Goods and Services Tax

2018 (7) TMI 966 – CHHATTISGARH HIGH COURT – 2018 (14) G. S. T. L. 181 (Chhattisgarh) – Transitional Credit – migration to GST Regime – IT grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST portal – Held that:- The complete procedure has been prescribed for redressal of grievance which the petitioner has raised in this writ petition, particularly of non-uploading of FORM TRAN – 1 due to technical glitches. Apart from this, the State Government – Commissioner, Central Excise / GST has issued order dated 5-4-2018 in which Nodal Officers have already been appointed by the State Government.
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The petitioner is directed to approach the Nodal Officer of Korba i.e. Assistant Commissioner, State GST, Korba Circle-1 within four days from today by filing representation along with all necessary documents for redressal of his grievance and in turn, the said authority would consider and dispose of the same following the procedure laid down in

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RAN -1, duly signed on the common portal. The said provision is a transitional provision for enabling the tax credit benefit to all those who migrated from the service tax regime to GST regime and final date for submission of the said FORM GST TRAN -1 was extended up to 27-12-2017 on the recommendation of the GST Council. It is the case of the petitioner that he is entitled to input tax credit benefit to the extent of 1,16,90,475/-. The further case of the petitioner is that the petitioner successfully punched the data relating to clauses 6(a) and 7(b), the invoice-wise detail as required under clause 7(b) was provided and the entire punching was completed much on time before the last date of submission. On clicking the submission button for filing TRAN-1, an error message was displayed as some uploaded records are in progress, kindly submit once it is processed . The authorities were complained of the said error which the authorities confirmed receipt of same and assured of updating a

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in the said notification. 4. Respondent No.3 – Commissioner of Customs, Central Excise and Service Tax also filed return in the same line. 5. I have heard learned counsel for the parties and considered their rival submissions made herein above. 6. On 3rd of April, 2018, a circular has been issued by the Government of India, Ministry of Finance, Department of Revenue, Central Board of Indirect Taxes and Customs, New Delhi, for redressal of grievances of tax payers due to technical glitches on GST portal on which an IT Grievance Redresssal Committee has been constituted. Procedure for resolving the resolution of stuck TRAN – 1 has bee recorded and the manner has been indicated in paras 5 and 8 of the said circular. Para 5 relates to appointment of Nodal Officer and para 8 relates to resolution of stuck TRAN-1s and filing of GSTR-3B. Para 8 of the circular reads as follows: – 8. Resolution of stuck TRAN-1s and filing of GSTR- 3B 8.1 A large number of taxpayers could not complete the proce

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tre and State to collect additional document/data etc. or verify the same to identify taxpayers who should be allowed this procedure. 8.3 GSTN shall communicate directly with the taxpayers in this regard and submit a final report to GIC about the number of TRAN-1s filed and submitted through this process. 8.4 The taxpayers shall complete the process of filing of TRAN 1 stuck due to IT glitches, as discussed above, by 30th April 2018 and the process of completing filing of GSTR 3B which could not be filed for such TRAN 1 shall be completed by 31st May 2018. 7. After going through the aforesaid circular and the scheme of the circular, I am convinced that complete procedure has been prescribed for redressal of grievance which the petitioner has raised in this writ petition, particularly of non-uploading of FORM TRAN – 1 due to technical glitches. Apart from this, the State Government – Commissioner, Central Excise / GST has issued order dated 5-4-2018 in which Nodal Officers have already

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GST – States – 20/2018-State Tax – Dated:- 14-5-2018 – GOVERNMENT OF ARUNACHAL PRADESH DEPARTMENT OF TAX & EXCISE ITANAGAR Notification No. 20/2018-State Tax The 14th May, 2018 No. GST/23/2017.-In exercise of the powers conferred by section 128 of the Arunachal Pradesh Goods and Services Tax Act, 2017 (7 of 2017), the State Government, on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act for failure to furnish the return in FORM GSTR-3B

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GST – States – F.NO.FIN/REV-3/GST/1/08(PT-I)/140 – Dated:- 14-5-2018 – GOVERNMENT OF NAGALAND OFFICE OF THE COMMISSIONER OF STATE TAXES NAGALAND: DIMAPUR NOTIFICATION [F.NO.FIN/REV-3/GST/1/08(PT-I)/140] Dated Dimapur, 14-5-2018 In exercise of the powers conferred by section 128 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the State Government, on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act for failure to furnish the re

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GST – States – II(2)/CTR/448(f)/2018. – Dated:- 14-5-2018 – GOVERNMENT OF TAMIL NADU COMMERCIAL TAXES AND REGISTRATION DEPARTMENT G.O. (MS) NO.56 DATED: 14.05.2018 Chithirai-31, vilambi, Thiruvalluvar Aandu, 2049 NOTIFICATION No. II(2)/CTR/448(f)/2018. In exercise of the powers conferred by Section 128 of the Tamil Nadu Goods and Services Tax Act, 2017 (Tamil Nadu Act 19 of 2017), the Governor of Tamil Nadu, on the recommendations of the Council, hereby waives the late fee payable under Section

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2018 (5) TMI 1649 – PUNJAB AND HARYANA HIGH COURT – 2018 (16) G. S. T. L. 21 (P & H) – Constitution of appellate authority – Section 129(1)(a) of Haryana Goods and Services Tax/Central Goods and Services Tax of the Act, 2017 – Held that: – learned counsel for the State has produced the notification dated 19.04.2018 appointing the Appellate Authority under the Haryana Goods and Services Tax Act, 2017. The notification had been made effective from July 01, 2017. As the Appellate Authority has been constituted, the grievance to that extent has been rendered infructuous.
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Time Limitation – Held that: – as the petitioner could not file appeal earlier because of non-constitution of the Appellate Authority, which has now been appointed vide

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ned State counsel was asked to apprise the status of constitution of the Appellate Authority under the Act. On 07.02.2018, this Court had passed the following order:- The pendency of this writ petition will not prevent the petitioner from filing an appeal for the purpose of saving the bar of limitation, if any. Such appeal would be without prejudice to the rights and contentions in this writ petition. Today, learned counsel for the State has produced the notification dated 19.04.2018 appointing the Appellate Authority under the Haryana Goods and Services Tax Act, 2017 (for short – 'the Act'). The notification had been made effective from July 01, 2017. As the Appellate Authority has been constituted, the grievance to that extent has

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2018 (5) TMI 1615 – ALLAHABAD HIGH COURT – TMI – Personal presence of Officials – Generation of E-way bill – Section 129 (3) of the UPGST 2017 – Held that: – we required the presence of respondent 3 to explain his conduct on the allegations made against him in the pleadings and the respondent no. 2 to suggest the ways and means to remedy the situation but it appears that we were misled by the petitioner and at the time of first hearing neither the fact had been pointed out by learned Standing Counsel appearing for the State-respondents nor we noticed the same and without noticing the fact we required the respondents no. 2 & 3 to be present in person.
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Sri Manish Goel, learned Additional Advocate General has also placed before us the p

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-III, Noida are present in person. Sri Manish Goel, learned Additional Advocate General points out that the petitioner has been described as M/s Ashoka Enterprises through its proprietor Sri Fazil. The affidavit is also sworn by Sri Fazil describing himself to be sole proprietor of the firm. Vakalatnama has also been executed by Sri Fazil describing himself to be proprietor of the firm whereas the representation/application dated 02.05.2018 made before respondent no. 3 has been signed by Sri Ashok Kumar Agarwal. Similarly undated application filed as Annexure-8 to the writ petition in pursuance of the show cause notice under Section 129 (3) of the U.P. Goods & Service Tax Act, 2017 (in short 'UPGST Act, 2017') goes to show that

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int of time and the reply was obtained under threat and coercion are sworn on the basis of the record which totally falsifies the averments in the said paragraphs. On 09.05.2018, we required the presence of respondent 3 to explain his conduct on the allegations made against him in the pleadings and the respondent no. 2 to suggest the ways and means to remedy the situation but it appears that we were misled by the petitioner and at the time of first hearing neither the fact had been pointed out by learned Standing Counsel appearing for the State-respondents nor we noticed the same and without noticing the fact we required the respondents no. 2 & 3 to be present in person. Sri Manish Goel, learned Additional Advocate General has also plac

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GST – States – S.O. 181 – Dated:- 14-5-2018 – BIHAR GOVERNMENT Commercial Tax Department Notification The 14th May 2018 S.O. 181 – In exercise of the powers conferred by section 128 of the Bihar Goods and Services Tax Act, 2017 (12 of 2017), the Governor of Bihar, on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act for failure to furnish the return in FORM GSTR-3B by the due date for each of the months from October, 2017 to April, 2018 for

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GST – States – 11/2018 – Dated:- 14-5-2018 – FINANCE SECRETARIAT NOTIFICATION (11/2018) No. FD 47 CSL 2017, Bengaluru, dated: 14.05.2018 In exercise of the powers conferred by section 128 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017), the Government of Karnataka, on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act for failure to furnish the return in FORM GSTR-3B by the due date for each of the months from Oct

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GST – States – F-10-22/2018/CT/V (36) – Dated:- 14-5-2018 – Government of Chhattisgarh Commercial Tax Department Mantralaya, Mahanadi Bhawan, Naya Raipur Naya Raipur, the 14th May 2018 NOTIFICATION No. 22/2018-State Tax NO.F-10-22/2018/CT/V (36) – In exercise of the powers conferred by section 128 of the Chhattisgarh Goods and Services Tax Act, 2017 (7 of 2017), the State Government, on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act for f

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GST – States – 599-F.T. – Dated:- 14-5-2018 – GOVERNMENT OF WEST BENGAL FINANCE DEPARTMENT REVENUE NOTIFICATION No. 599-F.T. Howrah, the 14th day of May, 2018. No. 22/2018-State Tax In exercise of the powers conferred by section 128 of the West Bengal Goods and Services Tax Act, 2017 (West Ben. Act XXVIII of 2017), the Governor, on the recommendations of the Council, is pleased hereby to waive the late fee payable under section 47 of the said Act for failure to furnish the return in FORM GSTR-3

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GST – States – 22/2018-State Tax – Dated:- 14-5-2018 – FINANCE DEPARTMENT Sachivalaya, Gandhinagar Dated the 14th May, 2018. Notification No. 22/2018-State Tax Gujarat Goods and Services Tax Act, 2017 No. (GHN-51)/GST-2018/S.128(10)TH-In exercise of the powers conferred by section 128 of the Gujarat Goods and Services Tax Act, 2017 (Guj.25 of 2017), the Government of Gujarat, on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act for failure t

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Goods and Services Tax – 22/2018 – Dated:- 14-5-2018 – Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs Notification No. 22/2018 – Central Tax New Delhi, the 14th May, 2018 G.S.R. 450 (E).- In exercise of the powers conferred by section 128 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby waives the late fee payable under section 47 of the said Act for fail

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Goods and Services Tax – Applicability of GST – Classification of goods – Natural Easter Dielectric Fluid (Envirotemp FR3) – soyabean oil has to be modified or adapted for use in the transformers – En

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Goods and Services Tax – Exemption from GST – Whether an amount charged as interest on transaction based short term loan given by the Del Credere Agent (DCA) to buyers of material is exempt from tax i

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Goods and Services Tax – GST – By: – Natasha jhaver – Dated:- 12-5-2018 Last Replied Date:- 14-8-2018 – If you take care of your employees, they will take care of your business by Richard Branson. It is the employees who support the employer to retain the customers and run the business. With the decision of the Advance Ruling Authority, Kerala [Caltech Polymers Pvt. Ltd. – 2018 (4) TMI 582 – AUTHORITY FOR ADVANCE RULING – KERALA ] the employer will have to think twice before providing healthy environment to the employees. Wherein it was held that Recovery of food expenses from the employees for canteen services provided by company would come under the definition of outward supply as defined in the Section 2(83) of the Act, 2017, and therefore, taxable as a supply of service under GST The important aspect which was overlooked by AAR and needs attention is that Schedule III under Section 7(2) specifies that any services provided by an employee to the employer in the course or in relatio

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ployment will out of the scope of GST. Like – Allowances mentioned as per the appointment letter of employees – travel allowance, food allowance, daily allowance etc. Perquisites – Accommodation, car, meal vouchers, etc Providing of transport facility Providing laptop for work Providing food at subsidized rate or for free Reimbursement of expenses like accommodation, drivers salary, medical expenses Apart from the above, any transaction which occurs in connection or association with the employment will also be out of the scope of GST like – Refreshments (tea/coffee), lunch provided during the course of employment Reimbursement of expenses incurred by the employees in the course or furtherance of business. Last but not the least, Section 7(2) overrules section 7(1), thus makes it more flawless that any transactions which are provided by the employee to employer in the course/relation to the employment shall be out of the scope of GST. Once the activity comes under Schedule III, then any

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he activity as in the course or furtherance of business? Though the term in course or furtherance of is not defined under the GST but the word business has been defined in the GST law. Broadly it means any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity whether or not it is for pecuniary benefits. Any activity ancillary or incidental to these activities is also covered as business. It would be therefore essential to refer the dictionary meaning of the said phrase. The Australian Concise Oxford Dictionary (1997) defines the phrase 'in the course of' as 'during' and the word 'furtherance' as to mean 'furthering or being furthered; the advancement of a scheme etc.' In the instant case, the employer is manufacturer of the footwear and is providing the canteen services by the employer exclusively for the employees as per the Factories Act. Can providing of canteen services to its employees be termed as an act

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ade in connection with or were incidental or ancillary to the main activity would not be 'business' but there could still be an exception where the sales so connected or incidental or ancillary to the main non-business activity were proved to have been made with an independent intention to do business and the burden of proof to prove the exception would fall on the revenue. In the light of the above interpretation by the Apex court, canteen services cannot be treated as ancillary to the business activity of manufacturing footwear. Firstly, canteen services are provided is an ingredient of the wage negotiation with employer and would form part of the consideration under employment agreement. Secondly, Factories Act mandates the employer to provide food/meal to the employees and lastly, canteen cannot be termed as a business activity. Hence, if canteen can be termed as expenses for use in the course of business than a business activity itself, then the same cannot be termed as su

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ally these sales made in connection with or were incidental or ancillary to the main activity would not be 'business' A few decisions of Hon'ble High Courts 1. CCE vs Magalam Cement, Udaipur ( 2017 (11) TMI 483 – RAJASTHAN HIGH COURT ) 2. CCE v. Ferromatik Milacron India Ltd. ( 2010 (4) TMI 649 – GUJARAT HIGH COURT ), In the above factual and legal background, the Tribunal was justified in holding that the service tax paid on outdoor catering services by the canteen located in the respondent s manufacturing premises has to be considered as an input service relating to business and that Cenvat credit is admissible in respect of the same. 3. In CCE v. Stanzen Toyotetsu India Pvt. Ltd. ( 2011 (4) TMI 201 – KARNATAKA HIGH COURT ), 12. It is in this context that when the Assessee provides outdoor canteen facilities because of a statutory obligation imposed on him under Section 46 of the Factories Act, it becomes a condition of service as far as the employees are concer

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Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 12-5-2018 Last Replied Date:- 22-10-2018 – In the article entitled Cancellation of registration under GST published on 04.05.2018 in the TMI discusses the general procedure for cancellation of registration by the tax officers, revocation of cancellation of registration. In this article the detailed procedure on the cancellation of registration suo motu by tax officials of a registered person, as provided in the GST website. Initiation of cancellation of registration The tax officials may initiate suo motu cancellation of registration of a registered person under GST provisions under the following circumstances- Failure to furnish Application for Enrollment within 3 months from the appointed day or such extended period specified; Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months; Supplies any goods and / or services without issue of any invoice, in violation of the

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ceeding under the GST Law; Discontinuation/Closure of Business; Change in Constitution leading to change in PAN; Ceased to be liable to pay tax; Transfer of business on account of amalgamation, merger/demerger, sale, lease or otherwise disposed of etc. Death of Sole Proprietor; Composition person has not furnished returns for three consecutive tax periods; Registration has been obtained by means of fraud, willful misstatement or suppression of facts etc., Pre-condition for suo motu cancellation There shall be valid reason among the above for the initiation for suo motu cancellation of registration. Show cause notice The certificate of registration cannot be cancelled by the tax officials unless the registered person is given reasonable opportunity of being heard. A show cause notice is to be issued in this regard by the tax official by the proper officer to submit the clarifications/reply by the registered person. The registered person can view navigate to Services > User Services &

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yer, on the Show Cause Notice issued, the proceedings can be dropped. The same may be intimated as detailed below- Primary Authorized Signatory will be intimated about dropping of SCN by SMS & Email. Issuance of Order for dropping of SCN will also be intimated to the Primary Authorized Signatory by Email and SMS. Order will be made available on the taxpayer s dashboard to view, print and download. Status of GSTIN will change from Proceeding for Cancellation Initiated to Active . Cancellation of registration If the proper officer is not satisfied with the response provided by the registered person he may order for cancellation of registration. The registered person whose registration is cancelled is to navigate to Services > User Services > View Notices and Orders to view the order regarding suo motu Cancellation of Registration. Once registration is cancelled by the Tax Authority, the taxpayer will be intimated about the same via SMS and Email. Order for Cancellation of Regis

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motu cancellation of registration. He can submit returns of the earlier period (i.e. for the period before date of cancellation mentioned in the cancellation order), after suo moto cancellation of registration. However, he will not be allowed to file return or upload invoices for the period after date of cancellation mentioned in the cancellation order. Also, GST Practitioner will not be able to carry out GSTP functions on his behalf for the period after the date of cancellation mentioned in the cancellation order. Liability Any liabilities prior to the date of suo moto cancellation will have to be paid by the taxpayer, irrespective of the fact that when determination of liabilities are done. Any liability which is related to that particular GSTIN is required to be paid by the taxpayer. It can be recovered later on even after the cancellation of GSTIN. Cancellation under other Act Cancellation of registration under the CGST Act or SGST/UTGST or IGST Act shall be deemed to be a cancell

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Goods and Services Tax – GST – By: – Dr. Sanjiv Agarwal – Dated:- 12-5-2018 – It its 27th meeting held on 4th May, 2018, GST Council, the high powered Constitutional body to take decisions on levy and administration of Goods and Service Tax in India considered various issues and concerns and made recommendations. These recommendations are subject to detailed consideration by Group of Ministers or other bodies and shall be implemented in due course. GST Council inter alia, made the following recommendations in its last meeting held on 04.05.2018: Towards Simplification of returns: Government is keen to introduce the simplified return design at the earliest to reduce the compliance burden on the trade in keeping with the philosophy of ease of doing business. Returns shall be simplified also by reducing the content/information required to be filled in the return. The details of the design of the return form, business process and legal changes would be worked out by the law committee base

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ax credit from buyer on non-payment of tax by the seller. Recovery of tax or reversal of input tax credit shall be through a due process of issuing notice and order. The process would be online and automated to reduce the human interface There will be three stage Transition Model as follows: Stage I: the present system of filing returns, which suppose to continue for period not exceeding 6 months. Stage II: New invoice wise return facility and claiming of ITC on self declaration basis. Stage III: After 6 month of phase II, the facility of claiming ITC on provisional basis will get withdrawn and input tax credit will only be limited to invoices uploaded by seller from whom dealer had purchased the goods. GSTR-I and GSTR 3B returns will continue for 6 months more. Incentive to promote of Digital Transaction With a view to promote less cash economy, Council discussed a proposal for concession of 2% in GST rates on B2C supplies for which payment is made through cheque or digital mode, subj

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ide shared IT infrastructure and services to Centre and States Governments, tax payers and other stakeholders for implementation of Goods and Services Tax (GST) in the country. Presently, the Central Government and State Government are holding 24.5% equity shares respectively and the remaining 51% are held by non-Governmental institutions and through various mechanisms, GSTN is under strategic control of government. GST Council decided as follows: Acquisition of entire 51% of equity held by the Non-Governmental Institutions in GSTN amounting to ₹ 5.1 crore, equally by the Centre and the States governments and allow GSTN Board to initiate process for acquisition of equity held by the private Companies; and GSTN Board shall be allowed to continue the existing staff at existing terms and conditions for the a period upto five years, and shall have the flexibility of hiring people through contract on the terms and conditions similar to those used by GSTN till now while hiring regular

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Goods and Services Tax – GST – The activity undertaken by JEL amounts to manufacture of electricity from the coal as supplied by JSL and is squarely covered in the definition of manufacture under the

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Goods and Services Tax – Detention of goods with vehicle – interstate movement of goods – There is no doubt with regard to transaction in question as the Integrated Goods and Service Tax (IGST) has be

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Goods and Services Tax – Anti-Profiteering proceedings – Benefit of reduction in the rate of tax – India Gate Basmati Rice – there has been no net benefit of ITC available to the Respondent which coul

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Goods and Services Tax – Supply of goods & services to SEZ or not – intra-state supply – Place of Provision Rules – Whether the Hotel Accommodation & Restaurant services provided by them, within the p

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2018 (7) TMI 1114 – CESTAT ALLAHABAD – TMI – Refund claim – GTA Service – reverse charge mechanism – denial on the ground of unjust enrichment and time limitation – Section 11B of the Central Excise Act, 1944 – Held that:- The Service Tax paid, was paid under the category of “Reverse Charge Mechanism”, The appellant himself was the service recipient. Therefore, the question of passing on incidence on other person, does not arise at all since the appellant was service recipient.
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Time Limitation – Held that:- Karnataka High Court in the case of K.V.R. Constructions Versus Commissioner of Central Excise, Bangalore [2009 (8) TMI 150 – KARNATAKA HIGH COURT] wherein it was held that if an amount paid by assessee to Revenue considering Service Tax, it is to be treated as deposit at the hands of Government and over such amount limitation under Section 11B of the Central Excise Act, 1944, does not apply.
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Refund allowed – appeal allowed – decided in favor of appellant. – APPEAL No.

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alue. However, subsequently they realized that Notification No. 26/2012-ST dated 20/06/2012 has provided exemption from so much of the Service Tax leviable under Section 66B of the Finance Act, 1994, which was in excess of 25% of the value calculated and as a result during the aforesaid period they were required to pay Service Tax on taxable value of ₹ 17,72,016/- which was 25% of ₹ 70,88,083/- and as a result they had paid ₹ 8,76,090/- (-) ₹ 2,19,020/- = ₹ 6,57,070/- excess Service Tax. The said excess paid Service Tax was sought to be refunded through the said application. The appellant was issued with a Show Cause Notice dated 24/06/2015, wherein it was contended that in terms of Section 11B of the Central Excise Act, 1944, made applicable to Service Tax through Section 83 of the Finance Act, 1994, the Refund Application was time barred. The appellant was called upon to show cause as to why the said refund application should not be rejected. The said cl

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nt Service Tax in view of Notification No.26/2012-ST dated 20/06/2012 wherein it was provided that Service Tax would be applicable only on 25% of the consideration. The appellant had paid Service Tax on 100%. Therefore, under Section 66B of the Finance Act, 1994, the amount sought as a refund, does not represent Service Tax. He has further submitted that the Service Tax paid, was paid under the category of "Reverse Charge Mechanism", The appellant himself was the service recipient. Therefore, the question of passing on incidence on other person, does not arise at all since the appellant was service recipient. Therefore, the finding by ld. Commissioner (Appeals) that the claim of refund was hit by bar of unjust enrichment is not sustainable. He has relied upon ruling of Hon'ble Bombay High Court in the case of Parijat Construction Versus Commissioner of Central Excise, Nashik reported at 2018 (9) G.S.T.L. 8 (Bombay), wherein it was held that the amount paid as duty by mist

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2018 (6) TMI 1196 – AUTHORITY FOR ADVANCE RULING – RAJASTHAN – 2018 (14) G. S. T. L. 309 (A. A. R. – GST) – Levy of GST – Transmission or distribution of electricity by an electricity transmission or distribution utility – Whether TPADL is eligible to avail the exemption from levy of GST under Entry No. 25 of Notification 12/2017 – Central Tax (Rate) dated 28.06.2017 bearing description 'Transmission or distribution of electricity by an electricity transmission or distribution utility' with respect to the non-tariff charges recovered by TPADL from its customers? – Whether TPADL is liable to pay tax on the aforesaid recovery made from its customer?
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Held that:- M/s TPADL is covered under electricity transmission or distribution utility and Transmission or distribution of electricity by an electricity transmission or distribution utility is EXEMPTED.
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As regard the other services provided by M/s TPADL, it is clarified by the Department under Circular no. 34/8/2018-GST dated 01

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ative RULING (A) SUBMISSION OF APPLICANT 1. M/s TP Ajmer Distribution Limited ('TPADL' or 'Applicant' or 'the Company ); having Goods and Services Tax ( GST') Registration No. 08AAGCT2158P1ZR and is engaged in the business of distribution of electricity; has submitted that, 1.1 The Tata Power Company Limited ('TPCL') has signed a Distribution Franchisee Agreement ('DFA') with Ajmer Vidyut Vitran Nigam Limited ('AVVNL') to cater to the power requirements of customers in Ajmer, Rajasthan for a period of 20 years. To serve the aforesaid purpose, TPCL has formed a Special Purpose Vehicle ('SPV') called TPADL, which will be responsible for operating and maintaining the distribution network in Ajmer City. It will also be responsible for managing the billing and collections in the said areas. 1.2 They are engaged in the activity of distribution of electricity. For the aforesaid service, distribution charges are recovered from the custome

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demand for extension of distribution mains/SuppIy line This amount is collected for extension of the distribution mains/ supply lines. There is certain amount of material which is used in the present case. Security Deposits for Electricity Consumption This is a refundable security deposit w'hich is collected from the consumers Security Deposits against Meters This is a refundable security deposit for the meter installed at the customer's premises Rent for metering equipment Rent is collected for metering equipment for industrial consumers Meter Testing Fees In case a consumer complains about a defect on the meter, a fee is collected for testing the meter ABT compliant meter ABT means Availability Based Tariff Meters. This is fee for ensuring compliance as per the regulatory norms Change of meter In case of a change in the meter, charges are recovered from the consumer Labour charges for shifting of meter in the same premises In case there is a shifting of the meter for any reas

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rresponding Volt Ampere Hours. Fee charged for testing of consumer's installation These charges are recovered for any addition/ alternation on consumer installation. Installation shall mean the whole of the electric wires, fittings, motors and apparatus erected and wired by or on behalf of the consumer, on his premises. Charges for alteration/shifting of service line In case of shifting of the service line from the pole to the home, charges for alteration/ shifting are recovered. Such charges may also be recovered in case of shifting of lines within the premises. Moreover, if there is pole near the consumer's home, the consumer may want the same to be shifted on account of safety issues or any alteration or extension of his house. Cheque dishonour fee In case the cheque given by the consumer is dishonoured, charges are recovered Delayed payment Charges In case of delay in payment by the consumers of the electricity bill, delay payment charges is collected from the consumers 1.3

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6.2017 (B) ISSUE FOR DETERMINATION The question/ issue before the authority of advance Ruling (AAR) for determination are: a. Whether TPADL is eligible to avail the exemption from levy of GST under Entry No. 25 of Notification 12/2017 – Central Tax (Rate) dated 28.06.2017 bearing description 'Transmission or distribution of electricity by an electricity transmission or distribution utility' with respect to the non-tariff charges recovered by TPADL from its customers? b. Whether TPADL is liable to pay tax on the aforesaid recovery made from its customer? (C) SUBMISSION BY THE APPLICANT 3 The applicant has submitted the following provisions of GST in their support, 3.1 In accordance with Section 9 of the Central Goods and Services Tax Act, 2017 ('CGST Act') and Section 5 of the IGST Act, which provides for charging of GST, GST is levied at the rate prescribed on all intra-state and inter-state supplies of goods/ services. 3.2 As per Section 7 (1) of the CGST Act, 'Sup

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of electricity by an electricity transmission or distribution utility have been exempted vide the Exemption Notification. The relevant extract of the Exemption Notification is reproduced hereunder: ''Transmission or distribution of electricity by an electricity transmission or distribution utility " 3.5 Serial No. 2(z) of the Exemption Notification defines electricity transmission or distribution utility as under: "electricity transmission or distribution utility" means the Central Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003 (36 of 2003); or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government ". 3.6 Further, some of the relevant terms as defined under the Exemption Notification are provided below: Serial No. 2(q) – "

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the below mentioned conditions are satisfied: a) The service shall be the service of transmission or distribution of electricity, and b) The said service shall be provided by an electricity transmission or distribution utility. 4.2 In the present case, TPADL is regarded as a franchisee since it has entered into a DFA with AVVNL being distribution licensee under the Electricity Act, 2003 ('Electricity Act). Therefore, TPADL would clearly fall within the ambit of definition of the term 'electricity transmission or distribution utility'. Accordingly, the condition (b) is satisfied in the present case. 4.3 With respect condition (a), it is submitted that the said Exemption Notification does not define the terms 'transmission or distribution of electricity'. Accordingly, it is pertinent to analyse whether the non-tariff charges collected by TPADL would be treated as consideration for the activity of 'transmission and distribution of electricity' and thereby cover

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. (D) Personal Hearing (PH) 5. In the matter personal hearing was given to applicant. Shri Varun Sharma, FCA , appeared as Authorised Representative of applicant for personal hearing on 05.05.2018. During the PH he reiterated the submission already made in application submitted on 12.02.2018 . Further during personal hearing the clarification issued under Circular no. 34/8/2018-GST dated 01.03.2018 issued vide F.No. 354/17/ 2018 was brought to the applicant's notice and issues raised in application for Advance Ruling were discussed in light of the provisions of clarification in detail . He argued that issues relating to Security deposits against electricity consumption and meters, cheque dishonour fees and delayed payment charges are not part of the considerations for the supplies hence non taxable. He further requested that the case may be decided at earliest on the basis of submission already made. (E) Issues to be decided: 6. The issue involved in this case is, (a) Whether TPADL

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al Electricity Authority; a State Electricity Board; the Central Transmission Utility or a State Transmission Utility notified under the Electricity Act, 2003 (36 of 2003); or a distribution or transmission licensee under the said Act, or any other entity entrusted with such function by the Central Government or, as the case may be, the State Government; Therefore, in terms of above definition. M/s TPADL is covered under electricity transmission or distribution utility and Transmission or distribution of electricity by an electricity transmission or distribution utility is EXEMPTED. 7.2 Further as regard the other services (mentioned in para 1.2 above) provided by M/s TPADL, it is clarified by the Department under Circular no. 34/8/2018-GST dated 01.03.2018 issued vide F.No. 354/17/ 2018, In the said circular Clarifications regarding GST in respect of certain services has been given and at Sr. No. 4 clarification on the issue; Whether the activities carried by DISCOMS against recovery

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other person but shall not include any subsidy given by the Central Government or a State Government: (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for the said supply ; Therefore, the refundable security deposit against Electric Consumption and Electric Meter, which are collected from customers, will not be treated as consideration for the supply. Only when the security deposits are applied as consideration (such as forfeiture, offsetting against future progress payment, etc.) does it becomes taxable. 7.4 CHEQUE DISHONOUR FEE – As per clause 5 (e) schedul

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18 which states that other services provided by DISCOM to consumer are taxable. 7.8 Therefore, in view of the clarification issued under Circular no. 34/8/2018-GST dated 01.03.2018 issued vide F.No. 354/17/ 2018. and as discussed in above paras, it is found that, M/s TPADL is not eligible to avail the exemption from levy of GST under Entry No. 25 of Notification 12/2017 – Central Tax (Rate) dated 28.06.2017 bearing description 'Transmission or distribution of electricity by an electricity transmission or distribution utility' with respect to the non-tariff charges recovered from their customers and is liable to pay tax on the aforesaid made from its customer. 8. In view of the forgoing, we rule as under, RULING In light of clarification issued under Circular no. 34/8/2018-GST dated 01.03.2018 issued vide F.No. 354/17/ 2018-TRU and provisions of GST Act , The Services (as mentioned in para 1.2 above) provided by M/s TPADL with respect to the non-tariff charges recovered from the

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2018 (6) TMI 860 – CESTAT NEW DELHI – TMI – CENVAT Credit – input services – Sales Commission – Held that:- Identical issue has came up before the Tribunal in the case of CCE & ST, Jaipur I/ Alwar vs. M/s. Bhagwati Kripa Paper Mills Pvt. Ltd. & others [2018 (4) TMI 1163 – CESTAT NEW DELHI], where it was held that CENVAT credit is admissible on the services of the sale of the dutiable goods on commission basis – credit allowed – appeal dismissed – decided against Revenue. – Excise COD Application No. 50342 – 50343 of 2018, Excise Appeal No. 50835 – 50836 of 2018 – A/51944-51945/2018-EX[DB], MISC ORDER No. 50305-50306/2018 – Dated:- 11-5-2018 – Mr. Justice (Dr.) Satish Chandra, President And Mr. Bijay Kumar, Member (Technical) Shri M R Sharma. Shri R K Mishra, AR for the Appellants Shri Ankit Danial, Advocate for the Respondent No. 1, None for Respondent No. 2 Per: Justice (Dr.) Satish Chandra: Delay in filing the present appeals is condoned for the reasons mentioned in the application.

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it appears that identical issue has came up before the Tribunal in the case of CCE & ST, Jaipur I/ Alwar vs. M/s. Bhagwati Kripa Paper Mills Pvt. Ltd. & others [ Final Order No. 51412- 51426/2018 dated 16.4.2018] where Tribunal relied on the earlier decision in the case of National Engineering Industries Ltd. vs. CCE & ST, Jaipur I Final Order No. 57218/2017 dated 10.10.2017 where it was observed that : After hearing both the parties, we note that identical issue has come up before the Tribunal in the case of M/s Mangalam Cement Ltd. vs. CCE, Udaipur. The Tribunal vide final order No. 56683-56685/2017 dt. 28.08.2017 held as under:- 4. With regard to availment of Cenvat credit on the commission paid for sale promotion activities, the CBEC vide Circular No. 943/4/2011-CX dt. 29.04.2011 has clarified that Cenvat credit is admissible on the services of the sale of the dutiable goods on commission basis. The said circular was endorsed by the Central Government vide Notification

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cerned, the question is answered in favour of the Revenue and against the assessee. In this background, legislature explained the meaning of the sales promotion by inserting Explanation in Rule 2(1) of Rules, 2004 and declared that sales promotion includes services by way of sale of dutiable goods on commission basis. In other way, Explanation to Rule 2(l) of Rules says in clear terms that there is no bar on availment of the Cenvat credit on sales promotion service by way of sale of dutiable goods on commission basis. Further, by inserting the Explanation in the Rule 2(l), it has confirmed the Board Circular and resolved the different views of the High Courts. Taking into circumstances under which the Explanation was inserted in Rule 2(l) of Rules, 2004 and consequences of the Explanation to extend the benefit to the assessee as per Board Circular, we hold that the Explanation inserted 4 in Rule 2(l) of Rules, 2004 by Notification No. 2/2016-CX (N.T.) (supra) should be declaratory in n

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2018 (5) TMI 1208 – GUJARAT HIGH COURT – TMI – Tax Appeal admitted to consider the question:- Whether the CESTAT is right in law not to decide on merits though there a Jurisdictional High Court decision in case of Commissioner of C. Ex., AhmedabadII Versus Cadila Healthcare Ltd. [2013 (1) TMI 304 – GUJARAT HIGH COURT] And Astik Dyestuff Pvt. Ltd. Versus Commissioner of C. Ex. & Customs [2014 (1) TMI 776 – GUJARAT HIGH COURT]? – R/Tax Appeal No. 551 of 2018 Dated:- 11-5-2018 – MR. AKIL KURESHI

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