Goods and Services Tax

2018 (7) TMI 74 – AUTHORITY FOR ADVANCE RULINGS, GUJARAT – 2018 (14) G. S. T. L. 411 (A. A. R. – GST), [2018] 2 GSTL (AAR) 85 (AAR) – Classification of manufactured goods – brackets and clamps of cast iron – The applicant is of the view that though the products manufactured by it are used by building construction industry in hanging wash basin, commodes and urinals etc., the said products manufactured by it are required to be classified under Chapter Heading 7325 or 7308 or 7326 of the HSN – Whether the article manufactured by the applicant fall under Chapter Heading 7308, 7325 or 7326 of the HSN or any other heading? – Held that:- The applicant manufactures cast articles, does sand blasting on the CI Casting for cleaning purpose and applies enamel so that the article does not get rusted. The articles manufactured by the applicant are not machined.
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Chapter Heading 7325 covers all cast articles of iron or steel, not elsewhere specified or included – the brackets and clamps of cas

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n and scrap in the cupola furnace fired by coal and add foundry minerals in the same. The melted pig iron is poured into moulding boxes of sand and required shape of cast article is obtained. The applicant manufactures the goods according to the requirement of customers. The cast articles so manufactured are used in various industries. The applicant has submitted that at times, the applicant may not be aware about the actual usage of cast product. The applicant also manufactures bracket and clamp of cast iron, which are used for hanging wash basin, commodes and urinals. The applicant is of the view that though the products manufactured by it are used by building construction industry in hanging wash basin, commodes and urinals etc., the said products manufactured by it are required to be classified under Chapter Heading 7325 or 7308 or 7326 of the HSN. 2. The applicant submitted that it manufactures article from melting process. The shape of the article is given as per the requirement

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. The applicant also relied upon the view taken in their own issue by the Ld. Assistant Sales Tax Commissioner, Ahmedabad in Order No. 1995/D/165 to 175 (11) dated 24.08.1995, wherein the Ld. Authority after considering the products, has held that the aforesaid products are nothing but casting. The Ld. Authority has relied upon various judgements for the aforesaid. The applicant has submitted that the view taken by the Ld. Assistant Sales Tax Commissioner is still applicable and requires to be followed in the GST regime also. The applicant further submitted that it wished to rely upon various judgements of the Hon ble Supreme Court wherein a consistent view is taken that the cast articles do not become part of any product which whom they are used, but they are required to be classified under heading 7308, 7318, 7325 or 7326. 4. The applicant raised the following question on which advance ruling is required – Whether the article manufactured by the applicant fall under Chapter Heading 7

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and the products of the applicant are not supplied / used in factories during manufacturing. The applicant relied upon the order of Hon ble Tribunal in the case of M/s. Consolidated Petrotech Ind Ltd. [1993 (66) ELT 244) and judgement of Hon ble Supreme Court [1997 (96) ELT 223 (SC)]. The applicant submitted that the goods under consideration are cast articles and in the view of the applicant, required to be classified under CETH 7325. 6. The Central Goods & Services Tax and Central Excise Commissionerate, Ahmedabad North informed that as per Chapter 73 of GST Tariff of India, Articles of Iron or Steel notes, cast iron applies to products obtained by casting in which iron predominated by weight over each of the other elements. It is further informed that the brackets and clamp of cast iron are used for hanging wash basin, commodes and urinals. The pig Iron and scrap are main raw materials and predominated by weight over each of the other elements. In view therefore, it was opined

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The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. 10. The applicant manufactures cast articles, does sand blasting on the CI Casting for cleaning purpose and applies enamel so that the article does not get rusted. The articles manufactured by the applicant are not machined. 11.1 Chapter Note 1 of Chapter 73 of the First Schedule of the Customs Tariff Act, 1975 is as follows :- 1. In this Chapter, the expression cast iron applies to products obtained by casting in which iron predominates by weight over each of the other elements and which do not comply with the chemical composition of steel as defined in Note 1(d) of Chapter 72. 11.2 Chapter Heading 7325 covers Other cast articles of iron or steel . 12.1 Chapter Heading 7325 covers all cast articles of iron or steel, n

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2018 (5) TMI 486 – CESTAT CHENNAI – TMI – Short payment of service tax – main allegation is that service tax paid by the tax payer as shown in the ST-3 returns for this period was less than the tax payable as calculated on the value shown in the same ST-3 returns by them for the impugned period – penalty – Held that: – it is clear that the adjudicating authority has primarily focused on comparing the figures given by the appellants in the first and second round of adjudication. In the first round of litigation, CESTAT Chennai had clearly indicated that the adjudicating authority came to pass the impugned demand as the proper reconciliation exercise was avoided.
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These directions of the CESTAT Chennai have evidently not been followed in the de novo adjudication. In the circumstances, while this Bench is averse to remand matters again and again, we are left with no other alternative but to once more send the matter back to the adjudicating authority to cause reconciliation as per t

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ce etc. Scrutiny of ST-3 returns and records maintained by the appellants indicated that they had not discharged service tax liability in full for the period October 2005 to March 2006. The main allegation was that service tax paid by the tax payer as shown in the ST-3 returns for this period was less than the tax payable as calculated on the value shown in the same ST-3 returns by them for the impugned period. When the appellants had submitted that the difference in service tax payable alleged in the notice was due to the fact that they had wrongly indicated the taxable value in the ST-3 returns for the impugned period as inclusive of service tax which had resulted in calculation of service tax on the value including the tax. In the first round of adjudication, the adjudicating authority confirmed demand of service tax amount of ₹ 1,86,23,877/- with interest thereon and also imposed penalty of ₹ 2,00,00,000/- under Section 78 of the Finance Act, 1994. On appeal, CESTAT Che

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tire information furnished by the appellants. Ld. Counsel also contends that department has not proved that the appellants had received higher taxable value than what was declared in the ST-3 returns. He submits that the demand has resulted only due to misunderstanding of the new format of ST-3 which was made applicable from October 2005; that in the old format in Column (3), the tax payer was only required to indicate value of taxable service charged or billed (indicate break up of the amount month wise) , whereas in the new format, in Column (1), the assessee was required to give details of amount received towards taxable service/s provided . Ld. Advocate submits that incomplete appreciation of the new format many assessees, like them had indicated that the total value including the value on tax paid or suffered in Column (1) of the new format. The department has however taken that value as the value of taxable value of services and has demanded service tax liability on the purported

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aring the figures given by the appellants in the first and second round of adjudication. In the first round of litigation, CESTAT Chennai had clearly indicated that the adjudicating authority came to pass the impugned demand as the proper reconciliation exercise was avoided. The relevant portion containing these observations are reproduced for ready reference : 4. The appellants had furnished details of tax paid on the disputed services and their service tax liability under an enclosure to their reply to the Show Cause Notice on 29.5.2007. They paid an amount of ₹ 24,99,432/- which was not actually necessarily. They have since filed a claim for refund of the same. The Commissioner found discrepancies between the particulars furnished by the appellants on 18.10.2006 and on 25.5.2007 which had arisen on account of the difficulties faced by the appellants in furnishing the correct figures. However, the Commissioner had not attempted to verify and ascertain the correct figures. The r

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ts. He has no objection to the matter being remanded. 7. On a careful consideration of the case records and the submissions made by both sides we are convinced that the ends of justice require that the impugned order be set aside and the matter remanded for fresh adjudication after allowing the appellants adequate opportunity for presenting their case. The appeal is thus allowed by way of remand. We find that these directions of the CESTAT Chennai have evidently not been followed in the de novo adjudication. In the circumstances, while this Bench is averse to remand matters again and again, we are left with no other alternative but to once more send the matter back to the adjudicating authority to cause reconciliation as per the directions already given by the Tribunal in their earlier order dt. 04.06.2009, reproduced supra. It is also directed that the adjudicating authority will cause such reconciliation based on the figures and data provided by the appellants vide their letter dt. 0

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2018 (5) TMI 366 – DELHI HIGH COURT – TMI – Revenue wishes to bring on record copies of Circular No.39/13/2018-GST dated 03.04.2018 setting up an IT Grievance Redressal Mechanism in the form of a Committee – the Court is of the opinion that the petitioners should approach the concerned Nodal Officers with brief representations outlining their grievances; the Nodal Officer or the Redressal Committee shall appropriately deal with them, in accordance with the circular. – W.P.(C) 1300/2018, W.P.(C) 2192/2018 & CM APPL. 9058/2018, W.P.(C) 2332/2018, W.P.(C) 2333/2018 & CM APPL. 9801/2018, W.P.(C) 2475/2018 & CM APPL. 10262/2018, W.P.(C) 2740/2018 & CM APPL. 11123/2018 And W.P.(C) 2885/2018 & CM APPL. 11632/2018 Dated:- 9-4-2018 – MR. S. RAVIND

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dated 04.04.2018) designating Commissioners (CGST) as Nodal Officers for the purpose of the Grievance Redressal Mechanism as well as a public notice dated 04.04.2018 issued by the PIB circulating the setting up of the Grievance Redressal Mechanism and appointment of Nodal Officers. The copies of these circulars, letters, etc. are hereby taken on record. In view of these developments, the Court is of the opinion that the petitioners should approach the concerned Nodal Officers with brief representations outlining their grievances; the Nodal Officer or the Redressal Committee shall appropriately deal with them, in accordance with the circular. List on 28.05.2018. – Case laws – Decisions – Judgements – Orders – Tax Management India – taxman

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2018 (4) TMI 812 – AUTHORITY FOR ADVANCE RULING , WEST BENGAL – 2018 (12) G. S. T. L. 400 (A. A. R. – GST), [2018] 2 GSTL (AAR) 61 (AAR) – Classification of goods – SIKA Block Joining Mortar – section 97 (2) (a) & (e) of the CGST / WBGST Act, 2017 – whether classifiable under tariff item 3214 90 90 in terms of Chapter Heading No. 3214 to the HSN? – Held that: – HSN 3214 90 90 is a residuary classification. It should include all other products that have the general characteristics mentioned above, and, therefore, classifiable under heading 3214, but are not specifically mentioned. Clearly, ‘Sika Block Joining Mortar’ satisfies the general characteristics of such products as per the Explanatory Notes above, and, therefore, classifiable under this tariff item.
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Clearly, a chemical preparation can be classified under such residuary heading only if it is not elsewhere specified. As the Applicant’s product, namely ‘Sika Block Joining Mortar’ is already specified under tariff item 3214

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nding or decided in any proceeding under any provision of the GST Act. The concerned officer has not conveyed any objection to admission of the Application. The Application is, therefore, admitted. 3. The Applicant has stated that the product SIKA Block Joining Mortar is presently classified under HSN 3214 90 10 and that this product is basically ready to use Grey Cement based non-shrink, self-curing water resistance mortar for fixing AAC Blocks, Concrete Blocks Fly Ash Bricks etc. HSN 3214 talks about Glaziers, Putty, Resin Cements, Caulking Compounds and other mastics; painters fillings, nonrefractory surfacing preparations for facades, indoor walls, floor, ceilings or the like. 4. During Personal Hearing dated 22.03.2018 the Applicant submitted a written submission in which the above points were reiterated and submitted copies of a few invoice cum delivery challans, where, the Applicant claims, the competitors were supplying similar products classified under HSN 3824 50 90. The Appl

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most of the construction chemicals manufactured by the appellant that are in the nature of cement, grout, repair mortar, repair concrete etc. are not of a type used for surfacing preparations for walls, ceilings etc. and thus not classifiable under subhead 3214. 6. In its above order dated 28/07/2017 the Commissioner (Appeals), CGST & Customs, Goa, however, finds Sika Quick Mortar classifiable under tariff item 3214 90 90 in terms of Chapter Heading No. 3214 to the HSN. 7. In Roofit Industries Ltd the CEGAT, Mumbai, finds ready-mix plasters for plastering walls classifiable under subhead 3214. 8. In UAL Industries Ltd the Commissioner of Sales Tax, West Bengal, finds dry mix mortar , made by mixing sand, fly ash, OPC/PPC Cement, hydrated lime and polymer additives, classifiable as tariff item 3824 50 90. 9. None of the above orders have dealt with the Applicant s product, namely Sika Block Joining Mortar . The product needs to be understood before exploring the classification opti

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ING PUTTY, RESIN CEMENTS,CAULKING COMPOUNDS AND OTHER MASTICS; PAINTERS FILLINGS; NON-REFRACTORY SURFACING PREPARATIONS FOR FACADES, INDOOR WALLS, FLOORS, CEILINGS OR THE LIKE ; 3214 10 00 – Glaziers putty, grafting putty, resin cements, caulking compounds and other mastics, painters fillings 3214 90 – Other: 3214 90 10 Non-refractory surfacing preparations 3214 90 20 Resin Cement 3214 90 90 Other Terms like non-refractory surfacing preparation or mortar are not defined in the GST Act, nor is the ambit of the related headings, in the present context, discussed in the Explanatory Notes to the Tariff Act. The orders and decisions the Applicant has referred to are also not explicit on this issue. Under such circumstances, it is a settled legal practice to refer to the Explanatory Notes to Harmonised Commodity Description and Coding System of World Customs Organization, Brussels, to decipher the Internationally accepted scope of the headings and tariff items. According to such Explanato

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by coating mineral fillers with binders with added pigments and water or solvent. HSN 3214 90 90 is a residuary classification. It should include all other products that have the general characteristics mentioned above, and, therefore, classifiable under heading 3214, but are not specifically mentioned. Clearly, Sika Block Joining Mortar satisfies the general characteristics of such products as per the Explanatory Notes above, and, therefore, classifiable under this tariff item. 11. The contesting heading 3824 covers PREPARED BINDERS FOR FOUNDRY MOULDS OR CORES; CHEMICAL PRODUCTS AND PREPARATIONS OF THE CHEMICAL OR ALLIED INDUSTRIES (INCLUDING THOSE CONSISTING OF MIXTURES OF NATURAL PRODUCTS), NOT ELSEWHERE SPECIFIED OR INCLUDED. Clearly, a chemical preparation can be classified under such residuary heading only if it is not elsewhere specified. As the Applicant s product, namely Sika Block Joining Mortar is already specified under tariff item 3214 90 90, heading 3824 does not come int

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2018 (4) TMI 811 – AUTHORITY FOR ADVANCE RULING , WEST BENGAL – 2018 (12) G. S. T. L. 214 (A. A. R. – GST), [2018] 2 GSTL (AAR) 63 (AAR) – Classification of goods – skin care preparations – Appellant claims the goods to be Ayurvedic Medicaments. They are meant for therapeutic or prophylactic uses, put up in packaging for retail sale and entirely correspond to the description of goods under HSN 3004 – N/N. 1/2017-CT(Rate) dated 28/06/2017.
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Held that: – there is no dispute that the products are manufactured under valid drug license and following the formula prescribed in the authoritative textbooks of Ayurveda. A few ingredients may have been added for preservation of the quality of the product, which, as settled by the apex court on several occasions, should not be considered material while ascertaining the underlying Ayurvedic nature of the product.
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It appears only the products, Rupam (Pimple pack) and Pailab (Anti-crack cream) of the list of their products are offered fo

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cation – The remaining products mentioned in the list submitted by them are not offered primarily as medicaments and, therefore, not to be included under heading 3004. – Case Number 01 of 2018 Dated:- 9-4-2018 – Vishwanath Membe And Parthasarathi Dey Member Applicant s representative heard Sri Anjan Dasgupta, Advocate & Sri P K Mukherjee, Authorised Representative ORDER 1. The Applicant manufactures skin care preparations and wants an Advance Ruling on the Classification of 33 of its products. The Applicant declares that the question raised in this Application is not pending or decided in any proceedings under the CGST / WBGST Act, 2017 (hereinafter the GST Act). The officer concerned has not objected to the admission of the application. As such, the question raised is admissible for Advance Ruling under section 97 (2) (a) of the GST Act. The Application is, therefore, admitted. 2. The Applicant argues that its skin care preparations are Ayurvedic Medicaments. They are meant for t

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pam Pimple Pack Glossy skin without pimples and rashes Tanurima Baby Skin Care Fair and glossy skin for your baby Romancho (lavender) Body Talc 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. Romancho (Vanilla) Body Talc 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. Romancho (Kewra) Body Talc 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

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n. Instantly enhances glow and fairness. Improves the skin texture of skin and body Nabaroop (Lemon) Face & Body Wash Properly cleanses, exfoliate and moisturizes the skin. Helps for removing make-ups and sunscreen which, clog pores. Strengthens the natural protection of the skin. Instantly enhances glow and fairness. Improves the skin texture of skin and body Nabaroop (Neem) Face & Body Wash Properly cleanses, exfoliate and moisturizes the skin. Helps for removing make-ups and sunscreen which, clog pores. Strengthens the natural protection of the skin. Instantly enhances glow and fairness. Improves the skin texture of skin and body Nabaroop (Orange) Face & Body Wash Properly cleanses, exfoliate and moisturizes the skin. Helps for removing make-ups and sunscreen which, clog pores. Strengthens the natural protection of the skin. Instantly enhances glow and fairness. Improves the skin texture of skin and body Swarnali Fairness Cream Improve the skin complexion. Removes acne,

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l 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. Sukhparash Face & Body Cream Prevents from pimples, blemishes and skin rashes. Helps to cure minor and sunburn quantity Namrata Moisturizer for normal to dry skin Helps to moisturize, soften and hydrate the skin. Prevents skin from rashes and burning sensation Pailab Anti-Crack cream antibacterial & anti-septic for removal of cracked feet Aadrita Moisturizer for Oily skin helps to moisturize, soften and hydrate the skin. Prevents the skin from rashes and burning sensation Komal Parash Baby Body Talc 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. Tanutra Sun & Pollution P

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hich has immense potential to cure acne. The fourth product, namely the mask, contains 6% sulphur as an ingredient, which too has therapeutic value. The first product, namely the toner, does not contain any active ingredient for curing the disease but is used for cleansing the skin as an aid to acne treatment. The petitioner sought an Advance Ruling on commodity Classification. After that, the AAR refers to several decisions of the Apex Court that have laid down common parlance as the appropriate test for determining the meaning or connotation of words or expressions describing an article in a Tariff Schedule. According to the AAR, common parlance test is not a rigid formula capable of being applied in all situations. The test ceases to be applicable if the products referred to are couched in technical/scientific language, or there is a definite indication in the Tariff Schedule negating application of this standard test. 5. The AAR also points out that most of the skin care or toilet

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icaments under heading 3004. In other words, it is not sufficient that a skin care preparation incidentally or in a small way helps in controlling skin disease. Its curative or preventive value must be substantial, and the product must be manufactured primarily to control or cure a skin-related disease. That is to say, if preparations for the care of skin contain sufficient medical ingredients to offer a cure for skin ailments, they stand excluded from the purview of 3304. 7. While discussing Note 1 to Chapter 30 in Puma Ayurvedic Herbal Pvt Ltd (supra) the Supreme Court observes, Thus preparations falling in Chapter 33 even if they have therapeutic or prophylactic properties will not fall under Chapter 30 which deals with pharmaceutical products. The reason for this appears to be that even cosmetics may have something to improve skin or other parts of the body where they are used. In that sense, they may have some therapeutic value, yet they remain cosmetic. The Supreme Court further

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ed the history of Supreme Court s observations on the related questions and issues while deciding upon the classification of the petitioner s skin care products. It has direct relevance to the Applicant s case and needs to be discussed in some detail for clarity on the legal position regarding classification of goods in the present context. 10. In Puma Ayurvedic Herbal Pvt Ltd (supra) the Court observes, In order to determine whether a product is a cosmetic or a medicament a twin test has found favour with the Courts. The test has the approval of this Court also vide Collector Vs. Richardson Hindustan Ltd [1989(42) ELT A100 (SC)/2004 (9) SCC 156]. There is no dispute about this as even the Revenue accepts that the test is determinative for the issue involved. The tests are I. Whether the item is commonly understood as a medicament which is called the common parlance test (emphasis added). For this test, it will have to be seen whether in common parlance the item is accepted as a medica

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the appellant has placed on record material from the Ayurvedic texts or Pharmacopoeia in support of each product which is the subject matter of the present appeal to show that the ingredients of each product are independently mentioned in the Ayurvedic texts. 11. In Puma Ayurvedic Herbal Pvt Ltd (supra) the Appellant had a license to manufacture Ayurvedic products obtained from the Drug Controller under the Drugs and Cosmetics Act, 1940. All the items under appeal before the Supreme Court were produced from ingredients found in Ayurveda textbooks. They are manufactured as per the Ayurveda pharmacopoeia and had curative, therapeutic or prophylactic value. They were meant to give relief from body ailments. As such, all ingredients were Ayurvedic raw material. Besides this, the evidence produced by the appellant before the authorities in the shape of letters from consumers, from doctors and from Ayurvedic physicians, according to the Apex Court, satisfied the common parlance test. The Co

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visited the question of the twin test for determining whether the product is an Ayurvedic Medicament or not. It observes that the twin test noticed in Puma Ayurvedic Herbal (P) Ltd continue to be relevant. The court holds that classification should be based on the popular meaning and understanding attached to such products by those using them and not the scientific and technical meaning of the terms and expressions used (emphasis added). The approach of the consumer or user towards the product, thus, assumes significance. What is important to be seen is how the consumer looks at a product and what is his perception in respect of such product. The user's understanding is a strong factor in the determination of the classification of the products. 13. In the light of the above discussion, we should now find out what are parameters and their relative importance in deciding whether a product should fall under subhead 3004 as an Ayurvedic Medicament or be classified as a skin care prepar

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ation. The Apex Court has long settled that classification for fixing tariff should be based on how the goods are understood in common parlance in the commercial world. 14. In subhead 3004 the emphasis is on therapeutic or prophylactic uses. Even if a product is manufactured using ingredients and according to the formula prescribed in the authoritative textbooks of Ayurveda, it should not be classified as a medicament under heading 3004 unless it is meant for therapeutic or prophylactic uses. In other words, it is not sufficient that a skin care preparation, manufactured following a formula in an authoritative textbook of Ayurveda, helps in controlling skin disease. Its curative or preventive value must be substantial, and the product must be manufactured primarily to control or cure a skin-related disease, and the consumers use it primarily for treatment, mitigation, cure or prevention of specific skin disease or skin disorder. 15. Note 1 (e) to Chapter 30 states that the Chapter does

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ed to such use and includes products whether or not they contain subsidiary pharmaceutical or antiseptic constituents, or are held out as having subsidiary curative or prophylactic value. On the basis of this Note it was argued that even if a product has some curative or prophylactic value, it will still be cosmetic. We cannot accept this argument. The learned counsel has overlooked the use of the word 'subsidiary' in the said note from which it follows that a subsidiary curative or prophylactic use will not convert a cosmetic into a medicament. We have tried to illustrate this by giving the example of a bald man treating his baldness by use of the Ayurvedic product. The curative use of the product is primary in that example and not subsidiary. The subsidiary result is an improvement in appearance. Therefore, in our view, Note 2 to Chapter 33 does not help the respondent. Rather Note 5 to the said Chapter, makes it clear that the products which fall under heading 33.04 are prim

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ase suitable for use as goods of these headings and put up in packings with labels literature or other indications that they are for use as cosmetics or toilet preparations (emphasis added) or put up in a form clearly specialized to such use and includes products whether or not they contain subsidiary pharmaceutical or antiseptic constituents, or are held out as having subsidiary (emphasis added) curative or prophylactic value in Note 2 to Chapter 33 and also the Note 5 do not exist for the purpose of the GST Act. 18. Conclusions reached in Puma Ayurvedic Herbal Pvt Ltd (supra) and followed by the AAR in M/s Guthy Renker Marketing Pvt Ltd [2009 (248) ELT 932 (AAR)], based on earlier constructions of Notes 2 and 5 to Chapter 33 in the Excise Tariff Act, 1985 are, therefore, need to be revisited in the context of the GST Act. In the absence of the restrictive phrases attributed to Notes 2 and 5 to Chapter 33, heading 3304 should now include all preparations for the care of skin, whether

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as they help in maintaining or improving the health of the skin. On the other hand, skin care preparations that are used as medicaments may have the effect of enhancing appearance and beauty by restoring skin health. The essential difference, therefore, lies in the user s perception of a particular product. If the user consumes the product primarily for cure from or treatment or mitigation of or for prevention of a specific skin disease or disorder, it should be treated as a medicament classifiable under heading 3004 (unless, of course, it has been specifically included under heading 3304). The effect of enhancing appearance of the skin or beauty is not what the product is offered for or used by the consumer. 20. In the context of the present application, there is no dispute that the products are manufactured under valid drug license and following the formula prescribed in the authoritative textbooks of Ayurveda. A few ingredients may have been added for preservation of the quality of

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he CD contains only snippets of different episodes of a TV show where the users are uniformly endorsing the Applicant s products as showing good results. It is not clear whether the good results relate to enhancing appearance of the skin or treatment of a disease. We are not to involve ourselves in examining efficacy of the Applicant s products. Our focus will be to ascertain from available materials what the Applicant is offering and consumer is using. A more objective way to examine it is to analyse the information contained in the labels attached to the product when offered in retail set up. The information provided on the labels may be considered as written communication from the manufacturer to the consumer as to what is being offered. If a customer purchases the product it may be presumed that he or she accepts the offer and believes in the information contained in the label. 22. In response to an enquiry made regarding the products in communication dated 03.04.2018 the Applicant

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Goods and Services Tax – Started By: – subramanian vijayakumar – Dated:- 8-4-2018 Last Replied Date:- 9-4-2018 – Whether an exporter who has paid transportation expenses paid to the cargo company can claim it as it and get refunds – Reply By Rajagopalan Ranganathan – The Reply = Sir,The government will refund only CGST/IGST paid on transportation charges. The transportation charges will be reimbursed by your customer provided he agrees for that. Normally price of export goods will include trans

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Goods and Services Tax – Started By: – Harini Singh – Dated:- 8-4-2018 Last Replied Date:- 10-4-2018 – Hi I m working in a firm and digned a bond for 3 years or 1lakh rs. Now Do i have to pay gst also on penalty of 1lakh and can i get it ireimbursed In this case who has to pay gst me or firm because I m not gegetti any sale or servicePls clarify – Reply By Ganeshan Kalyani – The Reply = In My view yes, you will have to pay GST. – Reply By YAGAY AND SUN – The Reply = In our view, you need not to

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GST – CONCEPT & STATUS (Updated as on 01st April 2018) – Goods and Services Tax – GST – Dated:- 7-4-2018 – GST – CONCEPT & STATUS Updated as on 01st April 2018 INTRODUCTION: The introduction of Goods and Services Tax on 1st July 2017 was a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, the aim was to mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which was estimated to be around 25%-30%. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a positive impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer. GENESIS: 2. The idea of movin

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mendment) Act, 2016, fiscal powers between the Centre and the States were clearly demarcated in the Constitution with almost no overlap between the respective domains. The Centre had powers to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.) while the States had powers to levy tax on sale of goods. In case of inter-State sales, the Centre had power to levy a tax (Central Sales Tax) but the tax was collected and retained entirely by the originating States. As for services, it was the Centre alone that was empowered to levy service tax. Since the States were not empowered to levy any tax on the sale or purchase of goods in the course of their importation into or exportation from India, the Centre levied and collected this tax as additional duties of customs, which was in addition to the Basic Customs Duty. This additional duty of customs (commonly known as CVD and SAD) counter balanced excise duties, sales tax, State VAT and othe

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nion territories without legislatures (Union territory tax- UTGST). The Parliament would have exclusive power to levy GST (integrated tax – IGST) on inter-State trade or commerce (including imports) in goods or services. The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products. The tax on supply of five specified petroleum products namely crude, high speed diesel, petrol, ATF and natural gas would be levied from a later date on the recommendation of GST Council. 5. A Goods and Services Tax Council (GSTC) was constituted comprising the Union Finance Minister, the Minister of State (Revenue) and the State Finance Ministers to recommend on the GST rate, exemption and thresholds, taxes to be subsumed and other features. This mechanism would ensure some degree of harmonization on different aspects of GST between the Centre and the States as well as across States. One half of the total number of members of GSTC would form quorum in

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r, 2016. GSTC is being assisted by a Secretariat. Twenty six meetings of the GSTC have been held so far. The following major decisions have been taken by the GSTC: (i) The threshold exemption limit would be ₹ 20 lakh. For special category States (except J&K) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 10 lakh. (ii) Composition threshold shall be ₹ 1 crore. As decided in the 23rd meeting of the GSTC, this limit shall be raised to ₹ 1.5 crore after necessary amendments in the Act. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers. For special category States (except J&K and Uttarakhand) enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at ₹ 75 lakh. (iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by

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s, would be imposed for a period of five years to compensate States for any revenue loss on account of implementation of GST. The list of goods and services in case of which reverse charge would be applicable has also been finalized. (v) The five laws namely CGST Law, UTGST Law, IGST Law, SGST Law and GST Compensation Law have been recommended. (vi) In order to ensure single interface, all administrative control over 90% of taxpayers having turnover below ₹ 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further all administrative control over taxpayers having turnover above ₹ 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration. (vii) Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions. (viii) Power to collect GST in territorial waters shall be delegated by Central Government to the States. (ix) Formu

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supply of goods by all taxpayers. (xiv) Supplies from GTA to unregistered persons has been exempted from tax. (xv) Registration and operationalization of TDS/TCS provisions has been postponed till 30.06.2018. (xvi) The e-way bill system shall be introduced nation-wide for all inter-State supplies with effect from 01.04.2018. As regards intra-State supplies, option has been given to States to choose any date on or before 01.06.2018. (xvii) www.ewaybillgst.gov.in, managed by NIC, shall be the Common Goods and Services Tax Electronic Portal for generation of e-way bill. (xviii) E-Wallet Scheme shall be introduced for exporters from 01.10.2018 and till then relief for exporters shall be given in form of broadly existing practice. (xix) All taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis. (xx) Taxpayers with turnover upto ₹ 1.5 Cr are required to file information in FORM GSTR-1 on a quarterly basis. Other taxpayers would have to file FORM GSTR-1 on a

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been received in foreign convertible currency – such suppliers shall be eligible for input tax credit. (xxvii) Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government. (xxviii) www.gst.gov.in, managed by GSTN, shall be the Common Goods and Services Tax Electronic Portal. (xxix) Rate of interest on delayed payments and delayed refund has been recommended. (xxx) Rules for National Anti-Profiteering Authority have been recommended. The National Anti-Profiteering Authority has been constituted having Chairman and four technical Members. Further Standing Committee on Anti-Profiteering and State level Screening Committee have also been set up. SALIENT FEATURES OF GST: 8. The salient features of GST are as under: (i) GST would be applicable on supply of goods or services as against the present concept of tax on manufacture of goods or on sale of goods or on provision of services. (ii) GST would be based on the principle of destination ba

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tes to be mutually agreed upon by the Centre and the States under the aegis of the GSTC. (viii) GST would replace the following taxes currently levied and collected by the Centre: a) Central Excise Duty; b) Duties of Excise (Medicinal and Toilet Preparations); c) Additional Duties of Excise (Goods of Special Importance); d) Additional Duties of Excise (Textiles and Textile Products); e) Additional Duties of Customs (commonly known as CVD); f) Special Additional Duty of Customs (SAD); g) Service Tax; h) Cesses and surcharges insofar as they relate to supply of goods or services. (ix) State taxes that would be subsumed within the GST are: a) State VAT; b) Central Sales Tax; c) Purchase Tax; d) Luxury Tax; e) Entry Tax (All forms); f) Entertainment Tax (except those levied by the local bodies); g) Taxes on advertisements; h) Taxes on lotteries, betting and gambling; i) State cesses and surcharges insofar as they relate to supply of goods or services. (x) GST would apply to all goods and s

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9A of the Constitution). As decided in the 23rd meeting of the GSTC, this limit shall be raised to ₹ 1.5 crore after necessary amendments in the Act. The threshold exemption and compounding scheme would be optional. (xiv) The list of exempted goods and services would be kept to a minimum and it would be harmonized for the Centre and the States as well as across States as far as possible. (xv) All Exports and supplies to SEZs and SEZ units would be zero-rated. (xvi) Credit of CGST paid on inputs may be used only for paying CGST on the output and the credit of SGST/UTGST paid on inputs may be used only for paying SGST/UTGST. In other words, the two streams of input tax credit (ITC) cannot be cross utilized, except in specified circumstances of inter-State supplies for payment of IGST. The credit would be permitted to be utilized in the following manner: a) ITC of CGST allowed for payment of CGST & IGST in that order; b) ITC of SGST allowed for payment of SGST & IGST in that

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returns by different class of persons at different cut-off dates. (xx) Various modes of payment of tax available to the taxpayer including internet banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS). (xxi) Obligation on certain persons including government departments, local authorities and government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees. The provision for TDS has not been operationalized yet. (xxii) Refund of tax to be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date. (xxiii) Obligation on electronic commerce operators to collect tax at source , at such rate not exceeding two per cent. (2%) of net value of taxable supplies, out of payments to suppliers supplying goods or services through

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Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act. (xxx) Provision for penalties for contravention of the provision of the proposed legislation has been made. (xxxi) Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under CGST Act. (xxxii) An anti-profiteering clause has been provided in order to ensure that business passes on the benefit of reduced tax incidence on goods or services or both to the consumers. (xxxiii) Elaborate transitional provisions have been provided for smooth transition of existing taxpayers to GST regime. BENEFITS OF GST: (A) Make in India: (i) Will help to create a unified common national market for India, giving a boost

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urden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption, which in turn means more production thereby helping in the growth of the industries. This will create India as a Manufacturing hub . (B) Ease of Doing Business: (i) Simpler tax regime with fewer exemptions; (ii) Reduction in multiplicity of taxes that are at present governing our indirect tax system leading to simplification and uniformity; (iii) Reduction in compliance costs – No multiple record keeping for a variety of taxes- so lesser investment of resources and manpower in maintaining records; (iv) Simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc; (v) All interaction to be through the common GSTN portal- so less public interface between the taxpayer and the tax administration; (vi) Will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouragin

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rnment as a private company under erstwhile Section 25 of the Companies Act, 1956. . GSTN would provide three front end services to the taxpayers namely registration, payment and return. Besides providing these services to the taxpayers, GSTN would be developing back-end IT modules for 27 States who have opted for the same. The migration of existing taxpayers has already started from November, 2016. The Revenue department of both Centre and States are pursuing the presently registered taxpayers to complete the necessary formalities on the IT system operated by GSTN for successful migration. 10. GSTN has selected 73 IT, ITeS and financial technology companies and 1 Commissioner of Commercial Taxes (CCT, Karnataka), to be called GST Suvidha Providers (GSPs). GSPs would develop applications to be used by taxpayers for interacting with the GSTN. OTHER LEGISLATIVE REQUIREMENTS: 11. Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act have been passed by the Pa

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tive SGST Act. 13. Apart from the notifications, 41 circulars and 13 orders have also been issued by CBEC on various subjects like proper officers, ease of exports, and extension of last dates for filling up various forms, etc. ROLE OF CBEC: 14. CBEC is playing an active role in the drafting of GST law and procedures, particularly the CGST and IGST law, which will be exclusive domain of the Centre. This apart, the CBEC has prepared itself for meeting the implementation challenges, which are quite formidable. The number of taxpayers has gone up significantly. The existing IT infrastructure of CBEC has been suitably scaled up to handle such large volumes of data. Based on the legal provisions and procedure for GST, the content of work-flow software such as ACES (Automated Central Excise & Service Tax) would require reengineering. The name of IT project of CBEC under GST is SAKSHAM involving a total project value of ₹ 2,256 crores. 15. It was also felt that the organizational st

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dy been trained. Out of these 7000 officers have attended refresher-training course also. 17. It is expected that a momentous reform like GST is popularized and familiarized to the trade and industry who are the vital stakeholders in successful implementation of this reform. 18. CBEC would be responsible for administration of the CGST and IGST law. In addition, excise duty regime would continue to be administered by the CBEC for levy and collection of central excise duty on five specified petroleum products as well as on tobacco products. CBEC would also continue to handle the work relating to levy and collection of customs duties. 19. Director General of Safeguards, CBEC has been mandated to conduct detailed enquiry on anti-profiteering cases and should give his recommendation for consideration of the National Anti-profiteering Authority. 20. CBEC has been instrumental in handholding the implementation of GST. It had set up the Feedback and Action Room which monitored the GST implemen

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mber, 2017 66,80,408 15 No. of 3(B) returns filed for December, 2017 66,37,923 16 No. of 3(B) returns filed for January, 2018 65,27,602 17 No. of 3(B) returns filed for February, 2018 61,65,324 18 No. of GSTR 1 returns filed for July, 2017 59,71,488 19 No. of GSTR 1 returns filed for August, 2017 22,14,857 20 No. of GSTR 1 returns filed for September, 2017 59,71,488 21 No. of GSTR 1 returns filed for October, 2017 22,16,652 22 No. of GSTR 1 returns filed for November, 2017 22,01,501 23 No. of GSTR 1 returns filed for December, 2017 55,65,273 24 No. of GSTR 1 returns filed for January, 2018 18,44,980 25 No. of GSTR 1 returns filed for February, 2018 6,63,351 26 No. of GSTR 2 returns filed for July, 2017 25,72,552 27 No. of GSTR 4 returns filed for quarter JulySeptember, 2017 9,04,815 28 No. of GSTR 4 returns filed for quarter October-December, 2017 12,77,517 FREQUENTLY ASKED QUESTIONS RELEASED BY CBEC: 22. To guide taxpayers in relation to GST matters, CBEC has issued a range of frequen

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Goods and Services Tax – Started By: – Sadanand shelar – Dated:- 7-4-2018 Last Replied Date:- 10-4-2018 – If supplier has not included invoice in his GSTR-1 what action receipient has to take? – Reply By KASTURI SETHI – The Reply = Supplier may add missing next month. – Reply By Ganeshan Kalyani – The Reply = Buyer can also upload his purchase invoice (sale invoice for supplier ) which is auto populate in GSTR 1A of the supplier who shall accept it. Otherwise, the supplier can show the missing invoice in subsequent month 's GSTR 1. Thanks. – Reply By subramanian vijayakumar – The Reply = The receipient can on verifying the GSTR 2A ANY OMISSION FOIND CAN BE ADDED IM GSTR 2 WHILE FILED BY THE RECEIPIENT WHICH WILL BE REFLECT IN GSTR 1A A

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Goods and Services Tax – Started By: – vivin vijay – Dated:- 7-4-2018 Last Replied Date:- 8-4-2018 – As per the recent ruleing restaurant we're to charge 5 percent as against 18 percent but we're not allowed to claim input credit. However, for resort they were given an option that if room rate is more than 7500 then they can charge 18 percent and cliam input credit . This is the background, now I went to a resort recently where my room rate was 5000 but I was charged GST at 18 percent the reason given by the resort was even if one room has a charge over 7500 they can charge at 18 percent for every room . My question is can a resort just charge a higher rate for just one room so that they can claim input credit and charge customer 1

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₹ 7500/- they cannot charge lesser rate. – Reply By Ganeshan Kalyani – The Reply = Yes , I agree with your view Sir. – Reply By vivin vijay – The Reply = Rajgopalan Sir, all rooms are charged bellow 6000 except for one room they have kept at 7500 to get the benfit of input tax credit . It's not the other way around . – Reply By KASTURI SETHI – The Reply = Dear Querist,. You must make a representation to GST Council. This practice should be brought to the Notice of the GST Council. Evidence should be there. – Reply By Rajagopalan Ranganathan – The Reply = Sir, The various input services provided to the resrot like maintenance, cleaning etc the service provider will not provide invoices for each room separately . he will issue only

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Goods and Services Tax – Started By: – BalKrishan Rakheja – Dated:- 6-4-2018 Last Replied Date:- 12-4-2018 – One party is engaged in manufacturing and clearing the goods on payment of duty in DTA and under LUT for export. The party claimed refund of accumulated ITC for the tax period of July 2017 amounting to ₹ 1.62 Crores on 05.01.2018 after making debit entry of the amount claimed as refund. The party also made some more debit entry in the same month for refund claimed for the month of August and September also. Now the detail of the amount remained in the electronic credit ledger is as under:1. Balance as on 31.01.2018 in the credit ledger after debiting the duty for the month of Decmber 2017 and debit entry made for three refunds

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017 (13 of 2017), refund of input tax credit shall be granted as per the following formula – Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷Adjusted Total Turnover Where, – (A) Refund amount means the maximum refund that is admissible; (B) Net ITC means input tax credit availed on inputs and input services during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; (C) Turnover of zero-rated supply of goods means the value of zero-rated supply of goods made during the relevant period without payment of tax under bond or letter of undertaking, other than the turnover of supplies in respect of which

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tate or a Union territory, as defined under clause (112) of section 2, excluding – (a) the value of exempt supplies other than zero-rated supplies and (b) the turnover of supplies in respect of which refund is claimed under subrules (4A) or (4B) or both, if any, during the relevant period; (F) Relevant period means the period for which the claim has been filed. The refund of input tax credit will be granted by the Department as per the above rule. – Reply By BalKrishan Rakheja – The Reply = Thanks for your reply sir,But my query is still unanswered. From the above formula maximum amount of refund can be calcuated and not eligible amount of refund. My querry is that which amount from the three as mentioned in my query is admissible as refund

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Goods and Services Tax – GST – Dated:- 6-4-2018 – The National Anti-profiteering Authority (NAA) has been constituted under section 171 of the Central Goods and Services Tax Act, 2017 read with Chapter XV of the Central Goods and Services Tax Rules, 2017 (CGST Rules for short) to determine whether the reduction in tax rates or benefit of input tax credit is being passed on to the recipient by way of commensurate reduction in prices. As per rule 137 of the CGST Rules, the Authority shall cease t

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Goods and Services Tax – GST – Dated:- 6-4-2018 – The month-wise figures of Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), Integrated Goods and Services Tax (IGST) and Cess collected by the Government since July 1, 2017 is as under: (Amount in Rs. Crores) Month Collection August, 2017 93,590 September, 2017 93,029 October, 2017 95,132 November, 2017 85,931 December, 2017 83,716 January, 2018 88,929 February, 2018 88,047 March, 2018 89,264 No targets for collection of GST have been fixed. In the absence of any past precedent, it shall be difficult to compare the GST revenue collection with the corresponding months of the previous years due to a number of factors like overlap of taxpayers pre and post introductio

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Goods and Services Tax – GST – Dated:- 6-4-2018 – With a view to remove any doubt or uncertainty in the matter and bring uniformity in the rate of GST applicable to supply of food and drinks made available in trains, platforms or stations, it has been clarified with the approval of the competent authority that the GST rate on supply of food and drinks by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms(static unit

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Goods and Services Tax – Started By: – Aditya badraika – Dated:- 6-4-2018 Last Replied Date:- 7-4-2018 – first thing can any 1 tell me how to check the current value of machinery in balance sheetand second thing what is the procedure to sell the machinerywe have to make a sell billl for the machinery or first we have to make the agreement regarding for selling the machinery & how to make sale bill including gst – Reply By Ganeshan Kalyani – The Reply = Assets are accounted under an asset co

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GST – States – 2/2018-STATE TAX – Dated:- 6-4-2018 – GOVERNMENT OF KERALA GOODS AND SERVICE TAXES DEPARTMENT NOTIFICATION No. 2/2018-STATE TAX No. CT/22046/2017-C1. Thiruvananthapuram, 6th April 2018. Sub:- Extension of date for submitting the statement in FORM GST TRAN-2 under rule 117 (4) (b) (iii) of the Kerala State Goods and Service Tax Rules, 2017. In exercise of the powers conferred by sub-clause (iii) of clause (b) of sub-rule (4) of rule 117 of the Kerala State Goods and Services Tax R

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GST – States – 1/2018-STATE TAX – Dated:- 6-4-2018 – GOVERNMENT OF KERALA GOODS AND SERVICE TAXES DEPARTMENT NOTIFICATION No. 1/2018-STATE TAX No. CT/22046/2017-C1. Thiruvananthapuram, 6th April 2018. In exercise of the powers conferred by section 168 of the Kerala Goods and Services Tax Act, 2017 (20 of 2017) (hereinafter in this notification referred to as the Act) read with sub-rule (5) of rule 61 of the Kerala State Goods and Services Tax Rule, 2017 the Commissioner of State Tax, on the recommendations of the Council, hereby specifies that the return in Form GSTR-3B for the month as specified in column (2) of the Table below shall be furnished electronically through the common portal, on or before the last date as specified in the corr

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2018 (5) TMI 594 – AUTHORITY FOR ADVANCE RULING – DELHI – 2018 (14) G. S. T. L. 414 (A. A. R. – GST) – Classification of books – Work Books or Exercise Book -‘Sulekh Sarita’ – Whether the books ‘Sulekh Sarita’ are ‘Printed Books’ classifiable under ‘HSN 4901 10 10’ or are classifiable as ‘Exercise Books’ under ‘HSN 4820’ of the GST Tariff? – Held that: – the main feature which differentiates ‘Work Books’ of heading 4901 from the ‘Exercise Books’ of heading 4820 is that whereas the ‘Work books’ of heading 4901 contain questions or exercise with space for writing the answers whereas, the ‘Exercise Books’ of heading 4820 contain printed texts with space for copying manually.
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Hence, presence of printed text does not affect their classification under heading 48.20 as exercise books. Further, since, none of the books contain any pages with children’s picture, drawing or colouring matter, classification of any of them under heading 49.03 is not possible. Hence, the goods are to be corr

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o pay GST as supplier of goods and/ or services. – Advance Ruling No. 05/DAAR/2018 Dated:- 6-4-2018 – Pankaj Jain Member (Centre) and Vinay Kumar Member (State) Present for the Applicant: Shri Vineet Bhatia, Advocate Present for the Revenue (Centre): Shri Neeraj Aneja, Superintendent, Division Janakpuri, GST West, New Delhi Present for the Revenue (State): None Statement of Facts as per the Applicant: The applicant is a Publishing House and engaged in the business of publishing and selling of books for students of various classes. 2. The applicant has got registered under the Central Goods and Service Tax Act and is holding GSTIN No. 07AAACS2232H1ZQ. 3. That besides many of its other publications, the applicant is also publishing books by the name of Sulekh Sarita Part-A (सुलेख सरिता भाग – अ), Sulekh Sarita Part-B (सुलेख सरिता भा&#

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2375;ख सरिता भाग – ब) and Sulekh Sarita Part-1-5 (सुलेख सरिता भाग – 1 से 5) are classifiable as Printed books falling under HSN 4901 . 7. That whereas exercise books / writing books simply contains sheets of lined paper, commonly known as note books for practising and are used by students for taking down notes or for practising written contents and/or solving problems. Thus exercise books generally do not contain any instructions and are merely compilation of plain papers with lines printed on them. The printing of lines on the plain paper is merely for enabling the students to write in a straight manner. Merely printing of lines and binding these ruled sheets does no per-se qualify these note books or exercise books as printed books . 8. That on the other hand, the Sulekh Sarita Part-A (सुलेख सर&

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1;ञान with comparison of words and picture presentation. The concept helps the child to learn Hindi MATRAS in the easy way, thus making the Hindi subject easier for the child. c. The printed matter given in these books are also aimed at- (i) Teaching the students about various prominent idioms i.e. (मुहावरों का ज्ञान करवाना) (ii) Teaching the students about the art of word formation i.e (शब्द निर्माण सिखाना) (iii) Improving the vocabulary of the students i.e. (हिन्दी शब्दकोश का ज्ञान करवाना) (iv) हिन्दी की गिनती &#

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2350;ूल उदेश्य बच्चों को वो संस्कार प्रदान करना है जो जीवन मे उनके काम आएं और वे एक अच्छा इंसान बनने मे उनकी मदद करे। have been provided in the book with the objective to inculcate ethos and values in the minds of the growing children. 11. Although, the good hand writing not only helps a child to get good marks in examination, it also depicts the personality of a person. However, the book sulekh sarita (सुलेख सरित&

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49;ाग – ब) also qualify to be a picture book falling under HSN 4903. These books, alternatively, even otherwise would be exempt from tax falling either under HSN 4901 or 4903. The primary level books of Sulekh Sarita Part 1-5 definitely qualify to be printed books falling under HSN 4901. 15. Regarding, the relevance and importance of these books it is mentioned as these books are the first books which a child holds while beginning his process of learning. In the formative years the endeavour is to make learning a fun exercise for a child and therefore, the basic pre-nursery/ nursery and primary books are designed in such a manner that a child gets attracted towards them. For this purpose, the book contains pictures etc. to make the book more attractive. In the initial years a child begins to join dots, draw straight and curved lines and look at pictures as an entertainment which help the child identify the surroundings objects. This way of learning has been scientific

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ords or expressions in a entry derives its meaning, colour and characteristics from the preceding and succeeding words. A particular section of the statute shall not be divorced from the rest of the Act. The Ejusdem Generis rule applies to resolve the problem of giving meaning to groups of words where one of the words is ambiguous or inherently unclear. Even otherwise when the principle of ejusdem generis is applied to these HSN codes then the meaning of exercise books and printed books becomes clear. It can be noticed that the word exercise books (In HSN 4820) is preceded by the word registers, account books, note books, order books, receipt books, letter pads, diaries and similar other articles and succeeded by the words binders, folders, file covers, inter leaved carbon sets, and other articles of stationery of paper and board . Thus the word exercise books as appearing in HSN 4820 is preceded and succeeded by stationery items and therefore the same also has to be constructed as a s

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hat are not liable to tax or are wholly exempt from tax then the person is not liable itself to register. Section 23 of the GST Act is reproduced here under for ready reference and the same reads as under: Section 23(1): The following persons shall not be liable to registration, namely:- (a) Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the integrated Goods and Services Tax Act. (b) An agriculturist, to the extent of supply of produce out of cultivation of land. 21. Section 24 of the CGST Act deals with compulsory registration in certain cases, Section 24 of the CGST Act reads as under: Section 24: Notwithstanding anything contained in sub-section (1) of Section 22, the following categories of persons shall be required to be registered under this Act,- (i) Persons making any inter-state taxable supply; (ii) Casual taxable persons making taxable supply; (iii) Persons who

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supply of goods that are not liable to tax or wholly exempt from tax (say for example printed books or fresh vegetables or fruits) but is also availing the services of Goods Transport Agency or an Advocate and thus liable to pay tax under reverse charge then whether such a person is liable for registration or not? 23. From a plain reading of Section 24 it can be noticed that the opening word of Section 24 states Notwithstanding anything contained in the sub-section (1) of section 22 . Thus, it can be noticed that section 24 specifically overrides the provision of section 22 (1), which prescribe the threshold taxable quantum. However, section 24 is silent as far as its overriding effect on section 23 is concerned. Thus section 23 of the CGST Act is an independent code in itself and even section 24 of the CGST Act does not tinker with it. 24. That is the intention of the legislature had been such it wanted section 24 to override the provisions of section 23, it could have very easily st

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That the product supplied by the applicant i.e. Sulekh Sarita Part-A , Sulekh Sarita Part-B and Sulekh Sarita Part 1-5 be classified as printed books falling under HSN 4901 or as picture books falling under HSN 4903 and consequently covered by entry No. 119 or 121 of Notification No. 2/2017 – Central Tax (Rate). 28. That the applicant is not liable for registration, if it is engaged in supply of goods or services that are not liable to tax or wholly exempt from tax under the GST Acts. Comments of Jurisdictional Officer (Centre): 29. With respect to Question No. 1: CBEC vide Circular No. 1057/6/2017-CX dated 07.07.2017 has issued a clarification on classification of Printed Workbooks, Exercise Books etc. under erstwhile CETA, 1985. As per para 2 of the said circular, the books Sulekh Sarita is an Exercise Book and classifiable under HSN 4820 of the GST Tariff. Thus, as per Entry no. 123 of Schedule II of Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017, GST rate of 6% is ap

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High Court directed Board to examine the matter and pass appropriate order at its earliest convenience. (ii) The issue has been examined. Exercise Books have been explained in HSN under explanatory note (2) to Heading 48.20 as, These may simply contain sheets of lined paper but may also include printed examples of handwriting for copying in manuscript . Such exercise Books are specifically classified under heading 4820 of the erstwhile CETA, 1985. These are nothing but stationary items having blank pages with lines for writing and may also include printed texts for copying manually. In common parlance they are more akin to handwriting note books for practising rather than work books containing printed exercise. This definition of Exercise Books is in harmony with other items specified under Chapter Heading 4820 of erstwhile CETA, 1985 such as registers, note books, diaries, letter pads etc. where printing is incidental to their primary use i.e. writing. The fact that printing is incide

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receding para. Further, since printing in case of printed workbooks is not merely incidental to the primary use of the of the goods, such goods are classifiable under Chapter 49, in terms of Chapter note 12 to Chapter 48 of erstwhile CETA, 1985. (iv) Similarly, HSN Chapter note (6) to Chapter 49 read with HSN explanatory note under heading 49.03 covers children s workbooks consisting essentially of pictures with complementary texts, for writing or other exercises, and children s drawing or colouring books, provided the pictures form the principal interest and are not subsidiary to the text. Thus, children s drawing books which are in harmony with said HSN Chapter note (6) and HSN Explanatory note to heading 4903 would fall under Chapter 49. The relevant entries of Notification No. 1/2017 – Central Tax (Rate) dated 28.06.2017 are as under: 32. Schedule 1 (2.5 % duty): S. No. Chapter/ Heading/ Sub-Heading/ Tariff Item Description of Goods 201. 4901 Brochures, leaflets and similar printed

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ries and similar articles, exercise books, blotting-pads, binders (loose-leaf or other), folders, file covers, manifold business forms, interleaved carbon sets and other articles of stationery, of paper or paperboard; albums for samples or for collection and book covers, of paper or paperboard. 4820.20 – Exercise books (2) Exercise Books. These may simply contain sheets of lined paper but may also include printed examples of handwriting for copying in manuscript. Educational workbooks, sometimes called writing books, with or without narrative texts, which contain printed textual questions or exercises not incidental to their primary use as workbooks and usually with spaces for completion in manuscript are, however, excluded (heading 49.01). Children s workbooks consisting essentially of pictures, with complementary texts, for writing or other exercise are also excluded (heading 49.03). Some articles of this heading often contain a considerable amount of printed matter but remain classi

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turgical books such as prayer books and hymn books (other than music hymn books of heading 49.04); children s books (other than children s picture, drawing or colouring books of heading 49.03). Such books may be bound (in paper or with soft or stiff covers) in one or more volumes, or may be in the form of printed sheets comprising the whole or a part of the complete work and designed for binding. Heading 4901 also covers: Bound picture books (other than children s picture books of heading 49.03). The heading 49.01 further excludes: (a) …. (b) Diaries and other stationery books of heading 48.20, that is those which are essentially for completion in manuscript or typescript. (c) …. (d) Children s workbooks consisting essentially of pictures with complementary texts, for writing or other exercises (heading 49.03) (e) …. (f) …. (g) …. Note 6 to Chapter 49 of HSN reads as under: For the purpose of heading 49.03, the expression children s picture books means books for children in w

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outlines of pictures, with or without printed instructions, for completion by drawing or colouring; sometimes coloured illustrations for guidance are incorporated. They also include similar books with invisible outlines or colour which can be made visible by rubbing with a pencil or applying water with a paint brush, and also books in which the small amounts of water colour required for colouring are contained in the books (e.g., in the form of a palette). 39. The issue of classification of text books and printed work text books was subject matter of WP(C) No. 7198 of 2016 before the Hon ble High Court of Delhi. It was claimed by the petitioner that the said goods are appropriately classifiable in Chapter 49 of the Central Excise Tariff Act, whereas the department was considering classification as exercise books in Chapter 48 (4820) of Central Excise Tariff Act. The Hon ble High Court of Delhi vide order dated 31.08.2016 had directed CBEC to examine the matter and pass appropriate orde

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examples of handwriting for copying by the students. 42. In the case of certain goods of heading 49.01 e.g workbooks, there may be space for writing in addition to the printed text but printing is of primary use and space for writing is incidental. On the contrary, in case of certain goods of heading 48.20 e.g. diaries, exercise books, there may be considerable amount of printed matter but the printing is incidental to their primary use of writing by hand. 43. It is observed that the main feature which differentiates Work Books of heading 4901 from the Exercise Books of heading 4820 is that whereas the Work books of heading 4901 contain questions or exercise with space for writing the answers whereas, the Exercise Books of heading 4820 contain printed texts with space for copying manually. 44. With the abovementioned difference between the headings 49.01 and 48.20, the samples submitted by the applicant have been examined. 45. The goods supplied by the applicant Sulekh Sarita Part-A ,

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if a person is required to pay tax under reverse charge, then he is compulsorily required to get registered. The contention of the applicant that the persons who are engaged exclusively in supply of goods and services that are exempt or not liable to tax shall not be required to take registration is not correct because without registration payment of tax under reverse mechanism would not be possible. The Sections 22, 23 and 24 have to be read together and from the combined reading of the same it is held that the applicant is required to take registration if it has GST liability under reverse charge mechanism. It is also observed that there is no threshold exemption for payment of GST under Reverse charge mechanism. Ruling 47. The products supplied by the applicant Sulekh Sarita Part-A , Sulekh Sarita Part-B and Sulekh Sarita Part 1-5 are correctly classified under HSN 4820 and not under HSN 4901 or 4903. Hence, they are not covered under entry no. 119 or 121 of Notification No. 2/2017

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2018 (5) TMI 529 – AUTHORITY FOR ADVANCE RULING – DELHI – 2018 (13) G. S. T. L. 373 (A. A. R. – GST) – Classification of goods and/ or services or both – Rate of GST – Dried Tobacco Leaves – Determination of the liability to pay tax on goods or services or both – appellant engaged in trading of Dried Tobacco Leaves – whether such 'Dried Tobacco Leaves' will be classified under Heading 2401 of HSN or the same may be classified in Heading 2403 of HSN or in any other Heading of HSN? – Held that: – It is observed that the heading 2401 of HSN covers Tobacco Leaves and Unmanufactured Tobacco. However, heading 2403 covers 'Manufactured Tobacco'. Hence, to determine the correct classification under HSN, it has to be first ascertained whether the goods proposed to be supplied are unmanufactured tobacco or the same can be considered as manufactured tobacco. It is observed that HSN notes for heading 2401 specifically mention that the said heading covers whole plants or leaves in the natural stat

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dly undergone curing by Sun-dry/ Air-dry processes, the same cannot be called 'Tobacco Leaves' and would be covered as ‘unmanufactured tobacco (other than tobacco leaves)'.
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Circular No. 81/5/87 – CX-3 dated 23.06.1987 issued by the Ministry of Finance – Held that: – the same is regarding classification of unmanufactured tobacco merely broken by beating and then sieved and packed for consumption as chewing tobacco (Zarda) and it was clarified that the same should be classifiable as unmanufactured tobacco under heading 2401. Hence, the same is not applicable in the present case.
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Circular No. 143/12/2011-ST dated 26.05.2011 – Held that: – the same is regarding levy of Service Tax on certain processes in relation to agriculture and hence, the same is not applicable in the present case.
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N/N. 12/2017 Central Tax (Rate) dated 28.06.2017 – Held that: – the notification pertains to levy of GST on certain processes related to agriculture. Hence, the same is not applicable in th

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ed Tobacco Leaves' which would be purchased from registered dealer who in return purchases such Tobacco Leaves from Agriculturist / Farmers. Such registered dealer after purchasing it from Agriculturist / Farmers will sell the same to Applicant as it is without any further change in its form. 2. Applicant after cleaning and removal of unwanted particles (Bhusa, Dust etc.) will further sell such 'Dried Tobacco Leaves' in wholesale market. During the above explained activity of cleaning and removal of unwanted particles (Bhusa, Dust etc), no essence or foreign particle will be added to the 'Dried Tobacco Leaves'. Such dried tobacco leaves will be sold in wholesale market without any branding on it. It is also clarified that such 'Dried Tobacco Leaves' are not fit for direct human consumption in any way. A flow chart of the entire agricultural activity on tobacco is also given as follows:  Details of Question on which Advance Ruling is requested: 3. Classi

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st etc.) has been done without any addition of foreign particles, would be levied @ 5% or 28% under Chapter No. 24 Tariff Item 2401 under Notification No. 01/2017 – Central Tax (Rate) dated 28.06.2017. Views of The Applicant: 5. Product to be traded by the applicant is 'Dried Tobacco Leaves' as such and no processing/ modification shall be done by the applicant so the same shall be classifiable under 'Tobacco Leaves' and GST @ 5% shall be levied on such 'Dried Tobacco Leaves' as per the interpretation of Law and common parlance by the applicant under Chapter No. 24 Tariff Item 2401. 6. Further, as per the FAQ's released by CBEC F.No. 332/2/2017- TRU, it is further – clarified in S. No. 42 that "For GST Rate of 5%, tobacco leaves means, leaves of tobacco as such or broken tobacco leaves or tobacco leaves stem." 7. As per the above explanation, dried tobacco leaves shall be covered under 'Tobacco Leaves' as per HSN Code List Chapter No. 24 Ta

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mixture too concentrated for comfortable consumption by human beings and fails to meet test of marketability of product as 'chewing tobacco' – classification under Sub-heading 2401.10 of Central Excise Tariff appropriate. In view of this it was submitted that the Commissioner's Order was incorrect and should be set aside. 10. Board vide its Circular No. 37/90-CX.3, dated 17.07.1990, in case of flavours/scents added in preparation of scented snuff held the view that Snuff Tobacco even after addition Of "Perfumes, Scents and Menthol" remain Tobacco. Therefore, the explanatory notes of HSN bringing in the leaf treated with tobacco Solution Quimam herein and thereafter with flavouring perfumes agents cannot transform Raw leaf tobacco unmanufactured to manufactured tobacco. The addition of these volatile flavours will not amount to unmanufactured tobacco to manufactured tobacco following the settled posion that process of treatment Raw leaf of tobacco by effecting var

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Unmanufactured tobacco; tobacco refuse (other than tobacco leaves) 13. Chapter 24 of HSN: Tobacco and manufactured tobacco substitutes General Tobacco is obtained from various cultivated varieties of the genus Nicotiana of the Solanaceae family. The size and shape of the leaves differ from one variety to another. The harvesting method and curing process depend on the variety (type) of tobacco. The plant may be cut whole, at average maturity (stalk cutting), or the leaves may be picked separately, according to their state of maturity (priming). Thus, tobacco may be cured either as whole plants (on the stalk) or as separate leaves. The various methods, of curing are sun curing (in the open air), air curing (in closed sheds with free circulation of air), flue curing (in hot air flues), or fire curing (with open fires). Before packing for shipment, the dried leaves are treated in order to ensure their preservation. This may be done by controlled natural fermentation (Java, Sumatra, Havana

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ermented leaves, whole or stemmed/ stripped, trimmed or untrimmed, broken or cut (including pieces cut to shape, but not tobacco ready for smoking). Tobacco leaves, blended, stemmed/stripped and "cased" ("sauced" or "liquored") with a liquid of appropriate composition mainly in order to prevent mould and drying and also to preserve the flavour are also covered in this heading. (2) Tobacco refuse, e.g., waste resulting from the manipulation of tobacco leaves, or from the manufacture ot tobacco products (stalks, stems, midribs, trimmings, dust etc). 15. HSN Notes for heading 24.03: 24.03 – Other manufactured tobacco and manufactured tobacco substitutes; "homogenised" or "reconstituted" tobacco; tobacco extracts and essences. – Smoking tobacco, whether or not containing tobacco substitutes in any proportion: 2403.11 -Water pipe tobacco specified in Subheading Note 1 to this Chapter 2403.19 -Other – Other: 2403.91 – "Homogenised"

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pressure or prepared by boiling waste tobacco in water. They are used mainly for the manufacture of insecticides and parasiticides Discussion: 16. The proposed activity of the applicant is to purchase 'Dried Tobacco Leaves' and after cleaning and removal of unwanted particles, to supply the same in the wholesale market without addition of any essence or foreign particle and without any branding. Such 'Dried Tobacco Leaves' are not fit for direct human consumption. 17. The goods to be supplied by the applicant are explained to be 'Dried Tobacco Leaves' which have been harvested and then undergone the process of curing by the process Of Sun-dry or Air-dry, removal of dust particles, straw/bhusa and other unwanted particles. 18. The issue for decision is whether such 'Dried Tobacco Leaves' will be classified under Heading 2401 of HSN or the same may be classified in Heading 2403 of HSN or in any other Heading of HSN. Further, if the same are classified und

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"stalk cutting" and if the tobacco is harvested by removing the individual leaves off the stalk as they ripened, it is called "cropping", "pulling" or "priming". The recently harvested tobacco that has not yet entered the curing phase is called "Raw Tobacco . 21. Curing of tobacco: It is necessary to cure tobacco after harvesting and before it can be consumed. Tobacco is cured to remove all of the natural sap from the leaves so that it can be further processed and/ or manufactured. The four primary methods of curing are as follows: (i) Air curing: One of four main methods of curing, which involves removing all of the natural sap and moisture from tobacco leaves. Air-curing is a natural drying process in which harvested tobacco leaves are hung to dry in an air-curing barn. The barn is a wooden structure that can be either closed completely or ventilated, depending on weather conditions. The barn is closed to conserve moisture in dry condition

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natural sap and moisture from tobacco leaves. This method of curing uses only artificial heat, such as that provided by oil or petroleum. Flue-curing barns are outfitted with pipes that supply the heat and fans that circulate the heat for even distribution. (iv) Sun-curing: One of four main methods of curing, which involves removing all of the natural sap and moisture from tobacco leaves. This method of curing involves exposing tobacco leaves to full sunlight, thereby drying the leaves completely. 22. Tobacco curing is also known as colour curing, because leaves are cured with the intention of changing their colour and reducing their chlorophyll content. Curing tobacco has always been a process necessary to prepare the leaf for consumption because, in its raw, freshly picked state, the green tobacco leaf is too wet to ignite and be smoked. 23. Fermentation: Some tobaccos are subjected to a second stage of curing knows as fermenting or sweating. There are primarily two types of ferment

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sumed product. Non-aged or low quality tobacco is often artificially flavoured with these otherwise naturally occurring compounds. The aging process continues for a period of months 25. After tobacco is cured, it is moved from the curing barn into a storage area for processing. If whole plants were cut, the leaves are removed from the tobacco stalks in a process called stripping. For both cut and pulled tobacco, the leaves are then sorted into different grades. The tobacco is then packed for transportation. 26. Whole leaf: This term refers to a tobacco leaf in its entirely, including both the blade and Stem of the leaf. In contrast, the terms blade, lamina, and web refer only to the blade Of the leaf and do not include the stem. 27. Broken leaf and scrap: Broken leaf is unprocessed tobacco in which some Of the leaf has been lost because of excessive handling. Broken leaf is different from scrap, which is leaf that is broken into small pieces during the processing or manufacturing stage

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dered as manufactured tobacco. It is observed that HSN notes for heading 2401 specifically mention that the said heading covers whole plants or leaves in the natural state and also cured or fermented leaves. Hence, even after the process of curing or fermenting of Tobacco Leaves, they remain covered under heading 24.01. 32. As far as rate of GST under Notification No. 1/2017 – Central Tax (Rate) dated 28.06.2017 is concerned, it is observed that 'Tobacco Leaves' attract 2.5% (CGST) and 2.5% (SGST) or 5% (IGST) under S. No. 109 of Schedule-I of Notification No. 1/2017 -Central Tax (Rate) dated 28.06.2017. Whereas, 'unmanufactured tobacco (other than tobacco leaves)' attract 14% (CGST) and 14% (SGST) or 18% (IGST) under S. No. 13 of Schedule-IV of the said Notification. It has been clarified by the CBEC vide Circular F.No. 332/2/2017-TRU dated December 2017 that the said rate of 5% is applicable only on the following three categories of goods. (i) Leaves of Tobacco as suc

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s obtain by stalk cuttings i.e. When entire plant is harvested along with the stalk, stem and the leaves. It is not the claim of the applicant that goods proposed to be supplied by them are covered in this category. 37. All the above mentioned three categories which are covered as 'Tobacco Leaves' in S.NO. 109 of Schedule-1 of Notification No. 1/2017 – Central Tax (Rate) dated 28.06.2017 as per CBEC Circular F.No. 332/2/2017-TRU dated December 2017, covers only those Tobacco Leaves which have not undergone any processing like curing, fermentation etc. Since the goods proposed to be supplied by the applicant are admittedly undergone curing by Sun-dry/ Air-dry processes, the same cannot be called 'Tobacco Leaves' and would be covered as unmanufactured tobacco (other than tobacco leaves)'. 38. Regarding Circular No. 81/5/87 – CX-3 dated 23.06.1987 issued by the Ministry of Finance, .the same is regarding classification of unmanufactured tobacco merely broken by beating

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processes in relation to agriculture and hence, the same is not applicable in the present case. 41. Further, the applicant has mentioned Notification No. 12/2017 Central Tax (Rate) dated 28.06.2017 which pertains to levy of GST on certain processes related to agriculture. Hence, the same is not applicable in the present case. Ruling 42. It is held that the 'Dried Tobacco Leaves' which have undergone the process of curing after harvesting of tobacco leaves are 'unmanufactured tobacco' covered in HSN Code 2401. However, they are not covered under S. No. 109 of Schedule-1 of Notification No. 1/2017- Central Tax (Rate) dated 28.06.2017 @ 2.5% (CGST) + 2.5% (SGST) or 5% (IGST), but the same are covered under S. No. 13 of Schedule- IV of the said Notification as 'unmanufactured Tobacco (Other than Tobacco Leaves)' @ 14% (CGST) + 14% (SGST) or 28% (IGST). – Case laws – Decisions – Judgements – Orders – Tax Management India – taxmanagementindia – taxmanagement – taxm

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2018 (5) TMI 525 – KERALA HIGH COURT – 2018 (16) G. S. T. L. 484 (Ker.) – Delay in grant of registration under GST Statutes – mistake in providing the PAN number of another firm for the purpose of obtaining registration – grievance of the petitioner is that since the GST statutes came into being from 01.07.2017, the petitioner is unable to comply with the statutory requirements in relation to the business for the period from 01.07.2017 to 12.08.2017 – Held that: – To err is human – it is obligatory for the respondents concerned to make appropriate provisions to tackle issues of the instant nature as well, so as to enable persons like the petitioner to comply with the statutory requirements from the date of introduction of the GST statutes

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e petitioner is unable to comply with the statutory requirements in relation to the business for the period from 01.07.2017 to 12.08.2017. The petitioner, therefore, seeks appropriate directions in this regard, in the writ petition. 2. Heard the learned counsel for the petitioner, the learned Government Pleader as also the learned Standing Counsel for the fourth respondent. 3. To err is human. As such, it is obligatory for the respondents concerned to make appropriate provisions to tackle issues of the instant nature as well, so as to enable persons like the petitioner to comply with the statutory requirements from the date of introduction of the GST statutes. In the circumstances, having regard to the orders passed by this Court in similar

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2018 (5) TMI 365 – KERLA HIGH COURT – TMI – Supply of 8M and 9M Pre Stressed Concrete Poles (PSC Poles) to the Electrical Circles – submission of tenders – it was the case of petitioner that the 3rd respondent has blatantly violated the conditions stipulated in the tender document – adjustment of the GST incurred by the petitioner at the time of purchase of the raw-materials towards GST payable at the time of sale of Poles – as per the petitioner, the 3rd respondent has violated the conditions, by submitting a certificate along with pre-qualification documents, stating that the effect of GST credit to be availed has been taken into account in the quoted price.
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Held that: – even if Ext.P7 is issued by the 3rd respondent, that will not have any bearing or implication with respect to the terms and conditions of the contract, and respondents 1 and 2 are entitled to overlook the same and consider the bid submitted by the respective parties.
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Clause 14 of Section-A stipulated tha

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with the conditions incorporated thereunder.
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The impracticability of Clause B.20 regarding tax, put forth by the petitioners cannot be legally sustained since a clear method is worked out in the special conditions of contract.
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The petitioners could not make out any case of arbitrariness, illegality, malafides or unfairness so blatant and patent, so as to interfere with the evaluation made by the 1st and 2nd respondents with respect to the successful bidder, under Article 226 of the Constitution of India – Moreover, it is a commercial contract and the master of the contract is at liberty to enjoy reasonable flexibility in choosing its partner, taking also into account the price bid in the larger public interest, which may not in any manner interferes with the fundamental rights guaranteed under Part III of the Constitution.
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Petition dismissed – decided against petitioner. – W.P.(C) Nos.1112, 2221, 2450 & 4034 of 2018 Dated:- 6-4-2018 – MR. SHAJI P.CHALY J. BY ADVS.S

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itted their E-tender, petitioner could gather from the E-tender submitted by the 3rd respondent that it has blatantly violated the conditions stipulated in the tender document. Pursuant to the notification, a pre-bid meeting was convened on 10.10.2017. Before the pre-bid meeting, petitioner issued a communication to the 2nd respondent dated 07.10.2017, evident from Ext.P2. In Ext.P2, petitioner brought to the notice of the authorities that there is an anomaly with respect to clause B.20 Taxes in the special conditions of contract. The Special Conditions of Contract is produced as Ext.P3. It is also brought to the notice of respondents 1 and 2 that, if the said clause is not varied, it may create hurdle on bill processing, for the reason that, for the manufacture of pre stress concrete poles, the rawmaterials required are cement, steel, coarse aggregates and fine aggregates. When the petitioner sells the PSC Poles to the Board, then GST is imposed, which is known as output GST. When the

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, the same shall be rejected. Therefore, it is trite law that the executing authority who issues the tender notification must rigorously follow the same and scrupulously observe both standards, and if there is violation of any such condition, it would invite the wrath of Article 14 of the Constitution of India. 4. After submission of the E-tender by the 3rd respondent, petitioner could gather that 3rd respondent has violated the conditions stipulated in the tender document. Thereupon, petitioner has submitted a representation to respondents 1 and 2 on 10.11.2017, bringing to the notice of the authorities about the violation made by the 3rd respondent, evident from Ext.P6. In Ext.P6, petitioner has stated that, there is violation of the general conditions of contract and special conditions of contract. It is also the case of the petitioner that, the 3rd respondent has submitted documents which were not called for in the tender notice, and therefore, there is a clear violation. 5. Petiti

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pursuant to Ext.P1 notification. iii) Issue a writ of certiorari or other appropriate writ order or direction quashing the original of Ext.P9 in so far as pre-qualifies the 3rd respondent pursuant to Ext.P1 tender notice. iv) To grant such other relief which this Hon'ble Court may deem fit under these circumstances. 6. Petitioner has also produced additional documents along with I.A.No.952 of 2018 to show that the 3rd respondent is qualified by the respondents in spite of the illegalities committed by the 3rd respondent. 7. A detailed counter affidavit is filed by respondents 1 and 2, refuting the allegations and claims and demands raised by the petitioners. Among other contentions, it is stated that, the writ petition is not maintainable, since as per the special conditions of contract, petitioner has agreed to approach the civil courts at Thiruvananthapuram in the event of disputes arising pertaining to the contract. Therefore, according to the said respondents, the writ petitio

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at he is required to quote the prices after considering all the input tax credit available to him. The said methodology is the correct one in the present GST regime. Therefore, there is no ambiguity in the tender provisions and the petitioner is trying to create confusion, whereas in reality, the provisions are clear and unambiguous. It is also stated that, by agreeing to the bid conditions that the benefit of input tax credit will be passed on to the respondents, the 3rd respondent has not committed any violation of the tender formalities and averments to the contrary in the writ petition are all denied. 8. It is also submitted that, the price bids were opened on 11.01.2018 as per the tender conditions, evident from Ext. R1(a). From Ext. R1(a), it is evident that, in respect of 8m poles except for the Electrical Circle, Kattakkada, 3rd respondent is the lowest one. As far as 9m poles are concerned, except for Electrical Circles, Kollam, Kattakkada and Kottarakkara, the rate quoted by

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and demands raised by the respondents and have also produced Exts.P11 to P16. Apart from reiterating the stand adopted in the writ petition, it is also submitted that, after the invitation of the tender, the price of the raw-materials have changed considerably, and so also the GST rate of PSC Poles is reduced from 28% to 18% and these things will definitely establish that the GST rate could not be followed correctly at the time of submission of the bids, and therefore, Clause B.20 of the special conditions of contract is totally illegal and is detrimental to the tender conditions. 10. I have heard Sri. Ramesh Chander M., learned Senior Counsel appearing for the petitioners in W.P.(C) No.1112 of 2018 and Shri. K. Jaju Babu, learned Senior Counsel for the petitioner in W.P.(C) No.2450 of 2018 and the other Advocates appearing for the petitioners in the other writ petitions, Sri. Raju Joseph, learned Senior Counsel appearing for respondents 1 and 2 and also the learned counsel appearing f

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clause B.20 of tender, section-B of special conditions of contract, it is clearly mentioned that the benefit of input tax credit will be passed on to KSEB Ltd., as per Sec.171 of CGST Act. Even though clarification was sought on the said matter, the Chief Engineer has clarified vide the corrigendum referred to above, and it is specified that, there is no change in the tender documents. However, according to the learned Senior Counsel, the 3rd respondent has violated the said conditions, by submitting a certificate along with pre-qualification documents, stating that the effect of GST credit to be availed has been taken into account in the quoted price. 12. It is also pointed out that, as per clause 14 of Section-A (Bid specifications Part-II, Instruction to Bidders), the indication of price anywhere else other than in price bid (BOQ) will render the tender invalid and will be liable to be rejected. Therefore, according to the learned Senior Counsel, Ext.P7 enclosure produced along with

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the Electrical Circle concerned and therefore, the same is violative of clause B.04 of Section-B of special conditions of contract. 15. On the other hand, learned Senior Counsel appearing for respondents 1 and 2 submitted that, the imperative conditions in the notice inviting bid as well as the general conditions of contract and special conditions of contract are not violated by the 3rd respondent. The instructions were issued for quoting the price in accordance with the terms and conditions of the notice inviting tender. It was specifically mentioned that the price cannot be quoted anywhere else other than in the specified place of the bid document. It is also submitted that, there is no contention for the petitioners that the 3rd respondent has violated the special conditions of contract and the only contention is that, they have added Ext.P7 along with the bid document, which is in no way causing any manner of prejudice to the petitioners or violating the terms and conditions conta

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spect of alteration is in the bid form or schedule or specifications annexed thereto. Clause 13 stipulates that: Special conditions, if any mentioned in the offer of the bidder or in any other communication from him will not be applicable to the contract unless they are expressly accepted in writing by the purchaser . This clause shows that, even if any communication is issued by any of the bidders over and above the bid document, the same will not be applicable to the contract, which thus also means, respondents 1 and 2 are entitled to ignore any communication so issued by any bidder. Therefore, it is clear that, even if Ext.P7 is issued by the 3rd respondent, that will not have any bearing or implication with respect to the terms and conditions of the contract, and respondents 1 and 2 are entitled to overlook the same and consider the bid submitted by the respective parties. 18. Clause 14 of Section-A stipulated that: The indication of price anywhere else other than in the price bid

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he Electrical Circle concerned. Necessary casting beds, structures, moulds, curing tanks, testing yard etc. shall also be made available in the pole casting yard. All facilities shall be provided by the contractor at his cost. The construction, operation and maintenance of the yard are to be managed and executed by the contractor. The capacity of the yard shall be designed in accordance with the requirement of poles. All the facilities required for pre-tensioning, casting, de-tensioning, curing and lifting operations should be provided at the yard . Other conditions are also incorporated thereunder. 20. Clause B.20 deals with Taxes, which read thus: All Taxes which KSEBL specifically agrees to bear will be admitted at the rates applicable at the time of delivery, on the basis of an undertaking on Kerala Government stamp paper worth ₹ 500/- from the supplier in the following format: P.O. No………………………..dated …………….(Name & address of firm) hereby

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at, already the 3rd respondent is making arrangements for the yard within the Electrical Circle concerned, and moreover, it is a subject matter to be considered after the award of the bid. So far as Clause B.20 in respect of tax is concerned, the contention advanced is that, due to variation of GST rate, the said condition can never be put into practice. However, under Clause B.42 of the Special Conditions, Price Variation is dealt with, which read thus: B.42 PRICE VARIATION. Prices will be re-fixed every month, starting from the actual date of commencement of supply of poles, provided there is a variation in the average cost of cement, sand, coarse aggregate and diesel and average values of Whole Sale Price Index Number for Manufacture of Basic Metals (published by IEEMA) and Consumer Price Index Number (published by the Department of Economics and Statistics) during the month under consideration, from its values on the due date of tender. Price variation will be given for the poles s

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ticability of Clause B.20 regarding tax, put forth by the petitioners cannot be legally sustained since a clear method is worked out in the special conditions of contract. 22. Learned Senior Counsel appearing for the petitioners invited my attention to Clause 7(b) of General Conditions of Contract, which stipulates that: Tenders not stipulating period of firmness and tenders with price variation clause and/or subject to prior sale conditions are liable to be rejected . Learned counsel has also invited my attention to Clause 7(c), which stipulates that: Tenders subject to conditions will not be considered. They are liable to be rejected on that sole ground . In my considered opinion, the General Conditions of Contract will have to be taken into account and read along with the special conditions of contract. First of all, there is no price variation clause put forth by the 3rd respondent. As I pointed out earlier, in Ext.P7, the 3rd respondent has specified an aspect with respect to the

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more than ₹ 7 crores, even though the same is disputed by the petitioners. However, there is no case for the petitioners that, the 3rd respondent is not the lowest bidder with respect to certain regions. 24. Taking into account the sum and substance of the contentions made above, the various provisions of the Instructions, Special Conditions and the General Conditions of contract, I am of the considered opinion that, petitioners could not make out any case of arbitrariness, illegality, malafides or unfairness so blatant and patent, so as to interfere with the evaluation made by the 1st and 2nd respondents with respect to the successful bidder, under Article 226 of the Constitution of India. This is also a very settled legal position. Moreover, it is a commercial contract and the master of the contract is at liberty to enjoy reasonable flexibility in choosing its partner, taking also into account the price bid in the larger public interest, which may not in any manner interferes

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2018 (4) TMI 1243 – CESTAT NEW DELHI – TMI – Classification of services – services of shifting and transportation of the coal for M/s Western Coalfields Ltd from pitheads to railway sidings – whether classified under Cargo Handling service or under GTA Services? – Held that: – an identical issue has come up before the Tribunal in the case of M/s Associated Builders & Contractors V/s CCE, Jabalpur [2018 (4) TMI 848 – CESTAT NEW DELHI], where reliance placed in the case of Commissioner of Central Excise And Service Tax, Raipur Versus Singh Transporters [2017 (7) TMI 494 – SUPREME COURT], where it was held that a mine is not to be understood necessarily in respect of pit-heads of the mining area or the excavation or drilling underground, as m

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e coal for M/s Western Coalfields Ltd from pitheads to railway sidings. 3. Such activities undertaken by the appellant was interpreted by the Department that the same should fall under the taxable category of the cargo handling service but the appellant claimed it under the GTA (Goods Transport Agency) on which M/s Coalfield (recipient) has discharged the tax liability. Being aggrieved the present appeal has been filed. 4. With this background we heard Shri Kr. Vikram Ld. Counsel for the appellant and Shri G.R. Singh, Ld. DR for the Revenue. 5. After hearing both the sides and on perusal of appeal records it appears that an identical issue has co me up before the Tribunal in the case of M/s Associated Builders & Contractors V/s CCE, Jab

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stainable as per the settled principles of law enunciated by the judicial forum, which are to the extent that while adjudicating the matter, the authorities should only discuss whether, the proposals made in the SCN should sustain or not and that the authorities are not competent to change the clarification of service, under which the assessee was sought to be classified. Further, we also find that the issue as to ST/50128/2016 – CU [DB] 4 whether, transportation of coal within the mining area should be classified under GTA service or any other heads of service, is no more res – integra, in view of the judgment of Hon ble Supreme Court in the case of Singh Transporters (Supra). 7. Therefore, we do not find any merits in the impugned order.

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2018 (4) TMI 1216 – KERALA HIGH COURT – [2018] 2 GSTL 76 (Ker) – Release of detained goods – Section 129 of the Central Goods and Services Tax Act – Held that: – identical matter has been disposed of by a Division Bench of this Court in The Commercial Tax Officer And The Intelligence Inspector Versus Madhu. M.B. [2017 (9) TMI 1044 – KERALA HIGH COURT], directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017 – the competent authority is directed to complete the adjudication provided for u/s 129 of the statutes – petition disposed off. – WP (C). No. 12152 of 2018 Dated:- 6-4-2018 – P. B. Sure

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2018 (4) TMI 1143 – KERALA HIGH COURT – [2018] 2 GSTL 77 (Ker) – Release of detained goods – Section 129 of the Central Goods and Services Tax Act – Held that: – identical matter has been disposed of by a Division Bench of this Court in The Commercial Tax Officer And The Intelligence Inspector Versus Madhu. M.B. [2017 (9) TMI 1044 – KERALA HIGH COURT], directing expeditious completion of the adjudication of the matter and permitting release of the goods detained pending adjudication, in terms of Rule 140(1) of the Kerala Goods and Services Tax Rules, 2017 – the competent authority is directed to complete the adjudication provided for u/s 129 of the statutes – petition disposed off. – W. P. (C). No.12059 of 2018 Dated:- 6-4-2018 – MR. P. B

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Goods and Services Tax – 40/14/2018 – Dated:- 6-4-2018 – Circular No. 40/14/2018-GST F. No. 349/82/2017-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs (GST Policy Wing) *** New Delhi, April 6, 2018 To, The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners/ Commissioners of Central Tax (All) / The Principal Director Generals / Director Generals (All) Madam/Sir, Subject: Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports – Reg. Various communications have been received from the field formations and exporters that the LUTs being submitted online in FORM GST RFD-11 on the common portal are not visible to the jurisdict

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ice for acceptance of LUT. e) Acceptance of LUT/bond: An LUT shall be deemed to have been accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017-Central Tax, then the exporter s LUT will be liable for rejection. In case of rejection, the LUT shall be deemed to have been rejected ab initio. 3. It is requested that suitable trade notices may be issued to publicize the contents of this Circular. 4. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version w

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