Goods and Services Tax

Customs – PUBLIC NOTICE No. 72/2018 – Dated:- 6-6-2018 – OFFICE OF THE COMMISSIONER OF CUSTOMS – IV EXPORTS ACC, SAHAR, ANDHERI (EAST), MUMBAI-400099. F.No.-S/3-Misc-254/2017-18 DBK(EDI)/ACC Date: 06.06.2018 PUBLIC NOTICE No. 72/2018 Sub: IGST Refund Simplification of Process – Elimination of Errors-reg. Attention of Exporters/ Customs Brokers and General Public is invited to the Board's Circular no. 12/2018 dated 29.05.2018 and 08/2018 dt. 23.03.2018 and ICES advisories 05/2018, 20/2018, 21/2018, 22/2018 and 23/2018 on the above subject. These Circulars/DG(System)'s advisories address the various issues being faced by the Exporters in getting the IGST refund expeditiously. Based on these Circulars/Advisories, this Public Notice is issued for the knowledge and utility of all the stake holders concerned. 2. In terms of Para 2(ii) Board's Circular 08/2018 dt. 23.03.2018 , an option has been made available in ICES for sanctioning IGST refund in respect of those cases where th

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also be sanctioned through the Officer Interface. In such cases, the Exporters are required to submit to the Officer an undertaking obtained from the GST registered unit which has filed the returns that they have no objection to the refund being granted to the exporter who has filed the Shipping Bill and they will not claim any IGST Refund for under that SB separately. once satisfied, the officer will sanction the applicable IGST Refund through the Officer Interface. 4. Further. it has been noticed that despite the efforts to update the bank accounts with PFMS before generation of IGST Refund scrolls, some scrolls are still getting rejected at PFMS end and in some cases, the scrolls get accepted successfully but the crediting of amount fails for one or more exporters due to invalidation by the concerned bank to PFMS. An automated system of reversal/return of such 'Failed-after-Success' transactions from PFMS to ICEGATE system is under development. For the former kind of cases w

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)to obtain the correct Bank Account details of the beneficiary and update the same in ICES in CLK role. The correct account details shall then be sentback the duly verified/signed document to the Central DDO by email to cddo.customs@icegate.gov.in in the following format: Transaction ID: Name of the Beneficiary: IEC: Bank Account Details Already provided Corrected/Revised Account No: Account No: IFSC Code: LFSC Code: c. The DDO shall forward the scanned copy of the duly verified corrected Bank Account details to the PAO/e-PAO through email. The PAO/e-PAO shall, based on verified Bank account details, correct the account details and reprocess the failed bill for payments. 5. The above procedure is in line with the 0M dated 26.04.2018 issued by the O/o Pr CCA, CBIC on the above subject. It will be ensured that the verified account details are emailed to the above ID by the system manager through the official ICEGATE email id. No other communication shall be entertained by the Central DDO

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2018 (10) TMI 341 – AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – 2018 (17) G. S. T. L. 50 (A. A. R. – GST) – Levy of GST – services by way of granting Long Term Lease – upfront charges – Whether GST is applicable on upfront amount (called as premium/salami) payable in respect of services by way of granting of longterm lease of the thirty years or more for plots catering to public health care such as hospital, nursing home, diagnostic centres etc?
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Held that:- From the plane reading of N/N. 12/2017-Central Tax (Rate), dated 28-6-2017, it can be concluded that contention of applicant is correct i.e. the above such services are exempted from the GST, if fulfil all the above conditions as mentioned in the notification.
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Ruling:- GS

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thority for Advance Ruling. "Whether GST is applicable on upfront amount (called as premium/salami) payable in respect of services by way of granting of longterm lease of the thirty years or more for plots catering to public health care such as hospital, nursing home, diagnostic centres etc?. 3. Further, applicant has referred the office memorandum sent to New Okhla Industrial Development Authority (Noida) by Ministry of Finance, Deptt. of Revenue dated 20-12-2017. In response to their request for clarification regarding eligibility for GST exemption, the memorandum does not have any mentioning of upfront for hospital plots neither in favour nor against it and applicant requested clarification on the same. They have also referred to th

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ed by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area.". From the plane reading of the above notification, it can be concluded that contention of applicant is correct i.e. the above such services are exempted from the GST, if fulfil all the above conditions as mentioned in the notification. 6. In the light of the above, we rule as under : RULING 7. GST is not applicable i.e. exempted on upfront amount, if the conditions are satisfied as mentioned [at] SI. No. 41 of Notification No. 12/2017-Central Tax (Rate),

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2018 (9) TMI 433 – AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – 2018 (16) G. S. T. L. 645 (A. A. R. – GST) – Carry forward of CENVAT credit – transition to GST Regime – Whether the applicant is entitled to carry forward the accumulated cenvat credit as reflected in its Excise returns for the month of June- 2017 to GST regime in terms of provisions under the CGST Act, 2017, more particularly Section 140 of the CGST Act? – Whether the accumulated Cenvat Credit so carried forward, not being the credit availed under the GST regime, is required to be adjusted/restricted in the manner prescribed under Rules 42 and 43 of the CGST Rules, 2017?
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Held that:- A plain reading of Section 97(2) clearly implies that the any question relating to CENVAT credit, which falls under transitional provision, shall be out of purview of Advance Ruling. Admissibility of input tax credit, as given in Section 97(2), relates to 'input tax credit' as defined in Section 2(63) of CGST Act, 2017 read with Sec

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n and sale of electricity, having Registration No. 23AAKCS072M1ZB. The applicants have been allocated captive coal mines in the State of M.P. with a condition that the coal extracted would be exclusively used in the power generation plant of the applicant. The applicant have been granted one single registration under CGST Act, 2017 for the captive coal mines as well as power plant which are situated 14 km apart. 1.2 Prior to 1.7.2017, i.e., the appointed day for roll out of GST, the applicant had been registered with Central Excise Department under the existing Central Excise Act, 1944, whereby they were discharging Central Excise duty liability on extraction and manufacture of coal from coal mines for captive consumption, in view of the provisions of the Central Excise Act, 1944. Obviously, the applicant, during the period prior to 1.7.2017, had been availing credit of duty paid on inputs/capital goods and service tax paid on services used in or in relation to the activity of extracti

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ply'. In such circumstances, the applicant has sought Advance Ruling on following two questions : (i) Whether the applicant is entitled to carry forward the accumulated cenvat credit as reflected in its Excise returns for the month of June- 2017 to GST regime in terms of provisions under the CGST Act, 2017, more particularly Section 140 of the CGST Act ? (ii) If the answer to the above is in affirmative, whether the accumulated Cenvat Credit so carried forward, not being the credit availed under the GST regime, is required to be adjusted/restricted in the manner prescribed under Rules 42 and 43 of the CGST Rules, 2017 ? 2. Record of personal hearing : Mr. Gopal Mundra, Mr. Ravi Ghiyani and Mrs. Laxmi Vyas appeared for personal hearing on 10.5.2018 and reiterated the stand already taken in the application. He, however, informed that the applicant had already claimed the Credit under TRAN-1 which has been duly filed by them with the jurisdictional officers. 3. Department's stand

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Cenvat credit lying unutilized as balance as per the last ER-1 filed by the applicant for the month of June, 2017, in light of the provisions of Section 140 of the CGST Act, 2017 which specifically deals with the subject of Transitional Credit. 4.2 We have taken a note of the letter F.No. GST/PartyIssue/HQR JBP/2017-18 dated 10.5.2018 of the Joint Commissioner, CGST & Central Excise, Jabalpur. It is an admitted fact on record, as also transpired during the course of personal hearing, that the question raised by the applicant before the AAR had already been examined by the department as the applicant had claimed such disputed credit in their TRAN-1. 4.3 Before going into the merits of the case, it is necessary to deal with the. issue whether the application deserves to be admitted and heard on merits. In this context it is pertinent to refer to section 97(2) and section 98(2), which are following : 4.4 Section 97(2) : The question on which the advance ruling is sought under this Act

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bid and not the CENVAT carried forward in TRAN-1, which categorically pertains to pre-GST regime. Thus, we find that the question placed before us does not fall within the four corners of issues defined for seeking Advance Ruling under Section 97(2) ibid. Hence the application does not hold ground to be admitted on this count. 4.6 Further, Section 98(2) of the CGST Act, 2017 reads as under : Sec. 98 : Procedure on receipt of application (1) ………………………………… (2) The Authority may, after examining the application and the records called for and after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application : Provided that the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act': 4.7 Now having regard to the

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2018 (8) TMI 1495 – CESTAT CHENNAI – TMI – CENVAT Credit – input services – tour operator services for the period prior to 01.04.2011 – denial on the ground of nexus – whether the service tax paid for services availed for pickup and drop of employees under the head “tour operator services” is eligible for credit or not?
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Held that:- The period involved is prior to 01.04.2011 when the definition of input services had a wide ambit – the issue is also covered by the decision in the case of Comstar Automotive Technologies Pvt. Ltd. [2017 (6) TMI 910 – MADRAS HIGH COURT], where it was held that availing of such services are necessary to the manufacture and transporting the workers to and fro from the factory is included under input service

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operator services for the period prior to 01.04.2011. The department was of the view that such services do not have nexus with the manufacturing activity and, hence, Show Cause Notice was issued, proposing to deny the credit and for recovery of the same along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, the Commissioner (Appeals) upheld the same. Hence, these appeals. 3. On behalf of the appellant, the learned Counsel, Shri P. Ravindran, submitted that the tour operator services were availed by the appellant for pickup and drop facilities of the staff/employees of the appellant-factory. That these services are essentially necessary

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2018 (8) TMI 390 – KARNATAKA HIGH COURT – TMI – Withdrawal of petition – Petitioner has filed a memo seeking leave of the Court to withdraw the writ petition with liberty to approach appropriate Authority for appropriate relief in accordance with law – Held that:- Memo is placed on record – The writ petition is dismissed as withdrawn. – WRIT PETITION No.23558/2018 (T-RES) Dated:- 6-6-2018 – MR. B. VEERAPPA J. Petitioner (BY Smt. Rukmini Nair, Advocate) Respondents (By Sri K M Shivayogiswamy, A

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2018 (7) TMI 1688 – KARNATAKA HIGH COURT – TMI – Memo Seeking withdrawal of petition – Held that:- Memo is placed on record – The writ petition is dismissed as withdrawn. – WRIT PETITION No.23557/2018 (T–RES) Dated:- 6-6-2018 – MR. B. VEERAPPA J. Petitioner (BY Smt.Rukmini Nair, Advocate) Respondents: (By Sri K M Shivayogiswamy, Advocate for R1, Sri Vikram Huigol, HCGP for R2 & R3) ORDER After arguing the matter for sometime, Smt. Rukmini Nair, learned counsel for the petitioner has filed

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2018 (7) TMI 1635 – SIKKIM HIGH COURT – [2018] 59 G S.T.R. 56 (Sik), 2018 (19) G. S. T. L. 18 (Sikkim) – GST on lotteries – Validity of Notifications issued by the State of Goa – seeking deletion of the State of Goa as a party Respondent – distinction between lotteries run by the State Government and the lotteries authorized by the State Government – Petitioners are aggrieved by not only impugned notification issued by State of Goa under the GGST Act, 2017 but also by the act of the Centre of issuing the impugned notifications under the CGST Act, 2017 as well as the IGST Act, 2017 which seeks to levy Goods and Services Tax on lotteries organized, promoted and conducted by the State of Sikkim.
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Held that:- It is not the actual incidence of GST under the GGST Act, 2017 which are impugned in the present Writ Petitions but the provisions of law made by the Parliament as well as the respective State Governments including the State of Goa by which it seeks to levy GST on lotteries.
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Manju Rai, Advocates., Mr. Karma Sonam Lhendup, Advocate For Respondent (s) For R-1 & R-2 : Mr. B.K. Gupta, Advocate. For R-3 & R-4 : Mr. J.B. Pradhan, Addl. Advocate General with Mr. Karma Thinlay, Sr. Govt. Advocate, Mr. Thinlay Dorjee Bhutia, Govt. Advocate, Mr. S.K. Chettri, Ms. Pollin Rai, Assistant Government Advocates. For R-3 : Ms. Prarthana Ghataney, Advocate For R-5 & R-6 : None. For R-7 : Mr. Salvador Santosh Rebello and Mr. Ugang Lepcha, Advocates. For R-4 : Ms. Karma Yangchen Bhutia, Advocate. For R-7 : Mr. Manish Kr. Jain, Advocate. For R-9 : Mr. Salvador Santosh Rebello and Mr. Ugang Lepcha, Advocates. For R-10 : Ms. Babita Rai and Ms. Ranjeeta Kumari, Advocates. For R-5 & 6, R-11 and R-12 : None. O R D E R Pradhan, J. 1. Three Writ Petitions are pending before this Court for adjudication. The present applications filed by the State of Goa under consideration seek the deletion of the State of Goa as a party Respondent in WP(C) No.36/2017, WP(C) No.38/201

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, the appropriate Court where the notification and the consequential actions if at all can be challenged is the High Court of Bombay at Goa. Consequently, the Applicant submits that this Court would not entertain such a challenge to the notification of the Government of Goa is concerned. 4. The Applicant further states that an identical Writ Petition No. 759/2017 has already been filed before the High Court of Bombay at Goa by one Serenity Trades Private Limited which has been admitted by the said High Court vide order dated 20.09.2017 and is pending final hearing. 5. The Applicant thus submits that the Petitioner can either challenge the impugned notification issued by the State of Goa by filing a Writ Petition before the High Court of Bombay at Goa or apply for intervention in Writ Petition 759/2017. The challenge to the impugned notification cannot continue before this Court as no cause of action has arisen vis-a-vis the said notification within the jurisdiction of this Court. The A

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er, notwithstanding that the seat of such Government or authority or the residence of such person is not within those territories (3) Where any party against whom an interim order, whether by way of injunction or stay or in any other manner, is made on, or in any proceedings relating to, a petition under clause (1), without (a) furnishing to such party copies of such petition and all documents in support of the plea for such interim order; and (b) giving such party an opportunity of being heard, makes an application to the High Court for the vacation of such order and furnishes a copy of such application to the party in whose favour such order has been made or the counsel of such party, the High Court shall dispose of the application within a period of two weeks from the date on which it is received or from the date on which the copy of such application is so furnished, whichever is later, or where the High Court is closed on the last day of that period, before the expiry of the next d

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nd, subject to clause (2), the Legislature of every State, have power to make laws with respect to goods and services tax imposed by the Union or by such State. (2) Parliament has exclusive power to make laws with respect to goods and services tax where the supply of goods, or of services, or both takes place in the course of inter-State trade or commerce. Explanation.- The provisions of this article, shall, in respect of goods and services tax referred to in clause (5) of article 279A, take effect from the date recommended by the Goods and Services Tax Council. 9. The Central Government in exercise of the powers conferred by 246 A of the Constitution of India has enacted the Central Goods and Services Act, (CGST Act) 2017 as well as Integrated Goods and Services Act, (IGST Act) 2017. The State of Sikkim, the Government of Goa as well as some other States have also enacted their respective State Goods and Services Act, 2017. The Government of Goa has also enacted Goa Goods and Services

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the State of Sikkim is unconstitutional and illegal. 14. In WP(C) No.36/2017 the State of Goa is Respondent No.9. In the said Writ Petition the following prayers are sought :- (a) issue a writ in the nature of mandamus or certiorari or any other writ order or direction to hold and declare that the provisions of Serial No.6 of Schedule III read with Section 7(2) of the Central Goods and Service Act, 2017 and also serial No.6 of Schedule III read with Section 7(2) of the States Goods Service Act, 2017 of Respondent Nos. 2 to 11 exempting actionable claims as activities or transactions which shall be treated neither as supply of goods nor a supply of service but not excluding lottery from such exemption is unconstitutional, illegal and non-est as lotteries cannot at all be subjected to tax under the GST Act, 2017, IGST Act, 2017 and SGST Acts, 2017. (b) in the alternative, issue a writ in the nature of mandamus or certiorari or any other writ order or direction to hold and declare that t

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alternative, issue a writ in the nature of mandamus or any other writ order or direction to hold and declare that even if State lotteries are subject to tax, the prize money in a lottery ticket or under the lottery scheme of the State Government cannot be taxed at all and the tax i.e. Central tax and the State tax imposed on State Organized lotteries under the CGST Act, 2017 IGST Act, 2017 and the SGST Act, 2017 of the Respondents can only be levied only on the face value of the lottery ticket minus the prize money in the scheme under which the State Govt. sells its lotteries through its Distributors/ Selling Agents; (e) in the further alternative, issue a writ in the nature of mandamus or any other writ order or direction to hold and declare that the value of the lottery tickets supplied by the States to its Distributor should be the invoice value and /or the transaction value of the actually paid by the Distributor and received by the Respondent No.2 as reflected in the invoice raise

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erse Charge, and the impugned State Notification – Reverse Charge providing that in case of Lottery supply the Lottery Distributor or selling agent shall be liable to pay tax on reverse charge basis; (h) pass any other directions/s, relief/s, order/s that may be deemed fit and proper in the circumstances of this case. (i) all the costs of Writ Petition 15. In WP(C) No.38/2017 the State of Goa is arrayed as Respondent No.7 and the Petitioner has sought for the following prayers:- (i) Set aside the Impugned Notifications 01/2017 Central Tax (Rate), 01/2017 Integrated Tax (Rate), 01/2017, and the State rate Notifications of the States of Sikkim, Goa, Punjab and Maharashtra to the extent it levies differential rates of tax on the supply of Lottery tickets by creating an illusory sub-classification between Lottery run by the State Government as discriminatory and violative of Article 14, 19(1)(g) , 301, 304 of the Constitution of India and of the CGST, SGST and IGST Act, and further hold th

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writ order or direction to hold and declare that lottery are not actionable claims for the purpose of Section 3 of the Transfer of Property Act and assumption and treatment of lotteries as actionable claims for the purpose of subjecting lotteries to tax under the GST Act, 2017, IGST Act, 2017 and SGST Act, 2017 is illegal and unconstitutional and beyond the scope and powers of the said GST legislations. (b) Or in the alternative to issue a writ in the nature of mandamus or certiorari or any other writ order or direction to hold and declare and S.No.6 of Schedule III read with Section 7(2) of the Central Goods and Service Act, 2017 and also S.No.6 of Schedule III read with Section 7(2) of the States Goods and Service Act, 2017 of Respondent Nos.2 to 11 exempting actionable claims as activities or transactions which shall be treated neither as supply of goods nor a supply of service but not excluding lottery from such exemption is unconstitutional, illegal and non -est as lotteries cann

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e and/or read down S.No.242 in Schedule-II of the impugned Central Notification, impugned IGST Notification and the impugned State Notifications of Respondent Nos.2 to 12 providing for taxation of Lottery run by State Governments ; (e) in the further alternative, issue a writ in the nature of mandamus or any other writ order or direction to hold and declare that even if State lotteries are subject to tax, the prize money in a lottery ticket or under the lottery scheme of the State Government cannot be taxed at all and the tax i.e. Central tax and the State tax imposed on State Organized lotteries under the CGST Act, 2017, IGST Act, 2017 and the SGST Act, 2017 of the Respondents can only be levied only on the face value of the lottery ticket minus the prize money in the scheme under which the State Govt. sells its lotteries through its Distributors/ Selling Agents; (f) in the further alternative, issue a writ in the nature of mandamus or any other writ order or direction to hold and dec

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butor or selling agent shall be liable to pay tax on reverse charge basis; (h) pass any other direction/s, relief/s, order/s that may be deemed fit and proper in the circumstances of this case. (i) all the costs of Writ Petition. 17. It is the case of the Petitioners in the Writ Petitions that the State of Goa is also engaged in the business of State organized lotteries and has been organizing, conducting and promoting its State organized lotteries and is one of the States in the Union of India where lotteries can be sold. It is the case of the Petitioners that the Petitioners distribute, purchase and sell lotteries and online lotteries both within the State of Sikkim as well as in the State of Goa. It is the case of the Petitioners that the Central Government issued impugned notifications in exercise of the powers conferred by the Sub-section (1) of the Section 9 of the CGST Act, 2017 and similarly identical notifications have also been issued by the State Governments including the St

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tion of the Section 5 of the Lotteries Regulation Act, 1998. 19. Thus it is seen that the Petitioners are aggrieved by not only impugned notification issued by State of Goa under the GGST Act, 2017 but also by the act of the Centre of issuing the impugned notifications under the CGST Act, 2017 as well as the IGST Act, 2017 which seeks to levy Goods and Services Tax on lotteries organized, promoted and conducted by the State of Sikkim. It is not the actual incidence of GST under the GGST Act, 2017 which are impugned in the present Writ Petitions but the provisions of law made by the Parliament as well as the respective State Governments including the State of Goa by which it seeks to levy GST on lotteries. 20. Perusal of the prayers, as prayed for, in the said three Writ Petitions also makes it evident that at least a part of the cause of action has arisen within the jurisdiction of this Court. 21. WP(C) No.36/2017 was filed on 07.07.2017, WP(C) No.38/2017 was filed on 14.07.2018 and WP

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2018 (7) TMI 881 – AUTHORITY FOR ADVANCE RULINGS, CHHATTISGARH – 2018 (14) G. S. T. L. 559 (A. A. R. – GST) – Input Tax Credit (ITC) – seeking credit packaging material which is to be used in exempted supply, till they are into their stock – ITC while transferring goods between their 'own branches – multiple taxes on transfer of goods to other branches of the applicant
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Held that:- As per provisions of section 17(2) of CGGST Act, 2017 any registered recipient can claim ITC to the extent of taxable stock or taxable outward supply shown in their returns. The registered recipient cannot claim ITC on the amount of taxable supply component included in the total amount of exempted supply. The amount of unclaimed ITC shall also be reversed in the electronic ledger of the same month – If the applicant supplies seeds (exempted item) in packaged form using such packing materials (taxable item), to its own branches in other States, then no ITC could be claimed on the packaging material used

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p Input Tax Credit (ITC) of the packaging material till they are into their stock and regarding ITC while transferring goods between their 'own branches. This ruling has been sought by the applicant in the light of section 17 of CGGST Act, 2017 stipulating therein non accumulation of ITC in case of units dealing in non-tax/exempted goods. The aforesaid Advance ruling has also been requested by the applicant as for each such transfer they have to pay GST merely for internal transfer of goods from one branch to another branch for one goods and the same goods in same hands would be liable for multiple tax which will be against the core principles of GST. 2. Facts of the case:- I. The applicant M/s VNR Seeds Pvt. Ltd. Raipur with multiple registrations under GST in various States is involved in the business of supplying seeds (in packaged form using packing materials), for sowing purpose, which is exempted item. II. They procure taxable packaging materials/commodities etc. which are re

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rated their contention. He also furnished a written submission dated 24/5/2018, which has been taken on record. 5. The legal position, Analysis and Discussion:- The provisions for implementing the CGST Act and CGGST Act, 2017 are similar. Now we sequentially discuss the provisions that are applicable in the present case -The Applicant is involved in – a. The supply of seeds (exempted item) in packaged form using packaging material (taxable under GST) and also in b. Supply of such packaging materials and other consumables to their own branches situated in other States across India. 5.1 The Applicant has submitted that they are involved in the business of supplying seeds in packaged form using such packaging materials. Seeds are exempted from GST whereas packing materials and other consumables are taxable. Thus, this supply of the applicant falls under the category of composite supply, as stipulated under the provisions mentioned hereunder:- i U/s. (2)30 of CGGST Act, 2017:- "Compos

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scribed and in the manner specified in Section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. iv U/s. 49(1) of CGGST Act, 2017:- Every deposit made towards tax, interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions and restrictions as may be prescribed, maintained in such manner as may be prescribed. v. U/s. 41 of CGGST Act, 2017;- Claim of input tax credit and provisional acceptance thereof :- (1) Every registered person shall, subject to such conditions and restrictions as may be prescribed, be entitled to take the credit of eligible input tax, as self-assessed, in his return and such amount

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of exempted supply. The amount of unclaimed ITC shall also be reversed in the electronic ledger of the same month. Thus it is clear from the above legal provisions that if the applicant supplies seeds (exempted item) in packaged form using such packing materials (taxable item), to its own branches in other States, then no ITC could be claimed on the packaging material used for the said exempted supply of seeds. Whereas, if the applicant supplies only packing material to own branches in other States, then the ITC involved in purchase of such packing material could be availed as per section 17(2) of CGGST Act, 2017. In view of the deliberations and discussions as above, we pass the following order: Order (Under section 98 of the Chhattisgarh Goods and Services Tax Act, 2017) In view of the discussions held above, the ruling sought by the applicant is answered as under:- The applicant is not entitled to ITC on the packing material used for packaging seeds, while making such exempted suppl

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2018 (6) TMI 989 – CESTAT MUMBAI – TMI – Rectification of mistake application – maintainability of ROM Application – Revenue argues that in view of the circular dated 18.12.2015, the issue involving refund is not covered under the original litigation policy circular dated 17.8.2011. Therefore, he submits that the order be recalled and the matter be heard again – Held that:- In view of the circular dated 4.4.2018, even refund matters are included in the scope of litigation policy circular dated 17.8.2011. Therefore, the order is passed in accordance with law. Hence the ROM is not maintainable – ROM application dismissed being not maintainable. – APPLICATION No. E/ROM/85360/2018 APPEAL No. E/87246/2017 – M/85567/2018 – Dated:- 6-6-2018 – Dr.

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2018 (6) TMI 619 – ALLAHABAD HIGH COURT – [2018] 2 GSTL 40 (All), 2018 (15) G. S. T. L. J74 (All.) – Seizure of goods – non-payment of U.P.G.S.T. – inter-state transportation – Held that:- appellant may seek instructions and file counter affidavit within a month – List immediately thereafter for admission/final disposal. – Writ Tax No. 906 of 2018 Dated:- 6-6-2018 – Hon'ble Pankaj Mithal And Hon'ble Jayant Banerji, JJ. For the Petitioner : Udai Chandani For the Respondent : C.S.C.,A.S.

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2018 (6) TMI 425 – ALLAHABAD HIGH COURT – [2018] 2 GSTL 43 (All), 2018 (14) G. S. T. L. 176 (All.) – Seizure of goods alongwith vehicle – Section 129(1) of the UPGST Act, 2017 – non filing Part-B of E-way Bill – Held that:- Part-B of E-Way Bill requires the details of the vehicle carrying the goods and the destination – as the complete details to be filled up in Part-B of the E-way Bill were supplied on 25.05.2018, the goods were not liable for seizure on 26.05.2018 – goods alongwith vehicle to be released on furnishing security other than cash or bank guarantee equivalent to the proposed tax – decided in favor of petitioner. – Writ Tax No. 905 of 2018 Dated:- 6-6-2018 – Hon'ble Pankaj Mithal And Hon'ble Jayant Banerji, JJ. For th

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iew of the above, as the complete details to be filled up in Part-B of the E-way Bill were supplied on 25.05.2018, the goods were not liable for seizure on 26.05.2018. Learned standing counsel appearing for the respondents may file counter affidavit within a month. Two weeks thereafter is allowed to the petitioners to file rejoinder affidavit. List for admission/final disposal after the expiry of the above period. In the meantime, the goods and the vehicles seized vide seizure memo order dated 25.05.2018 shall be released in favour of the petitioner on furnishing security other than cash or bank guarantee equivalent to the proposed tax. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanageme

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2018 (6) TMI 424 – KERALA HIGH COURT – TMI – Release of detained goods – Section 129 of the CGST Act as also the Kerala SGST Act – Held that:- Identical matter has been disposed of by a Division Bench of this Court in the case of THE COMMERCIAL TAX OFFICER AND THE INTELLIGENCE INSPECTOR VERSUS MADHU. M.B. [2017 (9) TMI 1044 – KERALA HIGH COURT], directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017.
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The writ petition is disposed of directing the competent authority to complete the adjudication provided for under Section 129 of the statutes, within a week from the date of production o

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2018 (6) TMI 378 – CESTAT CHENNAI – TMI – CENVAT credit – common inputs used in taxable service as well as trading activities – clearance of goods as such – case of appellant is that they have reversed the credit, as under Rule 3(5), when they have cleared the goods as such – Held that:- The appellants have reversed the credit, as under Rule 3(5), when they have cleared the goods as such. In a normal trading activity, the goods which are procured, are sold and there is no question of availing the credit of such goods or clearing them on the payment of duty.
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In the present case, the appellant has availed credit on the inputs and, in some circumstances, they were not able to use the goods in the manufacture of final products. They have opted to clear the goods as such, under the provision of Rule 3(5) by reversing the credit – demand cannot sustain – appeal allowed – decided in favor of appellant. – Appeal No. E/42615/2017 – Final Order No. 41747 / 2018 – Dated:- 6-6-2018 – Ms. S

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posed input penalty. In appeal, the Commissioner (Appeals) upheld the same. 2. On behalf of the appellant, the learned Counsel, Shri Sai Prasanth, submitted that the appellant had removed the raw materials under Rule 3(5) of Cenvat Credit Rules, after reversing the credit. The inputs/raw materials were removed after payment of duty. Thus, there is no trading as such and the activity cannot be treated as an exempted service. He relied upon the decision in the case of Suyash Auto Press Components and Assemblies Pvt. Ltd. Vs. CCE [2018-TIOL-1424-CESTAT-MUM]. 3. The learned AR, Shri R. Subramaniyan, supported the findings in the impugned order. He submitted that with effect from 01.04.2011, an explanation has been added to the definition of exempted service, clarifying that exempted service includes trading. Thus, when the appellants have removed the inputs as such, the same amounts to trading and, therefore, they are liable to pay an amount of 5%/6% of the value of traded goods. That the

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as such under Rule 3(5) of the Cenvat Credit Rules, 2004 on payment of excise duty which is equal to the cenvat credit. Therefore, Rule 6(3) should not be applied and accordingly the demand is not sustainable. He placed reliance on the following judgments: – (i) CCE, Ahmedabad- II vs Inductotherm (I) Pvt. Ltd. – 2013 (1) ECS (26) (Guj-HC); = 2012-TIOL-929-HC-AHM-CX (ii) AR Casting (P) Ltd. vs. CCE&ST, Chandigarh – (Service Tax Appeal No. 580/2008) (Tri. – Delhi); = 2010-TIOL-245-CESTAT-DEL (iii) Chitrakoot Steel and Power Pvt. Ltd. vs. CCE – 2008 (125) ECC 188 (Tri. -Chennai)= 2008-TIOL-246-CESTAT-MAD 3. Shri S.J. Sahu, learned Assistant Commissioner (AR) appearing on behalf of the Revenue, reiterates the finding of the impugned order. He emphasizes on para 6 of the impugned order. He further submits that all the judgements relied upon by the appellant have been dealt with by the learned Commissioner (Appeals) and the same have been distinguished. 4. I have carefully considered the

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Customs – 15/2018 – Dated:- 6-6-2018 – Circular No.15/2018-Customs F. No: 450/119/2017-CusIV Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes and Customs) ***** Room No.227-B, North Block, New Delhi dated 6th June, 2018 To, All Principal Chief Commissioner/Chief Commissioner of Customs/ Customs & Central Tax / Customs (Preventive) All Principal Commissioner/Commissioner of Customs/ Customs & Central Tax / Customs (Preventive) All Director Generals under CBIC. Subject: Refund of IGST on export of Goods-Extension of date in SB005 alternate mechanism cases and Clarification in other cases -reg. Sir/ Madam, CBIC has issued Circular No s 05/2018-Customs dated 23.02.2018 and 08/2018-Customs d

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rocessing of refund claims. 2. Apart fromSB005 errors, IGST refunds are also stuck on account of SB003 error on the customs side. This error occurs when there is a mismatch between GSTIN entity mentioned in the Shipping bill and the one filing GSTR-1/GSTR-3B. Board has examined the issue and it has been decided to provide a correction facility in cases where although GSTIN of both the entities are different but PAN is same. This happens mostly in cases where an entity filing Shipping bill is a registered office and the entity which has paid the IGST is manufacturing unit/other office or vice versa. However, in all such cases, entity claiming refund (one which has filed the Shipping bill) will give an undertaking to the effect that its other

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Goods and Services Tax – 46/20/2018 – Dated:- 6-6-2018 – Circular No. 46/20/2018-GST F. No. 354/149/2017 -TRU Government of India Ministry of Finance Department of Revenue Tax Research Unit ****** North Block, New Delhi Dated the 6th June, 2018 To The Principal Chief Commissioner/ Principal Directors General/Chief Commissioner/ Directors General/Principal Commissioner/ Commissioner of Central Excise and Central Tax (All) / Director General of Systems Madam / Sir, Subject: Applicable GST rate on Priority Sector Lending Certificates (PSLCs), Renewable Energy Certificates (RECs) and other similar scrips -regarding Representations have been received seeking clarification regarding the classification and applicable GST rate on the Renewable Ene

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S. No. 453 of Schedule III of notification No. 01/2017-Central Tax (Rate). 4. As a result, there is lack of clarity on the applicable rate of GST on various scrips/ certificates like RECs, PSLCs etc. 5. The matter has been re-examined. GST rate of 18 % under the residual entry at S.No. 453 of Schedule III of notification No. 01/2017-Central Tax (Rate) applies only to those goods which are not covered under any other entries of Schedule I, II, IV, V, or VI of the notification. In other words, if any goods are covered under any of the entries of Schedule I, II, IV, V, or VI, the GST rate applicable on them will be decided accordingly, without resorting to the residual entry 453 of Schedule III. 6. As such, various certificates like RECs, PSL

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Goods and Services Tax – Started By: – Ankit TMI – Dated:- 5-6-2018 Last Replied Date:- 8-6-2018 – What are the interest and penal liability in case a supplier has wrongly availed CGST / SGST credit against IGST. However, the same has been reversed before utilisation. Kindly quote specific section that affects the said scenario. Thanks – Reply By YAGAY and SUN – The Reply = If interest @24% is paid along with reversal of ITC which was wrongly availed before issuance of SCN then there would be no penal actions initiated by the Department. – Reply By Ankit TMI – The Reply = Thanks you sir for your response. Can you please help me out with exact provision which levy interest in such a scenario. Is your reply is in context of mismatch under Se

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Goods and Services Tax – Started By: – VIRAL SHAH – Dated:- 5-6-2018 Last Replied Date:- 6-6-2018 – What is the port code for following transactionI am doing retail export from Indian Post ( i.e. sending parcels out of India through Indian Speed Post)Indian Post not giving me any Shipping Bill. – Reply By YAGAY and SUN – The Reply = Please check the following links for the details http://accmumbai.gov.in/aircargo/import/faq.html Further, vide Customs Notification No. 48/2018 dtd. 04th June 2018 Exports by Post Regulations, 2018 has been notified by the Hon ble under Secretary to the Government of India. These Regulations shall apply to export of goods by any person, holding a valid Import-Export Code issued by the Director General of Forei

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2018 (10) TMI 681 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (18) G. S. T. L. 241 (A. A. R. – GST) – Classification of education services rendered by appellant – Appellant is approved by National Skill Development Corporation – National Skill Development Programme – whether merit classification under HSN 9992 or otherwise? – exemption under N/N. 12/2017 Central tax (Rate) dated 28th June 2017.
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Whether educational courses offered by the Applicant which have been approved by National Skill Development Corporation (NSDC) would be construed as in relation to National Skill Development Programme implemented by NSDC? – whether they are eligible for exemption from GST as per Serial No. 69 of Notification No. 12/2017 Central tax (Rate) dated 28th June 2017 and if so, in respect of which services being provided by them would they be eligible for exemption under Sr.No. 69 of the above said Notification?
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The Applicant offers certain educational courses for which qualificatio

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ate), dated the 28th June 2017 would be available to the Applicant?
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If answer to Q.4 is Yes, whether benefit of GST exemption as per Notification No. 17/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corporates and business institutions?
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Whether the NSDC approved educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor of Applicant, at various centres located across the country, will be considered as offered by the Applicant?
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If answer to Q.6 is Yes, whether benefit of GST exemption as per Notification No. 17/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant?
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Held that:- NSDC was set up as a part of National Skill Development Mission to fulfil the growing need in India for skilled manpower across sectors and narrow the existing gap between the demand and supply of skills. Its ma

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exemption as given at Sr. NO. 69 of Notification 12/2017-CT (Rate) as claimed to be applicable by the applicant in the present case is in respect of any services provided by a training partner approved by the NSDC or the Sector Skill Council in relation to the National Skill Development Program implemented by the NSDC or any other scheme implemented by the NSDC.
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The objective of the National Policy on Skill Development and Entrepreneurship, 2015 will be to meet the challenge of skilling at scale with speed and standard (quality). It will aim to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common standards and link the skilling with demand centres. In addition to laying down the objectives and expected outcomes, the effort will also be to identify the various institutional frameworks which can act as the vehicle to reach the expected outcomes. The national policy will also provide clarity and coherence on how skil

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e ‘Skill Development Programme’ it becomes National Skill development Programme and it limits its scope and restricts it only to the activities/ efforts that are undertaken through Government funding, Government Schemes and specifically designed Government Programmes – National Skill Development Programme would consist of the schemes, actions and deeds that are actually done or are mandated to be done by various ministries, Government departments or their attached offices, Directorates or other institutions as per their instructions and for which expenses in that regard are to be incurred by the Central or State Governments through budgetary provisions.
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The intent of the Notification No. 12/2017-CT provides that exemption would be available only in respect of “Any services provided by a Training partner approved by National Skill Development Corporation in relation to the National Skill Development Programme implemented by the NSDC.
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If the intent of the Legislature had be

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to National Skill Development Programme implemented by NSDC.
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The Educational courses for which qualification standards / framework i.e. QP/ NOS has not been defined by NSDC will not be treated as in relation to National Skill Development Programme implemented by NSDC.
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The modified version of NSDC approved educational courses will not be treated as in relation to National Skill Development Programme implemented by NSDC.
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The benefit of GST exemption as per Notification No. 14/2017- Central Tax (Rate), dated the 28th June 2017 would not be available to the Applicant.
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The Benefit of GST exemption as per Notification No. 17/2017-Central Tax (Rate), dated the 28th June 2017 would not be available if such educational courses are offered to corporates and business institutions.
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Other questions not answered. – GST-ARA-37/2017-18/B-44 Dated:- 5-6-2018 – SHRI B.V. BORHADE AND SHRI PANKAJ KUMAR, MEMBER PROCEEDINGS (Under section 98 of the Central Goods and Services T

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l courses and are eventually approved by NSDC, whether such courses will be treated as in relation to National Skill Development Programme implemented by NSDC? Q.3.- In certain situations, NSDC approved educational courses are subsequently, upgraded by the Applicant within pre-defined QP/ NOS framework, by way of adding more topics/ content/modules. However, such modified version of NSDC approved educational courses have not been approved by NSDC yet. Whether such modified version will be treated as in relation to National Skill Development Programme implemented by NSDC? Q.4.- If the answer to Q.1, Q.2 and Q.3 are Yes, then whether the benefit of GST exemption as per Notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant? Q.5.- If answer to Q.4 is Yes, whether benefit of GST exemption as per Notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corpor

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T ACT . 02. FACTS AND CONTENTION – AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus – STATEMENT OF RELEVANT FACTS HAVING A BEARING ON THE OUESTION(S) ON WHICH ADVANCE RULING IS REOUIRED. II.1 IMS Proschool Pvt Ltd, the Applicant is a company incorporated under the Companies Act, 1956 having its registered office at Mumbai, Maharashtra. II.2 The Applicant is an initiative of IMS Learning Resources and offers educational training and skilling courses through classroom training and virtual coaching, in many areas such as data science, digital marketing, IFRS, ACCA, Fitter – Mechanical Assembly, Basic Electrical, Sales Person Retail etc. across many cities in India including Mumbai, Pune, Chennai, Bangalore, Delhi, Hyderabad, Gurgaon, Kochi and several districts of Gujarat. II.3 The Applicant is engaged, in the business of skilling the youth with the objective of helping them find decent job, make them employable and to help them earn better living. This inc

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uals, corporates. II.6 Applicant is an approved training partner of NSDC and till date, 12 educational courses offered by it have been approved by NSDC. Further, 2 educational courses for which QP/NOS have not been defined by NSDC yet, have been conditionally approved by NSDC. All such courses offered by the Applicant are directed for skill development and to increase employability in India. II.7 The Applicant has tie-ups with various educational institutes / Govt. organizations, including NSDC, National Stock Exchange Academy, Symbiosis International University, Indira Institute of Management, Lovely Professional University, Chartered Financial Institute, Chartered Institute of Management Accountant. II.8 Applicant has obtained registration under Goods and Service Tax (hereinafter referred to as GST ) regime in states of Maharashtra, Haryana, New Delhi, Karnataka, Kerala, Tamil Nadu, Telangana and Gujarat. STATEMENT CONTAINING APPLICANT S INTERPRETATION OF LAW AND OR FACTS AS THE CASE

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onal technical, vocational educational courses such as NCFM Financial Modelling, Financial Analysis, Management Accounting, Financial Planning, Business Analytics and various other post graduate programs in areas of finance, business analytics and marketing as well as technical programs such as Fitter, Basic Electrical and Sales Person Retail. Under GST law, the said education services rendered by the Applicant merit classification under HSN 9992. IV.3. The Applicant is also, an approved training partner of NSDC. The certificate in relation thereto, has been enclosed herewith as Exhibit 2. IV.4. The following educational courses (hereinafter referred to as approved educational courses ) till date, have been already approved by NSDC: (1) Financial modelling (2) Financial analyst (3) Management accounting (4) Strategic management accounting (5) Business accounting (6) Financial planning (7) Business analytics (8) Sales person retail (9) Basic electrical training (10 CGSC Fitter Mechanica

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any other Scheme implemented by the National Skill Development Corporation transaction. Copy of the Notification has been enclosed herewith as Exhibit 4. IV.5. On simple reading of the Notification, it is apparent that GST exemption is available to an approved training partner of NSDC, only if education services rendered by such partner, is in relation to: (i) the National Skill Development Programme implemented by NSDC; or (ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation IV.6. The Applicant would like to submit that the Scheme mentioned above under Sr. No. (ii) and (iii), has been specifically implemented by the respective Govt. department /organisation. For example, NSDC has implemented various Schemes such as PMKK, PMKVY, Udaan, International Skill Training, etc., which would get covered under Sr. No. (iii) mentioned above. Further, variou

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duce unemployment in India and to fulfil the growing need of skilled manpower across various industries and sectors. Role of NSDC is to act as a catalyst for creation of quality skills training institutions across the country and also, to support private sector initiatives for skill development. IV.9. NSDC partners with various training institutions to achieve its mission and objectives of elevating skilled manpower. In this regard, NSDC develops partnerships with multiple stakeholders and build on current efforts of such stakeholders, rather than undertaking initiatives directly and duplicating efforts. IV.10. It is evident from the above that, NSDC to achieve its objectives, does not undertake / implement any schemes, programmes on its own, rather, it has partnered with various training institutions imparting training courses /programmes related to skill development. IV-11. Basis the information available on NSDC portal (hereinafter referred to as SDMS ), we understand that the educa

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2012, notified by Ministry of Human Resource Development is enclosed herewith as Exhibit-5 . IV.12. On SDMS (i.e. NSDC portal related to skill development educational courses), QP / NOS for each type of job role within identified skill sector has been mentioned. Since there are innumerable job roles and defining QP / NOS is a continuing task hence, QP/ NOS for many job roles have already been defined by NSDC and for many other job roles, they are yet to outline QP / NOS. IV.13. NSDC training partners are required to align their education courses with defined QP / NOS within identified skill sector. Accordingly, at time of seeking approval for educational courses, each NSDC training partner is required to give an affidavit / declaration to NSDC, giving reference of pre-defined QP / NOS to demonstrate alignment of such course with that is contained in such educational courses. IV.14. Having said that, the Applicant would like to submit that keeping in mind the objective of NSDC of focus

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Development and Entrepreneurship ( MSDE ). IV.17. In this connection, for each month, quarter, financial year, in relation to each of the approved educational courses, the Applicant is required to report and upload the following details, on the SDMS (NSDC portal): Applicant s progress towards yearly skill achievement targets; Annual and monthly performance of the Applicant such as number of students enrolled, trained, placed, up- skilled; Quarterly and yearly training and placements achievements of the Applicant; Details of each and every student who was enrolled with the Applicant such as personal details, date of enrolment, date of passing out, batch start and end date, training status, etc.; Status of active and inactive educational centres of the Applicant; Details of corporate training programs; Details of any other skilling schemes The documentary evidence of sharing the aforesaid information by the Applicant with NSDC has been enclosed herewith as Exhibit-8 . IV.18. Further, NS

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information of actual training and placements, comparison of yearly targets with the skill development achievements of approved training partners, are being undertaken by NSDC because it has not announced any programme which would be implemented by NSDC itself, to achieve its objectives of enhancing skilled manpower and reducing unemployment in India. Since, NSDC partners with training institutions and does not undertake any training programmes itself, therefore, achievement of approved training partners would be counted as accomplishment of the said objectives of NSDC. Accordingly, all the approved educational courses conducted by the Applicant should be construed as in relation to National Skill Development Programme implemented by NSDC. I. Question Of law: (2) The Applicant offers certain educational courses for which qualification standards / framework i.e. QP/ NOS has not been defined by NSDC and will be approved by NSDC as and when the relevant QP/ NOS would be defined by NSDC. I

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assurance framework that outlines different type of skill standards, a person should possess for a given job role and also, outlines learning outcomes to ensure particular target level of skill has been achieved in a training program. In this regard, NSDC has defined NOS / QP for many job roles. Such QP / NOS should be aligned to educational courses imparted by NSDC training partners. NSDC has defined QP / NOS for many job roles and they are in in process to outline QP / NOS for other job roles. NSDC s educational course approval process V.3. In connection to job role / educational course for which NOS / QPs has been already defined by NSDC, for the purpose of obtaining approval from NSDC, the approved training partner of NSDC is required to align their educational courses as per the listed QPs / NOS. V.4. At present, the step-by-step NSDC course approval process is explained by way of below flow chart: Identify QP on NSDC website for which course needs to be aligned Prepare affidavit

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from NSDC for such courses. V.6. Therefore, both such courses have been conditionally approved by NSDC (hereinafter referred to as exceptional approved educational courses ) and the approval status of such courses appear as exception on the SDMS. Copy of the affidavit submitted to NSDC in relation to exceptional approved educational courses and the screenshot of the approval status of such course on SDMS appearing as exception, have been enclosed herewith as Exhibit-9 . V.7. The Applicant would like to submit that such exceptional approved educational courses are aimed to develop the skills of the candidates and help them to find a job or better job role. Further, the Company while reporting its achievement of skill developments targets to NSDC includes details of such courses as well. V.8. Given this, the Applicant is of the opinion that such courses are directed towards the objectives of NSDC of skill development and reducing unemployment in India and accordingly, should be equated a

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ional Skill Development Programme implemented by NSDC VI.2. For the purpose of remaining competitive in this evolving and dynamic world, the Applicant keeps on upgrading, modifying, adding variants to its already approved educational courses, by way of adding more topics/ modules / content to the same. As result of such modification, the basic premise of such modified courses remains constant, existing modules are not deleted from it, only, supplementary modules / programs are added to it and aligned with corresponding pre-defined QP/ NOS, in order to make the same, lucrative to the candidates, educational institutions, corporates, etc. VI.3. The Applicant has obtained approval from NSDC at inception however, subsequent to up- gradation, in connection with such modified versions of already existing approved educational courses, the Applicant is yet to receive approval from NSDC. VI.4. The Applicant would like to submit that the aforesaid modifications to the already approved educationa

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be available to the Applicant? VII.1. The Applicant submits that in the present case, the Advance Ruling sought by the Applicant relates to the matter as to: If the answer to Q.1, Q.2 and Q.3 are Yes, then, whether the benefit of GST exemption as per notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant GST Notification VII.2. Entry 69 to the Notification No. 12/2017-Central Tax (Rate) dated 28th June provides that: Education services (specified under HSN 9992) provided by: (a) the National Skill Development Corporation set up by the Government of India; (b) a Sector Skill Council approved by the National Skill Development Corporation; (c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; (d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council in relation to- (i) the National Skill Development Programme implemented by the Nationa

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. VII.6. Since, the approved educational courses including modified versions and conditional approved educational courses offered, by the Applicant who is an approved training partner of NSDC, are in relation to National Skill Development Programme implemented by NSDC therefore, the Applicant would like to submit that it is eligible for GST exemption in connection with such educational courses, in terms of the Notification. Question of law: (5) If answer to Q.4 is Yes, whether benefit of GST exemption as per notification No. 14/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corporates and business institutions? VIII.1. The Applicant submits that in the present case, the Advance Ruling sought by the Applicant relates to the matter as to: If answer to Q.4 is Yes, whether benefit of GST exemption as per notification No. 12/2017- Central Tax (Rate), dated the 28th June 2017 would be still available if such educational c

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to whom services should be provided so that the benefit of the Notification would be available. The Notification does not specify that the services should be rendered by the approved training partner of NSDC, to individuals or to corporates or to colleges or to Govt. organisations, for availing GST exemption. VIII.5. Accordingly, in absence of any such restriction it is evident that as long as the educational courses offered by the approved training partner are in relation to the National Skill Development Programme implemented by NSDC, GST exemption would be available, irrespective of constitution of the recipient. VIII.6. The Applicant would like to submit that the educational courses which have been approved by NSDC and are reported to NSDC towards achievements of skill development targets of the Applicant and are in relation to the National Skill Development Programme implemented by NSDC, regardless of being offered to business corporates or colleges or individuals and GST exempti

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uch business partners has been appointed by the Applicant with the intention of increasing business and to manage its centers effectively and efficiently. IX.3. The business partners would provide infrastructural and other support services to the Applicant, for agreed fees. In this connection, the Applicant has entered into an agreement with business partners namely, Business Partner Agreement, wherein the scope of services rendered by business partners, responsibility and obligations of both namely, the business partners and the Applicant and other terms and conditions have been listed. Sample copy of the Business Partner Agreement and corresponding invoices raised by such business partners upon the Applicant have been enclosed herewith as Exhibit-10 . IX.4. The key features of the Business Agreement are elucidated below: business partner to conduct educational courses and training services for specified courses, under the instructions of the Applicant, in the designated area, for def

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ssist business partner in preparing time table for programme and services to be rendered in connection therewith. The Applicant shall provide students course material application form, brochure, advertisement materials, student s identity card, login credentials to access course material electronically, to the business partner who in turn will give the same to the students. Business partner is required to maintain financial and Other records in the specified format, as required by the Applicant. The premises that will be used by business partner under the said agreement would be acquired by the Applicant, under a lease arrangement. In other words, the centre will be taken on lease basis for which lease agreement is in the name of the Applicant and the lease rentals will be paid by the Applicant. Business partner is required to make available requisite infrastructure such as office, classroom library, furniture, electricity, other amenities in the specified area as approved by the Appli

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business partner on behalf of the Applicant. In case of any issues, problems, issues faced by the students in course of training, the Applicant would be legally obligated to resolve the same. Copy of the following have been enclosed herewith as Exhibit 11 : agreement entered into between faculty and the Applicant, sample copy of invoice issued by such faculty upon the Applicant, lease agreement between landlord and the Applicant, sample copy of rent receipt issued by such landlord upon the Applicant. IX.6. On simple reading of the aforesaid, it is clearly evident that by and large, all the activities related to the centres run by business partners such as managing faculty, marketing, leasing of centres premises, providing educational materials, etc. are the responsibilities of the Applicant. Applicant has partnered with the business partner to share few of its obligations such as to provide educational courses to students using the materials, curriculum provided by the Applicant and u

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.10. Since the educational courses imparted by business partners are on behalf of the Applicant, accordingly, such educational courses should be construed as being offered and conducted by the Applicant itself. IX.11. The Applicant would like to submit that the education courses which are conducted at centres managed and run by the business partner on behalf of the Applicant, are the same courses which have either been approved or conditionally approved by NSDC or the upgraded versions of such courses. Therefore, every year the Applicant has included such courses while reporting achievement of its skill development targets to NSDC and NSDC has not raised any objection to such inclusion. IX.12. Therefore, education courses imparted at centres by business partners on behalf of the Applicant should be construed as in relation to the National Skill Development Programme implemented by the NSDC and GST exemption should be available on the same. V. Question of law: (7) If answer to Q.6 is Ye

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a Sector Skill Council approved by the National Skill Development Corporation; (c) an assessment agency approved by the Sector Skill Council or the National Skill Development Corporation; (d) a training partner approved by the National Skill Development Corporation or the Sector Skill Council in relation to- (i) the National Skill Development Programme implemented by the National Skill Development Corporation; or (ii) a vocational skill development course under the National Skill Certification and Monetary Reward Scheme; or (iii) any other Scheme implemented by the National Skill Development Corporation transaction X.4. Since, the educational courses by the Applicant through business partners, are in relation to National Skill Development Programme implemented by NSDC therefore, the Applicant is eligible for GST exemption in connection with such educational courses, in terms of the Notification. PRAYER IN ADVANCE RULING Given the facts and circumstances, the Applicant prays before the

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deems fit, proper and reasonable, on the facts of the case, may be granted. The Applicant be granted the opportunity of a personal hearing. 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- IMS Proschool Pvt Ltd the applicant is a company incorporated under the Companies Act, 1956 having its registered office at Mumbai, Maharashtra. The Applicant is an initiative of IMS Learning Resources and offers educational training and skilling courses through classroom training and virtual coaching, in many areas such as data science. Digital marketing, IFRS, ACCA, Fitter-Mechanical Assembly, Basic Electrical, Sales Person Retail etc. across many cities in India Including Mumbai, Pune, Chennai, Bangalore, Delhi, Hyderabad, Gurgaon, Kochi and several districts of Gujarat. The Applicant is engaged, in the business of skilling the youth with the objective of helping them find decent job, make them employable and to help them earn better living

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rporates. The Applicants is an approved training partner of NSDC and till date, 12 educational courses offered by it have been approved by NSDC. Further, 2 educational courses for which QP/NOS have not been defined by NSDC yet, have been conditionally approved by NSDC. All such courses offered by the Applicant are directed for skill development and to increase employability in India. The Applicant has tie-ups with various educational institutes/Govt. organizations, including NSDC.. National Stock Exchange Academy, Symbiosis International University, Indira Institute of Management, Lovely Professional University, Chartered Financial Institute, Chartered Institute of Management Accountant. The applicant has raised following query:- Qs.No. Questions raised by the applicant Submission as per ACT & RULE 1. Whether educational courses offered by the applicant which have been approved by National Skill Development Corporation would be construed as in relation to National Skill Development

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a Sales Associate, one of the NOS would be to To help customers choose right products QPs – A set of NOSs, aligned to a job role, called Qualification Packs (QPs), would be available for every job role in each industry sector. These drive both the creation of curriculum, and assessments. These job roles would be at various proficiency levels, and aligned to the NSQF. Example would be Qualification Pack of a Sales Associate Sector Skill Councils are responsible for the creation of QPs and NOSs. These Occupational Standards are open for public viewing for a month on http://www.nsdcindia.org/nos. All those who have participated in development and validation of standards as well as the industry are informed by the SSC that the Occupational Standards have been published for comments. All comments/ feedback received during the period will be responded to by respective Sector Skill Council under intimation to NSDC. After one month of public viewing, these standards Will be promulgated as Nati

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No.12/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to co orates and business institutions? No. 6. Whether the NSDC approved educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor of Applicant, at various centers located across the country, will be considered as offered by the Applicants? Should be approved by the NSDC not for sub-contract of the applicant. 7. If answer to Q.6 is Yes, whether benefit of GST exemption as per Notification No.12/2017-Central Tax (Rate), dated the 28th June 2017 would be available to the applicant? Should be approved by the NSDC not for sub-contract of the applicant. NSDC (BACKGROUND) : Skill India is an initiative of the Government of India which has been launched to empower the youth of the country with skill sets which make them more employable and more productive in their work environment. Our National S

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ng the last one year. The target to train more than a crore fresh entrants into the Indian workforce has been substantially achieved for the first time. 1.04 Crore Indians were trained through Central Government Programs and NSDC associated training partners in the private sector. For the first time in 68 years of India s independence, a Ministry for Skill Development & Entrepreneurship (MSDE) has been formed to focus on enhancing employability of the youth through skill development. The skill ecosystem in India, is seeing some great reforms and policy interventions which is reinvigorating and re-energising the country s workforce today; and is preparing the youth for job and growth opportunities in the international market. The Hon ble Prime Minister s flagship scheme, Pradhan Mantri Kaushal Vikas Yojana (PMKVY) alone, has till date seen close to 20 lakh people get skilled and prepared for a new successful India. Skill India harbours responsibility for ensuring implementation of C

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es that are being undertaken by NSDC under National Skill Development Programme and submit the same. Jurisdictional Officer, Ms. R. S. lyer Sales Tax Officer appeared and made written submissions. The application was admitted and called for final hearing on 24.04.2018, Sh. Santosh Dalvi, Advocate alongwith Ms. Shradha Didwania, Sh. Sanjay Choudhary CEO, Sh. Ajay Nayak, C.A., Sh. Tanveer Bhagat, C.A. and Ms. Aarti Shetty appeared and made oral contentions as per their written submissions which were taken on record, Jurisdictional Officer, Ms. R. S. lyer Sales Tax Officer appeared and stated that they have already made their written submissions. 05. OBSERVATIONS We have perused the records on file and have gone through the facts of the case and oral and written submissions made by the applicant as well as the department. We find that M/s. IMS Proschool Private Limited, the applicant is a company under the Companies Act. The applicant is claiming that they are in the business of skilling

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ional courses offered by the Applicant which have been approved by National Skill Development Corporation (hereinafter referred to as NSDC ) would be construed as in relation to National Skill Development Programme implemented by NSDC? And in continuation of the same their further query is that whether they are eligible for exemption from GST as per Serial No. 69 of Notification No. 12/2017 Central tax (Rate) dated 28th June 2017 and if so, in respect of which services being provided by them would they be eligible for exemption under Sr.No. 69 of the above said Notification. We find that rest of their queries in the present application would rest on their above two main queries. In view of this we would first be required to ascertain if the educational courses that are being offered by the applicant and approved by NSDC can be taken to be in relation to National Skill Development Programme implemented by NSDC. We find that at the time of the preliminary hearing they were orally request

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ervices of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (I) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table. From the details of the relevant Notification we find that the applicant is claiming that they are eligible for exemption as given in Sr. No. 69 of the above said Notification. We find that the specific exemption that the applicant is claiming is as under:- Any services provided by, _ (a) ………………… (b) ………………… (c) ………………… (d) a training partner approved by the National Skill Development Corporation or the Sector Skill

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wever as no such certificate is produced for the F.Y. 2018-19, and therefore for F.Y. 2018-19, it is not clear whether the applicant continues to be a training partner of M/S NSDC for the current Financial Year. Secondly we are required to examine if the applicant who is an approved training partner of M/s. NSDC is providing any services in relation to National Skill Development Program implemented by M/s. NSDC. With regard to the above we are required to ascertain as to what is the National Skill Development Programme implemented by NSDC. We find that M/s. NSDC is a non-profit company set up by the Ministry of Finance which aims to promote skill development by catalysing creation of large, quality and for profit vocational institutions. For this purpose it – 1. provides funding to build scalable and profitable vocational training initiatives 2. to enable support system which focuses on quality assurance, information systems and train the trainer academies either directly or through pa

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nal Skill Development Corporation (NSDC), has taken up multiple initiatives to connect with industries for partnership under the larger Skill India Mission. NSDC has a single-window facilitation system that offers a unique platform for the industries to partner on various such initiatives. NSDC works with diverse set of stakeholders such as Corporates, Foundations, Government and Community based Organisations in structuring high impact collaborative skill development projects. We find that the benefit of exemption as given at Sr. NO. 69 of Notification 12/2017-CT (Rate) as claimed to be applicable by the applicant in the present case is in respect of any services provided by a training partner approved by the NSDC or the Sector Skill Council in relation to the National Skill Development Program implemented by the NSDC or any other scheme implemented by the NSDC. Thus we find that the matter rests on the fact as to what is National Skill Development Programme implemented by NSDC. We fin

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ance his technical expertise so that he is ready for day one of his job and companies don t have to invest into training him for his job profile. The Skill Mission launched by the Prime Minister on 15 July 2015, has gathered tremendous steam under the guidance of Shri Rajiv Pratap Rudy, Union Minister of State for Skill Development and Entrepreneurship, during the last one year. The target to train more than a crore fresh entrants into the Indian workforce has been substantially achieved for the first time. 1.04 Crore Indians were trained through Central Government Programs and NSDC associated training partners in the private sector. For the first time in 68 years of India s independence, a Ministry for Skill Development & Entrepreneurship (MSDE) has been formed to focus on enhancing employability of the youth through skill development. The skill ecosystem in India, is seeing some great reforms and policy interventions which is reinvigorating and re-energising the country s workfor

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t of the government policy on Sabka Saath, Sabka Vikaas and its commitment to overall human resource development to take advantage of the demographic profile of our country s population in the coming years. Developing a comprehensive and holistic policy document is an integral part of the process. This requires a fresh look at the already existing National Policy on Skill Development (NPSD), 2009. The objective of the National Policy on Skill Development and Entrepreneurship, 2015 will be to meet the challenge of skilling at scale with speed and standard (quality). It will aim to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common standards and link the skilling with demand centres. In addition to laying down the objectives and expected outcomes, the effort will also be to identify the various institutional frameworks which can act as the vehicle to reach the expected outcomes. The national policy will also provide clar

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s being provided by them are not in relation to and are not covered under (ii) A Vocational Skill Developmental Course under the National Skill Certification and Monetary Reward Scheme (iii) Any other scheme implemented by the NSDC. Thus it is clearly stated by them that they are not covered and are not eligible for exemption under Sr No (ii) and (iii) as mentioned in Sr. No. 69 of Notification 12/2017-CentraI Tax. We find that the applicant is further claiming in their application that NSDC has not announced explicitly any course programme which would be considered as part of National Skill Development Programme implemented by NSDC, It is reiterated that at the time of hearing they were requested to confirm and obtain in writing from NSDC as to what are the programmes that are being undertaken by NSDC under National Skill Development Programme and submit the same. However nothing in this regard had been submitted by the applicant from NSDC. Therefore in absence of any explicit Nationa

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programme is being implemented by NSDC it would mean that the services are being provided to NSDC by the applicant with respect to implementation of its programme related to National Skill Development Programme. But from the facts of the case as put up by the applicant before this authority, we find that some of the courses of vocational training that have been designed by the applicant are approved and certified by NSDC and thus we find that the services in this respect being in the nature of approval and certification of course being provided by NSDC to the applicant and not by the applicant to NSDC and thus there is no question of the applicant being eligible for any exemption in this respect as they are a services recipient and not service provider in relation to NSDC. In addition to this we also find secondly that, the claim of the applicant with respect to GST is also made by the applicant basing their contentions on the premise that there is no explicit National Skill Developme

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pment and Entrepreneurship, 2015 provides as under:- Scope of the National Skill Development Policy a) Institution based skill development including ITIs/ITCs/vocational schools/ technical schools/ polytechnics/ professional colleges, etc. b) Learning initiatives of sectoral skill development organized by different ministries/departments. c) Formal and informal apprenticeships and other types of training by enterprises. d) Training for self-employment/ entrepreneurial development. e) Adult learning, retraining of retired or retiring employees and lifelong learning. f) Non-formal training including training by civil society organisations. g) E- web-based learning and distance learning. The objective of the National Policy on Skill Development and Entrepreneurship, 2015 will be to meet the challenges of skilling at scale with speed and standard (quality). It would aim to provide an umbrella framework to all skilling activities being carried out within the country, to align them to common

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lopment Mission would not only consolidate and coordinate skilling efforts, but also expedite decision making across sectors to achieve skilling at scale with speed and standards. It will be implemented through a streamlined institutional mechanism driven by Ministry of Skill Development and Entrepreneurship (MSDE). Key institutional mechanisms for achieving the objectives of the Mission have been divided into three tiers, which will consist of a Governing Council for policy guidance at apex level, a Steering Committee and a Mission Directorate (along with an Executive Committee) as the executive arm of the Mission. Mission Directorate will be supported by three other institutions: 1. National Skill Development Agency (NSDA). 2. National Skill Development Corporation (NSDC) and 3. Directorate General of Training (DGT) – all of which will have horizontal linkages with Mission Directorate to facilitate smooth functioning of the national institutional mechanism. Seven sub-missions have be

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country – Industrial Training Institutes – play a vital role in the economy by providing skilled manpower in different sectors with varying levels of expertise. IT Is are affiliated by National Council for Vocational Training (NCVT). DGT also operationalises the amended Apprentices Act, 1961. 2. National Skill Development Agency (NSDA) The National Skill Development Agency (NSDA), an autonomous body, (registered as a Society under the Society s Registration Act 1860) was created with the mandate to co-ordinate and harmonise the skill development activities in the country, is part of the Ministry of Skill Development & Entrepreneurship (MSDE). Functions : Gazette Notification of NSDA Take all possible steps to meet skilling targets as envisaged in the 12th Five Year Plan and beyond. Coordinate and harmonize the approach to skill development among various Central Ministries/ Department. State Governments, the NSDC and the Private sector. Anchor and operationalize the NSQF to ensure

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are as under: 1. Rationalization of the Skill Development Schemes of the Government of India 2. Creation of an integrated Labour Market Information System 3. Engagement with States 4. Skills Innovation Initiative 3. National Skill Development Corporation The National Skill Development Corporation India (NSDC) was setup as a one of its kind, Public Private Partnership Company with the primary mandate of catalysing the skills landscape in India. NSDC is a unique model created with a well thought through underlying philosophy based on the following pillars: 1. Create: Proactively catalyse creation of large, quality vocational training institutions. 2. Fund: Reduce risk by providing patient capital. Including grants and equity. 3. Enable: the creation and sustainability of support systems required for skill development. This includes the Industry led Sector Skill Councils. The main objectives of the NSDC are to: Upgrade skills to international standards through significant industry involv

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International Engagement – Investments, technical assistance, transnational standards, overseas jobs and other areas. Central Ministries – Participation in flagship programmes like Make in India, Swachh Bharat, Pradhan Mantri Jan Dhan Yojana, Smart City, Digital India and Namami Ganga, among many others. State Governments – Development of programs and schemes, alignment to NSQF and capacity building, operationalization Of program, capacity building efforts among others. University/SchooI systems – Vocationalisation of education through specific training programs, evolution of credit framework, entrepreneur development, etc. Non-profit organizations – Capacity building of marginalized and special groups, development of livelihood, self-employment and entrepreneurship programs. Innovation – Support to early-stage social entrepreneurs working on innovative business models to address gaps in the skilling ecosystem, including programs for persons with disability. Over 5.2 million students t

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stem (SDMS) with 1400 training partners, 28179 training centres, 16479 trainers, 20 Job portals, 77 assessment agencies and 4983 empanelled assessors. Hosting infrastructure certified by ISO 20000/27000 supported by dedicated personnel. 4. National Skill Development Fund The National Skill Development Fund was set up in 2009 by the Government of India for raising funds both from Government and Non Government sectors for skill development in the country. The Fund is contributed by various Government sources, and other donors/ contributors to enhance, stimulate and develop the skills of Indian youth by various sector specific programs. A public Trust set up by the Government of India is the custodian of the Fund. The Trust accepts donation, contribution in cash or kind from the Contributors for furtherance of objectives of the Fund. The Fund is operated and managed by the Board of Trustees. The Chief Executive Officer of the Trust is responsible for day-to- day administration and manage

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rainer Programs, conduct skill gap studies and Assess and Certify trainees on the curriculum aligned to National Occupational Standards developed by them. As on date 37 Sector Skill Councils are operational. There are over 600 Corporate Representatives in the Governing Councils of these SSCs. In view of the above we clearly find that in broader terms there is National Policy on Skill Development which is very broad and has a very broad vision as well. It envisions the establishment of a National Skill Development initiatives with the following mission:- National Skill Development initiative will empower all individuals through improved skills, knowledge, nationally and internationally recognized qualifications to gain access to decent employment and ensure India s competiveness in the global markets. Within this broad policy framework, there is National Skill Development mission launched on 15.07.2015 by the Hon ble Prime Minister. The mission has been developed to create convergence a

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undertaken through Government funding, Government Schemes and specifically designed Government Programmes. We find that National Skill Development Programme would consist of the schemes, actions and deeds that are actually done or are mandated to be done by various ministries, Government departments or their attached offices, Directorates or other institutions as per their instructions and for which expenses in that regard are to be incurred by the Central or State Governments through budgetary provisions. The intent of the Notification No. 12/2017-CT as discussed above provides that exemption would be available only in respect of Any services provided by a Training partner approved by National Skill Development Corporation in relation to the National Skill Development Programme implemented by the NSDC. Here it would be worth to mention that NSDC is a non-profit company set up by the Ministry of Finance and its mandate is to promote Skill development in various ways and it is undertak

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ps Ability to leverage financial requirements Ability to leverage management capability Thus we find that the above functions of NSDC are in the nature of encouraging and supporting private sector in skill development which is also one of its mandate and functions. Apart from this it is also the implementing agency for various schemes such as Pradhan Mantri Kaushal Vikas Yojana , Sankalp, Udaan, etc. Thus it can be easily seen that if the intent of the Legislature had been to extend the benefit of exemption of present Notification in respect of all activities in relation to skill development done by NSDC, in that case the wordings Of the Notification would not have been restrictive, which is very clear when we see that in the Notification, exemption benefit is restricted and would be applicable only in respect of services provided in relation to national Skill Development Programme implemented by NSDC. In continuation of the above discussion, we find that the main schemes that would be

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ces and organizations and cannot in any way be construed to be including each and every activity under the sun which enhances skills in one way or other. 06. In view of the deliberations as held hereinabove, we pass the order as under : ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-37/2017-18/B-44 Mumbai, dt. 05.06.2018 For reasons as discussed in the body of the order, the question is answered thus – Q.1. – Whether educational courses offered by the Applicant which have been approved by National Skill Development Corporation (hereinafter referred to as NSDC ) would be construed as in relation to National Skill Development Programme implemented by NSDC? Answer:- Answered in the negative. Q.2. – The Applicant offers certain educational courses for which qualification standards / framework i.e. QP/ NOS has not been defined by NSDC and will be approved by NSDC as and when the relevant QP/ NOS would

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cant? Answer :- No, in view of answers to Q.No. 1, 2 and 3 above. Q.5. – If answer to Q.4 is Yes, whether benefit of GST exemption as per Notification No. 17/2017-Central Tax (Rate), dated the 28th June 2017 would be still available if such educational courses are offered to corporates and business institutions? Answer:- No, in view of answers to Questions above. Q.6.- Whether the NSDC approved educational courses which are actually imparted by the business partners of the Applicant, on behalf of the Applicant as sub-contractor of Applicant, at various centres located across the country, will be considered as offered by the Applicant? Answer:- Not relevant and not being answered in view of the answers to question above. Q.7. – If answer to Q.6 is Yes, whether benefit of GST exemption as per Notification No. 17/2017- Central Tax (Rate), dated the 28th June 2017 would be available to the Applicant? Answer:- No, in view of answers to Questions above. – Case laws – Decisions – Judgements

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2018 (9) TMI 367 – ALLAHABAD HIGH COURT – [2018] 2 GSTL 42 (All) – Seizure of goods – seizure order does not disclose the specific provision of law which has been violated in transporting the goods – Held that:- Learned Standing Counsel may seek instructions in the matter and file counter affidavit within a month. The petitioner may file rejoinder affidavit, if any, within two weeks thereafter – In the meantime the goods seized along with vehicle shall be released forthwith on furnishing security other than cash or bank guarantee equivalent to the amount of tax and penalty imposed. – WRIT TAX No. 904 of 2018 Dated:- 5-6-2018 – Mr. Pankaj Mithal and Mr. Jayant Banerji, JJ. Counsel for Petitioner :- Aditya Pandey Counsel for Respondent :-

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2018 (8) TMI 1573 – CESTAT CHENNAI – TMI – CENVAT credit – input services – GTA Service – place of removal – Held that:- The definition of input service underwent an amendment from 1.4.2008 where the words “from place of removal” was substituted with “upto place of removal” – the GTA services upto the buyer’s premises would not be eligible after 1.4.2008 – appellant would not be eligible for credit on outward transport upto buyers premises after 1.4.2008.
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CENVAT credit – inward transportation – time limitation – Held that:- The department has failed to adduce any evidence to establish that the appellants have evaded duty by suppressing facts. Hence, appeal succeeds on limitation – appellant is liable to pay duty for the two months period beyond the normal period. – However, that being an interpretational issue, the penalty in respect of these months cannot sustain.
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Appeal allowed in part. – Appeal No. E/42488/2017 – Final Order No. 41719/2018 – Dated:- 5-6-2018 – Ms. Sulek

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before as well as after 1.4.2008. The issue with regard to the eligibility of credit on GTA service used for transportation of goods from the place of removal to buyer s premises has been considered in the case of Commissioner of Central Excise & Service Tax Vs. Ultra Tech Cement Ltd. – 2018 (9) GSTL 33 (SC). He submitted that the Hon ble Supreme Court has held that prior to 1.4.2008, an assessee would be eligible for credit of GTA service upto the buyer s premises whereas after 1.4.2008, the same would not be eligible pursuant to the amendment. It was also argued by him that the department has raised the demand disallowing the credit on inward transportation also. The definition of input service is very much clear that all the services which are used in or in relation to manufacture are eligible for credit. The inward transportation was used for bringing the inputs into the factory and therefore such activities being directly related to the activity of manufacturing, credit cannot

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ute, the decision laid down in the case of ABB Ltd. as well as Ultra Tech Cement Ltd. was in force and therefore the appellant had availed the credit on the bonafide belief that they are eligible for credit. Only after the decision of the Hon ble Supreme Court in the Ultra Tech Cement Ltd. (supra), the same has been held to be not eligible. The argument of the ld. Counsel is not without substance. The issue was in litigation and being an interpretational issue, it cannot be said that the appellants have suppressed facts to evade payment of duty. The department has failed to adduce any evidence to establish that the appellants have evaded duty by suppressing facts. Hence, appeal succeeds on limitation. The appellant is liable to pay duty for the two months period beyond the normal period. However, that being an interpretational issue, the penalty in respect of these months cannot sustain. 7. In the result, the impugned order is modified to the extent of setting aside the demand on the g

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2018 (8) TMI 1494 – CESTAT CHENNAI – TMI – 100 % EOU – Exit from the 100% EOU scheme – duty liability to be paid by the appellants on in-process goods lying in stock – Held that:- The ratio laid down by the Tribunal in Tirumala Seung Han Textiles Ltd. [2008 (9) TMI 252 – CESTAT BANGALORE] will apply on all fours to the appeal on hand, where it was held that when appellant is opting out of scheme, demand in respect of in-process goods not justified – appeal dismissed – decided against Revenue. – E/713/2010 & E/CO/71/2010 – FINAL ORDER No. 41754/2018 – Dated:- 5-6-2018 – Shri Madhu Mohan Damodhar, Member (Technical) And Shri P. Dinesha, Member (Judicial) Shri K.P. Muralidharan, AC (AR) for the Appellant Ms. Cynduja Crishnan, Advocate, for the Respondent. ORDER Per: Madhu Mohan Damodhar The respondents were a 100 % EOU manufacturing neem based pesticides and organic fertilizers out of raw materials procured indigenously. They applied for exit from 100% EOU scheme for which the Developmen

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nfirmed by the original authority. The Revenue has come in appeal against the setting aside of the demand in respect of the in-process materials. Respondents have also filed cross-objection against upholding of the remaining demand amounting to ₹ 88,97,261/-. 2. Today when the matter came up for hearing, the Ld. AR Shri K.P. Muralidharan, AC, reiterated the grounds of appeal. He drew our attention to Chapter 22 of the Central Excise & Customs Manual as per which, apart from the finished goods, raw materials and semi-finished goods, which were lying at the time of debonding had to be cleared on payment of duty. The Ld. AR further submits that the goods in-process are nothing but semi-finished goods. 3. For the respondents, Ld. Advocate, Ms. Cynduja Crishnan, submits that appellant is not pressing the prayers made in the cross-objection with respect to duty demand upheld by the Commissioner (Appeals). However, in respect of the demand made in respect of in-process goods, she po

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indigenous capital goods, raw materials, components, consumables, spares and finished goods in stock are mentioned. There is no mention about the in-process goods. In the absence of the mention of the in-process goods in the policy, there is no authority for demanding duty on the in-process goods. Hence, we set aside the demand of duty on the in-process goods. As informed by the Ld. Advocate, the appeal filed by the department against this decision has been dismissed by the Hon ble High Court of AP. 6. We do not find any new grounds or reasons to deviate from the ratio already laid down in Tirumala Seung Han Textiles Ltd. (supra). 7. In the event, there is no infirmity in the order of the lower appellate authority, for which reason the department appeal is dismissed. 8. The cross-objections filed by the respondent are dismissed as not pressed. (Order dictated and pronounced in the open Court) – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia –

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GST – States – D.C. (A&R)-2/GST/PWR/Sections/2017-18/ADM-8 – Dated:- 5-6-2018 – COMMISSIONER OF STATE TAX, MAHARASHTRA STATE, GST Bhavan, Mazgaon, Mumbai 400 010, dated the 5th June 2018. Order MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017. No. D.C. (A&R)-2/GST/PWR/Sections/2017-18/ADM-8.-In exercise of the powers conferred by sub-sections (1) and (3) of section 5 read with clause (91) of section 2 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), the Commissioner of

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GST – States – D.C. (A&R)-2/GST/PWR/Sections/2017-18/ADM-8 – Dated:- 5-6-2018 – COMMISSIONER OF STATE TAX, MAHARASHTRA STATE GST Bhavan, Mazgaon, Mumbai 400 010, dated the 5th June 2018. Order MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017. No. D.C. (A&R)-2/GST/PWR/Sections/2017-18/ADM-8.-In exercise of the powers conferred by sub-sections (1) and (3) of section 5 read with clause (91) of section 2 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), the Commissioner of S

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GST – States – D.C. (A&R)-2/GST/PWR/Sections/2017-18/ADM-8 – Dated:- 5-6-2018 – COMMISSIONER OF STATE TAX, MAHARASHTRA STATE, GST Bhavan, Mazgaon, Mumbai 400 010, dated the 5th June 2018. Order No. D.C. (A&R)-2/GST/PWR/Sections/2017-18/ADM-8.-In exercise of the powers conferred by sub-sections (1) and (3) of section 5 read with clause (91) of section 2 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), the Commissioner of State Tax, Maharashtra State, hereby with effe

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2018 (7) TMI 328 – BOMBAY HIGH COURT – 2018 (362) E.L.T. 993 (Bom.) – Attachment of Bank Property – penalty u/r 209A of the Central Excise Rules 1944 – petitioner retired from the firm but penalty was levied on the petitioner as a partner of M/s. Mukesh Dye Works – Held that:- Once that order is set aside and in which it included a personal penalty of ₹ 2 lakhs, we do not see how the Department can pursue that demand by attaching the bank account of the petitioner. More so, the petitioner's retirement from the firm with effect from 27th April 1990 is undisputed. Therefore, the request to the petitioner to pay a sum which is of ₹ 2 lakhs, but as a penalty under the order in original which was set aside does not arise at all. All that the petitioner is liable to pay is the balance sum stated before us by Mr. Dharmadhikari – petition disposed off. – Writ Petition No. 12216 of 2017 Dated:- 5-6-2018 – S.C. DHARMADHIKARI & SMT. BHARATI H.DANGRE, JJ. Mr. Hemant G. Dharmadhik

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ership firm has no existence independent that of the partner and that the partner until his retirement or resignation continues to be liable, still, the firm challenged the order of adjudication in appeal. That order in original was set aside by the Tribunal. Thereafter, the demand of tax did not survive. If the demand of tax or the liability or debt in that behalf did not survive, there was no question of imposition of any penalty. Hence, the penalty also does not survive. 4. As far as the past dues of the department is concerned from two bank accounts, a sum of ₹ 4,74,000/has already been appropriated or adjusted by the Revenue and the balance sum is of ₹ 7,76,708/which the petitioner will pay in a period of six months, but on payment, the attachment be raised. 5. On all these factual matters and aspects, we do not find that in the affidavit in reply, the respondents have brought material controverting it. In fact, it is stated that an order in original was passed confirm

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was set aside by the Tribunal. 6. Once that order is set aside and in which it included a personal penalty of ₹ 2 lakhs, we do not see how the Department can pursue that demand by attaching the bank account of the petitioner. More so, the petitioner's retirement from the firm with effect from 27th April 1990 is undisputed. Therefore, the request to the petitioner to pay a sum which is of ₹ 2 lakhs, but as a penalty under the order in original which was set aside does not arise at all. All that the petitioner is liable to pay is the balance sum stated before us by Mr. Dharmadhikari. 7. In the aforesaid circumstances, this writ petition is disposed of with a direction to the petitioner to pay the balance sum as computed above within a period of three months from today and report compliance to the Commissioner. In the event compliance is reported, the attachment of the bank account shall stand raised and thereafter, the petitioner shall operate the said bank account. In t

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