Goods and Services Tax

Commission of Central GST Versus Jay Chemical Industries Ltd.
Central Excise
2018 (8) TMI 1392 – GUJARAT HIGH COURT – 2018 (19) G. S. T. L. 459 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 9-7-2018
R/TAX APPEAL NO. 767 to 770 of 2018 and 814 of 2018, 815 of 2018
Central Excise
MR. M.R. SHAH AND MR. A.Y. KOGJE JJ.
Appearance: –
Tax Appeal Nos.767 of 2018 to 770 of 2018
MR NIRZAR S DESAI(2117) for the APPELLANT(s) No. 1
NOTICE SERVED BY DS(5) for the RESPONDENT(s) No. 1
Appearance: – Tax Appeal Nos.814 of 2018 to 815 of 2018
MR NIRZAR S DESAI(2117) for the APPELLANT(s) No. 1
MR DHAVAL SHAH for the RESPONDENT(s) No. 1
ORAL JUDGMENT
(PER : HONOURABLE MR.JUSTICE M.R. SHAH)
1. As common question of fact and law arises in this group of appeals, all these appeals are decided and disposed of together by this common judgment and order.
2. Feeling aggrieved and dissatisfied with the impugned common judgment and order passed by the learned Customs, Excise and Service Ta

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?
[b] Whether the CESTAT is right in law passing an order for no recovery or any refund of Cenvat Credit of Service Tax paid on Sales Commission during the period?”
2. Shri Nirzar Desai, learned Advocate has appeared on behalf of the Revenue in each of the appeals and Shri Dhaval Shah, learned Advocate, has appeared on behalf of the respondent-assessee in Tax Appeal Nos.814 of 2018 and 815 of 2018. Though served, nobody appears on behalf of the respective respondent-assessees in remaining appeals.
3. Shri Desai, learned Advocate appearing on behalf of the Department has vehemently submitted that as such, the issue involved in the appeals before the learned Tribunal on merits has been concluded in favour of the Revenue in view of the decisions of this Court in the case of Commissioner of C.Ex. Ahmedabad-II Vs. Cadila Healthcare Ltd., reported in 2013 (30) STR, 3 and in the case of Astik Dyestuff Pvt. Ltd. Vs. Commissioner of Central Excise and Customs, reported in 2014 (34) STR, 814.

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in the case of Cadila Healthcare Ltd. (supra) and Astik Dyestuff Pvt. Ltd. (supra), shall not be applicable and that the assessee shall be entitled to the Cenvat credit on the service tax paid on sales commission. It is submitted that therefore the learned Tribunal has rightly not decided the appeals on merits, pending decision of this Court in the case of Essar Steel India Ltd., being Tax Appeal No.444 of 2016. However, it is fairly conceded and admitted that instead of disposing of the appeals, the learned Tribunal could have and ought to have kept the appeals pending rather than passing such an order disposing of the appeals and reserving liberty to both the sides to approach the Tribunal soon after the verdict of this Court in the pending appeal in the case of Essar Steel India Ltd., being Tax Appeal No.444 of 2016.
5. Having heard learned Advocates appearing on behalf of the respective parties and considering the impugned common order passed by the learned Tribunal, we, as such d

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with liberty to both sides to approach the Tribunal after decision of this Court in the pending appeal in the case of Essar Steel India Ltd., being Tax Appeal No.444 of 2016. Such an order would not help either the Revenue /Department and even the assessee. Such a procedure adopted by the learned Tribunal would cause harassment to the assessee as well as inconvenience to the Department. Therefore, we are of the opinion that the procedure adopted by the learned Tribunal disposing of the appeals without deciding the same on merits with liberty approach the Tribunal after decision of this Court in the pending appeal is neither correct not proper and the same deserves to be quashed and set aside.
6. As recorded hereinabove, even learned Advocate appearing on behalf of the assessee in Tax Appeal Nos.814 and 815 of 2018 has also stated and submitted that the learned Tribunal ought to have kept appeals pending rather than disposing the appeals with above liberty.
7. In view of the above an

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M/s I.T.I. Ltd. Versus Commissioner CGST & Central Excise, Allahabad
Central Excise
2018 (8) TMI 85 – CESTAT ALLAHABAD – TMI
CESTAT ALLAHABAD – AT
Dated:- 9-7-2018
E/70523/2018-EX[SM] – FINAL ORDER NO 71371/2018
Central Excise
Mrs. Archana Wadhwa, Member (Judicial)
Shri S.P. Ojha (Advocate) for Appellant
Shri Gyanendra Kumar Tripathi, AC (AR) for Respondent
ORDER
Per: Archana Wadhwa
After hearing both the sides I find that the appellant were manufacturing excisable goods as well as doing some trading activities. As per the Revenue, the appellant availed Cenvat Credit on common services, which were being utilized by them in the manufacture of excisable goods as well as in providing trading activities. Accordingly,

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t be considered to be exempted services. He also set aside the penalty imposed upon the appellant by observing that the appellant simplicitor did not reverse the amount in terms of Rule 6(3), which cannot be considered to be mala fide on their part.
The said order of Commissioner (Appeals) is impugned order before Tribunal.
3. Learned Advocate appearing for the appellant assails the impugned order on the point of limitation. He submits that there was lot of confusion and the earlier decisions of the Tribunal held that the trading activities cannot be considered to be services, much less exempted services. The law was amended w.e.f. 01.04.2011 and the disputed issue was bona fide issue of interpretation of the provisions of law, no mala fi

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pose a mala fide mind with intention to evade payment of duty. It is well settled that if penalty has been set aside, thus leading to believing the bona fide of the appellant, the normal period of limitation would not be available to the Revenue. As such on this ground as also by taking into account the Tribunal's decisions in the case of Krishna Auto Sales vs. Commissioner of C. EX. S.T., Chandigarh reported at 2015 (40) S.T.R. 1121 (Tri.-Del.) and Commissioner of C. EX., Mangalore reported at 2011 (270) E.L.T. 305 (S.C.), I hold that the demand raised beyond the normal period of limitation is not justified, the same is set aside.
5. However, a part of a demand would fall within the limitation period and the learned advocate has given und

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The Commissioner of GST & Central Excise Versus M/s. Visual Graphics Computing Services India Pvt Ltd
Service Tax
2018 (7) TMI 1394 – MADRAS HIGH COURT – TMI
MADRAS HIGH COURT – HC
Dated:- 9-7-2018
C.M.A. No. 1457 of 2018
Service Tax
S. Manikumar And Subramonium Prasad, JJ.
For the Appellant : Mrs. R. Hemalatha
JUDGMENT
( Judgment of this Court was made by S. Manikumar, J. )
Civil Miscellaneous Appeal is filed against the Final Order No.42324 of 2017, dated 11/10/2017, on the file of the Customs Excise and Service Tax Appellate Tribunal, South Zone Bench, Chennai.
2. Short facts leading to the appeal are that, M/s.Visual Graphics Computing Services India Pvt Ltd., Chennai are the provider of services under the category of Information Technology Software Service.  Appellant had filed refund claim of Rs. 2,50,07,166/-, for the period April 2012 to June 2012, under Rule 5 of Cenvat Credit Rules, 2004. Original Authority rejected part of the refund claim of

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d 18/6/2012″
5. Supporting the prayer, Ms.R.Hemalatha, learned counsel for the appellant submitted that registration is an act by which every manufacturer/assessee/service provider, comes under the ambit of Central Excise Act, 1944 / Finance Act, 1994. In order to avail any substantive benefit, like, CENVAT Credit available under the statute, registration of premises from which the taxable service is rendered is a pre-requisite. Therefore, when registration has not been done as per Section 69 of the Act, the respondent is not entitled for refund of CENVAT read with rule 4(1) of the Rules which render them ineligible far CENVAT credit an input services accumulated prior to registration.
6. Learned counsel for the appellant further submitted that the respondent is not entitled for refund of CENVAT credit in respect of input or input service used, in export of service, without payment of service tax, prior to the date of their being registered with service tax department. According to

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absence of express provision to grant refund, that is difficult to entertain except in the case of export. There cannot be presumption that in the absence of debarment to make refund, in other cases that is permissible. Refund results in outflow from treasury, which needs sanction of law and an order of refund for such purpose is sine qua non. Law has only recognized the event of export of goods for refund of Modvat credit as has been rightly pleaded by Revenue and present reference is neither the case of “otherwise due” of the refund nor the case of exported goods. Similarly absence of express grant in statute does not imply ipso facto entitlement to refund. So also absence of express grant is an implied bar for refund. When right to refund does not accrue under law, claim thereof is inconceivable. Therefore, present reference is to be answered negatively and in favour of Revenue since refund of unutilized credit is only permissible in case of export of goods and for no other reason

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ecedent, in view of Section 35R (3) of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. The subsequent decision of CESTAT, Madras, vide FO No. 42500/2016 dated 20/12/2016 in the case of the same party viz., M/s Scioinspire Consulting Services (India) P Ltd. was also appealed in this Hon'ble Court, by the department vide CMA. Sr. No.54980 of 2017.
9. Learned counsel for the appellant further submitted that a Hon'ble Division Bench of this Court, in the case of Commissioner of Central Excise, Coimbatore Vs Sutham Nylocots, vide final order in CMA No.926/2006, dated 09.01.2014, reported in 2014 (306) E.L.T. 255 (Mad) held that 'if at all the assessee is entitled to any credit it would accrue only subsequently to the date of the registration with the Department'. Hence, refund of unutilized input CENVAT credit taken towards rendering the input services availed and used in providing taxable output services exported would not arise, prior to the da

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considering the provisions, relevant notifications and decisions in M/s.mPortal India Wireless Solutions Private Limited V. Commissioner of Service Tax, Bangalore, reported in 2012 (27) S.T.R.134 (Kar.); in Commissioner of Service Tax V. Tavant Technologies India Private Limited, reported in 2016 (3) TMI 535; in Commissioner, Service Tax Commissionerate V. Atrenta India Private Limited, reported in 2017 (2) ADJ 590; and in Commissioner of Central Excise, Coimbatore Vs. Sutham Nylocots, reported in 2014 (306) E.L.T. 255 (Mad), a Hon'ble Division Bench, answered the above said substantial questions of law, raised therein, against the revenue. Following the decision in C.M.A.No.860 of 2017, dated 10/4/2017, instant Civil Miscellaneous Appeal No.3493 of 2017, filed by the revenue, on the same substantial questions of law is liable to be dismissed.
13. Accordingly, Civil Miscellaneous Appeal is dismissed. No costs. The facts and circumstances of the substantial questions of law are ans

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MGI Infra Private Limited. Versus Assistant Commissioner State Goods and Service Tax Others
GST
2018 (7) TMI 754 – CALCUTTA HIGH COURT – 2018 (15) G. S. T. L. 481 (Cal.) , [2018] 59 G S.T.R. 169 (Cal)
CALCUTTA HIGH COURT – HC
Dated:- 9-7-2018
W. P. No. 10646(W) of 2018
GST
Debangsu Basak, J.
Mr. Boudhyan Bhattacharyya, Mr. Anindya Bagchi for petitioner
Mr. Abhratosh Mazumder, Ld. Addl. A.G., Mr. Prithu Dudhoria, Mr. Debasish Ghosh for the State.
Mr. K. K. Maity, Mr. Bhaskar Prasad Banerjee for respondent
ORDER
The petitioner seeks consideration of an application for extension of time to obtain the final registration under the provisions of the Central Goods and Service Tax Act, 2017 and the West Bengal Goods and S

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itioner to take appropriate steps under the two Acts of 2017.
In such circumstances, it would be appropriate to request the first respondent so far as the State authorities are concerned and 4th respondent so far as the central authorities are concerned to consider and decide the request of the petitioner for grant of permanent registration, in accordance with law.
The first and fourth respondents are requested to take a pragmatic practical and sympathetic to the problems.
The State and the Central Government will consider the grant of final registration under their respective jurisdiction in accordance with the West Bengal Goods and Service Tax Act, 2017 and the Central Goods and Service Tax Act, 2017 respectively.
WP No.10646(W) of 20

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M/s. Alkraft Thermotechnologies Pvt. Ltd. Versus Commissioner of GST & Central Excise
Central Excise
2018 (7) TMI 686 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 9-7-2018
Appeal Nos. E/40311 to 40313/2018 – Final Order Nos. 41949-41951 / 2018
Central Excise
Hon'ble Ms. Sulekha Beevi C.S., Member ( Judicial )
Shri R. Anish Kumar, Advocate for the Appellant
Shri S. Govindarajan, AC (AR) for the Respondent
ORDER
The issue in all these appeals being same, they were heard together and are disposed by this common order.
2. Brief facts are that the appellants are manufacturers of radiators and parts and are availing the facility of CENVAT credit of duty paid on inputs and service tax paid for input services. On verification of records, it was noticed that during the periods September 2009 to February, 2010 and October 2014 to April 2015, May 2015 to February 2016, the appellant had availed CENVAT credit on outward transportation of goods for the goods cleared

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In terms of Rule 2(qa) of CENVAT Credit Rules, 2004 also the 'place of removal' means a factory or any other place or premises of production or manufacture of the excisable goods. The place of removal is required to be determined with reference to 'point of sale'. In the case of stock transfer, the entire goods are transferred to the other manufacturing unit of the appellant and therefore at the factory gate no sale takes place. Thus, in the case when the goods are stock transferred to their own unit for further manufacture, the place of removal cannot be considered as the factory gate. Only if there is a sale, the said point can be considered as a place of removal. To support his argument, he relied upon the judgment of the Hon'ble Supreme Court in the case of Commissioner Vs. Roofit Industries Ltd. – 2015 (319) ELT 221 (SC). The Board Circular No. 1065/4/2018-CX dated 8.6.2018 was also relied by the ld. counsel for the appellant. He further took assistance of the decision of the Tri

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ble goods are to be sold after their clearance from the factory;]
from where such goods are removed”.
Input services after 1.4.2008
'Input service” means,-
(i) services provided or agreed to be provided by a person located in non-taxable territory to a person located in non-taxable territory by way of transportation of goods by a vessel from a place outside India up to the customs station of clearance in India where service tax is paid by the manufacturer or the provider of output service being importer of goods as the person liable for paying service tax for the said taxable services and the said imported goods are his inputs or capital goods; or
(ii) any service used by a provider of output service for providing an output service; or
(iii) any service used by a manufacturer, whether directly or indirectly, in or in relation to the manufacture of final products and clearance of final products upto the place of removal,
and includes services used in relation to modernisati

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sion of one or more of the specified services; or]
[(B) [services provided by way of renting of a motor vehicle], in so far as they relate to a motor vehicle which is not a capital goods”
7. With effect from 1.4.2008, in the definition of input services the words 'upto the place of removal' has been substituted instead of 'from the place of removal'. The ld. counsel has strenuously argued that since there is no sale of goods from the factory gate when the goods are stock transferred to their own unit for further manufacture, the factory gate cannot be considered as place of removal. According to him, Section 4(3)(c) of Central Excise Act, 1944, uses the word 'place of removal' as the place from where the goods are sold. In the appellant's case, the intermediate goods are removed on payment of excise duty on the basis of CAS-4 for further manufacture to their sister unit. It is thus argued that though goods are removed on payment of duty to their sister unit, it does not amount to sa

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t it is admittedly not clearance for sale of the goods. In terms of Section 4(3)(c) of Central Excise Act, 1944, definition of place of removal is as under :
'Place of removal' means :-
(i) a factory or any other place or premises of production or manufacture of excisable goods;
(ii) a warehouse or any other place or premises wherein the excisable goods have been permitted to be deposited without payment of duty;
(iii) a depot, premises of a consignment agent or any other place or premises from where the excisable goods are to be sold after their clearances from their factory.
from where such goods are removed.”
From the above definition, it is clear that where the goods is cleared from factory, but place of removal is determined only a place, where the goods is sold. In case goods is sold from factory, the factory gate is considered as place of removal but though the clearances is made from the factory but goods is not sold from factory, but sold at any other place after r

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rved that credit of service tax paid on transportation of clinker to their sister unit is admissible as there is no case of sale and transfer of property in goods at the factory gate. The relevant portion is as follows:-
“6. After careful consideration of the facts, the submissions of both the sides and the case laws cited, it appears that the facts do not involve any sale of the goods in question. The goods viz. clinker is to be transported from party's premises to their sister unit premises and the respondent viz. Lafarge India Pvt. Ltd. is not taking any consideration for the same as Jojobera unit being their sister unit. It is clear that the definition 'place of removal' is inextricably linked with the fact of 'sale'. When present facts do not involve any sale, one cannot say that the factory premises of the appellant is the 'place of removal'. Therefore, the Revenue's contention that Cenvat credit cannot be allowed on account of transportation services used for transportation of

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expression 'from the place of removal'. As per the said definition, service used by the manufacturer of clearance of final products 'from the place of removal' to the warehouse or customer's place etc., was exigible for Cenvat Credit. This stands finally decided in Civil Appeal No. 11710 of 2016 (Commissioner of Central Excise Belgaum v. M/s. Vasavadatta Cements Ltd.) vide judgment dated January 17, 2018. However, vide amendment carried out in the aforesaid Rules in the year 2008, which became effective from March 1, 2008, the word 'from' is replaced by the word 'upto'. Thus, it is only 'upto the place of removal' that service is treated as input service. This amendment has changed the entire scenario. The benefit which was admissible even beyond the place of removal now gets terminated at the place of removal and doors to the Cenvat credit of input tax paid gets closed at that place. This credit cannot travel therefrom. It becomes clear from the bare reading of this amended Rule, whi

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M/s Chamunda Papers Pvt. Ltd Versus Union Of India And 4 Others
GST
2018 (7) TMI 665 – ALLAHABAD HIGH COURT – TMI
ALLAHABAD HIGH COURT – HC
Dated:- 9-7-2018
WRIT TAX No. 944 of 2018
GST
Hon'ble Bharati Sapru And Hon'ble Dinesh Kumar Singh, JJ.
For the Petitioner : Suyash Agarwal
For the Respondent : A.S.G.I.,C.S.C.,Ramesh Chandra Shukla
ORDER
Heard Sri Suyash Agrawal, learned counsel for the petitioner, Shri Anant Kumar Tiwari, Advocate holding brief of Sri Gyan Prakash, ASGI appearing for the respondent nos.1, 2 & 3 and Shri R.C. Shukla, Advocate appears for the respondent nos.4 and 5.
The petitioner seeks a writ of mandamus directing the GST council respondent no.2 to make recommendations to the State Go

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M/s. Esskay Design & Structures Pvt. Ltd. Versus Commissioner of GST & Central Excise
Service Tax
2018 (7) TMI 621 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 9-7-2018
Appeal Nos. ST/42235 & 42236/2017 – Final Order Nos. 41956-41957 / 2018
Service Tax
Hon'ble Ms. Sulekha Beevi C.S., Member (Judicial)
Shri M. Kannan, Advocate for the Appellant
Shri R. Subramaniam, AC (AR) for the Respondent
ORDER
Brief facts are that the appellants are engaged in providing consulting engineering service. They filed refund claim under Rule 5 of CENVAT Credit Rules, 2004 for the unutilized credit. Show cause notice was issued proposing to reject the refund claim on the following four grounds:-
The assessee has not filed declaration with Deputy / Assistant Commissioner before export
Accumulated CENVAT credit pertains to period prior to registration
The assessee had filed ST-3 return belatedly on 19.2.2016 wherein under col. B1.8, the export of services was declared as

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aration and therefore the proposal for rejection of the refund claim on this ground is not correct. With regard to the second ground that the service recipient and assessee are the same entity, it was clarified by the adjudicating authority that both these are different and distinct entities. In regard to the ground for rejection that the appellant has not mentioned the quantum of export in their ST-3 returns for April 2014 to September 2014, it was held by the adjudicating authority that this was merely an error in filing the return and it was condoned. Thus, the adjudicating authority after analyzing the above three grounds dropped those grounds for rejecting the refund claim. However, the department has not filed any appeal against this before the Commissioner (Appeal) but the Commissioner (Appeals) has taken up all these grounds and has erroneously held against the appellant even though there is no appeal filed by the department.
3.2 With regard to the ground for rejection that th

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grounds and held against the appellant which is not proper. The department having not filed any appeal against the Order-in-Original, I find force in the contention of the ld. counsel. Thus, the rejection of refund as held by the Commissioner (Appeals) in the impugned order on the three grounds is incorrect and requires to be set aside, for the reason that the department has not appealed against the order passed by the adjudicating authority.
6.1 The issue that remains for consideration is whether the appellant is eligible for refund for the credit availed before obtaining registration of the premises. The said issue stands covered by the judgment relied by the ld. counsel for the appellant. Following the same, I am of the view that the rejection of refund claim cannot sustain and requires to be set aside.
7. From the above discussion, I hold that the impugned order which rejects the refund claim filed by the appellant requires to be set aside, which I hereby do. The impugned order

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M/s. Rane Brake Lining Ltd. Versus Commissioner of GST & Central Excise
Central Excise
2018 (7) TMI 611 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 9-7-2018
Appeal No. E/40355/2018 – Final Order No. 41955 / 2018
Central Excise
Hon'ble Ms. Sulekha Beevi C.S., Member (Judicial)
Ms. S. Yogalakshmi, Advocate for the Appellant
Shri R. Subramaniam, AC (AR) for the Respondent
 
ORDER
Brief facts are that the appellants are manufacturers of Railway Brake Blocks, Disc Pads and Clutch Facings. They were availing the facility of CENVAT credit on inputs, capital goods and input services. Show cause notice was issued proposing to disallow the credit on various input services and after due process of law, the original authority allowed the credit on various services. The credit in respect of service tax paid on Director Sitting Fees as well as on premium for product liability insurance was disallowed. In appeal, Commissioner (Appeals) upheld the same. Hence this

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id for director sitting, she submitted that they have discharged the liability under reverse charge mechanism and it is incumbent upon the Director to attend the meetings and therefore the same is directly connected to the manufacturing activity of the appellant. To support her argument, she relied upon the decision in the case of SKN Organics P. Ltd. & Anr. Vs. Commissioner of Central Excise, Puducherry vide Final Order Nos. 41948 & 41949/2016 dated 21.10.2016.
3. The ld. AR Shri R. Subramaniam supported the findings in the impugned order. He adverted to para 7 of the impugned order and submitted that once the goods are sold and the products are handed over to the buyers, any service availed by them would be a post-manufacturing activity and therefore the insurance policy taken for product liability cannot be held to be an input service. With regard to the director sitting fee, he submitted that this has no nexus to the manufacturing activity.
4. Heard both sides.
5. The first issu

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facturer. Further, in the case of Granules India Ltd. (supra), the Tribunal has held that the credit availed on directors' liability insurance is eligible. I find that the disallowance of credit on this input service is unjustified and requires to be set aside, which I hereby do.
6. The second issue for consideration is regarding the eligibility of credit on service tax paid on Director Sitting Fees. The said issue is covered by the decision in the case of SKN Organics P. Ltd. (supra). Further, it is also to be stated that it is the duty of the director to attend the meetings and therefore the service tax paid on such fees is eligible for credit.
7. From the discussions made above, I am of the view that the disallowance of credit on the impugned services is incorrect and requires to be set aside, which I hereby do. The impugned order is set aside and the appeal is allowed with consequential relief, if any.
( Dictated and pronounced in open court )
Case laws, Decisions, Judgement

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M/s. Hinduja Foundries Ltd. Versus Commissioner of GST & Central Excise
Central Excise
2018 (7) TMI 610 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 9-7-2018
Appeal No. E/40354/2018 – Final Order No. 41953 / 2018
Central Excise
Hon'ble Ms. Sulekha Beevi C.S., Member ( Judicial )
Shri M. Kannan, Advocate for the Appellant
Shri R. Subramaniam, AC (AR) for the Respondent
ORDER
Brief facts are that the appellants are engaged in manufacture of cast articles of iron and aluminium. They purchased three machineries (capital goods) in the year 1996 – 1997. In 2005, they cleared those capital goods to M/s. Shanthi Casting Works, Coimbatore which is their job worker under returnable delivery challans along with excise in

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show cause notice was issued to the appellant for recovery of the credit to the tune of Rs. 5,92,946/- along with interest and for imposing penalties. After due process of law, the original authority confirmed the demand, interest and imposed penalties. In appeal, Commissioner (Appeals) upheld the same. Hence this appeal.
2. On behalf of the appellant, ld. counsel Shri M. Kannan submitted that when the capital goods were returned to the appellant's factory by the job worker, the goods were actually returned but the documents evidencing such return of goods is not traceable. He prayed that the whole issue arises out of an error in accounting and therefore may be condoned.
3. The ld. AR Shri R. Subramaniam supported the findings in the impu

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ter hearing the submissions and perusing the records, it is brought out that the appellants after shifting the capital goods to their job worker in 2005 has issued a returnable delivery challan with central excise invoice and also paid duty. Thereafter in 2011, though invoices were issued showing that the capital goods were turned to the appellant's factory, they have not been actually returned. The only explanation given by the appellant is that the documents evidencing that the goods have been returned is not traceable. Such a flimsy explanation is not acceptable. On the whole, it is seen that the demand raised requires no interference. The appellant has not been able to explain how and why they have availed such excess wrongful credit. I

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Sanjay Kumar Bhuwalka, Neeraj Jain Versus Union of India
GST
2018 (7) TMI 589 – CALCUTTA HIGH COURT – 2018 (362) E.L.T. 568 (Cal.) , 2018 (19) G. S. T. L. 582 (Cal.)
CALCUTTA HIGH COURT – HC
Dated:- 9-7-2018
CRM 3327 of 2018, CRM 3328 of 2018
GST
Shivakant Prasad, J.
For the Petitioner : Mr. Sekhar Basu Mr. Debasish Roy Mr. Rajdeep Majumder Mr. Danish Haque Mr. Arindam Dey Mr. Mayukh Mukherjee Mr. K.L. Mukherjee Mrs. Aroshi Rathore Mrs. Kriti Mehorotra
For the Opposite Party : Mr. K.K. Maity
ORDER
Shivakant Prasad, J.
The above two cases under provision of Section 439 Cr.P.C. have been filed by two separate petitioners under the same Memo of Arrest by the opposite party, Union of India whereunder petitioners have prayed for enlarging them on bail, inter alia, on the grounds stated in the petitions. Both the cases were heard analogously as the legal issue and the factual aspects of the case are common. So they can be disposed of by a common judgment.
To speak

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Works, M/s. Amazonite Steel Pvt. Ltd., M/s. Corandum Impex Pvt. Ltd., M/s. Cuprite Marketing Pvt. Ltd. and M/s. Binky Exim Pvt. Ltd. were all part of a well thought out conspiracy aimed at duping the exchequer by way of creation of a complex web of inter-connected companies engaged in fraudulent issuance of tax invoices without supply of goods or services to enable the recipient companies to avail and utilize fake input tax credit leading to loss of Government revenue.
It is contended that the investigation revealed that all the above fake companies were being controlled and run by a group of persons including Shri Sanjay Kumar Bhuwalka and Shri Neeraj Jain being the petitioners herein.
Summons were issued to the petitioners under Section 70 of the CGST Act, 2017 read with Section 174(2) of the said Act and in their statements, they have admitted that they were looking after and controlling the business activities of the companies.
It was further revealed that various companies wer

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der :
“69. Power to Arrest –
(1) Where the Commissioner has reasons to believe that a person has committed any offence specified in clause (a) or clause (b) or clause (c) or clause (d) of sub-section (1) of section 132 which is punishable under clause
(i) or (ii) of sub-section (1), or sub-section (2) of the said section, he may, by order, authorise any officer of central tax to arrest such person.
(2) Where a person is arrested under sub-section (1) for an offence specified under subsection (5) of section 132, the officer authorised to arrest the person shall inform such person of the grounds of arrest and produce him before a Magistrate within twenty-four hours.
(3) Subject to the provisions of the Code of Criminal Procedure, 1973 (2 of 174),-
(a) where a person is arrested under sub-section (1) for any offence specified under sub-section (4) of section 132, he shall be admitted to bail or in default of bail, forwarded to the custody of the Magistrate;
(b) Commissioner

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d non-payment, whatever be the means applied for such non-payment confers right on the government, both Central and State, to realize the revenue whereas penal provision of arrest and detention is only when there is violation of the provision under the statute which is not the intention of the legislature to achieve the fiscal object regardless of the existence of a provision for the arrest of the offender in the Act.
It has been argued that it is trite law that a provision of law which seeks to apply will lead to deprivation of liberty of a citizen, ought to be construed strictly regard being had to the mandate of Article 21 of the Constitution of India, namely, the observance of “procedure established by law”.
Under Section 69 of the Act the functionary is the Commissioner as defined in Section 2(24) of the Act, “Commissioner” means the Commissioner of central tax and includes the Principal Commissioner of central tax appointed under section 3 and the Commissioner of integrated tax

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f Arrest with the sentence “proposal at A approved”. It is further submitted that while interpreting penal law protection of liberty has to be accepted as the provision of the statute provides that the authority must have reasonable believe and relied on the expression “reason to believe” means jurisprudentially as observed by the Hon'ble Supreme Court in the case of Joti Parshad vs. State of Haryana reported in 1993 Supp(2) Supreme Court Cases 497 at paragraph 4 of extract of the observation in the cited judgment which reads thus-
“4. Under the Indian penal law, guilt in respect of almost all the offences is fastened either on the ground of “intention” or “knowledge” or “reason to believe”. We are now concerned with the expressions “knowledge” and “reason to believe”. “Knowledge” is an awareness on the part of the person concerned indicating his state of mind. “Reason to believe'” is another facet of the state of mind. “Reason to believe” is not the same thing as “suspicion”

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in of probable reasoning leading to the conclusion or inference about the nature of the thing. These two requirements i.e. “knowledge” and “reason to believe” have to be deduced from various circumstances in the case……”
Bearing in mind the principle laid in the said observation, it is suffice to say such “reasons to believe” has to be formed by the Commissioner after the records of such inspection and search are communicated to him under sub-section 10 of section 67 of the Act or in any other manner the materials are placed before him for the formation of his “reason to believe”. When the Commissioner or the delegatee has reason to believe that the person concerned has committed an offence which necessitates arrest, an order has to be passed and such order logically, reasonably and prudentially must be informed by reasons or must contain the reasons which have emanated from “reasons to believe” entertained by the authority concerned.
Adverting to the Memo of Arrest and the order

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e Additional Director General Goods and Service Tax Intelligence to consider all the materials available with regard to the accusations of commission of the offences mentioned in section 69 of the Act and come to his own conclusion for effecting arrest unhindered, unaffected by interference from any quarter.
It is further contended that the entire exercise by the officers sub-ordinate to the Additional Director General Goods and Service Tax Intelligence and the ultimate signature on the document by the Additional Director General Goods and Service Tax Intelligence are merely topsy-turvy, deplorable administrative exercise of power and a threat to the Constitutional observance of “procedure established by law”. It is further submitted that despite delegation of powers of the Commissioner on officers sub-ordinate to him, the structural edifice of the statute presents the Commissioner to be at the helm of affairs.
To buttress such contention, the attention of this Court has been drawn t

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and Customs appointed the officers in the Directorate General of Goods and Services Tax Intelligence as Central Tax officers and invested them with all the powers under the said Act and the Rules made thereunder. In terms of the said Notification, the post of Additional Director General, Goods and Services Tax Intelligence, is equivalent to the post of Commissioner. Accordingly, the said Additional Director General, Directorate General of Goods and Services Tax Intelligence, has been empowered under section 69 of the Act to exercise all the powers invested in the Commissioner of Central Tax. Therefore, he was well within his jurisdiction while directing the concerned officers to arrest the said persons.
In response to the interpretation as to reasonable belive Mr. Maity submitted that the office note reveals that the said Additional Director General, based on the facts brought out from the investigation conducted by the DGGI, had reasons to believe that the petitioners have committed

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T 618 Calcutta wherein the Hon'ble Division Bench held that whether the seizure under Section 110 of the Customs Act, 1962 was under a reasonable belief or not is a justiceable one, but once it is held that there was material, relevant and germen the sufficiency of the material is not open to judicial review.
Having regard to rival contentions I am of the considered opinion that 'reasonable belief' or reason to believe as a standard to arrest requires that arresting officer subjectively believe that the suspect has committed the offence and that objectively reasonable person would reach the same conclusion. Reasonable grounds do not require as much evidence as a prima facie case but do require that thing believed to be more likely than not.
Therefore, in the light of the aforesaid contentions, the submission of the petitioners that no reason has been assigned for arrest has no legs to stand upon, particularly in view of the fact that the said office note itself clearly provides t

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have been arrested and further investigation is required to reveal whom the petitioners have supplied all these fake invoices.
It is also submitted that they are either labourer of jute mill or tea seller or unemployed aged between 20 to 30. In their statement, they stated that through agent of the accused Shri Sanjay Bhuwalka they met the accused and submitted copies of their personal documents like PAN Card, Voter Id Card etc. and signed many other documents. In exchange, the accused promised to pay them Rs. 4,000/- per month. Further, the Department has recorded statement of Bank Manager of Laxmivilas Bank on 11.05.2018, where he categorically mentioned that Bank accounts relating to the fake/shell companies were operated either by the accused themselves or by their employee and in the event petitioners are enlarged on bail, there is every probability of tampering the documents and the recipient who have received the fake tax invoices from them and wrongfully availed the input tax

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e considering the question of grant of bail to an accused it should be seen whether it is desirable in National interest or not.
In the case of Rajesh Goyal -Vs- Union of India reported in 2012 (284) E.L.T. 164 Raj it has been observed that the accused petitioner has evaded the excise duty causing a great loss to the public exchequer. Hence, the offence being of grave nature, the petitioner should not be allowed bail. The Hon'ble Court also held that the act of the petitioners may be termed as `Royal Thievery' which is opposed to both democracy and society.
In the case of Subhas Chandra Bal Chandra Badjata -Vs DGCE (Intelligence) Mumbai reported in 2015(324) E.L.T 307-Born the Hon'ble Court has observed that the material collected shows that false record was created for evasion of excise duty. Thus it is case of forgery and fraud.
In the case of Directorate of revenue Intelligence -Vs- Chander Prakash Verma reported in 2016 (332) E.L.T 693 Del. the Hon'ble Court has

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and 138 of the Act the object and reason of this Act is obviously to realise the revenue to the Government Exchequer and bearing in mind the provision of compounding nature of the offence under Section 138 of the Act.
I am fully aware of the observation of the Hon'ble Supreme Court that economic offences constitute a class apart and need to be visited with a different approach in the mater of a bail. The economic offence having deep rooted conspiracy and involving huge loss of public funds needs to be viewed seriously and considerd as grave offences affecting the economy of the country as a whole and thereby posing a serious threat to the financial health of the country. While granting bail, the Court has to keep in mind the nature of the accusations, the nature of evidence in support thereof the severity of the punishment which conviction will entail, the character of the accused, reasonable apprehension of the witnesses being tampered with, the larger interest of the public/ State

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Gst Refund
Query (Issue) Started By: – Vinay Jaindani Dated:- 8-7-2018 Last Reply Date:- 9-7-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Sir, As per notification no. 40/2017 Central Tax Rate the merchant exporter can purchase goods at concessional rate of 0.10 percent from manufacturer exporter subject to certain condition including a condition which states:-
''the registered recipient shall indicate the Goods and Services Tax Identification Number of the registered supplier and the tax invoice number issued by the registered supplier in respect of the said goods in the shipping bill or bill of export, as the case may be'' my merchant exporter has not fulfiled the above condition because of which t

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custom house to be amended :
Provided that no amendment of a bill of entry or a shipping bill or bill of export shall be so authorised to be amended after the imported goods have been cleared for home consumption or deposited in a warehouse, or the export goods have been exported, except on the basis of documentary evidence which was in existence at the time the goods were cleared, deposited or exported, as the case may be."
Therefore you may request the proper office permission for amending the Bill of Export.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
My view is also on line with Shri Rajagopalan Sir,
Reply By YAGAY and SUN:
The Reply:
Section 149 of customs act is relevant in this matter.
Discussion Forum – Knowledge S

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Conference Sponsorship from Outside India
Query (Issue) Started By: – Ajay Sachdeva Dated:- 7-7-2018 Last Reply Date:- 6-8-2018 Goods and Services Tax – GST
Got 10 Replies
GST
We are proprietorship firm. We are organizing an international Conference at New Delhi next year ie Feb 2019. We are expecting to receive sponsorship for the same from some overseas companies. Do we need to charge them GST for the same?
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
In my view GST is payable on reverse charge basis.
Reply By Ajay Sachdeva:
The Reply:
Does the reverse charge mean that we charge the client and they can claim back. How does it work?
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Under Reverse charge mechanism the servi

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by' your Indian firm and not against any 'services received' by it. This fact, therefore, makes your Indian entity a service provider rather than a service recipient.
It is interesting to note that sponsorship service is one category that has created doubts ever since its inception as to who is the service provider and who is the receiver of services. Please note that in case of sponsorship services, the provider is the person who 'receives the sponsorship money' and the person paying the money is 'service receiver'. Even technically, it is only a receiver of services (here sponsorship service in your case) who makes the payment (the foreign companies, in your case).
Therefore, RCM applicability is absolutely

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Polypropylene Leno Bags Classified Under Tariff Sub Heading 6305 33 00: No Plastic Coating or Lamination Required.
Case-Laws
GST
Classification of Polypropylene Leno Bags – ‘PP Leno Bags’, if specifically made from woven Polypropylene fabric using strips or the like of width not exceeding 5 mm and without any impregnation, coating, covering, or lamination with plastics, are to be classified under Tariff Sub Heading 6305 33 00.
TMI Updates – Highlights, quick notes, marquee, anno

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Rakhi in Puja Thali Not Exempt from GST; Considered Non-Essential Component of Puja Samagri.
Case-Laws
GST
Levy of GST on Rakhi – Mere inclusion of “Rakhi” in a Puja Thali at the discreti

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5% Concessional Tax Rate Applies to Interstate and Intrastate Sales to Specified Institutions, Eligible for ITC Benefits.
Case-Laws
GST
Levy of IGST – Concessional rate of tax – supply of goods to specified institutions – Is the concessional tax rate of 5% as given under N.No. 47/2017 is applicable only for Interstate sales i.e., on IGST or also applicable for sales within the state i.e., on SGST & CGST? – Both type of supplies are eligible for concessional rate with Input Tax Credit (I

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GST Classification: Lyophilizers for Life-Saving Drugs Fall Under Tariff Heading 8419; 18% Total GST Rate Applied.
Case-Laws
GST
Classification of goods – Rate of GST – Lyophilizers-Machinery

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cancellation of registration
Query (Issue) Started By: – bk r Dated:- 7-7-2018 Last Reply Date:- 9-7-2018 Goods and Services Tax – GST
Got 15 Replies
GST
A ltd company is registered with GST having a principal place of business in Delhi North and also showing/having three additional places of buisness at Delhi south, east and west . The additional place of business was earlier registered with the Central Excise as Registered dealer and we took also cenvat credit in respect of stack available as on 30.06.2017 as transitional credit in respect of purchase made by these Additional place of business. The department asked telephonicaly to submit the record we submit all the documents regarding stock receipt and invoices regarding puchase of material in respect of additional place of business as there was neary about 6 crores of amount was involved in tran-1. There is no physical business activity at the principal place of business and only documents kept here and file return. t

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m the additionl place of business and it is true. We also accepted that the principal place of business is a vacant plot . Now the department issued order regarding cancellation of GST registration w.e.f. 01.07.2017 and also initiated action for recocvry of trans I credit and other ITC availed during 01.07.2017 till date .Whether the department action for cancellation of registration w.e.f. 01/07/2017 is correct and proposal regarding recovery of Trans 1 credit and other ITC availed during 01/07/2017 to March 2018 is also correct. My additional place of business is working at the declared place.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
In my view the action of the Department is correct since your principal place of business is a vacant one. You may file appeal contending that the credit sought to be availed on TRAN-1 is genuine. Or you may file a writ petition seeking the direction to consider the credit by the Asssessing Officer.
Reply By YAGAY and SUN:
The Reply:
We endorse

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manner. Cancellation of registration from the date of issue, is technical matter and it cannot monetary loss to you. Your invoices were valid and are valid. Substantive right cannot be forfeited due to such technical infractions.There is no other eescape route except to face litigation.
Reply By KASTURI SETHI:
The Reply:
Dear Querist, .Two factors can tilt the case in your favour. 1.Date of issuance/communication of order of cancellation of registration retrospectively. 2.Your bona fides.
Reply By bk r:
The Reply:
Thanks sethi sir,
I admitted in the statement tendered before the CGST officer that the plot was vacant on 01.07.2017 and plot owner also give statment that as on 01.07.2017 the plot was vacant .
Reply By bk r:
The Reply:
Further the department initated action when the 3 letters sent by department for trans 1 enquiry was received back undelivered to the department . and then department came to know about this.
Reply By KASTURI SETHI:
The Reply:
O.K. You have admitt

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ocate.
Reply By bk r:
The Reply:
sir there is no room in plot, only boundry wall of 3 feet height with one main gate. There is no rent agreement with the plot owner regarding rent w.e.f. 01.07.2017. however additional place of business was declared at the time of registration and they actually exixts.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
When the registered principal place of business is not in existence how the Department will release you. It will do your duty. In respect of credit you have no other option except to file a writ petition before the High Court.
Reply By KASTURI SETHI:
The Reply:
I agree with Dr.Govindarajan Sir. You should have not declared such vacant plot as principal place of business. Now this lapse is on records. It puts question mark on genuine transaction for future as well as present. You may not have done any wrong transaction but facts on records indicate othewise. What is the logic or purpose/reason declaring vacant plot as principal place of

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

Vide Notification No. 09/2018-Central Tax, dated 23.01.2018 the Central Government notified the following websites for the particular purposes-
* www.gst.gov.in – The Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns and computation and settlement of integrated tax;
* www.ewaybillgst.gov.in – the Common Goods and Services Tax Electronic Portal for furnishing electronic way bill.
The website www.gst.gov.in is managed by the Goods and Services Tax Network, a company incorporated under the provisions of section 8 of the Companies Act, 2013.
The web site www.ewaybillgst.gov.in is managed by the National Informatics Centre, Ministry of Electronics & Information Technology, Government of India.
The above said notification came into effect from 16.01.2018.
Features of the portal
The following are the feature

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n-
* Latest updates as on a particular date;
* Updates as on a particular date;
* Previous updates.
In the Home page the following important links are provided-
* Website policy;
* GST common portal;
* National Portal;
* Security Policy;
* Central Board of Excise;
* National Informatics Centre;
* Disclaimer;
* State tax websites;
* Goods and Services Network.
Laws
In the 'Laws' menu bar-
* Rules-
* In this menu, any person select the Rules for any State by drop down selection;
* Forms-
* The following forms are available in this menu-
* EWB 01;
* EWB 02;
* EWB 03;
* EWB 04;
* ENR 01;
* INV 01.
* Notification-
* In this menu, the notifications issued by any State can be searched by drop down selection.For example, if 'Tamil Nadu' is selected, then the website of Tamil Nadu GST will appear and one can obtain any information relating to GST in respect of Tamil Nadu system.
* Circulars-
* In this menu, the circulars issued by any Stat

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any State can be searched by drop down selection.For example, if 'Tamil Nadu' is selected, then the website of Tamil Nadu GST will appear and one can obtain any information relating to GST in respect of Tamil Nadu system.
* Tools-
* In this menu, the bulk generation tools are available-
* Attributes-
* E-way Bill attributes;
* Consolidated e-way bill attributes;
* Sample JSON files-
* E-way Bill JSON formats;
* Consolidated e-way bill JSON format;
* Vehicle No. updation JSON format;
* JSON Preparation tools-
* Eway bill JDON preparation;
* Consolidated e-way bill JSON preparation;
* Masters JSON preparation;
* Vehicle No. updation JSON preparation.
Search
* In this menu the following are available-
* Tax payers search;
* Transporters;
* Products and Services;
* Notifications;
* E-way bill.
Contact us
In this menu 'help desk' number is provided which is 0120-4888999. Another menu is Log/Track the issue in GST. One may get specific State helpdes

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In re : VSERVGLOBAL PRIVATE LIMITED
GST
2018 (11) TMI 959 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (19) G. S. T. L. 173 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 7-7-2018
GST-ARA- 03/2018-19/B- 59
GST
MR. B. V. BORHADE, (MEMBER) AND MR. PANKAJ KUMAR, (MEMBER)
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services
Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by VSERVGLOBAL PRIVATE LIMITED., the applicant, seeking an advance ruling in respect of the following question.
The Applicant Vserv request this Hon'ble Authority to decide as to whether the aforesaid services proposed to be rendered qualify as 'Zero Rated Supply in terms of Section 16 of the Integrated Goods & Service T

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9;Clients'). Clients are engaged in Trading of Chemicals and other products in International Trade. Vserv will come into picture after finalization of Purchase / Sale order by a Client. Vserv will undertake following activities for and on behalf of Clients.
a) Get SDF (Sales Detail Form) & PDF (Purchase Detail Form) from concerned party
b) Generate order no in VOSS
c) create PO (Purchase Order) & SC (Sales Contract) in VOSS
d) Send SC (Sales Contract) & PI (Proforma Invoice) to customer & get Sl (Shipping Instructions) as
e) Send PO (Purchase Order) to supplier & Seek PI (Proforma Invoice) & Share SI (Shipping Instructions)
f) Liaise with supplier for Cargo Readiness
g) Liaise with inspection authorities if pre-shipment inspection is needed
h) Inform Customer on tentative schedule
i) Process payment request in VOSS
j) send payment request to Client.
k) provide forwarder/ carrier nomination to supplier if FOB (Free on Board)
l) Seek carrier booking details and share with

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ll be done directly by Clients and Vserv will maintain accounting of the same. Vserv will be compensated for its services either on fixed monthly basis or as per the volume of transactions, on mutually agreed terms, in convertible foreign Exchange.
Question-
3. Applicant Vserv request this Hon'ble Authority to decide as to whether the aforesaid services to be rendered qualify as 'Zero Rated Supply in terms of Section 16 Of the Integrated Goods & Service Tax Act, 2017 or not.
Statement containing the applicant's interpretation of law and/or facts. as the case may bet in of the questions(s) on which advance ruling is required
4. As per legal understanding of Applicant, the aforesaid services rendered by the Applicant qualify as “Zero Rated Supply” in terms of Section 16 Of the Integrated Goods & Service Tax Act, 2017 for the reasons stated hereinafter. The provisions contained in Section 16 of the Act, ibid are reproduced below for ready reference.
“16. Zero rated supply

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d claim refund of such tax paid on goods or services or both supplied,
in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder. ”
As per the above stated legal provisions Export of Services is a zero rated supply. The phrase Export of Service' is defined in Section 2(6) Of the Act, ibid and read as under:
“(6) “export of services” means the supply of any service when, –
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8.
6. It is humbly submitted that the services rendered by applicant satisfy all the aforesaid conditions, as explained her

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in India and having its registered office in Mumbai. The Appellant's Mumbai office is registered under GST. The orders for supply of said services are received in its Mumbai office and also services are executed from its office situated in Mumbai. Therefore, the condition that the location of service provider should be in India is met.
8. The recipient of service is located outside India- The phrase 'location of Recipient of service' is defined in Section 2(70) of the CGST Act, 2017 which reads as under.
“(70) “location of the recipient of services” means,
(a) Where a supply is received a place of business for which the registration has been obtained, the location of such place of business;
(b) Where a supply is received a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment;
(c) Where a supply is received at more than one establishment, whether the place of business fixed es

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e of supply of service id outside India – As per sub-section (2) of section 13 of Act, ibid, the place of supply of serviced – other than those specified under sub-section (3) to sub-section 13, will be the location of recipient of services. In simple terms, if the service is not specified under any sub-section (3) to (13) then place of supply will be the location of service recipient. The aforesaid services, are prime-facie not specified under any of the sub-section (3) to (13) of section 13. The government have notified classification scheme of services, section 8 of the said classification scheme covers business and production services. The relevant entries of said section are reproduced below.
Section 8: business and production services
Heading no. 9981
 
Research and development services
***
 
 
Heading no. 9982
 
Legal and accounting services
Group 99821
 
Legal services
Group 99822
 
Accounting, auditing and bookkeeping services
&nb

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and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8. The said Explanation 1 to Section 8 of Integrated Goods and Service Tax Act, 2017 reads as under:
'Explanation 1. – For the purposes of this Act, where a person has, –
(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or
(iii) an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory,
Then such establishments shall be treated as establishments of distinct persons.
11 (a). As already submitted the supplier of service and recipient of services are separate incorporated companies and therefore they are not merely establishment of distinct person in terms of aforesaid statutory provisions. Thus the said condition is also sati

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ersons, but does not include a person who supplies such goods or services or both or securities on his own account;
2. At per the above definition, a person who arranges or facilitates supply of goods or services between two persons is an intermediary. The said definition also contains an exclusion as per which the person who supplies goods or services on his own account is not included.
3. In the instant case, the applicant proposes to maintain accounts of its client, liaison with buyers and sellers of clients with respect to delivery, transportation of goods and payment etc. All the said services are proposed to be provided as a package and are bundled in natural course of business. Therefore, the said services are “Composite Supply' as defined in Section 2 (30) of the Central Goods & Service Tax Act, 2017 and therefore tax would be levied in terms of Section 8 of the Act, ibid. above referred statutory provision are reproduced below for ready reference.
“(30) “composite sup

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ant proposes to supply “Business Support Service' comprising of 'Back Office Support' and “Accounting' which is its Principle Supply. If these services also facilitate supply of goods then it is only an incidental supply to the Principle Supply. As already submitted, the applicant would come into picture only after finalization of Purchase / Sale deals by the clients. They said 'Business Support Services' would be provided by applicant to its client would be on Principle to Principle basis. Therefore, the instant case is covered by exclusion clause in definition of 'Intermediary'
5. It is submitted that the term 'Intermediary' was also defined in aforesaid definition is exactly same, as it was in Service Tax Regime. In Service Tax the term was defined in Rule of the Place of Provision Rules, 2012 which read as under.
(f) “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provisi

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entical issue to the case in hand came before the Hon'ble Authority for Advance Ruling In Re: GoDaddy India Web Service Private Ltd, reported as 2016 (46) S.T.R, 806 (A.A.R.) (copy enclosed.).
8. In GoDaddy (supra) the applicant proposed to provide support services in relation to marketing, branding, offline marketing, oversight of quality of third party customer care Center and payment processing, on principal to principal basis. Those services were proposed to be provided with the sole intention of promoting the brand GoDaddy US in India and thus augmenting its business in India. Therefore, those services proposed to be provided by the applicant, would support the business interests of GoDaddy US in India. The said service were proposed to be provided as a package. Hon'ble Authority accepted that the said services are bundled in natural course of business. The relevant portion of the said Ruling is reproduced below for ready reference.
“11. Applicant proposes to provide s

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as a package and the payment for the entire package would he a consolidated lump sum payment. Applicant submits that in view of all these indicators, service provided by them to GoDaddy US is a bundle of services, which is bundled in normal course of business. This point has not been controverted by the Revenue. We agree with the submissions of the applicant that proposed services are a bundle of services, bundled in normal course of business and not intermediary service.
19. It observed that business support services are proposed to be provided by the applicant to GoDaddy US on principal to principal basis. It is the main service. Further, applicant is not concerned in respect of services provided by GoDaddy US to Indian Customers, which relates to domain name registration, transfer services, web hosting services, designing services, etc. In case, applicant was providing service to Indian Customers, he would have received “consideration” from Indian Customers. Fact is that no remun

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have already started serving M/s. Vikudha Overseas Corporation Limited, Hong Kong. A copy of Contract was also submitted. The trading business of M/s. Vikudha in more than Twenty Countries and majority of its business is done with the suppliers / customers situated in countries other than India. In GoDaddy (supra) the applicant had to deal with Indian Customers its client. Whereas, in the instant case, the buyers / sellers are not limited to India, but are spread across the Globe. Thus, the case of applicant is at much better footing.
11 It is correct that the Ruling of Authority for Advance Ruling is binding only in respect of Applicant. However, it certainly has persuasive value. It should also be taken into consideration that Authority for Advance Ruling under Service Tax was consisting of very senior Tax Officers and was headed by a retired Supreme Court Judge. Therefore, interpretation of law by such a senior body should be given due regard. Attention is also drawn to the releva

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ies. However, it has also been rightly held by the Authority itself that this does not mean that a principle of law laid down in a case will not be followed in future.
12 From the above, it is clear that the applicant cannot be termed as 'intermediary' and therefore Sub-section (8) of Section 13 Integrated Goods & Service Tax, 2017 have no application. In the instant case, the services being provided is not specified under any of the Sub-section from (3) to (13), Section 13 of the Integrated Goods & Service Tax, Act, 2017. Therefore, place of supply of these services will be determined under Section 13(2) of the Act, ibid and would be the location of Recipient of services which is outside India.
13 In view of the above and submissions already made, the Hon'ble Authority is humbly prayed to rule that the Services being provided / proposed to be provided are 'Zero Rated Supplies'.
3. CONTENTION – AS PER THE CONCERNED OFFICER
The submission, as reproduced verba

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is sought under this Act, shall be in respect of, –
(a) Classification of any goods or services or both;
(b) Applicability of a notification issued under the provisions of this Act;
(c) Determination of time and value of supply of goods or services or both;
(d) Admissibility of input tax credit of tax paid or deemed to have been paid;
(e) 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.
The issue posed by the applicant before Advance Ruling Authority, is pertains to Zero Rated supply, it means it relates to place of supply, only above stated (a) to (g) questions are sought for Advance Ruling before Hon. Advance Ruling Authority, place of supply is not covered under the above (a) to (g), hence, my

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export of services, to qualify zero rated supply Export of service is The main condition. It means services should be exported.
In the instant case it is not happened, firstly we have to see the definition of Export of services; same has reproduced for ready reference.
As per section 2 (6) Export of services means the supply of any service when, –
* The supplier of service is located in India;
* The recipient of service is located outside India;
* The place of supply of service is outside India.
* The payment for such services has been received by the supplier of service in convertible foreign exchange; and
* The supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation I in section 8.
In this case supplier M/s vservglobal Pvt ltd id private limited company situated at 201, Dhantak plaza, Opp. Waman Center, Makwana road Andheri (E), Mumbai-400059. The said firm located in India.
In this case supp

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(i) the location of the recipient where the address on record exists; and
(ii) the location of the supplier of serviced in other cases.
Section 12 (1) – place of supply of services where location of supplier or location of recipient is within India.
Section 12 (2) – place of supply of services If not prescribed in subsection (3) to (14). This section provides place of supply of services for all supplies of services where the location of supplier and recipient is in India.
1. If the location of supplier of service and the recipient is in India then the place of supply of serviced shall be determined under section 12 of IGST act.
2. when the place of supply of service cannot be determination under section 12(3) to 12(14) i.e. when there is no special provision specified for determination of place of supply then place of supply determined in section 12(2) which is as follows:
a. where the services made to registered person – location of such recipient.
b. where the services

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ted, having registered office at Unit No. 1201-02A, 12th Floor, The Centrum, 60 Wyndham Street, and Central Hong Kong, China. on website of company it is learnt that, company has operated throughout world, and it is operated his business in India. The company has stated in website pertains to his business as under:-
Some content of website http://vvww.vikudha.com/global-presence/ has reproduced for ready reference: – Vikudha India is devoted to sourcing and trading varieties chemical products from India and subcontinent countries. The products are ranging from food & agriculture, pain & coating, water treatment, consumer care products raw materials. India is being a home ground for our well trained and experienced traders, those who are having close relationships with manufacturers. The thorough local chemical industry knowledge makes our India team to know the season, production cycle, market fluctuations, rules and regulations changes in advance and this helps ourselves to put ahead

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Ltd to M/S Vikhudha India Trading Limited, which is operated in India for M/S Vikhudha Overseas Corporation Limited. It means all services provided to M/S Vikudha India Trading Limited by the Applicant. It means location of recipient of service is in India, at 201, Dhantak Plaza, Opp Waman Center Makwana Road, Marol, Andheri (E), and Mumbai.
It is also pertinent to note that, The Applicant of this ARA M/S Vservglobal Pvt Ltd, is private Limited company situated at 201, Dhantak Plaza, Opp. Waman Centre, Makwana Road Andheri (E), and Mumbai-400059
Another condition of location of the recipient of service is located outside India, and the place of supply of service is outside India is not fulfilled. Only mere agreement by foreign company with Indian is not suffice to determine Export of services.
It is also seen from the bank account of the M/S Vservglobal Pvt Ltd, that payment for such service has not been received by the supplier of service in convertible foreign exchange.
The last

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r union territory and any other establishment being a business vertical registered within that state or union territory, then such establishment shall be treated as establishment of distinct person.
Explanation 2. -A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an establishment in that territory.
This section provides certain cases where the supply of goods and services Will be treated as Intra-state supply; we are here restricted up to Supply of services.
Supply will be treated as intra state supply of service, if the location of supplier and place of supply of service (as provided under section 12) is in the same State or union Territory, on such supply CGST and SGST will be payable. Hence Supply of Services to be treated as Intra-state.
Distinct Person-
In the following cases the person will be required to take different registration as per section 25 of CGST Act and will be treated as dist

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alified under “Zero rated supply”, it is Supply of Services to be treated as Intra-state.
If we see the nature and scope of work, the all nature is office work, or we can call it back office work. Co ordination with buyer and sellers, and other parties for execution of purchase and sale contracts entered in to by M/S Vikudha Overseas Corporation Limited.
Explanation 1.-For the purposes of this Act, where a person has,-
(i) an establishment in India and any other establishment outside India;
(ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or
(iii) an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory, then such establishments shall be treated as establishments of distinct persons.
4. HEARING
The case was taken up for preliminary hearing on DT. 15.05.2018, with respect to rejection of the application when Sh. Bharat B

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who is supplier of Services, which is a corporate entity incorporated in India and having its registered office in Mumbai. The orders for supply of said services are received in its Mumbai office and also services are executed from stated in Mumbai.
The applicant has submitted sample copy of service agreement entered into between the paties,Tax invoices issued, bank statements etc. to represent the transactions effected between the parties. The relevant clauses of the agreement for the present purpose are as below:
1. This service agreement is made between the party M/S. Vikhuda Overseas Corporation Ltd. Hong Kong (Herein referred party A) and M/S. Vservglobal Pvt. Ltd. Andheri, (Herein referred party B) -This agreement is executed on 30.122017 of the office of party A situated in Hong Kong. Party A is global firm specializing in trading and distribution of chemical and Agricultural/Consumer products in different geographies. Party B is an India based corporate entity and has start

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will provide access to its software “VOSS” to the Party B for rendering the agreed services. The major service activities to be undertaken by the Party B for and on behalf of party A are mentioned at [( a ) to (x) of the facts of the case at para 2 of this agreement as above.
Article 3: Obligation of parties:
* The party B commits itself carrying out hereby services in accordance with the instruction of party A.
* Party B commits not to disclose business dealing of party A to any third party/ parties.
* The party B commits no to allow access ” VOSS” to anybody except its employees entrusted with the job of working on it.
* Both the parties commit not to represent each other before a third party/ parties as an agent/ principal of the other parties and entered in to any kind of binding agreements.
Article 4: The Service Fee and Invoicing: – In return for the performance of services entrusted on the basis of the terms of this contract, the party B shall receive a remuneration Of

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Limited., having registered office at DHANTAK PLAZA, 201, OPP. WAMAN MAKWANA ROAD, MAROC, ANDHERI EAST Munn bai City MH 400059 IN (AS per website of Ministry of Commerce), and The Applicant of this ATA M/S Vserv Global Pvt Ltd, is private Limited company situated at 201, Dhantak Waman Center, Makwana Road Andheri (E), Mumbai-400059. The officer has information from the website of the client. He has also collected information to the promoters of the client and the sister concern. Based on this information the officer submits that all the above firms are related companies. He further has drawn a conclusion that the applicant is providing services to M/S. Vikudha India Trading Limited, a sister concern located in India and thus the provision of services is in India and not as export of services contended by the applicant.
During the course of final hearing held on 26.06.2018 and having regards to the facts of the case applicant was called on to submit his written contention specifically

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ct are relevant, which are reproduced below for ready reference-
Section 16 of the IGST Act: (1) “zero rated supply” means any of the following supplies of goods or services or both, namely:
(a) Export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.
(3) A registered person making zero rated supply shall be eligible to claim refund under either Of the following options, namely:
(a) He may supply goods or services or both under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or
(b) he may supply goods or services or both,

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Explanation I in section 8;
In the course of final hearing a reasonable doubt was raised by the members whether the applicant is an 'intermediary' as defined under the act. On this issue the contention made by the and the jurisdictional officer is already reproduced above. It is therefore necessary first to understand the definition of 'intermediary' as defined in the act.
Section 2(13) of the IGST Act:
“intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account;
In the context of definition of 'Intermediary' as mentioned above, we now examine the service agreement as a whole to ascertain whether the applicant is an Intermediary or not. This is necessary because the provisions of place of supply which decide the na

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ce) & Share SI (Shipping Instructions)
* Liaise with supplier for Cargo Readiness
* Liaise with inspection authorities if pre-shipment inspection is needed
* Inform Customer on tentative schedule
* process payment request in VOSS
* send payment request to Client.
* Provide forwarder/ carrier nomination to supplier if FOB (Free on Board)
* Seek carrier booking details and share with supplier & customer
* Follow up for smooth SOB (Shipping on Board) with supplier and forwarder
* Log it in Excel Order Sheet – ETD -ETA(Estimated Date of Arrival -Estimated date of Departure)
* Get draft BL (Bill of Lading) prior to sailing
* Follow up for full shipping documents with supplier
* Raise payment request in VOSS for supplier for balance or final payment
* Send payment request to Group Company for supplier for balance or final payment.
* Arrange inspection certificates if applicable
* Raise payment request for freight and inspection charges as applicable
* Arrange

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taining to place of supply in case of intermediary services as provided in 8 of section 13 are relevant. In the instant case and as per applicants own admission of fact that applicant is supplier of Services, which is a corporate entity incorporated in India and having is registered office in Mumbai. We find that the place of supply in case of services provided by the applicant being intermediary would be the location of the supplier of services i.e. the location of the applicant which is located in the state of Maharashtra, India. 'To qualify transaction of supply of services as export of services that transaction has to satisfy all five ingredients of the definition of export of services simultaneously. In the present case we find that the condition at (iii) of the above definition is not satisfied and hence without examining and getting into the contention of the jurisdictional officer with regards to condition at (v) of the said definition as to distinct person which would requ

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its business. In the present case we find that the activities undertaken by the applicant are for and on behalf of clients to facilitate supply of goods and services between the clients their customers. In view of this we are of the opinion that the judgement cited by the applicant is not applicable to the facts of the present case.
06. In view of the extensive deliberations as held here in above, we pass an order as follows:
ORDER
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO.GST-ARA- 03/2018-19/B- 59                                   Mumbai, dt. 07.07.2018         
For reasons as discussed in the body of the order, the questions are answered thus –
Question :- The Applicant Vserv request th

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The Himachal Pradesh Goods and Services Tax (Seventh Amendment) Rules, 2018.
EXN-F(10)-5/2018-29/2018-State Tax Dated:- 7-7-2018 Himachal Pradesh SGST
GST – States
Himachal Pradesh SGST
Himachal Pradesh SGST
Government of Himachal Pradesh
Excise and Taxation Department
No.EXN-F(10)-5/2018 Dated: Shimla-27th July, 2018
Notification No. 29/2018-State Tax
In exercise of the powers conferred by section 164 of the Himachal Pradesh Goods and Services Tax Act, 2017 (10 of 2017), the Governor of Himachal Pradesh is pleased to make the following rules further to amend the Himachal Pradesh Goods and Services Tax Rules, 2017, namely:-
1. (1) These rules may be called the Himachal Pradesh Goods and Services Tax (Seventh Amendment) R

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ate General of Anti-profiteering” shall be substituted;
(v) in rule 132, in sub-rule (1), for the words “Directorate General of Safeguards”, the words “Directorate General of Anti-profiteering” shall be substituted;
(vi) in rule 133, for the words “Directorate General of Safeguards”, wherever they occur, the words “Directorate General of Anti-profiteering” shall be substituted.
By Order,
Jagdish Chander Sharma
Principal Secretary (E&T) to the
Government of Himachal Pradesh
Note:- The principal rules were published in the Gazette of Himachal Pradesh on 29th June, 2017, vide notification No. EXN-F(10)-13/2017 dated 27th June, 2017 and last amended vide notification No. 28/2018-State Tax, dated 3rd July, 2018 which was published in Rajp

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GST Rules Updated: Central Goods and Services Tax (Seventh Amendment) Rules, 2018 Revised for Compliance and Tax Rule Changes.
Notifications
GST
Central Goods and Services Tax (Seventh Amendm

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GST on Labour contract
Query (Issue) Started By: – SHALIMAR GALAXY Dated:- 6-7-2018 Last Reply Date:- 6-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
I am constructing own house on labour contract, GST is applicable ? if yes how much percentage ?
I am constructing own house on labour contract, GST is applicable ? if yes how much percentage ?
Reply By KASTURI SETHI:
The Reply:
Pure labour for construction of individual house is not taxable under GST. It is exempted vide No

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Sale of Second hand car
Query (Issue) Started By: – Naina Chowdary Dated:- 6-7-2018 Last Reply Date:- 7-7-2018 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Sir/Mam,
I bought a car by paying VAT under installment basis scheme provided by the org I am working in. The car is reg under the org name. As i left the org, now i want to buy the same from my org . The org has availed the dep on it. They are Ready to sell the car at WDV.
Now the sale is an Inter State sale. But while paying installments i paid VAT. Is GST applicable?
Reply By KASTURI SETHI:
The Reply:
Payment made after 1.7.17 is liable to GST.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
GST is applicable as ascertained by Shri Sethi.
Reply By YAGAY and S

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hose mentioned from S. No. 1 to S.No.3
Note: Government also Exempted the Cess applicable on sale of Used vehicle through Notification No. 1/2018 Compensation Cess Rate.
Valuation of Old or Used car for GST Calculation
Value on which GST at above rates to be calculated shall be Margin of Supply which is to be calculated in the manner as mentioned in Notification which is given below:
1. In Case Depreciation under Income Tax Act Availed: Margin of supply shall be difference between Sale consideration and Written down Value and tax to be calculated on such Margin, and where the margin of such supply is negative, it shall be ignored.
2. In other cases: Margin of Supply shall be difference between sale price and purchase price Tax to be ca

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GST Council Reviewing Tax on Rectified Spirit/ENA; Advance Ruling Pending Decision.
Case-Laws
GST
Taxation of Rectified Spirit/ Extra Neutral Alcohol (ENA) under GST – Applicability of GST on

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CLASSIFICATION AND TAX RATE UNDER GST
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 6-7-2018

Classification of goods or services
Classification of Goods or Services is extremely critical activity under GST regime. The following should be taken care-
* The description of the product or the service;
* The nature of the transaction;
* HSN (Harmonized System Nomenclature) /SAC (Service Accounting Code);
* Taxability or as the case may be the exemption of the product or the service;
* Date of commencement of taxability with the relevant tax rate.
It is mandatory to mention the HSN/SAC code of the product or the service on the tax invoice for all assesses having a turnover of ₹ 5 crores and above. Improper classification of goods or service would not only cause serious hardships to the accounting team but would also land the assessee in unwarranted and avoidable tax issues.
In the central excise and service tax regime many a case has

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zed the Caesarstone merits classification under HSN Code 2506 or 6810 of the GST Schedule. At the time of importation the same is being classified in Chapter 6810 for the purpose of levy of basic customs duty and IGST on the same. Considering the ambiguity in classification, the applicant has initiated an application for an advance ruling.
The Authority found that the scope of Heading 2506 is limited only to quartz in crude state shape by sawing to form a slab. In the instant case addition of polymer resins and pigments in product has changed its structure from quartz. The said product is not quartz per se but is only one of raw material for its manufacturing. Accordingly its classification under 2506 is ruled out. The Authority observed that a similar product under import in USA was classified under Heading 6810 of Harmonized Tariff Schedule of the US. In view of the above, the Authority gave the ruling that Caesarstone slab is appropriately classifiable under Heading 6810 of Custom

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ority ruled that the applicant is providing the service of printing and is liable to be classified under SAC 9989 and taxable @ 12% under Sl. No. 27(i) of Notification No. 11/2017-Central Tax (Rate), dated 28.06.2017 as amended vide Notification No.31/2017-Central Tax (Rate), dated 13.10.2017.
Polished/Processed limestone slab
In Re 'Maheswari Stone Supplying Co.' – 2018 (6) TMI 458 – AUTHORITY FOR ADVANCE RULING-HYDERABAD, the applicant sought advance ruling on the following issues-
* In which Chapter the commodity called 'Polished/Processed limestone' falls?
* Under which HSN Code the above commodity comes?
* Can it be classified as 'Mineral substance not elsewhere specified or included; which is mentioned' under HSN Code 2530?
* Can it be classified under any of HSN Code 2515/2516/2521?
* Can it be retained under HSN Code 25 with inaugural phrase of 'Goods not mentioned elsewhere' as mentioned at the start of column of 5%?
The applicant submitted that his main activity

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ctly classifiable under heading 6802 of the GST Tariff.
Roof ventilation
In Re 'Sammarth Overseas & Credits Private Limited' – 2018 (6) TMI 427 – AUTHORITY FOR ADVANCE RULING,TELANGANA the issue to be decided in the present application by the Authority is on the classification and rate of tax on roof ventilation. The ventilation is powered by wind to give effect ventilation for industries, warehouses etc., The primary function is to provide ventilation by continuous extraction of air from building. Even in trade parlance, thee goods are identified as roof ventilation only and not wind mills as contended by the applicant. The Authority ruled that roof ventilation falls under Sl. No. 371B of Heading 8414 of Schedule III to Notification No. 01/2017-Central Tax (Rates) as amended and attracted at 9% CGST + 9% SGST.
Tobacco leaves
In Re. 'Shalesh Kumar Singh' – 2018 (5) TMI 529 – AUTHORITY FOR ADVANCE RULING – DELHI the applicant claimed that the tobacco leaves are classifiable under He

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dated 26.05.2011 and Tribunal order in 2006 (195) ELT 196 (Tri. Mum) = 2005 (9) TMI 173 – CESTAT, MUMBAI relied by applicant is not applicable, being in different context. The Authority held that the 'Dried Tobacco Leaves' which have undergone the process of curing after harvesting of tobacco leaves are 'unmanufactured tobacco' covered under HSN Code 2401. However, they are not covered under Sl. No. 109 of Schedule I of Notification No.1/2017-Central Tax (Rate), dated 28.06.207 @ 2.5% (CGST) + 2.5% (SGST) or 5% (IGST), but the same are covered under Sl. No. 13 of Schedule IV of the said notification as 'unmanufactured Tobacco (other than Tobacco Leaves) @ 14% (CGST) + 14% (SGST) or 28% (IGST).
Carry bags
In Re 'J.J. Fabrics' – 2018 (6) TMI 560 – AUTHORITY FOR ADVANCE RULINGS, KERALA, the petition is the manufacturer of carry bags made of poly propylene non woven fabrics. The petitioner preferred an application before the Authority for the Advance ruling on the rate of tax of the said

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olypropylene is less than ₹ 1000/- per piece. Therefore it will attract tax @ 5% vide Entry No. 224 of Schedule I of both CGST and SGST Notification.
Joint replacements
In Re. 'Gopal Gireesh' – 2018 (6) TMI 705 – AUTHORITY FOR ADVANCE RULINGS, KERALA, the applicant in his application for advance ruling before the Authority submitted that the commodities dealt with by them are implant for handicapped patients in the nature of joint replacement fall under HSN Code 9021 31 00 and are included under Schedule I and the rate of GST is 5%. Sl. No. 257 – List 3E(G) – Implants for handicapped patients, Joint replacement etc., The Authority applied the principle under Rule 3 of the General Rules of interpretation of the First Schedule to the Customs Tariff Act, 1975; that the Heading which provides the most specific description shall be preferred to the Headings providing a more general description. The Authority held that the Joint replacements fall under HSN Code No. 9021 31 00 and cov

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