Goods and Services Tax

2018 (5) TMI 1554 – KERALA HIGH COURT – TMI – Release of detained goods – Section 129 of the Central Goods and Services Tax Act – Held that: – this Court in the case of THE COMMERCIAL TAX OFFICER AND THE INTELLIGENCE INSPECTOR VERSUS MADHU. M.B. [2017 (9) TMI 1044 – KERALA HIGH COURT] directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017 – It is also directed that if the petitioner complies with Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017, the goods detained shall be released to him forthwith – petition allowed. – W.P.(C).No.16378 of 2018 Dated:- 23-5-2018 – MR. P. B. SUR

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2018 (5) TMI 1412 – CESTAT NEW DELHI – TMI – Clandestine removal – M.S. Ingots – whether the principal Commissioner in its impugned order in original dated 11.01.2018 is justified in confirming the demand of Central Excise duty of ₹ 2,56,803./- alongwith interest and penalty, in respect of clandestine removal of 80.695 the MT of M.S Ingots recovered from the appellant? – Held that: – In the impugned order nowhere it has been discussed as to how the demand of duty of ₹ 2,56,803/- is sustainable in the absence of any clinching evidence of clandestine manufacture and removal of the goods – There is absolute no evidence on record to show that the appellant-Ms. Ashok Ispat Udyog had cleared 80.695 MT of MS ingots and entire demand is purely based upon the statement of Sh. S.K. Pansari Prop. of M/s. Monu Steel.
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Only on the basis of statement of third person no demand could be made – penalty on Director also set aside.
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Appeal allowed – decided in favor of appellant.

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to the appellant proposing as under: i. Demand of Central Excise duty amounting to ₹ 3,29,78,297/-, quantified on the basis of excess electricity consumption, including the duty of ₹ 2,56,803/-, involved in 80.695 MT of M.S. Ingots, entries of which was found recorded in the diaries of Noticee No. 2, under Section 11 A of the Central Excise Act, 1944. ii Demand of interest under Section 11 AB of the Central Excise Act, 1944. iii impostion of penalties under the provisions of Section 11 AC of the Central Excise Act, 1944 and Rule 25 of Central Excise Rules, 2002. 5. The said Show Cause Notice is mainly based upon the entries made in the records of one M/s. Monu Steel (Prop. Sh. S.K. Pansari). The entire case of the revenue is based upon the records recovered from the said Sh. S. K. Pansari, Prop. of M/s. Monu Steel. At the time of adjudication before the Principal Commissioner M/s. Monu Steel (Sh. S.K. Pansari) did not appear for cross examination despite various opportuniti

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removal of the goods and in view of the fact that the said amount is also included in ₹ 3,29,78,297/- which has been dropped. There is absolute no evidence on record to show that the appellant-Ms. Ashok Ispat Udyog had cleared 80.695 MT of MS ingots and entire demand is purely based upon the statement of Sh. S.K. Pansari Prop. of M/s. Monu Steel. There is no evidence accept the said statement and private dairy of third party i.e. of Sh. S.K. Pansari which contains the name of the appellant. 6. Only on the basis of statement of third person no demand could be made and the same has been held by this Tribunal in a similar matter vide its order dated 04.04.2018 in Appeal No. E/50526-50527/2018 -SM titled as, Shree Consultants Pvt. Ltd Vs. C.C.E. & S.T. Raipur in which this Tribunal set aside the demand which was also made only on the basis of the entries made in the records of M/s. Monu Steel and held as under: xxx xxx xxx 4. I find that the entire case of the Revenue is based u

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case of Raipur Forging Pvt. Ltd. Vs. CCE, Raipur-I – 2016 (335) ELT 297 (Tri.-Del.), CCE & ST, Raipur Vs. P.D. Industries Pvt. Ltd. – 2016 (340) ELT 249 (Tri.-Del.) and CCE & ST, Ludhiana Vs. Anand Founders & Engineers – 2016 (331) ELT 340 (P&H). It stand held in all these judgements that the findings of clandestine removal cannot be upheld based upon the third party documents, unless there is clinching evidence of clandestine manufacture and removal of the goods. In the absence of any corroborative evidence and in view of the law declared in the above decisions, I find no justifiable reasons to uphold the impugned orders. Accordingly, the same are set aside and both the appeals are allowed with consequential relief to the appellants. 7. In view of the above facts of the case and in view of the settled legal position the instant appeal is allowed and the impugned order is set aside. As a result the penalty imposed on Appellant – Shri. Vijay Chand Bothra, Director is al

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Goods and Services Tax – Levy of GST – liquidated damages – to be classified within the Heading 9997 – Liable to be taxed @18%. – time of supply will be, when the same is determined / established as p

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Goods and Services Tax – Started By: – bk r – Dated:- 22-5-2018 Last Replied Date:- 23-5-2018 – The client is engaged in manufacturing of goods and clear the goods in domestic market and as well as export . the party get the advance authorisation licence and get the goods imported without BCD,SAD, CVD, Cess etc before the GST regime. The Export was made in the month of July 2017 under advance authorisation scheme . the party has also manufactured and cleared the goods in domestic market and als

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Goods and Services Tax – Started By: – m Bhagat – Dated:- 22-5-2018 Last Replied Date:- 24-5-2018 – R/SOne dealer taken Reg. on Composition from 18/08/2017 and he withdraw ,composition from 01.04.2018 onwords. can he get inputs held in stock before 01.04.2018. if yes than which return fillied either ITC1/2/3 and what is last date for it. – Reply By YAGAY and SUN – The Reply = Frequently Asked Questions on Composition Levy Q 6. A person availing composition scheme during a financial year crosses the turnover of ₹ 75 lakhs/50 lakhs during the course of the year i.e. say he crosses the turnover of ₹ 75 lakhs/50 lakhs in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st Ma

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 22-5-2018 – Chapter XVII of the Central Goods and Services Tax Act, 2017 ( Act for short) deals with the provisions relating to advance ruling. Section 96 of the Act prescribes the Authority for advance rulings. This section provides that subject to the provisions of the Chapter XVII, for the purposes of this Act, the Authority for advance ruling constituted under the provisions of a State Goods and Services Tax Act or Union Territory Goods and Services Tax Act shall be deemed to be the Authority for advance ruling in respect of that State or Union territory. Rule 103 of Central Goods and Services Tax Rules, 2017 provides that the Government shall appoint officers not below the rank of Joint Commissioner as member of the Authority for Advance Ruling. Section 96 of the State GST Acts provides for the constitution of Authority for Advance Ruling. For example section 96 of Tamil Nadu GST Act, 2017 provides that the Govern

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Government Office address of the Authority Telephone No./ email id of the office of the Authority Andhra Pradesh Sri J.V.M. Sarma, Joint Commissioner Sri Amnaresh Kumar, Joint Commissioner O/o the Chief Commissioner of State Tax, 5-59, R.K. Spring Valley Apartments, Block-B, Edupugallu (V), Kankipadu (M), Vijayawada, Krishna District, Andhra Pradesh- 521 144 0866-2821175, arcapgst2017@gmail.com Arunachal Pradesh Shri Airudh S. Singh,Commissioner Shri Suven Das Gupta, Joint Commissioner Office of the Commissioner, Kar Bhavan, Sector-C Itanagar, District Papum – Pare, Arunachal Pradesh 1. 0360-2211771, Fax no.2291993, 9712574717. tax-com-arn@nic.in; anirudhssingh@gmail.com 2. 0360-2350641; 9163083333 cgstitanagar@gmail.com, suvendasgupta@gmail.com Assam Shri Ramen Kumar Barman, Joint Commissioner Shri J.K. Simte, Additional Commissioner Office of the Commissioner of Taxes, Kar-Bhawan, G.S. Road, Dispur, Guwahati-781006, Assam 0361-2232513, cotassam@yahoo.com Bihar Shri Sanjay Kumar Mawa

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Commissioner Rajya Kar Bhavan, Ashram Road, Ahemdabad 380009 (Gujarat) 9825209689, rajanmankodi@ yahoo.co.in, 8424910678-kabra_rameshl@ yahoo.co.in Haryana Shri Vijay Kumar Singh, Addl. Excise & Taxation Mrs.Sangeeta Karmakar, Joint Commissioner, Excise & Taxation Commissioner, Haryana, Vanijiya Bhawan, Sector- 5, Panchkula 0172-2590931; 0172-2561335 vjsing2k@haryanatax.gov.in commr cexpchkl@nic.in Himachal Pradesh Shri D.T. Negi, Joint Excise & Taxation Shri Ravindra Kumar, Joint Commissioner 01772620426, 01722704039 jetc.tax@mailptax.gov.in; ravindra.kumar76@nic.in Jammu & Kashmir Mr. P. K. Bhat, (KAS), Additional Commissioner, Tax Planning , Shri Aman Garg, Joint Commissioner Jammu: Excise and Taxation Complex, Rail Head, Jammu. Kashmir: Excise and Taxation Complex, Ram Bagh, Srinagar 0191-2477303; aarjkgst@gmail.com 0194-2310875/ 2310135; aarjkgst@gmail.com Jharkhand Shri Ramchandra Prasad Barnwal, Joint Commissioner (Appeals) Shri Pradhuman Badariprasad Meena, Joi

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gst@mahavat.gov.in Mizoram Shri H.K. Lalhawngliana, Joint Commissioner Commissioner of State Tax, New Secretariat Complex, Aizal, Mizoram – 796001 0389-2336273 / 9436155443; mahawnga@gmail.com Odisha Shri Ananda Satapathy, Additional Commissioner Shri Nilanjan Pan, Joint Commissioner O/o the Chief Commissioner, GST & Central Excise, Central Revenue Building, GST Bhawan, Rajaswa Vishar, Near Vani Vihar, Bhubaneswar, Odisha -751007 943711721 ; 9830288794, asatpathy1960@gmail.com, & nilanjan_pan@yahoo.com Rajasthan Shri Sudhir Sharma, Joint Commissioner Shri Nitin Wapa, Joint Commissioner Shri Sudhir Sharma, Joint Commissioner, Room No.313, II Floor, Kar Bhawan, Ambedkar Ciorcle, Jaipur; Shri Nitin Wapa, Joint Commissioner, Room No.229, NCR Building, State Circle, C-Scheme- Jaipur. Shri Sudhir Sharma 09414718908; 0141-2388835; ac-jaipur-spl7@rajasthan-gov.in ; Shri Nitin Wapa 09805100023, nitin.wapa@gov.in; nitinwapa@gmail.com Sikkim Shri Manoj Rai, Joint Commissioner Shri Prakash

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2018 (7) TMI 767 – CESTAT MUMBAI – TMI – CENVAT Credit – input services – services provided by the over-seas commission agent including the services of sales promotion by the appellant – Held that:- From the agreement produced by the appellant which has been made between M/s. MAZER-the foreign commission agents and the appellant clearly placed the responsibility to undertake activities to promote the sale and other business objective of the company on the said commission agents – It is wide evident that the services provided by M/s MASER are inclusive of services of sales promotion.
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Since the activities undertaken by over-seas commission agents are inclusive of activities of sales promotion, admissibility of credit cannot be disputed – reliance placed in the case of Monarch Catalyst Pvt. Ltd. v. CCE [2016 (2) TMI 64 – CESTAT MUMBAI], where it was held that the appellant is entitled to avail cenvat credit in respect of commission paid to the commission agent based abroad.
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Ambika Overseas – 2012 (25) STR 3348 (P&H). (b) Commissioner of Central Excise & ST v. Plastiblends India Ltd. (Unit-I) – 2017 (52) STR 370 (T) (c) Stanley Seating v. CCE – 2017 (3) GSTL 137 (T) (d) Monarch Catalyst Pvt. Ltd. v. CCE – 2016 (41) STR 904 (Tri.-Mum) (e) Bhuruka Gases Ltd. v. CCE C & ST – 2015 (37) STR 818 (Tri. – Bang) 4.1 She also relied upon the Circular of CBEC No. 943/4/2011- CX dated 29.04.2011 wherein it has been clarified that CENVAT credit in respect of such services shall be admissible. She also submitted that in 2016 amendments were made in Rule 2(l) of Cenvat Credit Rules, 2004 by insertion of explanation to effect for the purpose of this clause, sales promotion includes services by way of sale of dutiable goods on commission basis. This explanation has been held by various benches of this Tribunal in retrospective in nature. (a) CCE & ST v. Dwarikesh Sugar Industries Ltd. – 2017 (50) STR 37 (Tri. – All). (b) Essar Steel India Ltd. v. CCE &

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tive of the company on the said commission agents. 5. Description of Processes (a) DURALINE will supply said products to MASER OR end customers in the TERRITORY on receiving specific orders subject to availability of stocks or under specifically agreed lead times for dispatches. (b) MASER shall be further entitled to sell the said products in the markets in the said TERRITORY and tenders in the said TERRITORY only. (c) It will be the responsibility of MASER to obtain license for the import of the goods in its country and to pay all the customs duties, import duties and other clearance charges for clearing the goods from the ship and carrying them to its factory or go-down unless agreed otherwise under different INCOTERMS (2000). (d) Similarly it will be the responsibility of DURALINE to take out an export license if required by the law of its country and to pay all charges for transport and shipment of the said goods unless otherwise agreed by both the parties. (e) MASER will be respon

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mpliance with all applicable laws and regulations and MASER shall not make any material omission or misrepresentation in the sale of said products . Under this Agreement Duraline is considered to be the owners of design/specifications of the said products and that it takes full responsibility for compliance of specifications thereof. (g) MASER undertakes to market the products supplied to it by DURALINE in the packages / containers in which they are received. MASER shall not alter the labels of the containers or packages in any way and shall not defact, remove, obliterate or in any manner modify or alter the trade marks, grade indications and other matters appearing thereon. (h) MASER shall promptly forward to DURALINE any complaints, letters, demands or other form of communication received from any consumers solicited by MASER. MASER shall also promptly forward to DURALINE any complaints, letters, demands or other form of communication received from any Governmental agency in regard t

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commission based on price realization. 8. Term Of Agreement: Subject to the provisions of Section 14 below, the term of this Agreement shall be continuous as from 1st April, 2012 onwards until 31st December, 2013 and renewable at mutual consent of DURALINE & MASER. 9. Relationship Of The Parties: MASER will act as an Distributor of DURALINE with a right to market & sell the said products imported by it, in the markets in the said TERRITORY only. None of the employees of MASER shall be considered employees of DURALINE. Maser shall not bind or make commitments for DURALINE in any manner whatsoever unless authorized to do so by DURALINE in writing. 10. Conflicting Activities: During the term of this Agreement, MASER will not directly or indirectly enter into any activity or business arrangement, which conflicts with its obligations towards DURALINE. MASER and/or any of its associates will not promote or sell any other similar product of any other company, which is directly competi

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by providing the other party with 60 days written notice of the termination date: I. If the other party becomes the subject of a voluntary or involuntary reorganization, or similar law, makes an agreement for the benefit of creditors, consents to the appointment of a receiver of its property, becomes insolvent or bankrupt, or any equivalent event occurs under the laws of the jurisdiction where it is incorporated or carries on its business; or II. Upon receiving notice that 50% or more of the stock or assets of the other party has been acquired by an unaffiliated third party; or III. If the other party has breached any material provision of this Agreement; provided that the non-breaching party has given the breaching party written notice of termination for breach and the breaching party has not cured the breach within thirty (30) days of receipt of notice; or b) DURALINE shall have the right to terminate this Agreement on sixty (60) days prior written notice to MASER. I. If either party

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2018 (7) TMI 602 – CESTAT CHENNAI – TMI – Trading activity – It is the case of the Revenue that during the course of audit of books of accounts of the appellants, the officers of the audit wherein noticed that in addition to its main activity of manufacture of dutiable goods, the appellant was also doing trading activity from its factory premises – Rule 3 (5) of CCR, 2004 – Held that:- The department has not disputed the fact that the appellant had removed the inputs as such to its sister concern by reversing the credit availed on such inputs as per Rule 3 (5) of CCR, 2004 – this itself is not sufficient to hold that it is a trading activity.
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The adjudicating authority shall examine the documents if any furnished by the appellant and pass order – appeal disposed off. – E/42586 – 42587/2017 – 41557-41558/2018 – Dated:- 22-5-2018 – P. DINESHA, Member (Judicial) Shri A. R. Sreenivasan, Manager, for the appellant Shri R. Subramaniyam, AC (AR) for the Respondent. ORDER The appellant

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g of goods (exempted services) which according to the department were consumed by the appellants to carry out their duty of manufacture of dutiable goods and also for trading activity which was exempted service. A SCN dated 16.03.2016 was therefore came to be issued on the ground that the appellant was not eligible to avail and utilize the credit in respect of that part of input services consumed for the exempted activity namely trading of goods. It was therefore proposed in the SCN as to why: i) The extended period should not be invoked under Rule 14 of CCR read with Section 11A (4) /11A(5) of CEA,1944 ii) An amount of ₹ 7,49,449/- being the amount equivalent to the specified percentage of the value of clearances of exempted goods during the period from 2011-12 to 2014-15 should not be demanded from them under Rule 14 of CCR read with Section 11A(4)/11A(5) of CEA. iii) the interest as applicable for the delayed payment of the amount mentioned in Sl.No. (ii) above should not be d

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fied. The adjudicating authority vide his order dated 26.12.2016 passed the OIO wherein he has proceeded to demand duty along with appropriate interest and penalty as proposed in the SCN. On appeal, the Ld. Commissioner (Appeals) has dismissed the appeal by upholding the order of the adjudicating authority. Seriously aggrieved by the same, the appellant is now before this forum. 3. Heard both the parties and perused the records. 4.1 On behalf of the appellant, Shri A.R. Sreenivasan, Manager appeared and seriously contended that the lower authorities had clearly mis-understood the facts vis-a-vis the requirements of law. It is no doubt true that the appellant did some trading activity but the same was to an extent of a mere 1%, that too which is supplied to its job workers for processing the products. During the course of hearing, he also relied on the orders of this Court in the case of Sister concern of the appellant, in the case of Lakshmi Ring Travellers (Cbe) Ltd. in Final Order No

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. UP Telelinks – 2015 (329) ELT 888 (Tri.-Delhi) and CCE, Ghaziabad Vs. Mahaveer Cylinders Ltd. – 2016 (341) ELT 361 (Tri.-All.). 5. Per contra, the Ld. AR, Shri R. Subramaniyam, AC, vehemently contended that the appellant was carrying on trading activity and he also has relied on the findings of the lower authorities in his support. 6. Heard both the parties and perused the facts on record. 7. I find that the department has not disputed the fact that the appellant had removed the inputs as such to its sister concern by reversing the credit availed on such inputs as per Rule 3 (5) of CCR, 2004. And this by itself, as held by this Court in the case supra is not sufficient to hold that it is a trading activity. This is also supported by the orders of Tribunal in Lakshmi Ring Travellers (Cbe) Ltd., UP Telelinks and Mahaveer Cylinders Ltd. (supra), relied on by the representative of the appellant. 8. I am therefore of the view that in the light of above observations and judicial pronouncem

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2018 (7) TMI 227 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (14) G. S. T. L. 429 (A. A. R. – GST), [2019] 61 G S.T.R. 189 (AAR) – Levy of GST – Tripartite agreement – taxability of services – scope of 'supply' – Alternate accommodation to be paid to the tenant of the old building by the developer/owner – compensation for alternate accommodation / damages for delayed handover of possession of the new premises.
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Is GST applicable on the compensation for alternate accommodation to be paid to me (the tenant of the old building) by the developer/owner? – Held that:- For vacating the said premises, the applicant has received/is to receive compensation from the developer – the act of vacating premises for facilitating the developer implies that the applicant has agreed to do an act and such act, of vacating the premises, by the applicant, squarely falls under clause 5(e) of the Schedule II mentioned above and therefore the amounts received by the applicant for having agreed to

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s tolerating the construction cum redevelopment work till possession of new redeveloped premises as per agreement and further for tolerating an act i.e the act of not having completed the redevelopment work within 36 months. In view thereof, the same would definitely be a 'supply' under the GST Act and therefore, there arises an occasion to levy lax under the GST Act on the impugned transactions – Answered in the affirmative.
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Ruling:- GST is applicable on the compensation for alternate accommodation received by them.
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GST is applicable on the compensation for alternate accommodation/ damages for delayed handover of possession of the new premises received by them. – GST-ARA- 29/2017-18/B- 37 Dated:- 22-5-2018 – B.V. Borhade Joint Commissioner of State Tax and Pankaj Kumar Joint Commissioner of Central Tax PROCEEDINGS (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed u

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forth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act". 02. FACTS AND CONTENTION – AS PER THE APPLICANT The submission (Brief facts of the case), as reproduced verbatim, could be seen thus- "M/s Future Communications Limited are the owners of a plot of land bearing C.T.S. No. 837 (S.No. 5, H. No. 1, 2, 3, 5, 7, 8. 9 of Village Mohili) admeasuring 4898.61 sq.mtrs. and C.T.S. No. 837 (S.NO. 5. H. No. 6 of Village Mohili) admeasuring 497.89 sq.mtrs. and the commercial building thereon. I, Zaver Bhanushali, am a tenant of the second floor of commercial building mentioned above. The total Area of the said tenanted premises is 2600 sq. ft. carpet area with terrace. M/s Future Communications Limited (the owner), have entered into an agreement with M/s Spenta Residency Private Limited, the Developers, to develop a new building in place of the old building and thereby the

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i.e. 3 years in total). The Developers Owner Are Liable to pay an amount of ₹ 5,00.000 – per month as compensation for alternate accommodation damages for delayed handover of possession. The Income Tax Department does not recognise the above transaction as a rental transaction as per the definition of Rent under The Income Tax Act, 1961 and considers the same as a compensation. It has been clearly established in Income Tax Appellate Tribunal. Mumbai In the case of M/s Sohana Dwellers Private Limited v .s Income Tax Officer 8(3)(1) (ITA No. 5963/Mum 2013) for A.Y. 2010-11. The same is also not liable to TDS u/s 1941 of the Income Tax Act. " On the basis of the above, the questions as reproduced above have been raised. 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- "As per the brief facts given by the applicant, M/s Future Communications Ltd. owned a commercial building at C.T.S. No. 837 wherein Shri Zaver Bhanush

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ax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person. (2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council. (3) The Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such reci

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or paying the tax in relation to the supply of such services: " The Scope of supply has been specified under Section 7 of the Central Goods and Service Tax Act 2017. Section 7 (1)(d) of the Centred Goods and Services Tax Act, 2017 reads as under: "Section 7. (1) For the purposes of this Act, the expression "supply " includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business: (b) import of services for a consideration whether or not in the course or furtherance of business: (c) the activities specified in Schedule I. made or agreed to be made without a consideration. and (d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II. Under Schedule-ll at sr. No. 5(e) it has been specified as under : "agreeing to the obligation to refrain from an

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dation is in furtherance of business and therefore it is taxable. In the instant case, it is also seen that the applicant viz. Shri Zaver Bhanushali is receiver of construction services from Spenta Residency Private Ltd (Developer) Other than the compensation/consideration, the applicant will also get free flat/constructed premises from the developer i.e. M/s Spenta Residency Private Ltd. M/s Spenta Residency Private Ltd would be liable to pay tax on the construction services for permanent alternate accommodation, shop admeasuring 4200 sq. ft. provided to the applicant and the GST paid by the applicant on compensation would be available as input tax credit to the developer. In view of the above this office is of the view that the applicant should take GST registration for compensation received and pay appropriate GST on the same, in respect of consideration received for alternate accommodation. " 04. HEARING The case was taken up for preliminary hearing on dt.27.03.2018 with respe

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tered office at 141, Santosh Towers. 3rd Cross Lane. Lokhandwala Complex. Andheri (West), Mumbai – 400053 hereinafter referred to as the 'OWNERS' (which expression shall unless repugnant to the context or meaning thereof mean and include its successors and assigns) of the PARTIES OF THE FIRST PART, represented by its Director, Mrs. Satish (nee Sattee) Shourie residing at 131/141, Santosh Towers, 3rd Cross Lane, Lokhandwala Complex. Andheri (West), Mumbai – 400053 AND SPENTA RESIDENCY PRIVATE LIMITED (PAN AAMPS22I0H),a company registered under the Companies Act, 1956 and having it's registered office at Rajabahadur Mansion. 1st floor, 20, Ambalal Doshi Marg, Fort, Mumbai – 400023 hereinafter referred to as the 'DEVELOPERS' (which expression shall unless repugnant to the context or meaning thereof mean and include it's successors and assigns) of the Second Part represented by its Directors (1) SHRI FARSHID ASPAN COOPER (PAN : ADVPC59 76F) of Mumbai. Indian Inhabit

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E THIRD PART. WHEREAS: (b) The Owners have purchased the said property from Aditya Textile Industries Private Limited under (i) Deed of Conveyance dated 16/4/2007… (c) By an Agreement for Joint Development dated 15th February, 2010 registered with …..made between the Owners (therein referred to as the Owners) of the One Part and the Developers (therein referred to as the Developers) of the Second Part, the Owners have granted to the Developers the development rights in respect of the said Property for the consideration and upon the terms and conditions therein mentioned. (e) The existing building standing on the plot of land bearing C. T.S. No.837 out of the said Property was constructed somewhere in the year 1970 and the same is consisting of ground and two upper floors having commercial premises. The Tenants are in use, occupation and possession of office premises admeasuring 2600 sq.ft, carpet area on the Second Floor with the terrace premises of the said Budding for use of wate

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are of expenses for getting the said Building repaired heavily. (i) For development of the said Property in pursuance of the said Agreement for Joint Development dated 15th February, 2010, it is necessary to execute the Agreement for alternate Accommodation with the Tenants in respect of the new premises to be provided to the Tenants in the new building and for obtaining from the Tenant the possession of the said Old Premises in their occupation and to obtain nay other facility from the Tenants for development of the said Property. (l) ……Finally the Owners and the Developers have agreed to provide to the Tenants the shops admeasuring 4200 sq. ft. carpet area in the new building free of cost on ownership basis as permanent alternate accommodation upon the terms and conditions agreed by and between the parties hereto which are now recorded in writing by executing this Agreement. NOW THIS AGREEMENT WITNESSETH AND IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS UNDER – 2. T

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200 sq. ft. carpet area (consisting of 2600 sq.ft, area presently occupied by the Tenants and 650 sq.ft, area being additional 25% of 2600 sq.ft, and 950 sq. ft. additional area in lieu of the new premises being 9 feels 6 inches instead off / 4 feel height) by having three partition walls, free of cost on ownership basis on the ground floor of the New Building to be named as …………… to be constructed by the Developers on the portion of the said Property and delineated on the draft typical floor plan annexed hereto and marked as Annexure : B' and thereon shown surrounded by red colour boundary line (hereinafter referred to as 'said New Premises '). 8. The Owners hereby confirm that the Tenants have paid to the Owners the rent, taxes and other outgoings in respect of the said Old Premises upto date and now no further amount is due and payable by the Tenants to the Owners in respect of the said Old Premises for the period upto the date of this Agreement. The Tenant sha

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basis to any person or party of their choice as the Tenants may deem fit and proper; (iii) The Tenants shall be entitled to use the said New Premises or any part thereof for carrying on nay business therein partnership or on any other basis with any person or party as the Tenants may deem fit and proper; (iv) The Tenants shall be entitled to deal with the said New Premises as the Tenants may deem fit and proper. 17. It is agreed between the parties hereto that during the period of construction of the new building the Tenants shall make their own arrangement for temporary alternate accommodation and the Owners/the Developers shall pay to the Tenants the rent/compensation for the temporary alternate accommodation to be arranged by the Tenants at the rate of ₹ 2,05, 000/-(Rupees Two Lacs Five Thousand only) per month for the period of first 24 months. It is agreed and confirmed that on the execution of this Agreement within 15 days from the date hereof. The Tenant shall hand over q

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control the Developers will be entitled to a grace period of 6 months and additional grace period of further 6 months i.e. in all 12 months subject however to the Owners and/or the Developers paying to the Tenants the rent/compensation for the temporary alternate accommodation at the rate of ₹ 2,25, 000/- per month for the period from 25th month to 30th month and at the rate of ₹ 2,47,000/- per month for the period from 31stmonth onwards, In the event the Developers are unable to handover the possession of the said New Premises within 24 months then in that event at the end of the period of 24 months the Owners/the Developers shall give the post dated cheques to the Tenants towards the rent for the period front 25th month to 36th month at the rate provided hereinabove. 20. Subsequent to what is mentioned in Clause 19 above, the Owners and/or the Developers hereby confirm that in the event the Owners and/or the Developers are unable to handover the possession of the said Ne

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5,00,000/- (Rupees Twenty Five Lacs only) as compensation/corpus fund to enable the Tenants to pay the taxes and outgoings of the said New Premises at a higher rate as compared to the said Old Premises at the time of entering into this Agreement. 24. The Owners and the Developers hereby specifically confirm that till the time the Tenant is given the new premises, the Tenancy rights of the Tenant shall be subsisting subject to the Tenant paying the monthly rent to the Owners/Developers. " It can be seen that the transaction is about the receipt by the applicant, of certain sums towards – a. Compensation for alternate accommodation for the period of first 24 months. b. Compensation for alternate accommodation for the further period from 25th month to 36th month and damages for delayed handover of possession after the period of 36 months. Section 9 of the GST Act says that there shall be levied a tax on supplies of goods or services or both. So we need to understand as to whether the

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uthority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods. " SCHEDULE I [See section 7] ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERA TION 1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets. 2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business: Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an em

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y, easement, licence to occupy land is a supply of services; (b) any lease or letting out of the building including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services. 3. Treatment or process Any treatment or process which is applied to another person's goods is a supply of services. 4. Transfer of business assets (a) where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person; (b) where, by or under the direction of a person carrying on a business, goods held or used for the purposes of the business are put to any private use or are used, or made available to any person for use, for any purpose other than a purpose of the business, whether or not for a consideration, the usage or m

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clause- (1) the expression "competent authority" means the Government or any authority authorised to issue completion certificate under any taw for the time being in force and in case of non-requirement of such certificate from such authority, from any of the following, namely: (i) an architect registered with the Council of Architecture constituted under the Architects Act. 1972: or (ii) a chartered engineer registered with the Institution of Engineers (India): or (iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority: (2) the expression "construction" includes additions, alterations, replacements or remodelling of any existing civil structure: (c) temporary transfer or permitting the use or enjoyment of any intellectual property right: (d) development, design, programming, customisation, adaptation, upgradation, enhancement, implementation of information technology software: (e) agreeing to the o

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1) of Section 7 – 'Supply' as per clause (a) is for supply of goods or services or both. It is for a consideration AND has to be in the course or furtherance of business. 'Supply' as per clause (b) is for import of services. It is for a consideration AND may or may not be in the course or furtherance of business. 'Supply' as per clause (c) are the activities specified in Schedule I appended to the GST Act. It is not for a consideration. And though it has not been specifically mentioned in the clause, if we look at Schedule I, as reproduced above, the 'supply' herein would be in the course or furtherance of business. 'Supply' as per clause (d) is the enumeration or categorization as given in Schedule II appended to the GST Act as to which activities should be treated as supply of 'goods' and which activities to be treated as supply of 'services'. The clause does not define 'supply' but classifies the supply into either &#39

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vacate the premises to facilitate the redevelopment of the building, by the developer. In the process the applicant has agreed to do an act (vacating the premises) to facilitate the supply of service by the developer to the owner, as per conditions reiterated below 1. The Tenant shall continue to pay to the Owners the rent In respect of the said Old Premises at the rate of ₹ 5000/- per month till the date on which the Owners and the Developers handover to the Tenants the possession of the said New Premises as provided in this Agreement. 2. However for vacating the said premises, During the period of construction of the new building the Tenants shall make their own arrangement for temporary alternate accommodation and the Owners/the Developers shall pay to the Tenants the rent/compensation for the temporary alternate accommodation to be arranged by the Tenants at the rate of ₹ 2,05, 000/- (Rupees Two Lacs Five Thousand only) per month for the period of first 24 months and a

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New Premises within 24 months then in that event at the end of the period of 24 months the Owners/the Developers shall give the post dated cheques to the Tenants towards the rent for the period from 25th month to 36th month at the rate provided hereinabove. 4. In continuation, we further find the condition that subsequent to what is mentioned in Clause 3 above, the Owners and/or the Developers hereby confirm that in the event the Owners and/or the Developers are unable to handover the possession of the said New Premises to the Tenants within 36 months the Owners and the Developers shall he liable to pay to the Tenants ₹ 5,00,000/- (Rupees Five Lakhs only) per month as damages without prejudice to the Tenants' other rights under the law and under this Agreement. 5. Thus we find that for vacating the said premises, the applicant has received/is to receive compensation from the developer as per details mentioned above. 6. It is also to be noted that for their premises in the ol

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nstead off 14 feet height) by having three partition walls, free of cost on ownership basis on the ground floor of the New Building to be named as to be constructed by the Developers on the portion of the said Property and delineated on the draft typical floor plan annexed hereto and marked as Annexure : 'B' and thereon shown surrounded by red colour boundary line (hereinafter referred to as 'said New Premises ') ". Thus, the act of vacating premises for facilitating the developer implies that the applicant has agreed to do an act and such act, of vacating the premises, by the applicant, squarely falls under clause 5(e) of the Schedule II mentioned above and therefore the amounts received by the applicant for having agreed to do such an act, would attract tax liability. Thus from the above referred terms of the agreement for redevelopment of the premises referred above we find that even during the period of redevelopment, the applicant remains a tenant of the owner

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levy lax under the GST Act on the impugned transactions. The applicant has also cited the decision of the Income Tax Appellate Tribunal, Mumbai, in the case of M/s Sahana Dwellers Private Limited v/s Income Tax Officer, in support of their contention that the transactions in question are not recognized as a rental transaction by the said Tribunal. Citing the said decision, the applicant has submitted that the said amounts received by them is a compensation and not rental income. They are right to an extent that, the said amounts are in the form of compensation paid to them, to do an act i.e. vacating the premises redevelopment as well as tolerating construction cum redevelopment work during the specified period of redevelopment as per their agreement referred above and also to tolerate an act i.e. the act of not having received the New Premises within 36 months from the developer. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows : ORDER (under

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GST – States – CT/LEG/GST-AA/7/18/519 – Dated:- 22-5-2018 – GOVERNMENT OF NAGALAND OFFICE OF THE COMMISSIONER OF STATE TAXES NAGALAND: DIMAPUR Dated Dimapur, the 22th May,2018 ORDER NO. CT/LEG/GST-AA/7/18 : In exercise of the powers conferred by sub-section (2) of Section 4 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the Commissioner of State Taxes, Nagaland hereby appoints Shri. Y. Mhathung Murry, Additional Commissioner of State Taxes, Nagaland; Dimapur as the Appellate Auth

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Goods and Services Tax – Started By: – kalathur narasimhan – Dated:- 21-5-2018 Last Replied Date:- 22-5-2018 – When I ship commercial goods form USA to Indian Firm do I need to register for GST – Reply By Alkesh Jani – The Reply = Sir, In terms of Section 7(2) of IGST Act, 2017, which reads as follows:- (2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce

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Goods and Services Tax – Started By: – Abhay Inamdar – Dated:- 21-5-2018 Last Replied Date:- 22-5-2018 – Pls guide whether a manufacturing exporter can do MERCHANT EXPORT with same GSTIN. – Reply By Alkesh Jani – The Reply = Sir, The GST regime is supply based, export is considered as zero-rated supply. As a manufacturing exporter, a person receives input(s) in order to make finished goods. For example, ingredients a, b and c are received and final product X is made out of it and same is exported. On other than a person receives product X and exports it. Every person can export the goods and/or services. In GST even unregistered person can export goods and/or services. In my point of view, Yes you can export the goods with same GSTIN, as t

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Goods and Services Tax – Started By: – SARAVANAN RENGACHARY – Dated:- 21-5-2018 Last Replied Date:- 22-5-2018 – Dear Experts,Two companies are related. i.e. ABC Private Limited and XYZ Private Limited.An employee of the company (ABC) is permanently transferred to another company (XYZ). Subsequently, accrued Gratuity liability of the employee is also transferred from ABC to XYZ. Money is transferred.Is GST applicable for this transaction? Please provide your views.Saravanan. – Reply By DR.MARIAP

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Goods and Services Tax – GST – Dated:- 21-5-2018 – New Delhi, May 20 (PTI) The GST Council has asked the Centre and states to expedite setting up of appellate authorities for aggrieved entities to appeal against orders of the Authority for Advance Rulings (AAR). With AARs in different states started giving rulings since March, it has become imperative for the Centre as well as states to set up the Appellate Authority for Advance Ruling (AAAR), an official said. The Secretariat of the GST Council has shot off letters to the states as well as the Central Board of Indirect Taxes and Customs (CBIC) to nominate members to the AAAR on an urgent basis so that they can start functioning, the official told PTI. So far only 12 states, including West

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ver GST levy and one appellate authority to hear appeals against the AAR order. According to experts, the business entities, which are aggrieved by the decision of AAR, currently do not have any remedy in the absence of an appellate authority. Deloitte Haskins & Sells LLP Partner (Indirect Tax) M S Mani said businesses will not be able to file appeals against advance rulings unless the appellate authority is set up in every state. The recent increase in AAR decisions needs to be matched by a quick constitution of the appellate authority in all states. The constitution of the AAAR should also be on the lines of the CESTAT (Customs, Excise and Service Tax Appellate Tribunal) and other appellate bodies and should not comprise only of tax o

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 21-5-2018 – Goods and Services Tax (GST), introduced from July 1, 2017 is more than ten months old now but has resulted in operational and implementation disruptions affecting all stakeholders. GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council his however, making regular changes to fix the anomalies and hardships faced by taxpayers. Taxpayers have already started challenging various provisions of GST laws and rules framed thereunder with more than 180 writs being filed in different courts. High courts and Supreme court have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBIC may move to Supreme court where the verdict is against the Government. This has also been indicated in Circular No. 39 dated 03.04.2018 wherein it is has been hinted in relation to resolution of struck TRAN-1 and filing of GSTR-3B that Government has not acc

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s an important raw material for chemical industries and industrial alcohol. Administrative charges were claimed to be in the nature of tax. Since both charges / tax shall tantamount to double taxation, petitioners filed this writ who were willing to pay GST. Further, in view of fact that a similar matter is pending before Apex Court in relation to trade tax vis-à-vis administrative charges, court granted interim stay from collection of administrative charges till final decision in the matter subject to the petitioners paying GST. It was also directed that separate accounts be maintained for sale / supply / purchase of molasses till final disposal. In Tara Chand Saluja v. Union of India 2018 (5) TMI 275 – DELHI HIGH COURT ; where the assessee could not file TRAN-1 / TRAN-2 forms in due time due to technical errors in the GSTN system. On a question for claiming input tax credit when it could not be availed due to technical obstacles, it was pointed out by respondent that GST Counc

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e of UP 2018 (3) TMI 1318 – ALLAHABAD HIGH COURT , where the competent authority had caused inspection of goods in movement and seized goods alongwith the vehicle for want of e-way bill. The court directed that the seized goods of the assessee as well as vehicle be released by the authorities forthwith on the assessee s furnishing security other than cash and bank guarantee of the proposed tax and penalty and indemnity bond of the value of the seized goods. The revenue was allowed to file counter affidavit within a month after which petitioner could file the rejoinder. In Level 10 Retail Venture v. State Tax Officer 2018 (4) TMI 346 (Kerala); where the state tax officer had detained the textile goods under transport as well as the vehicle on the plea that the goods were not accompanied by the valid documents as contemplated under the CGST Act and SGST Act and Rules. He also insisted the assessee to pay the amount demanded in the detention notice as a condition for release of the goods

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te the transaction would be covered by the Integrated Goods and Services Tax Act, 2017 (IGST) read with Central GST and that the provisions of the UPGST or its Rulesor the notifications issued therein would not apply. Rule 138 of the Rules framed under the Central GST provides that till such time e-way bill system is developed and approved by the Council, the Government by notification may specify the documents which are to be carried with the consignment of goods. In exercise of the said power a notification has been issued which provides for the carrying of e-way bill with the goods in transit but the same is applicable has been enforced w.e.f. 01.02.2018. Court observed that the soled ground of seizure of goods is non-production of e-way bill whereas there is no dispute with regard to issuance of invoice and charge of tax by the petitioner. It was held that there was no error on the part of petitioner and therefore, order of seizure passed under section 129(1) of the CGST Act, 2017

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2018 (12) TMI 847 – CESTAT KOLKATA – TMI – CENVAT Credit – input services – services received by them from the various transporters towards outward transportation of excisable goods from the appellant’s factory to the buyer’s premises (carriage outwards) – period 2006-2007 and 2007-2008 – Held that:- The present issue is no more res-integra and is decided in favour of the appellant in view of the decision of the Hon’ble Supreme Court in the case of Commr. of Customs, Central Excise & S.Tax, Guntur Vs. Andhra Sugars Ltd. [2018 (2) TMI 285 – SUPREME COURT OF INDIA], where it was held that Once it is accepted that place of removal is the factory premises of the assessee, outward transportation ‘from the said place’ would clearly amount to input service.
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Credit allowed – appeal allowed – decided in favor of appellant.
– Ex. Appeal No.76045/18 – FO/76576/2018 – Dated:- 21-5-2018 – SHRI P. K. CHOUDHARY, JUDICIAL MEMBER Shri S.P. Siddhanta, Consultant for the Appellant (s) Shri S. S

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the relevant Paragraphs are reproduced below: 6. As mentioned above, in these cases, the assessees are claiming Cenvat credit in respect of service tax paid on outward transportation from their factory to the premises of customers. As per the Department, outward transportation engaged for removal of goods from factory to customer premises cannot be considered as an input service since premises of customer is not recognized as a place of removal under the Central Excise Act. To put it differently, the Department contends that the outward transportation provided beyond the place of removal is not eligible for input service for availing Cenvat credit. 7. Having regard to the definition of input service that was prevailing at the relevant time i.e. prior to April 1, 2008, the aforesaid contention of the Department cannot be accepted. As per the said definition, service used by the manufacturer of clearance of final products from the place of removal to the warehouse or customer s place etc

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val are to be treated as input service. The first clause does not mention transport service in particular. The second clause restricts transport service credit upto the place of removal. When these two clauses are read together, it becomes clear that transport service credit cannot go beyond transport upto the place of removal. The two clauses, the one dealing with general provision and other dealing with a specific item, are not to be read disjunctively so as to bring about conflict to defeat the laws scheme. The purpose of interpretation is to find harmony and reconciliation among the various provisions . Similarly, in the case of M/s. Ultratech Cements Ltd. v. CCE, Bhavnagar – 2007-TIOL-429-CESTAT-AHM, it was held that after the final products are cleared from the place of removal, there will be no scope of subsequent use of service to be treated as input. The above observations and views explain the scope of the relevant provisions clearly, correctly and in accordance with the lega

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herein the excisable goods have been permitted to be stored without payment of duty; (iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearance from the factory; from where such goods are removed. It is, therefore, clear that for a manufacturer/consignor, the eligibility to avail credit of the service tax paid on the transportation during removal of excisable goods would depend upon the place of removal as per the definition. In case of a factory gate sale, sale from a non-duty paid warehouse, or from a duty paid depot (from where the excisable goods are sold, after their clearance from the factory), the determination of the place of removal does not pose much problem. However, there may be situations where the manufacturer/consignor may claim that the sale has taken place at the destination point because in terms of the sale contract/agreement (i) the ownership of goods and the property in the goods

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, dealt with unamended Rule 2(l) of Rules, 2004. The three conditions which were mentioned explaining the place of removal are defined in Section 4 of the Act. It is not the case of the Department that the three conditions laid down in the said Circular are not satisfied. If we accept the contention of the Department, it would nullify the effect of the word from the place of removal appearing in the aforesaid definition. Once it is accepted that place of removal is the factory premises of the assessee, outward transportation from the said place would clearly amount to input service. That place can be warehouse of the manufacturer or it can be customer s place if from the place of removal the goods are directly dispatched to the place of the customer. One such outbound transportation from the place of removal gets covered by the definition of input service. 5. Respectfully following the ratio of the above judgement of the Hon ble Supreme Court in the case of Andhra Sugars Ltd. (supra),

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2018 (10) TMI 305 – AUTHORITY FOR ADVANCE RULING – UTTAR PRADESH – 2018 (17) G. S. T. L. 55 (A. A. R. – GST) – Classification of an item – Peeled Sliced Pineapple, put up in airtight unit container in sugar syrup.
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Held that:- Canned Pineapple Slices, dipped in Sugar Syrup comes within Tariff item no. 2008 and N/N. 01/2017-C.T. (Rate) dated 28-06-2017 issued by Central Government and Notification KANI-2-836/XI-9(47)/17-U.P. Act-1-2017-Order-(06)-2017 dated 30-06-2017, schedule-II and taxab

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GST – States – S.O.73/P.A.5/2017/S.164/2018 – Dated:- 21-5-2018 – GOVERNMENT OF PUNJAB DEPARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION-II BRANCH) NOTIFICATION The 21st May, 2018 No. S.O.73/P.A.5/2017/S.164/2018.- 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 appoint the 1st day of Apri

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GST – States – G.S.R.29/P.A.5/2017/S.164/Amd.(12)/2018 – Dated:- 21-5-2018 – GOVERNMENT OF PUNJAB DEPARTMENT OF EXCISE AND TAXATION (EXCISE AND TAXATION-II BRANCH) NOTIFICATION The 21st May, 2018 No. G.S.R.29/P.A.5/2017/S.164/Amd.(12)/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 Services Tax Rules, 2017, namely:- RULES 1. (1) These rules may be called the Punjab Goods and Services Tax (Fourth Amendment) Rules, 2018. (2) Save as otherwise provided in these rules, they

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Provided further that the challan endorsed by the job worker may be further endorsed by another job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal. . 3. In the said rules, in rule 127, in clause (iv), after the words to furnish a performance report to the Council by the tenth , the word day shall be inserted. 4. In the said rules, in rule 129, in sub-rule (6), for the words as allowed by the Standing Committee , the words as may be allowed by the Authority shall be substituted. 5. In the said rules, in rule 133, after sub-rule (3), the following sub-rule may be added, namely:- (4) If the report of the Director General of Safeguards refer

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the point shall be decided according to the opinion of the majority of the members present and voting, and in the event of equality of votes, the Chairman shall have the second or casting vote. 7. In the said rules, after rule 137, in the Explanation, in clause (c), after sub-clause (b), the following sub-clause shall be inserted, namely: – c. any other person alleging, under sub-rule (1) of rule 128, that a registered person has not passed on the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices. ; 8. In the said rules after rule 138D, the following Explanation shall be inserted, with effect from the 1st of April, 2018,

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2018 (7) TMI 53 – AUTHORITY FOR ADVANCE RULING – MAHARASHTRA – 2018 (14) G. S. T. L. 396 (A. A. R. – GST) – Levy of IGST – High Seas Sale – Goods purchased from overseas related party situated abroad based on purchase order received from its customers and sold when in transit to its customers before the goods are entered for customs clearance in India – reversal of Input Tax Credit (ITC).
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Whether IGST will be leviable on such sale effected by the Applicant to customers who are known to them at the time of placing order on the overseas party? – Held that:- The applicant would be importing the goods and would be selling the goods on high seas sale basis to another buyer – It is very clear that supply of goods imported into the territory of India till they cross the customs frontier shall be treated as supply of goods in the course of inter-state trade or commerce – From the proposed transactions placed by the applicant before us there is not an iota of doubt that the goods of the

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f act, 1975.
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Whether input tax credit will have to be reversed, to the extent of inputs, input services and common input services used by the Applicant, in case the above transaction is not subjected to the levy of IGST by treating the same as an exempt supply for the purpose of Section 17 of the CGST Act? – Held that:- The goods sold on High Seas sale basis being non-taxable supply as per Section 2(78) of the CGST Act and being exempt supply as per Section 2(47) of the CGST Act, the input tax credit to the extent of inputs, input services and common input services would be required to be reversed by the applicant as per Section 17 of the CGST Act.
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Ruling:- No IGST will be leviable on such sale effected by the Applicant to customers who are known to them at the time of placing order on the overseas party
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The input tax credit to the extent of inputs, input services and common input services would be required to be reversed by the applicant as per Section 17 of the CGST

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lated party situated abroad based on purchase order received from its customers. While the goods are in transit, the goods will be sold by the Applicant to its customers before the goods are entered for customs clearance in India. Whether IGST will be leviable on such sale effected by the Applicant to customers who are known to them at the time of placing order on the overseas party? 2. Whether input tax credit will have to be reversed, to the extent of inputs, input services and common input services used by the Applicant, in case the above transaction is not subjected to the levy of IGST by treating the same as an exempt supply for the purpose of Section 17 of the CGST Act? At the outset, we would like to make it clear that the provisons of both the CGST Act and the MGST Act are the same except for certain provisons. Therefore, unless a mention is specifically made to such dissimilar provisons, a reference to the CGST Act would also mean a reference to the same provison under the MGS

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Applicant is registered as per the provisons of the GST Laws. 4. The Applicant seeks the Ruling of the Advance Ruling Authority on the following transaction a) The Applicant is engaged in the trading of chemicals and allied products ('Products'): b) In connection with the said activity, the Applicant will be buying the Products from an overseas supplier who will be the Applicant's related party. The said transactions will be at arm's length pricing. c) The Applicant will be buying the Products from such overseas party against purchase orders received from the Applicant's customers in India. In other words, it will be a back to back purchase order. d) As against the purchase order, the overseas party will export the products. The export documents such as the Bill of Lading will show the Applicant as the buyer of the goods. e) Before the goods cross the customs frontier of India and is entered for customs clearance, the goods in question will be sold by the Applicant

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etter understanding) 5. In trade parlance, the transaction as proposed above, is commonly referred to as a 'High sea sale transaction' 6. The proposed transaction consists of (a) sale of goods by the oversea related party to the Applicant (First sale); and (b) sale of the same goods by the Applicant to its customers for whom the goods were bought by the Applicant its related party Second sale). The customers of the Applicant will be known to them at the time of placing order on the foreign supplier itself. 7. In terms of the proviso to Section 5(1) of the Integrated Goods and Services Tax Act, 2017 ( IGST Act ) on imported Goods IGST Would be levied at the point when duty of Customs becomes payable in terms of Section 12 of the Customs Act and the said IGST would be levied in terms of Section 3(7) of the Customs Tariff Act, 1975 (Customs Tariff Act) 8. However, the sale transaction by the Applicant to the customer also qualifies as an inter-state supply of goods in terms of sec

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ot;applicant" for the purpose to presenting an application before the Advance Ruling Authority under the GST regime copy of GST Registration certificate for the state of Maharashtra is enclosed as Exhibit-B A.3 Further, Section 97(2) of the CGST Act specify the issues for which, an advance ruling can be sought. Section 97(2) of the CGST Act reads as under: – 97. (1) An applicant desirous of obtaining an advance ruling under this Chapter may make an application in such form and manner and accompanied by such fee as may be prescribed, stating the question on which the advance ruling is sought. (2) The question 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 issued 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) determinati

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T 1017/CR 193/Taxation dated 24.10.2017 read with Section 99 of Maharashtra Goods and Service Tax Act, 2017. C. APPLICANT'S INTERPRETATION THE SALE OF GOODS MADE BY THE APPLICANT TO THE END CUSTOMER BEFORE THE GOODS CROSSING THE CUSTOMS FRONTIER OF INDIA ON THE BASIS OF A BACK TO BACK PURCHASE ORDER WILL NOT QUALIFY AS A SUPPLY SUBJECT TO LEVY OF IGST C.1 It is submitted that the sale or goods made prior to the customs clearance of the goods cannot qualify as a supply subject to a levy of IGST under the IGST Act. C.2 The relevant provisons under the IGST Act are being reproduced herein as under- 5. Levy and collection. 5. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty

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a supply of goods in the course of inter-State trade or commerce. C.3 As per Section 5 of the IGST Act read with Section 7, inter-state supply of goods will be subject to a levy of IGST Supply of goods imported into India will also qualify as an Inter-state supply of goods subject to a levy of IGST. However, in respect of the imported goods, the levy would be in accordance with proviso to Section 5(1) of the IGST Act. C.4 In other words, where goods are imported into India, IGST will be levied at the point of levy of duty of customs in accordance with the provisons of the Customs Act, 1962 and the IGST will be levied under Section 3(7) of the Customs Tariff Act. C.5 In the instant scenario, the imported goods will be sold by the Applicant to its end-customer before the goods are entered for customs clearance. This leg of the transaction will also qualify as an inter-state supply in terms of Section 7 of the IGST Act. Therefore, the essential question is whether this sale of goods happ

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oard. 'High Sea Sales' is a common trade practice whereby the original importer sells the goods to a third person before the goods are entered for customs clearance. After the High sea sale of the goods, the Customs declarations i.e. Bill of Entry etc is filed by the person who buys the goods from the original importer during the said sale. In the past, CBEC has issued various instructions regarding high sea sales appropriating the contract price paid by the last high sea sales buyer into the Customs valuation [Circular No. 32/2004-Cus., dated 11-5-2004 refers]. 3. As mentioned earlier, all inter-state transactions are subject to IGST. High sea sales of imported goods are akin to inter-state transactions. Owing to this, it was presented to the Board as to whether the high sea sales of imported goods would be chargeable to IGST twice i.e. at the time of Customs clearance under sub-section (7) of section 3 of Customs Tariff Act, 1975 and also separately under Section 5 of The Int

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last buyer in the chain) would be required to furnish the entire chain of documents, such as original Invoice, high-seas-sales-contract, details of service charges/commission paid etc, to establish a link between the first contracted price of the goods and the last transaction. In case of a doubt regarding the truth or accuracy of the declared value, the department may reject the declared transaction value and determination the price of the imported goods as provided in the Customs Valuation rules. 6. Field formations are requested to decide the cases of high sea sales of imported goods accordingly. Difficulties, in the implementation of this circular may be brought to the knowledge of the Board. ….Emphasis Supplied C.8 Thus, the above circular also affirms the view that high sea sale of goods in the course of import into India will not qualify as a supply subject to a levy of IGST Only at the time of importation, at the point where the goods are entered for customs clearance wi

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not have to be reversed_ D.2 Relevant provisons under the Central Goods and Services Tax Act, 2017 ( CGST Act') is reproduced herein as under – 17. Apportionment of credit and blocked credits. (1) ……. (2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. Section 2(47) of the CGST Act, defines the term exempt supply as under: 2(47) exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; D3. Section 17 of the CGST, Act states

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Since the said supply is not an exempt supply, it is submitted that input tax credit in respect of the inputs, input services and common input services used in connection with the proposed transaction is not required to be reversed. Applicants understanding E.1 As explained in the above para C, the proposed transaction of sale which will be undertaken by the Applicant will qualify as a high sea sale and will not be subject to levy of IGST. IGST will be leviable on the said goods only at the point of import into India. E.2 As explained in the above para D, the said supply will not qualify as an exempt supply falling within the purview of the provisons of the IGST Act/CGST Act and thus, ITC reversal will not be required under the provisons of the same." 03. CONTENTION – AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- Question – 1 As Per Proviso to Section 5 of IGST Act regarding levy and collection of-tax which reads as Provided that the inte

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rities for custom clearance purpose for the first time is exigible to levy of IGST tax. Question 2 : – A:- Relevant provisons under the Central Goods and Services Tax Act, 2017 ( CGST Act) is reproduced herein as under – 17. Apportionment of credit and blocked credits. (1) ……. (2) Where the goods or services or both are used by the registered person partly for effecting taxable supplies including zero-rated supplies under this Act or under the Integrated Goods and Services Tax Act and partly for effecting exempt supplies under the said Acts, the amount of credit shall be restricted to so much of the input tax as is attributable to the said taxable supplies including zero-rated supplies. Section 2(47) of the CGST Act, defines the term exempt supply as under: *2(47) exempt supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act

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-619), Large Tax Payers Unit -Il, Mumbai was present on both the occasions and has made written submissions in the matter. 05. OBSERVATIONS We have gone through the facts of the case. The issue put before us is thus – The applicant will be buying products from an overseas supplier who will be the applicant 'srelated party, The said transactions will be at arm 's length pricing. The applicant will be buying the Products from such overseas party against purchase ordersreceived from the applicant's customers in India. It will be a back to back purchase order. As against the purchase order, the overseas party will export the products. The export documents such as the Bill of Lading will show the applicant as the buyer of the goods. Before the goods cross the customs frontier of India and is entered for customs clearance, the goods in question will be sold by the applicant to its customer who are known to them. The sale will be effected by executing a high sea sale agreement and

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re entered for customs clearance in India. Whether IGST will be leviable on such sale effected by the Applicant to customers who are known to them at the time of placing order on the overseas party? To proceed, we would see certain clauses from the draft High Sea Sales Agreement as furnished by the applicant – Whereas the seller has placed an order to buy certain goods from M/s. BASF Malaysia hereinafter called the foreran supplier, hereby agrees to sell the said goods to M/s. XYZ Lid. on high sea sales. Details 2. Payment The buyer agrees to make payment for the goods by the seller on High Sea through advance cheque. 3. Delivery The seller will transfer the rights Title of the goods to the buyer by endorsing the Bill of Lading in favour the buyer after realization of the cheque. 4. Freight & Insurance a) Freight Considering the fact, that current shipment is on Ex-works terms, the seller shall be responsible for the payment of insurance with respect to this High Sea Sales. b) Insu

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al sales tax will be charged under the provison of Central Sales Tax Act and rules thereof However, in the event of any amendments, modifications, notifications to the contrary the liability If any shall be borne by the buyer. 8. Consideration In consideration of this sale, the buyer shall pay to the seller (as per payment terms enumerated above in clause) as detailed below: Sl No. Particulars Amount 1. Cost of Material 2. Freight 3. Insurance 4. Consideration This amount shall present the entire amount payable by the buyer to the seller and shall include all cost of the seller. The Bill of Lading and draft invoices raised in the transactions have details thus – Bill of Lading Consignor – BASF (Malaysia), Sdn. Bhd. Consignee (not negotiable unless consigned to order) – BASF India Limited, Navi Mumbai, Maharashtra Notify address (Carrier not responsible for failure to notify, see clause 20(1 ) hereof): XYZ Ltd. Port of lading – Hamburg Port of Discharge – Nhava Sheva One original Bill o

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ling the goods on high seas sale basis to another buyer. In view of this we would be required to refer to the provisons of IGST Act, 2017. First of all to confirm the nature of supply of present goods i.e. whether inter-state or intra-state we are required to refer to Chapter IV of the IGST ACT, 2017, which reads as under:- CHAPTER IV DETERMINATION OF NATURE OF SUPPLY Inter-State supply 7. (1) Subject to the provisions of section 10, supply of goods, where the location of the supplier and the place of supply are in- (a) two different States; (b) two different Union territories; or (c) a State and a Union territory, shall be treated as a supply of goods in the course of inter-State trade or commerce. (2) Supply of goods imported into the territory of India, till they cross the customs frontiers of India, shall be treated to be a supply of goods in the course of inter-State trade or commerce. Intra-State supply. 8. (1) Subject to the provisions of section 10, supply of goods where the lo

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applicant before us there is not an iota of doubt that the goods of the applicant are imported goods and when the applicant is selling these goods on high seas sale basis, these goods have not crossed the customs frontiers of India, Thus clearly the transaction in these goods are in the nature of inter-state supply as per Section 7(2) of the IGST Act Now when we are clear that the sale on high seas of these goods are in the nature of inter-state sales, the liability to tax in respect of these goods would be as per Section 5 of the IGST Act which reads as under:- CHAPTER III LEVY AND COLLECTION OF TAX Levy and collection. 5. (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty

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the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. (4) The integrated tax in respect of the supply of taxable goods or services or both by a supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. (5) The Government may, on the recommendations of the Council, by notification, specify categories of services, the tax on inter-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in re

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Act, 1962 Thus from the above it is clear that integrated tax on goods imported into India is to be levied and collected in accordance with Section 3 of the Customs Tariff Act, 1975 and Section 12 of the Customs Act, 1962 and the same is to be levied and collected at the time of import into India. The goods are considered to be imported into India only after they clear the customs frontier after compliance of applicable procedures and payment of duty as applicable. Thus as per Section 7(2) of the IGST Act and proviso to Section 5(1) of the IGST Act it is very clear that in respect of import goods there is no levy and collection except in accordance with the provisons of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff Act, 1975. Section 12 of the Customs Act, 1962 provides that custom duties which includes integrated tax in respect of imported goods would be levied only at the time of import or export of goods. Thus in case of goods sold on high seas sale basis t

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Goods and Services Tax (CGST) Act, 2017, "non-taxable supply" means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act" Thus it is very clear that the goods which are sold on high seas sale basis are non-taxable supply as no tax is leviable on them till the time of customs clearance in accordance with and compliance of Section 12 of the Customs Act, 1962 and Section 3 of the Customs Tariff act, 1975. We find that the above legal position is further reiterated and confirmed by Circular No. 3/1/2018 – IGST dated 25.05.2018 issued by the Central Board of Indirect Taxes and Customs, GST Policy Wing. Question 2 Whether input tax credit will have to be reversed, to the extent of inputs, input services and common input services used by the Applicant, in case the above transaction is not subjected to the levy of IGST by treating the same as an exempt supply for the purpose of Section 17 of the CGST

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ers. While the goods are in transit, the goods will be sold by the Applicant to its customers before the goods are entered for customs clearance in India. Whether IGST will be leviable on such sale effected by the Applicant to customers who are known to them at the time of placing order on the overseas party? A.1 Answered in the negative. Q. 2 Whether input tax credit will have to be reversed, to the extent of inputs, input services and common input services used by the Applicant, in case the above transaction is not subjected to the levy of IGST by treating the same as an exempt supply for the purpose of Section 17 of the CGST Act? A. 2 Answered in the affirmative. An appeal against this order will lie with the Appellate Authority, Advance Ruling Maharashtra, 15th floor, Air India Building, Madame Cama Road, Churchgate, Mumbai- 400020, as provided under Section 100 of the GST Act, 2017 The appeal should be filed in Form GST ARA-02 accompanied by a fee of ₹ 10,000/- pertaining to

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2018 (7) TMI 6 – CESTAT NEW DELHI – TMI – Valuation – inclusion of VAT in assessable value – Revenue was of the view that VAT liability discharged by the utilisation of the investment subsidy granted in Form 37B actually paid, for the purpose of Section 4 of the Central Excise Act – Held that:- Identical issue decided in the case of Shree Cements Ltd. V/s CCE, Alwar [2018 (1) TMI 915 – CESTAT NEW DELHI], where it was held that There is no justification for inclusion in the assessable value, the VAT amounts paid by the assessee using VAT 37B Challans – appeal allowed – decided in favor of appellant.

– Ex. Appeal No. 50993 of 2018 – A/52009/2018-EX[DB] – Dated:- 21-5-2018 – Mr. V. Padmanabhan, Member (Technical) And Ms. Rachna Gupta, Member (Judicial) Sh. B. L. Yadav, Advocate for the appellant Sh. U. Sengraj, AR for the Respondent ORDER Per: V. Padmanabhan: The present appeal has been filed against the Order-in-Appeal 34(SM)CE/JPR/2018 dated 02.02.2018. 2. The brief facts of the

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ion 4 of the Central Excise Act. Accordingly, the Revenue proceeded to include such subsidy amounts in the value of the goods cleared by the appellants and demanded the difference of the duty. Being aggrieved, the appellant has filed the present appeal. 3. With this background we heard the Ld. Advocates for the appellant and Shri M.R. Sharma, Ld DR for the Revenue. 4. After hearing both sides and on perusal of record, 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 disburse

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ction 4(3)(d). However, we note that the Tribunal in the case of Welspun Corporation Ltd. (Supra) has distinguished the decision of the Apex Court in the light of Gujarat VAT Act, 2003. In the Welspun Corporation Ltd. case, the assesse had opted for remission of tax scheme under which a portion of the VAT paid was remitted back to the assessee. The Tribunal held that such subsidy amounts are not required to the 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 li

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2018 (7) TMI 5 – CESTAT NEW DELHI – TMI – Valuation – inclusion of VAT in assessable value – Revenue was of the view that VAT liability discharged by the utilisation of the investment subsidy granted in Form 37B actually paid, for the purpose of Section 4 of the Central Excise Act – Held that:- Identical issue decided in the case of Shree Cements Ltd. V/s CCE, Alwar [2018 (1) TMI 915 – CESTAT NEW DELHI], where it was held that There is no justification for inclusion in the assessable value, the VAT amounts paid by the assessee using VAT 37B Challans – appeal allowed – decided in favor of appellant. – Ex. Appeal No. 51022 of 2018 – A/52010/2018-EX[DB] – Dated:- 21-5-2018 – Mr. V. Padmanabhan, Member (Technical) And Ms. Rachna Gupta, Member (Judicial) Sh. B. L. Yadav, Advocate for the appellant Sh. U. Sengraj, AR for the Respondent ORDER Per: V. Padmanabhan: The present appeal has been filed against the Order-in-Appeal JAI-EXCUS-001-APP-073-2018 dated 02.02.2018. 2. The brief facts of t

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Section 4 of the Central Excise Act. Accordingly, the Revenue proceeded to include such subsidy amounts in the value of the goods cleared by the appellants and demanded the difference of the duty. Being aggrieved, the appellant has filed the present appeal. 3. With this background we heard the Ld. Advocates for the appellant and Shri M.R. Sharma, Ld DR for the Revenue. 4. After hearing both sides and on perusal of record, 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 disb

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f Section 4(3)(d). However, we note that the Tribunal in the case of Welspun Corporation Ltd. (Supra) has distinguished the decision of the Apex Court in the light of Gujarat VAT Act, 2003. In the Welspun Corporation Ltd. case, the assesse had opted for remission of tax scheme under which a portion of the VAT paid was remitted back to the assessee. The Tribunal held that such subsidy amounts are not required to the 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 VA

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2018 (6) TMI 1408 – CESTAT HYDERABAD – TMI – Reversal of CENVAT Credit – benefit of N/N. 82/84 is availed – denial of benefit on the ground that the benefit of N/N. 82/84 is availed and exemption granted, appellant having availed CENVAT credit on common input services is required to reverse an amount equivalent to 6% of the value of the goods – Held that:- Identical issue decided in appellant own case INOX AIR PRODUCTS PVT. LTD. VERSUS CCE & ST VISAKHAPATNAM [2017 (9) TMI 500 – CESTAT HYDERABAD], where reliance was placed in the case of DHARAMSI MORARJI CHEMICAL CO. LTD. Versus COMMR. OF C. EX., RAIGAD [2010 (3) TMI 561 – CESTAT MUMBAI], where the very same rule 6 of Cenvat Credit Rules was invoked, where the Bench has held that the provis

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e is regarding reversal of amount equivalent to 6% of the value of the goods cleared under Notification No. 82/84 to M/s Hindustan Shipyard Limited claiming exemption on following the procedures required under Chapter X Procedure. Undisputedly, that the purchasers of the final products followed the procedure under Chapter X and CT-3 certificates produced. It is the case of the Revenue, since the benefit of Notification 82/84 is availed and exemption granted, appellant having availed CENVAT credit on common input services is required to reverse an amount equivalent to 6% of the value of the goods cleared to Hindustan Shipyard Limited. 4. Learned Counsel submits that identical issue of the very same appellant came up before this Bench and Fin

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e in hand the appellant is required to reverse the credit. The appellants were not cited before the Bench in the earlier proceedings. 6. I find that the Learned Counsel was correct in bringing to my notice that identical issue of the very same appellant has been decided by this Bench vide Final Order dated 17.08.2017. In the said order, the Bench while allowing appeal of the appellant, in Paragraph No. 5 extensively reproduced the ratio of the Tribunal in the case of Dharamsi Morarji Chemical Co. Ltd., [2010 (255) ELT 314] and also it is recorded that the same is upheld by the Hon ble High Court of Mumbai as reported at [2016 (338) ELT A38 (Bom.)]. In my view, the issue involved in this case being settled in the favour of the assessee by Ho

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2018 (6) TMI 230 – PUNJAB AND HARYANA HIGH COURT – 2018 (16) G. S. T. L. 356 (P & H) – Transitional credit – CENVAT credit – Rule 10 of the CENVAT Credit Rules, 2004 – Held that:- we dispose of the present petition by granting liberty to the petitioner to file a detailed and comprehensive representation raising all the pleas as raised in the present writ petition before the Nodal Officer within a period of five days – petition disposed off. – CWP-10194-2018 (O&M) Dated:- 21-5-2018 – MR. AJAY KUMAR MITTAL, ACJ AND MR. TEJINDER SINGH DHINDSA, JJ. For The Petitioner : Mr. Amar Pratap Singh, Advocate For The Respondents : Mr. Sourabh Goel, Advocate ORDER AJAY KUMAR MITTAL.ACJ (Oral) Petitioner-firms is registered as a private limited company

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ive days. It is directed that in the event of a representation being filed by the petitioner within the aforesaid period of five days from the date of receipt of the certified copy of the order, the same shall be forwarded to the I.T. Redressal Committee concerned within next fifteen days after verification by the G.S.T.N and the Committee shall thereafter decide the same in terms of clause 5.4 of Circular No.39/13/2018-GST dated 3.4.2018 by passing a speaking order and after affording an opportunity of hearing to the petitioner within a period of four weeks from the date of receipt of the representation. The petitioner shall be entitled to lead any evidence to substantiate his claim before the concerned authority. – Case laws – Decisions

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2018 (6) TMI 185 – CESTAT HYDERABAD – TMI – CENVAT credit – various input services – works contract service – renting of immovable property service – security services – cleaning service – internet service – business auxiliary service – time limitation – Penalty – Held that: – Post 01.04.2011 the definition of input services specifically excludes credit of tax paid on works contract services, if they are rendered from setting up factory – credit rightly denied.
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Other input services – Held that:- These services are rendered by the service providers at the Mumbai premises which was used by the appellant for the sales related activity, marketing and research of the few products – R & D activity was undertaken at Mumbai as there cannot be any dispute that it is in interest of the business, research and development is a primary requirement – the appellant is eligible to avail CENVAT credit of service tax for the Renting of Immovable Property, Security Services, Cleaning, Internet, Wo

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This appeal is directed against Order-in-Appeal No. HYDEXCUS- MD-AP2-041-17-18 dated 30.08.2017. 2. Relevant facts that arise for consideration are the appellants are the manufacturers of Fragrances and Flavoring Essences. They registered with the Central Excise Department vide CER No. AACCM1243JXM001. They are availing credit of duty paid on inputs and input services under the provisions of CENVAT Credit Rules, 2004 and utilizing the same for payment of duty on final products. Their accounts were audited by the Central Excise staff during January, 2015, covering the period from April, 2013 to September, 2014 and observed that the appellants has – a) Irregularly availed CENVAT credit of ₹ 28,75,157/- on the input services which were utilized exclusively in R & D unit located at Mumbai. b) Irregularly availed CENVAT credit of ₹ 9,393/- on ineligible input service. 2.1 On being pointed out by the audit, the appellant has paid part amount of ₹ 11,26,813/- pertaining

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al Excise Act, 1994. The notice was adjudicated in the impugned order, culminating in the instant appeal, wherein the proposals were confirmed as follows: a) Confirmed the demand of ₹ 28,75,157/- being the irregular CENVAT credit availed under Rule 14 of CENVAT Credit Rules read with Section 11A(10) of Central Excise Act, 1944. b) Appropriated ₹ 11,26,813/- already paid by them against above demand. c) Confirmed the interest applicable under Rule 14 of CENVAT Credit Rules read with Section 11AA of Central Excise Act. d) Confirmed the demand of interest on the above amounts under Section 75 of Finance Act, 1994. e) Imposed penalty of ₹ 28,75,157/- under Rule 15 of the CENVAT Credit Rules, 2004 read with Section 11AC of Central Excise Act. Aggrieved by such an order, an appeal was preferred before the First Appellate Authority. The First Appellate Authority, after following due process of law, rejected the appeal on merits as well as on limitation. 3. Learned Consultant

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paid on works contract service, it is his submission that the work contracts service which is awarded for modernization of the office premises. He is draws my attention, works order nothing but modernization and the CENVAT credit of service tax is correctly availed as the modernization of the office is not excluded eligibility to avail CENVAT credit. He relied upon the judgment of the Tribunal in the case of Ahmednagar Forgings Ltd., [2017 (6) G.S.T.L. 54] and Heidelberg, Cement India Ltd., [2017 (6) G.S.T.L. (473)] for the proposition that CENVAT credit can be availed for the services rendered at Hyderabad office. 4. Learned Departmental Representative on the other hand submits that, the premises at Mumbai are used only for R&D wing activity. It is his submission that R& D activity in itself the CENVAT credit on services rendered to such premises cannot be availed by the appellant. There is nothing on record to show that the products which were researched were commercially pro

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aruthi Suzuki India Ltd., [2016 (336) ELT 266] for the proposition that nothing used in R&D activity, CENVAT credit cannot be availed as R&D activity it is excluded itself. 5. On careful consideration of the submissions made by both sides and perused the records. On perusal of records, as correctly put forth by both sides, the issue is regarding eligibility to avail CENVAT credit of the service tax paid on renting of immovable property service, security services, cleaning service, internet service and business auxiliary service has also works contract service which was rendered to appellant s premises situated in Mumbai. 6. As regards the works contract service, I find that the appellant is not eligible to avail CENVAT credit of the service tax paid on works contract services. On perusal of works order issued, I find the works order has been issued to service provider for setting up of entire facility of R&D, sales division along with administration in order to start functi

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cturing activity, were not commercially produced. In my view these findings are acceptance of fact that seems R & D activity was undertaken at Mumbai as there cannot be any dispute that it is in interest of the business, research and development is a primary requirement. I find that the lower authorities have stated in the orders that if the appellant should have obtained registration under input service distributor, which would indicate that services rendered at Mumbai, were in relation to the activity of manufacturing done at Hyderabad. In my view, the plea of the appellant they have centralized accounting at Hyderabad and entire payment to the service providers either in Hyderabad or Mumbai is done from Hyderabad, was not appreciated by the Lower Authorities in its correct perspective. If centralized accounting is done at Hyderabad, in my view getting an ISD registration in Mumbai may not be of any relevance, further there is nothing on record to show that the appellant had unit

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