Goods and Services Tax

M/s. Ultimate Alloys Pvt. Ltd. and M/s. Alagappa & Co. Versus Commissioner of GST and Central Excise Coimbatore
Central Excise
2018 (8) TMI 547 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 2-8-2018
E/494 & 474/2012 – Final Order Nos. 42207-42208/2018
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical)
Shri M.A. Mudimannan Advocate for 1st Appellant None for 2nd Appellant
Shri S. Govindarajan, AC (AR) for the Respondent
ORDER
Per Bench
The facts of the case are that M/s. Ultimate Alloys Pvt. Ltd. (herein after referred to as UAL) in Appeal No.E/494/2012 were manufacturers of alloy steel castings. They were purchasing inputs like steel scrap, stainless steel melting scrap and MS scraps from central excise registered dealers availing CENVAT thereof and using them in manufacture of finished products. It appeared to the department that UAL were availing irregular CENVAT credit on non-duty paid inputs rece

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s under Rule 25 of CENVAT Credit Rules, read with Section 11AC of the Act. In adjudication, the original authority confirmed the proposals and also imposed penalties of Rs. 10,65,577/- on UAL, Rs. 40,000/- on Alagappa (under Rule 25), Rs. 40,000/- on M/s. Amman Steel and Rs. 17,000/- on M/s. Vijay Kamal Traders. In appeal, Commissioner (Appeals), upheld the order of the adjudicating authority and rejected the appeals filed before him. M/s. UAL (Appeal No. E/494/2012) and Alagappa (Appeal No. E/474/2014) have preferred appeals before this Tribunal.
2. Today, when the matter came up for hearing, on behalf of Alagappan, none appeared. On behalf of UAL, Shri M.A. Mudimannan appeared and argued the matter. He made oral and written submissions, which can be broadly summarized as under:-
2.1 The entire case has been built on statements recorded from Alagappa and other dealers. However, even in the statement given by Shri T.K. Sundaram, authorized signatory of Alagappa, it had been pointed o

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alers. He also argues that the commercial invoice which were accompanying the goods were different from the description and value contained in the original invoice of the manufacturers. The fact that they have paid the differential duty itself goes to prove the contravention of law. The ld. AR relies on the following case laws:-
a. Mukand Ltd. Vs. Commissioner of Central Excise, Belapur – 2007(7) STR 159 (Tri. Mum.)
b. Steel India Company Vs. Commissioner of Central Excise, Pune – 2014 (310) ELT 184 (Tri. Mum.)
4. Heard both sides.
5. The allegation in the show cause notice, as seen from para 20 thereof, is that UAL failed to take reasonable steps to ensure that inputs in respect of which they had taken CENVAT credit were the goods on which appropriate duty of excise as indicated in the documents accompanying the goods have been paid”. It is also alleged that UAL actually received non-duty paid MS scrap in the guise of MS ingots, MS ingots (rejected), MS angles, centre discs etc. b

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s of four supplier / dealers and the statement of lab incharge of UAL. However, the statement of Shri T.K. Sundaram of Alagappa, one of such dealer, has been retracted during cross-examination. None of the other dealers / suppliers appeared for the cross-examination. The statement of V. Kumaresan, lab in charge, as seen from para 5 of the show cause notice concerns the procedure followed by him while giving the lab test report. He has also stated that “he is not aware of the description mentioned in the invoices / deliver challans accompanying the goods and that in the test report generated, the chemical composition of the raw materials received and also the shape of the sample tested would only be given”. This being so, there is nothing in the statement of P. Kumaresan to support any allegation that the samples tested by him were found to be different from that invoiced. It is also not the case that the department had intercepted some of the raw materials supplied, taken samples there

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In Re : Hafele India Private Limited
GST
2018 (8) TMI 523 – APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (15) G. S. T. L. 600 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAAR
Dated:- 2-8-2018
ORDER NO. MAH/AAAR/SS-RJ/02/2018-19
GST
MR RAJIV JALOTA, MEMBER AND SMT SUNGITA SHARMA, MEMBER
PROCEEDINGS
(under Section 101 of the Central Goods and Services Tax Act, 2017 and the Maharashtra
Goods and Services Tax Act, 2017)
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MGST Act.
The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as

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pending on the nature of supply, the appellant is liable to discharge the applicable tax i.e. Central Goods and Services Tax (“CGST”) and State Goods and Services Tax (“SGST”) or IGST as the case may be.
C. In the pre-GST regime, the, Appellant, being an Importer dealer, was not required to pay Excise duty on its sale to customers. It was merely liable to pay VAT/CST on such sale as per the rate schedule provided in the respective States VAT Act. Further, the rate Schedule under the respective VAT/CST laws was not linked to the HSN classification of the commodity. Under the Maharashtra Value Added Tax Act, 2005 (“MVAT Act”), Caesarstone was taxed at 13.50% VAT in terms of the residuary entry contained in Schedule E to the MVAT Act.
D. GST has been introduced w.e.f. July 1, 2017 which seeks to subsume most of the existing Indirect taxes. Further, the Government has also released various Schedules for classification of goods/services along with applicable GST rates. It is pertinent to

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he Appellant') is to be classified under HSN code 6810.
I. Aggrieved by this Order, the Appellant has filed appeal before this appellate authority based on the grounds expatiated here-in-under:-
GROUNDS OF APPEAL
A. The Impugned Advance Rulinfi has been passed based on an incorrect reading of Heading 2506
1. In the Impugned Advance Ruling, the Learned AARM has read Heading 2506 to say that the kind of “quartz” that would be covered thereunder would be one which may or may not be roughly trimmed or merely cut with the method of cutting being specified as sawing or otherwise. Therefore, in the view of the Learned AARM, said goods can in no way be classified under Heading 2506.
2. In this context, it is pertinent to note that Chapter 25 of the Customs Tariff Act deals with “Salt; Sulphur; earths and stone; plastering materials, lime and cement” whereunder quartz is covered under heading 2506 in the following manner:
“Quartz (other than natural sands); quartzite, whether or not roug

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read as two separate entries and not as a single entry.
4. In any case, it must be noted that scientifically, “quartz” and “quartzite” cannot be used interchangeably. “Quartz” is a mineral comprising silicon and oxygen atoms and having the chemical composition Si02 and is the second most abundant mineral found in the Continental crust of the earth. On the other hand, “Quartzite” is a hard, non-foliated metamorphic rock that was originally “Quartz Sandstone” and underwent metamorphic processes like tectonic compression to form quartzite. From a combined reading of the two, it is evident that quartz and quartzite cannot be used interchangeably and as such the factors relating to quartzite, as mentioned under heading 2506, cannot be applied to products sought to be classified as quartz.
5. In view thereof, it is clear that the Learned AARM has sought to exclude the classification of the said goods as “quartz” based on an incorrect reading of what Heading 2506 actually covers and how the

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g the structure of the product, crushed, powdered etc.” preceding it and does not cover products that have been roasted, calcined or obtained by mixing.
7. At the outset, with respect to the first reason given in the Impugned Advance Ruling, it is important to note that the composition of goods is 93% crushed quartz that is combined with high-quality polyester resins and pigments and is then compacted under intense vibration, vacuum and pressure into dense and non-porous slabs. This is clear from Section 6 of the Technical Data Manual provided by the Appellant's vendor. Similarly, a Guide Specification for these goods, released by the Appellant's vendor, uses the words “Caesarstone” and “quartz” synonymously such that “Caesarstone” and “quartz” are considered to be interchangeable.
8. Reference must be made to Rule 2(a) of the General Rules for Interpretation. A bare perusal of the said Rule provides that a reference to a material or substance shall be taken to include a reference to

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1211) wherein the manner and applicability of the General Rules of Interpretation was discussed. First and foremost, the Apex Court had held that-………………” we can not decide the question of classification of goods under the “Import Tariff” by implications, when there are Rules of Interpretation which are specially framed to aid and assist the classification of goods under appropriate Headings. Those Rules must have precedence over other aids of interpretation.”
11. The clear implication that follows this statement of the Apex Court is that in cases where there exists uncertainty over classification of products based on the wordings of headings in the Customs Tariff Act, the Rules of Interpretation must be resorted to before any other extraneous sources for interpretation. Moreover, while dealing with the question if classification of brass, which is a mixture of copper and zinc such that the component of copper maybe anywhere between 67% to 70%, the Apex Court held that Copp

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ties. Thus, it cannot be said that Heading 2506 does not envisage a mixture of quartz in any form. In view thereof, the observation of the Learned AARM that Heading 2506 does not contemplate mixtures of any sort is incorrect and without proper understanding of the facts.
14. Additionally, it must be noted that even though Explanatory Note 1 to Chapter 25 does state that the products that have undergone processes other than those provided by the relevant Heading are excluded from the ambit of Heading 2506, it is important to note that the only exclusion provided in the first part of Heading 2506 is “natural sand”. Sand is a naturally occurring material composed of finely divided rock and mineral particles. Sand is characterized by the size which is finer than gravel and coarser than silt. However, the said goods is the processed form of quartz in the form of slabs and thus, the same would not be construed as a natural sand. Thus, it is clear that the goods in question does not fall wit

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ed Advance Ruling, we refer to the Chapter Notes provided under Chapter 25 of the Customs Tariff Act. Chapter Note 1 to Chapter 25 provides the various processes that are permitted to be conducted on a product to qualify for classification under this Chapter. The relevant extract of the said Chapter Note 1 is reproduced hereunder:
“1. Except where their context or Note 4 to this Chapter otherwise requires, the headings of this Chapter cover only products which are in the crude state or have been washed (even with chemical substances eliminating the impurities without changing the structure of the product), crushed, ground, powdered, levigated, sifted, screened, concentrated by floatation, magnetic separation or other mechanical or physical processes(except crystallization), but not products that have been roasted, calcined, obtained by mixing or subjected to processing beyond that mentioned in that heading.”.
(emphasis added)
18. In order to understand the entire import of Chapte

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case of Indian Medical Association v Union of India [AIR 2011 SC 2365], the word “or” has been said to denote “an alternative in a series of exclusive arrangements”.
19. From a plain reading of the above interpretations, it is clear that the use of the word “or” in a sentence denotes that the words coming before “or” and after/or” are mutually exclusive of each other. The Explanatory Note to Chapter 25 provides the “positive conditions” on the fulfillment of which goods may be classified thereunder. Applying the above-mentioned principles of interpretation, it is clear that the words preceding “or” and succeeding it should be read in the alternative. In view thereof, the phrase “or other mechanical or physical processes” are to be read separately from the first part of the explanatory note that states that only quartz in its crude state is covered under heading 2506 of Chapter 25 of the Customs Tariff. In other words, products that have undergone inter-alia the mechanical or physical

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or produced by machines [The Concise Oxford Dictionary-
 Tenth Edition, Page 884];
ii. Pertaining to the science of mechanics or mechanism; depending upon mechanism or machinery [Advanced Law Lexicon (5 Edition)];
b. Process: –
i. A series of actions or steps towards achieving a particular end; perform a series of operations to change or preserve [The Concise Oxford Dictionary – Tenth Edition, Page 1139]
ii. A method, operation, or series of actions intended to achieve some end or result; The natural meaning of the word “process” is a mode of treatment of certain materials in order to produce a good result, a species of activity performed on the subject matter in order to transform or reduce it to a certain-stage; “Process” connotes a substantial measure of uniformity of treatment or system of treatment. According to the Oxford English Dictionary, it means 'a continuous and regular actions, taking place or carried on in definite manner' [Advanced Law Lexicon (5th Edition

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s ultimate strength and solidity.
f. Polishing: Slabs are then gauged, calibrated and polished to a perfect finish in a wide range of colors and designs in one of our three textural surface finishes: Polished, Honed or Viento.
The processes explained above have also been elaborated by the Appellant's vendor in its website. –
23. On a combined reading of the definition of the term mechanical process with the manufacturing process carried on by the Appellant's vendor, it can be construed that entire manufacturing process is within the scope of the term mechanical process. Consequently, in terms of Chapter Note 1 to Chapter 25, the manufacturing operations conducted by the Appellant's vendor are within the ambit of permissible processes.
24. Besides this, the Appellant further submits that the HSN system of coding goods is based on the HSN developed by the World Customs Organization (“WCO”). The WCO, periodically releases an Explanatory Note to each of the Chapters/Products of the HS

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ere was no link between the applicable rate of VAT/CST with HSN classification, the Appellant had no reason to determine the same. Subsequently, GST was introduced w.e.f. 1 July, 2017, the GST rates were aligned to the HSN classification of the goods. Since, under the GST regime, the Appellant will be liable to pay CGST, SGST and/or IGST, as required, and accordingly pass credit from the same to its customers, it has become imperative for the Appellant to ensure that the impugned product is classified correctly. Accordingly, since there was no actual classification of the said goods under the Customs Tariff Act at the behest of the Appellant, the question of automatic classification under Heading 6810 under the GST Act does not arise.
26. In the Impugned Advance Ruling, the Learned AARM has made use of a ruling dated 27 August 2002 under the Harmonized Tariff Schedule of the United States to hold that agglomerated quartz sheets are classified under subheading 6810.99.00, which provide

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agstone clarifies that the same is different from Caesarstone.
b. We would also refer to the meaning of the term “concrete boulder”. The word concrete boulder has not been defined anywhere and thus, we would refer to the dictionary definitions. As per The Concise Oxford Dictionary, the word concrete refers to the building material made from a mixture of gravel, sand, cement and water. Further, the word boulder refers to a large rock. Thus, on a combined reading of both the aforementioned definitions, it can be construed that a concrete boulder would mean a large rock made from a mixture of gravel, sand, cement and water.
In view of the above, the product can merit classification only under the residuary category of tariff entry 68109990.
28. Further, it would be worthwhile to refer to Chapter Note 1 to Chapter 68 which clearly provides that Chapter does not cover goods falling under Chapter 25. The relevant extract of the same is as follows:
“1. This Chapter does not cover:
(a)

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3(a) of the General Rules for Interpretation, the said rule provides that a specific description should be prevailed over a generic description. In the instant case, the two headings that merit consideration is Quartz – In lumps (2506) and Other Artificial Stones (6810). In the instant case, the most specific description that relates to the nature of the said goods is under tariff entry 2506.
c The Hon'ble Apex Court, in plethora of judgments held that the heading that provides a more specific description shall be preferred to the headings providing a more general description.
i. ln Indian Metals & Ferro Alloys Ltd., Cuttack v. Collector of Central Excise, Bhubaneshwar, [1991 Supp (1) SCC 125], the Hon'ble Apex Court held that a residuary item can be referred to and such item can be applied only when goods are shown to be not falling under any other specific item. If they are covered by a specific item, residuary item has no application. It was further held that unless the departme

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s juncture, it must be noted that Heading 6810.99.00 under United States Customs law is a residuary entry whereby all articles that cannot be classified under other Headings under Chapter 68 are classified under Heading 6810.99.00. In view of our above submissions, it is clear that when a product is classifiable under two Headings, one of which is specific and one generic, the latter will give way to the former.
33. The Learned AARM has relied on the US Ruling that has classified agglomerated quartz sheets under subheading 6810.99.00 which is the residuary clause. However, upon a reading of the aforementioned New York Ruling, it is clear that even within the United States, there exists legitimate confusion as to the manner in which products can be classified under Chapter 25 and Chapter 68. In such a scenario, where conflicting rulings exist, the Learned AARM as erred in relying on the US Ruling, which can at best have persuasive value.
Personal Hearing
34. A hearing was fixed in th

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ce the product is made of 93% quartz and quartz is mentioned against HSN 2506, the classification of the said goods should be decided under HSN 2506 as specific entry will prevail over generic entry. The Advocates also submitted that their product is made from 93% of natural stone(quartz), hence same can not be classified under HSN 6810 as Artificial Stone.
36. The Jurisdictional Officer opposed the argument of the Advocate citing that 250610 covers Quartz in Lumps and the goods in question are in no way in Lumps as the same are in form of slabs. He further argued that Chapter 25 pertains to Minerals and the goods in question are a manufactured product after undertaking number of processes and thus cannot be classified under 2506 as the said Heading covers natural goods in crude state with minor processes permitted in the Chapter.
Discussions
37. The issue involved in the matter is classification of the product 'Caesarstone^iTnpwfTed by the Appellant, under HSN code 2506 or 6810 for

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iscussed as under.
39. Advance ruling has been passed based on an incorrect reading of heading 2506.
At the outset here we note that to avoid classification disputes under the GST regime, the Customs Tariff has been adopted for descriptive classification of goods under GST. Further, although the tariff entries for the purposes of GST have been kept at 4 digits, in case of any doubt, for exact classification reference will always be need to be made to 6 to 8 digit entries of the HSN, as also the Explanatory Notes provided therein, which have been held to be binding in nature by the courts. Reliance is placed on the following two judgments of Hon'ble Supreme Court in this regard:
(a) Collector of Customs, Bombay v. Business Forms Ltd. [2002(142) 18 E.LT.(S.C)]
 “Classification of goods – Explanatory Notes to HSN not only of persuasive value but entitle to the greater consideration in classifying goods under Central Excise & Customs Tariff”
(b) O.K. Play(lndia) Ltd. v. Com

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en classified under 2506 in the above two forms only. However, the form in which the goods are imported, even if we presume for the sake of argument that these are quartz, are neither in form of 'LUMPS' nor in the form of 'POWDER', but are Agglomerated/Fabricated/Engineered stone in slab form, which is evident from the literature provided by the Appellant themselves. Therefore, the argument of Appellant that AAR has passed the order on an incorrect reading of Heading under 2506, holds no ground.
40. The said goods fall squarely within the provisions of Heading 2506.
The Appellant has claimed that the composition of goods is 93% crushed quartz and it should be classified as quartz only. And yet, if composition is the only criterion for classification, then all manufactured goods would merit classification in the headings of their raw materials. For example- All furniture of wood will find classification under the heading of wood only as it contains more than 90% of wood and there wou

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rocessing beyond that mentioned in each heading. –
The Explanatory Notes to HSN 2506, state that,
Quartz is naturally occuring crystal form of silica.
Any product falls in this heading onlyif it complies with both of the following two conditions:
(a) It must be in crude state or have not undergone any process beyond that allowed in Note 1 to this Chapter; for this purpose, heat treatment designed solely to facilitate crushing is regarded as a process permitted by Chapter Note 1.
(b) It must not be of a variety and quality suitable for the manufacture of gem stones……..
To classify their product as quartz, the Appellant has referred to Rule 2(a) and Rule 3(b) claiming that the said goods are a mixture or combination of quartz. It appears that Appellant had intended to refer to Rule 2(b) in place of Rule 2(a) as Rule 2(a) refers to incomplete or unfinished article, which is not the case here as the goods in question are complete and finished product. As per Rule 2(b), t

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oxy-3,5,5-trimethylhexanoate, Pigment mixture”. The manufacturing process is also available on the website of the manufacturer which inter-alia includes that 'Caesarstone Quartz Surfaces' are manufactured through a highly automated yet strictly monitored process. Two steps of the said manufacturing process are reproduced hereunder-
a. Moulding and Pressing-
The mixture is then poured into a mould and formed into slab sizes of 306×144 cm, or 120×57 inches. It is compressed under very high pressure(nearly 100 tons psi) and vibrated in a vacuum. This removes all the air and creates a compressed surface.
The slabs are then moved to the curing kiln and heated to 90 degree C for 45 minutes which provides the finishes levels of strength and solidity.
From the above, it is evident that Caesarstone is not a natural stone, as its registered name appears to suggest, but is an engineered product, manufactured after a series of processes which are in no way simple mechanical or physical pr

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ure of quartz combined with other materials. Therefore the quartz contained in the goods in question i.e. Caesarstone , is not in crude state and has undergone processes beyond those allowed in Note 1 of Chapter 25, and hence fail to comply with the conditions required for classification under 2506. The reference to other Rules is unwarranted when classification can be decided under Rule 1.
We therefore observe from all the evidences before us that the processes being undertaken by the manufacturer for this product are much beyond the processes mentioned in Chapter Note 1 to Chapter 25, and thus the said goods cannot be classified under this Chapter. All other arguments relating to the semantics of semi colon etc. are disposed of accordingly.
Now, we turn our attention to the competing entry HSN 6810, which covers Articles of Artificial Stones. As per the Explanatory Notes to HSN 6810,
'Artificial Stone is an imitation of natural stone obtained by agglomerating pieces of natural sto

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ngineering Works, cited by the Appellant, pertains to application of Rules of Interpretation in cases where there exists uncertainty over classification of products. Firstly, there is no uncertainty over classification here. Secondly, the classification has been decided relying on the Rules of interpretation only. (Rule 1). Therefore, the said judgment is of no help to the Appellant.
Two other judgments of Apex Court, cited by the Appellant, are also not relevant in this matter as both pertain to classification of products based on specific entry over general entry. When the goods in question are excluded from Chapter 25 based on the Chapter Notes, there is no question of considering the same under that Chapter as specific entry. Moreso, the said goods are specifically classified as Articles of Artificial Stone under HSN 6810.
The Rulings of other countries, referred by the Appellant and Authority for Advance Ruling, are for the purpose of reference only and have no binding effect in

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Corrigendum – Notification No. 2/2018-Compensation Cess (Rate), dated the 26th July, 2018
F.No.354/255/2018-TRU (Pt-II) Dated:- 2-8-2018 Compensation CESS Rate
GST
GST Cess Rate
GST CESS Rate
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Corrigendum
New Delhi, the 2nd August, 2018
G.S.R. 734 (E). – In the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 2/2018-Compensation Cess (Rate), dated the 26th July, 2018, publi

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SCN U.S 122
Query (Issue) Started By: – sudhir sharma Dated:- 1-8-2018 Last Reply Date:- 2-8-2018 Goods and Services Tax – GST
Got 6 Replies
GST
I AM RUNNING A COMPUTER CENTER. I AM NOT REGISTERED UNDER GST. YESTERDAY GOT NOTICE U/S 122 FOR NOT REGISTERING MYSELF UNDER GST. MY ANNUAL TURNOVER IS LESS THAN 20 LAKH. SO GST IS NOT APPLICABLE ON ME. PLEASE SUGGEST HOW TO REPLY THIS NOTICE.
Reply By Alkesh Jani:
The Reply:
Sir, First of all check ITR filed by you. As the data received by the department from 3rd party such as Income-tax department etc. Also, check you bank statement. If the answer is positive than you can file your reply giving the above mentioned evidence.
Thanks
Reply By Rajagopalan Ranganathan:
The Reply:
Sir

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e he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:"
In view of the above you may plead that you are liable to be registered under GST Act and hence you have not obtained registration.
Reply By Ganeshan Kalyani:
The Reply:
As GSTN is allotted PAN based the department is able to get turnover/income details from other departments. There was a point in ITR on GST. On the basis on the information GST department asks the person to register. You will have to prove that your turnover is within the threshold limit of registration.
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
Are you not linked to Information Technology service or (OIDAR) ? I agree with b

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Circular No. 28/02/2018-GST and Order No. 02/2018-Central Tax Withdrawn, Impacting GST Compliance Guidelines.
Circulars
GST
Withdrawal of Circular No. 28/02/2018-GST dated 08.01.2018 as amend

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DUTIES TO BE PERFORMED BY A JOB WORKER GST
Query (Issue) Started By: – ASWIN HARIDAS Dated:- 1-8-2018 Last Reply Date:- 6-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
WHAT WOULD BE THE DUTIES TO BE PERFORMED BY A REGISTERED JOB WORKER WHEN RECEIVES A WORK ORDER
AND DOCUMENTS TO BE ISSUED BY THEM, WHAT IS THEIR ROLE IN GST
Reply By Alkesh Jani:
The Reply:
Sir,
The flier issued by CBIC will be helpful to you. The link is given below:-
http://www.cbic.gov.in/resources//ht

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Applicability of GST
Query (Issue) Started By: – Vineet Kt Dated:- 1-8-2018 Last Reply Date:- 28-8-2018 Goods and Services Tax – GST
Got 9 Replies
GST
Sir,
I am employee of a bank and had availed furniture reimbursement facility from the Bank. Now I have resigned and the bank is charging gst on the wdv of the household items so that the ownership can be transferred in my name. Please clarify if gst is applicable or not. No ITC was claimed as the items were purchased in the pre-gst regime(vat).
Reply By Alkesh Jani:
The Reply:
Sir,
Although No ITC was taken, GST is applicable on transaction value.
Thanks
Reply By Ganeshan Kalyani:
The Reply:
GST will be charged / collected from you by the Bank and pay to the government.

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ce GST would be applicable and regarding input tax credit , in my view if you bank had taken credit in past then the gst payable in only on the differential value.
Reply By Vineet Kt:
The Reply:
Thanks Sir. Understood now.
Reply By Ganeshan Kalyani:
The Reply:
Welcome Sir.
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Nice explanation by Shri Ganeshan
Reply By Ganeshan Kalyani:
The Reply:
Thank you Sir.
Reply By Ramaswamy S:
The Reply:
At the time of purchase of asset, the asset was in the name of the employer and the depreciation was claimed by the employer. The value of the asset was treated as perks in the hands of the employee and IT was charged.
At the time of transfer of asset (pre GST), VAT is charged on the value of the

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GST Revenue collections for July 2018
GST
Dated:- 1-8-2018

The Total Gross GST Revenue collected in the month of July 2018 is ₹ 96,483 crore of which CGST is ₹ 15,877 crore, SGST is ₹ 22,293 crore, IGST is ₹ 49,951 crore (including ₹ 24,852 crore collected on imports) and Cess is ₹ 8,362 crore (including ₹ 794 crore collected on imports). This is broadly on expected lines.
The total number of GSTR 3B Returns filed for the month of July up

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Applicability of GST
Query (Issue) Started By: – MURAGAIAH MELANGI Dated:- 1-8-2018 Last Reply Date:- 5-8-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear All,
i have one more query regarding applicability of GST, we are registered Company in Hyderabad, our corporate office at Spain, every month we are doing BIM Design works / Drafting works, the reports will deliver by an email and Server to Spain Office, monthly hourly basis we will Invoice it in Euros to our Corporate Office (Spain), after 2 months they will credit to our Bank, the bankers will converted in to INR,
However so far we are filing GST Monthly Returns, these sales we are showing Export Services and no GST payment.
Please let me understand why this is

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Need Proper Clarification on GST Applicability
Query (Issue) Started By: – MURAGAIAH MELANGI Dated:- 1-8-2018 Last Reply Date:- 1-8-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Dear All,
i have one query regarding GST, we have our corporate office at Spain, their subsidery Company registered at Hyderabad (Telangana), we have provided the services to Dr. Reddy Labs plant at Vizag (another State – AP) on the instructions of our Corporate office at Spain, my Spain will Invoice to DRL, Hyderabad office will Invoice to our Corporate office at Spain,
What are the Tax implications ?
Please give proper reply against this query.
Thanks & Regards
MURAGAIAH MELANGI
9000181579
Reply By KASTURI SETHI:
The Reply:
Service has

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f 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;
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 establishm

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GIST OF RECENT PRONOUNCEMENTS ON GST (PART-XV)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 1-8-2018

Goods and Services Tax (GST), introduced from July 1, 2017 is more than one year old now but has resulted in operational and implementation disruptions affecting all stakeholders. GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council his however, making regular changes to fix the anomalies and hardships faced by taxpayers.
Taxpayers have already challenged various provisions of GST laws and rules framed thereunder with about 200 writs being filed in different courts. High courts and Supreme court have taken a liberal stand so far in view of the fact that law is new a

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detained goods of assessee under section 129 of Central Goods and Services Tax Act as also Kerala State Goods and Services Tax Act, said authority was directed to complete adjudication provided for under section 129 within a week and release goods, if assessee complies with rule 140(1) of Kerala State Goods and Services Tax Rules.
* In New Shiva Transport Service v. State of U.P 2018 (6) TMI 425 – ALLAHABAD HIGH COURT, where Competent Authority had seized goods of assessee under transport as well as vehicle on account of non filing of Part-B of E-way bill, said authority was directed to release goods and vehicle on assessee furnishing security other than cash or bank guarantee equivalent to proposed tax.
* In Shri Ram Tiles & Sanitary

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ained said goods under section 129 of Kerala State GST Act and issued on assessee a notice. Assessee filed writ petition seeking appropriate directions to Competent Authority to complete adjudication provided for under section 129 in respect of goods detained, said authority was directed to complete adjudication within two weeks.
* In J.V.D. Cera Coating and Colours (P.) Ltd. v. State of U.P 2018 (5) TMI 1703 – ALLAHABAD HIGH COURT , where Competent Authority, exercising under section 67(2) of U.P. GST Act, had conducted search on assessee and seized goods and thereafter passed an order under section 67(6) directing assessee to deposit tax and penalty to extent of ₹ 9.53 lakhs, said authority was directed to release goods on assesse

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Key 15 suggestions on simplifying GST for SME / MSME sector
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 1-8-2018

Key 15 suggestions on simplifying GST for SME / MSME sector
Ahead of GST Council meeting on August 4, which would exclusively focus on the issues / hardships faced by MSME, CBIC is collating grievances/issues related to GST and suggestions thereof for mitigating such issues for MSME taxpayers.
Following suggestions were compiled by Mr. Bimal Jain, Chairman, Indirect Tax Committee, PHD Chamber of Commerce towards making GST Law as Good and Simple Tax for SME/ MSME sector forming heart of Indian Economy, which have been submitted to the Government for their kind consideration:
I Definition of 'Aggregate Turnover' for taking registration in GST
Definition of 'aggregate turnover' as per Section 2(6) of the CGST Act, 2017 (“CGST Act”) inter alia, means aggregate value of all taxable supplies, exempt supplies, exports and inter-state supplies of perso

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nly whether the same is supply of goods or services. Hence, activities/ transactions listed in Schedule II (as supply of service or supply of goods) shall be taxed only when they constitute 'supply' in accordance with provisions of Section 7(1)(a), (b) and (c) of the CGST Act, 2017.
Suggestion(s):
* Removing subjectivity and inclusivity in definition of 'supply' – The definition of term “Supply” starts with “Supply includes” is too wider a definition and with subjectivity, followed by inclusive definition. As this is taxable event in GST, it must be defined concretely so as to avoid any disputes & litigation, as we have past history for the term “Manufacture' for the chargeability of Central Excise Duty.
Further, Section 2(30) of the CGST Act defines Composite supply as a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each

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; 5 lakhs, whichever is higher.
Suggestion(s):
* Extending benefit of composition scheme to other service providers – Like manufacturers, traders and restaurant service providers, benefit of composition scheme must be extended to other service providers also.
* Providing some ceiling for inter-state outward supplies of goods by a composition supplier – Presently, a person opting for composition scheme is not allowed to make any inter-state outward supply of goods. This is creating a bottle neck for small sector. It is suggested here also that certain percentage of turnover may be allowed for inter-state supply of goods for the benefit of SME/MSME sector in true sense.
* No hefty penalties – Penalties in respect of wrongly opted composition scheme, cancellation of registration, etc., must be limited to recovery of differential taxes only without levying hefty penalties / interest considering that the tax payer under a composition scheme would be a small player.
IV Reverse Charge

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or services or both on behalf of other taxable persons whether as an agent or otherwise, are required to compulsory register in GST.
Further, as per 2(5) of the CGST Act, “agent” means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another”.
Suggestion(s):
* Clarification to the effect that Compulsory Registration for 'agents' is restricted to only consignment agents – Though definition of 'agent' under Section 2(5) as well as clause (vii) of Section 24 covers only those persons who supply taxable goods on behalf of another i.e. consignment agents, but debate is going on as to whether the commission agents or brokers who merely facilitate a transaction between two parties like procuring orders etc. are also debarred from the benefit of threshold limits of registration i.e. ₹ 20 La

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tration is not applied within 30 days – This provision is causing undue hardships for the intervening period i.e. between the date of liability and the date of grant of registration as no ITC is made available on procurements made during such period. Further, ITC is also denied for stock held on the day immediately preceding the date of liability to register. It is recommended that alternate mechanism may be developed for genuine cases and registration may be granted with effect from the date of liability if proved bonafide. Further, credit of stock as on date of liability to register must also be allowed in bonafide cases.
VII E-Way Bill
Section 129 of CGST Act validates detention and seizure of goods/conveyance and consequently levying penalty as high as 100% of tax payable along with tax payable for any contravention of provisions of GST Act and Rules made thereunder irrespective of there being any intent to evade taxes or not.
Wide powers conferred under this provision is causin

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sser details. Alternatively, threshold of consignment value exceeding INR 50,000/- requiring generating of E-Way Bill may be increased to INR 2 Lakh per consignment basis for small taxpayers.
VIII HSN wise summary – GSTR-1
Notification No. 12/2017 – Central Tax dated June 28, 2017 provides that a registered person whose annual turnover in the preceding financial year is less than ₹ 1 .5 crores is not required to mention the digits of HSN codes in a tax invoice issued by him. However, in GSTR-1, every assessee is required to give the details of stock sold HSN code wise.
Further, such small tax payers are required to mention 4-digit HSN Code for generation of E-way Bill for movement of goods, having consignment value more than ₹ 50,000/-.
These divergent provisions and procedures are creating obstacles towards ease of business for SME/ MSME Sectors.
Suggestion(s):
* System of uniformity and synchronization to be adhered for brining simplicity and ease of business.
*

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to the appellate authorities which is 10% of the disputed tax amount subject to maximum limit of ₹ 25 crores. Further, it is also proposed under Section 112(8) of the CGST Act, the maximum amount to be deposited to file appeal from the appellate authority to appellate tribunal is 20% of the disputed tax amount along with the amount deposited u/s 107(6) subject to maximum of ₹ 50 crores.
Suggestion(s):
* Maximum ceiling should be 10 crores – Under Excise and Service tax, pre-deposit @ 7.5% of tax in dispute at first level and 2.5% at second level was applicable subject to maximum of ₹ 10 Crores. Keeping such high pre-deposit amount of 10%/20% with maximum ceiling as high as ₹ 25 crores/ 50 crores will cause undue hardship on innocent assesses having genuine case and not easing business for SME/ MSME Sectors.
It is suggested that, pre-deposit amount under GST also should be 7.5% at first level of appeal and 2.5% at second level, totalling together 10% of dis

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cturing of high quality wooden lacquered boxes which are used for packaging of Jewellery, Watches, Tea, Tie, Cufflink, Hankies, and Wedding Gifts etc. Post GST, most of their customers started importing the same from China as the effective duty on imports has reduced by around 16%. The Pre-GST & Post-GST duty structure is as under:
Pre-GST Post-GST
Basic Duty 10% 10%
Countervailing Duty 12.5%
Special Additional Duty 4%
IGST 12%
As imports of finished goods have become cheaper on par credit available to both manufacturer/ Trader, the domestic manufacturers are closing their operations and impacting adversely towards 'Make in India' drive & there is loss of jobs in small scale units.
Suggestion(s):
* IGST credit to be restricted only on import of raw materials – Manufacturers of India must be boosted in comparison to their position with traders of imported finished goods. IGST credit on imports should be restricted only to the manufacturer of imported raw materials. Import of

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oposed under Section 54(3) of the CGST Act, allows filing of refund claim for the unutilized ITC on Inputs & Input Services by due date for furnishing of returns under Section 39 for the period for which the claim for refund of ITC arises, which is presently the end of the financial year.
Suggestion(s):
* Facility on GSTN portal should be enabled to allow monthly and/ or quarterly refund – As of now Form RFD – 01A allows only monthly claim of refunds. Thus, proper GSTN functionality must be ensured for proper execution of proposed change.
* Removing anomaly of no refund on unutilized ITC on capital goods as against Rebate Mechanism of export made on payment of IGST – The CGST Rules do not allow refund of ITC on capital goods when zero-rated supplies are made against LUT without payment of IGST, but in case of supplies made on payment of IGST, refund of ITC on capital goods is allowed. It is suggested that such anomaly must be removed for creating par situations for both rebate and

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ification on meaning of 'non-taxable supply' – A concrete list of activities constituting non-taxable supplies in GST be provided to avoid any confusion as to its inclusion in aggregate turnover and reversal of common credit.
XV GST Audit
Section 35(5) of CGST Act provides that every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant. In this regard, Rule 80(3) of the CGST Rules states that every registered person whose aggregate turnover during a financial year exceeds two crore rupees shall get his accounts audited as specified under sub-section (5) of section 35 and he shall furnish a copy of audited annual accounts and a reconciliation statement, duly certified, in FORM GSTR-9C.
Suggestion(s):
* Two crores limit must be computed per registration wise – Anomaly of word 'turnover' in Section 35(5) viz-a-viz word 'aggregate turnover' in Rule 80(3) be removed. Further,

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In Re: The Banking Codes and Standards Board of India
GST
2018 (12) TMI 1086 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 698 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 1-8-2018
GST-ARA-24/2017-18/B-82
GST
SHRI B.V. BORHADE, AND SHRI 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 The Banking Codes and Standards Board of India, the applicant, seeking an advance ruling in respect of the following question :
Whether GST is liable to be paid on the contribution made by Members towards “Annual Membership Fees and registration fees” to the Corpus Fund of BCSBI and recurring expenditure being incu

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e Bank of India (RBI) in pursuance of the Report of the Taraporewala Committee for the purpose of creating awareness and ensuring the correct following of the Codes and Standards for Services by the Banks in India. For the first 5 years i.e. from 2006 to 2011, it was fully funded by the Reserve Bank of India and the Applicant started to raise its own Corpus Fund for its activities from the Member Banks from 2007 by way of Annual Subscription Fees depending on the Gross Domestic Assets of the member Bank.
From the year 2010-11 to 2014-15, the RBI has funded the Applicant Board to the extent of the shortfall between the expenditure and interest income of the Corpus.
The Annual Subscription is collected only to run the day-to-day activities in the interest of Consumer Protection. Major part of the expenditure is spent on creating consumer awareness of their rights and the balance is towards overhead and salaries. No service is provided by the Applicant to the Member Banks. The Membershi

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an independent and autonomous watchdog to monitor and to ensure that the banking Codes and Standards voluntarily adopted by Banks are adhered to in true spirit by Banks in delivering the services, as promised, to their customers.
iii. To conduct and undertake research of the Codes and Standards currently in vogue in and outside India.
iv. To enter into covenants with Banks on observance of the codes and standards and for that purpose to train employees of such Banks about the Banking Codes.
vi. To advertise and publish promotional literature in newspapers and otherwise about the Codes and Standards for the guidance and knowledge of the public through Web site, advertisements in the newspapers, magazines, journals, TV/ Radio, hoardings or any other mode which the Society may deem fit.
vii. To take up specific assignments, if any, in the areas coming under the Society's objects as projects, turnkey solutions or on any other terms of contracts with in-house resources or with the

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Membership Fees and registration fee out of which the Applicant carries out the various activities as detailed above.
4. Further, the moot question about the very taxability of the activity of the Applicant under the Goods & Services Tax arises on account of the following facts:
a. The definition of 'Supply' as per Section 7 of the Central Goods & Services Tax Act, 2017 and whether the activity of the same would be covered under the term 'Supply'.
b. The definition of 'Consideration' as per Section 2 (31) of the Central Goods & Services Tax Act, 2017 and whether the amount received by way of contribution to the Corpus from Member Banks would be covered under the term 'Consideration'.
c. The activity of the Applicant Board is squarely Covered under the 'Principle of Mutuality'. The various High Courts and Tribunals have consistently held that the activity Of Clubs & Associations for its own members does not amount to Service' and the moneys collected by way of Membership Subsc

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h.
Section 7 of the CGST Act, 2017 defines the term “Supply” as under:
SUPPLY:
“7. (1) For the purposes of this Act, the expression “supply” includes-
(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;
(b) import of services for a consideration whether or not in the course or furtherance of business;
(c) the activities specified in Schedule I, made or agreed to be made without a consideration; and
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.
(2) Notwithstanding anything contained in sub-section (1),-
(a) activities or transactions specified in Schedule III; or
(b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may

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e 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;
(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;”
The term '”Business” is defined in Section 2 (17) of the CGST Act, 2017 as under:
BUSINESS:
“(17) “business” includes-
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
(b) any act

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are engaged as public authorities;”
A sum total of the analysis of the terms 'Supply”, “Consideration” and “Business” would make it clear that the activity of the Applicant does not fall under either of them, as discussed herein under:
SUPPLY:
It is clear from the definition of 'Supply' that firstly the same involves all forms of supply of goods or services. In this regard, there is no question of any goods in this case. As such, it is to be seen whether any service is provided by the Applicant. As already stated above, applicant is collecting Corpus Fund from Member Banks and the entire activity is related to public awareness about the codes & standards followed by member Banks. This entire activity, including the salaries of the staff is paid only through the interest earned at present from the Corpus Fund, which is capitalized.
There is no facility or benefit of any kind offered by the Applicant to Member Banks for their contribution to the Corpus Fund. Also, the entire activit

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Fund' at present. In view of the same, there is no 'Consideration' collected against which any supply of service is provided to the Member Banks. It is their own fund, which is used for creating public awareness and consumer guidance/ protection programmes regarding their banking rights.
BUSINESS:
The Applicant is not doing any activity in the nature of any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity so as to constitute 'Business'. Further, even if we consider clause (e) of the definition of 'Business' i.e. “provision by a club, association, society, or any such body (fora subscription or any other consideration) of the facilities or benefits to its members”, then too, the activity of the Applicant is not covered in as much as there is no any kind of facility, benefit or service given to the Member Banks by the Applicant. The entire fund collected by way of contribution from Member Banks is towards the Corpus and only the interes

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ained, with its income not tainted by commerciality. A formal organization indicating mutuality as between members with bye-laws spelling out mutuality may, however, be necessary as proof of claim to mutuality either as a society or a company registered under Section 25 of the Companies Act, 1956, or even as managed by a public trust, with such activities primarily intended to be confined to its members.
What is Principle of Mutuality?
Often, we come across situations where a group of people forms an association (could be formal or informal) and pool in their surplus income in the association's common fund. The fund so collected is then used for the benefit of the members when needed.
Take for e.g. where the members associate themselves together for the purpose of insuring each other's life on the principle of mutual assurance, that is to say, they contribute annually to a common fund out of which payments shall be made, in the event of death, to the representatives of the deceas

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d made by them which could only be expended or returned to themselves. Based on these conditions and relying on a number of Indian and foreign case laws the Apex Court went ahead to determine whether the Associations or clubs functioned within the four boundaries of the above mentioned principal conditions of the doctrine of mutuality. In fact, the Principle of Mutuality applies to all taxes i.e. Income Tax, VAT/ Sales Tax and Service Tax, alike.
The more important case laws are as below:
Principle of Mutuality was considered in C. I. T. V Bankipur Club 1998 (109) STC 427 (SC) = 1997 (5) TMI 392 – SUPREME COURT. These principles are applicable and have been applied by the Calcutta High Court in Saturday Club ltd. (2005 (180) E.L.T. 437 (Cal.)) =2004 (6) TMI 11 – HIGH COURT CALCUTTA  as concurred to in Dalhousie Institute (2005 (180) E.L.T. 18 (Cal)) = 2004 (6) TMI 10 – HIGH COURT CALCUTTA. (EXHIBIT A-1 to A-3).
2012 (26) S.T.R. 401 (Jhar.) =  2012 (6) TMI 636 – JHARKHAND

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supply of preparations by club to its members was not a sale as there was no transfer of property from one to another, and even though club had distinct legal entity, it was acting only as an agent for its members – Sections 65(66) and 65(67) of Finance Act, 1994. [para 18]
Sale and service – Nature of – Sale entails transfer of property whereas service does not – However, both transactions requires existence of two parties – Sale requires seller and buyer, and Service requires service provider and service receiver. [para 18]
2013 (31) S.T.R. 645 (Guj.) =  2013 (7) TMI 510 – GUJARAT HIGH COURT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD, Ravi R. Tripathi and R.D. Kothari, JJ. SPORTS CLUB OF GUJARAT LTD. Versus UOI, Special Civil Application Nos. 13654-13656 of 2005. decided on 25-3-2013
Club – Finance Act, 1994 – Sections 65(25a), 65(105)(zzze) and 66 – Service Tax on club rendering service to its members – HELD : It was ultra vires and beyond legislative competence of Parliame

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ial Training or Coaching service – Charitable trust – Profits earned cannot be distributed among members of appellant – Surplus to be given to similar body on dissolution – Members required to contribute towards liability but no share of surplus given nor any dividend given – Memorandum of association showing appellant not a commercial concern – Programmes conducted in the nature of continuing education – Objective is professional development and not to impart skills for particular job or examination – Programmes not covered under commercial training or coaching – Appellant not covered under relevant service – Sections 65(26), 65(27) and 73 of Finance Act, 1994. [paras 4.5, 4.7, 4.10]
Club or Association service – Receipts without return – Member not entitled to any specific service in return – Institutions also become members – Membership fee to be paid without expecting any return – Revenue not brought out the services or advantages received by members on paying fees or other amount

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in Service Tax matters, which is now replaced by GST, the issue is now pending before the Honorable Supreme Court of India (Constitution Bench). As such, till such time as the issue is settled by the Apex Court, the Principle of Mutuality should be extended to the levy of GST and no GST is leviable on the activity of the Applicant under the Principle of Mutuality even under the CGST Act, 2017 and the Rules made thereunder.
STATEMENT REGARDING INTERPRETATION OF FACTS:
The following facts pertaining to the Applicant's organization and its activities are relevant to consider the activity of the Applicant as not eligible to GST:
a. The Applicant Board is registered as a “Charitable Pubic Trust” under the Maharashtra Public Trust Act, 1950 and also registered as a “Society” under Societies Registration Act,1860.
b. For the initial 5 years from 2006 to 2011, the Applicant was totally funded by the Reserve Bank of India, Thereafter, the RBI was funding the Applicant o the extent of sho

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ceived by them does not fall within the purview of “Consideration”. Also, in identical cases of taxation under various Statutes such as Income tax, VAT/ Sales Tax and Service Tax the various High Courts and Tribunals have held that no tax is leviable on services provided by Associations and Clubs to its own Members out of the subscription collected, on the Principles of Mutuality. The above facts, therefore, support the contention of the Applicant Board that they are not liable to Goods and Services Tax.
Additional Submission in Advance Ruling Application for “Banking Codes And Standards Board of India”
We are thankful for the patient hearing given on 25-04-2018. Our Clients have made submissions in their Advance Ruling Application pertaining to their activity i.e. collecting Membership Fees from all its Member Banks, which is neither falling under the definition of “Supply” nor under “Consideration” or under the definition or “Business” as provided under CGST Act, 2017, as explaine

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should be for a 'Consideration'.
ii. It is by one person to another.
iii. It should be in the course of or in furtherance of 'Business'.
i. SUPPLY SHOULD BE FOR CONSIDERATION:
The term 'Consideration' is defined under Section 2 (31) of the CGST Act, 2017. The relevant portion is as under:
“Consideration:
Section 2. (31) “consideration” in relation to the supply of goods or services or both includes
(a) any payment made or to be made, whether in money or otherwise, 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;”
The definition of '”Consideration” thus provides that the payment should be made in respect of the “Supply” from one person to another. As such, the definition of “Consideration” is not independent and should be read alongwith the definition of “Supply”, wherein the transaction i

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e self sufficient for meeting its expenses. We are pleased to inform you that with co-operation front all its Members, BCSBI has been able to meet all its expenses out of its own income since last two years.
2. In terms of Rule 5.1 of the Banking Code Rules, 'Membership fees payable by Members shall be in proportion to their gross domestic assets as on March 31, of the previous year and shall be of such amount, as the Governing Council may determine as payable by each Member. The Governing Council (CC) in its 103rd Meeting held on 31.01.2017 reviewed the financial position of BCSBI and has decided to retain the total membership subscription for 2017-18 at last year's level Rs. 800 lakh. Further, as the subscription is calculated based on individual “member's gross domestic assets as on 31.03.2016, the overall “Rate” for computing the Annual Membership Fee for the year 2017-18 has reduced to********%) (previous year's rate was ******%) This annual membership will be credited to the Co

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that the direction for crediting the membership fees for 2017-18 to BCSBI's corpus and suitably investing the same in such manner that income from such investments should be sufficient to fund the future activities of the Banking Codes and Standards Board of India. Accumulating the corpus funds and generating investment income there from would thus enable BCSBI to be financially independent in public interest for meeting its objects.”
Firstly, it can be seen that the contribution of each member Bank is credited only to the Corpus Fund of BCSBI and the interest earned on such contribution is used for the activities of BCSBI. The “Corpus Fund” is needs to be understood in the right perspective, which will establish that the contribution to “Corpus Fund” by each Member will not constitute as “Consideration”, in any manner and the same cannot be taxed under GST.
CORPUS FUND
Corpus Fund is the fund generated and kept for the existence and sustenance of the Organization. For a charitable

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only the interest, if any accrued on the same, which can be used for meeting the objects of the Trust. It is in the form of a Donation and Donee i.e. 'Member Bank' gives specific direction that the contribution given by them, entirely, to be credit to the Corpus (Capital) of BCSBI.
As such, this amount cannot be termed as “Consideration” for BCSBI as they have no control on the said amount like in the manner they wish to use the said contribution. In fact, the Corpus Fund cannot be used for fulfilling the Objects of the Trust but the same has to be kept intact for all times as being “'Capital” of the Trust.
Sample Copy of BCSBI Letter to Banks for Contribution and Direction of the Banks to imply their Contribution to “Corpus Fund” is annexed and marked as (EXHIBIT A-1 & A-2).
The Annual Report of the Applicant i.e. BCSBI of the F.Y. 2016-17, have already been submitted during the Final Hearing which was held on 25-04-2018, which establishes that the Contributions received from Banks

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s issue has been made in the Advance Ruling Application. It is noteworthy that the Applicant & It's Member Banks are not separate from each other and they are the species of mutual undertaking, as discussed in detail in Supreme Court Order in Bankipur Club Ltd. =1997 (5) TMI 392 – SUPREME COURT, which is decided in the year 1997. The Hon'ble Supreme Court has relied upon many English Judgments while reaching to the conclusion of '”Principles of Mutuality”. The said principle has its relevance in all the taxations laws i.e. Income Tax, Service Tax & VAT and has universal application. “Principle of Mutuality” has its implication in all statute as the foundation fact as there is no existence of two separate legal entities. The Applicant has relied upon various Judgments beginning from EXHIBIT A-1 to EXHIBIT B-3 and also certain latest Service Tax Judgments have been submitted during the hearing. The issue is no more res integra as decided by Hon'ble Supreme Court, various High Courts and

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efinition of “Business” to the extent it add the provision of Club to its Members, the Applicant wish to state and submit as under:
“Section 2(17) Business includes-
………..
(e) Provision by a Club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;”
The detailed submission is made on this aspect in the Application, as well. Any Supply is meant to be in the course of business or furtherance of the same. As such, the definition of '”Business” is very vital. In case of the Applicant Section 2 (17) (e) will be applicable. It provides that if any provision is made by Club, Association or similar Body, which should be for Subscription or other consideration and for provision of any facility or benefit to its Members.
In this backdrop, the nature of activity of Applicant and facts of the issue at hand are to be appreciated, which are as under;
The Applicant is not collecting any consideration from i

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ribed by the Applicant. These guidelines are for the benefit of people who undertake any transaction with banks such as their Account Holders etc. This is an obligation on the Banks and the Applicant Association is not providing for any benefit or facility to them being a Member, in any manner. The Applicant Association undertakes research and related work to prepare the Codes of Banks commitment to Customers that are mandatory on their Member Banks. There is no provision of any benefit or facility provided by the Applicant to its Members.
From the above submissions, it is amply clear that the activity of the Applicant does not fall under the ambit of “Business”, at all.
In view of the detailed submission made herein above and the submission made in the Application and the submissions made during the hearing in the matter, it is evident that the activity of the Applicant does not fall under the definition of “Supply” by any parameter and as such the Applicant are not required to obta

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case and the legal provisions related thereto, the Advance Ruling Authority may decide the above framed/ referred questions and Oblige.
03. CONTENTION – AS PER THE CONCERNED OFFICER
The submission, as reproduced verbatim, could be seen thus-
The report in this case was called from Principal Commissioner of Central Tax, Mumbai East and Commissioner of Goods and Service Tax, Maharashtra State, Mumbai, as the applicant is un registered. The report as received from Sh. Anil Khude, Asstt. Commr. Of S.T. Mumbai received is as follows:-
Going through the submission made by M/s. The Banking Codes And Standards Board Of India (hereinafter called as BCSBI) It is observed that the BCSBI was formed in the year 2006 by the RBI and initially it was fully funded by RBI, however from 2007 the BCSBI started collecting annual subscription fees from the member banks. BCSBI is registered under the Societies Registration Act, 1860 and also as a public trust under the Maharashtra Public Trust Act, 1950

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definition under section 2 as follows:
* Section 2(84) “person” includes-
* society as defined under the Societies Registration Act, 1860:
* trust' and
* Section 2(17) “business” includes-
* any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit;
Section 7
* Scope of supply.
(1) For the purposes of this Act, the expression “supply” includes
* all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal
* made or agreed to be made fora consideration by a person in the course or furtherance of business;
* Section 2(31)
“consideration” in relation to the supply of goods or services or both includes
* any payment made or to be made, whether in money or otherwise, 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

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thus evolved that the principle of mutuality is not squarely applicable in present case. The member banks are formed under The Banking Regulation Act, 1989 and has a separate legal entity.
Therefore it can be concluded that the BCSBI is a 'Person' doing 'Business' of 'Supply' of services for monetary 'Consideration' received in the form of subscription. Hence the supply of service by BCSBI is eligible to GST.
04. HEARING
The case was taken up for preliminary hearing on 20.03.2018 when Ms. Kirti S. Bhoite, Advocate along with Sh. Phanraj Jain, C.A. and Sh. H. S, Sharma, Sr. V.P. appeared and made submissions orally as per details in the application and requested for admission of their ARA. No person as present from the side of Jurisdictional GST office.
The application was accepted and was scheduled for final hearing on 04.04.2018 but the applicant requested for adjournment in the matter for personal reasons. Shri Jasbir Singh, Inspector appeared and stated that they had not recei

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tribution made by Members towards “Annual Membership Fees and registration fees” to the Corpus Fund of the applicant and recurring expenditure being incurred by the applicant, The primary issue before us is as to whether the applicant is providing supply of services to their members and if so, is there any consideration received by them for such supply of services/ goods. We clearly find that in the subject case at hand there is no supply of goods. Hence the discussions would be restricted to supply of services only.
Section 7 of the CGST Act, 2017 defines the term “Supply” which is as under:-
“Section 7 (1):- “For the purposes of this Act, the expression “supply” includes –
(a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal “lade or agreed to be made for a consideration by a person in the course or furtherance of business;
(b). ………………;
(c) the activities specified in Schedule 1, made o

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roviding any services to the member Banks. We find that the term 'supply' is an inclusive definition and has to be given a wide connotation. It cannot be restricted only in a narrow compass as lease, rental, barter, etc. We find that the applicant is undertaking various activities which are as under:
i. To plan, evolve, prepare, develop, promote and publish voluntary comprehensive Codes and Standards for Banks, for providing for fair treatment to their customers.
ii. To function as an independent and autonomous watchdog to monitor and to ensure that the banking Codes and Standards voluntarily adopted by Banks are adhered to in true spirit by Banks in delivering the services, as promised, to their customers.
iii. To conduct and undertake research of the Codes and Standards currently in vogue in and outside India.
iv. To enter into covenants with Banks on observance of the codes and standards and for that purpose to train employees of such Banks about the Banking Codes.
v. To ad

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s having similar objects or allied objects by way of subscription, enrolment as a member thereof, financial or other kind of assistance, collaboration, cooperation and in any manner as the Society may deem fit.
x. To initiate, establish and participate in collaborative activities with other institutions/organizations having similar objects within and outside the country.
We find that these activities are undertaken only for and in respect of the Member Banks, who have voluntarily become their members. Hence their primary objective is to guide the public and publicise about the Codes and Standards and Commitment of their Member Banks. Hence we find that the applicant is firstly developing and publishing and then publicizing Banking Codes and Standards for the banks who are their members and after this, they are monitoring its compliance, undertaking further research with regard to codes and standards and are also training bank employees about these codes.
We also find that the appl

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s being performed by the applicant on their behalf and for their benefit in terms of winning confidence of customers about their services. And because of this activity of the applicant it can be stated that it would be one of the factors that would probably lead to good business for the Bank in terms of more clients. Publishing literature, advertisements, etc representing their member banks implies that the public at large are being made aware about their member banks, which would tantamount to supply of service to the said member banks.
Secondly we are required to ascertained if these services are for a consideration or otherwise as we find that the second part of the definition says that “…….all forms of supply of goods or services…….for a consideration.
For performing the said activities, the applicant requires funds which are collected by them in the form of Annual Membership Fees and registration fees. Even though as per their submissions these fees are not used by them,

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……………..;
(d) ……………..;
(e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;
(f) ……………..;
(g)……………..;
(h)……………..;and
(i)……………..;
As per Section 2 (17) (e) of the Act, the applicant, who are registered under the Societies Registration Act, 1860 and can therefore be termed as a society, supplies service in the form of providing facilities or benefits to its Member Banks for a subscription (in this case Annual Membership Fees and registration fees). Such provision of facilities or benefits to its Member Banks, by the applicant is squarely covered under Section 2 (17) (e) of the GST Act. In their further submission, the applicant at one point has stated that “Any Supply is meant to be in the course of business or furtherance of the same. As such, the definition of “Business” is very vital in case of the Applicant Sectio

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ant would supply various services to Banks only on becoming members. Non-members would not be served by the applicant.
The applicant has submitted that RBI provides for guidelines, which are mandatory for each and every bank i.e Co-Operative Banks, Scheduled Banks, Non-Scheduled Banks, Nationalized Banks, Foreign Banks who have their Branches in India. The Applicant prepares the Codes of Banks' commitment to Customers, which is in consonance with the basic frame work in line provided by the RBI related to consumer protection, but this supply of service is only to member banks and not to banks who have not become members.
The applicant has also submitted that the Member Banks undertake to adhere to the Codes of Banks commitment to Customers and guidelines prescribed by the Applicant which clearly imply that adherence to codes and standards of the applicant gives further credence to the functioning and services of these banks.
We find that they have submitted that the RBI guidelines a

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e of Mutuality' and not exigible to GST. As per their submissions and contentions that even in cases, where Clubs and Associations have collected subscriptions from their members and have provided facilities to such members, various High Courts and Tribunals have held such activities not eligible to Tax on the Principle of Mutuality, which is guided by the gospel that “No man can trade with himself; he cannot make, in what is its true sense or meaning, taxable profit by dealing with himself”.
We find that the applicant body was formed in the year 2006 and then went on to enlist Banks as members. This argument put forth by the applicant does not hold good for the present facts. In the subject issue the member banks have not come together to form the applicant body. The applicant body had been formed by the RBI to prepare codes of commitment to customers of various banks and this activity is done by the applicant very selectively i.e. only to Banks who pay them some fees. The applicant

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s in India have been in existence a lot prior to the year 2006, when the applicant body was formed for the purpose of creating awareness and ensuring the correct following of the Codes and Standards for Services by the Banks in India, but here the applicant is only creating awareness about their member banks and that too after collecting Annual Membership and Registration fees from the Banks.
With respect to the applicant's contention that “as regards the Principle of Mutuality in Service Tax matters, which is now replaced by GST, the issue is now pending before the Honorable Supreme Court of India (Constitution Bench). As such, till such time as the issue is settled by the Apex Court, the Principle of Mutuality should be extended to the levy of GST and no GST is leviable on the their activity even under the CGST Act, 2017 and the Rules made thereunder”. We find that the applicant has proceeded on the assumption that there exists a principle of mutuality in their case. However, for re

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In Re: M/s. KEI Industries Limited
GST
2018 (9) TMI 1256 – AUTHORITY FOR ADVANCE RULING, RAJASTHAN – 2018 (17) G. S. T. L. 547 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, RAJASTHAN – AAR
Dated:- 1-8-2018
AAR NO. RAJ/AAR/2018-19/09
GST
SHRI NITIN WAPA AND SHRI SUDHIR SHARMA MEMBER
Present for the applicant: Ms. Jyoti Pal, Advocate, Principal Associate. (Authorized Representative)
Note: Under Section 100 of the RGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of RGST Act 2017, within a period of30 days from the date of service of this order.
The Issue raised by the applicant is fit to pronounce advance ruling as it falls under ambit of the Section 97(2) (b) which is as given under :
(b) Applicability of a notification issued under the provisions of the Act Further, the applicant being a registered person, GSTIN is 08AAACK0251C1Z7, as per the declaration given by him in Form ARA-01

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arious kinds of machines and equipment. Almost all machines and equipment used by Vedanta for petroleum operations run on electricity and thus, electric cables are required for providing electricity to such machines and equipment,
4. M/s. Vedanta issues tender notice for supply of power cables required for its petroleum operations and further selects a supplier who is required to supply power cables in accordance with the specifications of the cables viz. the cable type, length, thickness, material, color, etc. provided by M/s. Vedanta in the order sheet issued for this purpose.
5. The Applicant had been selected by M/s. Vedanta for supplying cables to it by raising Purchase Order No. 4500030187 and 4500030182 both dated 14.11.2017 and amended rev-01 dated 12.01.2018. Directorate General of Hydro carbons certifies that these goods i.e. power cables of various specifications, which are required for the petroleum operations.
6. It is to be noted that in the instant case, the Applicant

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nstant matter relates to applicability of Notification No. 03/2017-Central Tax (Rate) dated 28.06.2017 (hereinafter referred to as “Notification No. 03/2017CT”) to the supplies made by the Applicant.
2. Issues Requiring Advance Ruling :
9. The Applicant submits the following questions for Advance Ruling and its interpretation on the question as under:
a. Whether the power cables supplied by the Applicant would be covered under the scope of SI. No. 1 of Notification No. 03/2017-CT?
3. Applicants Understanding:
10. According to the Applicant, the power cables supplied by the Applicant to M/s. Vedanta for supplying electricity to the machines or equipments used in its petroleum operations would qualify as 'material', 'accessories' 'consumables', and/or 'stores' under Sl. No. 1 of Notification No. 03/2017-CT for running machines listed in the list annexed to that notification for the reasons are furnished herein below:
Applicable provisions:
Notification No. 03/2017-CT
11. Notific

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1 of Notification No. 03/2017-CT. The List of goods appended to Notification No. 03/2017CT specifies various goods including,
“24. sub-assemblies, tools, accessories, stores, spares, materials, supplies, consumables for running, repairing or maintenance of the goods specified in this List”.
13. The Applicant stated that the concessional rate benefit would be available to the goods specified in the list to Notification No. 03/2017-CT provided the goods are used for the activities mentioned in the entry i.e. petroleum operations which are undertaken under the contracts/licenses specified in Sl. No. 1. The list of contracts/license provided in Sl. No. are as under:
a. License or mining leases granted by Government of India or any State Government to the ONGC on nomination basis; or
b. Specified contracts; or c, Specified contracts under New Exploration Licensing Policy; or
d. Specified contracts under Marginal Field Policy; or
e. Specified contracts under the Coal Bed Methane Polic

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rior to introduction of New Exploration Licensing Policy, licenses for petroleum explorations were granted by the Central or State Government. The licenses granted by the Central or State Government before the NELP are also known as Pre-NELP contracts.
17. Applicant further stated that the term “specified contracts” under clause (b) of SI. No. I would mean and include all those contracts which are entered into with the Government of India under the policies/rules other than specifically covered under other clauses of SI. No. I and would include Pre-NELP contracts.
18. Further according to him, this benefit would also be subject to the following conditions:
a. the goods are supplied to an Indian company or a foreign company or a consortium or a contractor thereof, in connection with the operations undertaken under a contract with the Government of India; and
b. a certificate from the Directorate General of Hydro carbons certifying that the goods are required for the petroleum operat

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d in connection with petroleum operations undertaken under specified contracts;
iii. The goods are supplied to an Indian company or a foreign company or a consortium or a contractor thereof in connection with the operations undertaken under a contract with the Government of India; and
iv. A certificate from the Directorate General of Hydro carbons certifying that the goods are required for the petroleum operations referred in the Sl.No. 1 is produced
4. Applicability of the above analysis to the present case:
The conditions of availing benefit under the notification are satisfied in the instant case
22. Condition No. 1 : As far as condition no. 1 is concerned, it is to be analyzed if the power cables supplied by the Applicant to Vedanta would be covered by entry no. 24 of the list appended to Notification No. 03/2017-CT which covers “sub-assemblies, tools, accessories, stores, spares, materials, supplies, consumables for running, repairing or maintenance of the goods specified in

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airn Energy India Ltd. was merged into Vedanta Ltd. Thus, with this merger, the petroleum exploration license granted to Cairn Energy India Ltd. was transferred to Vedanta.
25. Condition No. 4: It is also explained in the facts above that at the time of placing order with the Applicant, Vedanta produces a certificate issued by the Directorate General of Hydrocarbons certifying that the goods specified in the certificate are required for the petroleum operations undertaken by Vedanta. Thus, the Applicant supplies the goods to Vedanta only when it produces the requisite certificate
26. Applicant insisted that in view of the above, it can be safely concluded that in the instant case, condition no. 2, 3 and 4 as discussed above, are satisfied by the Applicant.
27. As far as condition no. 1, he stated that a detailed analysis of the same is given in the following paragraphs.
The power cables supplied by the Applicant qualify' as accessories which are required for running the goods (mach

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29. Moreover, while determining the meaning of the term 'accessories', the Applicant has relied on various judgments:
a) Hon'ble Apex Court in the matter of Annapurna Carbon Industries Co. vs. State of Andhra Pradesh [AIR 1976 SC 1418] = 1976 (3) TMI 156 – SUPREME COURT OF INDIA,
b) CCE, Salem vs. Madras Aluminum co. Ltd., [2017 (349) ELT 133 = 2016 (12) TMI 1374 – MADRAS HIGH COURT
c) CC, Bangalore vs. NI Micro Technologies Pvt. Ltd. [2014 (311) ELT 458] = 2013 (12) TMI 709 – CESTAT BANGALORE,
d) State of Punjab vs. Nokia India Pvt. Ltd. [2015 (315) ELT 162] = 2014 (12) TMI 836 – SUPREME COURT,
e) Allied Healthcare, India vs. CC, Chennai [2010 (259) ELT 711] = 2010 (6) TMI 418 – CESTAT, CHENNAI
f) CCE, Chandigarh vs. Arihant Spring Mills [2002 (147) ELT 1181]. = 2001 (5) TMI 779 – CEGAT, NEW DELHI
g) Ashoka Synthetics Ltd. vs. CCE, Bhubaneswar [1997 (96) ELT 170] = 1997 (7) TMI 340 – CEGAT, CALCUTTA,
h) Grasim Cement vs. CCE, Raipur [1997 (96) ELT 354] = 1997 (8) TMI 209 – C

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y in which an article will fall.
10…….”Accessories” are not necessarily confined to particular machines for which they may serve as aids. The same item may be an accessory of more than one kind of instrument.
……Emphasis Supplied
31. He further stated that in view of the above discussions and the judicial decisions relied upon, it is submitted that the power cables supplied by the Applicant to Vedanta in the instant case qualify as accessories for running the machines given in the list annexed to Notification No. 03/2017-CT.
The power cables supplied by the Applicant also qualify as material for running the goods (machines) specified in the list
32. Further according to him entry no. 24 of the list appended to Notification No. 03/2017-CT also covers the materials required for running, repairing or maintaining the machines provided in that list. The term 'material' used in the list is not defined in Notification No. 03/2017-CT. Thus, it becomes imperative to refer to the di

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rticular activity.
34. In view of the above discussions applicant states that the power cables supplied are required for a particular purpose i.e. providing electricity to the machines and thus, are essential for the functioning of machines. Therefore, the power cables so supplied by the Applicant would qualify as material required for running the machines given in the list appended to Notification No. 03/2017-CT.
The power cables supplied the Applicant also qualify as consumables or stores which are required for running the goods (machines) specified in the list
35. He further stated that besides spares, materials, accessories, entry no. 24 of the list to Notification No. 03/2017-CT also covers stores or consumables. In order to decide if the power cables supplied by the Applicant would qualify as stores or consumables, attention is invited to the decision of Hon'ble Ahmedabad Tribunal in Sanghvi Aerospace (P) Ltd. vs. CCE, Ahmedabad [2009 (247) ELT 578] = 2009 (6) TMI 808 – CESTAT

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hat it can be inferred that the power cables supplied by the Applicant to Vedanta which are meant to be used for running the machines would be covered under either of the several heads given under entry no. 24 of list to Notification No. 03/2017-CT. Therefore, supplies of power cables by the Applicant to Vedanta would be eligible for the benefit of concessional rate of duty as provided under Notification No. 03/2017-CT.
5. ISSUES REQUIRING ADVANCE RULING AND APPLICANT'S UNDERSTANDING:
In the light of aforementioned, the Applicant seeks to enter the following question for Advance Ruling and its interpretation of the question will be as under:
Question:
Whether the power cables supplied by the Applicant are covered under the scope of Sl. No. 1 of Notification No. 03/2017-CT ?
6. Applicant's Understanding:
The Applicant is supplying power cables to Vedanta which is covered under entry 24 of the list annexed to Notification No. 03/2017-CTas material or accessories or stores or consum

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ated that sub-assemblies, tools, accessories, stores, spares, materials, supplies, consumables for running, repairing or maintenance of the goods relates to the one specified in this list. Which means goods used for running, repairing or maintenance of the goods specified in this list are only eligible for concessional rate. While applicant has not mentioned that in which machine/ machines specified in this list, power cable will be used as sub-assemblies, tools, accessories, stores, spares, materials, supplies, consumables for running, repairing or maintenance of the goods. Further the applicant has stated that he is not aware of the type, nature and functions etc of the machines or equipments for which the cables are required for.
So in his opinion the condition “The goods must be covered under the list annexed to the notification no. 03/2017-CT” which is not fulfilled and hence power cable do not qualify description of goods mentioned in the notification that is to say “Goods speci

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ed at concessional rate as mentioned in the notification.
e) Notification No. 03/2017 provides for the intra-State supplies of goods, the description of which is specified in column (3) of the Table with relevant List appended hereto and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table, from so much of the central tax leviable thereon under section 9 of CGST Act as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table and subject to the relevant conditions annexed to the notification.
f) Further, SI. No. 1 of Notification No. 03/2017-CT provides that the said benefit would be available for the goods provided in List 1 of Notification No, 03/2017-CT. The List of goods appended to Notification No. 03/2017-CTspecifies various goods including,
“24. sub-assemblies, tools, accessories, stores, spares, materials, suppli

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ken under specified contracts;
iii. The goods are supplied to an Indian company or a foreign company or a consortium or a contractor thereof in connection with the operations undertaken under a contract with the Government of India; and
iv. A certificate from the Directorate General of Hydro carbons certifying that the goods are required for the petroleum operations referred in the Sl. No. 1 is produced
j) Applicant has claimed concessional rate on supply of electric cables tilling under entry no. 24 of the List of goods appended to Notification No. 03/2017-CT specifies various goods including sub-assemblies, tools, accessories, stores, spares, materials, supplies, consumables for running, repairing or maintenance of the goods specified in this List”.
k) This clearly means that sub-assemblies, tools, accessories, stores, spares, materials, supplies, consumables for running, repairing or maintenance are only restricted and related to those goods as specified in entry no. 1 to 23

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ssional rates as mentioned in Notification no.03/2017-CT.
Entry no.24 of the list specifies
“24. sub-assemblies, tools, accessories, stores, spares, materials, supplies, consumables for running, repairing or maintenance of the goods specified in this List”.
“Goods specified in this List” means only those goods which are covered under Entry no. 1 to 23 of the list and concessional rate will only be available for sub-assemblies, tools, accessories, stores, spares, materials, supplies, consumables for running, repairing or maintenance of those goods which strictly fall under entry no. I to 23 of the list.
n) Entry no. 24 of List of goods appended to Notification No. 03/2017-CT. restricts accessories, stores, materials or consumables ONLY in relation to the goods specified in the list of goods from entry no. 1 to 23. What applicant has failed to specify is that “Electrical cables” supplied by him will be accessories. stores, materials and/or consumables to which specific goods as menti

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cables supplied by the Applicant are not specific or exclusive to the machines used by Vedanta. In fact, the said power cables so supplied to M/S Vedanta are capable of being used with more than one kind of machines. “(pg. 20 of ARA)
Here again the applicant has mentioned that Electrical Cables so supplied by them
1) are not specific and exclusive to machine used by M/s. Vedanta
2) supplied cables are capable of being used with more than one kind of machine by M/s. Vedanta.
Thus it can be inferred that:
1) dealer is not aware off and has not clarified that “Electrical cables” supplied will be used as accessories, stores, materials and/or consumables to which goods falling under entry no. 1 to 23 of the list.
2) “Electrical cables” supplied can very well be used as by M/s. Vedanta as accessories, stores, materials or consumables for even those goods which are not covered under entry no. 1 to 23 of the list.
3) It is to be noted that in the instant case, the Applicant is not aw

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perations at work site (Block RJ-ON-90/1). But will these electrical cables supplied be used as accessories, stores, materials and/or consumables for goods ONLY covered under entry no. 1 to 23 is not clear from the documents and evidences submitted by the dealer. Even the applicant seems not sure of its uses. Concessional rate is conditional to terms and conditions of Notifications.
t) Task of petroleum operation is very vast and complex and the process involves multiple machine and equipment along with their accessories, stores, materials, consumables but concessional rate as per notification is only awarded to supply of goods mentioned in the entry no 1 to 23 of the list and their CORRESPONDING accessories, stores, materials, consumables (entry no 24).
It is a clear possibility that there are other machine and equipment and their accessories, stores, materials and consumables which though being used in process of petroleum operation but are not enjoining concessional rate as they a

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ccessories, stores, materials and/or consumables for running of the goods specified in the List, then going through this logic poles, insulators, transformers and all other equipments used to ensure flow of electricity at work site from the main source to the supply point are to be covered under this classification.
v) Main function of Electric Cables is to supply and distribute electricity to various points at a worksite so electricity can be made available for all electrical, electronic, machines and mechanical equipments using electrical energy to function but these Electric Cables so supplied will whether be used to supply electricity ONLY to those goods which are covered under I to 23 of the list is not clear from documents submitted nor has any undertaking of this regard has been given by applicant.
w) Thus to consider Electrical Wires to strictly fall under entry no. 24 vis-a-vis goods falling under entry no. 1 to 23 will not be correct. Apart from fulfilling other condition a

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Rajasthan Tax Consultants Association Versus Union of India
GST
2018 (9) TMI 1034 – RAJASTHAN HIGH COURT – 2019 (28) G. S. T. L. 6 (Raj.)
RAJASTHAN HIGH COURT – HC
Dated:- 1-8-2018
D. B. CIVIL WRITS NO. 15239 of 2017
GST
MR KALPESH SATYENDRA JHAVERI AND MR ASHOK KUMAR GAUR, JJ.
For The Petitioner : Sanjay Jhanwar, Rahul Lakhwani and Ms. Aditi Tank
For The Respondent : R.D. Rastogi, ASG, Anand Sharma, Ankit Popli, R.B. Mathur, Kinshuk Jain
ORDER
1. By way of this petition, the petitioner has prayed for following relief:-
“(a) Issue appropriate writ, order, direction to the effect of declaring that the timelines prescribed under the Extension Notifications (Notification Number 18/2017, Notification number 19/2017 and Notification Number 20/2017- dt. 8th August, 2017 under GST Act, 2017) as time period viz 1st to 5th September, 6th to 10th September, 11th to 15th September, 2017 for the month of July, 2017 and 16th to 20th September, 2017 for the month of Augu

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Notification dt. 17th August, 2017 and 21st August, 2017 issued under RGST Act, 2017) as last dates for filing returns of GSTR 3B are arbitrary on account of the various shortcoming/glitches on GSTN portal.
(d) Issue writ in the nature of certiorari or any other appropriate writ, order, direction to the effect of quashing the GSTR 3B Notification and to issue writ in the nature of Mandamus or any other appropriate writ, order, direction to the respondents to forthwith rectify/correct the technical glitches/shortcomings in the GSTN portal and to issue fresh Notifications/cut off dates for filing GSTR 3B return affording reasonable time period to assessee for making the statutory compliances.
(e) Issue appropriate writ, order or direction to the effect declaring the Composition Orders (Order No.0l/2017-GST dt. 21st July and Order No.F.17 (131) ACCT/GST/2017/2258 dt. 21st July, 2017 prescribing the last date as 16th August, 2017 for filing form CMP 01 (for availing composition scheme

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ailable on the GSTN portal with the specific provision enabling the assessee to opt out from the desired date.
(g) Issue appropriate writ, order or direction to the effect declaring the requirement of filing of HSN details in Form TRAN 1 for assessee's having turnover of less than Rs. 1.5 crore as arbitrary and in contravention of Notification No. 12/2017 dt. 28th June, 2017 and issue writ in the nature of mandamus or any other appropriate writ, order or direction to the effect directing respondents to either prescribe separate form for assessee's having turnover of less than Rs. 1.5 crore or make specific provision for the same in form TRAN 1 or by any other means to give complete effect to Notification No.12/2017 dt. 28th June, 2017.
(h) Issue appropriate writ, order or direction to the effect declaring the Waiver Notification (Notification No.28 of 2017 dt. 1st September, 2017) is so far as not providing for the refund of late payment fees already deposited by tax payers

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of business, and other ancillary details submitted through Form REG-1 by filing Form REF 14.
(k) Issue writ in the nature of mandamus or any other appropriate writ, order, direction to the respondents to remedy the defect on GSTN portal and thereby enable the assessee to edit/amend/correct the particulars filled in Form GSTR 3B before online filing of return.
(l) Issue appropriate writ, order, direction to the effect declaring the act of respondents of making the form TRAN 1 available on the GSTN portal after delay of 51 days from the appointed date, i.e., 1st July, 2017 as arbitrary and being in not in confirmity with Rule 117 CGST Rules, 2017 and RGST Rules, 2017 and issue appropriate writ in the nature of mandamus or any other appropriate writ, order or direction to the effect directing the respondents to suitably extend the date for filing from TRAN.”
2. This court on 20.9.2017 has passed the following order which reads as under:-
“1. We have heard counsel for the petitione

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and Mr. Sharma and Mr. Ranka will supply address of the Officer of the Central Government.
(iii) Those who inform so by email, their problem will be resolved expeditiously.
4. In the meantime, no coercive action (penal interest, late fees and prosecution) against any of the client of the petitioners members who are referred in the petition and are informing by email, will be protected. The composition Scheme is extended upto 30.9.2017, therefore, desirous assessee can apply.
4.1 In that view of the matter, those who could not apply under composition scheme upto 16.8.2017, their applications will be accepted and if their case does not fall under composition log-in, they will send it by email and their applications will be accepted w.e.f. 1.7.2017.”
3. In our considered opinion, it will be appropriate that the GST Council will decide the issue. However, the question regarding delay in filing of return, registration or late fees will not be changed and the same will be complied wi

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SARE REALTY PROJECTS PRIVATE LIMITED, DOTCOM HOME FASHIONS PVT LTD., TARA CHAND SALUJA & SONS, VEE GEE AUTO COMPONENTS PVT. LTD., ANKUR OIL & REFRIGERATION, M/s TARA CHAND SALUJA & COMPANY, M/s ALLIANCE GRAPHIC EQUIPMENT PRIVATE LIMITED, M/s BATRA ART PRESS, BENLON INDIA LTD., FRV POWER INDIA PVT. LTD., AMAN MOTORS Versus UNION OF INDIA & ORS.
GST
2018 (9) TMI 373 – DELHI HIGH COURT – 2018 (16) G. S. T. L. 177 (Del.)
DELHI HIGH COURT – HC
Dated:- 1-8-2018
W. P. (C) 1300/2018, W. P. (C) 1701/2018 & CM No. 7010/2018, W. P. (C) 2192/2018 & CM No. 9058/2018, W. P. (C) 2332/2018, W. P. (C) 2333/2018 & CM No. 9801/2018, W. P. (C) 2475/2018 & CM No. 10262/2018, W. P. (C) 2740/2018 & CM No. 11123/2018, W. P. (C) 2885/2018
GST

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Standing Counsel, Mr. Abhishek Ghai, Advocate for Revenue, Mr. Nidhi Mohan Parashar, Mr. Umang Kumar Singh, Advocate, Mr. Sanjeev Narula, Sr. Standing Counsel, Mr. Abhishek Ghai, Advocate for Revenue., Mr. Sanjeev Narula, Sr. Standing Counsel, Mr. Abhishek Ghai, Advocate for Revenue. , Mr. Sanjeev Narula, Sr. Standing Counsel, Mr. Abhishek Ghai, Advocate for Revenue, Mr. Kriti Sinha, Advocate for Mr. Vibhooti Malhotra, Advocate for CBEC., Mr. Sanjeev Narula, Sr. Standing Counsel, Mr. Abhishek Ghai, Advocate for Revenue., Mr. Sanjeev Narula, Sr. Standing Counsel, Mr. Abhishek Ghai, Advocate for Revenue., Mr. Brajesh Kumar, Govt. Pleader for UOI., Mr. Rajesh Kumar, Advocate, Mr. Amit Bansal, Mr. Akhil Kulshrestha, Advocates , Mr. Ashim Sood,

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. It is submitted that the case of the present petitioners is also being considered as per the grievance redressal mechanism. Lastly, it is submitted that wherever any claim or representation is rejected, a speaking order giving the reasons would be passed and communicated to the concerned petitioner. Learned counsel for the petitioners state that they have already made a representation to the respondent authorities under the grievance mechanism and would pursue the said remedy. However, in case they are aggrieved by the final determination, they should be given liberty to challenge the order. The petitioners also reserve their right to challenge the constitutional vires if required and necessary. Recording the aforesaid, the writ petitions

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Andhra Pradesh Goods and Services Tax Act. 2017 – Proper Officers for exercising powers Under Section 130 of APGST Act, 2017 Regarding.
CCW/GST/74/2015-A Dated:- 1-8-2018 Andhra Pradesh SGST
GST – States
Government of Andhra Pradesh
Commercial Taxes Department
Proceedings of the Chief Commissioner of State lax
Present: Sri. J. Syarnala Rao, I.A.S.,
Office of the
Chief Commissioner of State Tax,
Andhra Pradesh:: Eedupugallu
Near Vijayawada
CCTs Ref. No. CCW/GST/74/2015-A, Date: 01.08.2018
Sub: Andhra Pradesh Goods and Services Tax Act. 2017 – Proper Officers for exercising powers Under Section 130 of APGST Act, 2017 Regarding.
In exercise of the authority conferred on him under Sub-Section 91 of Section 2 read with Sub sec

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In Re: M/s. Akansha Hair & Skin Care Herbal Unit Private Limited,
GST
2018 (8) TMI 772 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – 2018 (16) G. S. T. L. 277 (App. A. A. R. – GST)
APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL – AAAR
Dated:- 1-8-2018
02/WBAAAR/Appeal/2018
GST
Mr. Rakesh Kumar Sharma, Member And Ms. Smaraki Mahapatra, Member
Present for the applicant:
Sri Pradip Kumar Mukherjee, Authorised Representative, and Sri Anjan Dasgupta, Advocate
This appeal has been filed by M/s. Akansha Hair & Skin Care Herbal Unit, holding GSTIN 19AAECA3926GlZQ (hereinafter referred to as the “Appellant”), on 08.05.2018 against the Ruling dated 09.04.2018 pronounced by the West Bengal Authority for Advance Ruling.
2. The Appellant is a manufacturer of skin care preparations and had filed an application for Advance Ruling before the West Bengal Authority for Advance Ruling on the classification of 33 of its products, which are as follows:
Sl.
Name of

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irritation of prickly heat, very helpful remedy in summer boils and pimples.
9
Romancho (Kewra)
Soothing agent having anti-bacterial, anti-fungal anti-septic activity. Prevents excessive perspiration. Feeling of freshness, increases lustre of skin, gives relief from itching sensation and irritation of prickly heat, very helpful remedy in summer boils and pimples.
10
Swarnabho
keeps skin soft, fair, glowing, stops pre-mature ageing and wrinkling of skin, prevents sun burn rashes, dryness, discoloration and burning sensation of skin. Also helps growing of your baby
11
Komal Shree
Keeps skin soft, fair, glowing, stop pre-mature ageing and wrinkling of skin, prevents sun burn rashes, dryness, discoloration and burning sensation of skin. Also helps growing of our baby
12
Nabaroop (Aloe Vera and Chandan)
Properly cleanses, exfoliates and moisturises the skin. Helps for removing make-ups and sunscreen which clogs pores. Strengthens the natural protection of the skin. Instantly enh

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ich clogs pores. Strengths the natural protection of the skin. Instantly enhances glow and fairness. Improves the skin texture of skin and bod
17
Swarnali
Improve the skin complexion. Removes acne, pimples, black spot, black heads, hyper pigmentation. Makes the skin glossy and shiny.
18
Tanujjal
Gently scrubs away skin scars, white & black heads, dead cells, makes skin smooth, healthy and glowing.
19
Twaka Snigdha (Lemon)
Helps in the normal firming and toning of skin along with hydrating the skin to make it glow, fresh and smooth. Helps to skin and tighten skin pores. Make skin soft and more elastic, reduces skin oilyness.
20
Twaka Snigdha (Orange)
Helps in the normal firming and toning of skin along with hydrating the skin to make it glow, fresh and smooth. Helps to skin and tighten skin pores. Make skin soft and more elastic, reduces skin oilyness.
21
Twaka Snigdha (Neem)
Helps in the normal firming and toning of skin along with hydrating the skin to make it glow, fre

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scorching sun and environmental pollution and hazards of heavy make-up.
28
Tanumitra 40
Protects from sun-burn injury.
29
Tanumitra 60
Protects from sun-burn injury.
30
Sarnajyoti
Removes skin impurities, black heads, dead skin cells, pimples and scars.
31
Sunayana
Reduces dark circles and puffiness of the skin around the eyes. Softens fine lines and removes wrinkles.
32
Rupam
Pimples pack
33
Pailab
Anti-Crack Cream
The Appellant had argued that its skin care preparations are Ayurvedic Medicaments. meant for therapeutic or prophylactic uses and put up in packaging for retail sale, and entirely correspond to the description of goods under Tariff Head 3004 of Customs Tariff Act, 1975 (hereinafter referred to as the 'Tariff).
3. The West Bengal Authority for Advance Ruling (hereinafter referred to as “WBAAR”) after hearing the matter and examining the documents decided vide its Ruling dated 09.04.2018 that:
“Preparations for the care of the skin namely, Rupam (Pim

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dvance Ruling.
5. We observe that Advance Ruling had been sought by the Appellant for 33 different products, each with different ingredients and different uses. It is not that the products listed can be clubbed into one single category to pass a Ruling. Instead, each product has to be taken up separately and considered carefully.
The Appellant should have applied for each product individually since classification is sought for each individual product.
Authority for Advance Ruling is cautioned against accepting similar applications in future where multiple products are covered in a single application.
However, since WBAAR had admitted the application and passed a Ruling, the
Appeal filed is being taken up for disposal.
6. The Appellant has filed the Appeal on the following grounds:
a. The Ruling of the WBAAR has erred in not passing a Ruling for products that have yet to come into existence. Under Section 95(a) “advance ruling” means a decision provided by the Authority or the Ap

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cannot treat a product differently;
j. Uniformity of classification;
k. Classification beneficial to the assessee is to be adopted;
I. The medicinal products are substantial and not subsidiary.
7. The core issue involved in this appeal is whether Ayurvedic Products manufactured by the Appellant, are classifiable under Chapter 33, or any other Chapter, or as medicaments under Chapter 30 of the Tariff.
8. The Appellant has rightly pointed out that the Ld. West Bengal Advance Ruling Authority has erred in not pronouncing its order on the products namely 'Swarnajyoti', 'Sunayana' and 'Tarumitra-60' as the products have not yet come into existence which is contrary to the definition of Advance Ruling as laid down under clause (a) of Section 95 GST Act, which specifically provides that supply of goods 'proposed to be undertaken' by an applicant also falls under the ambit of Advance Ruling.
Hence, this Appellate Order will include Advance Ruling on the su

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he Appellant, in it is written submissions, pointed out that the Ld. WBAAR has erred by not considering that the 'heading' [as specified in the First Schedule to the CTA' 75 (Customs Tariff Act, 1975), read with the Rules for the Interpretation of the First Schedule to the CTA' 75, as well as the Section and Chapter Notes] does not require any product to be offered primarily as 'medicament' to merit classification of the relevant products as medicaments. Reference has been made to the judgements passed by the Hon'ble Supreme Court of India in B.P.L. Pharmaceuticals Ltd. Vs. Collector [1995 (77) E.L.T. 485 (S.C.)] and Lohia Machines Ltd. vs. UOI & ORS [1987 (28) E.L.T. 234 (All.)]. The Appellant argued, citing the decision of the Hon'ble Tribunal in CCE, Pune vs. ESSEN Products (1) Ltd. [2006 (200) E.L.T. 342 (Tri. – Mumbai)], that packing is not indicative of classification under Chapter 33 of the Tariff as cosmetic or toilet preparation and that adverti

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smetics Act 1940, the West Bengal Goods and Services Tax Act, 2017, the Central Goods and Services Tax Act, 2017, the Integrated Goods and Services Tax Act, 2017, the Customs Tariff Act, 1975, or Rules framed thereunder. The term “medicament” as defined in the Oxford Dictionary is “a substance used for medical treatment”; as per McMillan Dictionary it is “a substance used for treating an illness or injury”, as per Collins Dictionary it is “a medicine or remedy in a specified formulation”. The American Heritage Medical Dictionary defines it as “An agent that prompts recovery from injury or ailment; a medicine”.
World Health Organisation (WHO) defines medicine as “the sum total of the knowledge, skills, and practices based on the theories, beliefs, and experiences indigenous to different cultures, whether explicable or not, used in the maintenance of health as well as in the prevention, diagnosis, improvement or treatment of physical and mental illness.”
14. In other words, to determin

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American Heritage Medical Dictionary], or “A complaint disease or physical disorder” [Farlex Partner Medical Dictionary]
17. Before taking up the product-wise analysis, an understanding of the skin ailments mentioned by the Appellant in the Annexure-X of written submission, is necessary:
“Blackheads”: Usually the primary sign of acne, consisting of a widened hair follicle filled with skin debris, bacteria, and oil called sebum. A blackhead has a wide opening to the skin and is capped with a blackened mass of skin debris.
“Acne”: Localized skin inflammation as a result of over activity of the oil glands at the base of specialized hair follicles. Acne happens when oil (sebaceous) glands come to life around puberty, when these glands are stimulated by male hormones that are produced in the adrenal glands of both boys and girls.
“Freckles”: a small patch of light brown colour on the skin, often becoming more pronounced through exposure to the sun.
“Black Patches”: Dark patches refer t

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considered. None of these are, by themselves, diseases or illnesses, or even injuries, though they may be caused by one or more of these. But treating them will not be addressing the disease or the illness or the injury. The products listed above are only addressing the external manifestations and are intended to be rubbed, poured, sprinkled or sprayed on, or introduced into, or otherwise applied to, the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance.
19. The Drugs and Cosmetics Act, 1940, defines cosmetic under clause (aaa) of Section 3 as under-
“cosmetic” means any article intended to be rubbed, poured, sprinkled or sprayed on, or introduced into, or otherwise applied to, the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, and includes any article intended for use as a component of cosmetic;
20. The Indian Standard (I.S. 4707-2) published by the Burea

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off hair products and 2.0% in other products, de-categorising the item as “cosmetics”.
From Annexure 'F' Appellant's written submission it has been found out that:
Sl. No.
Name of the product
Quantity of Salicylic Acid per 5 gms
Percentage
1
Komol Parash
0. 104
2.08
2
Romancho Lavender
0.203
4.06
3
Romancho anilla
0.203
4.06
4
Romancho (Kewra)
0.203
4.06
22. However, mere presence of an increased percentage of Salicylic acid does not automatically make a product a medicament. The other ingredients as well as the purpose and use of the product needs to be ascertained before determining its nomenclature:-
Romancho (Lavender/Vanilla/Kewra) are all labeled as “Body Talc” and the descriptions regarding their use on the retail packs are “Feeling of freshness, increases luster of skin, gives relief from itching sensation and irritation of prickly heat, very helpful remedy in summer boils and pimples”
Komal Parash is labeled as “Baby Body Talc” and the desc

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the products are used mostly for brightening the skin, controlling the excess oil secretion, keeping skin clean glossy and free of freckles and spots, beautifying the skin of sunburn and black patches, ensuring dazzling liveliness, enhancing glamour and beauty, preventing excessive perspiration, promoting feeling of freshness, increasing lustre of skin, keeping skin soft, fair, glowing, stop pre-mature ageing and wrinkling of skin, preventing sun burn rashes, dryness, discolouration and burning sensation of skin, properly cleansing, exfoliating and moisturizing the skin, helping for removal of make-ups and sunscreen which clogs pores, helping in the normal firming and toning of skin along with hydrating the skin to make it glow, fresh and smooth, helping to skin and tighten skin pores, makes skin soft and more elastic, reducing excess skin oil, protecting from sun-burn injury.
25. None of the above descriptions qualify for categorising the products as “medicaments” or “medicines” as

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ase paints; beauty creams, cold creams, make-up creams, cleansing creams, skin foods (including those containing bees' royal jelly) and skin tonics or body lotions; barrier creams to give protection against skin irritants, anti-acne preparations, which are designed primarily to cleanse skin and which do not contain sufficiently high levels of active ingredients to be regarded as having a primary therapeutic or prophylactic effect against acne, toilet vinegars which are mixtures of vinegars or acetic acid and perfumed alcohol.
Sunscreen or sun tan preparations are also included.”
28. A review of the remaining items (27 in number) supplied by the Appellant, will help to classify them under respective Chapter headings, as per their description:
Sl.No.
Name of the product
Classified under
Reasons for classification
1
Baranga
33
Other powder
2
Tanuruchi
33
Face powder
3
Twakamadhuri
33
Face powder
4
Subarna
33
Face powder
5
Angarag
33
Face powder
6
Tanurima

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n the form of liquid or cream
15
Twaka Snigdha (Lemon)
33
Preparations for care of skin
16
Twaka Snigdha (Orange)
33
Preparations for care of skin
17
Twaka Snigdha (Neem)
33
Preparations for care of skin
18
Twaka Snigdha (Rose)
33
Preparations for care of skin
19
Sukhparash
33
Anti-acne cream/Body cream
20
Namrata
33
Body lotion
21
Aadrita
33
Body lotion
22
Tanutra
33
Sun-screen preparations
23
Tanumitra 40
33
Sun-screen preparations
24
Tanumitra 60
33
Sun-screen preparations
25
Sarnajyoti
33
Removes skin impurities, black heads, dead skin cells, pimples and scars
26
Sunayana
33
Face cream
27
Komal Shree
33
Preparations for care of skin
In view of the above discussions, we find that the 31 products discussed above, supplied or intended to be supplied by the Appellant, are not to be classified under Chapter 30, but are to be classified under Chapter 33 (Cosmetics) or Chapter 34 (Soaps), and are to be taxed accordingly.
The Advance Ru

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MSCI Services Pvt. Ltd. Versus Commissioner of CGST, Mumbai East
Service Tax
2018 (8) TMI 494 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 1-8-2018
Appeal Nos. ST/86707-86714, 86731/2018 – ORDER No. A/87022-87030/2018
Service Tax
Hon'ble Mr. S.K. Mohanty, Member ( Judicial )
Shri Prasad Paranjape, Advocate, for appellant
Shri M.K. Sarangi, Joint Commissioner (AR), for respondent
ORDER
The learned Commissioner (Appeals), Central Excise, Mumbai vide the impugned order dated 10.1.2018, has disposed of nine appeals filed by the appellant. Since the issue involved in all the appeals is identical i.e. denial of refund benefit provided under Rule 5 of the Cenvat Credit Rules, 2004, the same are taken up for hearing together and a common order is being passed.
2. The appellant is engaged inter alia, in providing outsourced services, which are in the nature of transaction processing services and other related support provided to the overseas clients. The services p

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g of immovable property, cleaning, works contract, real estate, management, maintenance or repair, courier, catering, event management, business support, convention, business auxiliary, technical testing and analysis, supply of tangible goods services etc. The refund benefit was denied by the authorities below on the ground that those disputed services are neither conforming to the requirement of the definition of Rule 2(l) of the rules for consideration of input service and that those services have no nexus with the output service provided by the appellant. Further, the refund benefit has also been denied on some of the services, on the ground of non-submission of invoices, non-payment of value of service to the vendors, non-submission of proof regarding payment of service tax on import of services, out of pocket expenses etc.
3. Learned Advocate appearing for the appellant, at the outset, submits that the appellant is not contesting denial of refund benefit in respect of the dispute

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tation of the output service, the nexus between the services have been established and the refund benefit cannot be denied on that ground. He further submits that under the amended provisions of Rule 5 (with effect from 1st April 2012), the service provider is not required to establish the nexus between the input and the output services and the refund has to be granted on the basis of formula prescribed under the amended Rule 5 of the rules read with the notification issued thereunder. In this context, the learned Advocate has referred to the letter F.No. 334/1/2012-TRU, dated 16.3.2012 issued by the Tax Research Unit (TRU) of CBEC, clarifying that the field formations cannot insist for establishing the nexus and refund should be granted on the basis of the prescribed formula. As regards non-submission of the invoices before the refund sanctioning authority, he submits that the same were available with the appellant, which can be produced before the original authority, if the matter is

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tion of input service. Thus, he contended that the appellant should not be eligible for the refund benefit in respect of service tax paid on the disputed services.
5. Heard both sides and perused the records.
6. Since the appellant concedes that it is not contesting disallowance of refund benefit in respect of the taxable services viz., catering, event management, business support, convention, business auxiliary, technical testing and analysis, supply of tangible goods, I hold that the refund benefit denied by the Commissioner cannot be interfered with at this juncture. Thus, the impugned order, so far as it rejected the refund claim in respect of those services, sustains.
7. With regard to the allegation that there is no nexus between the input services viz., renting of immovable property, cleaning service, works contract service, real estate service, management, maintenance or repair service, courier service, the said services are no doubt used/utilised by the appellant for provid

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d rules. It has been further clarified that service tax paid on the input services will be entitled for refund, on the basis of the ratio of the export turnover to total turnover. Since the TRU has clarified the legislative intent behind the amendment of Rule 5 of the Rules, explaining that no nexus need to be established, denial of refund benefit on sole ground of non-establishment of nexus cannot be sustained for judicial scrutiny. Accordingly, I am of the view that the refund benefit denied to the appellant in respect of those disputed services is not proper and justified and the appellant should be entitled for the benefit of refund of service tax paid thereon. Held accordingly.
8. With regard to the issues in dispute namely, nonsubmission of invoices, non-payment of value of services to the overseas vendors and non-submission of document, showing payment of service tax on the import of services, I find that the relevant documents are presently available with the appellant, which

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M/s. QUALITY TRADERS Versus ASSISTANT STATE TAX OFFICER, STATE GOODS AND SERVICES TAX DEPARTMENT, ALUVA, STATE TAX OFFICER, STATE GOODS & SERVICE TAX DEPARTMENT, COCHIN, COMMISSIONER OF STATE TAX, KERALA STATE GOODS & SERVICE TAX DEPARTMENT, THIRUVANANTHAPURAM STATE OF KERALA, TAXES DEPARTMENT, STATE GOODS & SERVICE TAX DEPARTMENT, CENTRAL BOARD OF EXCISE AND CUSTOMS, NEW DELHI
GST
2018 (8) TMI 391 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 1-8-2018
W. P. (C) No. 257

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In Re : Garuda Power Private Limited
GST
2018 (8) TMI 212 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – 2018 (15) G. S. T. L. 593 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – AAR
Dated:- 1-8-2018
14/WBAAR/2018-19
GST
MR. VISHWANATH, Member West Bengal Authority for Advance Ruling And MR. PARTHASARATHI DEY, Member, West Bengal Authority for Advance Ruling.
For The Applicant : Sri T P Kar, FCA
RULING
1. The Applicant, stated to be a dealer of Cummins India Limited functioning mainly in the trading of diesel engines and its spare parts along with services of diesel engine, either on AMC basis or on an as and when required basis, is seeking a ruling on whether or not the supply of goods and on-site ser

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n raised in the Application is found to be neither decided by nor pending for decision before any authority under any provisions of the GST Act. The officer concerned raises no objection to admission of the Application. The Application is, therefore, admitted.
2. The Applicant, as a dealer of Cummins India Limited, supplies diesel engines and its spare parts along with services of diesel engine, either on AMC basis or on an as and when required basis to various companies like Cresmac Foundry Pvt Ltd, Websol Energy Systems Limited, Vikram Solar Pvt Ltd (Fab-II), International Conveyors Limited, Patton International Limited, Best Safety Pvt Limited, all SEZ (Special Economic Zone) Units Falta Special Economic Zone, Candor Tech Space in Rajar

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GST Regime Spurs Tax Compliance Shift; Authorities Crack Down on Evasion with Advanced Data Analytics for Fair Competition.
News
GST
Tax Evasion in Post-GST Regime
TMI Updates – Highlight

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Tax Evasion in Post-GST Regime
GST
Dated:- 31-7-2018

The number of cases of Tax Evasion reported post-GST regime are given in Table below:
Period
Detection No. of cases
Amount in Crore
July 2017 to June 2018
1205
3026.55
The nature of cases include misuse of Input Tax Credit, mis-declaration in the GST Returns, tax declared in GST Returns & not paid, and cases where GST returns not filed and Tax not paid.
The details of number of entities claiming GST refunds based on

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GST Simplified Returns Update: July 2018 Revisions Aim to Streamline Filing, Enhance Compliance, and Reduce Business Burden.
News
GST
Note on Simplified Returns and Return Formats July, 2018<

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Service Tax paid on Ocean Freight for pre GST period, now can take input tax credit or apply refund?
Query (Issue) Started By: – Dinesh Ghatkar Dated:- 31-7-2018 Last Reply Date:- 31-7-2018 Service Tax
Got 5 Replies
Service Tax
Dear Sir,
Thanks for your prompt response,
Sir, Deptt issued us SCN and refuse under Rule 9(bb), plz suggest any circular/notification/rule under which we can fight legally,
Please help.
regards,
Dinesh
Reply By manish kumar:
The Reply:
In my view no

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