Goods and Services Tax

M/s. East Coast Constructions & Industries Ltd. Versus The State of Tamil Nadu, Assistant Commissioner (Commercial Taxes)
VAT and Sales Tax
2018 (10) TMI 347 – MADRAS HIGH COURT – TMI
MADRAS HIGH COURT – HC
Dated:- 27-9-2018
W.P.No.29447 of 2008 And MP No.1 of 2008
CST, VAT & Sales Tax
Mr. K. Ravichandrabaabu J.
For the Petitioner : Mr.Joseph Prabakar
For the Respondents : Mr.M.Hariharan Additional Government Pleader (T)
ORDER
The petitioner is aggrieved against the order dated 03.11.2008, revising the assessment in respect of assessment year 2004-05.
2. The petitioner is a Limited Company engaged in the business of Civil construction and a registered dealer under the second respondent. The assessment for the year 2004-05 under TNGST was completed and an order of assessment was passed by the second respondent on 15.11.2006, wherein the second respondent had allowed exemption of Rs. 1,80,16,025/-, representing value of building materials purchased in the cours

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he petitioner, when the notice of proposal dated 11.06.2008 was issued to the petitioner.
Therefore, he contended that the impugned order was based on reasons extraneous to notice of proposal. On merits, the learned counsel contended that the petitioner is entitled to such exemption under Section 3B(2)(b) of the TNGST Act, 1959 and the Assessing Officer has dealt with in detail with regard to the eligibility of the petitioner to get such exemption, in his original order of assessment dated 15.11.2006. Therefore, he submitted that without there being any valid reason, such conclusion arrived by the Assessing Officer cannot be changed or altered by way of revision.
4.On the other hand, the learned Additional Government Pleader appearing for the respondents submitted that when the petitioner was not entitled to exemption in respect of purchases of building materials effected through interstate sale, the Authority is entitled to revise the order of assessment granting such exemption.
He

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ilding materials for Rs. 1,80,16,025/- and Iron and Steel (Declared Goods) for Rs. 14,19,34,312/- were verified with relevant documents and found admissible. Having found so, the Assessing Officer has chosen to revise the assessment by issuing the notice of proposal dated 11.06.2008.
7. A careful perusal of the said notice would indicate that the same does not reveal any material details or particulars as to how the Assessing Officer proposed to disallow the exemption already granted in respect of purchases made through interstate sale to the tune of Rs. 1,80,16,025/-. Except stating that on examination of assessement on records, it is seen that turnover of Rs. 1,80,16,025/-, being the interest purchase of building materials, were wrongly allowed exemption, the said notice does not disclose as to what materials found in the assessment records had driven the Assessing Officer to make such proposal for disallowing the exemption.
8. Needless to state that the assessee will be in a posit

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TC 204) is not applicable from the year 2002-03. The goods in question are general in nature and are readily available to any buyer and can be used by any dealer. It cannot be established that the goods are usable only to a particular contract and will not be fit for other works.”
9. Perusal of the above said findings rendered by the Assessing Officer would show that such reasonings were not referred in the form of proposal, when notice was issued on 11.06.2008. Needless to say that a reasoning in the order of assessment should emerge from the related grounds raised in the notice of proposal and not to be stated as the first time, while passing the order of assessment. In other words, the assessee cannot be put to surprise with certain reasons in the assessment order, when crux of such reasons, in the form of grounds, is not stated in the notice of proposal. At the same time, at this stage, this Court is not expressing any view on the correctness or otherwise of the reasons assigned b

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Shlok Media Pvt. Ltd. Versus Commissioner of GST & Central Excise Mumbai West
Service Tax
2018 (10) TMI 97 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 27-9-2018
ST/87354/2018 – A/87453/2018
Service Tax
Dr. Suvendu Kumar Pati, Member (Judicial)
For the Applicant : Shri Devendra Jain, C.A.
For the Respondent : Shri Dilip Shinde, Assistant Commissioner (AR)
ORDER
Disposal of two appeals filed by the appellant before the Commissioner (Appeals III), GST & CX, Mumbai against adjudication orders confirming duty demand, interests and penalties solely on the ground of belated filing and non-payment of pre deposit is the subject matter of the appeal before this Tribunal.
2. Contention of the appellant, as submitted by Learned C.A. Shri Devendra Jain, is that Appellant could not file the said appeal before the Commissioner (Appeals) within two months of receipt of the order but filed the same within 30 days thereafter with a prayer for condonation of delay explainin

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15.06.2017 for which the Commissioner had rightly given his finding. Further he disputed the contention of the appellant that substantial portion of the duty liability was discharged. Since both the OIOs and OIA revealed that duty demand of Rs. 7,69,009/- and Rs. 73,28,013/- were confirmed by those orders along with interests and penalties, Section 35F bars the appeal bereft of pre deposit for which interference by this appellate court is uncalled for.
4. Perused the case record including the OIA. It is found from paragraph 18 of the OIA that OIOs were received admittedly by the appellant on 15.06.2017 that is after 9 months 14 days of the orders passed on 30/31.08.2016. It was also recorded by the Commissioner appeals that no documentary evidence was furnished by the appellant concerning the receipt of OIOs. At the same time he had brought it on record that the Punjab National Bank had taken possession of the immovable property of the appellant on 22.08.2016 that was just a week bef

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s on record and OIA, it is apparently clear that acknowledgment of receipt of orders in original by the appellant vide exhibit E contains the date of receipt as 15.06.2017. The ground of rejection of delay condonation petition by the Commissioner (Appeals) indicates that appellant had applied to the Department in writing on 24.08.2017 i.e. after two weeks of filling of appeal, as held by Commissioner, but no finding is forthcoming as to if any previous proof of delivery of OIOs on the appellant was established. Therefore the date refered in the acknowledgment vide Exhibit E has to be accepted as the date of delivery of OIOs on the appellant. The Commissioner has relied upon the decision of the Hon'ble Supreme Court pronounced in respect of Singh Enterprises Vs. Commissioner of C. Ex., Jamshedpur 2008 (221) E.L.T. 163 (S.C.) and given his finding that appeal before the Commissioner has to be filed within two months or at the maximum within the condonable delay period of further 30 days.

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ion that delay was occasioned deliberately.
6. In another decision, reported in (2001) 9 SCC 106, Hon'ble Supreme Court has observed that where the delay is of a few days, the court should adopt a liberal approach. A distinction must be made between a case where the delay is inordinate and a case where the delay is of few days. Whether the delay is inordinate, the consideration of prejudice to the opposite party will be a relevant factor calling for a more cautious approach, but in the latter case where the delay is of few days, no such consideration may arise, and such a case deserves a liberal approach. The Hon'ble Supreme Court also observed that in exercise of discretion on the facts of each case, keeping in mind that in construing the expression “sufficient cause”, the principle of advancing substantial justice is of prime importance.
7. In respect of nonpayment of statutory pre deposit amount for filing of appeal, appellant contention that 80 per cent of duty liability has been

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rit of the decision is to be assessed by the Appellate Tribunal. In the instant case, as found from the order of the Commissioner (Appeals), no merit concerning tax liability of the appellant has been discussed and the appeal filed by him was rejected as not maintainable as hit by the period of limitation.
9. Section 35B (b) empowers the Appellate Tribunal to entertain appeal against an order passed by the Commissioner (Appeals) under Section 35A and in view of Sub-Section 4 to Section 35A, such order of the Commissioner (Appeals), at the time of disposal of appeal before him, shall state the points for determination, the decision thereon and the reasons for such decisions. Hon'ble Supreme Court in Saheli Leasing & Industry Ltd. – 2010 (253) ELT 705 (SC) also proposed a guideline to be followed by quasi judicial authority. In the instant case such a decision with reason on the merit of the appeal is not forthcoming.
10. Since this Appellate Tribunal cannot go beyond the order of the

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Essel Propack Ltd. Versus Commissioner of GST & CX, Thane Rural
Central Excise
2018 (10) TMI 81 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 27-9-2018
E/85319/2018 – A/87452/2018
Central Excise
Dr. Suvendu Kumar Pati, Member (Judicial)
For the Appellant : Shri Prasad Paranjape, Advocate
For the Respondent : Shri D.S. Chavan, Supdt. (AR)
ORDER
The dispute relating to availment of cenvat credit of service tax paid on five items by the appellant manufacturing company has given rise to this appeal after denial of cenvat credit to the tune of Rs. 15,03,613/- was adjudicated by way of order-in-original allowing a major portion and disallowing Rs. 4,61,048/- that was again challenged and resulted in confirmation of duty demand of Rs. 4,29,853/- against inadmissible credit, interest and penalty of equivalent amount invoking extended period.
2. Factual backdrop of the case, as revealed from the appeal memo and the submissions of the ld. Counsel for the appellant is

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envat credit for the entire amount of Rs. 31,195/- availed against gardening services and confirmed the duty demand etc. in respect of rest of services.
3. During the course of hearing of appeal, ld. Counsel for the appellant submitted a compilation of case laws in respect of each cenvat credit availed by them and sample invoice copies concerning shifting of machinery from their Washind factory to Goa to justify the labour charge incurred by them along with copies of purchase order marked as exhibit A-1 to A-3 annexed to the appeal memo concerning services availed from M/s. Voltas Material Handling Pvt. Ltd., M/s. Lanes Mechatronics and Vodafone. He argued that in view of decision reported in 2013 (30) STR 3 (Guj.), 2016 (45) STR 383 (Tri-Mumbai), 2016 (44) STR 654 (Tri-Chan.), AC fitted in guesthouse and shop floor required periodic maintenance and such services availed by maintenance of AC are admissible credits. He further submitted that in view of decision reported in 2017 (3) GST

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tion, the ld. AR contended that such irregularity was sought to be purposefully remediated in raising ISD challan after the irregularity was pointed by the department. Raising strong objection to the contention of the appellant in respect of copies of two bills and concerning labour charges of shifting of machine, which should not have been produced before the appellate Tribunal and admitted as evidence without an express permission as contemplated under Rule 23 of the CESTAT Procedure, he pointed out that fraud had been practised in converting a transportation bill to labour charge bill. Pointing out the insertion of the words “labour charges” made in the bill subsequent to its preparation, the ld. AR submitted that those copies should be disbelieved since not considered to have been raised against labour charges. Moreover, he reiterated the Commissioner (Appeals)'s observation that outward transportation mentioned in the definition of input service was in respect of final product and

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nd signature can be done by a court but even such requirement would not arise in the instant case since to a man of ordinary prudence, two different handwriting are visible in those two bills and it appears that labour charges have been purposefully inserted in the bills to cover the services availed under the Cenvat Credit Rules. Likewise, Exhibit A series did not reveal that those purchase orders were actually handed over to the vendors since in its right side margin, an endorsement is available that the same is a test print not (meant) for vendor. Appellant has produced those only to indicate that vendors were requested to shift the consignment to the factory address at Washind and not to its Head office but going by the conduct of the appellant the same cannot be taken as an affirmation of appellant's contention. On the other hand, it should be considered as misstatement or fraud being practiced by the appellant, since it is not a copy of the original purchase order and manufacture

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tion to say that a person, whose case is based on falsehood, has no right to approach the court. He can be summarily thrown out at any stage of the litigation.” (highlighted to emphasis)
9. In Indian Bank Vs. Satyam Fibres (India) Pvt. Ltd. (1996) 5 SCC 550 it was held by the Hon'ble Supreme Court as follows:-
“since fraud affects the solemnity irregularity and orderly base of the proceedings of the Court and also amounts to the abuse of the process of court, the courts have been held to have an inherent power to set aside an order obtained by fraud practice upon that court. Similarly where the court is misled by the party or the court itself counts the mistake which prejudice the party the court has inherent power to recall its order.”
10. Though the above pronouncements were held in respect of civil disputes, it has a bearing on the case in hand for the reason that documentary evidence produced before the Court have no connection on the actual transactions made by the appella

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In Re: GKB LENS PVT. LTD. (Assistant Commissioner, CGST & CX, Tollygunge Division, Kolkata South Commissionerate)
GST
2018 (9) TMI 1768 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (17) G. S. T. L. 698 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAAR
Dated:- 27-9-2018
05/WBAAAR/Appeal/2018
GST
MR. RAKESH KUMAR SHARMA, AND MR. RANDHIR KUMAR, MEMBER
Present for the Appellant: None
Present for the Respondent: Mr. Sandeep Kothari, Chartered Accountant, Authorised Representative
This Appeal has been filed by the Assistant Commissioner, CGST & CX, Tollygunge Division, Kolkata South Commissionerate (hereinafter referred to as the “Appellant”), on 06.07.2018 against the Advance Ruling No. 07/WBAAR2018-19 dated 30.05.2018 = 2018 (6) TMI 72 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL pronounced by the West Bengal Authority for Advance Ruling.
2. M/s. GKB Lens Pvt. Ltd., holding GSTN No. 19AACCG3446M1ZA, re-seller and im

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of Rule 28 and is eligible to value these goods by applying the terms of the Second Proviso to Rule 28 of GST Act.
The expression “where the recipient is eligible for full input tax credit”, as used in the Second Proviso to Rule 28 of CGST Rules, 2017 means that the recipient will be eligible to take full input tax credit of the amount of tax paid by the supplier as mentioned in the respective invoice or any other document valid under Section 16(2)(a) of GST Act.”
3. The Appellant has filed an Appeal against the above Advance Ruling regarding the availability of Input Tax Credit on stock transfer from the Head Office of M/s. GKB Lens Pvt. Ltd. to its branches in other States at Zero Value.
According to the Appellant “the wordings of the Ruling dated 30.05.2018 has created an impression that the recipient would be eligible for Input tax Credit if the supplier paid the tax.” Instead of those wordings the WBAAR should have declared in no uncertain terms that no input tax credit woul

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at if the value declared in such invoice is zero no input tax credit is available to the recipient.
6. It is seen that the question raised by M/s. GKB Lens Pvt. Ltd. was correctly answered by the Authority of Advance Ruling. However, it may be clarified that no input tax credit is available to the recipient of goods/service if the value declared by the supplier in the invoice/debit note is zero.
In the facts and circumstances discussed above the Ruling of the West Bengal Authority of Advance Ruling is modified to the extent that at the end of the second paragraph of the said ruling the following sentence will be added:
“No input tax credit, however, would be available for supply of goods / services at Zero Value.”
The Advance Ruling No. 07/WBAAW2018-19 dated 30.05.2018, = 2018 (6) TMI 72 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL pronounced by the West Bengal Authority for Advance Ruling is modified accordingly and the Appeal stands disposed of.
A copy of this Order may be sent

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M/s Rajavat Steels And Another Versus State Of U.P. And 3 Others
GST
2018 (9) TMI 1767 – ALLAHABAD HIGH COURT – 2018 (18) G. S. T. L. 814 (All.) , [2019] 60 G S.T.R. 6 (All)
ALLAHABAD HIGH COURT – HC
Dated:- 27-9-2018
Writ Tax No. – 1300 of 2018
GST
Ashok Kumar, J.
For the Petitioner : Rahul Agarwal
For the Respondent : C.S.C.
ORDER
Ashok Kumar, J.
Heard learned counsel for the petitioners and learned Standing Counsel for the State.
This writ petition is filed with prayer to quash the notice dated 18.09.2018 passed by respondent no.3 and further to release the goods and the vehicle.
Prima facie, this Court finds that on totally frivolous grounds the goods in question are seized by the Mobile Squad-9, Kanpur.
Th

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ant case, the proceedings under Section 129 of the CGST Act read with Section 20 of the IGST Act are initiated while the goods were proceeded from Kanpur and were to be delivered at the purchaser, who situates at Udhamnagar, Uttrakhand and immediately after proceeding from the business place of the petitioner, the respondent no.4, Mobile Squad Authority has detained the truck and goods at Kalyanpur and initiated the seizure proceeding and has passed the seizure order.
The ground for seizing the goods is that in the invoice, E-way bill and weigh slip the Truck number was mentioned being U.P.-78-DN 7983 instead of U.P.-78-DN 7938.
Learned counsel for the petitioner contended that the said mistake was due to inadvertent human error by the pe

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M/s. SCORPIO ENERPRISE THROUGH DEVANG HARSHADBHAI PATHAK S/O. HARSHADBHAI PATHAK Versus UNION OF INDIA
GST
2018 (9) TMI 1766 – GUJARAT HIGH COURT – TMI
GUJARAT HIGH COURT – HC
Dated:- 27-9-2018
R/SPECIAL CIVIL APPLICATION No. 14980 of 2018
GST
MR AKIL KURESHI AND MR B.N. KARIA, JJ.
For The Respondent (s) : Ms. Oza, Advocate for M/s. Wadia Ghandy And Co (5679)
ORAL ORDER
(PER : HONOURABLE Mr. JUSTICE AKIL KURESHI)
Petitioner has challenged the vires of amended subrule

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Deleted……

GST rate for individual residential house.
Query (Issue) Started By: – SARVESH RANE Dated:- 26-9-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GST
Got 7 Replies
GST
Dear Sir can you please provide me clarification on GST rate for providing service to build only individual residential house (not including land).
Case- I owned piece of land and I want to construct house over there so i hired the civil engineer for the same. Contract value is 25 lakh for building house including labor and material. So what will be the GST rate levied by civil engineer for providing the service.
What will be the GST rate if contract is consist of providing only labour servies(not material)??
Thank You..!!!
Reply By KASTURI SETHI:
The

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GST rate for Pure Labor Services
Query (Issue) Started By: – SARVESH RANE Dated:- 26-9-2018 Last Reply Date:- 22-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Hello Sir, If one construction firms let us say ABS & Co. provides only labors to other construction company let us say Patil Ltd. then is this service exempt as per Sl. No. 10 & 11 of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017??? If not what will be the GST rate levied by ABS & Co. for supplying service to Patil Ltd. Please clarify.
Thanking You..!!!
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
In my view it is exempted.
Reply By KASTURI SETHI:
The Reply:
I endorse the views of Dr.Govindarajan,, Sir.
Reply By SARVESH RANE:
The Reply:
Ve

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ISD can distribute ITC to SEZ or not.
Query (Issue) Started By: – Alkesh Jani Dated:- 26-9-2018 Last Reply Date:- 25-10-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Experts,
If a company is having his head office in Delhi and three factory in three different states and one unit in SEZ. The head office had taken registration as ISD also.
The query is :-
ISD can distribute ITC to its SEZ unit or not.
Thanks
Reply By KASTURI SETHI:
The Reply:
ISD can distribute ITC (

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Cabinet approves increasing of Government ownership in Goods and Services Tax Network and change in the existing structure with transitional plan
GST
Dated:- 26-9-2018

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi has approved increasing of Government ownership in Goods and Services Tax Network (GSTN) and change in the existing structure with transitional plan as per following:
* Acquisition of entire 51% equity held by the Non-Government Institutions in GST

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Interest calculation in GST
Query (Issue) Started By: – anuja bhandari Dated:- 26-9-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GST
Got 6 Replies
GST
If the total GST liability is 10 Lacs for Aug 2018, Eligible ITC availed is 7 Lacs, Balance challan paid on 25 Sept 2018 with interest calculated on 3 lacs for 5 days delay. Return filed on 25 Sep 2018. Whether interest to be calculated on full liability of 10 lacs or Challan payable amount of 3 lacs?
Reply By Nitika Aggarwal:
The Reply:
Dear Sir,
As per provisions contained in Section 50 of CGST Act, 2017, Interest shall be paid on full amount i.e. ₹ 10 Lacs for 5 days delay in return filing. For the sake of easy reference, the relevant extracts from the a

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edited after making debits in electronic cash ledger or electronic credit ledger. Further it is important to note that, the electronic liability register can be credited only at the time of filing the monthly return, i.e., GSTR-3B / GSTR-3.
Another school of thought
Interest for the delayed payment of tax is considered to be levied for the reason that there would be a loss to Government, to the extent of such delay. However, in cases where there is sufficient balance in electronic cash ledger and electronic credit ledger and such credit is reflecting in GSTR-2A there would be no loss to the treasury.
When this fact is taken into account the law is against the basic philosophy behind levy of interest. This could be challenged by filing wr

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omething I can remove or take refund of (considering I do not fall in Sec 54/55 refund provisions), the ITC is with the Government. Only because of the machinery provision of filing of a GSTR 3B return that it needs to be debited could be questioned.
Also, in case of high volume output tax of a taxpayer where ITC is in excess and delay of filing return due to some unavoidable reason, the interest could be exponentially high just because the return was delayed. Wherein the taxpayer is paying prescribed late fee for filing the return.
Please let me know if any views on the above. Appreciate the responses. Thank you.
Reply By Ganeshan Kalyani:
The Reply:
Pay tax means ₹ 10 lacs. It can be paid by two way that is either by cash or by

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Regarding Anti Profiteering
Query (Issue) Started By: – Prashanth Jadhav Dated:- 26-9-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sirs,
We had received a Purchase Order for supply of IT Hardware goods in February 2017. With the delivery Date being 05/07/2017.
The Purchase Order Had Expired after this date due to site readiness issues at the customer end.
The Purchase order was amended so that the delivery can be carried out. The revised purchase order mentioned SGST 9% and 9% CGST applicable with the purchase price remaining the same.
Based on this the materials were delivered to the customer on 19/03/2018.
While we had submitted our invoice for payment realization, the customer ha

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ction of GST. Such benefit is required to be passed on. In your case, since the entire transaction is under GST, the taxes would not be forming part of the cost and thus are not required to be passed on.
Reply By Yash Jain:
The Reply:
Dear Sir,
Per Se, it appears that the contention of your customer will not hold good and following are the reasons ,
* CVD and SVD have been subsumed in GST : Now CVD and SVD Will form part of Cost of your product as you have imported them in pre GST Regime and must not have taken the Credit of Same in trans 1. Hence they will form Part of Cost of your goods.
(However if you have taken CVD and SVD Credit in trans 1, then please reduce the price by giving credit note to customer to that Extent).
Anti Pr

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Capital goods purchase for exempted unit and sold out
Query (Issue) Started By: – Vinod Daga Dated:- 26-9-2018 Last Reply Date:- 3-10-2018 Goods and Services Tax – GST
Got 4 Replies
GST
I have purchase some capital goods by paying GST on it. As I am selling goods which are exempted under GST so I have not taken any input against this. I am registered in GST and paying GST of some taxable turnover.
After 3 years I have sold out this, Now my question is whether I have to charge GST on these capital goods, if yes then its not double taxation or can I availed input credit on the same now.
Reply By Yash Jain:
The Reply:
Dear Sir,
As your finished prodcuts was exempted from Tax and simultaneously you were not allowed ITC, hence i

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uilt taxes in my cost for which I can't take input( as section 18 says if exempted goods become taxable than also input can be taken only when invoice is not older than 12 months). That's the reason i m calling it double taxation on that w d v value
please also note that in case of vehicle under HSN code 8703 Govt has given a provision that if we any person sold such capital goods and not taken any input credit than he has to pay tax only if he is selling that capital goods for more than w d v value.
so my query is whether above provision is applicable for all capital goods (where input is not taken) or not.
Reply By VaibhavKumar Jain:
The Reply:
The query may be explained through below example –
Cost of capital goods say ₹ 1000/

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₹ 162/- (i.e. being the higher of ₹ 144/-). And the net GST liability shall be Rs. 18/- after utilizing ITC of ₹ 144/-.
Reply By Vinod Maheswari:
The Reply:
Dear Mr. Vaibhav
In case if I am supplying it after 1 Year (12Months) then its ok I can take input credit as per section 18 1(d) read with section 18(2). but what if I am supplying such capital goods after 15 months or after 60 months.
As per section 18 1(d) I can avail input credit on capital goods which first used in exempted supply but late on when I want to sold it, it become taxable supply as per section 7. but section 18 (2) restrict to take such input if only Invoice are only 12 months old so if I am selling such capital goods after more than 12 months then

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Input availed but not utilised
Query (Issue) Started By: – Vinod Daga Dated:- 26-9-2018 Last Reply Date:- 26-10-2018 Goods and Services Tax – GST
Got 3 Replies
GST
I have availed IGST Input Credit of ₹ 500000 in August 2017 . out of this I have used IGST credit of ₹ 200000. Now in January 18 I came to know that ₹ 300000 credit was wrongly availed. Now my question is
if I am reversing IGST Credit by my self than I have to pay Interest or not . Please quote the Section or rules in your answer.
I have read section 73,74, section 42, 43 in which they say that interest is payable on wrongly availed input but all these section define regarding time when offence in come notice of department/System.
So Please clari

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the period for which the tax or any part thereof remains unpaid, pay, on his own, interest at such rate, not exceeding eighteen per cent., as may be notified by the Government on the recommendations of the Council.
(2) The interest under sub-section (1) shall be calculated, in such manner as may be prescribed, from the day succeeding the day on which such tax was due to be paid.
(3) A taxable person who makes an undue or excess claim of input tax credit under sub-section (10) of section 42 or undue or excess reduction in output tax liability under sub-section (10) of section 43, shall pay interest on such undue or excess claim or on such undue or excess reduction, as the case may be, at such rate not exceeding twenty-four per cent., as m

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REFUND OF CREDIT LEDGER CLAIM DUE TO INVERTED DUTY STRUCTURE
Query (Issue) Started By: – SAFETAB LIFESCIENCE Dated:- 26-9-2018 Last Reply Date:- 1-11-2018 Goods and Services Tax – GST
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GST
Dear Experts,
We have applied and refund received of ITC availed/accumulated in Electronic Credit Ledger for the periods
of Aug-2017, Sep-2017, Nov-2017 and Dec-2017 in Feb/March, 2018.
Now, GST officials informed us that the refund received by us against INPUT SERVICES is not elgible for refund as per Notification No. 26/2018 dt. 13.06.2018 retrospectively effect from 01.07.2017.
Is it true. What does 26/2018 says ???
Reply By Adarsh Gupta:
The Reply:
Yes, it is not allowed. This has been challenged in Gujrat High court..y

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GST – ITC CREDIT – NEW RULES ANY
Query (Issue) Started By: – SAFETAB LIFESCIENCE Dated:- 26-9-2018 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
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GST
Dear Experts,
Is there any new rule come in GST, stating that we can take ITC credit only for the bills seen in GSTR-2A
with effect from 01.10.2018….
Reply By Yash Jain:
The Reply:
Dear Sir,
Yes, but from 01.01.2019 effectively
In new form input from 2A would be auto populated.
Infosys is designing new forms.
This is also there at present if we interpretate sec 16 of GST act, which states the said.
In case supplier has not filed return, then inform him to upload invoice online till filing of return.
This is also known as system of invoice locki

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are available in GSTR-2A. Whether it is implemented or not. Some of our friends are telling that it is going to be implemented from 01.10.2018. Is it true or not. Any other date specified.
Reply By Praveen Nair:
The Reply:
To answer your question I would it is not Notified that the GSTR-2A has been implemented, it can't be so logically since GSTR 2 return is not active yet. You can use GSTR 2A to reconcile your books for ITC credit taken by you in GSTR-3B so that there are no last moment surprises of mismatch once GSTR 2 returns is in notified.
GSTR 2 return will accumulate all credits passed on in GSTR-2A and also has options to add missing invoices.
Reply By LDRaj &CO:
The Reply:
Dear Sir
In the new simplified form of return fi

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Solar Power Systems: 5% GST Rate for Inverters, Controllers, Batteries, and Panels per Notification No. 01/2017, Schedule-I.
Case-Laws
GST
Supply of solar inverter, controller, battery and panels would covered under “Solar Power Generating System” as a whole in terms of serial no. 234 of Schedule-I of the Notification No. 01/2017 -Central Tax (Rate) – applicable rate of GST on such supply will be 5% IGST [2.5% CGST + 2.5% SGST]
TMI Updates – Highlights, quick notes, marquee, ann

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In Re: Nagarjuna Agro Chemicals Private Limited
GST
2018 (12) TMI 1276 – APPELLATE AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – 2019 (21) G. S. T. L. 368 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – AAAR
Dated:- 26-9-2018
AAAR/03/2018 (A. R. )
GST
SHRI V. ANIL KUMAR AND BANKEY BEHARI AGARWAL MEMBER
A.R. Appeal -No. AAAR/03/2018
Dated: 26 September, 2018
ORDER-IN-APPEAL NO. AAAR/03/2018 (A.R.)
(Passed by Telangana State Appellate Authority for Advance Ruling under Section 101 (1) of the Telangana Goods and Services Tax Act, 2017)
Preamble
In terms of Section 102 of the Telangana Goods & Services Tax Act, 2017 (“the Act”, in short), this Order may be amended by the Appellate authority so as to rectify any error apparent on the face of the record, if such error is noticed by the Appellate authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer or the applicant

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e appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made.
*******
1. The subject appeal has been filed under Section 100(1) of the Telangana Goods and Services Tax Act, 2017 (hereinafter referred to as “TGST Act, 2017” or “the Act”, in short) by M/s. Nagarjuna Agro Chemicals Pvt. Ltd., 6-3-1219/24, Flat No.302, 3rd Floor, Ujwal Bhavishya Complex, Kundanbagh, Hyderabad – 500 016 having GSTIN 36AABCN5531F1ZP (“M/S. NACPL” / “the appellant”). The appeal is directed against the TSAAR Order No.3/2018 dated 30-05-2018 = 2018 (6) TMI 465 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA passed by the Telangana State Authority for Advance Ruling (Goods and Services Tax) (“Adv. Ruling Authority” / “lower Authority”) in respect of an application for Advance Rul

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om the date of communication thereof to the applicant. The impugned Order dated 30-5-2018 was received by the appellant on 02.06.2018 as mentioned in their Appeal Form GST ARA-02 and they have filed the appeal on 21-06-2018 i.e., within the prescribed time-limit.
II. Brief Facts:
4.1. The appellant had initially filed an application for Advance Ruling in the prescribed Form GST ARA-01 before the Adv. Ruling Authority on the question with regard to the classification, rate of tax and applicability of exemption Notification-entry, as cited above, in respect of the goods “Agricultural Soil Testing Minilab” (also referred to as “Mridaparikshak Minilab”) and its “Refilling Reagents” – hereinafter referred to colly. as “impugned goods”; and separately as “Mridaparikshak”/”Minilab” and “Refilling reagents” respectively. The appellants had stated that the impugned goods were used for determining / verifying soil health in terms of the parameters i.e., soil pH, Electrical Conductivity, Organi

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nature and usage etc. of the impugned goods and the applicable Chapter Notes / General rules for interpretation of the First Schedule to the Customs Tariff Act, 19752 (hereinafter referred to as “the Tariff”) and HSN (Harmonised System of Nomenclature) Notes; arrived at the conclusion that the impugned goods were classifiable under Heading 9027 of the Tariff and pronounced the Advance Ruling accordingly, as reproduced earlier. In essence, the Adv. Ruling Authority rejected the appellants' claims for (i) classification of the impugned goods under Heading 8201 and (ii) exemption thereof under the Notification-entry cited above.
IV: Appeal filed by the Appellant :
5. Against the said Advance ruling Order, the appellant filed the present appeal, inter-alia, on the following grounds:
(i) The Authority failed to appreciate their submissions especially that the product is exclusively meant for Soil Testing which squarely falls under “Agricultural implements of kind used in Agriculture”. H

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Central Tax). After hearing the Advocate explaining his case for some time, it appeared to this Appellate Authority that the nature, functioning etc., of the impugned goods can be better understood / appreciated on the basis of details / explanation given by a proper technical person of the company. The hearing was accordingly adjourned.
6.2. At the next hearing held on 17-9-2018, Sri T.S.R. Murthy, Senior Research Officer (Technical person) of the company appeared, apart from the representatives of the appellant and Department, mentioned above. Both the parties filed written submissions; the appellants also submitted copies of certain documents viz., a leaflet of the item “Mridaparikshak”, Operation manual/Working Protocol for “Mridaparikshak-Minilab”, Soil Health Card apart from a compilation of case-laws relied upon by them.
6.3. Sri T.S.R. Murthy, the technical person explained the various aspects pertaining to the impugned goods including the nature, composition, functionality,

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he kind shown on page 30 of the appeal booklet. During discussions, he explained that the entire Minilab put together, is basically a system for soil analysis, which analyses / measures, and reports (by way of a printout called the Soil Health Card) various soil parameters which are listed on the main item itself. These are as under :
“Soil Parameters:
pH, EC, Organic Carbon Available Nitrogen
Available Phosphorus
Available Potassium
Available Zinc
Available Sulphur
Available Iron
Available Boron
Available Cu
Available Mn
Lime Requirement
Gypsum Requirement
Calcareous”
(b) On further query from the Bench regarding the exact methodology, Sri Murthy explained that usually there are some prior processes required to be completed before the soil sample is placed for analysis by this Minilab. These processes are called quartering, sieving, etc., which are essentially in the nature of filtering fine / finer particles of soil to bring it to a mesh-size which can be analysed by th

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ench, he explained that some parameters such as pH, EC (Electrical Conductivity) and OC (Organic Carbon) are directly measured by the system whereas some others for example “Available Nitrogen” are thereafter internally calculated based on in-built logic/software. For example, the value of the parameter “Available nitrogen” is calculated on the basis of the measured “Organic Carbon”. He explained that the details in this regard are given in the manual filed by them. With this, the technical person concluded his deposition.
(d) The Counsel mentioned that though it is true that the item “Mridaparikshak” is measuring various parameters of the soil and in fact the name itself i.e, Mridaparikshak means 'tester of soil', but the fact remains that the item is working on soil, that the item is used for farmer, that the item is used for agriculture, and that therefore going by the end-use test it should be classified in Chapter 82 as 'Agriculture tools'. He also referred to the case laws which

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phrase used therein namely “all other tools of a kind used for agricultural purpose”. He had nothing more to add.
(f) From Department side, Sri Jay G. Waghmare, Assistant Commissioner, stated that the system Minilab which is the subject of dispute here, admittedly carries out a process of chemical analysis, therefore is rightly classifiable in Heading 90.27. He further mentioned that the Heading 8201 which is claimed by the appellants applies only to hand tools of the kind mentioned therein whereas the system in question is not a hand tool inasmuch as it admittedly uses power and in fact also contains a Hot plate (the heating element in the photograph shown to us earlier by Sri Murthy). (At this point, Sri Murthy clarified that the system can be run either on power or on battery or by using solar power). He had nothing further to add.
VI. Discussion, Findings and Determination of the Appeal:
7. We have carefully considered the submissions on both sides as well as the material avail

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gned Order?
9. In order to determine the aforesaid questions, first the nature, usage etc. of the goods involved (hereinafter also referred to as “impugned goods”) are to be considered, followed by the relevant Tariff entries and statutory provisions etc.; and thereafter, the applicability or otherwise of the exemption-Notification entry to the impugned goods. [Applicability/otherwise of the case-laws cited by appellant is dealt at appropriate places in the course of our discussion & findings].
10. Details regarding the description, nature, functionality, usage etc. of the impugned goods are as available in the detailed record of personal hearing reproduced above [read with the Operation Manual / Working Protocol submitted by the appellants] and hence not reiterated again. From the same, we find as under:
(i) Mridaparikshak is an electronic instrument used for determining various soil parameters i.e. soil pH (roughly termed as power of hydrogen ions)3, EC (Electrical Conductivity),

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ter is displayed on the display panel of the main item Mridaparikshak and also by way of printout called Soil Health Card. The parameters such as soil pH, EC and OC are directly measured by the system/instrument whereas others such as Available Nitrogen are internally calculated by the instrument based on in-built logic/software, on the basis of any of the directly measured parameter. Based on the values of soil parameters, the system gives crop / soil specific recommendation in terms of fertilisers/nutrients needed.
(iii) The Reagents are chemicals/chemical substances supplied in bottles, but the nature i.e, chemical composition of these have not been furnished by the appellants either in their initial AR application or in the subsequent proceedings; during the personal hearing before us, it was claimed that the same is a secret, however, these are identified with assigned description as Reagent I to Reagent 42 on the labels affixed to the reagent bottles. As further explained during

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b as such (and not merely for the Mridaparikshak instrument) even though mentioning that the said Minilab comprises the main electronic instrument Mridaparikshak and also other items/accessories, which are supplied together (including the Reagents in the first supply). The Department / jurisdictional officers have also not raised any dispute as regards whether the supply of Minilab constitutes a composite supply or mixed supply. The Adv. Ruling Authority has determined the single classification under Heading 9027 for the Agricultural Soil testing Minilab as such and not merely for the main item/instrument.
11.3. Thus, we find that proceedings before the lower Authority were on the basis of an un-disputed and un-contradicted position (though not expressly mentioned/recorded so) that the supply of Minilab has been considered as a single supply for which classification was sought and determined on the basis of the nature/usage of the main instrument only and consequently treating the rem

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a set of Reagents and (2) the Refill Reagents subsequently supplied; in terms of the questions framed by us earlier.
12.1. As mentioned earlier, classification of goods for GST-purposes, is based upon the entries in the First Schedule to the Customs Tariff Act, 1975; including the Chapter / Section Notes therein, Rules for Interpretation thereof and General Explanatory Notes. The relevant entries pertaining to the two competing entries in the appeal i.e, Heading 8201 claimed by appellant and Heading 9027 as per the lower Authority's ruling, merit a reference. The same read as follows:
“SECTION XV
BASE METALS AND ARTICLES OF BASE METAL
Notes :
1. This Section does not cover :
……………………
(i) instruments or apparatus of Section XVIII5, including clock or watch springs;
……………………
Chapter 82
Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal
Notes :
1. Apart from blow lamps, portable forges, grinding wheels with

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and shovels
kg.
8201 30 00
–
Mattocks, picks, hoes and rakes
kg.
8201 40 00
–
Axes, bill hooks and similar hewing tools
kg.
8201 50 00
–
Secateurs and similar one-handed pruners and shears (including poultry shears)
kg.
8201 60 00
–
Hedge shears, two-handed pruning shears and similar two-handed shears
kg.
8201 90 00
–
Other hand tools of a kind used in agriculture, horticulture or forestry
kg.
SECTION XVIII
OPTICAL, PHOTOGRAPHIC, CINEMATOGRAPHIC, MEASURING, CHECKING, PRECISION,
MEDICAL OR SURGICAL INSTRUMENTS AND APPARATUS; CLOCKS AND WATCHES; MUSICAL INSTRUMENTS;
PARTS AND ACCESSORIES THEREOF
Chapter 90
Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof
Notes :
1. This Chapter does not cover :
……………
2. Subject to Note 1 above, parts and accessories for machines, apparatus, instruments or articles of this Chapter are to be classified according to th

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uring or checking quantities of heat, sound or light (including exposure meters); microtomes
 
9027 10 00
–
Gas or smoke analysis apparatus
u
9027 20 00
–
Chromatographs and electrophoresis instruments
u
9027 30
–
Spectrometers, spectrophotometers and spectrographs using optical radiations (UV, visible, IR) :
 
9027 30 10

Spectrometers
u
9027 30 20

Spectrophotometers
u
9027 30 90

Other
u
9027 50
–
Other instruments and apparatus using optical radiations (UV, visible, IR) :
 
9027 50 10

Photometers
u
9027 50 20

Refractometers
u
9027 50 30

Polarimeters
u
9027 50 90

Other
u
9027 80
–
Other instruments and apparatus:
 
9027 80 10

Viscometers
u
9027 80 20

Calorimeters
u
9027 80 30

Instruments and apparatus for measuring the surface or interfocial tension of liquids
u
9027 80 40

Nuclear magnetic resonance instruments
u
9027 80 90

Other
u
9027 90
–
Microtomes; parts and accessories :

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provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by viltue of this rule), presented unassembled or disassembled.
(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to principles of rule 3.
3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
(a) The heading wh

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ion.
4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin”.
[Rules 5, 6, General Notes and Additional Notes are not reproduced since not relevant]
13.1. First, we deal with classification of the Mridaparikshak Minilab. On considering the nature, functions, usage etc. of the said Minilab vis-d-vis Heading 8201 claimed by appellant, the following position emerges:
(i) Heading 8201 covers goods which are Hand-tools, of the types specifically enumerated thereunder i.e, 'Spades' to 'Timber-wedges' and “other tools of a kind used in agriculture, horticulture or forestry”. Admittedly and undisputedly, the Minilab does not fall under any of the specific enumerated items 'Spades' to 'Timber-wedges'.
(ii) The appellants' claim is that they fall under the phrase “other tools of a kind used in agriculture”, appearing in the Heading.
13.2. We find the above claim to be untenable, for t

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of the proviso to the notification would show that by resorting not only to the process of bleaching, dyeing, printing, shrink proofing, tentering, heat-setting, crease-resistant processing, but also to “any other process or any two or more of these processes”, the respondent would lose the benefit of the exemption. It is a well established principle that general terms following particular expressions take their colour and meaning as that of the preceding expressions, applying the principle of ejusdem generis rule, therefore, in construing the words “or any other process”, the import of the specific expressions will have to be kept in mind. It follows that the words “or any other process” would have to be understood in the same sense in which the process, including tentering, would be understood. Thus understood, a process akin to stentering/tentering would fall within the meaning of the proviso and, consequently, the benefit of the notification cannot be availed by the respondent.
Sh

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crease-resistant processing, specifically mentioned in the note.
Grasim Industries Ltd.
“10.In the background of what has been urged by the assessee it has to be further seen whether the principles of ejusdem generis have application. The rule is applicable when particular words pertaining to a class, category or genus are followed by general words. In such a case the general words are construed as limited to things of the same kind as those specified. The rule reflects an attempt to reconcile incompatibility between the specific and general words in view of the other rules of interpretation that all words in a statute are given effect if possible, that a statute is to be construed as a whole and that no words in a statute are presumed to be superfluous. The rule applies only when (1) the statute enumerates the specific words, (2) the subjects of enumeration constitute a class or category, (3) that class or category is not exhausted by the enumeration, (4) the general terms follow

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there being no further residual entry. Thus, it is clear that legislative intent is that only goods of the genus 'hand tools' are covered in the phrase “other tools of a kind…”, in particular and in the Heading 8201 in general.
(iii) In view of the above, the phrase “other tools of a kind…” appearing in Heading 8201 would not cover any goods other than hand tools. More pertinently, it would not cover the Mridaparikshak instrument / Minilab in question, which is admittedly an electronic instrument operated on electricity / battery /solar power, and is not even remotely in the nature of the various hand tools listed in the entry 8201.
14.1. The appellants had laid much emphasis on the aspect that the Minilab was used exclusively for agricultural purpose and hence to be classified under Heading 8201 as 'tools of a kind used in agriculture'. This reason, can have no bearing nor relevance in the given context where the classification under Heading 8201 is to be governed only by the r

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ntries in the Tariff, such as those above, as redundant. Clearly, such interpretation is impermissible.
15. In view of the above, we hold that the goods i.,e the Mridaparikshak Instrument / the Minilab are not classifiable under Heading 8201 as claimed by the appellants.
16.1. Coming to the question of classification of the Minilab under Heading 9027 as held by the Adv. Ruling Authority, we find as follows:
(i) Description against Heading 9027 reads as follows:
“Instruments and apparatus for physical or chemical analysis (for example, polarimeters, refractometers, spectrometers, gas or smoke analysis apparatus); instruments and apparatus for measuring or checking viscosity, porosity, expansion, surface tension or the like; instruments and apparatus for measuring or checking quantities of heat, sound or light (including exposure meters); microtomes”.
(ii) The instruments / apparatus mentioned in the above description do not specifically include those used for either 'soil testing'

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y methods for available P, neutral 1 N ammonium acetate method of available K, DTPA extraction method for available Fe and Zn, and hot water soluble method for available B”.
(iv) The Manual further provides a detailed description as to the method and manner of usage of the instrument as also the various accessories, Reagents etc., for the purposes of testing the soil-samples; along with specific parameter-wise description of the procedures to be undertaken etc., which are all in the nature of chemical analysis of the samples to discern / determine the desired parameters. In fact, at various places, the Manual-description refers to and mentions the processes / procedures undertaken as “analysis”; some excerpts being as under:
(i) “Most Important: It may be noted by the user that for the analysis of Organic C, Available P, K, S, Zn, Fe, Mn, Cu, and B, the instrument has to be set at zero level with distilled water… This has to be separately done before every analysts”7
(ii) “1) Pl

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mical analysis” and hence rightly classifiable under Heading 9027.
17.1. The appellant's contentions against the classification of the Minilab under Heading 9027 as stated in their grounds of appeal, are that 'these are not instruments for checking quantities of heat, sound or light as treated by the Adv. Ruling authority' and further that 'it is neither a chemical or measuring equipment'. And during the hearing before us, it was contended that Heading 9027 is not applicable since it does not contain the phrase “soil-testing”.
17.2. We do not find merit in the above contentions. The mere non-appearance of phrase 'soil testing' in Heading 9027 is of no relevance. As per the clearly evident elements detailed above, the impugned Minilab is admittedly an instrument for scientific (physical / chemical) analysis of the soil. As such, it remains specifically covered in the Heading 9027, which applies to instruments or apparatus for physical / chemical analysis. In fact, during the hearing b

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, the Mridaparikshak instrument / Minilab falls within the specific phrase “instruments for physical or chemical analysis” used in Heading 9027. Hence, we find that this classification would be applicable under the primary criterion 'according to the terms of Headings' vide Rule I of the Interpretative Rules, mentioned earlier.
18.3. Notwithstanding the above, we find that Heading 9027 in the Tariff mentions the names of only some such instruments for physical / chemical analysis illustratively, as referred earlier. As such, the Adv. Ruling Authority was right in referring to the HSN Notes and in arriving at the conclusion basing on the specific mention therein of pH meter, Wet Chemical Analyser; which are used for the similar functions of measuring / determining the pH factor, inorganic / organic components etc., as done by the impugned Mridaparikshak / Minilab. It is a well-settled legal proposition that where the Tariff-Schedule is based upon and structured on the same pattern as t

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rect and tenable.
19. Inasmuch as the Mridaparikshak / Minilab is found to be classifiable under Heading 9027, the plea of appellants for classifying them under Heading 8201 remains further negated by Note I (h) to Section XV which precludes instruments/apparatus of Section XVIII (under which Chapter 90 falls) from being classified under Section XV, which includes Chapter 82.
20. In view of the above discussion, the first question for our determination is answered by holding that the goods viz., Mridaparikshak-MiniIab is rightly classifiable under Heading 9027 of the Tariff as held by the Adv. Ruling Authority and not under Heading 8201 as claimed by the appellant.
21.1. The next issue is the classification of Refill Reagents, which are admittedly chemicals / chemical substances – the composition of which is not disclosed by the appellants claiming the same to be a secret – and which are described only as 'Reagent 1' onwards to 'Reagent 42'. In the Operation Manual / Working Protoco

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Reagents under Heading 9027 – as held by the lower Authority – is concerned, we find as follows. The lower Authority's reasoning and findings are that Refilling Reagents are part of Soil Testing Minilab; hence, parts and accessories identifiable as being solely or principally for use with instruments / apparatus of Heading 9027 are also to be classified under Heading 9027. This is apparently by applying Note 2 (b) to Chapter 90 supra, though not expressly stated so in the impugned order.
23.2. The appellants have, either in the grounds of appeal or further submissions, not disputed either the finding of the lower Authority that the Refill Reagents are solely or principally for use with the Mridaparikshak Minilab falling under Heading 9027 nor as to the application of Note 2 (b) of Chapter 90, for determining the classification. As such and on this count alone, the decision in the impugned Order classifying the Refill Reagents under Heading 9027 merits to be upheld.
23.3. Notwithstand

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es (a) to (c), for classification of parts and accessories of the instruments/apparatus falling under the Chapter. Clause (a) is not applicable to Refill reagents, since these are not goods which by description / nature etc., fall under Chapters 84, 85, 90 or 91. Clause (b) speaks of parts and accessories, suitable for use solely or principally with a particular kind of machine.
(iv) The Refill reagents cannot fall to be considered as 'parts' of the Mridaparikshak instrument. However, the term 'accessory' has the meaning as “a person or thing that aids subordinately; an adjunct; appurtenance; accompaniment '12; “an object or device that is not essential in itself but that adds to the beauty, convenience or effectiveness of something else'; supplementary or secondary to something of greater or primary importance', 'additional' 13.
(v) The question arises whether the Refill Reagents being chemicals used / consumed in the procedures / tests conducted for soil-testing / analysis can be c

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) Ratio of the above decisions squarely applies in respect of the Refill Reagents in the instant case. The Refill Reagents, without which, as it appears in the given facts of the case, the Minilab cannot be used / put to function by the customers for conducting the required chemical analysis, falls to be considered as an accessory to the Minilab. Thus, it is evident in the facts of the case that the Refill Reagents are suitable for use solely and principally with the Mridaparikshak Minilab, rather it is the only use and none otherwise. Hence, classification of Refill Reagents would be squarely covered in terms of Note 2(b) to Chapter 90. The residuary clause (c) of Note 2 is therefore not relevant.
24. In view of the above, with regard to the second question for our determination, we hold that the Adv. Ruling Authority's decision of classifying Refill Reagents under Heading 9027 is correct and merits to be upheld.
25.1. The next question for determination is whether the exemption ent

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n mentioned i.e, “agricultural implements..”. In other words, the exemption is applicable to a sub-set from out of the broad category of “Hand tools…” covered in Heading 8201. Since the impugned goods do not fall in the Heading itself, the exemption given in respect of a part of the Heading would not be applicable to them.
25.3. The phrase “agricultural implements” is not defined in the Notification or the Act. However, in the given context of the Notification-entry mentioning a specific Tariff Heading against the description, the said phrase cannot have an extended / extrapolated meaning to cover any/all goods which do not fall under the said Heading itself, such as the impugned goods.
26. Accordingly, w.r.t. the third question for our determination we hold that the impugned goods are not covered by the entry SI.No. 137 in the exemption Notification as claimed by the appellant.
27.1. The appellant has cited various case laws in their grounds of appeal / further submissions; the b

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indayya Setty And Sons
Hon'ble High Court of Andhra Pradesh
Whether “vermicelli” popularly called “shevaya” is “maida” falling within entry 60 of First Schedule to the Andhra Pradesh General Sales Tax Act, 1957.
5.
Jaya Food Industries Pvt Ltd vs Commercial Tax Officer, Nampally Circle, Hyderabad = 1987 (8) TMI 439 – ANDHRA PRADESH HIGH COURT
Hon'ble High Court of Andhra Pradesh
Whether vermicelli manufactured and sold under the trade name “Bambino vermicelli” falls under entry 129A of the First Schedule to the Andhra Pradesh General Sales Tax Act, 1957.
6.
Godrej Agrovet Ltd vs Addl. Commissioner of Commercial Taxes, Bangalore 2011 (39) VST 20 Karn. = 2010 (8) TMI 852 – KARNATAKA HIGH COURT
Hon'ble Court Karnataka High of
Whether Di-calcium Phosphate is an Animal feed supplement and chargeable to Nil rate of tax under the First Schedule to the Act or liable to tax under Third Schedule.
7.
Vijay Ganesh Mill Stores, Vijayawada vs State of Andhra Pradesh
Hon'ble Sales Tax Ap

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biguity, the view favourable to the assessee is to be preferred'; 'that among different applicable entries the lower rate of tax has to be applied'; 'that the end-user test has to be considered for classification'. However, we find that the above principles were applied in the situations involving an ambiguity / doubt as to the classification / eligibility for exemption vis-d-vis the statutory provisions / entries. In the instant case, as per our discussions and findings detailed above, the coverage of the impugned goods under Heading 9027 and the non-applicability of Heading 8201 as per the Tariff-entry as also the non-eligibility to the exemption-entry, are clear, unambiguous and without any scope for doubt. Hence, in our view, the aforesaid principles are not applicable to the present case.
(iv) We may further mention that it is well-settled legal position that precedent decisions can have application / binding value only in respect of identical (and not merely similar) set of fact

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aving Dock co. Ltd. v. Horton (1951 AC 737 at p. 761), Lord Mac Dermot observed :
“The matter cannot, of course, be settled merely by treating the ipsissima vertra of Willes, J as though they were part of an Act of Parliament and applying the rules of interpretation appropriate thereto. This is not to detract from the great weight to be given to the language actually used by that most distinguished judge.”
12. In Home Office v. Dorset Yacht co. [1970 (2) All ER 294] Lord Reid said, “Lord Atkin's speech is not to be treated as if it was a statute definition. It will require qualification in new circumstances.” Megarry, J in (1971) 1 WLR 1062 observed:
“One must not, of course, construe even a reserved judgment of Russell L.J. as if it were an Act of Parliament.” And, in Herrington v. British Railways Board [1972 (2) WLR 537] Lord Morris said :
“There is always peril in treating the words of a speech or judgment as though they are words in a legislative enactment, and it is to be

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es else you will find yourself lost in thickets and branches. My plea is to keep the path to justice clear of obstructions which could impede it.”
28. In view of the above, we find that none of the case laws cited by the appellant are applicable to the matter on hand.
29. In sum and having regard to the above discussions and findings, we hold that the impugned goods are correctly classifiable under Heading 9027 of the Tariff; they are not classifiable under Heading 8201 ibid. Further the impugned goods are not eligible for the exemption vide entry Sl.No. 137 of the Notification No. 2/2017- Central Tax (Rate) dated 28-6-201 7. The appellants have not made out any case for interference with the Adv. Ruling Authority's ruling as above, which therefore merits to be upheld.
30. Accordingly, we pass the following
ORDER
The Advance Ruling pronounced vide TSAAR Order No. 02/2018 dated 30-052018 = 2018 (6) TMI 465 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA passed by the Telangana S

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5. Explanation (iv) further provides for application of the relevant Section / Chapter Notes, Rules for Interpretation of the Schedule and General Explanatory Notes for interpretation of the Notification. The Notification No.2/2017-Central Tax (Rate) dated 28-6-2017 is an exemption Notification also containing similar references /Explanation for application of the Customs Tariff for interpreting the entries therein.
3. Soil pH is a measure of the acidity or basicity (alkalinity) of a soil. pH is defined as the negative longrithm (base 10) of the activity of hydronium ions (H+) or, more precisely, H3O+aq) in a solution. Source: en.wikipedia.org.
4. As detailed in the Operations Manual / Working Protocol submitted by the appellant.
5. Chapter 90 containing the competing entry Heading 9027, falls under Section XVIII.
6. Second para under “Introduction” on page 3 of the Manual.
7. Page 20 of the Manual under the heading “3. Organic Carbon”.
8. Page 33 of the Manual under the heading

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In Re: M/s. Prism Hospitality Services (P) Ltd.
GST
2018 (12) TMI 1088 – AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – 2019 (21) G. S. T. L. 289 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – AAR
Dated:- 26-9-2018
TSAAR Order No. 12/2018 A. R. Com/16/2018
GST
SRI J. LAXMINARAYANA AND SRI V. SRINIVAS, MEMBER
Under Section 100(1) of the CGST/TGST Act, 2017, any person aggrieved by this order can prefer an appeal before the Telangana State Appellate Authority for Advance Ruling, Hyderabad, within 30 days from the date of receipt of this Order.
*****
M/s. Prism Hospitality Services (P) Ltd , 22/A, Mini Industrial estate, Hafeezpet, Miyapur, Hyderabad-500049 registered under GSTIN No. 36AADCP6610K1ZC has filed an application in Form GST ARA-01under Section 97(1) of TGST Act,2017 read with Rule 103 of CGST/TGST Rules, seeking Advance Ruling on the issues raised in their application.
2. The applicant has stated that they are registered u

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o the trainees in the premises, where the trainees attend a residential programme and there are rooms for stay in the premises for the trainees.
3. The applicant operates student mess for students in Engineering Colleges(Higher Education) such as CVR College, and so on. The food is prepared and served in the hostel premises.
4. a) In the Educational Institutions the applicant in some institutions also operate the canteen for the day scholar students and staff wherein food is prepared in the canteen and sold for consumption by the students/staff.
b) In the so called student/staff canteen, certain bought out items like Ice Creams/Soft Drinks/Biscuit packets etc wherein the Maximum Retail price is printed on the item is also sold for consumption by the students/staff.
5. The applicant also has a kitchen in Miyapur, where food is prepared and transported to some software companies where it is again “sold” to the company employees in the dining Hall. The software companies do not have

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peration/ food sales in Hospitals for patients and visitors/Campsite etc., and also stated that outdoor catering in normal practice is catering for a particular event for a particular time or times for an event/function or occasion, wherein a firm order is given by an individual or organization for service of food for a certain amount of persons at a certain place for certain time or times. It's a specific order and not a repetitive and continuous order/s. Last but not the least the applicant entity serves or undertakes the sale/service of food on a regular daily basis and not on exclusive, special events. The food promoted by the applicant is of a working nature such as working lunch etc by saving time of the employee and increase productivity whereas the menu served for the outdoor Catering in almost all the cases is of a superior nature befitting the event such as a wedding/party/conference.
The case is posted on 05-07-2018 at 12.00 noon, Sri A.M Krishna Authorised representative o

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served in the hostel premises.
iv. a). In the Educational Institutions the applicant in some institutions also operate the canteen for the day scholar students and staff wherein food is prepared in the canteen and sold for consumption by the students/staff.
b) In the so called student/staff canteen, certain bought out items like lce Creams/Soft Drinks/Biscuit packets etc wherein the Maximum Retail price is printed on the item is also sold for consumption by the students/staff.
v. The applicant also has a kitchen in Miyapur, where food is prepared and transported to some software companies where it is again sold” to the company employees in the dining Hall. The software companies do not have kitchens because of safety reasons, but however, they have dining hall facilities. The Dining Hall/cafeteria runs on a daily basis. A separate food license is obtained by us for selling the food in this organisation issued by GHMC.
vi. The applicant entity also provides Transport services to

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drink, provided by a restaurant, eating joint including mess, canteen, whether for consumption on or away from the premises where such food or any other article for human consumption or drink is supplied, other than those located in the premises of hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes having declared tariff of any unit of accommodation of seven thousand five hundred rupees and above per unit per day or equivalent.
Explanation 1.- This item includes such supply at a canteen, mess, cafeteria or dining space of an institution such as a school, college, hospital, industrial unit, office, by such institution or by any other person based on a contractual arrangement with such institution for such supply, provided that such supply is not event based or occasional.
2.5
Provided that credit of input tax charged on goods and services used in supplying the service has not been taken [Please refer to Explanation no.

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ed by a mess or canteen is taxable at 5% without Input Tax Credit [Serial No. 7(i) of notification No. 11/2017-CT (Rate) as amended vide notification No. 46/2017-CT (Rate) dated 14.11.2017 refers]. It is immaterial whether the service is provided by the educational institution itself or the institution outsources the activity to an outside contractor.
10. Regarding the point raised at Sl No (6) of the application, the applicant in addition to the supply of food, is also undertaking transportation of food from the place of preparation of food to the premises where it is served. Here the applicant is undertaking two supplies, one is supply of food and another is transportation service. Two supplies are involved and it is a composite supply where the supply of food is a Principal Supply and providing transportation is ancillary supply.
11. Section 8. Of CGST Act provides that the tax liability on a composite or a mixed supply shall be determined in the following manner, namely:-
(a) a

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M/s K.K. Industries Versus Commissioner of Central GST, Noida
Central Excise
2018 (12) TMI 154 – CESTAT ALLAHABAD – TMI
CESTAT ALLAHABAD – AT
Dated:- 26-9-2018
APPEAL No. E/70545/2018-EX[DB] – FINAL ORDER NO-72630/2018
Central Excise
Smt. Archana Wadhwa, Member (Judicial) And Mr. Anil G. Shakkarwar, Member (Technical)
Shri Rajesh Chhibber, Advocate for Appellant
Shri Shiv Pratap Singh, Deputy Commissioner (AR), for Respondent
ORDER
Per: Anil G. Shakkarwar
The present appeal is directed against Order-in-Appeal No. NOIDA-EXCUS-001-APP-1773-17-18 dated 28/02/2018 passed by Commissioner of Central Excise (Appeals), Noida.
2. Brief facts of the case are that during the period from July, 2014 to June, 2016 appellant

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ferential duty by denying the said notification through show cause notice dated 06.01.2017 wherein a demand of Central Excise duty of Rs. 49,43,870/- was raised. The said show cause notice was adjudicated through Order-in-Original dated 28.03.2017. The appellant contended before the Original Authority that they were manufacturing Sewing Machine Heads which were supplied to the customers without any electric control or electric motor and that no provision was made by them in the head for fitting/attaching any motor and therefore, the goods manufactured by them were eligible for benefit of said notification. The Original Authority did not appreciate the said arguments and confirmed the demand and imposed equal penalty. Aggrieved by the said o

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e, only if the sewing machine is cleared in such a condition that it operated with electric motor then they were not eligible for benefit of the said notification.
4. Heard the learned A.R. who has supported the impugned order.
5. Having considered the rival contentions and on perusal of records and on careful examination of the entry in respect of which the said exemption was provided, we note that we understand from the wording of entry that if Sewing Machine are cleared in such a manner that they are not operated with electric motors then such Sewing Machines are cleared from the factory of manufacturer, thus they are eligible for the benefit of Notification No.1/2011-CE dated 01.03.2011 as amended by Notification No.8/2014-CE dated 11

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M/s. Citilights Properties P. Ltd. Versus Commissioner of GST & Central Excise Chennai North Commissionerate
Service Tax
2018 (11) TMI 1152 – CESTAT CHENNAI – 2019 (29) G. S. T. L. 355 (Tri. – Chennai)
CESTAT CHENNAI – AT
Dated:- 26-9-2018
Appeal No. ST/607 And 608/2012 – Final Order Nos. 42500-42501/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri S. Muthuvenkataraman, Advocate for the Appellant
Shri A. Cletus, ADC (AR) for the Respondent
ORDER
Per Bench
The issue involved in both the appeals being the same they are heard together and are disposed by this common order.
2. On intelligence that appellants are not paying service tax on construction services provided by them, the Survey, Intelligence and Research Wing of Service Tax Commissionerate, Chennai took up investigation. It was noticed that the appellant undertook following projects subject to the date of levy of service tax on constru

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ction charges received during the year 2004 – 05 and 2008 – 09 and also they had not paid appropriate tax on Pacifica Tech Park. Show cause notices were issued proposing to demand service tax on construction services along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand, interest and penalties. Hence these appeals.
3. On behalf of the appellant, Shri S. Muthuvenkataraman, ld. counsel appeared and argued the matter. He submitted that the period of dispute involved in these appeals is from October 2004 to March 2009. The amount involved is Rs. 18,92,79,888/- along with interest and penalties. He submitted that the appellant had entered into agreement for the construction of residential complex as a joint venture project with the owners of the land in lieu of their relinquishment of their UDS of the land in favour of the appellant. It was agreed to handover 42% of the constructed area as landowner share in lieu of relinquish

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prior to 1.6.2007 and therefore the demand cannot sustain. With regard to the demand after 1.6.2007, he submitted that the demand raised in the show cause notice and in the adjudication order is under construction of residential complex which cannot sustain after 1.6.2007 as per the decision of the Tribunal in the case of Real Value Promoters Ltd. Vs. CCE – 2018-TIOL-2867-CESTAT, Chennai.
4. The ld. AR Shri A. Cletus supported the findings in the impugned order.
5. After hearing both sides, it is brought to light that the period involved in the present case is from October 2004 to March 2009. The demand has been raised in the show cause notice under construction of residential complex services. The contracts 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 occasion to analyse the issue regarding demand of service tax

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on 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 ambit of levy of service tax only with effect from 1.

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rogate 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 that date.”
7.12 Thus, for example, while construction

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elf. 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 Section 65(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 respect of identical issue for the period from 2005 to

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ecuted 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 and not to composite works contracts. This is

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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 construction service'. It is already established in

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. 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 of the officers. However, the interest lia

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struction 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.”
6. Following the above decision, we are of the considered opinion that the demand of service tax under commercial or industrial constructi

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REGARDING DEPOSITS OF TDS BY THE DDO UNDER GST
Circular No. 1819049/705 Dated:- 26-9-2018 Uttar Pradesh SGST
GST – States
Enclosed Circular No. 65/39/2018-DOR
=============
Document 1
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मा
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e.
All Finance Secretaries/ CCTs of the States/ UTs with Legislature/UTs
without Legislature.
Chairman CBIC/All Principal Chief Commissioners/ Chief
Commissioners/ Principal Commissioners/ Commissioners of Central Tax
(through Member, GST, CBIC)
Pr.Chief Controller of Accounts, CBIC.
Madam/Sir,
Subject:
Guidelines for Deductions and Deposits of TDS by the DDO
under GST
Section 51 of the CGST Act 2017 provides for deduction of tax by the
Government Agencies (Deductor) or any other person to be notified in this
regard, from the payment made or credited to the supplier (Deductee) of taxable
goods or services or both, where the total value of such supply, under a contract,
exceeds two lakh and fifty thousand rupees. The amount deducted as tax under
this section shall be paid to the Government by deductor within ten days after
the end of the month in which such deduction is made alongwith a return in
FORM GSTR-7 giving the details of deductions and deductees. Further, the

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he date from which
GST was introduced. Government has recently notified that these provisions
shall come into force with effect from 1st October, 2018, vide Notification No.
50/2018 – Central Tax dated 13th September, 2018.
4.
For payment process of Tax Deduction at Source under GST two options
can be followed, which are as under:
Option I: Generation of challan for every payment made during the month
Option II: Bunching of TDS deducted from the bills on weekly, monthly or any
periodic manner
5. In order to give effect to the above options from 01.10.2018, a process
flow of deduction and deposit of TDS by the DDOs has been finalised in
consultation with CGA for guidance and implementation by Central and State
Government Authorities. The process flow for Option I and Option II are
described as under:
Option I – Individual Bill-wise Deduction and its Deposit by the DDO
6. In this option, the DDO will have to deduct as well as deposit the GST
TDS for each bill individuall

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ls of other
Ministries/Departments of GoI or of State Governments for
submission to the respective payment authorities.
(v)
In the Bill,
the net amount payable to the Contractor; and
(a)
(b)
2% as TDS
will be specified
(vi) In case of NEFT/RTGS mode, the DDO will have to mention the
CPIN Number (as beneficiary's account number), RBI (as
beneficiary) and the IFSC Code of RBI with the request to payment
authority to make payment in favour of RBI with these credentials.
(vii) In case of the OTC mode, the DDO will have to request the
payment authority to issue 'A' Category Government Cheque in
favour of one of the 25 authorized Banks. The Cheque may then be
deposited along with the CPIN with any of branch of the
authorized Bank so selected by the DDO.
(viii) Upon successful payment, a CIN will be generated by the
RBI/Authorized Bank and will be shared electronically with the
GSTN Portal. This will get credited in the electronic Cash Ledger
of the concerned DDO in the

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m the Suspense Head can be made
on a weekly, monthly or any other periodic basis.
9.
Following process shall be followed by the DDO in this regard:
(i) The DDO shall prepare the Bill based on the Expenditure Sanction.
The Expenditure Sanction shall contain the (a) Total amount, (b)
net amount payable to the Contractor/Supplier/Vendor and (c) the
2% TDS amount of GST.
(ii)
The DDO shall prepare the bill on PFMS (in case of Central Civil
Ministries of Gol), similar payment portals of other
Ministries/Departments of GoI or of State Governments for
submission to the respective payment authorities.
(iii) In the Bill, it will be specified
(a)
(b)
the net amount payable to the Contractor; and
2% as TDS
(iv) The TDS amount shall be mentioned in the Bill for booking in the
Suspense Head (8658 Suspense; 00.101 PAO Suspense; xx –
GST TDS)
(v)
–
–
The DDO will require to maintain the Record of the TDS so being
booked under the Suspense Head so that at the time of preparing

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ising
necessary checks.
(x)
In case of NEFT/RTGS mode, the DDO will have to mention the
CPIN Number (as beneficiary's account number), RBI (as
beneficiary) and the IFSC Code of RBI with the request to payment
authority to make payment in favour of RBI with these credentials.
(xi) In case of the OTC mode, the DDO will have to request the
payment authority to issue 'A' Category Government Cheque in
favour of one of the 25 authorized Banks. The Cheque may then be
deposited along with the CPIN with any of branch of the
authorized Bank so selected by the DDO.
(xii) Upon successful payment, a CIN will be generated by the
RBI/
Authorized Bank and will be shared electronically with the
GSTN Portal. This will get credited in the electronic Cash Ledger
of the
concerned DDO in the GSTN Portal. This can be viewed and
the details of CIN can be noted by the DDO anytime on GSTN
portal using his Login credentials.
(xiii) The DDO should maintain a Register as per proforma given in

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Guidelines for Deductions and Deposits of TDS by the DDO under GST
J.21011/2(i)/2018-TAX/Pt Dated:- 26-9-2018 Mizoram SGST
GST – States
No.J.21011/2(i)/2018-TAX/Pt
GOVERNMENT OF MIZORAM
TAXATION DEPARTMENT
CIRCULAR
Aizawl, the 26th Sept., 2018
Subject: Guidelines for Deductions and Deposits of TDS by the DDO under GST
Section 51 of the MGST Act 2017 provides for deduction of tax by the Government Agencies (Deductor) or any other person to be notified in this regard, from the payment made or credited to the supplier (Deductee) of taxable goods or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees. The amount deducted as tax under this section shall be paid to the Government by deductor within ten days after the end of the month in which such deduction is made along with a return in FORM GSTR-7 giving the details of deductions and deductees. Further, the deductor has to issue a certificate to the deductee me

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that these provisions shall come into force with effect from 1st October, 2018, vide Notification No.J.21011/1(ii)/2018-TAX/Pt : Dt.25.09.2018.
4. For payment process of Tax Deduction at Source under GST two options can be followed, which are as under:
Option I: Generation of challan for every payment made during the month
Option II: Bunching of TDS deducted from the bills on weekly, monthly or any periodic manner
5. In order to give effect to the above options from 01.10.2018, a process flow of deduction and deposit of TDS by the DDOs has been finalised in consultation with CGA for guidance and implementation by Central and State Government Authorities. The process flow for Option I and Option II are described as under:
Option I – Individual Bill-wise Deduction and its Deposit by the DDO
6. In this option, the DDO will have to deduct as well as deposit the GST TDS for each bill individually by generating a CPIN (Challan)and mentioning it in the Bill itself.
7. Following proces

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thorities.
(v) In the Bill,
(a) the net amount payable to the Contractor; and
(b) 2% as TDS will be specified
(vi) In case of NEFT/RTGS mode, the DDO will have to mention the CPIN Number (as beneficiary's account number), RBI (as beneficiary) and the IFSC Code of RBI with the request to payment authority to make payment in favour of RBI with these credentials.
(vii) In case of the OTC mode, the DDO will have to request the payment authority to issue 'A' Category Government Cheque in favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the CPIN with any of branch of the authorized Bank so selected by the DDO.
(viii) Upon successful payment, a CIN will be generated by the RBI/Authorized Bank and will be shared electronically with the GSTN Portal. This will get credited in the electronic Cash Ledger of the concerned DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his Login crede

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regard:
(i) The DDO shall prepare the Bill based on the Expenditure Sanction. The Expenditure Sanction shall contain the (a) Total amount, (b) net amount payable to the Contractor/Supplier/Vendor and (c) the 2% TDS amount of GST.
(ii) The DDO shall prepare the bill on PFMS (in case of Central Civil Ministries of GoI), similar payment portals of other Ministries/Departments of GoI or of State Governments for submission to the respective payment authorities.
(iii) In the Bill, it will be specified
(a) the net amount payable to the Contractor; and
(b) 2% as TDS
(iv) The TDS amount shall be mentioned in the Bill for booking in the Suspense Head (8658 – Suspense; 00.101 – PAO Suspense; xx – GST TDS)
(v) The DDO will require to maintain the Record of the TDS so being booked under the Suspense Head so that at the time of preparing the CPIN for making payment on weekly/monthly or any other periodic basis, the total amount could be easily worked out.
(vi) At any periodic interval, wh

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ode of RBI with the request to payment authority to make payment in favour of RBI with these credentials.
(xi) In case of the OTC mode, the DDO will have to request the payment authority to issue 'A' Category Government Cheque in favour of one of the 25 authorized Banks. The Cheque may then be deposited along with the CPIN with any of branch of the authorized Bank so selected by the DDO.
(xii) Upon successful payment, a CIN will be generated by the RBI/Authorized Bank and will be shared electronically with the GSTN Portal. This will get credited in the electronic Cash Ledger of the concerned DDO in the GSTN Portal. This can be viewed and the details of CIN can be noted by the DDO anytime on GSTN portal using his Login credentials.
(xiii) The DDO should maintain a Register as per proforma given in Annexure 'A' to keep record of all TDS deductions made by him during the month. This Record will be helpful at the time of filing Monthly Return (FORM GSTR-7) by the DDO. The DDO may also m

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In Re: Mr. Sutapa Sutradhar
GST
2018 (11) TMI 277 – AUTHORITY FOR ADVANCE RULINGS, KERALA – TMI
AUTHORITY FOR ADVANCE RULINGS, KERALA – AAR
Dated:- 26-9-2018
AAR No. KER/18/2018
GST
SHRI. B.G. KRISHNAN IRS AND SHRI B.S. THYAGARAJABABU B.Sc., LLM, MEMBER
Authorized Representative: Nil
The applicant was a casual taxable person doing business on fireworks. In order to doing business during Deepawali season, on 09.11.2017 dealer had deposited CGST of Rs. 81,000/- and SGST of Rs. 81,000/- vide CPIN 17113200012674. But he could not complete registration process due to GSTN related issues. Hence filed application for advance ruling for getting refund of deposited amount.
There was no representation on the date of hearing.

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