Goods and Services Tax

IMPLEMENTATION OF E-WAY BILL
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 13-7-2018

Chapter XVI of the Central Goods and Services Tax Rules, 2017 provides for E-way Bill. Initially Rule 138 provides that till such time as an E-way bill system is developed and approved by the Council, the Government may, by notification, specify the documents that the person in charge of a conveyance carrying any consignment of goods shall carry while the goods are in movement or in transit storage.
Vide Notification No. 27/2017-Central Tax, dated 30.08.2017 the Central Government made sixth amendment to the CGST Rules, 2017. Rule 2 of the said amendment Rule provides for the substitution of Rule 138 for the existing Rule. The said amendment Rule proposed to insert Rule 138A, 138B, 138C, 138D and also prescribed forms for E-way Bill procedure as detailed below-
* Rule 138 – Information to be furnished prior to commencement of good and generation of e-way bill;

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inted 01.02.2018 from which the provisions relating to E-way bill would come into force.
Vide Notification No. 03/2018-Central Tax, dated 23.01.2018, the Central Government made amendment to CGST Rules. In this Rule, it was proposed to substitute Rule 138 with effect from 01.02.2018.
Websites
Vide Notification No. 09/2018-Central Tax, dated 23.01.2018 the Central Government notified the following websites for the particular purposes-
* www.gst.gov.in – The Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns and computation and settlement of integrated tax;
* www.ewaybillgst.gov.in – the Common Goods and Services Tax Electronic Portal for furnishing electronic way bill.
The movement of goods from one State to another State (inter-State) requires the generation of e-way bill in the system with effect from 01.02.2018.
E-way bill system in States
Even though the provisions relating to e-way bill for inter-State tran

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ll system.
Vide Notification No. 11/2018-Central Tax, dated 02.02.2018 the Central Government rescinded the Notification No. 74/2017-Central Tax, dated 29th December 2017.
Revised applicable date
Since the portal was not working up to the mark, the Government rescinded the notification as to give effect to the provisions of e-way bill which has already been notified that the same would come into effect from 01.02.2018.
The Central Government, vide Notification No. 11/2018-Central Tax, dated 02.02.2018 rescinded the notification No. 74/2017-Central Tax, dated 29.12.2017.
Vide Notification No. 12/2018-Central Tax, dated 07.03.2018 the Central Government made the Central Goods and Services Tax (Second Amendment) Rules, 2018. The following amendments in respect of e-way bill provisions have been made-
* Rule 2(ii) – substituted Rule 138;
* Rule 2(iii) – substituted Rule 138A;
* Rule 2(iv) – substituted Rule 138 B;
* Rule 2(v) – substituted Rule 138C – Inspection and verificat

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ase may be, and may also generate a consolidated e-way bill in FORM GST EWB-02 on the common portal prior to the movement of goods. Where the goods to be transported are supplied through an e-commerce operator or a courier agency, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency.
Roll out
As per the decision of the GST Council, e-Way Bill system for ​I​nter-State movement of goods has been rolled​-​out from 01st April, 2018.
Effect of e-way bill
The glitches in the e-way portal has been rectified by the Government and proposed to implement e-way bill with effect from 01.04.2018 for inter-state transactions.
Vide Notification No. 15/2018-Central Tax, dated 23.03.2018, the Central Government appointed 01.04.2018 from which the provisions of Rule 138 (except clause (7), 138A, 138B, 138C and 138D would come into effect.
The Central Government announced that the e-way bill for inter-state transactions

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M/s T.S. Tech Sun India Pvt. Ltd. Versus CGST & CE, Alwar
Central Excise
2018 (9) TMI 1483 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 13-7-2018
Appeal No. E/51142/2018-DB – A/52736/2018-EX[DB]
Central Excise
Mr. Anil Choudhary, Member (Judicial) And Mr. C.L. Mahar, Member (Technical)
Ms. Sukriti Das, Advocate – for the appellant
Ms. Tamana Alam, D.R. – for the respondent
ORDER
Per Anil Choudhary:
The present appeal has been filed against the Order-in-Appeal No. 33 to 38496-544(SM)CE/JPR/2018 dated 2.2.2018 passed by the Commissioner (Appeals), Central Excise & CGST, Jaipur
2. The brief facts of the case are that the appellants have established their factories situated in the State of Rajasthan and were operating under Rajasthan Investment Promotion Scheme which was notified by Government of Rajasthan with the objective of facilitating investment in the establishment of new enterprises. Under the various schemes of the Rajasthan Government, the

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have been filed.
3. With the above background we heard Ms. Sukriti Das, Ld. Counsel for the appellant as well as Ms. Tamana Alam, Ld. DR for the Department.
4. The Ld. Counsel for the appellant explained in detail the scheme of the Rajasthan Government regarding the grant of subsidy for new enterprises. He explained that the VAT is initially paid to the Government of Rajasthan before a portion of the same is granted as subsidy in the form of Challan Form 37B. Such challan is one of the modes which is allowed to be utilized for payment of VAT in the subsequent period along with other modes of payment including cash and input tax credit. He contended that the Revenue has wrongly proceeded under the presumption that the tax paid through 37B Challan does not represent actual payment of tax. He stressed on the fact that the scheme of the Rajasthan Government is not in the nature of exemption from payment of VAT but requires the VAT to be actually paid. Consequentially he submitted that in

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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 transaction value outlined in Section 4, with effect from 01/07/2000, any sales tax/VAT actually paid can be deducted from the transaction value for payment of excise duty. Revenue has taken the view that payment of VAT using 37B Challans cannot be considered as ac

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dy 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 the form of remission of sales tax was in fact a percentage of capital investment… Separate assessment orders were thus issued by the assessing officer of the sales tax department from time to time towards the incentive scheme amount. The Competent Authority was required

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M/s ST Woven Bags Pvt. Ltd. Versus CE & CGST, Jaipur
Central Excise
2018 (9) TMI 1482 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 13-7-2018
Appeal No. E/51034/2018-DB – A/52735/2018-EX[DB]
Central Excise
Mr. Anil Choudhary, Member (Judicial) And Mr. C.L. Mahar, Member (Technical)
Shri Ankit Totuka, Advocate – for the appellant
Ms. Tamana Alam, D.R. – for the respondent
ORDER
Per Anil Choudhary:
The present appeal has been filed against the Order-in-Appeal No. 496-544(SM)CE/JPR/2017 dated 1.12.2017 passed by the Commissioner (Appeals), Central Excise & CGST, Jaipur
2. The brief facts of the case are that the appellants have established their factories situated in the State of Rajasthan and were operating under Rajasthan Investment Promotion Scheme which was notified by Government of Rajasthan with the objective of facilitating investment in the establishment of new enterprises. Under the various schemes of the Rajasthan Government, the appellant

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filed.
3. With the above background we heard Shri Ankit Totuka, Ld. Counsel for the appellant as well as Ms. Tamana Alam, Ld. DR for the Department.
4. The Ld. Counsel for the appellant explained in detail the scheme of the Rajasthan Government regarding the grant of subsidy for new enterprises. He explained that the VAT is initially paid to the Government of Rajasthan before a portion of the same is granted as subsidy in the form of Challan Form 37B. Such challan is one of the modes which is allowed to be utilized for payment of VAT in the subsequent period along with other modes of payment including cash and input tax credit. He contended that the Revenue has wrongly proceeded under the presumption that the tax paid through 37B Challan does not represent actual payment of tax. He stressed on the fact that the scheme of the Rajasthan Government is not in the nature of exemption from payment of VAT but requires the VAT to be actually paid. Consequentially he submitted that in terms o

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ellants 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 transaction value outlined in Section 4, with effect from 01/07/2000, any sales tax/VAT actually paid can be deducted from the transaction value for payment of excise duty. Revenue has taken the view that payment of VAT using 37B Challans cannot be considered as actual pay

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allan 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 the form of remission of sales tax was in fact a percentage of capital investment… Separate assessment orders were thus issued by the assessing officer of the sales tax department from time to time towards the incentive scheme amount. The Competent Authority was required to nece

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M/s. Alkraft Thermo Technologies Pvt. Ltd. Versus Commissioner of GST & Central Excise Chennai North Commissionerate
Central Excise
2018 (9) TMI 1120 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 13-7-2018
Appeal No. E/40401/2018 – Final Order No. 42013/2018
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial)
Shri G. Mani, Advocate for the Appellant
Shri K.P. Muralidharan, AC (AR) for the Respondent
ORDER
Brief facts are that the appellants who are engaged in manufacture of radiators and parts thereof were also availing the facility of CENVAT credit of service tax paid on various input services. During the course of audit, in the year 2012, it was noticed that the appellant had availed ineligible input service tax credit on various input services. Show cause notice was issued proposing to disallow the credit which after adjudication allowed credit on certain service. The appellant filed appeal before Commissioner (Appeals) against the disallowance

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e rejection of credit alleging that these are outward transportation service is incorrect.
2.1 The authorities below have rejected the claim under the heading auditor fee. The service tax paid on charges for auditor fee has been allowed. However, the conveyance charges incurred by the appellant for the auditor on which was service tax was paid has been disallowed stating that such services (Rent-a-cab) are not eligible for credit after 1.4.2011. He submitted that such rent-a-cab service availed for bringing the auditor to the factory was highly necessary for the appellant and therefore is eligible for credit.
2.2 The appellant has availed manpower supply service for the purpose of making TDS entries and the authorities below have rejected the credit of service tax paid on such service stating that these are not having nexus with the manufacturing activity. He prayed that the same may be allowed.
2.3 Under the heading, insurance service, appellant has availed credit on goods transit

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an manner. These are actually housekeeping service and the disallowance of credit observing that these are manpower supply service is incorrect. The persons who had come from the cleaning agencies had only cleaned the premises and had not rendered any assistance or work with regard to the manufacturing activity of the appellant. That therefore this service would not fall under manpower supply service.
2.5 The consultancy service has been rightly observed by the authorities below to be legal consultancy service. However, the same has been disallowed since the appellant has not produced the documents. He submitted that the appellant has traced out the documents and would be able to furnish the same. The ld. counsel requested a further chance to produce all the documents.
2.6 Under the heading book adjustment, the authorities have rejected the service tax paid on calibration services. He submitted that manpower was recruited for doing the calibration work of the machines and these servi

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lant have now reversed the same and is not contesting. In addition, he pleaded that the penalties imposed in respect of the said services may be set aside.
3. On behalf of Revenue, ld. AR Shri K.P. Muralidharan supported the findings in the impugned order.
3.1 With respect to outward transportation service, he submitted that the same is beyond the place of removal and therefore not eligible for credit. In respect of audit fee service, he submitted that the authorities below have allowed the credit in respect of service tax paid for charges towards auditors and have disallowed the credit only in respect of conveyance charges for the auditor. The said services are not eligible for the reason that the appellant has not produced sufficient documents to show that the vehicle used for providing conveyance is capital goods for the service provider. Thus, as per clause (B) of the definition of 'input service', the said services are not eligible for credit.
3.2 In respect of TDS entry, he su

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the orders as outward transportation, the appellant has produced invoices as discussed in the adjudication order to show that these service are availed by the appellant for sending the free samples to the buyer abroad. The documents show that the services of DHL courier service were availed by the appellant for sending the samples of medicines to buyers abroad. I am convinced that these are not outward transportation service as alleged in the show cause notice or in the adjudication order. The said services are indirectly related to the manufacturing activity as only if the appellant sends the samples to foreign buyers, they would be able to procure orders from such foreign buyers. However, the said invoices were not produced before the adjudicating authority. Therefore, I deem it fit to remand the said issue to the adjudicating authority who shall verify the invoices and consider the discussions made with regard to this issue.
5.2 With regard to audit fee, it is seen that the authori

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ligible for credit. With regard to employees insurance, which is in the nature of covering the risk of gratuity amount, I am of the view that the same would not fall within the exclusion clause. The manufacturer avails such insurance to cover the financial risk that he would have to face in case of payment of gratuity to employees and therefore is directly related to manufacture. I therefore allow the credit in respect of insurance service.
5.5 The authorities below have rejected the credit in respect of housekeeping service observing that these are manpower supply service. I have perused the invoices produced before me which shows that the appellant has availed cleaning services from various cleaning agencies. However, it is seen that the appellant has not produced the entire invoices regarding this issue. I therefore remand the matter to the adjudicating authority who shall consider the eligibility of credit on housekeeping service, who shall grant the appellant an opportunity of pe

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Under heading, other services, the appellant has availed manpower used for data entry. However, he has not produced any invoice before the adjudicating authority. Since the service is connected with accounting and falls within the inclusive part of input services, I am of the view that the said services would be eligible for credit if the appellant produces the invoices disclosing the payment of service tax. The said issue is also remanded to the adjudicating authority.
5.9 The credit in respect of manpower (shivtej) is not contested by the appellant and therefore upheld. The appellant is also not contesting the credit on works contract service used for repair and maintenance.
5.10 The ld. counsel has also argued that during the relevant period, the issue as to eligibility of rent-a-cab service as well as construction service in respect of maintenance and renovation (WCS) was under confusion being interpretational issue, the penalties may be set aside. I find that there were doubts

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M/s. B.R. Industries Versus Union of India And 4 Others
GST
2018 (8) TMI 211 – ALLAHABAD HIGH COURT – 2018 (15) G. S. T. L. 4 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 13-7-2018
Writ Tax No. – 984 of 2018
GST
Ms. Bharati Sapru And Mr. Dinesh Kumar Singh, JJ.
For The Petitioner : Vishwjit
For The Respondent : C.S.C.,A.S.G.I.
ORDER
Heard Sri Vishwjit, learned counsel for the petitioner, Sri Vaibhav Tripathi, Advocate holding brief of Sri Gyan Prakash, ASGI for the respondent nos.1, 2 & 3, learned Standing Counsel appears for the respondent nos.4 and 5.
The petitioner seeks a writ of mandamus directing the GST council respondent no.2 to make recommendations to the State Government to extend the time period for filing

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Commissioner of Central Goods And Service Tax, Jodhpur Versus ACE Construction Mines And Mineral Coop. Society
Service Tax
2018 (8) TMI 149 – SC Order – 2018 (16) G.S.T.L. J128 ( SC), (2024) 130 GSTR 439
SUPREME COURT OF INDIA – SC
Dated:- 13-7-2018
Civil Appeal No 6691 of 2018
Service Tax
Mr. Ranjan Gogoi And Mrs. R. Banumathi JJ.
For the Appellant(s) : Mr. Maninder Singh, ASG, Ms. Binu Tamta, Adv., Mr. Ritesh Kumar, Adv., Mr. Amarjeet Singh, Adv. And Mr. B. Krishna Prasa

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THE ASSISTANT STATE TAX OFFICER, STATE GOODS AND SERVICE TAX DEPARTMENT KERALA, EDAPPALLY AND ASSISTANT COMMISSIONER (ASSESSMENT), THIRUVANANTHAPURAM Versus RAVI PARAMESHWARAN PILLAI, PROPRIETOR, M/s. DEVI CHEMICALS
GST
2018 (7) TMI 1260 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 13-7-2018
Writ Appeal No. 646 of 2018
GST
MR. K. VINOD CHANDRAN AND MR. ASHOK MENON, JJ.
For The Appellant : Sri Mohammed Rafiq
For The Respondent : Sri.S.Santhosh Kumar
JUDGMENT

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THE ASSISTANT STATE TAX OFFICER, ERNAKULAM AND STATE TAX OFFICER (INTELLIGENCE) O/O. INSPECTING ASST. COMMISSIONER (INT.), Versus M/s. INDUS TOWERS LIMITED
GST
2018 (7) TMI 1181 – KERALA HIGH COURT – 2018 (16) G. S. T. L. 531 (Ker.) , [2018] 55 G S.T.R. 404 (Kerala)
KERALA HIGH COURT – HC
Dated:- 13-7-2018
W. A. Nos. 371 And 699 of 2018
GST
Mr. K. Vinod Chandran And Mr. Ashok Menon, JJ.
For The Appellant : Senior Government Pleader Sri.Mohammed Rafiq
For The Respondent : Sri. A. Kumar, Sri. P.J. Anilkumar, Smt. G. Mini And Sri. P.S. Sree Prasad
JUDGMENT
Vinod Chandran, J:
Whether in the case of a transport, wherein obviously there is no tax liability on the goods, there could be a detention and seizure effected under Section 129 of the Central Goods and Services Tax Act, 2017 [for brevity “CGST Act”] and Kerala State Goods and Services Tax Act, 2017 [for brevity “SGST Act”] and a release ordered as provided under sub-section (1) or order passed under sub-se

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detaining officer issued a notice at Ext.P3 detaining the goods against which the writ petitioner was before this Court. In the other appeal the writ petitioner, dealer in surgical gloves, sent the goods for quality appraisal on job-works and was transporting the same to their business premises for further sale; when the vehicle was detained.
3. The learned Single Judge looked into the provisions defining taxable person and taxable supply as also Section 7 detailing the scope of supply to find that when a taxable person transports goods procured by them for own use to the site, where the goods are to be consumed, the transaction is not for consideration and would not even fall within the scope of Schedule I. Schedule I enumerates those activities, though made without consideration, which fall within the scope of supply. The delivery chalan which accompanied the goods had not been disputed and hence the transaction even according to the detaining officer would not fall within the scop

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d the Rules made there under with the intent to evade payment of tax. If that be so, mere infraction of the procedural Rules like Rules 55 and 138 of the State GST Rules cannot result in detention of goods, though they may result in imposition of penalty. In other words, detention of goods merely for infraction of the procedural Rules in transactions which do not amount to taxable supply, is without jurisdiction.”
As a consequence of the aforesaid finding, the goods were directed to be released unconditionally; finding the action under Section 129 to be without jurisdiction. The aforesaid decision challenged in W.A.No.371 of 2018 was followed in the judgment impugned in W.A. 699 of 2018.
5. The learned Senior Government Pleader assails the decision specifically pointing out the scheme of the goods and service tax enactment and the rules framed thereunder; which encompasses both the sale of goods and supply of services bringing in a total regime change insofar as; the former value ad

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gues the learned Senior Government Pleader, especially pointing out that even in the case of exempted goods, the contravention of the Act and the Rules would entail penalty equal to 2% of the value of goods or 25,000/- rupees which ever is less in the case in which the transporter or the owner of the goods voluntarily comes forward for release of the goods. In the case of no such voluntary action having been taken, the goods would be released only on payment of an amount equal to 50% of the value of goods or 25,000/- rupees whichever is less; under sub-clause (b).
6. There is also provision for release of the goods upon furnishing security equivalent to the amount payable under clause (a) or clause (b) of Section 129(1). Sub-section (3) provides for an adjudication, wherein a notice is issued specifying the tax and penalty payable and thereafter passing an order for payment of such tax and penalty under clause (a), clause (b) or clause (c). There can be release of the goods only on th

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liability for contravention of the Act and Rules. The evasion if any attempted, is not relevant as per the statute, for detention or imposition of penalty under Section 129. The judgments of two Division Benches of this Court, reported in CTO v. Madhu M.B. [(2017) 105 VST 244 (Ker.)] and in W.A.No.509 of 2018 dated 28.02.2018, are also pressed into service to contend that at least at the stage of detention it cannot be looked into whether there is any taxability or not and there should be security furnished, for the tax and penalty that can be imposed under Section 129(1)(a) or (b), to effect release of the goods. Necessarily for release, sub-clause (c) of Section 129(1) will have to be employed as provided in the statute.
8. The learned Counsel for the two respondents, however, points out that Section 129 specifically speaks of penalty as relatable to the tax applicable equal to 100% of the tax payable on such goods. This would necessarily indicate that there can be no penalty impose

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ndents seek to sustain the judgment of the learned Single Judge specifically pointing out that their transactions, one being of consignment to ones own site and the other of re-transmission after job work, are not taxable transactions. It is emphasized that the words employed in Section 129(1)(a) are 'applicable tax and penalty equal to one hundred per cent of the tax payable'. Hence, only if there is a liability to tax, could there be a detention and a subsequent order being passed for payment of tax and penalty under Section 129. It is pointed out that the learned Single Judge has found that there is no dispute raised by the detaining officer as to the delivery chalan which accompanied the transport. A delivery chalan is prepared in triplicate; which issued forms are serially maintained with the assessee. The original of the delivery challan is for the consignee, the duplicate accompanies the transport and the triplicate is retained by the consignor/assessee for production al

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of the IGST Act and, hence, there could be no tax or penalty levied on the transaction.
10. Guljag Industries is read over to contend that the instant case is not one in which there is a civil liability. Guljag Industries was concerned with two instances; one being the transport accompanied with a incomplete form and the other being a total absence of document, which are to accompany the goods. The finding with respect to a civil liability was confined to those instances where there was an incomplete form. In the case of absence of documents, the Hon'ble Supreme Court left it to be considered in the light of the judgment in State of Rajasthan v. D.P.Metals [(2002) 1 SCC 279]. As held by the Hon'ble Supreme Court, the breach cannot be one merely of a technical or venial nature but postulates mens rea. In the present cases, where there was absence of the declaration under KER-1, it cannot be said that there is only a technical or venial breach and there should definitely be a g

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e a futile exercise, since on violation being found, necessarily tax and penalty would have to be imposed. This would violate the principles of reasonableness and fall foul of Article 14 of the Constitution of India. The last contention is with reference to Form KER-1 as seen from the SGST Rules. The form indicates a facilitation centre, which centres are now, after abolition of check posts; not available. Without the facilitation centre being shown, there could be no uploading effected, is the submission. Based on Section 138 of the SGST Act and Form KER-1 as seen from the Rules, it is argued that the declaration is required only for inter-State transport.
12. At the outset, it is to be stated that we refrain from considering the reasonableness of the provision or violation alleged of Article 14 for the simple reason that there is no challenge to the provisions as such in the writ petition. We also do not think that there is any finding in the notices issued as to the genuineness of

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d declaration.
13. In W.A.No.371 of 2018, the goods transported were said to have been purchased by the assessee inter-State and stored in his godown. The instant transport was allegedly to the work site of the assessee for installation of the goods at such work site. In W.A.No.699 of 2018, the assessee had purchased goods, then entrusted it for job work and was transporting it to its own business premises for further sale. Both produced delivery chalan issued by them. The delivery chalan having been produced, the transaction was found to be one having no tax liability; which necessarily required a declaration in Form KER-1. Sub-section (3) of section 55 specifically speaks of a declaration as specified in Rule 138, when goods are transported on a delivery chalan in lieu of invoice. This specifically is a violation of the Act and Rules and we cannot agree with the learned Single Judge that the genuineness of the delivery chalan was accepted by the department. A delivery chalan, under

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oods transported were not declared though signed in blank. The goods had originated in Andhra Pradesh and it was the contention of the consignee in Rajasthan; that the form was not filled up with the details of the goods, only since the consignor was not conversant in Hindi. The Adjudicating Officer refused to accept the explanation and in first appeal it was noticed that the form had to be filled up by the consignee; who had also signed it in blank. The Tribunal set aside the penalty on the conclusion that there was no mens rea on the part of the consignee. The High Court reversing the findings of the Tribunal held that the declaration was not filled in deliberately, indicating the intention of the assessee to evade tax.
15. In the other instance when the goods were detained and checked the driver produced the bill for a certain quantity of goods. The quantity of goods, on actual verification, contained in the vehicle, was far more than that covered by the bill. On further inspection

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icate, the original of which, the competent officer at the check post has to forward to the Assessing Officer. It was also noticed that the Form in which the declaration has to be made is issued by the Department, which has two parts one to be filled in by the consignee and the other by the consignor. The consignee having signed it without entering the material particulars of the goods, it was held, the declaration itself becomes meaningless for reason of the identity & description of goods transported, having not been disclosed. Without these material particulars there could be manipulation of value and also multiple transport resulting in the assessment being put into jeopardy.
17. The Supreme Court, in Guljag Industries noticed the dichotomy; (i) a liability for non filing of statements before the Assessing Officer and (ii) the goods being in movement without supporting declaration forms in para 26. In the case of a statement not being filed before the Assessing officer, it results

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imposed for a tax delinquency is a civil obligation, remedial and coercive in its nature, and is different from the penalty for a crime.
32. … In the present case, we are not concerned with the transit pass. In the present case, there are no words in Section 78(5) similar to Section 28-B of the Uttar Pradesh Sales Tax Act, 1948 which states that if the transit pass was not handed over to the officer at the check-post, the Department would be entitled to raise the presumption that the goods in transit were sold in the State. As stated hereinabove, we have to go by the words used in the section to ascertain whether the legislature has excluded the element of mens rea. It is the statutory law enacted by the competent legislature which can exclude the presumption under common law. We hold that Section 78(5) excludes the presumption of mens rea which is normally prevailing in common law. Our reasoning is also based on one more factor, namely, that Section 78(5) provides a remedy for re

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ve to mislead the authorities. However in such cases the presumption would be rebuttable, by the assessee on production of requisite documents referred to in the provision. The declaration was to the effect that if by mistake some documents were not readily available at the time of checking, principles of natural justice require an opportunity to produce the same. Even in such circumstance, it has to be proved that there is no possibility of the document being subsequently prepared. The declaration in D.P. Metals according to us, is only to the effect that if the statutorily required documents were not accompanying the goods in transport, then the assessee should be given an opportunity to prove that the documents where in fact existing but the same did not accompany the goods for a bonafide reason. The opportunity to rebut cannot extend to the assessee creating or even making valid documents subsequent to the detention.
20. The High Court in interpreting a provision would and should

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ribed form, serially and in triplicate. The delivery chalan is not issued by the Department and the numbering of the same in serial is fully with the assessee. We say this because the learned single judge has specifically found that there was no dispute regarding the genuineness of the delivery challan. It has to be observed that a dispute on genuineness would arise if the forms have been issued by the Department. In the earlier regime the Delivery Notes were issued by the Department, the copies of used ones to be furnished to the Department along with the return. In the present regime there is a virtual site maintained by the Department where in the forms are to be uploaded; which serves as intimation to the Assessing Officer.
21. In the present case the delivery chalan which accompanied the transport is one issued by the assessee respondent, over which the assessee has absolute control and could be subject to manipulation. The assessee having transported the goods with delivery chal

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. This would not absolve the liability to tax and penalty under Section 129. As has been held in Guljag Industries and D.P. Metals when there is absence of a declaration in the prescribed form; mandatorily required to accompany a transport of goods, then there can be no automatic penalty. The transporter, consignor or the consignee should be given an opportunity to prove that there was in fact a declaration validly made, before the commencement of the transport and hence the ommission was only technical and venial in so far as the declaration not physically accompanying the transport. The violation would stand on a totally different footing, from a forged declaration or an incomlete or blank declaration accompanying the transport. Hence if the declration as in this case, was infact uploaded prior to the transport the assessee could be absolved from the penalty but otherwise penalty is an automatic consequence. The time when such declration was uploaded is crucial and a declaration made

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e to evolve an abstract principle of law which could be applied to determine the question. As already stated, answer to the question depends on the object of the statute and the language employed in the provision of the statute creating the offence. There is no gainsaying that a penal provision has to be strictly construed on its own language”.
The offence alleged in the cited case law was purchase of goods on the strength of C forms; which goods were not included in the registration certificate. The defence set up was that there was a bonafide mistake touching upon the description of the goods included in the registration certificate and the Department had been permitting such purchases in the previous years. The learned Judges held so, with reference to the specific statutory provisions in paragraphs 30 & 31:
“30. To put it succinctly, in examining whether mens rea is an essential element of an offence created under a taxing statute, regard must be had to the following factors:

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e petitioner to rebut the presumption available of an attempt to evade tax by reason of the documents having not accompanied the goods. Answering this, we would think that the contention of adjudication under Section 129(3) being a mirage would also be answered. If the declaration was in fact uploaded before the commencement of the transport and by some means the driver was not able to produce it before the detention, definitely the consignor could prove that the declaration was uploaded before the transport. This would absolve the liability for penalty, since if the declaration had been uploaded prior to the transport, there is no mens rea on the consignor or the transporter and there could be found no intention of diversion of goods. However, a declaration made subsequent to the detention would not absolve the assessee from the liability. In fact in W.A.No.371 of 2018 there is a declaration made after detention; which cannot absolve the liability to penalty and also establish that th

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ity of the goods transported. The finding that the transaction would not fall within the scope of taxable supply under the statute, cannot be sustained for reason of there being no declaration made under Rule 138. The resultant finding that mere infraction of the procedural rules cannot result in detention of goods though they may result in imposition of penalty cannot also be sustained. If the conditions under the Act and Rules are not complied with, definitely Section 129 operates and confiscation would be attracted. The respondents are entitled to an adjudication, but they would have to prove that in fact there was a declaration made under Rule 138 before the transport commenced. If they do prove that aspect, they would be absolved of the liability; otherwise, they would definitely be required to satisfy the tax and penalty as available under Section 129. We, hence, vacate the judgment of the learned Single Judge and allow the appeal. The vehicle and the goods having been already re

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M/s. Leo Oils and Lubricants Versus Commissioner of GST & Central Excise
Central Excise
2018 (7) TMI 997 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 13-7-2018
Appeal No. E/40362/2018 – Final Order No. 42012 / 2018
Central Excise
Hon'ble Ms. Sulekha Beevi C.S., Member (Judicial)
Shri T.R. Ramesh, Advocate for the Appellant
Shri K.P. Muralidharan, AC (AR) for the Respondent
ORDER
Brief facts are that the appellant is engaged in manufacture lubricating oils on job work basis to M/s. IBP Ltd. and were availing the facility of MODVAT scheme. They applied for transitional credit to the tune of Rs. 11,03,303/- which was not granted by the department. The matter reached the Tribunal and vide Final Order No. 40880/2016 dated 3.6.2016, Tribunal allowed the appeal of the appellant observing that the appellant is entitled to cash refund to the tune of Rs. 11,03,303/. The factum of final order was intimated to the department requesting for refund of the said amount.

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no powers to readjudicate the matter which has been already decided by the Tribunal. It is also submitted by him that no show cause notice was issued to the appellant for raising the contention that the appellant is not eligible for refund of Rs. 8,13,816/-.
3. The ld. AR Shri K.P. Muralidharan supported the findings in the impugned order. He adverted to the discussions in the Order-in-Original and submitted that the credit to the tune of Rs. 8,13,816/- was already allowed to the appellant as transitional credit on 7.2.1996 and it was not reflecting in the credit balance when the assessee has opted out of the MODVAT scheme in March 2003. That this would mean that the appellant has utilized the credit of Rs. 8,13,816/- and therefore the authorities below have rightly disallowed the refund.
4. Heard both sides.
5. At the outset, it has to be stated that the Tribunal vide Final Order No. 40880/2016 dated 3.6.2016, had categorically held that the appellant is eligible for cash refund of

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such as the one if allowed to continue would deprive the assessees, as in the instant case. In view of the foregoing discussions, I hold that appellant is entitled to cash refund. Accordingly, the appeal is allowed with consequential relief.”
6. It is thus seen that the Tribunal had considered the issue whether the appellant is eligible for cash refund to the tune of Rs. 11,03,303/- and held that the same is eligible. The adjudication authority who is put to notice with regard to the order of the Tribunal has to then comply with the order and sanction the refund. He has no powers to enter into the issues which have already been decided by the Tribunal. Interestingly, the adjudication has happened by merely giving a personal hearing and not even issuing a show cause notice. Further, in para 1 of the order passed by the Tribunal, it is noted that the issue with regard to Rs. 8,13,816/- was not contested by the department and after several rounds of litigation vide Order-in-Original No.

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Examination for Confirmation of Enrollment of GST Practitioners
GST
Dated:- 12-7-2018

National Academy of Customs, Indirect Taxes and Narcotics (NACIN) has been authorized to conduct an examination for confirmation of enrollment of Goods and Service Tax Practitioners (GSTP) in terms of sub-rule (3) of rule 83 of the Central Goods and Service Tax Rules, 2017, vide Notification No. 24/2018-Central Tax dated 28.5.2018.
The GSTPs covered under rule 83(1)(b) read with second proviso to

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Government Service Tax Exemption Not Applicable to Corporate Bodies Like OKCL in Training Programs.
Case-Laws
GST
Exemption towards supply of services provided to government under any trainin

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GENERATING REPORTS
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 12-7-2018

There is an option for the user to generate various reports to manage his business – some are detailed and others are summarized. The system also helps him to generate action based reports. The following reports are available-
* Outward supplies;
* Inward supplies;
* Consolidated E-way bill generated by me;
* Cancelled e-way bills;
* Rejected e-way bills by me;
* Assigned for transporters;
* Assigned for transporters;
* Other EWB reports-
* Generated by others;
* Rejected e-way bills by others;
* Assigned to me for transports;
* Masters Reports-
* My masters;
* E-way Bill masters.
* Summary Reports-
* Date wise activities.
My EWB Reports This will give the list of e-Way Bills generated by the user for a particular date which includes the following:
* Outward Supplies- This will generate the list of e-Way Bills which have been shown as out

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e for Transport- This will list the e-Way Bills assigned to user for Transport by others.
Master Reports
Following reports are available under this option:
* My Masters – This generates the list of master entries under different categories like Clients, Suppliers, Transporters and Products.
* EWB Masters – This will list the e-Way Bills based on Unit Quantity Code and State Code.
Summary Reports
Date wise Activities- This will list the activities pertaining to particular e-Way Bill for a particular date. The user can export the populated details in an excel by clicking on 'Export to Excel” tab.
My masters
The e-Way Bill system allows the user to create his own business related Masters. Masters data simplifies the data entry while generating the e-Way Bill. It helps user to generate e-Way Bill easily and quickly without any errors. The master consists of Products, Clients, Suppliers, and Transporters.
Products
When the user selects sub option 'Product' under option 'Mast

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ts
A user shall select the sub option 'Clients' under option 'Masters' to enter the client details into the masters, the following screen is shown when the clients tab is selected. The user can enter the customer details as a GST registered or GST un-registered customer. When the GST registered option is selected, the user has to enter the GSTIN of the customer. Once the GSTIN is entered, the system shows the customer details in the combo box. If the GSTIN holder has additional place of the business, then the combo will show main and additional places of business. The user has to select whichever is required. If multiple places have to be selected, click button and select. Once submit is given, the system saves the details of that particular customer in the masters.
If the user selects the GST un-registered option, the Customer Master screen will appear. The user needs to enter the state, name, client address, place, pin code, mobile number and email of the client and select submit.

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er needs to have the EWB bulk convertor or the excel file, which helps the user to convert the multiple e-Way Bills excel file into a single JSON file. To upload a Bulk Master, user needs to click the 'Bulk upload' under 'My Masters' module and then select the option for Bulk Master as shown in screen. The user can then upload the JSON file for the selected option and generate the respective Master accordingly.
User Management
Some of the users or taxpayers need to generate the e-Way Bill from multiple business places or in 2- 3 shifts or many numbers of e-Way Bills under his account. Also, some of the users do not want to manage all the activities under one username or account. Under this circumstance, he/she may not be able to manage this with one user name. These tax payers can use the user management option to create multiple sub-users and assign them different roles. The following sub-options explain the user how to manage the sub-users-
* Create sub-user;
* Freeze sub-user

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ror if the entered fields are incorrect otherwise the system will create a sub-user and send SMS pop up a message with password to the sub-user.
Freeze Sub-User
The system gives an option to the user to freeze the sub user. Once the user selects 'Freeze sub-user' under the option user management, a screed will appear. The user shall select the freeze button to freeze a sub user. Once a sub-user is frozen, he/she won't be able to login E-way bill portal.
Update Sub-User
In the same manner explained under 'create sub user', a user can update a sub-user in the sub option 'Update sub-user' under user management.
Change Password
A user shall change his login password under this option. Once the user clicks on sub option change password under the option user management, a screen is displayed. In this form the user needs to enter the old password, enter the new password he/she wants to use and click submit. The system will change the login password of the user with new entered passwo

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COMMISSIONER, CGST AND CENTRAL EXCISE Versus NARESH F. SHAH
Central Excise
2019 (1) TMI 821 – GUJARAT HIGH COURT – 2018 (362) E.L.T. 972 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 12-7-2018
R/Tax Appeal No. 741 of 2018 with R/Tax Appeal No. 742 of 2018
Central Excise
M.R. Shah and A.Y. Kogje, JJ.
Shri P.Y. Divyeshvar, for the Appellant.
JUDGMENT
[Judgment per : M.R. Shah, J. (Oral)]. – As common question of law and facts arises and as such one is with respect to the Company and another is with respect to the Director of the Company, both these Appeals are decided and disposed of together by this common order.
2. The facts leading to the present Tax Appeals in nutshell are as under;
2.1 Proceedings were initiated against the Company for recovery of Rs. 43,38,450/- on account of wrong availment of Cenvat Credit duty on Linear Alkyl Benzene (LAB) (hereinafter referred to as 'LAB'). It was alleged that LAB was not at all utilized as input in the final produ

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ded statement of Shri Vijay A. Vora, Excise Clerk of M/s. Ganesh Chem Tech that it did not contain LAB. I further find that the adjudicating authority has heavily relied on post facto opinion of Dr. Y.K. Agarwal, Director of School of Science, Gujarat University which based on technical literature of the final products manufactured by the appellants stating that LAB is not essential raw material/ingredient in the manufacture of their final products. I find that such opinion was obtained in some another case of the Commissionerate and not in the case of appellants & the copy of the opinion of Dr. Y.K. Agarwal, Director of School of Science, Gujarat University was also not given to the appellants in the interest of Principle of natural justice. The question for consideration in this case is if the initial confessional statements of the clerk and director of the appellants are sufficient evidence to prove serious charges of irregular availment of cenvat credit if there is no evidence othe

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receipt/acknowledgment on the body of LRs. He was having no records showing where the said tankers of LAB were unloaded practically. It is universal fact that the onus to prove irregular availment of Cenvat credit is on the part of Department. In view of the statement of dealer Shri Jayesh M. Bhimani & transporter Shri Ravindra M. Shah it cannot be disputed that LAB was not delivered by dealer Jayesh M. Bhimani to the appellants at Sr. No. 1 of the table above. The initial statement of Naresh F. Shah that he used to take payment by cheque & get back 98% by cash is also not reliable as there is no evidence to support this statement as investigation even did not confirm that there have been cash withdrawal by Shri Jayesh M. Bhimani from any of his accounts. I therefore hold that the Department has to prove with documentary evidences about diversion of 519.511 Mts. of LAB during the year 2001-02 to 2003-04 by the appellants or dealer after taking Cenvat credit thereon. The case of non us

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therefore, the adjudicating authority was not in a position to take the samples for chemical test. However, it is required to be noted that as such the matter was remanded to the learned Commissioner (Appeals) for the very purpose by specifically observing that the onus is on the Department to prove that the assessee wrongly availed the Cenvat Credit on the tax paid on LAB, which was used in the input of the final product, and therefore, unless and until the Department was able to prove that in the final product the LAB was not used/utilized at all, the Department was not justified in holding that the assessee wrongly availed the Cenvat Credit on LAB. So far as other circumstances are concerned, statement of other persons, which were earlier relied upon by the original adjudicating authority while passing the first order, were as such considered and dealt with by the Learned Commissioner (Appeals) and in fact the Learned Commissioner (Appeals) came to a conclusion on the basis of the

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Sadguru Electricals Versus The Commissioner Customs, Central Excise and Service Tax (Now the Commissioner of CGST and Central Excise, Commissionerate Aurangabad.)
Service Tax
2018 (12) TMI 1429 – BOMBAY HIGH COURT – TMI
BOMBAY HIGH COURT – HC
Dated:- 12-7-2018
CENTRAL EXCISE APPEAL NO. 7 OF 2018
Service Tax
PRASANNA B. VARALE & S. M. GAVHANE,JJ.
Mr. Alok Sharma, Advocate h/f Mr. R.S. Indani, Advocate for appellant;
Mr. D.S. Ladda, Advocate for respondent sole.
ORAL ORDER :
Heard Mr. Alok Sharma, learned Counsel appearing for the appellant and Mr. Ladda, learned Counsel for the respondent sole.
2. There is no dispute on the facts that the appellant subjected himself to a scheme known as 'Voluntary Compliance Encouragement Scheme'.(for short, 'VCES'). Certain rules are also framed and they are known as 'Service Tax Voluntary Compliance Encouragement Rules, 2013'. The appellant runs enterprise namely Sadguru Electricals and is engaged in providing taxable servic

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contained code under Finance Act, 2013 without any appeal provision in the scheme dismissed the appeal holding that the appeal is not maintainable. He then submits that dismissal of appeal on the ground of no provision in the scheme is unsustainable. He further submits that basic Act itself provides remedy of appeal and merely because such appeal remedy is not a part of same scheme, the appeal ought not to have dismissed by the tribunal on the ground that there is no provision in the scheme of appeal.
6. Mr. Sharma, learned Counsel appearing for the appellant by placing heavy reliance on the judgment of Madras High Court in the matter of Narasimha Mills Pvt. Ltd. vs. Commissioner of C. Ex.(Appeals), Coimbatore, reported in 2015(39) S.T.R. 795 (Mad.) submitted that the very issue fall for consideration before the Madras High Court and the Madras High Court, by specific observation, dismissed the appeal on the ground that there is no remedy of appeal in the scheme would be giving unfet

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ssue in paragraph Nos. 18 and 19, which read thus :
“18. Further, it is relevant to note that the Service Tax Voluntary Compliance Encouragement Scheme, 2013 has been introduced by the Central Government, in exercise of the powers conferred by subsections (1) and (2) of Section 114 of the Finance Act, 2013 (17 of 2013) with effect from 13.5.2013 by Notification 10/2013 and hence, it is not a self-contained code, but is to be construed as a part and parcel of the Chapter V of the Act, 1994 in view of the contents of Section 105 of the Finance Act, 2013. Therefore, when the said scheme itself is construed as part and parcel to the Finance Act, all other provisions of the Act except to the extent specifically excluded would automatically apply to proceedings under the scheme and consequently, I am of the view that the order, dated 15-11-2013 passed by the Assistant Commissioner of Central Excise, the second respondent herein is appealable under Section 85 of the Act, 1994.”
“19. The rem

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The Puducherry Goods and Services Tax (Seventh Amendment) Rules, 2018.
G.O. Ms. No. 36 Dated:- 12-7-2018 Puducherry SGST
GST – States
Puducherry SGST
Puducherry SGST
GOVERNMENT OF PUDUCHERRY
COMMERCIAL TAXES SECRETARIAT
(G.O. Ms. No. 36, Puducherry, dated 12th July 2018)
NOTIFICATION
In exercise of the powers conferred by section 164 of the Puducherry Goods and Services Tax Act, 2017 (Act No.6 of 2017), the Lieutenant-Governor, Puducherry, hereby makes the following rules further to amend the Puducherry Goods and Services Tax Rules, 2017, namely: –
1. (1) These rules may be called the Puducherry Goods and Services Tax (Seventh Amendment) Rules, 2018.
(2) They shall be deemed to have come into force with effect from the

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COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX AND CENTRAL EXCISE Versus CADILA HEALTH CARE LTD.
Service Tax
2018 (11) TMI 181 – GUJARAT HIGH COURT – 2018 (18) G. S. T. L. 47 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 12-7-2018
R/TAX APPEAL NO. 591 of 2018 With R/TAX APPEAL NO. 593 of 2018 With R/TAX APPEAL NO. 614 of 2018
Service Tax
MR M.R. SHAH AND MR A.Y. KOGJE, JJ.
For The Petitioner : MR DHAVAL D VYAS (3225)
For The Respondent : MR HIRAK P.GANGULY for MR HASIT DAVE (1321)
ORAL JUDGMENT
(PER : HONOURABLE MR.JUSTICE M.R. SHAH)
1. There is a broad consensus between learned Advocates appearing for the respective parties to dispose of the present appeals on the same terms as per the order passed in other group of ap

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passed by the learned Tribunal is hereby quashed and set aside and the appeals are restored to the file of the learned Tribunal and to avoid any further multiplicity of proceedings /appeals before this Court, it is directed that the appeals on remand be kept pending till the decision of this Court in the case of Essar Steel India Ltd., being Tax Appeal No.444 of 2016.
8. The appeals are partly allowed to the aforesaid extent.
9. It will be open for the Revenue /Department to file note /application for fixing early date of hearing of Tax Appeal No.444 of 2016, as the decision on the said appeal would have direct bearing in pending appeals before the learned Tribunal, which are reported to be more than 100.”
3. In view of the above a

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Raj Electrical Engineering Works Versus The Commissioner Customs, Central Excise and Service Tax (Now the Commissioner of CGST and Central Excise, Commissionerate Aurangabad.)
Service Tax
2018 (9) TMI 1672 – BOMBAY HIGH COURT – 2018 (18) G. S. T. L. 595 (Bom.)
BOMBAY HIGH COURT – HC
Dated:- 12-7-2018
CENTRAL EXCISE APPEAL NO.6 OF 2018
Service Tax
PRASANNA B. VARALE & S. M. GAVHANE,JJ.
Mr. Alok Sharma, Advocate h/f Mr R.S. Indani, Advocate for appellant;
Mrs. (Dr.) Kalpalata Patil Bharaswadkar, Advocate for respondent sole.
ORAL ORDER :
Heard Mr. Alok Sharma, learned Counsel appearing for the appellant and Mrs. Bharaswadkar Patil, learned Counsel for the respondent sole.
2. There is no dispute on the facts that the appellant subjected himself to a scheme known as 'Voluntary Compliance Encouragement Scheme'.(for short, 'VCES'). Certain rules are also framed and they are known as 'Service Tax Voluntary Compliance Encouragement Rules, 2013&#39

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irstly reference is made to the absence of the appellant, the tribunal subsequently by observing that VCES being a self contained code under Finance Act, 2013 without any appeal provision in the scheme dismissed the appeal holding that the appeal is not maintainable. He then submits that dismissal of appeal on the ground of no provision in the scheme is unsustainable. He further submits that basic Act itself provides remedy of appeal and merely because such appeal remedy is not a part of same scheme, the appeal ought not to have dismisseed by the tribunal on the ground that there is no provision in the scheme of appeal.
6. Mr. Sharma, learned Counsel appearing for the appellant by placing heavy reliance on the judgment of Madras High Court in the matter of Narasimha Mills Pvt. Ltd. vs. Commissioner of C. Ex.(Appeals), Coimbatore, reported in 2015(39) S.T.R. 795 (Mad.) submitted that the very issue fall for consideration before the Madras High Court and the Madras High Court, by specif

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by Madras High Court as well as Punjab & Haryana High Court.
9. It would be useful to refer observations of Madras High Court on the issue in paragraph Nos. 18 and 19, which read thus :
“18. Further, it is relevant to note that the Service Tax Voluntary Compliance Encouragement Scheme, 2013 has been introduced by the Central Government, in exercise of the powers conferred by sub-sections (1) and (2) of Section 114 of the Finance Act, 2013 (17 of 2013) with effect from 13-5-2013 by Notification 10/2013 and hence, it is not a self-contained code, but is to be construed as a part and parcel of the Chapter V of the Act, 1994 in view of the contents of Section 105 of the Finance Act, 2013. Therefore, when the said scheme itself is construed as part and parcel to the Finance Act, all other provisions of the Act except to the extent specifically excluded would automatically apply to proceedings under the scheme and consequently, I am of the view that the order, dated 15-11-2013 passed by th

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The Punjab Goods and Service Tax (Eighth Amendment) Rules, 2018.
G.S.R.46/P.A.5/2017/S.164/Amd.(16)/2018 Dated:- 12-7-2018 Punjab SGST
GST – States
Punjab SGST
Punjab SGST
GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE AND TAXATION
(EXCISE AND TAXATION-II BRANCH)
NOTIFICATION
The 12th July, 2018
No. G.S.R.46/P.A.5/2017/S.164/Amd.(16)/2018.-In exercise of the powers conferred by section 164 of the Punjab Goods and Services Tax Act, 2017 (Punjab Act No.5 of 2017), and all other powers enabling him in this behalf, the Governor of Punjab, on the recommendations of the Council, is pleased to make the following rules further to amend the Punjab Goods and Service Tax Rules, 2017, namely:-
RULES
1. These rules may be called the Pun

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rule (2), the provisos shall be deemed to have been inserted and with effect from the 17th August, 2017; and
(b) in sub-rule (3), the second proviso shall be deemed to have been substituted on and with effect from the 17th August, 2017.
(vi) in FORM GST REG-01, under the heading 'Instructions for submission of Application for Registration', Serial No.16 shall be deemed to have been added on and with effect from the 17th August, 2017.
3. In the said rules, in Notification No.G.S.R.46/P.A.5/2017/S.164/Amd.(4)/2017 dated the 03rd October, 2017, for sub-rule (1) to amending rule 1, the following shall be substituted, namely:-
“(2) Save as otherwise provided in these rules, they shall be deemed to have come into force on and with ef

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effect from the 29th September, 2017.
(iv) in rule 119, the words and figures “the period specified in rule 117 or such further period as extended by the Commissioner” shall be deemed to have been substituted on and with effect from the 29th September, 2017.
(v) in rule 120, the words and figures “the period specified in rule 117 or such further period as extended by the Commissioner” shall be deemed to have been substituted on and with effect from the 29th September, 2017.
(vi) in rule 120A, the marginal heading “Revision of declaration in FORM GST TRAN-1” shall be deemed to have been inserted on and with effect from the 29th September, 2017.
(vii) in FORM GST REG-29,-
(a) the heading “APPLICATION FOR CANCELATION OF REGISTRATION OF M

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Seeks to amend Notification No. S.O.87/PGSTR/2017/R.89/2017, dated 14th November, 2017
S.O. 114 /PGSTR/2017/R.89./2018 Dated:- 12-7-2018 Punjab SGST
GST – States
Punjab SGST
Punjab SGST
GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE AND TAXATION
(EXCISE AND TAXATION-II BRANCH)
NOTIFICATION
The 12th July, 2018
NO.S.O. 114 /PGSTR/2017/R.89./2018- In exercise of the powers conferred by clause (g) of sub-rule (2) of rule 89 of the Punjab Goods and Services Tax Rules, 2017 read with No

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Sanjay Kumar Bhuwalka and Neeraj Jain Versus Union of India
GST
2018 (7) TMI 1745 – CALCUTTA HIGH COURT – 2018 (16) G. S. T. L. 185 (Cal.)
CALCUTTA HIGH COURT – HC
Dated:- 12-7-2018
CRM 3327 of 2018 CRAN 1800 of 2018 With CRM 3328 of 2018 CRAN 1799 of 2018
GST
Shivakant Prasad, J.
Mr. Sekhar Basu, Mr. Milon Mukherjee, Mr. Rajdeep Majumdar. for the petitioner.
Mr. K. K. Maiti. for the Union of India.
This is an application for relaxation and/or modification and/or waiver of conditions of bail vide order dated 9th July, 2018 passed by this Court in CRR 3327 of 2018 thereby enlarging the petitioner on bail in connection with Case No.C-216 of 2018 arising out of DGCEI F. No.29/KZU/KOL/GR.D of 2018 dated 13th May, 2018 under Section 132(1)(a), (b) and (c) of the Central Goods and Services Tax Act, 2017 inter alia directing that the accused be released on bail on furnishing bond of the sum of Rs. 50 lakh and on condition to deposit Rs. 39 crore to the Government Exch

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higher and the maximum amount not being less than Rs. 30,000/- or 50% of the tax whichever is higher.
Mr. K. K. Maiti, learned counsel appearing on behalf of the Union of India invites my attention to the provision of Section 49 of the Act which deals with payment of tax, interest, penalty and other amounts. My attention is also adverted to the provision as enshrined in Section 74 of the Act which provides for determination of tax not paid or short paid or erroneously refunded or input tax credit rightly availed or utilized by reason of fraud or any wilful mis-statement or suppression of facts. My attention is also invited to the GST Law Manual relating to prosecution and compounding of the offences punishable under this Act relating to prosecution for certain criminal offences prescribed under Section 132 of CGST/SGST Act, 2017.
The provisions as shown to this to me are undoubtedly very very stringent nittigrity of laws of the provision in this Act. In rebuttal, Mr. Basu draws my at

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gh the competent authority is modified to the extent that Sanjay Kumar Bhuwalka the petitioner on condition shall deposit 50% of the evaded amount of Rs. 27 crore. Similarly, the petitioner Neeraj Jain would deposit Rs. 6 crore being the 50% of evaded amount of Rs. 12 crore as a condition to obtain bail.
It is also pointed out by Mr. Basu assisted by Mr. Milon Mukherjee, learned senior advocate for the petitioners that in West Bengal, there is no surety having the strength to extant for surety of the petitioner to furnish bond of a sum of Rs. 50 lakh each. I am of the considered view that this condition of furnishing bond be modified to the sum of Rs. 10 lakh each which can be furnished by way of personal bond to be executed by the petitioners. Therefore, the order dated 9th July, 2018 is modified.
However, the order dated 9th July, 2018 be modified to the extent that the petitioners be enlarged on bail by furnishing personal recognition bond of Rs. 10 lakh each and on further condit

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KOHINOOR FLOORS PVT. LTD. Versus STATE TAX OFFICER, ERNAKULAM AND STATE TAX OFFICER, ERNAKULAM
GST
2018 (7) TMI 1744 – KERALA HIGH COURT – 2018 (18) G. S. T. L. 815 (Ker.)
KERALA HIGH COURT – HC
Dated:- 12-7-2018
W. P. (C) No. 39178 of 2017
GST
MR DAMA SESHADRI NAIDU, J.
FOR THE PETITIONER : SRI.ANIL D. NAIR, SRI.R.SREEJITH, SRI.P.JINISH PAUL, KUM.MEKHALA M.BENNY, SRI. ASISH MOHAN AND SRI. G. KRISHNAKUMAR (MALLYA)
FOR THE RESPONDENT(S) : SRI. SHAMSUDHEEN V. K.
JUDGMENT
In the petitioner's premises, the Sales Tax Department conducted search and seizure, under Rule 137 of the Kerala Goods and Services Tax Rules, 2017 (the Rules). It seized many documents, besides a pen drive. The Department, it seems, copied on

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orders, payment vouchers, credit bills, and so on. All these transactions must have, in the first place, been reflected in the ledgers maintained by the petitioner. Unless the petitioner produces those ledgers, the Department cannot part with the seized documents.
5. To elaborate, the Department apprehends that once it hands over the copies of the seized documents, the petitioner will fabricate records as if they had existed from the beginning. So the Department refused to provide copies of the documents seized. About the pen drive, the Government Pleader contends that it only contains copies of the documents available in the petitioner's system.
6. Indeed, the Department's apprehension seems well placed. But the petitioner went

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Vijay Kuamr Nagpal Versus Union Of India
GST
2018 (7) TMI 1099 – MADHYA PRADESH, HIGH COURT – TMI
MADHYA PRADESH, HIGH COURT – HC
Dated:- 12-7-2018
W. P. No. 15420/2018(PIL)
GST
P.K. JAISWAL AND S.K. AWASTHI JJ.
Shri A.M. Mathur, learned Senor Counsel with Shri Vaibhav Asawa, learned counsel for the petitioner.
Shri Romesh Dave, learned Govt. Advocate for the respondent/State, on advance notice.
Heard on the question of admission as well as on the question of grant of interim relief.
Learned Senior Counsel for the petitioner has submitted that the GST regime has been introduced in the country on 1/07/2017 with the motive of creation of “One nation, One market, One tax”.
In pursuance to the aforesaid, in the year 2

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removed as GST regime has been introduced and, therefore, they cannot restrict or obstruct any of the vehicle from asking them to pay tax on the check posts except the GST.
Issue notice to the respondents No.3 and 5, on payment of PF within 3 working days, returnable within four weeks. In addition, Dasti notice, as per rules.
Shri Romesh Dave, learned Govt. Advocate accepts notice on behalf of the respondents No.1 and 2 and, therefore, no further notice is required and he prays for and is granted four weeks time to file reply. In the meanwhile, they shall take appropriate steps in pursuant to the notification issued on 24/06/2017 and 1/07/2017, by which all the check posts have been abolished, directing the officers for removal of the che

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M/s Glazetech Industries Pvt. Ltd. Versus CCE & CGST, Jaipur
Central Excise
2018 (7) TMI 996 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 12-7-2018
Excise Appeal Nos. 50893 – 50894 of 2018 – Final Order No. 52494 – 52495/2018
Central Excise
Hon'ble Sh. V. Padmanabhan, Member (Technical)
Shri Arun Goyal, Advocate for the appellant
Sh. P. Juneja, AR for the respondent
ORDER
Per : V. Padmanabhan
The present appeals are filed against the Order-in-Appeal Nos. 19-20 (AK)CE/ JPR/2017 dated 22.01.2018 passed by the Commissioner (Appeals), Central Excise & CGST, Jaipur.
2. Brief facts of the case are that the appellant is engaged in the manufacture of goods falling under Chapter 76 of the First Schedule to Central Excise Tariff Act, 1985. The appellant defaulted in payment of duty for the months of April and June, 2014. The default for April and June, 2014 was cleared on 10.07.2014 and 19.08.2014 respectively. The balance duty over and above what was paid

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cate for the appellant and Sh. P. Juneja, ld. AR for the Revenue.
4. The argument advanced on behalf of the appellant is summarised below:
(i) Ld. Advocate submitted that during the period of default, the appellant was entitled to make use of this cenvat credit for payment of duty. Such view has been taken by the Hon'ble Gujarat High Court in the case of Indsur Global Ltd. vs. Union of India -2014-TIOL-2115- HC-AHM-CX. Hon'ble Gujarat High Court held as ultra virus the provision of Rule 8(3A) of the Cenvat Credit Rules, 2002. Even though the Revenue has challenged the decision of the Gujarat High Court before the Apex Court, the Delhi High Court in the case of Principal Commissioner of C. Ex. Delhi-I vs. Space Telelink Ltd. – 2017 (355) ELT 189 (Del.) has held that the principle laid down in the Gujarat High Court decision will still be applicable. By following the above two decisions, the CESTAT Chandigarh Bench has decided the issue in identical circumstances, in favour of the ass

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Gujarat High Court in the case of Indsur Global Ltd. (supra) has held as ultra virus the provision of Rule 8(3A). Similar view has been expressed by the Delhi High Court in the case of Space Telelink Limited (supra). The Delhi High Court has further held that even though the Gujarat High Court decision is stayed by the Apex Court in the appeal filed by Revenue, this does not deface the underlying basis of the judgement itself. By following the above decision, the Tribunal in the case of Ess Ess Kay Engg. Co. Pvt. Ltd. (supra) has already taken the view that duty demands are not justified and also the penalties. The observations of the Tribunal is reproduced below:
“6. Considering the basis of show cause notice is that during the defaulted period, the appellant has paid duty by utilizing cenvat credit account. The provisions of Rule 8(3A) have been declared ultra vires by the Hon'ble Gujarat High Court in the case of Indsur Global Ltd. and the Hon'ble Delhi High Court in the case of S

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pellant has violated the provision of Rule 8(3A) which has been declared ultra vires, in that circumstances, the credit can be utilised but under the said provisions, the goods are to be cleared on consignment wise, therefore, the goods are liable for confiscation. As the goods are not available for confiscation and not cleared under any bond, therefore, redemption fine cannot be imposed on the appellant in the light of larger bench decision in the case of Shiv Kripa Ispat Pvt. Ltd. -2009 (235) ELT 623 (Tri. LB) = 2009-TIOL-388-CESTAT-MUM-LB. Therefore, redemption fine imposed on the appellant is set aside.
8. We find that the penalties have been imposed on the appellant under Rule 25 & 26 of the Central Excise Rules, 2002. As the penalty under these rules can be imposed subject to the condition of section 11AC of the Act but the ingredients of section 11AC are missing. Therefore, the penalties under Rule 25 and 26 are not imposable on the appellant. Therefore, the penalties imposed

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M/s. Sundram Fasteners Limited Versus Commissioner of GST & Central Excise
Central Excise
2018 (7) TMI 914 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 12-7-2018
E/40341, 40342, 40344, 40345, 40346/2018 – Final Order Nos. 41995-42000 / 2018
Central Excise
Hon'ble Ms. Sulekha Beevi C.S., Member (Judicial)
Shri M. Kannan, Advocate for the Appellant
Shri S.Govindarajan, AC (AR) for the Respondent
ORDER
The issue involved in all these appeals being the same, they were heard together and are disposed by this common order.
2. Brief facts are that the appellants were issued show cause notice proposing to disallow credit on various input services and for recovery of the same along with interest and for imposing penalties. After due process of law, the original authority disallowed credit on certain input services which was partly upheld by the Commissioner (Appeals). Aggrieved by the disallowance of credit on various input services, the appellant is now before t

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eriod involved in Appeal No.E/40341/018 and E/40346/2018 are both prior to 1.4.2011. In respect of group health insurance services, ld. counsel argued that in respect of demand in Appeal No.E/40341/2018, all the invoices except one is prior to 1.4.2011. That in any case, the said issue whether group health insurance service is eligible for credit has been held in favour of the appellant in their own case reported in 2016 (43) STR 454 (Tri. Chennai). The ld. counsel argued that the exclusion clause in definition of input service excludes insurance coverage given to employees during the journey availing leave travel allowance. The group health insurance in the present case was availed for covering the risk of employees and not for any leave travel allowance. That therefore the credit is eligible. It is also submitted that it is mandatory for the appellant to take insurance benefit for the employees as there are more than 600 employees under the assessee.
3.2 With regard to convention se

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appeals which are stated above, the said services were availed prior to 1.4.2011. With regard to other four appeals, the construction services were availed only for repair and maintenance, modernization and renovation of the premises. The authorities below have rejected stating that those have no nexus with the manufacturing activity and that they are not eligible for credit. He submitted that the appellants would be able to produce documents showing that construction services were availed by the appellant after 1.4.2011 for repair and modernization and therefore requested to remand this issue to the adjudicating authority.
3.4 With respect to rent-a-cab service, the ld. counsel was fair enough to submit that the services were not utilized for manufacture and therefore the appellant is not pressing with regard to the demand raised on this service.
3.5 Coating service (job work) was availed by the appellant for the purpose of processing of the intermediate products which were returned

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ligible for credit since they are not related to the manufacturing activity of the appellant. He relied upon the decision of the Tribunal in the case of Hindustan Petroleum Corporation Vs. Commissioner of Central Excise, Mumbai- 2018 (12) GSTL 305 (Tri. Mum.) and argued that in the said case, the medical insurance premium paid for employees of security agency (CISF) was disallowed by the Tribunal. He also relied upon the decision in the case of Maruti Suzuki India Ltd. Vs. Commissioner of Central Excise – 2017 (5) GSTL 18 (P&H) to argue that only  when the input services  have  nexus  with  the manufacturing activity, credit is eligible. The decision in the case of Commissioner of Central Excise Vs. Gujarat Heavy Chemicals Ltd. – 2011 922) STR 610 (Guj.) was relied by the ld. AR to argue that the credit in respect of security service provided in residential quarters was disallowed. He submitted that the authorities below have rightly disallowed the credit on va

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ices were availed for taking insurance coverage for the employees. Since the appellant has more than 600 employees, it is mandatory for them to take insurance coverage for their employees. The exclusion clause in the definition of input service excludes such kind of insurance which is taken for an employee during the leave travel allowance and it does not blanketly exclude all insurance service. Though the Tribunal in the case of Hindustan Petroleum Corporation (supra) has taken a view that medical insurance service is not eligible for credit, the said decision is not applicable to the facts of the present case for the reason that in the said case the insurance was taken for security agency i.e. CISF, who is not a direct employee of the assessee. In the appellant's own case, for the period after 1.4.2011, as reported in 2016 (43) STR 454, the Bench has allowed the credit. The relevant portion is reproduced as under:-
“4. So far as the Cenvat credit on insurance service is claimed, th

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el has submitted that commercial construction service were availed n Appeal Nos. E/40342/2018, E/40343/2018, E/40344/2018 and E/40345/2018 for the purposes of modernization and renovation of the factory and office premises. He submitted that the appellant would be able to furnish documents to establish the same. I therefore deem it fit to remand the matter on this issue to the adjudicating authority, which I hereby do.
6.4 With regard to commercial construction services which have been availed prior to 1.4.2011 as reflected in Appeal No.E/40341/2018 and E/40346/2014, I am of the view that the credit is eligible.
6.5 The authorities below have disallowed credit on coating service (job work). The appellant has submitted that the goods were sent for processing of the job work and during the disputed period, the job worker was not liable to pay service tax for the reason that the processing work did not amount to manufacture. Later Notification No.25/2012 dated 20.6.2012 came into force

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For these reasons, I hold that disallowance of credit on air-conditioner maintenance service is unjustified and requires to be set aside, which I hereby do.
7. From the above discussions, I hold that:-
(a) Group health insurance service, coating service (job work), commercial construction service prior to 1.4.2011 are eligible for credit.
(b) The issue with regard to commercial construction service after 1.4.2011 and convention service prior to 1.4.2011 are remanded to the adjudicating authority for reconsideration of the issue, who shall grant an opportunity of hearing.
(c) The air-conditioner maintenance service is allowed.
(d) Rent-a-cab service is disallowed and the demand along with interest and penalty in respect of the same are upheld.
8. The impugned orders are modified to the above extent.
The appeals are partly allowed and partly remanded in the above terms, with consequential relief, if any.
( Dictated and pronounced in open court )
Case laws, Decisions, Jud

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GST RATE AND SAC CODE FOR FOOD/MEAL SUPPLY
Query (Issue) Started By: – Bhavesh Sharma Dated:- 11-7-2018 Last Reply Date:- 14-7-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Hello Everyone,
I Want Clarification for following query:
PARTY A (BAKERS & CATERERS BUSINESS)
PARTY B (COMPANY)
Party A Only Supplies Meals (3 Times Lunch a day daily and it pays the bill in the end of month instead at same time) like food delivering done by hotels to Party B. So in this case what will be the GST Rate and SAC Code. and whether it will fall under contract or not.
I am taking in SAC 996333
Please clarify …
Reply By ANITA BHADRA:
The Reply:
GST Rate will be 18% .
Recently Gujrat AAR said – Food delivery outside hotel premises

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