is seen that neither of the two show cause notices adduce to leviability of tax for rendering 'works contract service'. On the contrary, the submission of the appellant that they had been providing 'works contract service' had been rejected by the adjudicating authority. Therefore, even as the services rendered by them are taxable for the period from 1st June, 2007 to 30th September, 2008 the narrow confines of the show cause notices do not permit confirmation of demand of tax on any service other than 'commercial or industrial constr

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ories and not under Works Contract service. The demand confirmed in the impugned order under these categories namely under construction service for the period 10.09.2004 to 16.06.2005 under CICS for the period 16.06.2005 to 30.09.2008 cannot also sustain and are therefore set aside. So ordered
5.3 For the period 01.04.2008 to 30.09.2008, the demand confirmed is Rs. 26,88,611/-. We note that the appellant has not contested the liability under works contract for this period. The only argument brought forth by the Ld. Counsel is that they have discharged an amount of around Rs. 82 lakhs under this category after the visit of the departmental officers and therefore an amount of Rs. 36,88,611/- demanded in the impugned order should be considered as having been discharged. We find merit in his argument and hence the demand of Rs. 26,88,611/- under works contract service for the period 01.04.2008 to 30.09.2008 is required to be considered as having been paid, albeit subsequent to the visit o

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impliciter.
c. For activities of construction of new building or civil structure or new residential complex etc. involving indivisible composite contract, such services will require to be exigible to service tax liabilities under 'Works Contract Service' as defined under section 65(105)(zzzza) ibid.
d. The show cause notices in all these cases prior to 1.6.2007 and subsequent to that date for the periods in dispute, proposing service tax liability on the impugned services involving composite works contract, under 'Commercial or Industrial Construction Service' or 'Construction of Complex' Service, cannot therefore sustain. In respect of any contract which is a composite contract, service tax cannot be demanded under CICS / CCS for the periods also after 1.6.2007 for the periods in dispute in these appeals. For this very reason, the proceedings in all these appeals cannot sustain.”
5. Following the above decision, we are of the considered opinion that the demand of service tax under

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In Re: M/s. Naga Limited
GST
2018 (11) TMI 1350 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (19) G. S. T. L. 342 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 29-10-2018
ORDER No. 18/AAR/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND SHRI. S. VIJAYAKUMAR, M.SC., MEMBER
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same prov

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g out Milling operations in their factory premises and manufacture of food products. While clearing the imported wheat from the sea ports, the Applicant is engaging various service providers for providing services such as loading, unloading, packing, storage or warehousing of agricultural products imported for clearing from the sea ports and to bring to their factory premises. Service Providers of the above said services at certain Ports by availing the exemption as per Sl.No. 54(e) of Notification 12/2017-CT(Rate) dated 28.06.2017, do not charge GST, on the ground that such services are rendered in relation to Agricultural Products. However, in one or two Ports, the service providers of loading and unloading and warehousing who handled wheat imports feels that the GST exemption Notification for the loading, unloading, packing, storage and warehousing of agricultural produce, mentioned under the Chapter heading 9986 Serial No.54(e) of Notification No. 12/2017 Central Tax (Rate) dated 2

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exemption will cover on the market and to all stake holders. Further, they have stated that as there is no differential treatment given between indigenous Agricultural produce and imported Agricultural produce, the exemption provided in respect of the unprocessed Agricultural produce is applicable not only to cultivators but also applicable to import traders.
3. The applicant was heard in person. The applicant submitted an agreement with Karaikal Port, an Invoice for storage charges and Advance Rule of Andhra Pradesh. They stated that Wheat is agricultural produce and service of loading, unloading, storage at Ports by respective Port authorities are related to agricultural produce and hence should be exempt.
4. The contentions of the applicant were examined. We find that the Advance Ruling sought is whether the exemption under Sl.No. 54(e) of Notification No. 12/2017-C.T.(Rate) dated 28.06.2017 is applicable for imported agricultural products Viz., Wheat also. From the submissions it

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In Re: Shri Kailash Chandra, (Mali Construction)
GST
2018 (11) TMI 1349 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (19) G. S. T. L. 537 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 29-10-2018
AAR No. RAJ/AAR/2018-19/22
GST
NITIN WAPA AND HEMANT JAIN MEMBER
Present for the applicant: Shri Yash Dhadda, CA, (Authorized Representative)
Note: Under Section 100 of the CGST/RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act 2017, within a period of 30 days from the date of service of this order.
The Issue raised by Shri Kailash Chandra, (Mali Construction), situated at Mali Vas, Maandava, Mandwa, Sirohi, Rajasthan 307001 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under ambit of the Section 97 (2) (a) (e) which is as given under:
a. Classification of any goods or services or both;
e. Determination of the liabil

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odel and O&M work. That the activities under ESCO model and O & M contract are so closely linked in a manner that they form a single indivisible supply. The driving factors are:
* A single tender shall be floated for Operation and Maintenance of Fluoride Control Project on ESCO Cum O&M Contract where the preamble of scope specifies that the contract combines ESCO model and O&M work.
* The nature of contract is such that initial activities under ESCO model is the main service and the other services under O&M contract combined with such service are in the nature of ancillary services which help in better operation of main activities under ESCO model and make the model successful.
c. Thus, based on above facts and concept such contract shall be a single supply and cannot be treated as distinct supplies. Since all the conditions of composite supply are satisfied, it is a composite supply.
d. Further, since composite supply of works contract has been specifically classified as supply

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applicant shall be responsible for painting, color/ white washing, distempering etc. to the pumping station building, thrice during the entire contract period.
Transmission Pipelines
The contractor shall be responsible for Patrolling, operation and maintenance of the pipelines, repairing of leakages of pipelines, replacement of burst pipes, repairing of appurtenances of pipelines like air valves, scour valves air vessels system, intermediate OHSR (for vacuum filling system), pressure gauges, joints etc.
Switchyards
He shall be responsible for replacement of transformers if required according to year 2027 designed capacity of pump sets. He shall also be responsible for painting, color/ white washing, distempering etc. to the switchyard stuff thrice during the entire contract period.
Storage Tanks (CWR)
He shall also be responsible for painting, color/ white washing, distempering etc. to the CWR, compound wall, store etc thrice during the entire contract period.
Headworks Campus

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ting of all permanent structures like pumping station building etc. are involved in the contract.
j. Based on above facts and the intent of the proposed activity, it is implied that the given work is a contract for improvement of the pumping system under the Fluoride control project, wherein transfer of property in goods in the form of new pumping machinery and mechanical/electrical equipment shall be involved in the execution of such contract.
k. That Works contract in itself is a composite supply in which construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning etc are involved along with transfer or property in goods.
l. Now whether a supply is a works contract or not is dependent on whether the plant or device or property is a movable or immovable property. To decide whether a property is movable or immovable, the given terms have not been defined under the Act and hence th

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as moveable and will, therefore, not be excisable goods.
p. Further, such a contract can amount to works contract in GST only if the improvement is of any immovable property. Taking references from the concepts evolved from the precedents, it is understood that the properties for which improvement works has been assigned like pump houses, storage tanks, headworks campus etc. cannot be moved from one site to another. All the components of the pumping system are erected at the prescribed location and permanently attached to the earth and they cannot be dismantled and reassembled as such dismantling may cause substantial damage to the system and its components.
Thus, according to applicant the property of improvement is an immovable property and thus the given work should be treated as works contract.
2. OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT
Whether the activity of O & M of Fluoride control project on ESCO Model and O & M work supply of goods or supply of services and what

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rvices. Now works contract service in itself is a composite supply. The same has been defined under Schedule-Il under Entry 6 which is read under:
“6. Composite supply
The following composite supplies shall be treated as a supply of services, namely:
(a) works contract as defined in clause (119) of section 2; and
(b) 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 or other valuable consideration.”
3. The terms and scope of the contract combines ESCO Model and O&M work. That the activities under ESCO model and O&M contract are so closely linked in a manner that they form a single indivisible supply. The driving factors are:
* A single tender is being floated for Operation and Maintenance of Fluoride Control Project on ESCO Cum O&M Contract in which preamble of s

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mp sets or as per site condition. The supply and installation of new pumping machinery and other equipments shall be done as per best engineering practice.
b. The operation and maintenance work shall be carried out of all the electrical and mechanical instruments, pumping machinery etc.
c. The pumping station and its surrounding shall be kept clean and in dry condition, properly ventilated and illuminated. For the purpose of illumination, replacement of fitting/ fixtures shall be done by the contractor, if required.
d. He shall be responsible for painting, color/ white washing, distempering etc. to the pumping station building, thrice during the entire contract period.
e. Transmission Pipelines
The contractor shall be responsible for Patrolling, operation and maintenance of the pipelines, repairing of leakages of pipelines, replacement of burst pipes, repairing of appurtenances of pipelines like air valves, scour valves air vessels system, intermediate OHSR (for vacuum filling sys

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d remote monitoring.
O&M work
The scope of work of O&M contract includes operation and maintenance of rising mains of RWSS/Clusters, OHSR and water treatment plant at Baghera.
5. It is understood based on the scope of work detailed above that ESCO model requires improvement of the whole water supply system involving pump houses, pumping stations, transmission lines, switchyards, storage tanks and headwork campus. Re-modelling of pump foundation and extension of pump house, replacement of fittings/ fixtures and painting of all permanent structures like pumping station building etc. are involved in the contract.
6. Based on above facts and the intent of the proposed activity, it is implied that the given work is a contract for improvement of the pumping system under the Fluoride control project, wherein transfer of property in goods in the form of new pumping machinery and mechanical/ electrical equipment shall be involved in the execution of such contract.
7. That Works contract in

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earth which is temporary in nature or can be shifted from part of earth to another without causing substantial damage to it cannot be treated as immovable property.
11. On the given issue, CBEC has also clarified in its circular number 58/ 1/2002-CX dated 15/ 1/2002 where in para (e) it was clarified that;-
If items assembled or erected at site and attached by foundation to earth cannot be dismantled without substantial damage to its components and thus cannot be reassembled, then the items involved not be considered as moveable and will, therefore, not be excisable goods.
12.According to definition of works contract under GST regime, the supply of goods and services are done by the supplier simultaneously which is for immovable property. Hence in works contract supply of goods and services together is compulsory.
Thus, based on above facts and concept we find that the contract shall be a single supply and cannot be treated as distinct supplies. Since all the conditions of composi

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nt or a local authority and the supply is by way of an activity in relation to functions entrusted to Municipality under Article 243W of the Constitution then no GST is applicable.
14. The activities entrusted to the Municipality under Article 243W of the Constitution of India and listed under Twelfth Schedule are enumerated as under;
[Article 243-W]
1. Urban planning including town planning.
2. Regulation of land use and construction of buildings.
3. Planning for economic and social development.
4. Roads and bridges.
5. Water supply for domestic, industrial and commercial purposes.
6. Public health, sanitation conservancy and solid waste management.
7. Fire services.
8. Urban forestry, protection of the environment and promotion of ecological aspects.
9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
10. Slum improvement and up gradation.
11. Urban poverty alleviation.
12. Provision of urban amenities and facili

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2017-CT (Rate) dated 28.06.2017, as amended from time to time.
On perusal of said Notification under S. No. 3(iii), for schedule of rate of Tax on works contract Services, following is mentioned:-
Heading 9954 (Construction services)
 
CGST Rate %
SGST Rate %
IGST Rate %
Remarks
 
(iii) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, –
(a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958);
(b) canal, dam or other irrigation works;
(c) pipeline, conduit or

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In Re: M/s. Borgwarner Morse Systems India Private Limited
GST
2018 (11) TMI 1267 – AUTHORITY FOR ADVANCE RULING, TAMILNADU – 2018 (19) G. S. T. L. 344 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, TAMILNADU – AAR
Dated:- 29-10-2018
ORDER No. 17/AAR/2018
GST
MS. MANASA GANGOTRI KATA, IRS AND SHRI. S. VIJAYAKUMAR, M.SC., MEMBER
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also

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aged in manufacture and sale of following automotive chains which are used as a major component in manufacture of motor engines for motor vehicles (i.e., for both two wheelers and four wheelers).
Silent chains/ Inverted tooth chains (Used in Petrol engines)
Roller chains/ Bushing (Used in Diesel engines)
These automotive chains are 'part of internal combustion engines' that synchronizes the rotation of the crankshaft and the camshaft(s) so that the engine's valves could open and close at proper times. As the automotive chains manufactured by the Applicant are used in further manufacture of engines for motor vehicles, the Applicant had classified their product under following HSN code:
HSN
Description as per Central Excise tariff schedule
8409
Parts suitable for use solely or principally with the engines of heading 8407 or 8408
8409 9191
………of petrol engines for motor vehicles
8409 9141
……..of diesel engines for motor vehicles
2.2. Even under the GST legislation, t

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tes to Section XVI for Chapter 84 of Customs Tariff, this Section does not cover parts of general use. Notes to Section XV for chapter 73 clarifies that 'parts of general use' includes articles of heading 7315. Further, there is no specific reference to Roller or Silent Chains in Chapter 84. Though automotive chains are made as per the specifications of the engines, they would be classifiable under HSN 7315. Further, explanatory notes to HSN refers to Transmission chains for chains, automobiles or machinery under HSN 7315 and international classification mentions “Articulated Link chains and parts thereof'. They have relied on the decision of Hon'ble CESTAT, WZB in the case of M/S. Impex Corporation Vs. Commissioner of Customs (1998 (103) E.L.T. 548 (Tribunal)) = 1998 (2) TMI 262 – CEGAT, CALCUTTA, wherein the Tribunal has held that 'steel chains' used as parts of agricultural machinery are specifically covered under Tariff Heading 7315 and Voltas Ltd vs Commissioner of Customs, Mumbai

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purchase by client company, copy of documents relating to exports of 'Chains' by their group companies under HSN 7315. The Applicant further furnished a Technical write-up of the chains with samples, invoices, sample contracts, import documents.
3.2 The submissions of the Applicant were examined. In the case at hand from the technical write-up furnished by the Applicant, it is seen that the product in question are timing chains or Transmission Chains which are used for chain drive mechanism i.e., way of transmitting mechanical power from one shaft to another and are made of steel. They are used for transmitting power between the driver and driving shafts in industrial and automotive applications. Roller chains or Roller bush chains are the most commonly used for transmission of mechanical power on many kinds of domestic, industrial and agricultural machinery including conveyors, cars, motorcycles etc. It consists of a series of short cylindrical rollers held together by side links and

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d chains i.e. made of a series of links or plates which are driven by external sprockets and do not have any other assembly. The Applicant supplies these mainly to automotive industries where they are used in internal combustion engine, they synchronizes the rotation of the crankshaft and the camshaft(s) so that the engine's valves could open and close at proper time.
4.2 In terms of explanation (iii) and (iv) to Notification No. 1/2017 Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 and the rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975, including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall be applied for the interpretation and classification of goods.
4.3. Chapter 7315 covers “Chain and parts thereof, of Iron and Steel' and 'Ar

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made from wire, etc), and ball chain.
The heading includes:
(1) Transmission chains for cycles, automobiles or machinery.
(2) Anchor or mooring chains; lifting, haulage or towing chains; automobiles skid chains.
(3) Mattress chains, chains for sink stoppers, lavatory cisterns, etc.
All these chains may be fitted with terminal parts or accessories (e.g. hooks, spring hooks swivels, shackles, sockets, rings and split rings and tee pieces). They may or may not be cut to length, or obviously intended for particular uses.
Iron or steel parts of chain specialised as such e.g. side links, rollers, spindles, etc., for articulated chain, links and shackles for non-articulated for non-articulated chain, also fall in this heading.
The heading does not cover :
(a) Chains having the character of imitation jewellery in the sense of heading 71.17 (e.g. watch chain and trinket chains).
It is seen that articulated link chains of steel such as roller chain, inverted tooth (silent) chains ar

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nders and cylinders blocks, cylinders heads; cylinders linters; inlet or exhaust valves; inlet or exhaust manifolds; piston rings, connecting-rods; carburettors, fuel nozzels),
However, the heading excludes;
(a) Injection pumps (Heading 84.13)
(b) Engine crank shafts and cam shafts (heading 84.83) and gear-boxes (heading 84.83).
(c) Electrical ignition or starting equipment (including, sparking plugs and glow plugs) (heading 85.11)  
HSN Explanatory Note (1) (g) of Section XVI which covers chapter heading 84 states as under:
1. This Section does not cover:
(a)…………………
(g) Parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39)
Note 2 to Section XV defines 'parts of general use 'as under:
2. Throughout this Nomenclature, the expression “parts of general use” means:
(a) Articles of headings 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metal;
Further, the General Note

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The Mizoram Goods and Services Tax (Amendment) Ordinance, 2018 (Ordinance No. 3 of 2018).
H.12018/243/2017-LJD Dated:- 29-10-2018 Mizoram SGST
GST – States
Mizoram SGST
Mizoram SGST
NOTIFICATION
No. H.12018/243/2017-LJD, the 29th October, 2018.
The following Ordinance is hereby published for general information.
The Mizoram Goods and Services Tax (Amendment) Ordinance, 2018
(Ordinance No. 3 of 2018)
Promulgated by the Governor of Mizoram on the Sixty Ninth year of the Republic of India
An Ordinance
to amend the Mizoram Goods and Services Tax Act, 2017.
WHEREAS the Mizoram Goods and Services Tax Act, 2017 came into force on 1st July 2017 respectively;
AND WHEREAS the Mizoram Goods and Services Tax Act, 2017 subsumes all existing Indirect Taxation Laws being in place in the State of Mizoram so as to impose goods and services tax (GST) on all goods and services except alcohol for human consumption and five petroleum products (viz. petroleum crude, high speed diesel

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ed by clause (1) of Article 213 of the Constitution of India, the Governor of Mizoram is pleased to promulgate the following Ordinance, namely:-
1. Short title and commencement (1) This Ordinance may be called the Mizoram Goods and Services Tax (Amendment) Ordinance, 2018.
(2) Save as otherwise provided, the provisions of this Ordinance shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Ordinance and any reference in any such provision to the commencement of this Ordinance shall be construed as a reference to the coming into force of that provision.
2. Amendment of section 2: – In section 2 of the Mizoram Goods and Services Tax Act, 2017 (hereinafter referred to as the Principal Act),
(1) in sub-section (4), for the words “the Appellate Authority and the Appellate Tribunal”, the words, brackets and figures “the Appellate Authority, the Appe

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xpression “services” includes facilitating or arranging transactions in securities;'.
3. Amendment of section 7: – In section 7 of the Principal Act, with effect from the 1st day of July, 2017,
(1) in sub-section (1),
(a) in clause (b), after the words “or furtherance of business;”, the word “and” shall be inserted;
(b) in clause (c), after the words “a consideration”, the word “and” shall be omitted;
(c) clause (d) shall be omitted;
(2) after sub-section (1), the following sub-section shall be inserted, namely:-
“(1A) where certain activities or transactions constitute a supply in accordance with the provisions of sub-section (1), they shall be treated either as supply of goods or supply of services as referred to in Schedule II.”;
(3) in sub-section (3), for the words, brackets and figures “sub-sections (1) and (2)”, the words, brackets, figures and letter “sub-sections (1), (1A) and (2)” shall be substituted.
4. Amendment of section 9: – In section 9 of the Principal Act,

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the words “one crore and fifty lakh rupees” shall be substituted;
(c) after the proviso, the following proviso shall be inserted, namely:
“Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in the State in the preceding financial year or five lakh rupees, whichever is higher.”;
(2) in sub-section (2), for clause (a), the following clause shall be substituted, namely:
“(a) save as provided in sub-section (1), he is not engaged in the supply of services;”.
6. Amendment of section 12: – In section 12 of the Principal Act, in sub-section (2), in clause (a), the words, brackets and figure “sub-section (1) of” shall be omitted.
7. Amendment of section 13: – In section 13 of the Principal Act, in sub-section (2), the words, brackets and figure “sub-section (2) of” occurring at both the places, sh

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following Explanation shall be inserted, namely:-
'Explanation.- For the purposes of this sub-section, the expression ''value of exempt supply'' shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule.';
(2) in sub-section (5), for clauses (a) and (b), the following clauses shall be substituted, namely:-
“(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-
(A) further supply of such motor vehicles; or
(B) transportation of passengers; or
(C) imparting training on driving such motor vehicles;
(aa) vessels and aircraft except when they are used
(i) for making the following taxable supplies, namely:-
(A) further supply of such vessels or aircraft; or
(B) transportation of passengers; or
(C) imparting training on navigatin

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(a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as leave or home travel concession:
Provided that the input tax credit in respect of such goods or services or both shall be available, where it is obligatory for an employer to provide the same to its employees under any law for the time being in force.”.
10. Amendment of section 20: -In section 20 of the Principal Act, in the Explanation , in clause (c), for the words and figures “under entry 84,”, the words, figures and letter

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rted.
13. Amendment of section 25: – In section 25 of the Principal Act,
(1) in sub-section (1), after the proviso and before the Explanation, the following proviso shall be inserted, namely:
“Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005, in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State.”;
(2) in sub-section (2), for the proviso, the following proviso shall be substituted, namely:
“Provided that a person having multiple places of business in the State may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.”.
14. Amendment of section 29: – In section 29 of the Principal Act,
(1) in the marginal heading after the word “Cancellation”, the words “or suspension” shall be inserted;
(2) in sub-section (1

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, the words “Where one or more tax invoices have” shall be substituted;
(b) for the words “a debit note”, the words “one or more debit notes for supplies made in a financial year” shall be substituted.
16. Amendment of section 35: – In section 35 of the Principal Act, in sub-section (5), the following proviso shall be inserted, namely:-
“Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.”.
17. Amendment of section 39: -In section 39 of the Principal Act,
(1) in sub-section (1),
(a) for the words “in such form and manner as may be prescribed”, the words “in such form, manner and within such time as may be prescribed” shall be substituted;
(b) the words “on or before the twentiet

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rm and manner as may be prescribed” shall be substituted;
(b) in the proviso, for the words “the end of the financial year”, the words “the end of the financial year to which such details pertain” shall be substituted.
18. Insertion of section 43A:- After section 43 of the Principal Act, the following section shall be inserted, namely:-
Procedure for furnishing return and availing input tax credit.
“43A. Procedure for furnishing return and availing input tax credit. – (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate, modify or delete the details of supplies furnished by the suppliers.
(2) Notwithstanding anything contained in section 41, section 42 or section 43, the procedure for availing of input tax credit by the recipient and verification thereof shall be such as may be prescribed.
(3) The procedure for furnishing the de

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hed under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for the non-recovered amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section
(3) by a registered person,-
(a) within six months of taking registration;
(b) who has defaulted in payment of tax and where such default has continued for more than two months from the due date of payment of such defaulted amount, shall be such as may be prescribed.”.
19. Amendment of section 48: – In section 48 of the Principal Act, in sub-section (2), after the word and figures “section 45”, the words “and to perform such other functions” shall be inserted.
20. Amendment of section 49: – In section 49

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conditions.
“49A. Utilization of input tax credit subject to certain conditions. – Notwithstanding anything contained in section 49, the input tax credit on account of State tax shall be utilized towards payment of integrated tax or State tax as the case may be, only after the input tax credit available on account of integrated tax has first been utilized fully towards such payment.
Order of utilization of input tax credit.
49B. Order of utilization of the input tax credit. – Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilization of the input tax credit on account of integrated tax, central tax, State tax or Union Territory tax, as the case may be, towards payment of any such tax.”
22. Amendment of section 52: -In section 52 of the Principal Act, in sub-section (9), for the word and figures

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this section, the word person shall include “distinct persons” as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25.'.
25. Amendment of section 107: -In section 107 of the Principal Act, in sub-section (6), in clause (b), after the words “arising from the said order,”, the words “subject to a maximum of twenty-five crore rupees,” shall be inserted.
26. Amendment of section 112: – In section 112 of the Principal Act, in sub-section (8), in clause (b), after the words “arising from the said order,” the words “subject to a maximum of fifty crore rupees,” shall be inserted.
27. Amendment of section 129: – In section 129 of the Principal Act, in sub-section (6), for the words “seven days”, the words “fourteen days” shall be substituted.
28. Amendment of section 143: -In section 143 of the Principal Act, in sub-section (1), in clause (b), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that the period of one year

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Submission of final return in FORM GSTR-10 till 31.12.2018 for the taxpayers whose registration has been cancelled on or before the 30th September, 2018 by the Proper Officer.
34061-FIN-CT1-TAX-0043/2017-S.R.O. No. 430/2018 Dated:- 29-10-2018 Orissa SGST
GST – States
Orissa SGST
Orissa SGST
GOVERNMENT OF ODISHA
FINANCE DEPARTMENT
NOTIFICATION
The 29th October, 2018
S.R.O.- In exercise of the powers conferred by section 148 of the Odisha Goods and Services Tax Act, 2017 (Odisha

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Imarti Lakdi Vyapari Sansthan Jodhpur Versus The State Of Rajasthan
GST
2018 (11) TMI 212 – RAJASTHAN HIGH COURT – [2019] 60 G S.T.R. 1 (Raj), 2019 (20) G. S. T. L. 212 (Raj.)
RAJASTHAN HIGH COURT – HC
Dated:- 29-10-2018
D. B. Civil Writ Petition No. 1451/2018
GST
MR. SANGEET LODHA AND MR. DINESH MEHTA JJ.
For Petitioner(s) : Mr. H. R. Soni.
For Respondent(s) : –
Judgment
1. The petitioner, a Society registered under the provisions of Society Registration Act, 1958 (hereinafter referred to as 'Petitioner Society') has preferred the present writ petition, seeking a declaration to the effect that respondent-State has no power to charge tax/cess payable under the provisions of Rajasthan Agriculture Produce Marketing Act, 1961 (hereinafter referred to as the 'Act of 1961') from its members.
2. Mr. Soni informing that the members of petitioner society are engaged in purchase and sale of timber (Imarti Lakadi), asserted that they are having their shops and godowns

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dent-Agriculture Market Committee, such levy and recovery of Mandi cess from the members of the petitioner society is arbitrary and violative of Article 14 of the Constitution of India on the one hand and is a fetter on their right to carry on trade and business, which stand guaranteed by Article 19 (1) (g) of the Constitution of India.
5. We have heard learned counsel for the petitioner and perused the material available on record.
6. At the outset, we may observe that the entire edifice of the petitioner's case is based on the assumption that the impugned levy under the Act of 1961 is a 'Cess'; such foundation is clearly contrary to the very provisions of the Statute and law on the subject.
7. Levy under Section 17 of the Act of 1961 is a 'fee'.
8. It is a settled proposition of law that the State can levy market fee under the relevant provisions of a statute, enacted in exercise of powers available to it under Entry 66 of the second list of the VIIth Schedule. It has also been s

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a market committee constituted under Sub-section (1) of Section 4 of the Act does not end with establishing such number of markets in the notified market area under the first part of Sub-section (3) but also extends to the providing of such facilities in the market as the Government may from time to time by general or special order specify under the second part of Sub-section (3). In exercise of their powers under Section 33 of the Act, the State Government have framed the Andhra Pradesh (Agricultural Produce & Livestock) Markets Rules, 1969. Chapter V relates to 'Regulation of trading'. It would appear that Rules 48 to 53 are the machinery provisions for controlling the trade in notified agricultural produce, livestock and products of livestock in a notified area while Rules 54 to 73 impose restrictions on the carrying on of all such trade in such area. It is clear from the provisions of Section 15 of the Act that the services to be rendered by the market committee and facilit

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market area outside the market in that area.” Another unfounded assumption of the learned Counsel was that the activities of the market committee and the facilities provided by it were confined by Act to the market area only. The establishment, maintenance and improvement of the market is one of the purposes for which the market committee fund might be expanded under Section 15 of the Act. The other services such as the provision and maintenance of standard weights and measures, the collection and dissemination of information regarding all matters relating to crop statistics and marketing in respect of notified agricultural produce, livestock and products of livestock, schemes for the extension or cultural improvement of notified agricultural produce including the grant of financial aid to schemes for such extension or improvement within such area undertaken by other bodies or individuals, propaganda for the improvement of agricultural produce, livestock and products of livestock and

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oresaid view is fully fortified by the judgment of Division Bench of this Court in the case of M/s Vishwakarma Timber Mart vs. State of Rajasthan, reported in 1984 WLN 402, which reads as :-
“Under the definition of “agricultural produce” it cannot be said that the 'timber' is wholly unconnected with the agriculatural produce and, therefore, no ground is made out for striking down this item. In any case the timber (imarti lakadi) is a notified item in the Schedule and comes within the legislative competence and is covered by the words “or otherwise” in the Schedule, as defined in the definition of “agricultural produce”.
11. Moving on to the last point of the petitioner that after promulgation of Goods and Service Tax, the levy of cess under the Act of 1961 cannot continue; we are constrained to observe that even this argument is misconceived.
12. The constitution (One Hundred and First Amendment) Act, 2016 was enacted by the Parliament with the intent to consolidate number of indir

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