Goods and Services Tax

In Re: M/s. Victory Comfort Products,
GST
2018 (10) TMI 349 – AUTHORITY FOR ADVANCE RULING, HYDERABAD TELANGANA – 2018 (18) G. S. T. L. 100 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, HYDERABAD TELANGANA – AAR
Dated:- 20-7-2018
TSAAR Order No. 8/2018, A. R. Com/1/2017
GST
SRI J. LAXMINARAYANA, AND SRI V. SRINIVAS, IRS, MEMBER
Under Section 100(1) of the CGST/TGST Act, 2017, any person aggrieved by this order can prefer an appeal before the Telangana State Appellate Authority for Advance Ruling, Hyderabad, within 30 days from the date of receipt of this Order.
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I. M/s. Victory Comfort Products, Mahbubnagar, (GSTIN No. 36AAFFV3331C1ZJ) has filed an application under Section 97(1) of TGST Act, 2017 read with Rule 103 of CGST/TGST Rules, 2017and sought advance ruling on Rate of Tax on “Coir Sheets / Rubberised Coir sheets or Blocks.
II. The applicant submitted the application in Form GST ARA-01 and Statement containing the applicant's interpretation of la

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zanized in a chamber for activation of chemicals and removal of moisture.
4. Now this sheet is taken for size cutting and side trimming in required sizes as per market requirements. End Use – Carpet underlaying, packaging, mattress layers etc.
5. Further they have submitted that their product falls under HSN code 9404. It is a pure natural product made out of waste coconut fibre and natural latex, at present they are taxing it @ 12%, under coir products (other than mattresses), but as per new government GST Notification the same falls under 5% tax category.
6. Therefore, it was requested that, whether they should tax it at 5% or 12% for the above product.
IV. The issue has been examined with reference to the information provided by the applicant and found that the applicant is dealing with products made of coir fibre. In the submissions made by the applicant they have stated that the end use of their products that are being manufactured are in Carpet underlaying, packaging, mattres

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overed” are covered under schedule III to Notification No.1/2017 2017-Central Tax (Rate), dated 28.6.2017 as amended , and even the mattress layers needs to be classified in the Tariff heading 9404 covered under Schedule III to the Notification referred above, the applicant has been asked during the time of personal hearing to produce copy of the product catalogue to decide the correct rate of tax applicable. If the product is being used in manufacturing Mattresses, then it attracts rate of duty applicable under schedule III of the Notification No.1/2017-Central Tax (Rate), dated 28.6.2017 as amended. As the applicant has not produced the catalogue, a letter dated 09.07.2018 was also issued to the applicant to produce the catalogue. But the applicant has not produced the catalogue or any further information to decide the issue raised in their application.
4. Since the applicant has not produced the required information even after giving enough time, the issues raised in their applicat

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In Re: M/s. Susheela Agrovet,
GST
2018 (10) TMI 344 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – 2018 (18) G. S. T. L. 99 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – AAR
Dated:- 20-7-2018
TSAAR Order No. 9/2018, A. R. Com/15/2018
GST
SRI J. LAXMINARAYANA, AND SRI V. SRINIVAS, IRS, MEMBER
Under Section 100(1) of the CGST/TGST Act, 2017, any person aggrieved by this order can prefer an appeal before the Telangana State Appellate Authority for Advance Ruling, Hyderabad, within 30 days from the date of receipt of this Order.
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M/s. Susheela Agrovet, 198/A, Bailampur village, Mulugu mandal, Telangana-502278 registered under GSTIN No.36ABKFS3956N1ZD has filed an application in Form GST

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0505 of the Customs Tariff heading as the said heading covers “Skins and other parts of birds, with their feathers or down, feathers and parts of feathers (whether or not with trimmed edges) and down, not further worked than cleaned, disinfected or treated for preservation; powder and waste of feathers or parts of feathers”. As the rules for interpretation of Customs Tariff Act, 1975 was made applicable to GST Tariff, the goods “Chicken intestine waste” are classifiable under heading 0505 of the GST Tariff.
The issue raised in the application has been examined with reference to the provisions of the CGST/TGST Act, 2017 and the Rules made there under and the notifications issued till date; and the Advance Ruling is given as under:
The HSN

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M/s. SMS Shelters (P) Ltd. Versus Commissioner of GST & Central Excise Coimbatore
Service Tax
2018 (9) TMI 829 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 20-7-2018
Appeal No. ST/218/2011 – Final Order No. 42045/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Ms. D. Naveena, Advocate for the Appellant
Shri B. Balamurugan, AC (AR) for the Respondent
ORDER
Per Bench
Brief facts are that the appellants are providing construction service and are registered with the department for Commercial or Industrial Construction Service on 16.12.2005 and did not get registered for Residential Complex Service. Show cause notice was issued demanding an amount of

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nefit of Notification No.1/2006-ST dated 1.3.2006 which shows that the contract is a composite contract and the Tribunal held that the activity undertaken by the appellant would fall under works contract service for the previous period from 16.6.2005 to 30.9.2007 vide Final Order No. 41509/2017 dated 3.8.2017. She submitted, however, the appellant is only contesting the penalty imposed under section 76 in the present appeal. It is her case that the entire service tax has been paid along with interest. The appellant has made full disclosure in the ST-3 returns filed by them, which is relied for issuance of the show cause notice. Therefore, it is only a case of belated payment of tax since during the period, there was serious doubt as to the

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that the appellants have not paid the service tax within the due date and penalty imposed under section 76 is legal and proper.
4. Heard both sides.
5. The ld. counsel for the appellant has submitted that they are contesting only the penalty imposed under section 76 of the Finance Act. It is brought out from evidence that there is no intention to evade payment of service and that it was only a delay in payment of service tax. Further, during the relevant period, the issue whether the construction of residential complex service was taxable was under much dispute and being an interpretational issue, the contention of the appellant that they had bonafide belief regarding the classification and payment of service tax is not without force. Th

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In Re : M/s. Ginni Filaments Limited
GST
2018 (9) TMI 696 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (16) G. S. T. L. 648 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – AAR
Dated:- 20-7-2018
05/2018-19 in Application No. 02/2018-19
GST
VIPIN CHANDRA AND AMIT GUPTA, MEMBER
Present for the applicant: R.S. Sharma, Adv.
Present for the Jurisdictional Officer: None
1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 and the rules made thereunder filed., by M/s. Ginni Filament Private Limited, Plot No.98, Sector-5, IIE, SIDCUL, Haridwar having Drugs and Cosmetics License Number 7/C/UA/2017 dated 2.4.03.2017 and seeking an advance ruling on HSN classification under the GST Schedule as well as the GST rates of the below mentioned products which the applicant is engaged in manufacturing and supply to its various customers in the State of Uttarakhand and outside of the state.
a. Wet Baby Wipes.
b. Wet Face

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r services or both
(f)  Whether the applicant is required to be registered
(g)  Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term
4. As per section 97(2) (a) & (e) of CGST/SGST Act, 2017 the advance ruling can be given on “classification of any goods or services or both”, and determination of the liability to pay tax on any goods or services or both” respectively. In the present case applicant has sought advance ruling on HSN classification under the GST Schedule as well as the GST rates of the aforementioned products which the applicant is engaged m manufacturing and supply to its various customers in the State of Uttarakhand and outside of the state, details of which are as.
a.  Wet Baby Wipes
b.  Wet Face Wipes.
c.  Bed and Bath Towels.
d.  Shampoo Towels.
Therefore, in terms of said Section 97(2) of CGST/

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assification of products i.e Wet wipes, Bed & Bath Towels & Shampoo Towel respectively.
8. The applicant has requested to classify the following goods under the GST Regime quoting the reason of overlapping entries in the GST Schedule as notified by the Notification No. 1/2017-Central Tax(Rate) dated 28.06.2017 and Notification No. 1/2017- State Tax (Rate) dated 30.06.2017 as amended vide Notification No.41/2017-Central Tax (Rate) dated 14.11.2017 and the Notification No. 41/2017-State Tax(Rate) dated 14.11.2017 (“herein collectively referred to as the 'Rate Notifications”):
a.  Wet Baby Wipes.
b.  Wet Face Wipes.
c.  Bed and Bath Towels.
d.  Shampoo Towels.
9. Now we will discuss the above mentioned products one by one.
(A) Wet Baby Wipes
It consist of Non-woven spun lace fabric of 40-60 grams per square made from 60-70% viscose (regenerated cellulose) fiber +30%-40% polyester fiber of standard size 150 mm x 200 mm. Details of ingredients and functions a

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g felt and nonwovens, impregnated, coated or covered with soap or detergent, whether or not perfumed or put up for retail sale, falls under HS code 3401 and attracts 28% GST. With effect, from 15.11.2017. it attracts 18% GST; (Notification 41/2017-Cental Tax (Rate))
(ii) And those consisting of wadding, felt and nonwoven impregnated, coated or covered with perfume or cosmetics fall under HS code 3307 and attracts 18% GST (Notification 41/2017-Central Tax (Rate))
Hence, there is no more scope left for further discussion over this issue and accordingly the “Wet Face Wipes” is to be classified as under the HSN code- 3307 and as on date it will attract 18% GST rats.
(B) Wet Face Wipes
Similar to the product “Wet Baby Wipes”, mentioned above at serial (A), the product in question namely “Wet Face Wipes” consists of Non-woven spun lace fabric of 40-60 grams per square made from 60-70% viscose(regenerated cellulose)fiber +30%-40% polyester fiber of standard size 150 mm x 200 mm. Details

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ts in this case are almost same and function founds to be same.
Hence, as discussed supra, wet face wipes will fall under HSN code-3307 and as on date it will attract GST @ 18%..
(C) Bed and Bath Towels
Under this category in respect of the composition of materials, size and use of the goods details provided by the applicant is reproduced hereunder as:
It consist of Non-woven spun lace fabric of 40-60 grams per square meter of standard size 300 mm x 240 mm. Details of ingredients and functions are as follows:
TABLE-C
Ingredients
Functions
Aqua
Solvent
Chlorhexidine Gluconate 20%
Anti- bacterial
Propylene glycol
Solvent
Euxyl K703
Preservatives
Glycerine
Moisturiser
Polysorbate-20
Solubiliser
Dehytone Dc
Cleansing Agent
Cocamidopropylbetaine
Cleansing Agent
Alolvera Gel
Skin Conditioner
Dc-193
Skin Conditioner
Peg-40 Hydrogenated Castor oil
Solubiliser
Sodium Gluconate
Chelating Agent
Fragrance
Fragrance
Citric Acid
Buffering Agent
The basic function

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felt and nonwovens, impregnated, coated or covered with perfume or cosmetics; animal toilet preparations.
3307- Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations depilatories and other perfumery cosmetic or toilet preparations, not elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties; such as Pre-shave, shaving or after-shave Preparations, Shaving cream, Personal deodorants and antiperspirants”
(ii) Classification under Chapter 34
340130- Organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap [paper, wadding felt and nonwovens, impregnated, coated or covered with soap or detergent]”
“3402- Organic surface active agents (other than soap), surface-active preparations, washing preparations (including auxiliary washing preparations) and cleaning preparations, whether or not contai

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d further the addition of the 'Chlorohexidine Gluconate 20% enhances its function as “disinfectant” who kill the bacteria alongwith the 'fragrance' to make the person to feel better. Basically, the conclusion is that the product reflects its primary function which is “clean the skin”.
The basic fundamental principle of classification is guided by the Schedule of Tariff in the section notes and tariff notes. The description in each of the Chapters is the basic criteria for the purpose of classification. Now we take the issue as under:
3307: The Chapter note 4 in chapter 33 provides the expression cosmetic or toilet preparations” m heading 3307 applies, inter alia, to the, wadding felt and nonwovens, impregnated, coated or covered with perfume or cosmetics. Further Chapter note 3 of Chapter 33 indicates that terms of heading Nos. 33.03 to 33.07 apply, inter-alia, to products whether or not mixed (other than aqueous distillates and aqueous solutions of essentials oils), suit

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ons [e.g perfumes or cosmetics (Chapter 33)]
On a clear look of the items in the above headings, we note that classification of an item has to be under the heading of those items where it can be placed and can find a most suitable heading. Accordingly we find that product viz “bed and bath towel' merit classification in Chapter heading 3307 in as much as the other chapter headings (supra) do not give 'Bed and Bath Towels” its essential character i.e. ' cleaning and bathing” and the said product also covered in chapter note 4 of Chapter 33, Further, the basic nature and working of the product “Bed and Bath wipes” is almost the same as that of wet face wipes i.e. gently cleaning the skin by removing the dirt and moistening it , The said product is also impregnated in the form of lotion over the non-woven fabric. The rate of GST as on date is 18%.
(D) Shampoo towels
For this category, the composition of materials, size and use of the goods provided by the applicant is repro

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ble Apex Court judgment dated 13.04.2018 in CIVIL APPEAL NO. 1766 OF 2009 in the case of COMMISSIONER OF CENTRAL EXCISE VERSUS MADHAN AGRO INDUSTRIES (I) PVT. LTD = 2018 (4) TMI 721 – SUPREME COURT held that:
“(i) The Heading 33.05 covers “preparations for use on the hair”. Coconut oil is not a preparation for use on the hair. It is fixed vegetable oil capable of being used as cooking medium (or for other purposes including for application on the hair). In the absence of any proof that it is specially prepared for use on the hair or any label/literature/indications on the containers to that effect, the subject goods cannot be classified under heading 3305 simply because they were packed in small containers and applied by some sections of the society on the hair.
(ii) Coconut oil, whether pure or refined and whether packed in small or large containers merits classification under Heading 1503.
(iii) Only if the containers bear labels/literatures etc. indicating that it is meant for ap

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In Re: East Hooghly Polyplast Pvt. Ltd.
GST
2018 (8) TMI 874 – AUTHORITY FOR ADVANCE RULINGS WEST BENGAL – 2018 (15) G. S. T. L. 710 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS WEST BENGAL – AAR
Dated:- 20-7-2018
ARN No. 13 of 2018 – 12/WBAAR/2018-19
GST
VISHWANATH AND PARTHASARATHI DEY JJ.
Applicant's representative heard Sri Joydeep Dutta, Authorized Representative
1. The Applicant is stated to be a manufacturer of tarpaulins made from High Density Polyethylene (hereinafter referred to as “HDPE”) a woven fabric seeks a Ruling on whether “HDPE Woven Tarpaulin” will be classified under HSN 6306 of the GST Tariff. Advance Ruling is admissible on this question under Section 97(2) (a) of the CGST/WBGST Acts, 2017 (hereinafter referred to, collectively, as “the GST Act”).
The Applicant further submits that the question raised in the Application is neither decided by nor is pending before any authority under any provisions of the GST Act.
The officer concerned ra

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ectorate of Textiles, Govt of West Bengal, granting Registration No 191230001 to the Applicant.
In communication dated 25.05.2018 to the Joint Commissioner of State Tax, Serampore, Hooghly, the Applicant has referred to letter no 1(11)/2015/TTC/42 dated 21.12.2015 issued by the Office of the Textile Commissioner, Mumbai, Ministry of Textiles confirming allotment as a Technical Unit with Registration No 20102008.
No copy of the Registration Certificate has been provided with the Application.
It is also seen that the Bureau of Indian Standards, Manic Haven, 9 Abrader Shah Afar Margi, New Delhi-110002, has issued Licence under CML No 5713971 valid up to 15.09.2018 to the Applicant for the product Tarpaulin made from High Density Polyethylene Woven Fabric, Multi Layer.
The License has been issued under IS 7903:2017 [Textiles – Tarpaulins Made From High Density Polyethylene (HDPE) Woven Fabrics – Specification]  
4. It, therefore, remains to be seen whether or not the Licenses iss

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uch monofilament or strip (chapter 46)”
Note 1 (h) to Section XI of the Tariff Act states that the Section of Textile and Textile Articles covering Chapters 50 to 63 does not include, “Woven, knitted or crocheted fabrics, felt or nonwovens, impregnated, coated, covered or laminated with plastics, or articles thereof, of chapter 39”
Thus, to be included in Chapter 63, the width of the tapes, manufactured from Plastics or articles thereof of Chapter 39, used to weave the fabric should be less than or equal to 5mm and should not be impregnated, coated, covered or laminated with plastics or articles thereof, of chapter 39. Tariff Head 6306 covers “Tarpaulins, awnings and sun blinds; tents; sails for boats, sailboards or land craft; camping goods”
7. Since HDPE falls under Chapter 39, keeping in mind the Section Notes and the Tariff Heading description it is, therefore, important to ascertain, both, the width of the fabric strip that goes into the weaving and whether or not the tapes are

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ring of HDPE tape from HDPE granules, weaving of the tape into fabrics, and lamination with LDPE sheets/film.
9. Specifications of IS 6899 : 1997 under which BIS lays down specifications for 'Textiles – High Density Polyethylene (HDPE) Woven Fabrics states that the standard breaking load of the HDPE fabric will be in accordance to a formula per 5 cm width of the tape.
10. The officer concerned has made written submission based on a report drawn on inspection of the Applicant's factory upon direction from this Authority. He confirms that the Applicant manufactures tarpaulins both from plain plastic sheet and from HDPE woven fabric conforming to IS 7903:2017.
The submission also states that in the tax invoices issued both before and after GST comes into effect the Applicant has classified such tarpaulins under HSN 3926 90 99.  
11. 'Tarpaulins made of HDPE woven fabrics' are, therefore, laminate of two materials – HDPE tapes woven into fabrics and LDPE sheets/film, and therefore

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In Re: Vesuvius India Ltd.
GST
2018 (8) TMI 771 – AUTHORITY FOR ADVANCE RULINGS WEST BENGAL – 2018 (15) G. S. T. L. 712 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS WEST BENGAL – AAR
Dated:- 20-7-2018
ARN No. 15 of 2018 – 13/WBAAR/2018-19
GST
VISHWANATH AND PARTHASARATHI DEY MEMBER
Applicant's representative heard Sri Soumitra Gooptu, Authorized Representative Sri Sohrab Bararia, FCA
1. The Applicant, stated to be a supplier of end to end system solutions for controlled casting of iron and steel which includes supply of refractory components and associated services. The Applicant now intends to offer a new supply, namely Contract Management System (hereinafter referred to as “CMS”), and is seeking a Ruling on whether the activity proposed to be undertaken as CMS will result in supply of goods or services within the meaning of that term under the CGST/WBGST Acts, 2017 (hereinafter referred to as “the GST Act”), and the time of supply when so determined.
Advanc

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systems. This apart, the Applicant will monitor round-the-clock the flow of iron and steel. The CMS will include the following processes.
a) Total Tundish Management (hereinafter referred to as “TTM”) – Tundish is a bathtub like material where hot steel is poured and collected. It then flows into the mould and takes the desired shape. Several such tundishes are used on rotational basis in course of production of steel. They are lined with refractory for providing protection to the vessels. Refractory components and systems are also fitted to the tundishes for monitoring the process. They help controlling the flow of the liquid steel into the moulds. These refractories need to be replaced frequently. The systems also need timely and regular maintenance. The TTM proposes to provide continuous monitoring of the process for taking care of all these requirements. Consideration for TTM will be provided at an agreed rate for every tonnage of steel produced using the tundishes.
b) Ladle Mana

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e troughs, including regular application of refractories on the walls. Consideration for TMS will be paid at an agreed rate for every tonnage of hot iron produced.
4. The Applicant submits that the scope of work for CMS, specifically TTM and TMS, involves, inter alia,
* Refractory design, supply, application, performance, inventory management, and disposal post application;
* 24/7 monitoring of flow of the hot metal, and quality control of the steel production process.
5. The Applicant is very clear in stating that the procedure undertaken under the proposed CMS will not involve transfer of title to the refractories used in course of the production process. Use of the refractories delivered to the customer, including application and disposal, will continue to be controlled by the Applicant.
Furthermore, the Applicant will not be paid for the supply of refractories, but for managing the flow of the hot metal in production of iron and steel at an agreed rate per tonne of liquid me

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present context provisioning of the service is measured on monthly basis, and the date of payment is within thirty days from end of the month (as stated in clause 4 of the intended Agreement with the Customers). The tax invoice shall, therefore, be issued in terms of Section 31(5)(b) on or before the supplier receives the payment, and the time of supply shall be the date of issue of invoice in terms of Section13(2)(a) read with Section 31(2) of the GST Act and Rule 47 of the GST Rules.
In view of the foregoing we rule as under:
RULING
Activities the Applicant proposes to undertake are services associated with manufacturing of metal, and may be termed as “continuous supply of service” within the meaning of Section 2(33) of the GST Act, provided the service is agreed to be provisioned for a period exceeding three months.
The time of supply shall be the date of issue of invoice in terms of Section 13(2) (a), read with Section 31(2) of the GST Act and Rule 47 of the GST Rules.
This Ru

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Commissioner Of Central Goods And Service Tax, Jaipur Earlier Known As Commissioner Of Central Excise And Service Tax, Commissionerate Jaipur-II, Versus Jatan Construction Private Limited
Service Tax
2018 (8) TMI 629 – RAJASTHAN HIGH COURT – 2019 (24) G. S. T. L. 552 (Raj.)
RAJASTHAN HIGH COURT – HC
Dated:- 20-7-2018
D.B. Central/excise Appeal No. 136/2018
Service Tax
MR. KALPESH SATYENDRA JHAVERI AND MR. INDERJEET SINGH JJ.
For Appellant(s) : Mr. Siddharth Ranka
For Respondent(s) : None
Judgment
1. By way of this appeal, the appellant has challenged the judgment and order of the Tribunal whereby the Tribunal has allowed the appeal filed by the assessee-respondent herein and set aside the order passed by CIT (A) as well as the original authority.
2. Counsel for the appellant has framed the following substantial question of law:
(i) Whether the ld. CESTAT was right in law in extending the benefit of exemption to the “Turnkey Projects” which is available to t

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ce Tax Registration No.AAACJ3635PST001 and paying Service Tax on the Construction work carried out them for the private companies.
3.1 An intelligence was received by the Directorate General ofCentral Excise Intelligence (DGCEI), Ahmedabad Zonal Unit (AZU), Ahmedabad that M/s. Jatan Construction are indulging in evasion of service tax by non payment of service tax on the taxable services provided by them in the construction work carried out by them for the National Building Construction company of India, which were covered under the taxable category of 'Works Contract Service', as defined under Section 65(105) (zzzza) of the Finance Act, 1994. Therefore, simultaneous searches were carried out at the premises of M/s Jatan Construction, situated at “Jatan”, Todarmal Marg, Ajmer and its branch office situated at 17/28, Parth Bungalow, Opp. Karanvati Club, Nr. Shalby Hospital, Ramdevnagar, Ahmedabad as per the provisions of Section 82 of the Finance Act 1994 under respective Panchnamas, w

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oration of India Ltd. i.e. NBCC (hereinafter referred to as NBCC):
a. Construction of new civil and allied works for Post-Graduate Girls Hostel at Sardar Vallabhbhai National Institute of Technology Surat. The work was started in the month of February 2009 and the value of work executed is Rs. 5177.00lacs. (i.e. Rs. 51.77 crores).
b. Construction/modernization of 300 beded Hospital at ESIC, Jaipur. This work was started in year June 2009 and is under execution. The value of the work contracts is Rs. 7500.00 lacs (i.e. Rs. 75 Crores.
3.3 The counsel for the appellant has contended in the light of averments made in memo of appeal which reads as under:
6. That the show cause notice dated 10.09.2012 was adjudicated by the ld. Commissioner, Central Excise Commissionerate, Jaipur II, i.e., the ld. Adjudicating Authority, after considering the totality of facts and circumstances of the case, evidence available on record, submission of the assessee respondent made in writing and orally dur

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ound that the VAT on works contract is included in the total amount of the cheque which meets the basic condition no.1 of works contract service;
(4) the assessee had used their own equipment, resources, manpower and made procurements to carry out construction activity independently.
Hence the ld. Adjudicating Authority held that their activity was covered under Turnkey Projects under clause (e) of the said definition of works contract service. The adjudicating authority also observed that there is no specific exemption to such construction projects under works contract service and therefore, the consideration received by the assessee in respect of above two construction works is liable to service tax under the category of works Contract service.
Applicable interest and penalty was also levied.
3.4 He has also taken us to definition of taxable services defined under Section 65(105)(zzzza) of the finance Act, 1994 which reads as under:
“Taxable service” means any service provided

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w building or a civil structure or a part thereof, or of a pipeline or conduit, primarily for the purposes of commerce or industry; or
(c) construction of a new residential complex or apart thereof; or
(d) completion and finishing services, repair, alteration, renovation or restoration of, or similar services, in relation to (b) and (c); or
(e) turnkey projects including engineering, procurement and construction or commissioning (EPC) projects;
3.5 Counsel for the appellant has also taken us through the finding of the first authority observing as under:
9. Result of Investigation:
9.1 Investigation conducted by DGCEL, Ahmedabad against M/s. Jatan Construction P. Ltd., Ajmer as discussed in the foregoing paras, reveals that M/s Jatan Construction P. Ltd. has been engaged in the business of execution of civil construction projects, under works contract. During the course of the search, it was found that in the financial year 2008-09 to 2011-12. M/s Jatan Construction P. Ltd., Aj

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during personal hearings.
The issues before me to decide is (I) whether assessee is sub contractor of M/s. National Building Construction Corporation Ltd. (NBCC) (II) whether construction activity of P.G. Hostel at SVNIT Surat and ESIC Hospital at Jaipur falls under the category of Works Contract Service. (III) whether service provided by assessee to NBCC is liable to service tax or not? (VI) whether demand is hit by limitation?
17.2 Before deciding the issues, it is necessary togo into the background of the case. As stated in the brief facts, the officers of the DGCEI Zonal Unit, Ahemdabad, acting on the intelligence, searched the office premises of the assessee at Ajmer and Ahemdabad on 18.7.2011 and resumed certain documents/records. Investigation conducted in the matter revealed that assessee has not paid service tax on two projects. The investigating team observed that two projects being constructed on behalf of NBCC i.e. construction of P.G. Hostel at SVNIT Surat and ESIC Hospi

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nfirmation and acceptance in full”. In this letter the contract was for construction of P.G. Hostel at SVNIT, Surat. The cost of the said project was revised vide letter dated 12.3.2010. Similar letter No. NBCC/GM-RBG (E&I) ESIC/Jaipur/2009/1110 dated 3.3.2009 was for contract for construction of Hospital Building including internal services, External electrical, Fire Fighting, at Jaipur.
17.4 From the above letters, it is evident that assessee made contracts for construction of above two projects with M/s NBCC and raised running account bills to M/s NBCC, who made payments. I find that assessee acted as per terms and conditions specified in their letter of agreement and provided specific services as required by M/s NBCC. I find that assessee acted as sub-contractor of M/s. NBCC.
17.5 Now the question would arise as to under which service the construction activity undertaken by the assessee for two projects will be classified. Whether it is commercial and industrial construction or w

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referred. It is also requested to mobilize immediately your site personnel plant and equipments and other resources so that work can be started as per schedule.” I find that nature of contract, their terms and conditions, the running account bills raised by the assessee for payments of the work done, the annual payment details with cheque numbers, which shows the amount for VAT on work contract, all these facts leads to the conclusion that the activity undertaken by them fall under works contract service. I draw my inferences from the definition of service given under section 65(105) (zzzza) of the Finance Act 1994 for works contract which reads as “to any person, by any other person in relation to the execution of a works contract, excluding works contract in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams.
17.6 Explanation- For the purpose of this subclause, “works contract” means a contract wherein
(I) transfer of property in goods involved i

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cluding engineering, procurement   and   construction   or commissioning (EPC) projects.
4. He contended that the Tribunal has seriously committed an error in taking a view inspite of the decision of Banglore Tribunal in Ramky Infrastructure Ltd. vs. Commr. Of Service Tax, Hyderabad reported in 2013 (29) STR 33 (Tri. Bang.) wherein it has been held as under:-
10.1 Whether, in the case of each of the two JVs, the service provided to the Government of Andhra Pradesh is classifiable as “WCS” has to be determined from the nature of the relevant contracts as understood by the parties thereto as also from the scope of the works executed under the contracts Of course, this exercise has to be undertaken with reference to the definition of “works contract” embodied in Explanation to Section 65(105)(zzzza) of the Finance Act, 1994.
10.12 The definition of “commercial or industrial construction service” excludes services provided in respect of certain specified it

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ed by the learned Special Consultant for the Department, there is no room for any intendment or assumption or presumption and, where the words of the statute are plain and clear, there is no room for applying any of the principles of interpretation. In this context, the reliance placed by the Special Consultant on the decision of the Apex Court in Grasim Industries case is found to be apposite.
10.13 Clause (e) of the definition of works-contractturnkey projects including engineering, procurement and construction or commissioning (EPC) projectsclearly conveys the legislative intent underlying the definition of “works contract” in relation to turnkey projects. It does not exclude EPC projects for irrigation, nor does it discriminate between EPC projects for commercial/industrial purposes and those for non-commercial/non-industrial purposes, nor between EPC projects of Government departments/agencies and private entities. What does not figure in the plain language of the entry cannot be

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The Uttar Pradesh Goods and Services Tax (Eighteenth Amendment) Rules, 2018.
KA.NI.-2-1346/XI-9(42)/17 Dated:- 20-7-2018 Uttar Pradesh SGST
GST – States
Uttar Pradesh SGST
Uttar Pradesh SGST
Uttar Pradesh Shasan
Sansthagat Vitta, Kar Evam Nibandhan Anubhag -2
NOTIFICATION
NO.KA.NI.-2-1346/XI-9(42)/17-U.P.GST Rules-2017-ORDER-(131)-2018,
Lucknow : Dated : 20-7-2018
NOTIFICATION
In exercise of the powers conferred by Section 164 of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act No. 1 of 2017), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 2017) the Governor is pleased to make the following rules with a view to amending the Uttar Pradesh Goods and Services Tax Rules,

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Goods and Services Tax Identification Numbers, and upon validation of the details furnished, a unique common enrolment number shall be generated and communicated to the said transporter:
Provided that where the said transporter has obtained a unique common enrolment number, he shall not be eligible to use any of the Goods and Services Tax Identification Numbers for the purposes of the said Chapter XVI.”;
Amendment in rule 138C.
3. In the said rules, in rule 138C, after sub-rule (1), the following proviso shall be inserted, namely:-
“Provided that where the circumstances so warrant, the Commissioner, or any other officer authorized by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B

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The Madhya Pradesh Goods and Services Tax Rules, 2017
F.A-3-22-2018-1-V-(59) Dated:- 20-7-2018 Madhya Pradesh SGST
GST – States
Madhya Pradesh SGST
Madhya Pradesh SGST
Commercial Tax Department
Mantralaya, Vallabh Bhawan, Bhopal
Bhopal, the 20th July, 2018
F.A-3-22-2018-1-V-(59).- In exercise of the powers conferred by Section 164 of the Madhya Pradesh Goods and Services Tax Act, 2017 (19 of 2017), the State Government hereby makes the following rules further to amend the Madhya Pradesh Goods and Services Tax Rules, 2017, namely:-
AMENDMENTS
They Shall be deemed to have come into force with effect from the 12th day of June, 2018.
2. In the Madhya Pradesh Goods and Services Tax Rules, 2017,-
(i) in rule 129, for the wo

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MP State Tourism Development Corporation Limited Versus CGST C.E & C. C-Bhopal
Service Tax
2018 (7) TMI 1445 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 20-7-2018
Appeal No. ST/55990/2014-DB – Final Order No. 52557/2018
Service Tax
Hon'ble Mr. V. Padmanabhan, Member (Technical) And Hon'ble Mr. Ajay Sharma, Member (Judicial)
Sh. Sandeep Mukharjee, CA for the appellant
Sh. G.R. Singh, DR for the respondent
ORDER
Per : V. Padmanabhan
1. The present appeal is against the Order-in-Original No. 247/2013-14 dated 21/02/2014. During the period of dispute i.e. April, 2009 to September, 2010, the appellant provided, among other things, renting of passenger buses on fixed routes, under the 'stage carriage permit' i

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Ld. DR for the Revenue.
3. On the ground of time bar, he argued that the time limits specified in Section 11B of the Central Excise Act will not be applicable to the facts of the present case, since the activity for which Service Tax was paid was not a taxable service during the relevant time and the tax was paid by mistake. In this connection he relied on the decision of the Tribunal in case of Monnet International Ltd. 2017 (3) GSTL 380 (Tri.-Del).
4. On the ground of unjust enrichment, he submitted that the appellant has never charged or collected Service Tax from the passengers at the time of issue of tickets. In support of such contentions he submitted the following documents:-
i. The copies of the sample tickets/ booking confirmat

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paid Service Tax on the activity of renting of passenger buses with stage carriage permit. Such activity is not liable to payment of Service Tax. Consequently, they have field refund claims. A part of the refund claims have been rejected on the ground of time bar, since the claims have been filed beyond the time limit prescribed under Section 11B. In this connection the appellant has prayed that the time limit under Section 11B will not be applicable since the tax has been paid by mistake when there was no tax liability. In this connection we have perused the decision of the Larger Bench of the Tribunal in the case of Veer Overseas (supra). Wherein it has been held that the time limits prescribed under Section 11B will govern all refund cla

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Marine Consultancy for Foreign Ship Owners Classified as “Intermediary Service” u/s 2(13) of IGST Act.
Case-Laws
GST
Composite supply – Marine Consultancy Service (MCS) provided to foreign ship owners – principal supply – MCS provided to foreign ship owners do not constitute “composite supply” with the principal supply of consultancy service – qualifies as “intermediary service” in terms of Section 2(13) of the IGST Act.
TMI Updates – Highlights, quick notes, marquee, annota

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Government Sets Up Help Desks to Aid Exporters in Claiming IGST Refunds for Exported Goods, Enhancing Compliance.
Circulars
Customs
Refund of IGST on export of Goods on payment of duty-Settin

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IGST Refund Process for Exported Goods: New Guidelines for SB003 Errors and Extended Deadlines for SB005 Cases.
Circulars
Customs
Refund of IGST on export of goods on payment of duty-Clarific

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Violation of Rule 138: Late E-way Bill Declaration Leads to Detention and Seizure; Tax Penalties Apply u/s 129.
Case-Laws
GST
Detention and seizure of goods violation of Rule 138 – e-way bill

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ELECTRONIC CREDIT LEDGER-REG
Query (Issue) Started By: – Kusalava InternationalLimited Dated:- 19-7-2018 Last Reply Date:- 25-7-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Our Total Turnover is exempted, by mistake every month we are accumulating our input itc in electronic credit ledger with out reversing as per CGST Rule 42&43.Now in our books we transferred itc ledgers amount to expenditure. but how to reverse credit in electronic credit ledger to tally with our books.
R

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GST Charcha– Know Your Taxable Jurisdiction
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 19-7-2018

Introduction: –
Greetings to everyone on occasion of completing one-year of GST on 1st July. With the advent of GST regime, we have seen lots of Ups and Downs on paradigm shift of the economy by abolishing around 17 indirect taxes and 23 cesses to achieve One Nation One Tax.
Lots of issues pertaining to GST are resolving day by day, but still some grey areas exist, one of which is “How to find out taxable Jurisdiction of the assessee”.
Based on the Decision of 21st GST Council meeting held at Hyderabad, a detailed guideline has been provided vide Circular No. 01/2017 dated 20th September, 2017 for division of Taxpayer base between the Centre and the States to ensure single interface under the GST.
The followings are the gist of guidelines-
i) Of the total number of taxpayers below ₹ 1.5 crore turnover, all administrative control over 90% of the taxpay

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Taxpayer option; fill your GSTIN/UIN no. from where you will get all the details of the Taxpayer including Central jurisdiction and State jurisdiction.
The Jurisdiction which is shown in RED Colour is the actual taxable jurisdiction of the Taxpayer. Example shown below: Centre is the taxable authority.
Further, you may also check user Services under Services icon of this portal to find out address of the concerned Tax Officer. These two options under Search icon i.e. Contacts, and Search office addresses provides you the details of Officer in relation to desired jurisdiction.
CBEC Sites:
Further, the Government has launched a GST portal i.e. https://cbec-gst.gov.in/know-your-jurisdiction.html, which also helps to determine the Range under which the Taxpayer jurisdiction falls.
Taxpayer while going through the GST Registration process is required to provide the Jurisdiction details of the place of business. So, this portal aids in determining the exact Jurisdiction of the taxpaye

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has also provided helpline no. 0124-4688999 along with E-mail helpdesk@gst.gov.in .
Self Help Portal:
Tax payer may also try to lodge complaints to find their jurisdiction of respective business. But this portal i.e. https://selfservice.gstsystem.in/ has been designed for lodging complaints by taxpayers and other stakeholders on some selected issues. They can lodge Complaint here indicating issues or problems faced by them while working on GSTN portal instead of sending emails to the Helpdesk. It has been designed in a manner that the user can explain issues faced and upload screenshots of pages where they faced the problem, for quick redressal of grievances. This Self-help portal determine issue of jurisdiction in relation to New registration when correct jurisdiction is not available.
GST Seva kendra:
http://cbic.gov.in/resources//htdocs-cbec/gst/gsk-contact-detailsconsoldated_11%20July%202017.pdf;jsessionid=F89BB541D9337B4CC925571891130012 .
The following link of CBIC provide

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Refund of IGST on export of Goods on payment of Duty- clarification in case of SB003 errors and extension of date in SB005 & other cases using officer Interface for rectification of errors
PUBLIC NOTICE NO. 27/2018 Dated:- 19-7-2018 Trade Notice
Customs
GOVERNMENT OF INDIA
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
OFFICE THE PRINCIPAL COMMISSIONER OF CUSTOMS (AIR CARGO),
CHENNAI-VII COMMISSIONERATE,
NEW CUSTOM HOUSE, MEENAMBAKKAM, CHENNAI – 600027.
F. No.: S.Misc.230/2018-EXP(Air)
Dated: 19.07.2018
PUBLIC NOTICE NO. 27/2018
Sub: reg.
********
It may be recalled that in Circular 15/2018 – Customs date 06.06.2018 CBIC has provided for resolution of SB003 error in certain cases through the utility developed by the Direct

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s dated 06.06.2018 wherein an alternative mechanism with an officer interface to resolve invoice mismatches (SB005 error) was provided for the shipping bills filed till 30.04.2018. Despite wide publicity and outreach programmes to make exporters aware about the need to have identical details in invoices given in shipping bills and GST returns, it has been observed that a few exporters continue to commit such errors. Therefore, in view of the ongoing Refund Fortnight (from 16th July 2018 to 31st July 2018) giving high priority to the interest of exporters, it has been decided by the Board to extend the rectification facility to Shipping Bills filed up to 30.06.2018.
4. Further, the facility of rectification through Officer Interface is also

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Sanction of IGST refunds pending sanction due to error code SB005 and SB006
F.No. S23/210/2017-AP(IGSTR)Vol. II Dated:- 19-7-2018 Trade Notice
Customs
OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS
CUSTOM HOUSE: PORT AREA: VISAKHAPATNAM – 530035
PHONE: (0891) 2564552 FAX: (0891) 2562613
F.No. S23/210/2017-AP(IGSTR)Vol. II
Date: 19.07.2018
NOTE/URGENT
Sub: Sanction of IGST refunds pending sanction due to error code SB005 and SB006
Attention of all the Exporters/ Customs Brokers

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Refund Of IGST on export Of Goods on payment Of duty-setting up Of Help-Desks
PUBLIC NOTICE NO. 98/2018 Dated:- 19-7-2018 Trade Notice
Customs
OFFICE OF COMMISSIONER OF CUSTOMS (Export)
NEW CUSTOM HOUSE, BALLARD ESTATE, MUMBAI-400 001
F. No. S/26-Misc-05/2018
Date: 19.07.2018
PUBLIC NOTICE NO. 98/2018
Subject: reg.
Attention of the Exporters, Custom Broker and Traders Is invited to Board's Circular No. 21/2018 – Customs issued vide F. No. 450/ 1 19/2017 – Cus IV dated 18.07.2018. Various representations have been received in the Board wherein micro small and medium enterprise exporters have informed that their IGST refunds are held up and that they are unable to approach Customs port of exports due to factors like distan

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ANG. The ICEGATE email ID of the officer(s) deputed at the Help Desk may immediately be informed to TeamICES@icegatc.gov.in. to enable access to the data. The officers deputed at Help Desks would use this data to inform the exporters about the documents required, if any, and guide them to resolve the errors. The exporters can provide details related to any port of export at the Help Desk near their location. The Help Desk shall act as an extended office of the Port of export and collect documents/ information on behalf of the port of export. The details provided by the exporters to the Help Desk shall be transmitted by ICEGATE e-mail to the nodal officers at the port of export. The ICEGATE. e-mail ID or the nodal officer or each port of exp

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In Re : A2Z Infra Engineering Ltd.
GST
2018 (11) TMI 1505 – AUTHORITY FOR ADVANCE RULING – CHHATTISGARH – 2018 (18) G. S. T. L 760 (A. A. R. GST)
AUTHORITY FOR ADVANCE RULING – CHHATTISGARH – AAR
Dated:- 19-7-2018
STC/AAR/03/2018
GST
Shri S.K. Buxy, Member (State Tax) and Rajesh Kumar Singh, Member (Central Tax)
ORDER
Proceedings : The applicant M/s. A2Z Infra Engineering Ltd., B-18, Amrapali Society Raipur, GSTIN 22AAECA1203A1ZX has filed the application U/s 97 of the Chhattisgarh Goods & Services Tax Act, 2017 requesting advance ruling as regards levy of CGST & SGST @ 6% each instead of 9% each on the composite supply of work contract services provided to Chhattisgarh State Power Distribution Company Ltd. (CSPDCL) by A2Z Infra Engineering Ltd., Raipur.
2. Facts of the case :-
I. M/s. A2Z Infra Engineering Ltd., Raipur (hereinafter referred to as 'A2Z' or the company') is a fully integrated Electrical Business Group in India engaged in providing m

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arh.
IV. CSPDCL had floated a tender to award the aforesaid specified scope of work and after successful bidding M/s. A2Z has been awarded the work contract services from CSPDCL.
3. Contention of the Applicant :
(i)   that, since the services provided by it are in the nature of composite supply of work contract involving supply of goods and services therefore the services provided will be subjected to GST @ 12%  instead of 18% in terms of Notification No. 24/2017-Central Tax (Rate), dated 13-10-2017. This Notification provides that the services provided to the Central Government, State Government, Union Territory, a local authority, a Government Authority or a Government Entity by way of construction, erection, commissioning, installation completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession will be subje

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ity, they should have been procured by the said entity in relation to a work entrusted to it by the Central  Government, State Government, Union territory or local authority, as the case may be.
(iii)   that, CSPDCL is a Government entity which came into existence w.e.f. 1-1-2009 as one of the company when erstwhile Chhattisgarh State Electricity Board (CSEB) was reorganized into 5 companies by Government of Chhattisgarh in accordance with the provisions contained in Sections 131-134 of Electricity Act, 2003. CSPDCL is the electricity   generation company of Government of Chhattisgarh in India and was formed by issuance of notification in official gazette  dated 31-12-2008, Thus, condition No. 1 is satisfied that  CSPDCL is a Government entity. Further 100% holding is of Chhattisgarh Sate Government.
(iv)   that, CSPDCL is implementing this work on behalf of Government of Chhattisgarh. This IPDS scheme has been sanctioned by Ministry of po

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rning any profit or gain but for the benefit of India as a whole so that electricity reaches each and every corner of India. 
(vi)   Thus on the basis of above, the Applicant contends that the said work contract services involving the supply of goods and services to CSPDCL is liable for GST @ reduced rate of 12% instead of 18%.
4.   Personal Hearing :-
In keeping with the established principles of natural justice, personal hearing in the matter was extended to the authorized person of the Applicant and accordingly, Shri Malvinder Singh Bhatia (Advocate) along with Shri Mohit Gupta (CA Intern), appeared before us for hearing on 22-6-2018 and reiterated their contention. They also furnished a written submission dated 22-6-2018, which has been taken on record.
5.   Thus we find that A2Z, the Applicant is seeking clarity as regards the applicable rates for payment of GST on the aforesaid services rendered by them to CSPDCL„ viz. whether the appl

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lation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be.
The Applicant is thus seeking advance ruling on the issue, as according to them the services provided by them are in the nature of composite supply involving supply of goods and services, therefore, they should charge GST at the reduced rate of 12% instead of 18% as per provisions of Notification No. 24/2017-CentraI Tax (Rate), dated 21-9-2017 and Notification No. 31/2017-Central Tax (Rate), dated 13-10-2017.
6.   The legal position, Analysis and Discussion :-
6.1   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.
6.2   The primary issue that needs decision here so as to arrive at applicability or otherwise of the benefit of the conditional exemption Notification referred to above, in the context of the advance

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3-10-2017.
6.4   Now, moving on to the second aspect regarding the nature of activities being under taken by the applicant i.e. whether the same can be treated as the work predominantly for use other than for commerce, industry or any other business of profession or not, it is seen that :
(i)   As per, Section 2(119) of Chhattisgarh Goods and Services Tax Act 2017, Work Contract means a contract for building, construction fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract.
(ii)   Notification No. 24/2017-State Tax (Rate), dated 23-9-2017 and thereafter Notification No. 31/2017-State Tax (Rate), dated 13-10-2017 amended Notification No. 11/2017-State Tax (Rate), dated the 28th June, 2017, Of Chhattisgarh St

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fication, in the Table, against serial number 3, for item (vi) in column (3) and the entries relating thereto, in columns (3), (4) and (5), the following shall be substituted namely :-
(3)
4
5
“(vi) Services provided to the Central Government; State Government Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair. Maintenance, renovation, or alteration of –
(a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession :
(b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or
(c) a residential complex predominantly meant for selfuse or the use of their employees or other persons specified in paragraph 3 of the Schedule Ill of the Central Goods and Services Tax Act, 2017 –
6
–
(vii) Construction services other tha

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duced tax rate, it is of paramount importance that the services under taken/work done by the Applicant for CSPDCL must necessarily for use which is non-commercial in nature.
(v)   Now to ascertain the constitution of CSPDCL i.e. whether it has been incorporated for commercial aim or otherwise, it is seen that  CSPDCL is a company incorporated under the Companies Act 1956, earlier known as Mahanadi Power Development Company Limited (Company Registration No. 1015822, dated 19-5-2003) and is a company limited by share. Further it is also in public domain that the main Objects of CSPDCL, as enumerated in its Memorandum of Association are as under : –
MEMORANDUM OF ASSOCIATION OF CHHAITISGARH STATE POWER DISTRIBUTION COMPANY LIMITED
MAIN OBJECTS
A. Main Objects to be pursued by the company on its incorporation
2. Manufacture, trading, coordination
To carry on the business of purchasing, importing, exporting, producing, trading, manufacturing or otherwise dealing in Ele

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companies
– To carry on the business of purchasing, selling, importing, exporting, wheeling and trading of power including finalization of tariff, billing and collection thereof.
   – To execute Power Purchase Agreements with Transmission Companies, Generating Companies, Central and State generating stations. Regional Electricity Boards, other State, Companies and Persons.
– To execute agreements for sale of Power of other distribution or trading companies and other persons and to coordinate, aid and advise on the activities of other companies and concerns, including subsidiaries, associates and affiliates engaged in generation, transmission, distribution, supply and wheeling of electrical energy.
B. Objects incidental or ancillary to the attainment of the main objects :
4. Borrowing power
Subjects to the provision of Section 58A of the Companies Act, 1956 and the rules framed thereunder to borrow money or to receive money or deposits for the purpose of financing the bu

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f electrical and electronic equipment's etc.
To carry on the business of manufacturing, assembling, repairing, servicing, selling, purchasing importing, exporting, of electrical and electronics equipments like, transformers, motors, switch gears, pumps, threshers, starters, electric fans coolers, air conditioners, televisions, telephones, epabx, audio and video equipments used in factories, homes, mills, workshop business offices, hotels, and other type of electrical, electronics, solar equipments and machineries of Domestics, Industrial, Communication. Defence, Research applications. To carry on the business of repairing, renovating, conditioning, altering, of the above machineries and equipments on Job-work basis.
(vi)   Thus on going through the main/ancillary objectives as enumerated  in Memorandum of Association of CSPDCL, there hardly remains any doubt regarding the principal/primary and foremost aim of CSPDCL being predominantly commercial in nature and tha

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Commissioner, Idappadi Municipality, Commissioner, Gobi Chettipalayam Municipality, Commissioner, Dharmapuri Municipality Versus Commissioner of GST & Central Excise, Salem
Service Tax
2018 (9) TMI 1143 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 19-7-2018
ST/40994/2015, ST/41008/2015, ST/41538/2015, ST/40254/2016 – Final Order Nos. 42125-42128/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri S. Kannappan, Advocate for the Appellants
Shri K. Veerabhadra Reddy, JC (AR) for Respondents
ORDER
Per Bench
The common dispute in all these appeals concern taxability on amounts received by the appellants towards renting of immovable properties such as commercial complex, shops, lands etc. to various parties. The lower authorities in these cases have confirmed the demands of service tax with interest on such amounts under the head Renting of Immovable Property as defined in Section 65(105)(zzzz) o

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lutions Retails India Ltd. Vs. Union of India – 2011 (24) STR 129 (Del.) which had upheld the constitutional validity of levy of service tax of renting of immovable property has been appealed against and is pending before the Hon'ble Supreme Court as reported in 2012 (26) STR J118 (SC). So also, another judgment of the Hon'ble Delhi High Court in Ritika Pvt. Ltd. dated 23.9.2011 which had held that service tax imposed under section 65(105)(zzzz) of the Act could not be held as unconstitutional has also been appealed against and admitted by the Hon'ble Supreme Court as reported in 2017 (52) STR J204 (SC). The ld. Counsel prays that in view of these developments, the decisions in all these appeals may be deferred till the final decision of the Hon'ble Supreme Court.
3. On the other hand, ld. AR Shri K. Veerabhadra Reddy submitted that the judgments of the Hon'ble High Court of Delhi in Home Solutions (supra) as well as Ritika Pvt. Ltd. (supra) have not been stayed by the Hon'ble Supreme

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as gone into the question whether levy of service tax under section 65(105)(zzzz) ibid is within the legislative competence of Parliament or otherwise. The relevant portion of the said order of the Hon'ble Supreme Court is reproduced as under:-
“We have heard the Learned Counsels for the parties at some length.
2. The question arising is whether “Service Tax” under Section 65(105)(zzzz) of the Finance Act, 1994 on renting of immovable property or any other service in relation to such renting, for use in the course of or, for furtherance of, business or commerce is within the legislative competence of the Union Parliament.
3. The above question is directly relatable to the scope and ambit of Entry 49 of List II of the Seventh Schedule to the Constitution of India dealing with “Taxes on lands and buildings”. If the impost/levy is directly relatable to the lands/buildings contemplated in Entry 49 of List II of the Seventh Schedule to the Constitution of India we would have had no hesit

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ons 9/15(3) of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957, as amended) is in the nature of tax?
2. Can the State Legislature while levying a tax on land under List II Entry 49 of the Seventh Schedule of the Constitution adopt a measure of tax based on the value of the produce of land? If yes, then would the constitutional position be any different insofar as the tax on land is imposed on mining land on account of List II Entry 50 and its interrelation with List I Entry 54?
3. What is the meaning of the expression “Taxes on mineral rights subject to any limitations imposed by Parliament by law relating to mineral development” within the meaning of Schedule VII List II Entry 50 of the Constitution of India? Does the Mines and Minerals (Development and Regulation) Act, 1957 contain any provision which operates as a limitation on the field of legislation prescribed in List II Entry 50 of the Seventh Schedule of the Constitution of India? In particular, whet

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?
9. Whether List II Entry 50 read with List I Entry 54 of the Seventh Schedule to the Constitution constitute an exception to the general scheme of entries relating to taxation being distinct from other entries in all the three Lists of the Seventh Schedule to the Constitution as enunciated in M.P.V. Sundararamier & Co. v. State of A.P. [AIR 1958 SC 468: 1958 SCR 1422] [AIR p. 494: SCR at p. 1481 (bottom)]?
10. Whether in view of the declaration under Section 2 of the Mines and Minerals (Development and Regulation) Act, 1957 made in terms of List I Entry 54 of the Seventh Schedule to the Constitution and the provisions of the said Act, the State Legislature is denuded of its power under List II Entry 23 and/or List II Entry 50?
11. What is the effect of the expression “… subject to any limitations imposed by Parliament by law relating to mineral development” on the taxing power of the State Legislature in List II Entry 50, particularly in view of its uniqueness in the sense that

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tate of T.N. [(1990) 1 SCC 12], reference to the Bench of nine Judges is requested. The office is directed to place the matter on the administrative side before the Chief Justice for appropriate orders.”
4. In view of the above, we are of the opinion that these matters should await the decision of the nine judges Bench where after the hearing of these matters will be taken up once again in the course of which it will be open for the parties to urge such additional points as may be considered relevant. The matter is accordingly deferred until disposal of the issues pending before the nine judges Bench in Mineral Area Development Authority and Others (supra).”
5.3 Discernibly, the Hon'ble Supreme Court has found it proper to defer decisions in these matters awaiting the judgment of the nine Judge Bench in Mineral Area Development Authority and Others (supra). Viewed in this light, we are of the considered opinion, that in the interests of justice, all these appeals should be kept in ab

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Commissioner, Hosur Municipality, Commissioner, Ranipet Municipality, Commissioner, Krishnagiri Municipality, Commissioner, Thiruvannamalai Municipality Versus Commissioner of GST & Central Excise, Chennai – III, Commissioner of GST & Central Excise, Puducherry
Service Tax
2018 (9) TMI 1142 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 19-7-2018
ST/41845/2014, ST/41976/2015, ST/41985/2015, ST/42343/2015 – Final Order Nos. 42132-42135/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri G. Natarajan, Advocate for the Appellants
Shri A. Cletus, Addl. Commissioner (AR) and Shri K. Veerabhadra Reddy, JC (AR) for Respondents
ORDER
Per Bench
The common dispute in all these appeals concern taxability on amounts received by the appellants towards renting of immovable properties such as commercial complex, shops, lands etc. to various parties. The lower authorities in these cases have confirmed the

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should await the decision of the said nine Judge Bench. He also points out that the judgment of the Hon'ble Delhi High Court in Home Solutions Retails India Ltd. Vs. Union of India – 2011 (24) STR 129 (Del.) which had upheld the constitutional validity of levy of service tax of renting of immovable property has been appealed against and is pending before the Hon'ble Supreme Court as reported in 2012 (26) STR J118 (SC). So also, another judgment of the Hon'ble Delhi High Court in Ritika Pvt. Ltd. dated 23.9.2011 which had held that service tax imposed under section 65(105)(zzzz) of the Act could not be held as unconstitutional has also been appealed against and admitted by the Hon'ble Supreme Court as reported in 2017 (52) STR J204 (SC). The ld. Counsel prays that in view of these developments, the decisions in all these appeals may be deferred till the final decision of the Hon'ble Supreme Court.
3. On the other hand, ld. ARs Shri A. Cletus, and Shri K. Veerabhadra Reddy submitted tha

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velopment, vide their order dated 5.4.2018 in the matter relating to UTV News Ltd. and others (supra) relied by the ld. Counsel, the Hon'ble Supreme Court has gone into the question whether levy of service tax under section 65(105)(zzzz) ibid is within the legislative competence of Parliament or otherwise. The relevant portion of the said order of the Hon'ble Supreme Court is reproduced as under:-
“We have heard the Learned Counsels for the parties at some length.
2. The question arising is whether “Service Tax” under Section 65(105)(zzzz) of the Finance Act, 1994 on renting of immovable property or any other service in relation to such renting, for use in the course of or, for furtherance of, business or commerce is within the legislative competence of the Union Parliament.
3. The above question is directly relatable to the scope and ambit of Entry 49 of List II of the Seventh Schedule to the Constitution of India dealing with “Taxes on lands and buildings”. If the impost/levy is d

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e considered by a Bench of nine Judges. The questions of law to be decided by the larger Bench are as follows:
1. Whether “royalty” determined under Sections 9/15(3) of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957, as amended) is in the nature of tax?
2. Can the State Legislature while levying a tax on land under List II Entry 49 of the Seventh Schedule of the Constitution adopt a measure of tax based on the value of the produce of land? If yes, then would the constitutional position be any different insofar as the tax on land is imposed on mining land on account of List II Entry 50 and its interrelation with List I Entry 54?
3. What is the meaning of the expression “Taxes on mineral rights subject to any limitations imposed by Parliament by law relating to mineral development” within the meaning of Schedule VII List II Entry 50 of the Constitution of India? Does the Mines and Minerals (Development and Regulation) Act, 1957 contain any provision which op

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ent by law relating to mineral development” in List II Entry 50 refers to the subject-matter in List I Entry 54 of the Seventh Schedule to the Constitution?
9. Whether List II Entry 50 read with List I Entry 54 of the Seventh Schedule to the Constitution constitute an exception to the general scheme of entries relating to taxation being distinct from other entries in all the three Lists of the Seventh Schedule to the Constitution as enunciated in M.P.V. Sundararamier & Co. v. State of A.P. [AIR 1958 SC 468: 1958 SCR 1422] [AIR p. 494 : SCR at p. 1481 (bottom)]?
10. Whether in view of the declaration under Section 2 of the Mines and Minerals (Development and Regulation) Act, 1957 made in terms of List I Entry 54 of the Seventh Schedule to the Constitution and the provisions of the said Act, the State Legislature is denuded of its power under List II Entry 23 and/or List II Entry 50?
11. What is the effect of the expression “… subject to any limitations imposed by Parliament by law

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ecision has been delivered by a Bench of five Judges of this Court and the decision delivered by a seven-judge Bench of this Court in India Cement Ltd. v. State of T.N. [(1990) 1 SCC 12], reference to the Bench of nine Judges is requested. The office is directed to place the matter on the administrative side before the Chief Justice for appropriate orders.”
4. In view of the above, we are of the opinion that these matters should await the decision of the nine judges Bench whereafter the hearing of these matters will be taken up once again in the course of which it will be open for the parties to urge such additional points as may be considered relevant. The matter is accordingly deferred until disposal of the issues pending before the nine judges Bench in Mineral Area Development Authority and Others (supra).”
5.3 Discernibly, the Hon'ble Supreme Court has found it proper to defer decisions in these matters awaiting the judgment of the nine Judge Bench in Mineral Area Development Aut

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M/s. Kochar Properties P. Ltd. Versus Commissioner of GST & Central Excise Chennai South Commissionerate
Service Tax
2018 (9) TMI 828 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 19-7-2018
ST/Misc. 41660/2017 and ST/404 & 405/2012 – Final Order Nos. 42042-42043/2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical)
Shri V. S. Manoj, Advocate for the Appellant
Shri A. Cletus, Addl. Commissioner (AR) for the Respondent
ORDER
Per Bench
After hearing both sides, we find that the issue pertains to inclusibility of value of taxable services of interest accrued on security deposit paid in connection with renting of immovable property.
2. We find that the ld.

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interest that would have accrued on such security deposit therefore cannot be made part of the value for taxable service. Hence those portions of the impugned orders which have decided to the contrary cannot be sustained and are set aside. So ordered.
3. However, no interference is made with regard to the remaining service tax amounts that may have been demanded in these orders.
4. At the same time, we also find that all the disputes being only interpretational, there cannot be any penalty and hence the penalties imposed in the impugned order under the Finance Act, 1994 are set aside.
5. The impugned orders are modified to the above extent and the appeals partly allowed.
6. The miscellaneous application filed by Revenue for change of ca

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M/s. Amar Pratap Steels (P) Ltd. Versus CGST & CE, Jaipur I
Central Excise
2018 (9) TMI 123 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 19-7-2018
Excise Appeal No. 50716 of 2018 – A/52610/2018-EX[DB]
Central Excise
Mr. C L Mahar, Member (Technical) And Ms. Rachna Gupta, Member (Judicial)
Shri Himanshu Bansal, Advocate for the Appellants
Ms Tamana Aalam, AR for the Respondent
ORDER
Per: C L Mahar:
The present appeal has been filed against order-in-appeal No. 391(SM) CE/JPR/2017 dated 31.10.2017.
2. The brief facts of the case are that the appellant has established his factory in the State of Rajasthan and was operating under Rajasthan Investment Promotion Scheme which was notified by the Government of Rajasthan with the objective of facilitating investment in the establishment of new enterprises under the various schemes of Rajasthan Government. The appellant (assessee) was eligible for subsidies as per the various schemes applicable to the asses

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rd, it appears that the identical issue has come up before the Tribunal in the case of Shree Cements Ltd. V/s CCE, Alwar 2018- TIOL-748-CESTAT-DEL where it was observed that:-
“7. We have heard both sides at length and perused the appeal record. As out lined above, the appellants are covered by the Investment Promotion Schemes of the Rajasthan Government. In terms of the various schemes of the Rajasthan Government, the appellants are required to discharge their VAT liability by making payment of the same. Out of such VAT credited to the Government, a certain portion is disbursed back to them in the form of subsidies. Such disbursement happens in the form of VAT 37 B, challan which can be utilized in subsequent periods to discharge VAT liability. The crux of the dispute in the present case is whether such subsidy amounts are required to be included in the assessable value of the goods manufactured by the appellants, in terms of Section 4 of the Central Excise Act. As per the concept of

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he included in the transaction value.
9. In the present case we know that for the initial period the assessees are required to remit the VAT recovered by them at the time of sale of the goods manufactured. A part of such VAT is given back to them in the form of subsidy in Challan 37 B. Such Challans are as good as cash but can be used only for payment of VAT in the subsequent period. In terms of the scheme of the Government of Rajasthan payment of VAT using such Challan are considered legal payments of tax. In view of the above, Revenue is not correct in taking the view that VAT liability discharged by utilizing such subsidy challans cannot be taken as VAT actually paid.
10. It is pertinent to reproduce the observations of the Tribunal in the Welspun Corporation Ltd. case
“5.1 The Respondent company opted for “Remission of Tax Scheme” and was thus eligible for the Capital subsidy in the form of remission of Sales Tax subject to the conditions to be fulfilled…. The subsidy in t

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In Re : Spentex Industries Ltd.
GST
2018 (8) TMI 285 – AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – 2018 (16) G. S. T. L. 160 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH – AAR
Dated:- 19-7-2018
AAR NO. 06/2018/AAR/R-28/26
GST
Shri Rajeev Agrawal, Joint Commissioner, And Commissioner CGST And Central Excies And Shri Manoj Kumar Choubey, Joint Commissioner of State Tax, Commircial Tax Division
RULING
1. BRIEF FACTS OF THE CASE:
1.1 M/s. Spentex Industries Ltd. (hereinafter referred to as 'the Applicant'), having its registered office at 51-A, B & C, Sector-Ill, Industrial Area, Pithampur Distt.Dhar (M.P.), are engaged in the manufacture of Textile Yarn. The Applicant are registered with the GSTN holding GSTIN 23AADCK3039P2ZC.
1.2 The Applicant, are having Advance Authorisation issued by the DGFT and invalidated for procurement of goods from indigenous supplier, Their supplier is having EPCG licence and supplying the goods under deemed expo

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T.
1.5 In view of the above, the applicant has posed following two questions before the Authority seeking Advance Ruling on the same:
2. QUESTIONS RAISED BEFORE THE AUTHORITY:
The following questions have been posed before the Authority, with reference to the activity undertaken by the Applicant:
2.1 Please specify the complete procedure for S.No.l & Explanation 1 of the Notification 48/2017-Central Tax dtd.18.10.2017 for supplies by DTA to Advance Auth orisa tion Holder ?;
2.2 Please specify the applicability of Foreign Trade Policy 2015-2020 Mid Term Review and specify procedure for procuring goods from DTA against Advance Authorisation?
3. DEAPRTMENT'S VIEWPOINT:
The Concerned Officer of MPGST department has opined that the question raised in the instant application relate to implementation and applicability of Foreign Trade Policy 2015-2020 Mid Term Review, which do not fall under the ambit of Section 97(2) (a) to (g) of the CGST Act 2017/MPGST Act 2017.
4. RECORD OF PERSON

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ng can be sought. The same is reproduced hereunder
Section 97(2) The questions on which the advance ruling is sought under this Act, shall be in respect of, –
(a) Classification of any goods or services or both;
(b) Applicability of a notification under the provisions of this Act;
(c) Determination of time and value of supply of goods or services or both;
(d) Admissibility of input tax credit of tax paid or deemed to have been paid;
(e) Determination of the liability to pay tax on any goods or services or both;
(f) Whether applicant is required to be registered;
(g) Whether any particular thing done by the applicant with respect to any goods or services or both amount to or results in a supply of goods or services or both, within the meaning of that term.
5.3 Thus, Section 97(2) clearly and vividly defines the nature and scope of questions on which Advance Ruling can be sought. We find that the questions posed before the Authority in the instant case, do not classify un

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posed in the instant Application.
5.4 Now, coming to Question No.2, the Applicant has sought to '…specify the applicability of Foreign Trade Policy 2015-2020 Mid Term Review and specify procedure for procuring goods from DTA against Advance Authorisation'. Here again we find that the question is beyond the ambit of Section 97(2), as it relates to applicability of Foreign Trade Policy 2015-2020 Mid Term Review and the related procedure. Obviously, the Applicant has sought a ruling for applicability of Foreign Trade Policy which is clearly beyond the ambit of Authority for Advance Ruling constituted under CGST Act 2017/MPGST Act 2017. We thus do not find the application worthy of admission.
5.5 In view of the discussions foregoing, the application filed by the applicants, being beyond the scope of Section 97(2), merits rejection at the stage of admission itself, without going into the merits of the case in terms of Section 98(2) of the CGST Act 2017/MPGST Act 2017.
RULING
6. The A

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