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THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) BILL, 2018 (GST
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THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) BILL, 2018
GST
Dated:- 8-8-2018
As INTRODUCED IN LOK SABHA
Bill No. 143 of 2018
THE CENTRAL GOODS AND SERVICES TAX (AMENDMENT) BILL, 2018
A
BILL
further to amend the Central Goods and Services Tax Act, 2017.
BE it enacted by Parliament in the Sixty-ninth Year of the Republic of India as follows:-
Short title and commencement
1. (1) This Act may be called the Central Goods and Services Tax (Amendment) Act, 2018.
(2) Save as otherwise provided, the provisions of this Act shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint:
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
Amendment of section 2
2. In section 2 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (he
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nserted;
(f) in clause (102), the following Explanation shall be inserted, namely:
'Explanation.For the removal of doubts, it is hereby clarified that the expression “services” includes facilitating or arranging transactions in securities;'.
Amendment of section 7.
3. In section 7 of the principal Act, with effect from the 1st day of July, 2017,
(a) in sub-section (1),
(i) in clause (b), after the words “or furtherance of business;”, the word “and” shall be inserted and shall always be deemed to have been inserted;
(ii) in clause (c), after the words “a consideration”, the word “and” shall be omitted and shall always be deemed to have been omitted;
(iii) clause (d) shall be omitted and shall always be deemed to have been omitted;
(b) after sub-section (1), the following sub-section shall be inserted and shall always be deemed to have been inserted, namely:
“(1A) where certain activities or transactions, constitute a supply in accordance with the provisions of sub-section (1)
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ipal Act,-
(a) in sub-section (1) –
(i) for the words “in lieu of the tax payable by him, an amount calculated at such rate”, the words, brackets and figures “in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate” shall be substituted;
(ii) in the proviso, for the words “one crore rupees”, the words “one crore and fifty lakh rupees” shall be substituted;
(iii) after the proviso, the following proviso shall be inserted, namely:
“Provided further that a person who opts to pay tax under clause (a) or clause (b) or clause (c) may supply services (other than those referred to in clause (b) of paragraph 6 of Schedule II), of value not exceeding ten per cent. of turnover in a State or Union territory in the preceding financial year or five lakh rupees, whichever is higher.”;
(b) in sub-section (2), for clause (a), the following clause shall be substituted, namely:
“(a) save as provided in sub-section (1), he is not engaged in the
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e the services are provided by the supplier to any person on the direction of and on account of such registered person.”;
(b) in clause (c), for the word and figures “section 41”, the words, figures and letter “section 41 or section 43A” shall be substituted.
Amendment of section 17
9. In section 17 of the principal Act,
(a) in sub-section (3), the following Explanation shall be inserted, namely:
'Explanation.-For the purposes of this sub-section, the expression ''value of exempt supply'' shall not include the value of activities or transactions specified in Schedule III, except those specified in paragraph 5 of the said Schedule.';
(b) in sub-section (5), for clauses (a) and (b), the following clauses shall be substituted, namely:-
“(a) motor vehicles for transportation of persons having approved seating capacity of not more than thirteen persons (including the driver), except when they are used for making the following taxable supplies, namely:-
(A) further supply of such mot
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insurance services in respect of such motor vehicles, vessels or aircraft insured by him;
(b) the following supply of goods or services or both-
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery, leasing, renting or hiring of motor vehicles, vessels or aircraft referred to in clause (a) or clause (aa) except when used for the purposes specified therein, life insurance and health insurance:
Provided that the input tax credit in respect of such goods or services or both shall be available where an inward supply of such goods or services or both is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre; and
(iii) travel benefits extended to employees on vacation such as leave or home travel concession:
Provided that the input tax credit in respect of such goods
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al Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand” shall be inserted.”.
Amendment of section 24
12. In section 24 of the principal Act, in clause (x), after the words “commerce operator”, the words and figures “who is required to collect tax at source under section 52” shall be inserted.
Amendment of section 25.
13. In section 25 of the principal Act,
(a) in sub-section (1), after the proviso and before the Explanation, the following proviso shall be inserted, namely:
“Provided further that a person having a unit, as defined in the Special Economic Zones Act, 2005, in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State or Union territory.";
(b) in sub-section (2), for the proviso, the following proviso shall be substituted, namely:
"Provided that a person having multiple places of busine
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ncipal Act,
(a) in sub-section (1),
(i) for the words “Where a tax invoice has”, the words “Where one or more tax invoices have” shall be substituted;
(ii) for the words “a credit note”, the words “one or more credit notes for supplies made in a financial year” shall be substituted;
(b) in sub-section (3),
(i) for the words “Where a tax invoice has”, the words “Where one or more tax invoices have” shall be substituted;
(ii) for the words “a debit note”, the words “one or more debit notes for supplies made in a financial year” shall be substituted.
Amendment of section 35
16. In section 35 of the principal Act, in sub-section (5), the following proviso shall be inserted, namely:-
“Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local
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reof as per the return on or before the last date on which he is required to furnish such return, subject to such conditions and safeguards as may be specified therein.”;
(c) in sub-section (9),
(i) for the words "in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed", the words "in such form and manner as may be perscribed" shall be substituted;
(ii) in the proviso, for the words “the end of the financial year”, the words “the end of the financial year to which such details pertain” shall be substituted.
Insertion of new section 43A.
18. After section 43 of the principal Act, the following section shall be inserted, namely:-
Procedure for furnishing return and availing input tax credit
“43A. (1) Notwithstanding anything contained in sub-section (2) of section 16, section 37 or section 38, every registered person shall in the returns furnished under sub-section (1) of section 39 verify, validate
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section (3) shall be deemed to be the tax payable by him under the provisions of the Act.
(6) The supplier and the recipient of a supply shall be jointly and severally liable to pay tax or to pay the input tax credit availed, as the case may be, in relation to outward supplies for which the details have been furnished under sub-section (3) or sub-section (4) but return thereof has not been furnished.
(7) For the purposes of sub-section (6), the recovery shall be made in such manner as may be prescribed and such procedure may provide for non-recovery of an amount of tax or input tax credit wrongly availed not exceeding one thousand rupees.
(8) The procedure, safeguards and threshold of the tax amount in relation to outward supplies, the details of which can be furnished under sub-section (3) by a registered person,-
(i) within six months of taking registration;
(ii) who has defaulted in payment of tax and where such default has continued for more than two months from the due date o
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x only where the balance of the input tax credit on account of central tax is not available for payment of integrated tax;”.
Insertion of new sections 49A and 49B
21. After section 49 of the principal Act, the following sections shall be inserted, namely:
Utilisation of input tax credit subject to certain conditions
“49A. Notwithstanding anything contained in section 49, the input tax credit on account of central tax, State tax or Union territory tax shall be utilised towards payment of integrated tax, central tax, State tax or Union territory tax, as the case may be, only after the input tax credit available on account of integrated tax has first been utilised fully towards such payment.
Order of utilisation of input tax credit.
49B. Notwithstanding anything contained in this Chapter and subject to the provisions of clause (e) and clause (f) of sub-section (5) of section 49, the Government may, on the recommendations of the Council, prescribe the order and manner of utilisation
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ue date for furnishing of return under section 39 for the period in which such claim for refund arises;”.
Amendment of section 79
24. In section 79 of the principal Act, after sub-section (4), the following Explanation shall be inserted, namely:-
'Explanation.For the purposes of this section, the word person shall include “distinct persons” as referred to in sub-section (4) or, as the case may be, sub-section (5) of section 25.'.
Amendment of section 107
25. In section 107 of the principal Act, in sub-section (6), in clause (b), after the words “arising from the said order,”, the words “subject to a maximum of twenty-five crore rupees,” shall be inserted.
Amendment of section 112
26. In section 112 of the principal Act, in sub-section (8), in clause (b), after the words “arising from the said order,” the words “subject to a maximum of fifty crore rupees,” shall be inserted.
Amendment of section 129
27. In section 129 of the principal Act, in sub-section (6), for the words “sev
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ing Explanation shall be inserted and shall always be deemed to have been inserted, namely:-
'Explanation 3.-For removal of doubts, it is hereby clarified that the expression “eligible duties and taxes” excludes any cess which has not been specified in Explanation 1 or Explanation 2 and any cess which is collected as additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975 (51 of 1975).'.
Amendment of section 143
29. In section 143 of the principal Act, in sub-section (1), in clause (b), after the proviso, the following proviso shall be inserted, namely:-
“Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively.”.
Amendment of Schedule I
30. In Schedule I of the principal Act, in paragraph 4, for the words “taxable person”, the word “person” shall be substituted.
Amendment of Schedule II
31. In Sch
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on 2.For the purposes of this paragraph, the expression “warehoused goods” shall have the same meaning as assigned to it in the Customs Act, 1962.”.
STATEMENT OF OBJECTS AND REASONS
The Central Goods and Services Tax Act, 2017 (the Act) was enacted with a view to make a provision for levy and collection of tax on intra-State supply of goods or services or both by the Central Government.
2. The Act provides for certain provisions for smooth transition of existing taxpayers to new goods and services tax regime. However, the new tax regime had faced certain difficulties. One of the major inconveniences caused to the taxpayers, especially small and medium enterprises, was the process of filing return and payment of tax under the Goods and Services Tax laws. In this regard, the proposed new return filing system envisages quarterly filing of return and tax payment for small taxpayers along with minimum paperwork. In order to implement the new return filing system, and also to overcome the
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to have the option to obtain multiple registrations for multiple places of business located within the same State or Union territory and to provide for separate registration for Special Economic Zone unit or developer;
(vii) to amend section 29 of the Act so as to insert a provision for temporary suspension of registration while cancellation of registration is under process;
(viii) to insert a new section 43A so as to provide for the new system of filing return and availing input tax credit;
(ix) to amend sub-section (6) of section 107 of the Act relating to Appeals so as to provide that the amount of pre-deposit payable for filing of appeal shall be capped at twenty five crore rupees;
(x) to amend section 129 of the Act so as to increase the period relating to detention or seizure of goods and conveyance in transit from seven days to fourteen days.
4. The Bill seeks to achieve the above objectives.
PIYUSH GOYAL
NEW DELHI;
The 4th August, 2018.
PRESIDENT'S RECOMMENDATION UNDER
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Collection" so as to restrict the levy of tax on reverse charge basis to receipt of supplies of certain specified categories of goods or services or both by notified classes of registered persons from unregistered suppliers on the recommendations of the Council.
Clause 5 of the Bill seeks to amend section 10 of the principal Act relating to "Composition Levy", so as to raise the statutory threshold of turnover for a taxpayer to be eligible for the composition scheme from one crore rupees to one crore and fifty lakh rupees, and to allow the composition taxpayers to supply services (other than restaurant services), for up to a value not exceeding ten per cent. of turnover in the preceding financial year, or five lakh rupees, whichever is higher.
Clause 6 of the Bill seeks to amend section 12 of the principal Act relating to "Time of supply of goods" and the said amendment is drafting in nature.
Clause 7 of the Bill seeks to amend section 13 of the principal Ac
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he Constitution from the value of turnover for the purposes of distribution of credit.
Clause 11 of the Bill seeks to amend section 22 of the principal Act relating to "Persons liable for registration", so as to increase the threshold turnover for registration in special category States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand from ten lakh rupees to twenty lakh rupees.
Clause 12 of the Bill seeks to amend section 24 of the principal Act relating to "Compulsory registration in certain cases", so as to provide for mandatory registration for only those e-commerce operators who are liable to collect tax at source under section 52 of the principal Act.
Clause 13 of the Bill seeks to amend section 25 of the principal Act relating to "Procedure for registration", so as to allow persons having multiple places of business in a State or Union territory to obtain separate registration for each such place of business, and to
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need not get their books of account audited by any Chartered Accountant or Cost Accountant.
Clause 17 of the Bill seeks to amend section 39 of the principal Act relating to "Furnishing of returns", so as to provide for prescribing the procedure for quarterly filing of returns with monthly payment of taxes.
Clause 18 of the Bill seeks to insert a new section 43A to provide for prescribing the procedure for furnishing return and availing input tax credit.
Clause 19 of the Bill seeks to amend section 48 of the principal Act relating to "Goods and Services Tax Practitioners", so as to allow Goods and Services Tax Practitioners to perform other functions such as filing refund claim, filing application for cancellation of registration, etc.
Clause 20 of the Bill seeks to amend section 49 of the principal Act relating to "Payment of tax, interest, penalty and other amounts" in order to provide that the credit of State tax or Union territory tax can be utilise
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der to provide that the principle of unjust enrichment will apply in case of a refund claim arising out of supplies of goods or services or both made to a Special Economic Zone developer or unit, and to allow receipt of payment in Indian rupees, where permitted, by the Reserve Bank of India in case of export of services.
Clause 24 of the Bill seeks to amend section 79 of the principal Act relating to "Recovery of tax", to enable recovery to be made from distinct persons registered in different States or Union territories in order to ensure speedy recovery from other establishments of the registered person.
Clause 25 of the Bill seeks to amend section 107 of the principal Act relating to "Appeals to Appellate Authority", in order to specify twenty-five crore rupees as the upper limit of the amount of pre-deposit payable for filing of appeal before the Appellate Authority.
Clause 26 of the Bill seeks to amend section 112 of the principal Act relating to "Appea
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quot; in order to empower the Commissioner to extend the time limit for return of inputs and capital goods sent on job work, upto a period of one year and two years, respectively.
Clause 30 of the Bill seeks to amend Schedule I of the principal Act relating to "Activities to be treated as supply even if made without consideration".
Clause 31 of the Bill seeks to amend the title of Schedule II of the principal Act from "Activities to be treated as supply of goods or supply of services" to "Activities or transactions to be treated as supply of goods or supply of services".
Clause 32 of the Bill seeks to amend Schedule III of the principal Act relating to "Activities or transactions which shall be treated neither as a supply of goods nor a supply of services".
FINANCIAL MEMORANDUM
The proposed Central Goods and Services Tax (Amendment) Bill, 2018 does not involve any recurring or non-recurring expenditure from the Consolidated Fund of India.
M
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ide for them in the Bill itself. The delegation of legislative powers is, therefore, of a normal character.
ANNEXURE
EXTRACTS FROM THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
(12 OF 2017)
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Definitions
2. In this Act, unless the context otherwise requires,-
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(4) "adjudicating authority" means any authority, appointed or authorised to pass any order or decision under this Act, but does not include the Central Board of Excise and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority and the Appellate Tribunal;
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(17) "business" includes-
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(h) services provided by a race club by way of totalisator or a licence to book maker in such club ; and
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(18) "business vertical" means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services wh
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but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;
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CHAPTER III
LEVY AND COLLECTION OF TAX
Scope of supply.
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.
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(3) Subject to the provisions of sub-sections (1) and (2), the Gove
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ble by him, an amount calculated at such rate as may be prescribed, but not exceeding,-
(a) one per cent. of the turnover in State or turnover in Union territory in case of a manufacturer,
(b) two and a half per cent. of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and
(c) half per cent. of the turnover in State or turnover in Union territory in case of other suppliers,
subject to such conditions and restrictions as may be prescribed:
Provided that the Government may, by notification, increase the said limit of fifty lakh rupees to such higher amount, not exceeding one crore rupees, as may be recommended by the Council.
(2) The registered person shall be eligible to opt under sub-section (1), if:-
(a) he is not engaged in the supply of services other than supplies referred to in clause (b) of paragraph 6 of Schedule II;
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CHAPTER IV
TIME AND VALUE OF SUPPLY
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(b) do not apply:
Provided that where the supplier of taxable service receives an amount up to one thousand rupees in excess of the amount indicated in the tax invoice, the time of supply to the extent of such excess amount shall, at the option of the said supplier, be the date of issue of invoice relating to such excess amount.
Explanation.-For the purposes of clauses (a) and (b)-
(i) the supply shall be deemed to have been made to the extent it is covered by the invoice or, as the case may be, the payment;
(ii) "the date of receipt of payment" shall be the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier.
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CHAPTER V
INPUT TAX CREDIT
Eligibility and conditions for taking input tax credit
16. (1) * * * * *
(2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of
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sis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building.
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(5) Notwithstanding anything contained in sub-section (1) of section 16 and sub-section (1) of section 18, input tax credit shall not be available in respect of the following, namely:-
(a) motor vehicles and other conveyances except when they are used-
(i) for making the following taxable supplies, namely:-
(A) further supply of such vehicles or conveyances; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles or conveyances;
(ii) for transportation of goods;
(b) the following supply of goods or services or both-
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of go
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taxable under this Act, means the value of turnover, reduced by the amount of any duty or tax levied under entry 84 of List I of the Seventh Schedule to the Constitution and entries 51 and 54 of List II of the said Schedule.
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Compulsory registration in certain cases
24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,-
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(x) every electronic commerce operator;
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Procedure for registration
25. (1) Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:
Provided that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement o
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payable in respect of such supply, or where the goods supplied are returned by the recipient, or where goods or services or both supplied are found to be deficient, the registered person, who has supplied such goods or services or both, may issue to the recipient a credit note containing such particulars as may be prescribed.
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(3) Where a tax invoice has been issued for supply of any goods or services or both and the taxable value or tax charged in that tax invoice is found to be less than the taxable value or tax payable in respect of such supply, the registered person, who has supplied such goods or services or both, shall issue to the recipient a debit note containing such particulars as may be prescribed.
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CHAPTER VIII
ACCOUNTS AND RECORDS
Accounts and other records
35. (1) * * * * *
(5) Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant a
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er such return not later than the last date on which he is required to furnish such return.
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(9) Subject to the provisions of sections 37 and 38, if any registered person after furnishing a return under sub-section (1) or sub-section (2) or sub-section (3) or sub-section (4) or sub-section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by the tax authorities, he shall rectify such omission or incorrect particulars in the return to be furnished for the month or quarter during which such omission or incorrect particulars are noticed, subject to payment of interest under this Act:
Provided that no such rectification of any omission or incorrect particulars shall be allowed after the due date for furnishing of return for the month of September or second quarter following the end of the financial year, or the actual date of furnishing of relevant annual return, whichever is earlier.
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tory tax shall first be utilised towards payment of Union territory tax and the amount remaining, if any, may be utilised towards payment of integrated tax;
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Collection of tax at source.
52. (1) * * * * *
(9) Where the details of outward supplies furnished by the operator under sub-section (4) do not match with the corresponding details furnished by the supplier under section 37, the discrepancy shall be communicated to both persons in such manner and within such time as may be prescribed.
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CHAPTER XI
REFUNDS
Refund of tax.
54. (1) * * * * *
(8) Notwithstanding anything contained in sub-section (5), the refundable amount shall, instead of being credited to the Fund, be paid to the applicant, if such amount is relatable to-
(a) refund of tax paid on zero-rated supplies of goods or services or both or on inputs or input services used in making such zero-rated supplies;
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(e) the tax and interest, if any, or any other amount paid by the applicant, if
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the amount of tax and penalty as provided in sub-section (1) within seven days of such detention or seizure, further proceedings shall be initiated in accordance with the provisions of section 130:
Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer.
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Transitional arrangements for input tax credit.
140. (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed:
Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:-
(i) where the said amount of credit is not ad
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(b) supply such inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be:
Provided that the principal shall not supply the goods from the place of business of a job worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case-
(i) where the job worker is registered under section 25; or
(ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner.
* * * * *
SCHEDULE I
[See section 7]
ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION
* * * * *
4. Import of services by a taxable person from a related person or fro
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E-way Bill for Corrected Invoice
Query (Issue) Started By: – Praveen Nair Dated:- 8-8-2018 Last Reply Date:- 30-8-2018 Goods and Services Tax – GST
Got 8 Replies
GST
Hello Experts,
The company follows the system of reversing / cancelling the Tax Invoice (Sales) if there are any discrepancies observed in Tax Invoice details i.e., Batch No. / Wrong Consignee etc… and issues a Fresh Tax Invoice. This is as per the control established in the ERP Software.
The earlier number of Tax Invoice having discrepancies remains cancelled and a Fresh number is assigned to the rectified Tax Invoice, which may have same date or other future dates.
Since the material has already reached the Customer premises and the software doesn't allo
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djusted by issuing Credit/ Debit Notes.
Reply By Praveen Nair:
The Reply:
Hi Anita
There are no changes in the Invoice Value. Other elements of the Invoices changes, which once printed cannot be amended and hence has to be cancelled, in the ERP system followed by the company.
Customer highlights the error when the material reaches their premises. Amendmend in Tax Invoices cannot be made in the software due to control process and hence we have to call back the Tax Invoice cancel it and Issue a Fresh Tax Invoice with the relevant details. The Invoice number changes hence. Returns are filed correctly with the amended Tax Invoice.
Query: Whether E-way has to be prepared for the new Tax Invoices, there are no movement of goods since the mat
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st keep control in your ERP to avoid such kind of mistake like control in editing already raised invoice.
e-Way bill may not be required once material reached proper destination.
However there will be audit point on cancelling invoice after dispatch of material from your premises.
This will lead to willful practice of cancelling invoice after dispatch of material to change the customer.
Reply By Ramaswamy S:
The Reply:
1. e-way bill is generated for the Aof goods. The e -way bill has a validity period. There is a provision to cancel the ewb within 24 hours.
2. If the goods have left, there is no provision to cancel the invoice/ e-way bill.
3. Issue a Credit Note to nullify the receivables.
4. Issue a new invoice with a remark that t
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AMBULANCE SERVICES UNDER NATIONAL HEALTH MISSION PROGRAM
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 8-8-2018
National Health Mission Program
The National Health Mission (NHM), a flagship programme of the Government of India, the Central Government provides technical and financial support to states to strengthen healthcare systems including for free ambulance services (Dial 102/108 services).
* Dial 108 is the emergency response system primarily designed to attend to patients of critical care, trauma and accident victims etc.,
* Dial 102 services essentially are for basic patient transport aimed to cater the needs of pregnant women and children'
Many states are operating the ambulance service on an outsourced model and these services are funded under the NHM and provided free of cost to all patients.
This entire project involves three types of activities,-
* one by the Government for the public;
* the second by the private service pro
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d 20.06.2012. Sl. No. 2 of the said Notification exempted Health care services by a clinical establishment, an authorized medical practitioner or para-medics. Vide Notification No. 06/2015-Service Tax, dated 01.03.2015, with effect from 01.04.2015 the services provided by way of transportation of a patient in an ambulance, other than those specified above also got exempted.
Services provided to the Government
In the above said Notification the serial No. 25(a) gave exemption to the services provided to the Government. For the period from 01.07.2012 to 10.07.2014 the services provided to Government, a local authority or a governmental authority by way of "(a) carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and up gradation. For the period from 11.07.2014 to 30.06.2017 the services provided to Government, a local authority or a
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nsport in the form of Emergency Response System (ERS) and Patient Transport Systems (PTS) is an essential requirement of the public hospital and one which would reduce the cost barriers to institutional care.
The Circular clarified that the provision of ambulance services to State governments under the NHM is a service provided to government by way of public health and hence exempted under notification no 25/2012-Service Tax dated 20.06.2012.
Position in GST regime
The exemption given to the Health Services under the service tax regime has also been extended to GST regime. Sl. No. 74 of Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 the services by way of-
* health care services by a clinical establishment, an authorised medical practitioner or para-medics;
* services provided by way of transportation of a patient in an ambulance, other than those specifiedabove.
under Service Accounting Code 9993, are given exemption.
Sl. No. 3 of the said Notification deals wi
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y by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.
Vide Circular No. 51/2018-Central Tax (Rate), dated 31.07.2018 the Central Government clarified that-
* the clarification contained in the Circular No. 210/2/2018- Service Tax dated 30th May, 2018 with regard to the services provided by Government and PSPs by way of transportation of patients in an ambulance is applicable for the purpose of GST also, as the said services are specifically exempt under notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 vide Sl. No. 74.
* the service provided by PSPs to the State Governments by way of transportation of patients on behalf of the State Governments against consideration in the form of fee or otherwise charged from the State Government, it is clarified that the same would be exempt under-
* Sl. No. 3 of notificat
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Advance Ruling in GST
By: – Sanjeev Singhal
Goods and Services Tax – GST
Dated:- 8-8-2018
In the interest of avoiding litigations and trembling investor confidence, the advance ruling plays a very important role. Through this facility, an investor gets clarity over the ambiguous and complex provisions of the law and gets more stability as far as the taxation is concerned. The concept for Advance ruling was first introduced in Income tax laws and later on into the indirect taxes as well.
The Indian system for Advance ruling is also better than some developed nations including United States of America, Australia etc. In India, the Authority for Advance Ruling (AAR) delivers the judgment which is a separate quasi-judicial body which works independently of the Income tax department. However, in some developed nations, the advance ruling is given by the revenue department which in any case cannot be said as an independent body.
Advance Ruling in GST provides certainty in c
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er of CGST as designated by the Board and the Commissioner of SGST having jurisdiction over the applicant.
Application for Advance Ruling
Any registered person desirous of taking AR shall apply on Form No. ARA01 with deposit of fees of ₹ 5000.
Question on which advance ruling may be taken pertains to ;
(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) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
Application can not be admitted which pertains to any question w
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m the date of order of AAR communicated to officer or applicant. This may be further extended to 30 days on submission of proper reasoning. The Appeal shall be filed on Form-ARA-02 with deposit of Fees of ₹ 10000. The same appeal if filed by the concerned officer it shall be on Form-ARA-03 with deposit of NIL fees.
The order of the AAAR shall be made within 90 days from the date of filing the appeal.
Where members of the Appellate Authority differ on any point of the appeal , it shall be deemed that no advance ruling can be issued in respect of that question under appeal.
Rectification of advance ruling
Both the authority can amend its order if there is error apparent on the face of the record within period of six months from the date of its order.
Provided that no order of enhancing the liability or reducing the ITC can be passed unless the opportunity to heard to applicant or appellant has been provided.
Applicability of Advance Ruling
Advance Ruling pronounced by AAR or
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r is practicing chartered accountant in Gurugram [ Haryana] and having practice in Goods and Service Tax . He can be reached at sanjeev.singhal@skaca.in. WWW. skaca.in
Reply By KASTURI SETHI as =
Sir,
Most of the applicants in Punjab and Haryana have deposited ₹ 10,000/- ( 5000+ 5000 against CGST and SGST) as application fee for Advance Ruling. Para No. 11 of Board's Flyer No.37 dated 1.1.18 also says so.
Relevant extract
Form and Manner of Application to the Authority for Advance Ruling
On the basis of this ID, the applicant can make the payment of the fee of ₹ 5,000/- each under the CGST and the respective SGST Act. The applicant is then required to download and take a print of the challan and file the application with the Authority for Advance Ruling.
Will you please clear the doubt what is correct fee for fling application with Advance Ruling Authority ?
Thanks & Regards,
K.L.SETHI
Dated: 8-8-2018
Reply By Pavan Mahulkar as =
Not every applicant sho
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M/s Manohar Engineering Versus CCGST, C&E, Jabalpur
Service Tax
2018 (8) TMI 1402 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 8-8-2018
S.T. Appeal No.51181 of 2018-SM – A/52750/2018-SM[BR]
Service Tax
Sh. Ashok Jindal, Member (Judicial)
Ms. Asmita Nayak, Advocate for the appellant
Sh. P.R. Gupta, AR for the Respondent
ORDER
Per: Ashok Jindal:
The appellant is in appeal against the impugned order seeking waiver of penalty imposed on them under Sections 77 and 78 of the Finance Act, 1994.
2. Brief facts of the case are that an intelligence was gathered against the appellant that they were not paying service tax, therefore an investigation was conducted and it was pointed out to the appellant that they
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ions.
4. In this case, the appellant is disputing only imposition of penalties imposed on them by way of impugned order. As per provisions of Section 73(3) of the Act, if assessee pays whole of the service tax alongwith interest on pointing out and intimated to the Department, in that circumstances, the show cause notice is not required to be issued. Admittedly, in the case in hand, the appellant paid the amount of service tax in dispute alongwith interest and intimated to the department. In that circumstances, if show cause notice was required to be issued then it is to be issued within a period of one year from the date when the appellant intimated to the Department, but same has been issued after expiry of the normal period of limitatio
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Time period for furnishing details in FORM GSTR-1 for registered persons having aggregate turnover of upto 1.5 crore rupees.
F.1-11(91)-TAX/GST/2018 Dated:- 8-8-2018 Tripura SGST
GST – States
Tripura SGST
Tripura SGST
GOVERNMENT OF TRIPURA
FINANCE DEPARTMENT
(TAXES & EXCISE)
Dated, Agartala, the 8th August, 2018
NO.F.1-11(91)-TAX/GST/2018
NOTIFICATION
In exercise of the powers conferred by section 148 of Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) (hereafter in this notification referred to as the said Act), the State Government, on the recommendations of the Council, hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year
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To exempt payment of tax(RCM) under section 9(4) of the MGST Act, 2017 till 30.09.2019.
22/2018-State Tax (Rate) Dated:- 8-8-2018 Maharashtra SGST
GST – States
Maharashtra SGST
Maharashtra SGST
FINANCE DEPARTMENT
Madam Cama Marg, Hutatma Rajguru Chowk, Mantralaya,
Mumbai 400 032, dated the 8th August 2018.
NOTIFICATION
Notification No. 22/2018-State Tax (Rate)
MAHARASHTRA GOODS AND SERVICES TAX ACT, 2017.
No. GST-1018/C.R.29/Taxation-1.-In exercise of the powers conferred by sub-section (1) of section 11 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), the Government of Maharashtra, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, he
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The Maharashtra Goods and Services Tax (Seventh Amendment) Rules, 2018.
29/2018-State Tax Dated:- 8-8-2018 Maharashtra SGST
GST – States
Maharashtra SGST
Maharashtra SGST
FINANCE DEPARTMENT
Madam Cama Marg, Hutatma Rajguru Chowk, Mantralaya,
Mumbai 400 032, dated the 8th August 2018.
NOTIFICATION
Notification No. 29/2018-State Tax
No. GST-1018/C.R.72/Taxation-1.In exercise of the powers conferred by section 164 of the Maharashtra Goods and Services Tax Act, 2017 (Mah. XLIII of 2017), the Maharashtra Government hereby makes the following rules further to amend the Maharashtra Goods and Services Tax Rules, 2017, namely :
1. (1) These rules may be called the Maharashtra Goods and Services Tax (Seventh Amendment) Rules, 201
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General of Anti-profiteering” shall be substituted;
(v) in rule 133, for the words “Director General of Safeguards”, wherever they occur, the words “Director General of Anti-profiteering” shall be substituted.
By order and in the name of the Governor of Maharashtra,
J. V. DIPTE ,
Deputy Secretary to Government.
Note : The principal rules were published in the Maharashtra Government Gazette, Extraordinary No. 170, Part IV-B, dated 22nd June 2017, vide notification No. MGST-1017/C.R. 90/Taxation-1, dated 22nd June 2017 and were last amended vide Finance Department Notification No. GST-1018/C.R.57/Taxation-1, dated 29th June, 2018 [Notification No. 28/2018-State Tax] which was published in the Maharashtra Government Gazette, Extraordinar
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Notification regarding filing of Return in FORM GSTR 3B for each of the months from July, 2018 to March, 2019
F.1-11 (91)-TAX/GST/2018 Dated:- 8-8-2018 Tripura SGST
GST – States
Tripura SGST
Tripura SGST
GOVERNMENT OF TRIPURA
FINANCE DEPARTMENT
(TAXES & EXCISE)
NO.F.1-11 (91)-TAX/GST/2018
Dated, Agartala, the 8th August, 2018
NOTIFICATION
In exercise of the powers conferred by section 168 of the Tripura State Goods and Services Tax Act, 2017 (Tripura Act No. 9 of 2017) (hereafter in this notification to as the said Act) read with sub-rule (5) of rule 61 of the Tripura State Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the Commissioner, on the recommendations of the C
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Escorts Ltd Versus CGST C.C & C. E-Dehradun
Central Excise
2018 (8) TMI 478 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 8-8-2018
Appeal No. E/51664/2018-SMC – Final Order No. 52721/2018
Central Excise
HON'BLE MR. AJAY SHARMA, MEMBER (JUDICIAL)
For the Appellant : Mr. R.K. Hasija, Advocate.
For the Respondent : Mr. H.S. Saini, DR.
ORDER
Per : Ajay Sharma
1. The instant appeal has been filed from the impugned order dated 16/03/2018 passed by the Commissioner (Appeals), Dehradun.
2. The issue involved in this appeal is whether the appellants are liable to pay interest and penalty on the wrongly availed Cenvat Credit amounting to Rs. 94,208/- despite the fact that much before the issuance of show cause notice they have reversed the same. This issue pertains to wrong availment of Cenvat Credit of Rs. 94,208/- on the basis of bill of entry dated 12/12/2013 which was in favour of the appellant's sister concern situated at the same address as that of the a
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e Department and perused the record. The Ld. Counsel for the appellants submitted that the bill of entry in question was lended in there unit inadvertently and the Cenvat Credit on the same was taken unmindfully by the junior clerical staff entrusted to maintain the records in routine manner and no malafide or fraudulent intention can be attributed on the part of the appellants. He further submitted that there was no suppression, misstatement, collusion, fraud with intention to evade payment, and that had there been any malafide intention or otherwise then the appellants would not have paid the amount even before the issuance of show cause notice. He further submitted that although mistake is there but the same is not deliberate or willful to cause a loss to the Government Exchequer. He also submitted that the appellants had sufficient balance of Cenvat Credit in their account throughout the period of wrong availment and they did not utilised the wrongly availed credit.
5. The Ld. AR
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reversed it before utilization, therefore, it amounts to non-taking of credit. I do not find that there was any intention on the part of the appellants in defrauding the Revenue in as much as the appellants have sufficient balance in their Cenvat Account for discharging the duty liability. Similar issue was raised before this Tribunal in the matter of E/51040/2017 titled as M/s Rallison Electricals Ltd. V/s CCE, Alwar, wherein this Tribunal vide Final Order No. 56815/2017 dated 30/08/2017 while relying upon the decision of the Hon'ble High Court of Karnataka at Bangalore in the matter of CCE & ST, Bangalore V/s Bill Forge Pvt. Ltd. 2012 (26) STR 204 (kar.) has held that since the appellants therein was having sufficient balance in their Cenvat Credit account, therefore, the appellant is not liable to pay the interest. The relevant extract of the said order is as under:-
“5. Heard the parties. Considered the submissions.
Issue of Interest
It is a fact on record that the appellan
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Fulfilling of short supply
Query (Issue) Started By: – Ashok Puri Dated:- 7-8-2018 Last Reply Date:- 11-8-2018 Goods and Services Tax – GST
Got 3 Replies
GST
If a machinery is despatched by a GST registered dealer to a GST registered end user and some parts are short due to non availability during despatch of the machinery but are included in cost of machinery and GST collected on the machine and parts despatched later what procedure needs to be followed
Reply By Ganeshan Kalyani:
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B2B INVOICE AMENDMENT
Query (Issue) Started By: – KIRANKUMAR N.G Dated:- 7-8-2018 Last Reply Date:- 8-8-2018 Goods and Services Tax – GST
Got 3 Replies
GST
DEAR SIR,
I WAS FILED GSTR1. AND ONE INVOICE WAS UPLOAD WITH DIFFERENT GST NUMBER, PLS HELP HOW TO AMEND OR EDIT THE INVOICE, PLS REPLY ME
Reply By Ganeshan Kalyani:
The Reply:
The wrong recipient has to reject the invoice in GSTR2A. And it will appear in you GSTR 1A where you can correct. But in my view these are not function
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FOR INPUT TAX CREDIT FOR TRAVEL AGENT
Query (Issue) Started By: – ASHUTOSH GUPTA Dated:- 7-8-2018 Last Reply Date:- 7-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear sir m a travel agent hu my work is hotel booking same state and other state se kar the hu to muje kis kis per input credit mil sakta h please guide me
Reply By ANITA BHADRA:
The Reply:
You are a travel agent and book hotel in same state and other state .
You must be raising bill to your client /hotel for
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Special Procedure for Taxpayers with Provisional IDs to Complete Migration by August 31, 2018.
Notifications
GST
Special procedure for completing migration of taxpayers who received provision
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GST on Manpower bill
Query (Issue) Started By: – Bhaskar Rao Dated:- 7-8-2018 Last Reply Date:- 13-5-2019 Goods and Services Tax – GST
Got 9 Replies
GST
Dear Sir
Whether Manpower service provider has to Charge GST on Total bill amount of salary or only on service charge amount.
Thanks and regards
Bhaskar Rao
Reply By Ganeshan Kalyani:
The Reply:
As per Section 15 of the CGST Act, tax is payavpa on the total value of supply which shall include the expense which the supplier of service is liable to pay in course or providing such service. Hence, the amount of salary paid by the manpower supplier to his labour shall also attract gst.
Reply By Ganeshan Kalyani:
The Reply:
The manpower supplier of service shall include the sa
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Input Tax Credit Denial on Transport Services provided to Workers.
By: – Praveen Nair
Goods and Services Tax – GST
Dated:- 7-8-2018
CESTAT, Hyderabad Bench has denied claiming Input Tax Credit on the Bus Services used for Transportation of Workers from Home to the Factory / Office:
The contention of the Tribunal for rejection was;
Once the workers come into the factory their services are used in relation to the manufacture of final products. But bringing workers to the factory
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GIST OF RECENT PRONOUNCEMENTS ON GST (PART-XVI)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 7-8-2018
Goods and Services Tax (GST), introduced from July 1, 2017 is more than thirteen 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 is however, making regular changes to fix the anomalies and hardships faced by taxpayers. 29 meetings of GST Council have been held till 4th August, 2018.
Taxpayers have already challenged various provisions of GST laws and rules framed thereunder with about 200 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. Recently, CBIC has issued directions to be officers to defend the writs.
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138 before transport commenced. If they do prove that aspect, they would be absolved of the liability; otherwise, they would definitely be required to satisfy tax and penalty as available under section 129.
* In Gati Kintetsu Express (P.) Ltd. v. Commissioner,Commercial Tax of MP 2018 (7) TMI 1097 – MADHYA PRADESH, HIGH COURT , where the assessee was a Private Limited company engaged in the business of multi model transportation of shipments, supply chain management and other allied services such as door to door pick-up and delivery of the shipments etc. and was transporting goods from Pune to Noida via different places but had not filed Part-B of national e-way bill giving all details including vehicle number before goods were loaded in vehicle, it was held that since the distance to be travelled was not short but more than 1200-1300 kilometers it was mandatory for petitioner to file said Part-B, Authority had rightly imposed huge penalty of ₹ 19,52,264 under section 122 comp
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r Officer of the Uttar Pradesh Goods and Services Tax Department had seized the goods (stock transfer) of the assessee under transport from Chennai to Dehradun as well as the vehicle on the plea that the good were not accompanied with the Transit Declaration Form [TDF]. He also imposed the penalty upon the assessee.
The petitioner filed writ to get the release of goods. It was observed that the goods have been detained, seized and penalty has been imposed merely because of TDF was absent and the Proper Officer was himself not satisfied as to the intention to evade tax being present in the facts of the case. There was nothing to dispute the claim made by the assessee that it was effecting the stock transfer of goods from Chennai to Dehradun and therefore, the goods were only passing through the State of V.P. There was no allegation or intention on the part of the assessee to unload the goods with the State of V.P. It was therefore, held that since there was no allegation on intention o
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FILING OF GSTR -6
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 7-8-2018
Input Service Distributor
Section 2(61) of the Central Goods and Services Tax Act, 2017 ('Act' for short) defines the expression 'Input Service Distributor' as an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office.
Manner of distribution of input tax credit
Section 20 of the Act provides the procedure for the manner of distribution of input tax credit by the Input Service Distributor. The said Act provides that-
* The Input Service Distributor shall distribute the credit of central tax as central tax
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period, to the aggregate of the turnover of all such recipients to whom such input service is attributable and which are operational in the current year, during the said relevant period;
* the credit of tax paid on input services attributable to all recipients of credit shall be distributed amongst such recipients and such distribution shall be pro rata on the basis of the turnover in a State or turnover in a Union territory of such recipient, during the relevant period, to the aggregate of the turnover of all recipients and which are operational in the current year, during the said relevant period.
Return by Input Service Distributor
Rule 65 of Central Goods and Services Tax Rules, 2017 provides that every Input Service Distributor shall, on the basis of details contained in FORM GSTR-6A, and where required, after adding, correcting or deleting the details, furnish electronically the return in FORM GSTR 6, containing the details of tax invoices on which credit has been received a
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N;
* Legal name of the registered person;
* Trade name, if any;
* Input tax credit received for distribution-
* GSTIN of the supplier;
* Invoice details such as invoice number, date and value;
* Rate;
* Taxable value;
* Amount of tax(IGST, CGST,SGST/UTGST, CESS);
* Debit/Credit note (including amendments thereof) received during the current tax period-
* Details of original document-
* GSTIN of the supplier;
* No.
* Date
* Revised details of documents or details of Debit/Credit note-
* GSTIN of supplier;
* Number;
* Date;
* Value;
* Rate;
* Taxable value;
* Amount of tax (IGST, SGST/UTGST, CGST, CESS)
Form GSTR – 6
The Input Service Tax Distributor is to fill up the details in this Form. The details are as follows-
* Year and month of return;
* GSTIN of Input Service Distributor;
* Legal name;
* Trade name, if any;
* Input tax credit received for distribution-
* GSTIN of supplier;
* Invoice details (invoice number, date and valu
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was incorrect;
* Debit notes/credit notes received (original);
* Debit notes/credit notes (amendments)
* Input tax credit mismatches and reclaims to be distributed in the tax period-
* Input tax credit mismatch;
* Input tax credit reclaimed on rectification of mismatch
* Distribution of input tax credit reported in Tables (Amendments in information furnished in earlier returns and Input tax credit mismatches and reclaims to be distributed in the tax period) (plus/minus)-
* Distribution of the amount of eligible ITC;
* Distribution of the amount of ineligible ITC.
* Redistribution of ITC distributed to a wrong recipient (plus/minus)
* Distribution of the amount of eligible ITC;
* Distribution of the amount of ineligible ITC.
* Late fee;
* Refund claimed from electronic cash ledger
* Tax details for refund;
* Bank details
* Verification by the Authorized signatory.
Points to be considered while filing Form GSTR – 6
* ISD details will flow to Part B of G
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due date for the month of July 2017 was extended to 08.09.2017 and for the month of August 2017 was extended to 23.09.2017;
* Notification No. 43/2017-Central Tax, dated 13.10.2017 – the due date for filing GSTR 6 was extended to 15.11.2017 for the month July 2017 to September 2017;
* Notification No. 63/2017-Central Tax, dated 15.11.2017 the due date for the month of July 2017 was extended to 31.12.2017.It was indicated that the due date for the following months would be notified later;
* Notification No. 8/2018-Central Tax, dated 23.01.2018 the due date for the months from July 2017 to February 2018 was extended to 31.03.2018;
* Notification No. 19/2018-Central Tax, dated 28.03.2018, the due date for the months from July 2017 to April 2018 was extended to 31.05.2018;
* Notification No. 25/2018-Central Tax, dated 31.05.2018, the due date for the months from July 2017 to June 2018 was extended to 31.07.2018;
* Notification No. 30/2018-Central Tax, dated 30.07.2018, the due
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Appellate Authority Modifies Initial Ruling on “SIKA Block Joining Mortar” Classification Under Tariff Item 3824.
Case-Laws
GST
Classification of product, “SIKA Block Joining Mortar” – 'S
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Appellate Authority Confirms Appellant as Intermediary for University Course Promotion under IGST Act Section 2(13.
Case-Laws
GST
Export of services or not? – The Appellant promotes the courses of the University, finds suitable prospective students to undertake the courses, and, in accordance with University procedures and requirements, recruits and assists in the recruitment of suitable students, and hence, the Appellant is to be considered as an intermediary in terms of Section 2(13)
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Appellate Authority for Advance Ruling: UPS with external battery not a composite supply under GST due to independent use.
Case-Laws
GST
Composite Supply/ Mixed Supply – UPS supplied with external storage battery – naturally bundled goods – The storage battery has multiple uses and can be put to different uses and when supplied separately with static converter (UPS) it cannot be considered as a composite supply or a naturally bundled supply. – Order of AAR confirmed by the Appellate AAR
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M/s Lloyd Insulation (I) Ltd. Versus CGST & CE, Ujjain
Central Excise
2019 (1) TMI 899 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 7-8-2018
Appeal No. E/51477/2018-DB – Final Order No. 53489/2018
Central Excise
Mr. Anil Choudhary, Member (Judicial) And Mr. Bijay Kumar, Member (Technical)
Shri Pachanadhan, Advocate, Shri C.L. Dangi, Advocate – for the appellant
Ms. Tamana Alam, D.R. – for the respondent
ORDER
Per Bijay Kumar:
Being aggrieved with the impugned order, the Order-in-Appeal No. IND-EXCUS-000-APP-611-17-18 dated 15.2.2018, the appellant has filed the present appeal. In the impugned order the ld. Commissioner (Appeals) has modified the order passed by the original adjudicating authority to the extent that penalty imposed was reduced to 50% under the provisions of Section 11AC(1)(c) of the Central Excise Act, 1994 (hereinafter referred to as 'Act') with effect from 18.4.2011.
2. Briefly stated, the facts of the case are that the appell
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Appeals) has passed the order modifying the order passed by the primary adjudicating authority.
3. Ld. Advocate on behalf of the appellant submits that the ld. Commissioner (Appeals) has erred while passing the impugned order on the ground that he has not followed the departmental instruction while confirming the demand. The departmental instructions are binding on the departmental authority, for which reliance was placed on CCE Vs. Dhiren Chemicals – 2002 (139) ELT 3 (SC). The department vide circular clarified the issue regarding inclusion of freight charge.
4. It was also submitted by the ld. Advocate that the appellant were selling their products in following ways:
(a) The finished goods are directly sent to customers and transportation charges incurred are borne by the customers themselves. In such case the transportation charges are shown separately in the invoice and the place of removal of the goods were factory gate and, therefore, no Central Excise duty on the transportati
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e. However, audit proposed in such cases that the transportation charges should be added in the assessable value and duty should accordingly be discharged which are not in accordance with Rule 5 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000.
(c) In some of the cases in absence of order from customers the goods were sent to the depot for further sales. In such cases care was taken that the price of the goods remained the same or higher than the price which were for the goods sold at the factory gate. It is the version of the department that the appellant had contravened the provisions of Rule 5 and Rule 7 of Central Excise Valuation Rule, 2000 read with Section 4 of the Act. Inasmuch as the appellant while selling their goods through depot, have shown the freight amount separately and recovered the same from the depot but failed to include the same for the purpose of discharge of Central Excise duty. The period involved is 2011-2012 to 2014-2015 fo
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ppellant in respect of the goods sold at factory gate did not confirm the provisions of Rule 5 of Central Excise Valuation Rules, 2000 and relied upon the following case law :
(i) CCE Vs. Prakash Cables – 2013 (295) ELT 745;
(ii) Kunal Enterprises Vs. CCE – 2013 (294) ELT 613;
(iii) CCE Vs. PRS Rolling Mills Pvt. Ltd. – 2012 (281) ELT 560;
(iv) CCE Vs. Star Oxochem Pvt. Ltd. – 2013 (289) ELT 165.
(e) Further, the reliance was placed on the CBEC Circular No. 988/12/2014-CX. dated 20.10.2014 (supra) wherein para 5 it is clarified as under :
“It may be noted that there are very well laid rules regarding the time when property in goods is transferred from the buyer to the seller in the Sale of Goods Act, 1930 which has been referred at paragraph 17 of the Associated Strips case reproduced below for ease of reference:
“17. Now we are to consider the facts of the present case as to find out when did the transfer of possession of the goods to the buyer occur or when did the property
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that description and in a deliverable state are unconditionally appropriated to the contract, either by the seller with the assent of the buyer or by the buyer with the assent of the seller, the property in the goods thereupon passes to the buyer. Such assent may be expressed or implied and may be given either before or after the appropriation is made. Sub-section (2) of Section 23 further provides that where, in pursuance of the contract, the seller delivers the goods to the buyer or to a carrier or other bailee (whether named by the buyer or not) for the purposes of transmission to the buyer, and does not reserve the right of disposal, he is deemed to have unconditionally appropriated the goods to the contract.”
(f) It was also contested by the ld. Commissioner finding 'that the contention of the appellant regarding confirmation of duty of Rs. 1,44,998/-, I find that the appellant have not put forth the copy of purchase order and invoices elaboration the facts that how the goods ar
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the reliance was placed on the judgement delivered by Hon'ble Supreme Court in case of M/s Pragati Concrete Products (P) Ltd. Vs. CCE – 2005 (183) ELT 487 (Tri.-Bang.). The decision of the Tribunal was challenged by the department before the Supreme Court and Hon'ble Supreme Court dismiss the departmental appeal as reported 2015 (322) ELT 819 (SC). It was also submitted that in the case of Arviva Industries (I) Ltd. Vs. CCE – 2005 (179) ELT 506 (Tri.-Mum.) that if the records of the appellant have been audited periodically and no objection has been raised by the audit officer regarding the method of valuation adopted, subsequently suppression of fact cannot be alleged. As regular audits of the unit were being conducted in terms of guideline fixed by the CBEC the extended period is not applicable in this case.
5. The ld. AR on behalf of the Revenue, supports the impugned order and submits that the Commissioner (Appeals) has given detailed order regarding the inclusion of freight amoun
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ailable and freight is borned separately by the customer in view of the decision cited supra, the same is not includible in the assessable value. It is also on record that the demand has been raised as per the audit objection and the entire activity of appellant was known to the department. Based on the decision in following cases, we find that; M/s Pragati Concrete Products (P) Ltd. (supra) and Arviva Industries (I) Ltd. (supra), the extended period invocable in this case. The same view has also expressed in the cases of CCE Vs. Tigrania Metal & Steel Industries – 2001 (132) ELT 103 (Tri.-Del.), Collector of C. Ex. Vs. Cadila Laboratories P Ltd. – 2000 (124) ELT 411 (Tribunal), Sunshine Tube (Pvt.) Ltd. Vs. CCE – 2001 (136) ELT 231 (Tri.-Bang.) and Jaishri Engineering Co. (Pvt.) Ltd. Vs. Collector of C. Ex. – 1989 (39) ELT 449 (Tri.). We are, therefore, of the considered opinion that in this case the entire demand is also time barred as the extended period is not available to the depa
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In Re: M/s. Maheshwari Stone Supplying Company,
GST
2018 (12) TMI 1274 – APPELLATE AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – 2019 (20) G. S. T. L. 408 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULINGS, HYDERABAD TELANGANA – AAAR
Dated:- 7-8-2018
AAAR/01/2018 (A. R. ) A. R. Appeal -No. AAAR/01/2018
GST
SHRI V. ANIL KUMAR AND BANKEY SHR BEHARI AGRAWAL MEMBER
A.R. Appeal -No. AAAR/01/2018
Dated: 07th August, 2018
ORDER-IN-APPEAL NO. AAAR/01/2018 (A.R.)
(Passed by Telangana State Appellate Authority for Advance Ruling under Section 101 (1) of the Telangana Goods and Services Tax Act, 2017)
Preamble
1. In terms of Section 102 of the Telangana Goods & Services Tax Act, 2017 (“the Act”, in short), this Order may be amended by the Appellate authority so as to rectify any error apparent on the face of the record, if such error is noticed by the Appellate authority on its own accord, or is brought to its notice by the concerned officer, the juri
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f Section 101 has been obtained by the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made.
* * * * * *
1. The subject appeal has been filed under Section 100(1) of the Telangana Goods and Services Tax Act, 201 7 (hereinafter referred to as “TGST Act, 2017” or “the Act”, in short) by M/s. Maheshwari Stone Supplying Company, Tandoor, Vikarabad District having GSTIN 36ABNPS1 863M1ZX (hereinafter referred to as M/s. MSSC /the appellant). The appellant had earlier filed an application under Section 97 (1) of the Act before the Telangana State Authority for Advance Ruling (“TSAAR” or “Authority” or “lower authority”, in short), seeking an Advance Ruling with regard to classification of goods viz., “Polished / Processed limestone slabs”. The said applicat
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order by appellant, the appeal is found to be filed within prescribed time,
II. Brief Facts:
3.1. The appellant had initially filed before the TSAAR an application for Advance Ruling, in the prescribed Form GST ARA-01, extracts of which are reproduced hereunder:
“Nature of activity:
“12(1)1: Description in brief: We are a SSI unit with an annual TO of under 1.5 Cr. Our main activities include; to bring rough limestone slabs (a minor mineral) which are by nature uneven in thickness ranging from 15 to 35 mm (or so), to our processing unit and POLISH it's one of the suitable surface with simple table polish machine and further cut it to square or rectangle shape on a table cutting machine. Out of two processes, we also opt for only one process called CUT on these stones. Some other kind of simple processes like CALIBRATION, TUMBLING etc. are also undertaken. But a stone SLAB generally do not need more than two processes before ready for selling into the market. After any kind of the
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re” as mentioned at the start of column of 5% ?
15.3 Statement of relevant facts having a bearing on the questions raised:
“Very recently The GST Council in its GUWAHATI meeting held on 10/11/2017 had reduced the GST on “Marble/Granite other than blocks” from 28% to 18% effective from 15/11/2017. (Kindly see Notification no. 41/2017 dated 14/11/2017 issued to this effect). We draw your kind attention to the description of commodity in particular column mentioned there under, and without writing any adjectives related to any kind of processes such as POLISH, CUT etc. it is still quite evident that they have not been taken out of Chapter 25. Please refer to HSN Code mentioned for Marble/Granite in the said notification of Dated 15/11/2017 whose first four digits are 2515/2516. It does clearly mean that even without mentioning of any kind of processes such as CUT or POLISH etc. it can be presumed that all kinds of processing activities done on these stones were allowed in the Chapter 25
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are allowed under HSN Code 2515/2516 in written form in the description column but our process is POLISH & CUT and to clarify this doubt the present Advance ruling is filed.
There are two kinds of stones available in limestone category. One is BLOCK and the other is SLAB. SAWN is a process performed on Block to derive uniform thickness TILES which are called a CREAM like material and our SSI unit don't do that process and sawn on blocks is mostly practiced in KOTA region of Rajasthan and also in Marble/Granite Industry worldwide.
Whereas surface POLISH is a process which is performed on directly brought rough stone SLABs (minor mineral) of uneven thickness and it is called BUTTERMILK like material which we usually undertake in our small scale industries. The expenses incurred on a sawn TILE is higher than combined processes of POLISH & CUT done on a SLAB of same size. In economic terms also any of the two processes combined together cannot match a single process of SAWN which is allo
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s which have been written clearly in description under HSN Code 2515/2516 and POLISH had not been written which is also a kind of process and the combined effect of CUT+POLISH or any two kinds of processes are less complex and less expensive than a single process of SAWN.
Hardly not even a single processing unit engaged in LIMESTONE SLABs in our region was falling under the jurisdiction of Excise Duty (ED). Hon'ble SC while dealing with many appeals and cases upheld that POLISH & CUTTING done on a Stone slab cannot be equated to manufacturing, hence such stone slabs are not liable to ED. Under VAT regime our “Polished limestone slabs” were charged 5% of Tax. Hence when no ED was charged and VAT was only 5%, then our commodity shall definitely fall in Chapter 25 only, whose GST is also 5% for Limestone category, it is also noteworthy for the competent authority to note that ROYALTY is a kind of Tax as decided by majority of Judges of SC so far and the matter is still sub-judice before
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the competent authority by bringing small pieces of sample stones so that it will become easier for the authority to decide the HSN Code of our commodity on merits. Further clarifications if any will be submitted at the time of arguments.
3.2. The appellant filed additional submissions before the TSAAR vide a letter dated 05-01-201 8, as follows:
“Our further humble submissions are mentioned herein below substantiating that Processed/Polished Limestone slabs cannot be taken out of Chapter 25:
1. A downloaded list (four in no.s) of Rough as well as Processed Kota, Marble and Granite stones exported to different countries from India under Chapter & HSN Code: 25 is enclosed here with as ANNEXURE-A1 as further proof substantiating that polish stone slabs have not been taken out of Chapter 25.
2. A bunch of newspaper clippings clearly stating that how GST/FITMENT Committee, of late, realized its mistake and expressing its concern having wrongly taken into consideration of EXCISE DUTY
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s, surface polish is the only process done that too with much inferiority and simplicity and very less expensive in comparison to Marble/Granite's chain of processing.
4. GST Council says “GST brings good things of great joy for small tax players.” And literally we are small tax players and our good things of great joy can be retained; only when our commodity do not be taken out of Chapter 25 or be assured from competent authorities that it falls in 5% column of GST in light of all the submissions made by us here in this advance ruling case.
5. Our Turn Over is below 1.5 Cr, even if it is in between 1.5 to 5 Cr., then also it is quite enough for us to use only two digit HSN Code as per rules. And Chapter 251s (HSN Code 25) title is most appropriate of all for our polish stone which is mentioning STONE in its title. Whereas Chapter 68's title is ARTICLES OF STONE. Article is defined as “A part or segment of something joined to other parts, or, in combination, forming a structured se
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hat other products coming under 6802 can have a place in Chapter 25. (See ANNEXURE-A3).
9. Tandur rough stones are stones of less value in the market and the marketable quality of these stones is enhanced by polishing and cutting. But the substance of the material is not altered. The stone slab is made more presentable and attractive for the benefit of the end users of low cost housing needs and it cannot be said that the activity is a manufacturing activity. ”
10. In the Hyderabad meeting of GST Council held on 9/09/2017, we saw that much complex processes like “Stone inlay work” (HSN Code 68), have been brought down to 12% from 28%, then POLISH process done on a directly brought rough slab is very less complex but much easy, in comparison to above mentioned. In fact Polish stone slab is a kind of Raw material out of many used for “Stone inlay work”. In this way also it is quite appropriate to keep polished limestone slabs in Chapter 25 . . .”
3.3. The appellant was heard in pers
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ons are attached here with and important matter marked as rounded with ink so that both of you can understand the essence before coming to conclusion. Based on this single point if this Hon'ble Advance Ruling authority can give the ruling that “Polish stones in slab” form are to be classified under HSN Code 25 only then there is nothing wrong in it and nobody can question also.”
3.4. Vide a further letter dated 1-2-2018, the appellant had submitted as follows:
“This is to inform you that in Note 1 of Chapter 25, the word LEVIGATED is allowed on mineral products and I have gone through the Oxford dictionary meaning of LEVIGATE which had been taken from Latin word LEVIGAT, and the literal meaning of the same is “made smooth, polished”. In this context also it is becoming so clear that the process of POLISH is allowed on surface of rough limestone slabs in Chapter 25 itself@ GST 5%.
secondly there allowed many processes in Chapter 25 under GST 5%, such as CRUSHING, POWDERING etc. on ha
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o in Marble/Granite Industry worldwide._
b) That surface POLISH is a process which is performed on directly brought rough stone SLABs (minor mineral) of uneven thickness and it is called BUTTERMILK like material which they usually undertake in their small scale industries. The expenses incurred on a sawn TILE is higher than combined processes of POLISH & CUT done on a SLAB of same size. In economic terms also any of the two processes combined together cannot match a single process of SAWN which is allowed in written form under HSN Code 2516. Selling price wise and quality wise also there is a huge difference in these both varieties of stones and their cheap polish slabs are mostly used in low budget housing needs. These cheap quality Polish stones are also a last resort for a customer to select from.
c) Processed or Mirror Polished Marble/Granite SLABs have also not been taken out of Chapter 25 which is evident from the Notification No. 41/2017 issued after GST Council's Guwahati m
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VAT regime their “Polished limestone slabs” were charged 5% of Tax. Hence, when no ED was charged and VAT was only 5%, then their commodity shall definitely fall in Chapter 25 only, whose GST is also 5% for Limestone category it is also noteworthy for the competent authority to note that ROYALTY is a kind of Tax as decided by majority of Judges of SC so far and the matter is still sub-judice before a larger bench now. And their commodity in its raw form suffers additional juicy fiscal burden in the form of ROYALTY at the hands of Mining authorities of State Government. The process of expensive and luxurious category Marble/Granite is very complex in comparison to their Polish slabs; to such an extent that processing expenses incurred only on SAWN process of Granite/Marble is 2-4 times higher than the entire material cost of Processed Limestone slab itself of same surface area.
e) Hence, finally it was submitted that at any angle it is appropriate that their commodity called “Polished
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stone slabs” are classifiable under chapter 25 of the GST tariff, we would like to draw attention to the Explanatory notes to the Harmonized Commodity Description and coding system:
* Section V of the HSN deals with classification of Mineral products and in Chapter 25 classification of Salt; sulphur; earths and Stone; plastering materials, lime and cement are dealt with.
* As per the chapter notes to chapter 25, the headings of this chapter covers mineral products only in the crude state. Minerals which have been otherwise processed (e.g., made up into articles by shaping, carving etc,) generally fall in latter chapters (for example, chapter 28 or 68).
7. The heading 25.15 covers Marble, Travertine, Ecaussine and other Calcareous Monumental or Building stone of an apparent specific gravity of 2.5 or more and Alabaster whether or not roughly trimmed or merely cut and is restricted to the stones specified, presented in the mass or roughly trimmed or merely cut, by sawing or otherwis
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d after quarrying, to form blocks or slabs, still having some rough, uneven surfaces. This working involves removing superfluous protuberances by means of hammer or chisel type tools.
> This subheading does not cover blocks or slabs which have been cut to a rectangular (including square) shape.
9. Similarly, the subheading explanatory notes for subheading 2515.12 are given below:
> To fall in this subheading, the blocks and slabs which have been merely cut by sawing must bear discernible traces of the sawing (by wire strand or other saws) on their surfaces.
10. The heading 25.16 covers Granite, Porphyry, Basalt, sandstone and other monumental or Building stones, whether or not roughly trimmed or merely cut, by sawing or otherwise into blocks or slabs
> The stones of this heading may be shaped or processed in the same ways as the stones of heading 25.15 (including building limestone or Portland stone) and that stones in shapes identifiable as road or paving setts, flagstones or
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tones which have undergone the process of polishing are not classifiable under chapter 25, we would like to draw our attention to the Explanatory notes to heading 68.02 which were reproduced below for ease of reference:
> This heading covers natural monumental or building stone (except slate) which has been worked beyond the stage of the normal quarry products of chapter 25.
> The heading therefore covers stone which has been further processed than mere shaping into blocks, sheets or slabs by splitting, roughly cutting or squaring by sawing(square or rectangular faces).
> The heading thus covers stone in the forms produced by the stone-mason, sculptor, etc., viz:
(A)……..
(B) Stone of any shape (including blocks, slabs or sheets), whether or not in the form of finished articles, which has been bossed (i.e., stone which has been given a “rock faced” finish by smoothing along the edges while leaving rough protuberant faces), dressed with the pick, bushing hammer, or chisel,
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Tariff.
15. The issue has been examined with reference to the provisions of the CGST/TGST Act, 2017 and the Rules made there under and the notifications issued till date; and the Advance Ruling is given as under: –
“Polished/Processed limestone slabs” are correctly classifiable under heading 6802 of the GST Tariff.
The application filed by M/S Maheshwari Stone Supplying Co., Tandur, Vikarabad, is disposed accordingly”.
IV: Appeal filed by the Appellant, Personal Hearing & Further submissions :
5.1. Against the above Advance ruling Order, the appellant filed the present appeal on the following grounds:
“..We have received the copy of order no. 2/2018 of AAR on 17/04/2018 by regd. post which is enclosed here with as ANNEXURE-AAI.
We are a tiny & SSI unit involved in processing of limestone slabs. In any of the processing activity at our unit, a rough stone slab brought as a raw material always remains a stone slab only even after processing and the morphology of slab doesn't ch
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s bunch of ANNEXURE-AA2 along with above statement in opening paragraph of this submission shall be treated as “The facts of the case” under Serial no. 14 of the Appeal form GST ARA-02.
6(15). The Grounds of Appeal under serial no. 15 of the said form are as under:
First of all we are very much confused with Customs tariff Act being taken as the base for interpretation of rules and explanatory notes for classification of goods in domestic market. While in May 2017 it was announced by all the heads of concerned GST that the Rate of ED coupled with VAT had been fixed the rate of a product under GST. Then instead of Customs, the Excise Tariff could have been taken as a base. There is huge a difference in Chapter notes of Customs & Excise for same Chapter, which can change the meaning, definition and interpretation of a product/commodity. Hence it is becoming very difficult for us to digest this fact of contradictory statement.
The AAR had not taken all the submissions made by us int
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erived without bringing a BLOCK to a factory for splitting by subjecting to SAWN or CUT processes which are highly expensive than mere POLISH+SIZING combined together done on our Rough limestone slabs. If the AAR/GST is so particular about WORKED definition to be only interpreted for heading 6802, then why “Marble/Granite other than blocks” which are also WORKED have been given a place in Chapter 25 is our question?
2. The GST council while rolling it out said that they bring “Good things of great joy for small tax players.” Can this AAAR explain us how good things of great joy can be brought for us when our processed stone's Tax rate which was 5% under VAT regime had suddenly been increased to 18% under GST as per AAR's ruling of classification of HSN 6802?
3. We are of the strong view that for domestic trade; norms of Excise tariff act shall be taken into consideration and not that of Customs which deals mainly with IMPORTATION of Goods.
4. If Excise were taken as a base, then
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hus it is once again very clear that whether the raw or finished, our goods is unchanged either in Nature, description, purpose & usage. The AAR had forgotten this aspect to consider before entering into explanatory notes and interpretative rules.
5. It is evident that the AAR had forgotten the fact that Explanatory notes and interpretative rules for classification under Customs have no legal backing but of persuasive value and AAR had taken it as a base to define commodity of Processed limestone slabs which is uncalled for and without merits. Even when a classification of a product takes place under general interpretation rules, the trade parlance of the product must be checked first while classifying the product and not its technological manipulation. Where the product is classified on the very first level, then there is no need to drill down further in the strata below.
Whether RAW or FINISHED our stones are called STONES, BUILDING STONES, FLOORING STONES in the market but not W
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I in nature and throwing a mineral product called processed limestone slab of these SSI units in high bracket of GST in the name of HSN classification will definitely kill this industry in longer run or create a kind of friction amongst the trading community and concerned department or give fake invoice selling mafias to crop up or create an unhealthy competition amongst the industrial fraternity.
8. The AAR instead of relying on legal backing aspects such as describing heading of HSN with Chapter notes etc. had relied upon non-legal backing aspects such as explanatory notes and interpretative rules in deciding the classification of processed limestone slabs which is not correct. First they could have exhausted the legal backing aspects of Chapter notes and if they found any ambiguity then they might have entered into explanatory notes and interpretative rules. Even Chapter note 1 of both customs & excise permitting that mineral in crude form undergone the processes such as mechanica
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ORKED? If GST is saying as in heading 6802, then “MARBLE/GRANITE other than BLOCKS” as mentioned under 18% GST column of Chapter 25 (heading 2515/2516) are also to be called as WORKED only. Because a block without being brought to the factory and splitting it with a highly expensive processing machine, this is not possible. More over a BLOCK is being converted into TILES/SLABs of even thickness.
It does clearly mean that NATURE, DESCRIPTION, PURPOSE & USAGE have completely been changed and even after that it had been retained in Chapter 25 only!!! A block is no longer remained a Block but split into tiles/slabs thus changing its shape and usage.
12. Even there are many Excise judgments for Polished Marble/Granite not taking them out of Chapter 25. One such being in case of Classic Marble Company Pvt. Ltd. Vs Commissioner of Central Excise & ST., Vapi in 2013(11) TMI 384 – CESTAT Ahmedabad delivered in Nov 2013, where it was held that Polished Marble/Granite cannot be taken out of C
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all stone processing industries in Tandur belong to SSI category and even if one or two falls in medium scale, they are of EOU category belonging to politically very strong people who by exporting their processed material derive lot of benefits in the form of various kinds of incentives from Govt. For them or him it doesn't matter whether HSN is 6802 or 2515/2516. In these circumstances the point we want to stress before this AAAR is in entire Telangana region not a single limestone slab processing industry was either falling under excisable goods category nor Govt, earned a single paisa towards ED under VAT regime. When there was no gain in ED and VAT was only 5% even for processed slabs, then on what basis the AAR/GST Council is increasing our Tax base to 18% in the name of heading 6802? It is also not proper to take EOU as a benchmark in fixing the GST rate for our commodities, because there in EOU not only chain of value addition would be very high and more but also lot of transfor
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ind of favour extended to Corporate manufacturers who are financially so sound? The funny thing is MRP for each water bottle under both regimes remained same as Rs. 20/- on lower side and Given the fact of daily sales of water bottles in India, the Govt, is at a net loss of around INR 2000 Crores per annum. And this amount is very smartly entering into the pockets of financially well settled corporate houses, where as no benefits had been passed on to consumers. On the other hand if GST Council fix the rate of Tax on all kinds of low cost processed limestone slabs (produced from RAW slabs only and not to be confused produced from BLOCKS) in India to 5%, then also it may not amount to a decrease of INR 500 Crores per annum, though in actual terms it is not at all a decrease because under VAT regime our finished product was also charged only 5%.
17. From the above statement of point 16, at one end GST Council by reducing a TAX base unnecessarily has bringing loss to itself, where as sm
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e for cheaper quality of Tandur processed stones and tiny & small scale industry owners herein our region are appalled, agitated and frustrated with this arbitrary decision of GST Council which is highly unjustified and either will lead small players to close down their business in longer run or force them to adopt unethical means of moving their material through Bogus bill making mafias since the value of each truck will not exceed Rs. 40,000 (in most cases) which are exempted from e-way bills. So our humble request to the AA/GST Council is not to make honest people to become dishonest.
19. The GST had been rolled out with another great slogan-“One nation, one market and one tax”, whereas ROYALTY is a kind of Tax being paid by a quarry owner on Raw material at pit's mouth and ultimately that burden has to be bear by a RD like us. In this way also at least it is not proper to classify our processed stones under heading 6802 of higher tax bracket rates.
20. In paragraph no. 6 of the
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uts into slabs or tiles and does all other activities thereafter such as POLISHING & SIZING etc. But in our case no such activity is undertaken. Our job is very simple; to bring rough stone slabs and brush polish it's one of the suitable surface, without changing the shape, structure of the stone slab. Therefore the AAR had failed to notify that the reliance placed by them in defining heading 6802 apply only when processes specified therein are undertaken for conversion of blocks into slabs or tiles only.
22. On harmonious reading of Note 1 and Note 6 of Chapter 25 of CET and in view of the opening qualifying phrase Except where the context or Note 4 to this Chapter otherwise requires, used in Note 1 and 'sizing' and 'polishing' being specifically included in Note 6, the inference is obvious that even after the natural stone slabs are subjected to the said processes, the final product would remain classified under Chapter 25; > that, further, the said Chapter Note 1 does not state no
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otes instead of exploring the chapter notes first. Moreover as per the rules of HSN code, we have to mention not more than two digits, which the AAR didn't talk about or considered but explaining us the descriptions of such headings of 4 & 6 digits, which are not relevant to us. When we have raised this issue in our submission, why they have not passed any comment on this is dismaying us a lot!!!
24. Therefore in these circumstances stated herein and submissions made by us, we humbly request this AAAR to declare that our Processed limestone slabs cannot be taken out of Chapter 25. Since we have submitted all possible material which might .helpful this AAAR to declare our goods in Chapter 25, hence there is no need for personal hearing and further AAAR is requested to pass the order on merits of our submissions at the earliest possible.
25. If at all this AAAR finds it difficult to take out processed limestone slabs from Chapter 68 on legally backed grounds unknown to us and better
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2018 of AAR in ANNEXURE-AAI, the AAR while classifying our GOODS had relied upon HCDCS alone but in the above appeal under citation no. 2 the contention of the appellant (who were succeeded with relief) was that HCDCS cannot be relied upon for the classification of GOODS. It is only the Tariff that can be relied upon for the purpose of classification. Therefore the said order of AAR is liable to be quashed and our appeal is to be allowed with relief as asked for.
Therefore it is very clear from the above statement, that even if Customs Tariff taken into consideration though without our admission of the fact (Since Excise Tariff is genuine), then also Chapter note 1 of Chapter 25 is allowing mechanical processes such as CRUSHING, GRINDING / LAVIGATING etc. on minerals in crude form to be retained in said chapter 25 only. Moreover physical processes have also been allowed in said chapter note. If one were to go through the meaning of mechanical process then it states as under:
“Made,
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to get the tiles/slabs which is not possible without atomization of machines which further means no physical force of a labour is required in that process and shape is also changed.
And the AAR had failed to understand this distinguishing factor between a SLAB derived from a natural BLOCK and NATURAL SLAB as brought in by our Unit.
Hence, we humbly request this AAAR to consider these submissions also and declare that our “polished/processed limestone slabs” cannot be taken out of chapter 25″.
5.3. The Appellant was given personal hearing before this Appellate authority on 07-06-2018. Sri Rajgopal Sarda, Proprietor appeared for the hearing and reiterated and explained the various submissions in his appeal. As to the arguments made by the AAR w.r.t. the Explanatory Notes, he mentioned that the AAR was legally not justified in relying upon the Explanatory Notes. He had nothing further to add.
5.4. Vide a letter dated 12/06/2018, the appellant put forth the following further submissio
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3. There is a sequence to be followed for AAR in the following manner:
First connect heading of 2515/2516 with Note 1 of Chapter 25 under Customs Tariff. If still any ambiguity persists in classification of GOODS, then move on to interpretative rules and then explanatory notes. But the AAR have directly gone into second & third option without going into Note 1 of Chapter 25 of Customs Tariff which is actually the first option to explore!!!
4. In note 1 of Chapter 25 under Customs Tariff, It is clearly mentioned that the further processes such as GRINDING, LEVIGATING, MECHANICAL, PHYSICAL done on raw material in crude form are still allowed in same Chapter of 25. Hence our job is nothing but to bring rough limestone slabs which are in crude form and perform polish & cut processes on them which are all nothing but comes under Mechanical processes. Polishing on a rough slab is nothing but grinding only. Even the literal meaning of Levigating is nothing but smooth or polished.
5. Lit
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s such order as it thinks fit, confirming or modifying the ruling appealed against.
7. We now proceed to record our discussions and findings.
8.1. At the outset, it is observed that in the Grounds of Appeal (as also initial application for Advance Ruling), reproduced above, some of the submissions put forth by appellant are to the effect of disputing the GST levy-rate of 28% on limestone slabs (as goods falling under HSN Code 6802) or questioning the basis of and rationale behind fixing such quantum of levy; arguing as to purported discrimination / inequity by citing lesser rate of GST-levy fixed in respect of other products / commodities – Water bottles, marbles, granites etc., and industries/sectors having highly mechanised processes etc., compared to small-scale units and so forth. Certain other submissions are also made by referring to newspaper reports/clippings, GST-captions/slogans, effects of the higher rate on small scale units, employment-aspects, etc.
8.2. We find that su
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the course of the discussion and findings enumerated in the following paragraphs.
8.3. We further observe that the lower Authority's findings in the impugned order are rather concise and do not reflect a detailed examination and analysis of the headings, Chapter Notes vis-d-vis the goods/processes, as ought to have been done in the given context. Moreover, as against totally 5 (five) questions framed for the Advance Ruling by appellant, the Advance Ruling as rendered addresses only the first two questions and not the remaining questions. Though the ruling rendered covering the first two questions would lead to and imply a negation / negative ruling in respect of the remaining three questions, propriety of the proceedings required specific ruling with regard to each question raised.
8.4. Notwithstanding the aforesaid, we note that the statutory mandate vide Section 101 (1) of the Acts, requires this Appellate authority to pass an order, inter-alia, confirming or modifying the Ruling
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the Central Tax (Rate) Notifications8 as also the Headings, Chapter Notes etc., applicable in the given context.
10.2. Levy of GST came into effect from 1-7-2017. The charging Sections, Section 9 (1), in both the Central Goods and Services Tax Act, 201 7 (“CGST Act”/ “the Act”, in short) and the Telangana Goods & Services Tax Act, 201 7 (“TGST Act” / “the State Act”) – collectively referred to as “the Acts” – read as follows:
“9. Levy and collection. (1) Subject to the provisions of sub-section (2), there shall be levied a tax 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”.
10.3. Notification No. 1/2017-CT (Rate)
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ng or otherwise, into blocks or slabs of a rectangular (including square) shape.
125.
2516 11 00
Granite crude or roughly trimmed
130.
2521
Limestone flux; limestone and other calcareous stone, of a kind used for the manufacture of lime or cement.
137.
2530
Mineral substances not elsewhere specified or included.
SCHEDULE II – 6%
S.No.
Chapter/ Heading/Sub heading/ Tariff item
Description of Goods
(1)
(2)
(3)
51.
2515 12 10
Marble and travertine blocks
52.
2516
Granite blocks
176.
68
Sand lime bricks 10or Stone inlay work
11176A
6802
Statues, statuettes, pedestals; high or low reliefs, crosses, figures of animals, bowls, vases, cups, cachou boxes, writing sets, ashtrays, paper weights, artificial fruit and folia e, etc.; other ornamental goods essentially of stone”;
SCHEDULE III – 9%
S.No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
(1)
(2)
(3)
12″26A
2515 12 20, 2515 12 90
Marble and travertine, other than blocks
26B
2516 12 00
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d foliage, etc.; other ornamental goods essentially of stone] 16{except the items covered in Sl.No. 123 in Schedule I}
SCHEDULE IV – 14%
(all these entries later omitted, as indicated below in footnotes)
S.No.
Chapter/Heading/Sub-heading/Tariff item
Description of Goods
(1)
(2)
(3)
1716.
2515 12 20, 2515 12 90
Marble and travertine, other than blocks
1817.
2516 12 00
Granite, other than blocks
1970.
6802
20All goods of marble or granite [other than Statues, statuettes, pedestals; high or low reliefs, crosses, figures of animals, bowls, vases, cups, cachou boxes, writing sets, ashtrays, paper weights, artificial fruit and foliage, etc.; other ornamental goods essentially of stone]”
10.5. The Notification contains an Explanation, relevant portion thereof being as under:
“Explanation. – For the purposes of this notification, –
……….
(iii) “Tariff item “sub-heading” “heading” and “Chapter” shall mean respectively a tariff item, sub-heading, heading and chapter as
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e defined, by the Explanation to the Notification, to be those specified in the First Schedule to the Customs Tariff Act, 1975. The Explanation further provides for application of the Rules for Interpretation, Section Notes, Chapter Notes and General Explanatory Notes, for interpreting the entries in the Notification, as far as the case may be.
11.1. The appellant has contended against lower Authority's reference to and application of Customs Tariff Act / Schedule, entries and Explanatory Notes thereto, on the ground that these have no legal backing; and instead Excise Tariff should have been considered/adopted. However, as detailed supra, the GST-rate notification specifically provides for applicability of the Customs Tariff and related Rules for Interpretation/Explanatory Notes. Thus, appellant's contentions in this regard are found to be not valid, as the statutory Notification makes it abundantly clear that for classification of goods in GST, the Customs Tariff is to be followed.
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t on/in relation to/with regard to the concept/aspect 'manufacture'. The questions of whether or not processes undertaken amount to 'manufacture' or whether it entails change in the characteristics of the products such as nature / description / usage etc., , are not germane for determining the classification of the goods, unless such an aspect is indicated in or made a relevant/integral part of Tariff entries/Chapter Notes etc. In the Customs Tariff.
12.1. Another set of grounds/contentions put forth by appellant in this context, are that the HSN (Harmonised System of Nomenclature) Notes have no legal backing or support and hence, reference to the same by the lower Authority is not correct / not tenable. Reliance in this regard was also placed on the decision of Hon'ble Tribunal in the case of Madhusudan Ceramics vs Collector of Central Excise 1991 (53) ELT 90 Tri Del = 1990 (11) TMI 244 – CEGAT, NEW DELHI. We have examined the contention. The HSN (Harmonised System of Nomenclature) E
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substantive principle of law laid down therein which is applicable to the instant case, since there can be no dispute that the Customs Tariff (which is made applicable by the GST-rate Notification) is based upon and aligned with I-ISN. Hence, we find that reference to HSN Notes for deciding the classification issue involved, as done by the lower Authority, is in principle legally correct and tenable.
12.2. The appellant relied on the case law of Madhusudan Ceramics cited supra, to urge that in the said case the party had contended that HCDCS cannot be relied upon for classification of goods; that the Hon'ble Tribunal decided the issue in favour of the party by allowing their appeal and thereby, it should be considered that Hon'ble Tribunal had upheld the contention as to non-applicability of HCDCS. On perusal of the said case-law, it is observed that though the party made such a plea, the same was neither part of ratio decidendi of the decision nor was the said plea either expressly o
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aragraphs.
14.1. Reverting to the issue in dispute as to the classification of subject goods, the relevant extracts of Chapter 25 of the First Schedule to the Customs Tariff Act, 1975 (hereinafter referred to as Customs Tariff / First Schedule, in short); the Headings 251 5, 251 6, 2521 and 2530 (cited by appellant) as well as Chapter 68 i.e, Heading 6802, along with the relevant Chapter Notes, are reproduced below: (Reference to HSN Explanatory Notes would come into consideration, only in case of any doubt / ambiguity in interpreting / applying these headings/Notes etc. and the same has accordingly been dealt, in the subsequent paragraphs).
“SECTION V MINERAL PRODUCTS
Chapter 25
Salt; sulphur; earths and stone; plastering materials, lime and cement
Notes:
1. Except where their context or Note 4 to this Chapter otherwise requires, the headings of this Chapter cover only products which are in the crude state or which have been washed (even with chemical substances eliminating the
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OF A RECTANGULAR (INCLUDING SQUARE) SHAPE
–
MARBLE AND TRAVERTINE :
2515 11 00
CRUDE OR ROUGHLY TRIMMED
kg.
2515 12
Merely cut, by sawing or otherwise , into blocks or slabs of a rectangular (including square ) shape :
2515 12 10
Blocks
kg.
2515 12 20
Slabs
kg.
2515 12 90
Other
kg.
2515 20
–
Ecaussine and other calcareous monumental or building stone; alabaster :
2515 20 10
Alabaster
kg.
2515 20 90
Other
kg.
2516
GRANITE, PORPHYRY, BASALT, SANDSTONE AND OTHER MONUMENTAL OR BUILDING STONE, WHETHER OR NOT ROUGHLY TRIMMED OR MERELY CUT, BY SAWING OR OTHERWISE, IN TO BLOCKS OR SLABS OF A RECTANGULAR (INCLUDING SQUARE) SHAPE
–
Granite :
2516 11 00
Crude or roughly trimmed
kg.
2516 12 00
Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape
kg.
2516 20 00
Sandstone
kg.
2
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and agglomerated amber in plates, rods, etc., not worked after moulding jet
kg.
2530 90 20
Natural arsenic sulphides (such as orpiment)
kg.
2530 90 30
Calcite
kg.
2530 90 40
Ores and concentrates of rare earth metals
kg.
2530 90 50
Wollastonite
kg.
2530 90 60
Earth colour ochre, crude
kg.
2530 90 70
Other processed earth colour ochre
kg.
Other :
2530 90 91
–
Strontium sulphate (natural ore)
kg.
2530 90 99
–
Other
kg.
SECTION XIII
ARTICLES OF STONE, PLASTER, CEMENT, ASBESTOS, MICA OR SIMILAR MATERIALS; CERAMIC PRODUCTS; GLASS AND GLASSWARE
Chapter 68
Articles of stone, plaster, cement, asbestos, mica or similar materials
Notes :
1. This Chapter does not cover :
(a) goods of Chapter 25 :
(b) to (n) not reproduced since pertaining to other goods/Chapters etc and hence not relevant.
2. In heading 6802, the expression “worked monumental or building stone” applies not only to the varieties of s
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:
6802 21
Marble, travertine and alabaster :
6802 21 10
Marble blocks or tiles
kg.
6802 21 20
Marble monumental stone
kg.
6802 21 90
Other
kg.
6802 23
Granite :
6802 23 10
Granite blocks or tiles
kg.
6802 23 90
Other
kg.
6802 29 00
Other stone
kg.
–
Other :
6802 91 00
Marble, travertine and alabaster
kg.
6802 92 00
Other calcareous stone
kg.
6802 93 00
Granite
kg.
6802 99 00
Other stone
kg.
14.2. The Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 (also referred in the Explanation to Notification No. 1/201 7- Central Tax (Rate) dated 28.06.201 7), read as follows:
“GENERAL RULES FOR INTERPRETATION OF THE SCHEDULE
Classification of goods in this Schedule shall be governed by the following principles:
The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, c
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y of such material or substance. The classification of goods consisting of more than one material or substance shall be according to principles of rule 3.
3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:
(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a)
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f the suitable surfaces is polished with simple table polish machine. Further, it is cut to square or rectangle shape on a table cutting machine. Some other kind of simple processes like CALIBRATION, TUMBLING etc. are also undertaken”. (unquote).
(2) It is pertinent to note that appellant's description of activities is that apart from polishing and cutting, “some other simple processes like tumbling, calibration etc., are also undertaken”. What is 'tumbling' or 'calibration' have not been detailed / explained by appellant21. Further, usage of word “etc.” as indicated above, denotes further or other processes (i.e, in addition to those specified in application/appeal), which however have not been disclosed / described or specified, either in the application or the appeal. Appellant's description of goods as “polished / processed limestone slabs” – as given in the question framed for advance ruling – in itself bears elements of vagueness / imprecision. That is, while the pre-fixed term
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labs' i.e, where apart from cutting slabs into rectangular/square shapes, only the activity of 'polishing' is done; and
(b) Classification of 'processed limestone slabs' i.e, where apart from cutting slabs into rectangular/square shapes, all the other specified activities viz., polishing, tumbling and calibration are undertaken (and not as merely one of these or a combination of one or more of these).
15.3. On examining the nature of activities i.e, processes mentioned above, we find as follows:
(i) Polishing is the process of smoothening one suitable surface of a given slab, mechanically. Appellant's description thereof in the application (reproduced at para 3.1 above under Nature of activity) is (quote) “to bring rough limestone slabs (a minor mineral) which are by nature uneven in thickness ranging from 15 to 35 mm (or so), to our processing unit and POLISH it's one of the suitable surface with simple table polish machine” (unquote). Though not specifically describing the process
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rary on record, it is considered that only mechanical grinding is undertaken as the method of polishing in respect of goods in question.
(ii) Cutting is described as mechanical cutting of rough slabs into square/rectangular shapes; appellant's description thereof in their application (para 3.1 under Nature of activity) is (quote) “cut it to square or rectangle shape on a table cutting machine”. And in their submissions vide letter dated 12-5-2018, it has been described as: (quote) “..Even CUTTING of sides of a Stone slab is possible only with the application of physical force of a labour against a cutting wheel of a simple machine.”
(iii) However, as stated above, appellant has not described/explained as to the meaning / nature of the processes 'tumbling' and 'calibration'. Hence, recourse is taken to dictionary/technical literature for ascertaining the same. As per the details available on public domain, 'tumbling'23 and 'calibration'24, with regard to stones/slabs, are found to be
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mately same thickness i.e., fairly regular/even, by sawing off/cutting off the protuberant/uneven portion of the under-side surface (i.e, other than the one polished). .
16. Appellant's plea is for classification of the goods under Chapter 25 and in particular reference, under Chapter Headings 2515 / 2516 and alternatively under Headings 2521 or 2530. The Authority held the goods to be correctly classifiable under Heading 6802 of the GST Tariff, for the reasoning given in the impugned order.
17. Before considering the relevant Headings, Notes in Chapters 25 and 68 (and related Explanatory Notes where required), we deem it fit to deal with one of the grounds put forth by the appellant, whereby classification of the goods under Chapter 25 was sought, based on the Titles of the Sections and Chapters in the Tariff-Schedule. The contention is that title of Section V of the Tariff refers to “Mineral products”, Chapter 25 title contains the word “Stone” and hence, these would be applicable
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.e., Calcareous monumental or building stone, that limestone falls under Heading 2515, if apparent specific gravity thereof is 2.5 or more. (Meaning of “Calcareous” as per standard dictionaries and also in common and technical understanding25 is “mostly or partly composed of calcium carbonate – in other words, containing lime or being chalky”. Further elaboration given herein is that “major materials in Limestone sedimentary rock are the minerals calcite and aragonite, which are different crystal forms of calcium carbonate (CaCO3)”)
c) If specific gravity is less than 2.5 the same would fall under Heading 251 6, notwithstanding that Heading 25.1 6 does not contain the word 'calcareous' and mentions only 'other monumental or building stone'. This is in view of the HSN (Harmonised System of Nomenclature) Explanatory Notes for Headings 25.15 and 25.1 6, which read respectively, as follows (the validity of reference to HSN Notes, has been delineated earlier) :
25.15 : “The heading cover
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said headings are considered as equally applicable in the given context, depending on the actual specific gravity thereof.
e) Appellant also claimed alternative classification under Headings 2521 or 2530 with regard to their goods 'polished / processed limestone slabs'. The former Heading, as seen, is applicable to only specified types/forms of limestone i.e, 'limestone flux, limestone and other calcareous stone, of a kind used for the manufacture of lime or cement'. That is, to fall under this Heading the goods should be either 'limestone flux' or 'limestone of a kind Used for manufacture of lime or cement'. There is nothing on record, nor adduced / claimed by the appellant that the goods in question are either limestone flux (which is chiefly employed as a flux in iron and steel industry26) or of the kind used in the manufacture of lime or cement. On the other hand, it is specifically stated by the appellant that the impugned goods are for use in (quote) 'low budget housing needs'
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herefore first examined whether the goods fall under Chapter 25. Classification under Chapter 25 is primarily governed by Note 1 to the said Chapter. The said Chapter Note specifies certain criteria for classification under Chapter 25. These can be analysed as follows: The Note starts with the phrase “Except where their context (..27) otherwise requires, the headings of this Chapter cover..”. This denotes that the description in the Headings is the first and foremost criterion to be considered. If the Headings do not otherwise require/provide, then headings would cover :
(a) only products which are in the crude state, or
(b) products “which have been washed, crushed, ground, powdered, levigated, sifted, screened or concentrated by flotation, magnetic separation or other mechanical or physical processes (except crystallisation) This phrase and construction thereof indicates that the words used therein denote both the state/form in which the goods should be, and the corresponding proc
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cted to other processes i.e, either those specified i.e, roasted, calcined etc., (except when the Heading description allows); or any process beyond that mentioned in the Heading.
19.1. Examining the subject goods in the light of above criteria vis-a-vis the relevant Headings 2515/2516 & Chapter Note, we find as follows:
(a) Headings 2515 and 251 6, both contain similar phrase “whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape”. There are two processes / stages mentioned in this description i.e, (i) roughly trimmed or (ii) cut, by sawing or otherwise, into blocks/slabs of rectangular/square shapes.
(b) The phrase 'roughly trimmed' is not defined in the Chapter/Tariff/Schedule. However, the same is explained in Chapter 25 of the Harmonised System of Nomenclature (HSN) Notes as follows:
“Roughly-trimmed” stone is stone which has been very crudely worked after quarrying, to form blocks or slabs, still
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he HSN. Hence, calibration would not fall under the category of 'roughly trimmed'. As such, is not a permitted process in the Headings.
(e) Process of cutting limestone slabs into square or rectangular shapes (as per surfaces), is admittedly undertaken by the appellant. The said process is specifically mentioned in the description under Headings 2515/2516; and hence is an 'allowed process'.
19.2. With regard to other processes of polishing (including tumbling), these do not find place in descriptions of either Heading 2515 or 2516. The said descriptions also do not expressly provide for exclusion/prohibition of any other process(es). Hence, it is to be seen whether the subject goods / processes of polishing and tumbling as also calibration (which is not covered in Heading description, as detailed supra) are covered by Note 1 to Chapter 25, as analysed earlier.
19.3. The first criterion in the said Note is that goods should be in crude state. The appellant has not claimed that the go
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VIGAT, and the literal meaning of the same is “made smooth, polished'; or
(ii) Polishing is nothing but 'grinding' the surface of the slab (and therefore covered by the word 'ground' used in the Chapter Note); or
(iii) the words/phrase 'mechanical or physical process' would apply to the activity of polishing undertaken by them, as the same was undertaken without changing the structure of the product.
20.2. Above contentions have been examined. It is observed as follows:
A. With regard to the word 'levigated':
(i) On referring to standard dictionaries29, the meaning of 'levigate' (indicated as 'archaic') is found to be given as “to reduce (a substance) to a fine powder or smooth paste”. It is further mentioned that the origin of the word is in mid-1 6th century: from Latin levigat- 'made smooth, polished', from the verb levigare, from levis 'smooth'. Other dictionaries Collins, Merriam Webster etc., also show the meaning of the word, as verb, to be 'reducing / grinding to a smooth,
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it appears that 'levigated' merits consideration as denoting that the goods/product is in the state/form of 'smooth fine powder'. Or by considering that the term powdered' is separately mentioned in the Note as immediately preceding word (which would cover all forms of powdered state whether coarse or fine), the only alternative meaning of 'levigated' as per contemporary prevalence, would be to denote goods in the state/form of/or subjected to process(es) of making into 'smooth paste'.
B. With regard to the word 'ground':
(i) The word 'ground' used in the Chapter Note, in the given context; has been cited by appellant as covering their activity of 'polishing' by mechanical grinding. However, here again, the said word appears along with the other words 'crushed', powdered etc., which refer to the processes of reducing substances to lesser size / finer particles / powdered forms.
(ii) Further, the said word 'ground' appears in Heading / sub-heading description of various products und
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stand-alone phrase, but used in conjunction with the earlier words/phrases which qualifies it. For ready reference, the said Chapter Note, is again reproduced as under:
“1. Except where their context or Note 4 to this Chapter otherwise requires, the headings of this Chapter cover only products which are in the crude state or which have been washed (even with chemical substances eliminating the impurities without changing the structure of the product), crushed, ground, powdered, levigated, sifted, screened, concentrated by flotation, magnetic separation or other mechanical or physical processes (except crystallization), but not products that have been roasted, calcined, obtained by mixing or subjected to processing beyond that mentioned in each heading”.
(ii) In the above text, the words “screened, concentrated” appear in continuation followed by description of processes “flotation, magnetic separation or other mechanical or physical processes..”. This would denote a construction /
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. .” (conjunction highlighted).
(iii) The meaning denoted with the use of the conjunction 'or' as above, appears to be apt, as otherwise, if only the word -'concentrated' has to be reckoned as qualifying the subsequent words/phrases 'flotation, magnetic separation or other mechanical or physical processes' – the same would not reflect a contextually relevant or true meaning, since processes of flotation, magnetic separation cannot be said to be used only for 'concentration'; more so since the earlier words in the Note include sifted / screened etc. Therefore, the above said phrase in Chapter Note I of Tariff, read with the HSN Explanatory Notes, merits to be considered as denoting that the processes mentioned 'flotation, magnetic separation or other mechanical or physical processes' as applicable, to one or more of the earlier appearing words 'washed crushed, ground, powdered, levigated, sifted, screened or concentrated'. Consequently, the phrase “other mechanical or physical process
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sed by appellant for the words 'levigated', 'ground' and 'other mechanical or physical process' appearing in Chapter Note 1, do not find sustainability or legal support, as analysed supra.
20.4. It follows from the above discussion that the processes of 'polishing', 'tumbling' and 'calibration'; or the state of goods as polished / tumbled / calibrated are not covered by Note 1 to Chapter 25 of the Customs Tariff Act, 1 975.
21. Before arriving at a definite conclusion in this regard, we deem it fit to now also refer to the HSN Explanatory Notes pertaining to Chapter 25 and the headings 251 5/251 6 therein; which read as follows: (the relevant extracts are highlighted (underlined)):
“Chapter 25
Salt; sulphur; earths and stone; plastering materials, lime and cement
Notes…………………(Chapter Notes similar to those in Customs Tariff Act Schedule referred earlier hence not reproduced).
GENERAL
As provided in Note 1, this Chapter covers, except where the context otherwise req
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,' provided that such addition does not render the product particularly suitable for specific use rather than for general use. Minerals which have been otherwise processed (e.g., purified by recrystallisation, obtained by mixing minerals falling in the same or different headings of this Chapter, made up into articles by shaping, carving, etc.) generally fall in later Chapters (for example, Chapter 28 or 68).
In certain cases, however, the headings :
(1) Refer to goods which by their nature must have been subjected to a process not provided for by Note 1 to this Chapter. Examples include pure sodium chloride (heading 25.01), certain forms of refined sulphur (heading 25.03 V chamotte earth (heading 25.08), plasters (heading 25.20), quicklime (heading 25.22) and hydraulic cements (heading 25.23).
(2) Specify conditions or processes which are admissible in those cases in addition to those allowed generally under Note 1 to this Chapter. For example, witherite (heading 25.11), siliceous
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by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape (+).
–
Marble and travertine :
2515.11
Crude or roughly trimmed
2515.12
Merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape
2515.20
Ecaussine and other calcareous monumental or building stone; alabaster
Heading Notes:
Marble is a hard calcareous stone, homogeneous and fine-grained, often crystalline and either opaque or translucent. Marble is usually variously tinted by the presence of mineral oxides (coloured veined marble, onyx marble, etc.), but there are pure white varieties.
Travertines are varieties of calcareous stone containing layers of open cells.
Ecaussine is extracted from various quarries in Belgium and particularly at Ecaussines. It is a bluish-grey stone with an irregular crystalline structure and contains many fossilised shells. On fracture Ecaussine shows a granular surface similar to granite and is theref
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8.02. The same classification applies to blanks of articles.
The heading also excludes:
(a) Serpentine or ophite (a magnesium silicate sometimes called marble) (heading 25.16),
(b) Limestone (known as “lithographic stone” and used in the printing industry) (heading 25.30 when in the crude state).
(c) Stones identifiable as mosaic cubes or as paving flagstones, even if merely shaped or processed as specified in the text of this heading (heading 68.02 or 68.01 respectively).
Subheading 2515.11
For the purposes of this subheading, “crude” refers to blocks or slabs which have been merely split along the natural cleavage planes of the stone. Their surfaces are often uneven or undulating and frequently bear marks of the tools used to separate them (crowbars, wedges, picks, etc.).
This subheading also covers unshaped stone (quarrystone, rubble) obtained by breaking out rocks from the quarry face (using picks, explosives, etc.). They have uneven, broken surfaces and irregular edges. Thi
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faces. If care was taken with the sawing, these traces may be very slight In such cases, it is useful to apply a sheet of thin paper to the stone and to nib it gently and evenly with a pencil held as flat as possible. This often reveals saw marks even on carefully sawn or very granular surfaces.
This subheading also covers blocks and slabs of a rectangular (including square) shape obtained otherwise than by sawing, e.g., by working with a hammer or chisel.
22.1. From the above extracts of the HSN, especially the highlighted portions, it is evident that the HSN Explanatory Notes also reflect the restriction as to only certain specified processes being allowed on the products for a classification under Chapter 25. The said Notes further specify and give illustrative details of other processes which, if undertaken, entails classification under other Chapters, as follows:
(i) The General Notes in HSN under Chapter 25 specify that “Minerals which have been otherwise processed .. generall
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f undertaken would attract application of the said explanation. The list of these mentioned processes, is also not exhaustive as seen from “etc.” appearing after “chamfered”.
22.2. In view of the above, as per HSN notes also, slabs which have been 'polished', tumbled and/or calibrated WOUld be covered by exclusions detailed in both General Note to Chapter 25, as well as the Heading Note to Heading 2515.
23. Based on the above detailed analysis, we find that in sum, the goods in question, limestone slabs, have admittedly been subjected to processes of 'polishing' (including tumbling) and calibration, in addition to being cut to rectangular/square shapes. The said processes, except that of cutting, are not among those specified either in the Heading description or the Chapter Note 1, for an eligible classification under Chapter 25. Hence, classification of the subject goods under Chapter 25 i.e, specific Headings 2515 /2516 remains precluded by virtue of description in said Headings as
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abs under Chapter 25 by considering that in their earlier Final Order No. A/1740-1744/WZB /AHD/2012 dated 27-12-2012 = 2013 (9) TMI 648 – CESTAT AHMEDABAD, the issue was held in favour of the same assessee; and the said Final Order was accepted by the Department and hence that the ratio of the earlier order would apply. Thus, in this decision, Hon'ble Tribunal has not given specific findings. We have therefore referred to the earlier Final Order dated 27-12-2012 = 2013 (9) TMI 648 – CESTAT AHMEDABAD cited therein, which is available with citation Classic Marbles vs CCE„ Vapi 2013 (293) ELT. 563 (Tri-Ahmd.) = 2013 (9) TMI 648 – CESTAT AHMEDABAD. In this decision, Hon'ble Tribunal while deciding the classification issue involved, referred to various other judgments, including Oriental Trimex Ltd. 2010 (249) ELT. 259 (Tri-Dei). =2009 (8) TMI 454 – CESTAT, NEW DELHI, Nitco Tiles Ltd. 2004 (165) ELT.50 (Tri-Mum). = 2003 (10) TMI 467 – CESTAT, MUMBAI.
24.3. We find that in the above j
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Chapter Note incorporated in the Central Excise Tariff, process of 'polishing' came to be included in Chapter 25, which was accordingly considered by the Hon'ble Tribunal. It is pertinent to note that the words “or polishing” in the above said Note 6 to Chapter 25, were omitted by the Finance Act, 2012.
24.4. We therefore find that the aforesaid decisions were rendered in totally different context i.e, Central Excise duty levy which is on 'manufacture', coupled with existence of Chapter Notes deeming 'polishing' to be manufacture in a given period; and further the decisions therein, were based on specific facts of cases vis-d-vis certain applicable clarifications issued by the Board (Central Board of Excise & Customs) etc. We find that in these case-laws, the issue of classification under the competing entries of Chapters 25 and 68 de hors the aspect of 'manufacture' does not find specific examination and analysis. As such, we find that the said case law of Classic Marble cited by ap
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01; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of natural stone (including slate)”.
In the above entry, the relevant part meriting consideration for the issue on hand would be whether subject goods are covered by the expression “worked monumental or building stone and articles thereof”; the subsequent portion of the entry being not relevant. The phrase 'monumental or building stone', is the same as appearing in Headings 251 5/251 6 (with prefix 'calcareous' and 'other' respectively). Notes to Chapter 68 in the Tariff-Schedule, as earlier reproduced, do not define the word “worked” nor contain any explanation / description as to the meaning/scope thereof31. In view of the same, a reference is to be made to the HSN, which as stated supra, is a safe guide for classification purposes, as laid down by Hon'ble Supreme Court.
27.2. Extracts of HSN Notes for Chapter 68, the relevant portion
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orm rather than the nature of the constituent material. Some are obtained by agglomeration (e.g., articles of asphalt, or certain goods such as grinding wheels which are agglomerated by vitrification of the binding material); others may have been hardened in autoclaves (sand-lime bricks). The Chapter also includes certain goods obtained by processes involving a more radical transformation of the original raw material (e.g., fusion to produce slag wool, fused basalt, etc.).
Further text “Articles obtained by …….” to exclusion clause (g) “Original sculptures….”, being not relevant, not reproduced.
Heading description:
68.02
Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 68.01; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially coloured granules, chippings and powder, of natural stone (including slate).
6802.10
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Tiles, cubes and similar articles, whether or
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vers stone which has been further processed than mere shaping into blocks, sheets or slabs by splitting, roughly cutting or squaring, or squaring by sawing (square or rectangular faces).
The heading thus covers stone in the forms produced by the stone-mason, sculptor, etc., viz.:
(A) Roughly sawn blanks; also non-rectangular sheets (one or more faces triangular, hexagonal, trapezoidal, circular, etc.).
(B) Stone of any shape (including blocks, slabs or sheets), whether or not in the form of finished articles, which has been bossed (i.e., stone which has been given a rock faced “finish by smoothing along the edges while leaving rough protuberant faces), dressed with the pick, bushing hammer, or chisel, etc., furrowed with the drag-comb, etc., planed, sand dressed, ground, polished, chamfered, moulded, turned, ornamented, carved etc.
The heading therefore includes not only constructional stone (including facing slabs) worked as above, but also articles such as…..
Stone slabs formi
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pecially the highlighted parts, it may be seen that the meaning/scope of the word 'worked' is not separately and specifically delineated in the HSN Notes also. However, the said word is used at various places denoting certain illustrative and not exhaustive list of processes. From a reading of the above Notes and keeping in view those under Chapter 25, referred earlier, it can be seen that:
(i) Minerals / mineral products figure in both Chapter 25 and Chapter 68.
(ii) The distinction for classifying under either of the Chapters lies in the level of activities / processes undertaken on the goods.
(iii) That is, to fall under Chapter 25, the goods should be either crude or subjected to only those processes/stages which are specified in the relevant Heading-description or Note 1 to Chapter 25. Any processes undertaken beyond those specified for Chapter 25 purpose, would take the goods out of purview of the said Chapter.
(iv) Once the goods fall out of Chapter 25, they would fall under
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h is also described as 'beyond the stage of normal quarry products of Chapter 25'.
(viii) Any further process than mere shaping into slabs by cutting, also would render the goods to fall under Heading 6802.
(ix) Amplification / illustrations to the above Note, specifies that the heading covers stone in the forms produced by stone mason, sculptor etc.„( here again, usage of word “etc.”, shows that the same is not exhaustive to restrict it to products made by a stone mason or sculptor only).
(x) Stone of any shape, including slabs, which may or may not be in the form of finished articles but which have been, among others, 'polished' is also covered in the heading. Herein again, the list of processes i.e., bossed, dressed with the pick, bush-hammer, chisel Polished, chamfered, turned… is not exhaustive, as evident from the multiple usage of “etc.” therein. Also, the enumeration of processes is not cumulative so as to require that all the processes should be undertaken on a give
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s grounds/contentions against classification of the subject goods under Chapter 68 / Heading 6802 are that Heading 6802 applies only to shaped articles and further worked by a stone-mason or sculptor, whereas the limestone slabs are simply polished & cut which does not change morphology, character, name, description, purpose and usage of the stone; hence, these processes would not take the classification out of Chapter 25. We are unable to accept this contention. As detailed above, the Heading 6802, apart from articles, also specifically covers stone in the description itself i.e. “worked monumental or building stone.. and articles thereof”. The same, coupled with the HSN Explanatory Notes, as detailed and analysed above, show that such stone (limestone slabs, in the instant context) which have been 'worked' beyond the processes mentioned in Chapter 25 on the one hand and 'polished' as specified under Chapter 68 in particular reference to slabs (blocks etc.,) has to be classified under
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was further urged that by the very description of the said goods, without any prefix or adjective also, these would include polished varieties and hence, the same analogy would apply to the goods limestone slabs.
On examining, we find that in the Central Tax Rate Notification, the goods Marble and Granite are mentioned by description in certain entries, with the classification under Chapter 25 (Headings 2515 or 251 6, as the case may be) with reference to specific subheading / Tariff Item Number. However, the description against said sub-heading numbers, is given with a qualification/restriction as 'blocks' or 'other than blocks'. The same corresponds to the fact that Marble and Granite, by the said names, are specified in the Headings 2515, 251 6 respectively; and again in respect of certain specific sub-headings.
Appellant's argument that by mere description, the words 'marble' or 'granite' in the Notification would include polished, is only an assumption; since no such indication
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pend upon criteria for classification, as per Chapter Notes, Rules for Interpretation etc, read with HSN notes. In essence, here again it depends on the nature / level of processing undertaken; whereby if these are in crude state or subjected to specific processes (detailed in HSN also), they would be classifiable under Chapter 25 and if worked beyond that, including polishing, they would be classifiable under Chapter 68 under any of the above subheadings, as applicable. In Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017; against the Heading 6802, the description appearing in Heading 6802 of Customs Tariff has been as such incorporated (with certain specified exceptions/exclusions), pursuant to the amendment effective from 15-11-2017 (Sl.No. 177E of the Notification refers). As such, specific mention of Marble, Granite does not appear in the description against Heading 6802 in the Notification, since the said Heading along with the description, encompasses coverage of Marbl
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ication of goods, for GST-levy purposes; and as such cannot be of any relevance.
(c) It has further been contended that 'as per rules of HSN Code', the appellant has to mention only two digits, whereas the Authority has considered 4-digit or 6-digit classification which are not relevant to them. We find that this contention of the appellant is also not in proper appreciation of the facts and statutory provisions. Classification of goods, as per the GST-Notifications, merits to be determined by considering the relevant entries, Notes in the Customs Tariff Schedules, which provide for upto 8-digit classification, at the ultimate specification levels. The mention of 'two-digit' classification, under GST, is only a procedural relaxation given in respect of reporting in the statutory returns. The same has no bearing/relevance with regard to the primary question of determination of classification of the goods, as per the Tariff Schedule.
(d) Appellant also contended that findings of lower
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fied under Heading 6802 of the Tariff Schedule.
31.1. In view of the foregoing, we find that the appellant has not made out a case against the decision in impugned Advance Ruling in so far as it has been ruled that “Polished / Processed Limestone slabs are. correctly classifiable under heading 6802 of the GST Tariff (sic)”. The classification under Chapter Heading 6802 of the First Schedule to the Customs Tariff Act, 1975 is the appropriate classification of the said goods (both 'polished' only as well as 'processed', as referred at para 15.2 supra), in view of the relevant Heading-description read with the Chapter Notes and HSN Explanatory Notes; as discussed and analysed above.
31.2. In terms of sub-classification under Heading 6802, the said goods would fall under Tariff Item No. 6802 92 00 – “Other calcareous stone”; considering that limestone slabs are 'calcareous stone', as stated earlier and keeping in view the structure of grouping under Heading 6802 read with Rules for Inter
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pter Heading 6802 (Tariff Item No. “6802 92 00 – Other calcareous stone”) of the Schedule.
C)
Can we put them under 'Mineral substances not elsewhere specified or included” which is mentioned under HSN Code 2530?
The goods Polished/ Processed Limestone slabs do not fall under HSN Code – Chapter Heading 2530 of the Schedule.
D)
Can we retain them under any of the I-ISN Codes 2515/2516/2521 ?
The goods Polished / processed Limestone slabs do not fall under HSN Codes i.e, Chapter headings 2515 / 2516 / 2521 of the Schedule.
E)
Can we retain them under HSN Code 25 with inaugural phrase of “Goods not mentioned elsewhere” as mentioned at the start of column of 5% ?
The goods would not fall under Chapter 25 of the Schedule, in view of the above discussion and findings.
33. Accordingly, we pass the following
ORDER
The Advance Ruling given vide TSAAR Order No. 02/2018 dated 25-03-2018 = 2018 (6) TMI 458 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA passed by the Telangana State
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form for Advance Ruling', which requires furnishing “Statement containing applicant's interpretation of law……”.
5. Para No. (14) as given in the appeal, apparently referring to the said Sl.No. in the prescribed format Form GST ARA-02 for 'Appeal to the Appellate Authority for Advance Ruling'. Sl.No. 14 as per format is athe facts of the case (in brief)”.
6. Para No. (15) as given in the appeal, apparently referring to the said Sl.No. in the prescribed format Form GST ARA-02 for 'Appeal to the Appellate Authority for Advance Ruling'. Sl.No. 15 as per format is “Grounds of Appeal”.
7. Questions framed by the appellant for Advance Ruling, and consequently this appeal pertain to only the classification under specified headings. The said questions, as framed, do not require ruling with regard to applicable rates of GST for the subject goods. Accordingly, the issue is considered w.r.t. the appropriate classification of the subject goods. Needless to state, rates of GST applicable on s
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erted by (B)(xiv) of Notification No.27/2017-Central Tax (Rate) dated 22.09.2017.
11. Inserted by (B (xv) of Notification No.27/2017-Central Tax (Rate) dated 22.09.2017.
12. Entry Sl.No.s 26A and 26B inserted by (C)(xii) of Notification No. 41/2017- Central Tax (Rate) dated 14-11-2017 with effect from 15-11-2017.
13. Inserted by C (xii) of Notification No. 34/2017- Central Tax (Rate) dated 13.10.2017
14. Entries in Col. (2) & (3) against Sl.No.177A above, were substituted vide C (xlix) of Notification No. 41/2017- Central Tax (Rate) dated 14.11.2017 w.e.f. 15-11-2017.
15. Inserted by C (1) of Notification No. 41/2017- Central Tax (Rate) dated 14.11.2017 w.e.f. 15-11-2017.
16. Phrase in {} inserted by (C)(v) of Notification No.18/2018-Central Tax (Rate) dated 26th July, 2018, effective from 27th July, 2018.
17. Sl.No. 16 omitted by (D)(i) of Notification No. 41/2017- Central Tax (Rate) dated 14-11-2017 effective from 15-11-2017.
18. Sl.No. 17 omitted by (D)(i) of Notification No
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l goods essentially of stone]” by (D)(iv) of Notification No.27/2017-Central Tax (Rate) dated 22.09.2017.
21. In fact, in the application as well as grounds of appeal, in entirety, only the process of 'polishing' has been referred/emphasised/highlighted by appellant, without any further reference to tumbling or calibration which are only mentioned in the description of 'nature of activity involved').
22. This Order would not be applicable in case of any difference / deviation, in respect of the one or more of above facts/aspects, which has not been brought on record by appellant in the present proceedings, in view of provisions vide sub-Section (2) of Section 103 and sub-Section (1) of Section 104 of the Acts.
23. https://En.wikipedia.org
24. www.pavingexpert.com
25. https://en.wikipedia.org
26. HSN Explanatory Notes to Heading 25.21 refers.
27. The phrase herein reads “or Note 4 to this Chapter otherwise requires” which is not relevant since Note 4 deals with goods falli
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EARTHLINE SERVICES PRIVATE LIMITED Versus STATE OF KERALA, REPRESENTED BY THE CHIEF SECRETARY, THIRUVANANTHAPURAM
GST
2018 (10) TMI 1133 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 7-8-2018
W. P. (C) No. 25972 of 2018 (V)
GST
MR DAMA SESHADRI NAIDU, J.
For The PETITIONER : ADVS.SRI.SUKUMAR NAINAN OOMMEN, SRI.SHERRY SAMUEL OOMMEN AND SRI.RAHUL IPE PRASAD
For The RESPONDENTS : SENIOR GOVERNMENT PLEADER SRI T.A.UNNIKRISHNAN GOVERNMENT PLEADER DR.THUSHARA JAMES
JUDGMENT
The petitioner, a Private Limited Company, is a dealer under Kerala Value Added Tax Act, 2003 (KVAT Act). Faced with the notice dated 02.06.2014 under Section 25(1) of the KVAT Act, it has filed this writ petition. It sought the following
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aside the impugned 'Posting Notice' in Exhibit P1.
iv. Issue such other and further reliefs as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case;
v. Award costs to the petitioners”
2. A learned Division Bench of this Court in M/s. Cholayil Pvt. Ltd v. The Assistant Commissioner (Assessment)1 has ruled on the question of limitation. Now, both the learned Counsel agree that the issue of limitation raised in this writ petition thus stands squarely answered-and in the petitioner's favour, at that.
3. Once a lis can be disposed of, and a grievance can be redressed, on the statutory adjudication, the other issues, especially involving constitutional validity, need not be addressed. The
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