Goods and Services Tax

Special Drive Fortnight to rectify errors relating to IGST refunds.
20/2018 Dated:- 30-5-2018 Trade Notice
Customs
OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS
CUSTOMS HOUSE, NAVARANGPURA, AHMEDABAD, 380009.
F. No. VIII/48-21/Cus/Sys/2017-18
PUBLIC NOTICE NO. 20/2018
DATE 30-05-2018
Sub: Special Drive Fortnight to rectify errors relating to IGST refunds.
Attention of the Exporters, Custom House Agents and Trade is invited towards the Special Drive Fortnight launched during 15th March to 31st March 2018 which resulted into sanction of huge amount of IGST refunds by way of rectification of error code SB005 and SB006 through officer interface.
2. Looking to the grand success of the above "Special Drive Fortnight",

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Correction / rectification in the Shipping Bill where exporters mentioned the status of IGST payment as “NA” instead of “P” and in the case of IGST refund cases stuck into Error Code SB003.
21/2018 Dated:- 30-5-2018 Trade Notice
Customs
OFFICE OF THE PRINCIPAL COMMISSIONER OF CUSTOMS
CUSTOMS HOUSE, NAVARANGPURA, AHMEDABAD, 380009.
F. NO. VIII/48-16/Cus/SYS/2017-18
DATE: 30-05-2018
PUBLIC NOTICE No. 21/2018
Sub: Correction / rectification in the Shipping Bill where exporters mentioned the status of IGST payment as "NA" instead of "P" and in the case of IGST refund cases stuck into Error Code SB003.
Attention of the Exporters, Custom House Agents and Trade is invited to Board's Circular 08/2018 dt. 23.03

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r mismatch exists shall be available for rectification.
3. Additionally, IGST Refund in respect of SBS with error code SB003, where the exporter has either declared a different GSTIN in the SB or has only declared PAN, and the corresponding returns have been filed through another GSTIN with the same PAN, can also be sanctioned through the Officer Interface. In such Cases, the GST registered unit have to submit an undertaking an undertaking which has filed the returns that "they have no objection to the refund being granted to the exporter who has filed the Shipping Bill and that they will not claim any IGST Refund for exports under that SB separately". Once satisfied, the Customs officer may sanction the applicable IGST Refund th

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M/s. Chemplast Sanmar Ltd. Versus Commissioner of GST & Central Excise, Trichy
Central Excise
2018 (8) TMI 1667 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 30-5-2018
Appeal No. E/40030/2013 – Final Order No. 41675/2018
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial)
Ms. S. Nandita Das, Advocate for the Appellant
Shri R. Subramaniam, AC (AR) for the Respondent
ORDER
Brief facts are that the appellants filed rebate claim for Rs. 4,81,194/- under Rule 18 of Central Excise Rules, 2002 in respect of excise duty paid on Monochloro Difluoro Methana HCFC – R11. Show cause notice was issued proposing to adjust the rebate against the dues to the extent of Rs. 24,109/- arisen out of the Order-in-Appeal No. 6

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Appeal No. 67/2010 dated 30.6.2010. Thus, the appropriation of the amount in consequence of the above order is no longer sustainable. She submitted that the Appeal No. E/583/2010 was field by the appellant along with stay petition before Tribunal. The appropriation was done during the pendency of the appeal as well as stay petition. The Board vide Circular No. 7/90-CX6 dated 2.3.1990 has clarified that no recovery proceedings shall be taken when the appeal and stay petition is pending. The Hon'ble Apex Court in the case of Union of India Vs. Arviva Industries (I) Ltd. reported in 2007 (209) ELT 5 (SC) has also clarified the same. The jurisdictional High Court in the case of Givaudan India Pvt. Ltd. Vs. Union of India – 2013 (292) ELT 161 (M

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M/s. Chemplast Sanmar Ltd. Versus Commissioner of GST & Central Excise, Trichy
Central Excise
2018 (5) TMI 1763 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 30-5-2018
Appeal No. E/583/2010 – Final Order No. 41674/2018
Central Excise
Ms. Sulekha Beevi C.S., Member (Judicial)
Ms. S. Nandita Das, Advocate for the Appellant
Shri R. Subramaniam, AC (AR) for the Respondent
ORDER
The appellants are engaged in manufacture of denatured ethyl alcohol and are availing facility of CENVAT credit on central excise duty paid on inputs, capital goods and service tax paid on input services. On perusal of records, it was observed that for the period April 2004 to June 2008, the appellant had availed credit of duties paid on

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odes were used for fabrication of the tank and without such use of items for fabrication of storage tank, the tank cannot be installed within the premises of the factory so as to be used in the manufacturing process. That the authorities below have disallowed the credit alleging that after fabrication and fixing to the earth, the storage tank becomes an immovable property and therefore the credit is not eligible. The said decision of the Larger Bench in the case of Vandana Global Ltd. – 2010 (253) ELT 440 (Tri. LB) is no longer good law. She submitted that the Hon'ble High Court of Madras in the case of Thiru Arooran Sugars reported in 2017 (353) ELT 373 (Mad.) has held the issue in favour of the assessee. The Tribunal vide Final Order No.

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ation of storage tank. The appellants are engaged in manufacture of denatured ethyl alcohol and such storage tanks are an indispensable item in the manufacturing activity. Without such activity of fabrication using the MS plates, MS sheets, HR coils etc. the storage tank cannot be installed within the factory at the required height to be used in the process of manufacture. The jurisdictional High Court in the case of Thiru Arooran Sugars (supra) had considered the issue and held that the user test evolved by the Hon'ble Supreme Court would determine the eligibility of credit of MS items and the credit was thus allowed. The Tribunal, in the appellant's own case in the final order referred to by the ld. counsel has allowed the credit for a di

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Seeks to waive the late fee for FORM GSTR-3B
SRO 242 Dated:- 30-5-2018 Jammu and Kashmir SGST
GST – States
Jammu and Kashmir SGST
Jammu & Kashmir SGST
Government of Jammu and Kashmir
Finance Department
Civil Secretariat, Srinagar
Notification
Srinagar, the 30th May, 2018
SRO 242 – In exercise of the powers conferred by section 128 of the Jammu and Kashmir Goods and Services Tax Act, 2017 (Act No. V of 2017), the State Government, on the recommendations of the Council, hereby

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Anita Singh, Pritam Singh, Abhishek Singh, Prerna Singh Versus CGST, CC & CE, Dehradun
Service Tax
2018 (6) TMI 810 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 30-5-2018
Service Tax Appeals No. 50976, 50989-50991 of 2015 – Final Order No. 52131-52134/2018
Service Tax
Shri Anil Choudhary, Member (Judicial) And Shri C.L. Mahar, Member (Technical)
Shri Rajesh Gupta, C.A. – for the appellants.
S/Shri A.K. Singh and R.K. Manjhi, Authorized Representative (DRs) – for the Respondent.
Per. C.L. Mahar :-
The brief facts of the matter are that all the four appellants are co-owners of a property situated at 24-A, New Cantt. Road, Dehradun. All the four owners are title holders of the property and have given the said property on rent to M/s ICICI Bank Ltd. on monthly rent basis. The tenant bank is making payment of the rent individually to all the four owners of the above property by issuing separate cheques/demand drafts in their individual names. The Depart

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15/11/2006″.
2. It can be seen that the service tax has been confirmed by the Original Adjudicating Authority against the above-mentioned four appellants only on the basis that the said property has jointly been leased out to M/s ICICI Bank Ltd. by the co-owners vide lease deed agreement dated 15/11/2006, hence, the learned Commissioner (Appeals) has held that since all the above applicants provided “the service of renting of immovable property service collectively to a single service receiver M/s ICICI Bank Ltd. thus liability to service tax should be discharged collectively on the amount of rent received by them even though they have received the rent amount separately in their accounts. Therefore, their plea that all the co-applicants hold separate PAN number and therefore they should be treated as a separate service providers does not hold good”.
3. We have heard both the sides.
4. It can be seen that the ownership title of the property which is on lease with M/s ICICI Bank Ltd.

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limit of Rs. 10 lakhs the service tax will be leviable. In this regard, we find that the learned Advocate for appellant has relied upon following case laws :-
(i) Anil Saini vs. CCE, Chandigarh – I – 2017 (51) S.T.R. 38 (Tri. – Chan.) ;
(ii) CCE & ST, Allahabad vs. Luxmi Chaurasia – 2017 (49) S.T.R. 541 (Tri. – All.) and
(iii) CCE, Nasik vs. Deoram Vishrambhai Patel – 2015 (40) S.T.R. 1146 (Tri. – Mumbai).
The relevant extract of Anil Saini vs. CCE, Chandigarh – I (supra) is reproduced here below :-
“3. After hearing both the sides, considering the fact that the issue has already been dealt by this Tribunal in the case of CCE, Nasik v. Deoram Vishrambhai Patel reported in 2015 (40) S.T.R. 1146 (Tri.-Mumbai), wherein this Tribunal observed as under :
6. We have considered the submissions made by both sides and perused the records. The issue that needs to be decided in this case is whether the respondent and his brothers are to be treated as association of persons or other vise

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by clubbing the rent received by all the co-owners and, therefore, the demand of tax is not maintainable on this ground alone. In support they have produced a City survey Extract as evidence regarding ownership of the rented property which shows that the said property was purchased in 2003 and is owned jointly by all the four co-owners. Further, the lease agreements with M/s. Max New York Life Insurance Co. Ltd., Oriental bank of Commerce, Axis Bank, Kotak Mahindra Bank and HDFC Standar Life Insurance Ltd. are also entered into by the appellants in their individual capacity, as per SCN also, all four co-owners have obtained separate Registration Certificate on 10-4-2012 and all the four co-owners individually paid their service tax liability along with interest on 14-2-2012. Thus, the ownership of the Property and providing of taxable renting of immovable Property by the four appellants in this case is in their individual capacity and, therefore, their tax liability should have been d

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by them during these two years by virtue of Notification No. 6/2005-S.T., dated 1-3-2005. The appellant's case is also supported by the Tribunal's decision in the case of Dinesh K. Patwa v. CST, Ahmedabed which is referred in para 3(ii) above. However, in the Financial Year 2009-10 and 2010-22, the receipt of rent by each appellant exceeded the statutory exemption limit of Rs. 10 lakhs and the appellants have paid service tax along with interest on their own before receipt of SCN. This fact is not disputed by the department also and no additional tax liability has been worked out for the said period in OIO.
6.4 Since the appellants were individually liable to pay service tax and eligible for the exemption under general exemption Notification 6/2005-S.T., dated 1-3-2005 during the period 2007-08 and 2008-09, no service tax was payable during the said period. Hence, the question of penalty under Section 76 for the said period does not arise. For the subsequent period i.e. 2009-10 & 20

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for the years 2009-10 and 2010-11 on their own initiative and there was no suppression of facts etc. on their part with any intention of evade service tax cannot be denied. Considering all these facts, I agree with the appellant'0s contention that this case was squarely covered under sub-section (3) of Section 73 which provided not to issue any notice under sub-section (1) of Section 73 if the service tax not levied or paid was paid along with interest by the person concerned before service of notice on him and informed the Central Excise Officer of such payment in writing. Further in Explanation 2 of the said sub section it is also clearly provided that no penalty under any of the provisions of the Act or the rules made thereunder shall be imposed in respect of payment of service tax under this sub-section and interest thereon. Hence, in fact no SCN was required to be issued in this case for recovery of service tax and imposition of penalty and even when it has been issued, no penalty

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M/s. Banswara Syntex Limited Versus CGST, Udaipur
Central Excise
2018 (6) TMI 777 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 30-5-2018
Excise Appeal No. E/50884/2018-EX[SM] – A/52111/2018-SM[BR]
Central Excise
MRS. ARACHNA WADHWA, MEMBER (JUDICIAL)
Present for the Appellant: Ms. Rinki Arora, Advocate
Present for the Respondent: Mr. H. C. Saini, D.R.
PER: ARCHNA WADHWA
After hearing both the sides, I find that the appellant are engaged in the manufacture of Cotton Yarns, which attracted education cess as also Secondary & Higher Education Cess. The appellant was availing the credit of cess paid on the various raw material and was utilising the same for payment of cess on their final product, inasmuch as cross payment of cess towards basic excise duty was not permissible.
2. With effect from 01.03.2015, the yarn was exempted from payment of cess as also Secondary & Higher Education Cess vide two Notification No. 14/2015-CE and 15/2015-CE both dated

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was upheld by Commissioner (Appeals) and hence the present Appeal.
4. By referring to the provisions of Section 11B of Central Excise Act, the appellate authority observed:
“8. I find that Section 11B of the Central Excise Act, 1944 is for refund of Central Excise Duty/ Service Tax & interest does not have any provision for sanction of refund of unutilized or accumulated closing balance of Cenvat credit of Education Cess and SHE Cess paid on inputs, input services and capital goods. Further, refund of accumulated credit can be allowed under Rule 5 of CCR, 2004 but that is permissible only in case of exports. However, the assesse has not claimed refund under Rule 5 and therefore this refund of accumulated credit is not refundable. The refund of cenvat credit to units in specified areas and service receiver paid under RCM is allowed under rule 5A/5B of CCR, 2004 but that is also not the case here and therefore in absence of any provision of Central Excise Law/ Service Tax law, refund o

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he authorities under the Act has clearly observed that the authorities have to work within the provisions of law and cannot exercise writ jurisdiction of High Courts in terms of Article 226.
6. Otherwise also, I find that the Cenvat Credit Rules allows the credit of the duty/tax paid on the inputs for further utilisation of the same in discharge of the dues on the final product. As such, it become clear that credit is admissible only for utilisation towards payment of duty on the final product of the asessee and such credit can never be encashed by the asessee. In case the same is not available for utilisation for payment of duty on the final product, the same would get lapsed and may be kept in the records for utilisation for any future time but under no circumstances the same is not available to the asessee.
7. In view of my foregoing discussions, I find no infirmity in the view adopted by the lower authorities. Accordingly, the impugned order is upheld and the appeal is rejected.

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M/s Hotline CPT Limited Versus CGST&CE, Bhopal
Central Excise
2018 (6) TMI 776 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 30-5-2018
Ex. Appeal No. 50738 of 2018-SM – A/52108/2018-SM[BR]
Central Excise
Ms. Archana Wadhwa, Member (Judicial)
Sh. Manish Saharan, Advocate for the appellant
Sh. H. C. Saini, AR for the Respondent
Per: Archana Wadhwa:
After hearing both the sides, I find that the dispute in the present appeal relates to adjustment of the sanctioned refund claim against outstanding demands.
2. Elaborating on the facts, it is seen that in the year 2006-07 demands were raised against the assessee which was confirmed by the lower authorities to the extent of Rs. 67 lakhs approximately. When the matter reached the Tribunal, the appellant was directed to deposit an amount of Rs. 10 lakhs as a condition of hearing their appeal, which stand deposited by them. Subsequently, appeal was taken up for disposal and the confirmation of demand of duty

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oner, confirming the demand, Tribunal has upheld the same. However, he submits that the said order of the Tribunal has been challenged by them before the Hon'ble High Court of Madhya Pradesh and the appeal is pending before the Hon'ble High Court. However, he fairly agrees that there is no stay of operation of the Tribunal order. It is his contention that instead of adjusting the refund claim against the said confirmed demand, Revenue should have granted the refund.
On being queried as to whether they have deposited anything against the said confirmed demand, he shows his ignorance. On further being asked as to whether the assessee is ready to deposit the said confirmed demands, in the absence of any stay by Hon'ble High Court, ld. Advocate is not in agreement with the proposal.
5. Ld. AR for the Revenue draws my attention on para 8 of the Commissioner (Appeals) order. It is his contention that when the appellant has lost the demand case till the Tribunal and has merely filed an appe

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an appeal has been filed by the appellant before the High Court is no ground to argue against the said adjustment of government dues, unless a stay has been obtained. It may also be stated that factory is closed since last several years and huge amount of customs dues are outstanding. Therefore, there is no infirmity in adjustment made by the adjudicating authority and such adjustment has been made in accordance with the statutory provisions and there is no violation of any departmental instructions”.
7. Admittedly, the appellant has to pay the Revenue the confirmed demands. However, they are not ready to pay the same but seek refund. The contention of the ld. Advocate that the demands have not attained finality cannot be appreciated inasmuch as the disputed issue in those demand cases stand settled right upto Tribunal. Mere filing of appeal before the Hon'ble High Court, without there being any stay, cannot be considered as pendency of the appeal. The Tribunal being the last fact f

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IN RE: M/s. Macro Media Digital Imaging Private Limited
GST
2018 (6) TMI 519 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – 2018 (14) G. S. T. L. 97 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – AAR
Dated:- 30-5-2018
A. R. Com/5/2017 – 4/2018
GST
Sri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, Joint Commissioner (Central Tax)
ORDER
1. M/s. Macro Media Digital Imaging Private Limited, Charlapally, Hyderabad (GSTIN No.36AABCM9451F1ZF) has filed an application in Form GST ARA-01under Section 97(1) of TGST Act,2017 read with Rule 103 of CGST/TGST Rules, 2017and sought Advance Ruling on the following issues:-
(i) Whether the printed advertisement materials classifiable as 'supply of goods?
(ii) If yes, whether it is classifiable under chapter heading 4911 of first schedule to Customs Tariff Act, 1975?
2. The applicant submitted the application in Form GST ARA-01 and Statement containing the applica

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ch printed material would be undertaken as per the customer specification wherein customers specify the sizes of the advertising material, location of the advertising material to be displayed etc.
(iv) Except specifying the specifications and designs to be printed, clients/customers of Applicant does not provide any materials and all required materials for the preparation of the advertisement materials are procured by Applicant only.
(v) Applicant also recovers the cost incurred towards transportation, installation, packing etc.
(vi) In pre-GST regime, Applicant had been paying applicable VAT and filed returns accordingly.
4. The applicant has also filed statement containing the Applicants interpretation of law and/or facts as the case may be, in respect of the question on which Advance Ruling is sought for in Annexure-II as under:-
a. That M/s Macro Media Digital Imaging Private Limited (herein after referred to as the Applicant) are engaged in the business of printing and sale o

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f CGST Act, 2017 (which was made applicable to IGST) and also under Section 7 of TGST Act, 2017.
e. Applicant understands that above referred GST law has prescribed different rates on different goods/services and also has different provisions relating to time of supply, place of supply for goods and services. Owning to this, the classification as goods or services is required to be done. After classifying a product/supply as goods/services, further step involved is arriving at the rate of tax as the rates are different even among goods or services.
f. The word 'goods' is defined under Section 2(52) of CGST Act, ibid which is extracted below :-
i. “(52) “goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be serviced before supply or under a contract of supply”
ii. Similarly the word 'services' is defined u/s 2(102) of C

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the term 'movable property' in GST law. Therefore the definition given under the provisions of General Clauses Act, 1897 can be adopted which reads as under :-
i. “(36) “movable property” shall mean property of every description, except immovable property;
ii. (26) “immovable property” shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth;”
i. As seen from the above, 'movable property' covers all properties except 'immovable property'. Therefore, if the property does not fall under the definition of 'immovable property', then same falls under the scope of 'Movable property'. The term 'Immovable property' includes land, benefits to arise out of land and things attached to the earth or fastened to the earth.
j. Further, the settled legal position under the provisions of Central Excise as well as sales tax is that things which are capable of being

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nt submits that TRU Circular No. 11/11/2017-GST dated 20-10-2017 clarified the taxability of printing contracts wherein vide Para 5 it was clarified that printing contracts similar to the instant case constitute 'Supply of goods'.
o. Accordingly, rate of tax shall be determined as per CGST Notification No. 1/2017 -Central Tax (Rate) dt. 28-06-2017 (corresponding Notification No. 1/2017 -State Tax (Rate) dt. 29-06-2017 for SGST rate and also 1/2017 – Integrated tax (Rate), dt. 28-06-2017 for IGST rate).
p. On perusal of the above notifications, Applicant understands that the goods have been categorized under six schedules based on description and HSN where each schedule is attracting different rate of tax.
q. In term of explanation (iii) and (iv) to Notification No. 1/2017 – Central Tax (Rate) dt. 28-06-2017, tariff heading, sub-heading, heading and chapter shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Custom

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catalogues, Printed inlay cards, Pictures, designs and photographs, Plan and drawings for architectural engineering, industrial, commercial, topographical or similar purposes reproduced with the aid of computer or any other devices.
s. As the instant case of supplying printed advertisement materials are used for trade advertising and not covered under any other heading of chapter 49, Applicant understands that same will fall under the heading 4911 which is liable for GST at the rate of 12%.
t. The above understanding was also supported by chapter note 5 to Chapter 49 of Customs Tariff Act, 1975 which reads as under :-
i. “Subject to Note 3 to this Chapter, heading 4901 does not cover publications which are essentially devoted to advertising (for example, brochures, pamphlets, leaflets, trade catalogues, year books published by trade associations, tourist propaganda). Such publications are to be classified in heading 4911”.
u. Applicant understands that Notification No. 11/2017 –

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first schedule to Customs tariff Act, 1975?
(iii) Any consequential questions that may arise during the hearing.
5. During personal hearing held on 03-04-2018 @ 3.00 P.M the Authorized Representative has presented their case and submitted that the printed advertisement materials are classifiable as Goods under Section 2(52) GST law and such Goods falls under Tariff Heading 4911 and liable to GST rate @ 12%. They filed further submissions as given below:-
(i) Applicant supplies the printed trade advertising materials (i.e. Banner flex), which is freely movable from one place to another thereby it becomes 'movable property' and consequently falls under the ambit of 'goods' under Section 2(52), ibid. Once anything falls under the ambit of 'goods' as defined under Section 2(52) of CGST Act, 2017 it does not become 'services' defined under section 2 (102) of CGST Act, 2017 and vice-versa. The above is further supported from :-
a. Sl. No. 1(a) of Schedu

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01/2017 – State Tax (R) dt. 29-06-2017 as amended.
6. As per Section 7 of CGST Act, 2017 read with Schedule-II Sl. No. 1(a) of CGST Act, “any transfer of the title in goods is a supply of goods”.
In the instant case the applicant is engaged in the business of manufacturing and sale of digital printed materials, wherein preparation of such printed material would be undertaken as per the customers specification and except specifying the specifications and designs to be printed, clients/customers of applicant does not provide any materials and all required materials for the preparation of the advertisement materials are procured by the applicant ,and the applicant is transferring the title in the goods i.e., printed advertisement materials. Therefore, instant case of supplying printed advertisement materials amounts to supply of 'goods' only.
7. Further, printed advertisement material are classifiable under Tariff heading 4911 in accordance with the rules for the interpretatio

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In re: M/s. Nagarjuna Agro Chemicals Private Limited
GST
2018 (6) TMI 465 – AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – [2018] 59 G S.T.R. 201 (AAR), 2018 (14) G. S. T. L. 90 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING HYDERABAD TELANGANA – AAR
Dated:- 30-5-2018
A. R. Com/7/2018 – 3/2018
GST
Sri J. Laxminarayana, Additional Commissioner (State Tax) And Sri V. Srinivas, IRS, Joint Commissioner (Central Tax)
ORDER
1. M/s. Nagarjuna Agro Chemicals Private Limited, Hyderabad, (GSTIN No. 36AABCN5531F1ZP) has filed an application in Form GST ARA-01under Section 97(1) of TGST Act, 2017 read with Rule 103 of CGST/TGST Rules, 2017and sought advance ruling on Rate of Tax on “Agricultural Soil testing Minilab and its Reagent Refills”.
2. The applicant submitted Statement containing the applicant's interpretation of law &relevant facts and requested for advance ruling on classification of “Agricultural Soil testing Minilab and its Reagent Refills”. They have su

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ting equipment/machine.
* MRIDAPARIKSHAK Minilab – Chemical Refiling Reagent for Soil Test. Mridaparikshak is a digital mobile quantitative minilabs/soil test kit to provide soil testing service at farmer's doorsteps.
* Mridaparikshak determines all the important soil parameters i.e., soil Ph, EC, Organic Carbon, available nitrogen, phosphorus, potassium, sulphur and micronutrients like Zinc, boron and iron. Based on the above findings, it will provide vital information to farmers and suggest them right type of inputs to improve productivity and avoid losses.
* Mridaparikshak comes with soil sampling tools, GPS, balance, shaker, hot plate and a smart soil pro, an instrument for determining the soil parameters and displaying of fertilizer nutrient recommendations. It also provides crop and soil specific fertilizer recommendations directly to farmers.
* Refill Reagent is nothing but part and parcel of Mini Lab, the essential Soil sampling is one of the most important step in

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agricultural implements – (1991) 19 APSTJ (STAT) D.H. Brothers (P) Ltd. v. Commissioner of Sales Tax, UP
* In determining the real classification to which the commodity falls, irrespective of the material by which a commodity is made up of, the end user test is to be applied in arriving at the correct clarification of the commodity.-(2004) 38 APSTJ 199 (STAT) Vijaya Ganesh Mill Stores v. State of A.P.
6. The issue before us is to determine the classification of “soil testing minilab” and its “Reagent refills”. The description of goods falling under Tariff heading 8201 as mentioned at S.No.137 under Notification No. 2/2017 is reproduced below:
Sl. No.
Chapter/ Heading/ Sub-heading/Tariff item
Description of Goods
Rate
137 Schedule of notification 2/2017 -Central Tax (Rate)
8201
Agricultural implements manually operated or animal driven i.e. Hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks and similar hewing tools; secateurs and prun

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dicure sets, and goods of heading No.82.09, this chapter covers only articles with a blade, working edge, working surface or other working part of:-
(a) Base Metal;
(b) Metal carbides or cermets;
(c) Precious or semi-precious stones(natural, synthetic or reconstructed) on a support of base metal, metal carbide or cermet; or
(d) Abrasive materials on a support of base metal, provided that the articles have cutting teeth, flutes, grooves, or the like, of base metal, which retain their identity and function after the application of the abrasive.
9. A combined reading of chapter notes and description of goods covered under Tariff heading 8201 reveals that the goods covered under this heading are basically hand tools of a kind used in agriculture, horticulture or forestry.
10. Whereas the main function of the “Soil testing minilab” is todetermine all the important soil parameters i.e., soil pH, EC, Organic Carbon, available nitrogen, phosphorus, potassium, Sulphur and micronutrien

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analysis are classifiable under GST Tariff heading 9027. As per the explanatory notes to HSN for chapter subheading 90.27, “Wet-chemical analyzers” for determination of inorganic or organic components of liquids, e.g., traces of metals, phosphates, nitrates, chlorides or integral parameters such as “chemical organic demand”and “Total organic carbons” are classifiable under Tariff heading 9027. SimilarlypH meters used to measure the factor expressing the acidity or alkalinity of a solution or mixture are classifiable under Tariff heading 9027.
13. Hence by applying the General rules for interpretation of Customs Tariff as applicable to GST Tariff, as the functions being performed by “Soil testing minilab” are similar to that of an Instrument/Apparatus for physical or chemical analysis, the “Soil testing minilab” is correctly classifiable under heading 9027 of the GST Tariff.
14. Further, as the applicant has stated that the “Refilling Reagent” is a part of “Soil testing Minilab”, the

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Territorial Jurisdictional Authority:Section 54 and 55 (Order No-1/2018-GST) dated 30th May,2018
01/2018-GST Dated:- 30-5-2018 Nagaland SGST
GST – States
GOVERNMENT OF NAGALAND
OFFICE OF THE COMMISSIONER OF STATE TAXES
NAGALAND: DIMAPUR
Dated Dimapur, the 30th May, 2018
ORDER-01/2018-GST
NO. CT/LEG/NGST-ORD/8/17: ln exercise of the powers conferred by sub-section (2) of Section 4 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017), the Commissioner of State Taxes, Nagaland

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Sanction of pending IGST refund claims where the records have not been transmitted from the GSTN to DG Systems and other pending claims -reg.
90/2018 Dated:- 30-5-2018 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF CUSTOMS (NS-II)
JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA,
TAL. URAN, DIST-RAIGAD, MAHARASHTRA – 400 707
F. No. S/12-Gen-Misc-07/2018-19 AM(X)
Date: 30.5.2018
PUBLIC NOTICE NO. 90/2018
Subject: Sanction of pending IGST refund claims where the records have not been transmitted from the GSTN to DG Systems and other pending claims -reg.
Attention of all the exporters, their authorized representatives and all export promotion is invited to CBEC Circular No. 12/2018-Customs dated 29.05.2018 regarding alternative mechanism for the process of IGST refund. In view of the above, JNCH shall be conducting an IGST refund clearance fortnight from 31st May, 2018 to 14th June, 2018.
2. Exporters whose cumulative IGST amount paid against exports and interstate domesti

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f July 2017 to March 2018 mentioned in GSTR-3B is less than the cumulative IGST amount indicated in GSTR-1 for the same period, the exporters would have to make the payment of IGST equal to the short payment in GSTR 3B of subsequent months so as to ensure that the total IGST refund being claimed in the Shipping Bill/GSTR-1(Table 6A) is paid. The proof of payment shall be submitted to Assistant/Deputy Commissioner of Customs in charge of IGST at JNCH. In case there are exports from multiple ports, the exporter is at liberty to choose any of the ports of export.
4. Where the aggregate IGST refund amount for the said period is up to ₹ 10 lacs, the exporter shall submit proof of payment (self-certified copy of challans) of IGST payment to the AC/DC(IGST) at JNCH. However, where the aggregate IGST refund amount for the said period is more than ₹ 10 lacs, the exporter shall submit proof of payment (self-certified copy of challans) of along with a certificate from Chartered Accou

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has erroneously declared that the shipment is without payment of IGST, although they have declared and paid the IGST in GST returns. Such cases shall now be handled through an officer interface the same way as the invoice mismatch (SB005) cases motioned in Public Notice 29/2018 dt. 26.02.2018. Only those SBs where no other mismatch exits shall be available for rectification.
7. Additionally, IGST refund in respect of SBs with error code SB003, where the exporter has either declared a different GSTIN in the SB or has only declared PAN, and the corresponding returns have been filed through another GSTIN with the same PAN, an undertaking has to be obtained from the GST registered unit which has filed the returns that they have no objection to the refund being granted to the exporter who has filed the shipping bill and that they will not claim any IGST refund for exports under that SB separately.
Difficulty, if any, may be brought to the notice of DC/AC, IGST Refund Cell, NS-II, JNCH or

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In Re : GKB Lens Pvt Ltd
GST
2018 (6) TMI 72 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL – 2018 (13) G. S. T. L. 343 (A. A. R. – GST), [2018] 2 GSTL (AAR) 60 (AAR)
AUTHORITY FOR ADVANCE RULING – WEST BENGAL – AAR
Dated:- 30-5-2018
Case Number / ARN 10 of 2018 – Order No. & 07/WBAAR/2018-19
GST
Vishwanath Member And Parthasarathi Dey Member
Applicant's representative heard Sri Sandeep Kothari, CFA
RULING
1. The Applicant is stated to be a Re-seller and Importer of Sun Glasses, Frames, Lenses, Contact Lenses, etc. having Head Office in West Bengal. Goods, namely, Optical Lenses and Frames for Spectacles and Accessories, are transferred from the Head Office in West Bengal to its branches in other states. Advance Ruling has been sought on whether such goods supplied to the branches in states other than West Bengal can be valued in terms of the Cost Price under the Second Proviso to Rule 28 of CGST Rules, 2017, instead of 90% of MRP as required under the First Provi

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ead Office also supplies to these branches non-trading stock like printing &stationery, office equipment, etc. The Applicant states that these non-trading stock are transferred at zero value
3. Rule 28 deals with valuation of a supply when it is made between distinct or related persons. If a person obtains or is required to obtain more than one registration in more than one State and/or Union Territory, then, in accordance to the provisions under Section 25 of the GST Act, each registration shall be treated as “distinct persons” for the purpose of the GST Act. The Applicant, at the time of Personal Hearing, has informed that separate registrations have been obtained for business establishments in different states. These independently registered business establishments in states other than West Bengal are referred to as “branches” with Head Office in West Bengal. Supplies to these branches, therefore, qualify as supplies made between the distinct persons, and provisions of Rule 28 will

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of goods for further retail sale or for use in the business (non-trading stock such as stationery and office equipment) transferred to branches considered as distinct persons being located in States other than West Bengal, are valid documents eligible for Input Tax Credit.
5. The First Proviso to Rule 28, thus, is clear that where goods are supplied to a recipient for further supply as such, the valuation of these goods when transferred from the supplier to the recipient may, at the option of the supplier, be determined at 90% of the price that will be charged by the recipient to its customer, not being a related person. The two clauses important to note in this Proviso are: a) goods received by the recipient are to be sold to a customer not being a related person and b) the determination of value at 90% of the price that will be charged by the recipient to this customer is an option. Whether or not the Supplier avails of this option is solely the discretion of the Supplier.
6. The S

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o so much of the input tax as is attributable to the purposes of his business.
In other words, the expression “where the recipient is eligible for full input tax credit”, is to be considered in the light of Section 17(1) of GST Act, to mean that the recipient will be eligible to take full input tax credit of the amount of tax paid by the suppler as mention in the respective invoice or any other document valid under Section 16(2)(a) of GST Act.
In view of the foregoing we rule as under
RULING
The Applicant has the option of not supplying goods to its branches under the First Proviso of Rule 28 and is eligible to value these goods by applying the terms of the Second Proviso to Rule 28 of GST Act.
The expression “where the recipient is eligible for full input tax credit”, as used in the Second Proviso to Rule 28 of CGST Rules, 2017, means that the recipient will be eligible to take full input tax credit of the amount of tax paid by the suppler as mentioned in the respective invoice

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In Re : Photo Products Company Pvt Ltd
GST
2018 (6) TMI 38 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL – 2018 (13) G. S. T. L. 337 (A. A. R. – GST), [2018] 2 GSTL (AAR) 59 (AAR)
AUTHORITY FOR ADVANCE RULING – WEST BENGAL – AAR
Dated:- 30-5-2018
Case Number 09 of 2018 – Order No. 06/WBAAR/2018-19
GST
Vishwanath Member And Parthasarathi Dey Member
Applicant's representative heard Sri Parag Kothari, Advocate
RULING
1. The Applicant is stated to be printing content supplied by the customers on photographic paper. An Advance Ruling is sought regarding the nature and classification of the activity – whether it is supply of goods or service and whether the activity carried out by the Applicant is taxable under HSN 4911 or SAC 9989. Advance Ruling is admissible on this question under section 97(2)(a) of the CGST/WBGST Act, 2017 (hereinafter the GST Act).
The Applicant also declares that the issue raised in the application is not pending or decided in any proceedings

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of computer or any other device, is classifiable under Heading 4911 of the First Schedule of the Custom Tariff Act, 1975 (hereinafter referred to as the “the Tariff Act”), which is aligned to the GST Act for the purpose of classification. Heading 4911 of the Tariff Act classifies “Other [i.e. not earlier specified] printed matter, included printed pictures and photographs; such as Trade advertising material, Commercial catalogues and the like, printed Posters, Commercial catalogues, Printed inlay cards, Pictures, designs and photographs, Plan and drawings for architectural engineering, industrial, commercial, topographical or similar purpose reproduced with the aid of computer or any other device.” From the description, it is clear that such classification concerns pre-printed materials or prints which are supplied as such.
It, however, appears from the application and the argument of the Applicant at the time of Personal Hearing that the content of the printed matters referred to ab

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med to have a bearing on this issue. A careful perusal of the judgments reveals that, most of them do not have any bearing to the instant case.
In the case of State of Karnataka etc Vs. M/s PROLAB and Others, and in the case of C.K. Jideesh vs UOI activities of Photo Labs are considered to be “Works Contract”. However, the activity of “Printing” does not come under “Works Contract” under Section 2(119) of the GST Act. Hence, the judgements are not found to be relevant to the instant case.
In the case of Rainbow Colour Lab [(2000) 2 SCC 385] the Apex Court held that the dominant intention of the photo lab is provisioning service of printing where the supply of paper and chemicals are purely incidental. The Court held that the activity should be treated as “Service”.
5. Hence, the Applicant is providing a service, namely, the service of printing and is liable to be classified under SAC 9989.
In view of the foregoing we rule as under
RULING
The activity carried out by the Applicant

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Clarifications on refund related issues – reg.
45/19/2018 Dated:- 30-5-2018 CGST – Circulars / Ordes
GST
Superseded Vide Circular No. 125/44/2019-GST dated 18-11-2019
Circular No. 45/19/2018-GST
F. No. CBEC/20/16/4/2018-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 30th May, 2018
To,
The Principal Chief Commissioners/Chief Commissioners/Principal Commissioners/ Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All) Madam / Sir,
Subject: Clarifications on refund related issues – reg.
The Board vide Circular No. 17/17/2017 – GST dated 15th November 2017, No. 24/24/2017 – GST dated 21st December 2017 and No. 37/11/2018 – GST dated 15th March, 2018 has laid down the procedure for manual filing and processing of different types of refund claims under GST and clarified the exports related refund issues.
2. Representations have bee

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t a valid return in FORM GSTR-3B has been filed for the last tax period before the one in which the refund application is being filed.
3.2 In this regard, attention is invited to sub-section (1) of section 37 of the CGST Act read with rule 59 of the Central Goods and Services Tax Rules, 2017 (CGST Rules for short) which mandates that every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52, shall furnish the details of outward supplies of goods or services or both effected during a tax period in FORM GSTR-1. Further, as per sub-section (2) of section 39 of the CGST Act read with rule 62 of the CGST Rules, a composition taxpayer is required to furnish the return in FORM GSTR-4; as per sub-section (4) of section 39 of the CGST Act read with rule 65 of the CGST Rules, an ISD is required to furnish the return in FORM GSTR-6 and as per sub-section (5) of section 39

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ommitted errors in declaring the export of services on payment of integrated tax or zero rated supplies made to a Special Economic Zone developer or a Special Economic Zone unit on payment of integrated tax. They have shown such supplies in the Table under column 3.1(a) instead of showing them in column 3.1(b) of FORM GSTR-3B whilst they have shown the correct details in Table 6A or 6B of FORM GSTR-1 for the relevant tax period and duly discharged their tax liabilities. Such registered persons are unable to file the refund application in FORM GST RFD-01A for refund of integrated tax paid on the export of services or on supplies made to a SEZ developer or a SEZ unit on the GST common portal because of an in-built validation check in the system which restricts the refund amount claimed (integrated tax/cess) to the amount of integrated tax/cess mentioned under column 3.1(b) of FORM GSTR-3B (zero rated supplies) filed for the corresponding tax period.
1[4.2 In this regard, it is clarified

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) of the Integrated Goods and Services Tax Act, 2017 (IGST Act for short) states that, subject to the provisions of section 17(5) of the CGST Act, credit of input tax may be availed for making zero rated supplies. Further, as per section 8 of the Goods and Services Tax (Compensation to States) Act, 2017, (hereafter referred to as the Cess Act), all goods and services specified in the Schedule to the Cess Act are leviable to cess under the Cess Act; and vide section 11 (2) of the Cess Act, section 16 of the IGST Act is mutatis mutandis made applicable to inter-State supplies of all such goods and services. Thus, it implies that all supplies of such goods and services are zero rated under the Cess Act. Moreover, as section 17(5) of the CGST Act does not restrict the availment of input tax credit of compensation cess on coal, it is clarified that a registered person making zero rated supply of aluminum products under bond or LUT may claim refund of unutilized credit including that of comp

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s per section 16(3) of the IGST Act, a registered person making zero rated supply shall be eligible to claim refund when he either makes supply of goods or services or both under bond or letter of undertaking (LUT) or makes such supply on payment of integrated tax.
6.2 However, in case of zero rated supply of exempted or non-GST goods, the requirement for furnishing a bond or LUT cannot be insisted upon. It is thus, clarified that in respect of refund claims on account of export of non-GST and exempted goods without payment of integrated tax; LUT/bond is not required. Such registered persons exporting non-GST goods shall comply with the requirements prescribed under the existing law (i.e. Central Excise Act, 1944 or the VAT law of the respective State) or under the Customs Act, 1962, if any.
6.3 Further, the exporter would be eligible for refund of unutilized input tax credit of central tax, state tax, union territory tax, integrated tax and compensation cess in such cases.
7. What

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aking their outward supplies. Further, the said restriction is also not applicable to an exporter who has procured goods from suppliers who have, in turn, received goods from registered persons availing the benefits of these notifications since the exporter did not directly procure these goods without payment of tax or at reduced rate of tax.
7.3 Thus, the restriction under sub-rule (10) of rule 96 of the CGST Rules is only applicable to those exporters who are directly receiving goods from those suppliers who are availing the benefit under notification No. 48/2017-Central Tax dated the 18th October, 2017, notification No. 40/2017-Central Tax (Rate) dated the 23rd October, 2017, or notification No. 41/2017-Integrated Tax (Rate) dated the 23rd October, 2017 or notification No. 78/2017-Customs dated the 13th October, 2017 or notification No. 79/2017-Customs dated the 13th October, 2017.
7.4 Further, there might be a scenario where a manufacturer might have imported capital goods by ava

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Business Unit Transfer as Going Concern Exempt from GST; Considered Supply of Service Under GST Rules.
Case-Laws
GST
GST – Intent to sell unit along with all assets and liabilities – The tran

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NACIN Named Authority for GST Practitioner Exam u/r 83(3) of CGST Rules, 2017.
Notifications
GST
NACIN has been notified as the authority for conducting the examination for GST Practitioners

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GST Update: PSLC Transactions Now Under Reverse Charge Mechanism, Shifting GST Payment Responsibility to Service Recipients.
Notifications
GST
GST – levy of Priority Sector Lending Certificat

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GST on Liquidated Damages
Query (Issue) Started By: – SARAVANAN RENGACHARY Dated:- 29-5-2018 Last Reply Date:- 29-5-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Experts,
As per recent Maharastra Advance Ruling, GST is applicable on Liquidated Damages.
Generally, Invoices are raised for full value with applicable GST as per the PO. Though the delivery is delayed and i.e. 10% LD is applicable, as accounting practice, invoice is raised for full value and GST on such full value is paid.
Customer will release the payment after deducting 10% LD. Such deducted amount will be treated as expenses in the books of supplier.
Scenario after Advance ruling:
It seems that the supplier has to raise the invoice for full value

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t customer has deducted the amount of liquidated damages then tax liability on such amount shall be discharged by the receiver of services under reverse charge mechanism provided the recipient of services must be a business entity located in taxable territory.
In order to substantiate our view, we would like to draw your kind attention towards entry no 5 of Notification No. -13/2017-Central Tax Rate dated 28.06.2017 and the same reads as under:-
5
Services supplied by the Central Government, State Government, Union territory or local authority to a business entity excluding, –
(1) renting of immovable property, and
(2) services specified below-
(i) services by the Department of Posts by way of speed post, express parcel post, life ins

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INPUT TAX CREDIT (ITC) IN GST (PART-II)
By: – Alkesh Jani
Goods and Services Tax – GST
Dated:- 29-5-2018

In our earlier discussion, we have gone through the conditions, restriction and manner by which ITC can be taken. In this session, we shall discuss Section 17 of CGST Act, 2017. The whole Section exhibits the different scenario for availing ITC and also goods and/or services, although said goods and/or services has passed the conditions and restriction, for which ITC is not available. In simple language, it can be said that negative list of goods and/or services, for which ITC is not available.
2. Let's start with sub-section (1) of Section 17 of the said Act, which reads as under:-
“(1) Where the goods or services or both are used by the registered person partly for the purpose of any business and partly for other purposes, the amount of credit shall be restricted to so much of the input tax as is attributable to the purposes of his business”.
From above, it is

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section (2) shall be such as may be prescribed, and shall include supplies on which the recipient is liable to pay tax on reverse charge basis, transactions in securities, sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building”.
The above sub-section reveals that, when goods and/or services are used for taxable as well as exempted goods or services, the ITC can be utilized to the proportionate to taxable supplies (including exports). To arrive at the eligibility of ITC available in terms of sub-section (1) and (2) of Section 17 of the said Act, the formulae are given in Rule 42 of CGST Rules, 2017. It is important to note that for sub-section (2) the value of goods and/or services includes, the value on which the tax is paid on reverse charge, transaction of securities and sale of land and /or building.
4. The GST Act, is said to be very specific Act. The sub-section (4) of Section17 of the said Act, deals with the ITC available by the banking and fi

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r registered or are approved by the Reserve Bank of India and are statutorily under the supervision of RBI. The banking services is limited to the activities covered by the definition of the term “banking” given at Section (5) (b) of The Banking Regulation Act,1949, which is as under:-
“(b) "banking" means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order or other wise;”
In view of above, it implies that as the above mentioned entities may be providing services other than banking services which are classified under HSN code 9971, which may be taxable and/or other than taxable. The sub-section (4) of Section17 of the said Act, stipulates that the entities mentioned therein, shall have the option to comply with sub-section (2) i.e. taxable supply (including export of goods and/or service) and exempted services (please refer Notification No.12/2017-CT (Rates)

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xcept when they are used
(i) for making the following taxable supplies, namely:-
(A)further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C)imparting training on driving, flying, navigating such vehicles or conveyances;
(ii) for transportation of goods;
(b) the following supply of goods or services or both-
(i) food and beverages, outdoor catering, beauty treatment, health services, cosmetic and plastic surgery except where an inward supply of goods or services or both of a particular category is used by a registered person for making an outward taxable supply of the same category of goods or services or both or as an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre;
(iii) rent-a-cab, life insurance and health insurance except where
(A) the Government notifies the services which are obligatory for an employer to provide to its employees under any law for the time being in force; or
(B) su

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able property;
(e) goods or services or both on which tax has been paid under section 10;
(f) goods or services or both received by a non-resident taxable person except on goods imported by him;
(g) goods or services or both used for personal consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples; and
(i) any tax paid in accordance with the provisions of sections 74, 129 and 130″.
5.1 The very first in the negative list for which ITC is not available is “motor vehicle”. This has been defined at Section 2(28) of Motor Vehicle Act, and is as under:-
“28. Motor vehicle" or "vehicle" means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body has not been attached and a trailer; but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use on

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t not to the end user, further, if this car is used for further supply of taxable services, i.e. one cab operator to another, for transportation of passengers, imparting training, the ITC is available. Here the question arises is that if the said car is booked as a capital goods in the book of accounts, the depreciation under Income Tax Act, may be availed or else ITC under GST. The useful life under GST for capital goods is termed for five years, so before availing ITC proper calculation is required (please refer Rule 43 of CGST Rules,2017). Moreover, ITC is made available if the said motor vehicle is used for imparting training on driving i.e. ITC available for driving school. The ITC is also available if the said vehicle is used for transportation of goods. Summarizing above, it can be said that ITC on motor vehicle or conveyance is available only if it is used for further supply, for transportation of passengers or goods and for imparting training.
5.3 Further, in terms of clause

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g outward services ITC is available. Here, it is surprising to learn that although motor vehicle or conveyance is mentioned, rent-a-cab, which is not mentioned in HSN code, is mentioned under this clause. The reason may be under any guise, ITC is not available. The most discussed issue is transportation facility extended to employee by staff bus or whatever name called, ITC is not available as Motor vehicles if used for supply of above mentioned taxable services namely, transportation of passengers, imparting training or transportation of goods. The pickup and drop of the employee is not notified under any law and same is not falling within the ambit of above clause. The ITC for any travel benefit extended to employee on vacation such as leave or home travel concession, is also not available. Here, it is pertinent to note that services and/or goods from employer to employee is specifically mentioned at various section and schedules, any other than those shall be dealt with one's own wi

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be included for capitalization of immovable property.
5.7 The sub-section (e) to (i) stipulates that ITC is not available for composition scheme, under Section10, goods and/or services is supplied by non-resident taxable person, other than goods and/or services imported by him. Moreover, if goods and/or services are used for personal consumption, ITC is not available, the same concept of erstwhile law.
5.8 If goods are lost, stolen, destroyed or written off or gifted or free sample, ITC if availed is required to be reverse. The same concept continues in GST regime. No ITC is available if taxes paid in terms of notice for non-payment, short payment or erroneously refunded, or taxes paid on detention, seizure of goods and/or conveyance, or confiscation of goods and conveyance (Section 74,129 and 130 of the said Act.).
6. As plant and machinery has already been discussed in our earlier session, it is not wise to repeat the same here. The sub-section (6) of Section17, mandates for mann

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tor to principal or main contractor.
(vii) Goods and / or services used for construction of immovable property although used in the course or furtherance of business or on his own account.
(viii) Goods and /or services provided by composition dealer or non-resident taxable person, however, if goods are imported by non-resident taxable person ITC is available and not for the services imported by him.
(ix) Goods and/or services if used for personal consumption, if goods are lost, stolen, destroyed, written off or disposed of by way of gift or free samples, ITC if availed is required to be reversed.
(x) Any taxes paid in terms of section 74,129 and 130 of CGST Act, 2017, ITC not available.
8. In conclusion of this session, it is reiterated that as no case law has attained its finality and each case has its own facts and circumstances, therefore, to arrive at any conclusion one must rely on own wisdom and knowledge. We shall deal with Section 18 in our next part. A small effort has be

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GIST OF RECENT PRONOUNCEMENTS ON GST (PART-XII)
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 29-5-2018

Goods and Services Tax (GST), introduced from July 1, 2017 is more than ten months old now but has resulted in operational and implementation disruptions affecting all stakeholders. GST law, as drafted and legislated, is not free from the interpretational hassles. GST Council his however, making regular changes to fix the anomalies and hardships faced by taxpayers.
Taxpayers have already started challenging various provisions of GST laws and rules framed thereunder with more than 180 writs being filed in different courts. High courts and Supreme court have taken a liberal stand so far in view of the fact that law is new and is yet evolving. However, CBIC may move to Supreme court where the verdict is against the Government. This has also been indicated in Circular No. 39 dated 03.04.2018 wherein it is has been hinted in relation to resolution of stru

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ttles during services provided to their customers while in hotels and restaurants.
Appellant pleaded that transaction consisting predominantly of a service, and not of a sale of drinking water and consisted of a composite charge which included incidental charges for food, drinks etc.
The Single Judge finally held that charging prices for mineral water in excess of MRP printed on the packaging, during the service of customers in hotels and restaurants does not violate any of the provisions of the Standards of Weights and Measures Act, 1976 as this does not constitute a sale or transfer of these commodities by the hotelier or restaurateur to its customers.
Appellant association filed Writ Petition seeking a declaration that provisions of Standards of Weights and Measures Act, 1976, Standards of Weights and Measures (Enforcement) Act, 1985 and Standards of Weights and Measures (Packaged Commodities) Rules, 1977 were not applicable to services rendered in premises of hotels/restauran

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fficer (Works Contracts), Palakkad (2018) 4 TMI 1010 (Kerala), where the petitioner was an assessee under Kerala VAT Act and desired to file revised returns for the period 2014-15 and 2015-16 and permission for revision was pending with authorities, the court directed the authorities to decide application within one month from date of receipt of this order in terms of Circular No. 14/2017 issued under SGST Act, 2017 on right of assessees to submit revised return.
* In M. Bagulayan v. Superintendent of Central GST & Central Excise (2018) 2 TMI 194 (Madras); where the petitioner had been levied with tax. The demand so raised was accepted by petitioner and same was duly paid. However, petitioner was still liable to pay interest thereon. Since petitioner submitted that he had paid 25 per cent of interest liability, he was permitted to remit balance payment in five equal monthly installments by the Court.
* In Etten Craft Holding Pvt. Ltd. v. State of Kerala 2018 (5) TMI 1280 (Kerala),

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ned the goods of the assessee under transport on the ground that the consignment of goods was not accompanied by the \necessary declaration in Form KER II.
The assessee filed a writ seeking release of goods. It was contested that the competent authority had not enabled the generation of KER II declaration in the website and as such, it was impossible for the transporter to download the KER II declaration electronically and it was under those circumstances that the detention was necessitated.
It was directed to the adjudicating authority to complete the adjudication process in connection with the detention within a period of one week. While adjudicating the matter, the Adjudicating Authority shall take note of the contention of the assessee that it was on account of the non-availability of Form KER II in the website that the transporter was disabled from producing the same at the time of transportation of the goods.
The challenge to the vires of the rules was kept open. Court foll

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The Punjab Goods and Services Tax (Fifth Amendment) Rules, 2018.
G.S.R.32/P.A.5/2017/S.164/Amd.(13)/2018 Dated:- 29-5-2018 Punjab SGST
GST – States
Punjab SGST
Punjab SGST
GOVERNMENT OF PUNJAB
DEPARTMENT OF EXCISE AND TAXATION
(EXCISE AND TAXATION-II BRANCH)
NOTIFICATION
The 29th May, 2018
No. G.S.R.32/P.A.5/2017/S.164/Amd.(13)/2018.- In exercise of the powers conferred by section 164 of the Punjab Goods and Services Tax Act, 2017 (Punjab Act No. 5 of 2017) and all other powers enabling him in this behalf, the Governor of Punjab, on the recommendations of the Council, is pleased to make the following rules further to amend the Punjab Goods and Services Tax Rules, 2017, namely:-
RULES
1. (1) These rules may be called the Punjab Goods and Services Tax (Fifth Amendment) Rules, 2018.
(2) They shall be deemed to have come into force on and with effect from the 7th day of March, 2018.
2. In the Punjab Goods and Services Tax Rules, 2017 (hereinafter referred to as the

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han supply; or
(iii) due to inward supply from an unregistered person,
shall, before commencement of such movement, furnish information relating to the said goods as specified in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal:
Provided that the transporter, on an authorization received from the registered person, may furnish information in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required at the common portal and a unique number will be generated on the said portal:
Provided further that where the goods to be transported are supplied through an e-commerce operator or a courier agency, on an authorization received from the consignor, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency and a unique number will be gene

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of this rule, the consignment value of goods shall be the value, determined in accordance with the provisions of section 15, declared in an invoice, a bill of supply or a delivery challan, as the case may be, issued in respect of the said consignment and also includes the Central tax, State or Union territory tax, integrated tax and cess charged, if any, in the document and shall exclude the value of exempt supply of goods where the invoice is issued in respect of both exempt and taxable supply of goods.
(2) Where the goods are transported by the registered person as a consignor or the recipient of supply as the consignee, whether in his own conveyance or a hired one or a public conveyance, by road, the said person shall generate the e-way bill in FORM GST EWB-01 electronically on the common portal after furnishing information in Part B of FORM GST EWB-01.
(2A) Where the goods are transported by railways or by air or vessel, the e-way bill shall be generated by the registered person

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ent is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified in this rule:
Provided also that where the goods are transported for a distance of upto fifty kilometers within the State or Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the recipient, or as the case may be, the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.
Explanation 1.- For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier to a recipient who is registered, the movement shall be said to be caused by such recipient if the recipient is known at the time of commencement of the movement of goods.
Explanation 2.- The e-way bill shall not be valid for movement of goods by r

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e e-way bill.
(5A) The consignor or the recipient, who has furnished the information in Part-A of FOR MGST EWB-01, or the transporter, may assign the e-way bill number to another registered or enrolled transporter for updating the information in Part-B of FORM GST EWB-01 for further movement of consignment:
Provided that after the details of the conveyance have been updated by the transporter in Part B of FORM GST EWB-01, the consignor or recipient, as the case may be, who has furnished the information in Part-A of FORM GST EWB-01 shall not be allowed to assign the e-way bill number to another transporter.
(6) After e-way bill has been generated in accordance with the provisions of sub-rule (1), where multiple consignments are intended to be transported in one conveyance, the transporter may indicate the serial number of e-way bills generated in respect of each such consignment electronically on the common portal and a consolidated e-way bill in FORM GST EWB-02 may be generated by h

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hat when the information has been furnished by an unregistered supplier or an unregistered recipient in FORM GST EWB-01, he shall be informed electronically, if the mobile number or the e-mail is available.
(9) Where an e-way bill has been generated under this rule, but goods are either not transported or are not transported as per the details furnished in the e-way bill, the e-way bill may be cancelled electronically on the common portal within twenty four hours of generation of the e-way bill:
Provided that an e-way bill cannot be cancelled if it has been verified in transit in accordance with the provisions of rule 138B:
Provided further that the unique number generated under sub-rule (1) shall be valid for a period of fifteen days for updation of Part B of FORM GST EWB-01.
(10) An e-way bill or a consolidated e-way bill generated under this rule shall be valid for the period as mentioned in column (3) of the Table below from the relevant date, for the distance, within the count

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shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of e-way bill.
Explanation 2.- For the purposes of this rule, the expression “Over Dimensional Cargo” shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988.
(11) The details of e-way bill generated under sub-rule (1) shall be made available to the-
(a) supplier, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the recipient or the transporter; or
(b) recipient, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the supplier or the transporter,
on the common portal, and the supplier

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n to an inland container depot or a container freight station for clearance by Customs;
(d) in respect of movement of such goods and within such areas in the State and for values not exceeding such amount as the Commissioner of State Tax, in consultation with the Principal Chief Commissioner/Chief Commissioner of Central Tax, may, subject to conditions that may be specified, notify;
(e) where the goods being transported, as specified in the Schedule appended to notification No.S.O.18/P.A.5/2017/S.11/2017 dated 30th June, 2017 published in the Punjab Government Gazette (Extraordinary), Part III, the 30th June, 2017 as amended from time to time, other than de-oiled cake;
(f) where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel;
(g) where the goods being transported are treated as no supply under Schedule III of the Act;
(h) Where the goods are be

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hbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55.
Explanation. – The facility of generation, cancellation, updation and assignment of e-way bill shall be made available through SMS to the supplier, recipient and the transporter, as the case may be.
ANNEXURE
[(See rule 138 (14)]
S. No.
Description of Goods
(1)
(2)
1.
Liquefied petroleum gas for supply to household and non domestic exempted category (NDEC) customers
2.
Kerosene oil sold under PDS
3.
Postal baggage transported by Department of Posts
4.
Natural or cultured pearls and precious or semi-precious stones; precious metals and metals clad with precious metal (Chapter 71)
5.
Jewellery, goldsmiths' and silversmiths' wares and other articles (Chapter 71)
6.
Currency
7.
Used personal and household effects
8.
Coral, unworked (0508) and wor

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ficer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection.
(2) Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or in any other State, no further physical verification of the said conveyance shall be carried out again in the State, unless a specific information relating to evasion of tax is made available subsequently.
138D. Facility for uploading information regarding detention of vehicle.-Where a vehicle has been intercepted and detained for a period exceeding thirty minutes, the transporter may upload the said information in FORM GST EWB-04 on the common portal.
4. In the said rules, for FORM GST EWB-01, FORM GST EWB-02, FORM GST EWB-03, FORM GST EWB-04 and FORM GST INV-1, the following forms shall be substituted, namely:-
FORM GST EWB-01
(See rule 138)
E-Way Bill :
E-Way

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er or Bill of Lading Number.
4. Place of Delivery shall indicate the PIN Code of place of delivery.
5. Place of dispatch shall indicate the PIN Code of place of dispatch.
6. Where the supplier or the recipient is not registered, then the letters “URP” are to be filled-in in column A.1 or, as the case may be, A.3
7. Reason for Transportation shall be chosen from one of the following:-
Code
Description
1
Supply
2
Export or Import
3
Job Work
4
SKD or CKD
5
Recipient not known
6
Line Sales
7
Sales Return
8
Exhibition or fairs
9
For own use
0
Others
FORM GST EWB-02
(See rule 138)
Consolidated E-Way Bill
Consolidated E-Way Bill No. :
Consolidated E-Way Bill Date :
Generator :
Vehicle Number :
Number of E-Way
Bills
E-Way Bill Number
FORM GST EWB-03
(See rule138C)
Verification Report
Part A
Name of the Officer
Place of inspection
Time of inspection
Vehicle Number
E-Way Bill Number
Invoice or Challan or Bill Date
Invoice or Challan or Bill Number

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nd code)
Type of supply –
B to B supply
B to C supply
Attracts Reverse Charge
Attracts TCS
GSTIN of operator
Attracts TDS
GSTIN of TDS Authority
Export
Supplies made to SEZ
Deemed export
Sr.No.
Description of Goods
HSN
Qty.
Unit
Price (per unit)
Total value
Discount, if any
Taxable value
Central Tax
State or UT Tax
Integrated Tax
Cess
Rate
Amt.
Rate
Amt.
Rate
Amt.
Rate
Amt.
Freight
Insurance
Packing and Forwarding Charges etc.
Total
Total Invoice Value (In figure)
Total Invoice Value (In Words)
Signature
Name of the Signatory
Designation or Status”;
5. In the said rules, in FORM GST RFD-01, for the DECLARATION [second proviso to section 54(3)], the following shall be substituted, namely:-
“DECLARATION [second proviso to section 54(3)]
I hereby declare that the goods exported are not subject to any export duty. I also declare that I have not availed any drawback of central excise duty/service tax/state taxon goods or services or both and that

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Accelya Kale Solutions Ltd. Versus Commissioner of CGST & CE Mumbai
Service Tax
2018 (8) TMI 19 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 29-5-2018
Appeal No. ST/85733/2018 – A/86926/2018
Service Tax
Mr. S.K. Mohanty, Member (Judicial)
Shri Harish Bindu Madhavan, Advocate, Shri Aakash Sarda, C.A for appellant
Shri V.R. Reddy, Asst. Commr (AR) for respondent
ORDER
Per: S.K. Mohanty
Brief facts of the case are that the appellant is engaged in providing the taxable services under the category of 'Business Auxiliary Service' 'Information Technology Service' and 'Maintenance and Repair Service', defined under the Finance Act, 1994. During the period April to June '2013, the appellant had filed refund appli

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s allowed the refund benefit for Rs. 3,89,143/- and rejected the balance amount of Rs. 3,40,065/- on the ground that no nexus have been established between the input and the output services. Feeling aggrieved with the impugned order, the appellant has preferred this appeal before the Tribunal.
2. Heard both sides and perused the records.
3. Rule 5 of Cenvat Credit Rules, 2004, was substituted vide Notification No. 18/2012-CE (NT) dated 17.03.2012, with effect from 01.04.2012. The said substituted rule has prescribed the formula for claiming refund of service tax by the service provider. Under such amended rule in vogue, there is no requirement of satisfying the nexus between the input services and the output service provided by the servic

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al of the statutory provisions read with the clarifications furnished by the TRU, it transpires that under the substituted Rule 5 of the rules, there is no requirement of showing the nexus between the input service and the output service provided by the assessee. Since the refund under the said amended rule is governed on the basis of receipt of export turnover to the total turnover, the establishing the nexus between the input and output service cannot be insisted upon for consideration of the refund application.
4. Therefore, I do not find any merits in the impugned order in denying the refund benefit to the appellant. Accordingly, the impugned order is set aside and the appeal is allowed in favour of the appellant.
(Order dictated in C

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In Re : Sri. Dharsak. V.P. And Saraswathi Metal Industries
GST
2018 (7) TMI 142 – AUTHORITY FOR ADVANCE RULING, KERALA – 2018 (13) G. S. T. L. 426 (A. A. R. – GST), [2018] 2 GSTL (AAR) 52 (AAR)
AUTHORITY FOR ADVANCE RULING, KERALA – AAR
Dated:- 29-5-2018
Advance Ruling ORDER No. CT/5496/18-C3
GST
Mr. Senthil Nathan S, IRS, Member, CGST And Mr. N. Thulaseedharan Pillai, Member, SGST
Ruling
1. Sri. Dharsak.V.P., Saraswathi Metal Industries, Alappuzha, manufacturer of marine propeller, rudder set, stern tube set, propeller shaft and M.S. Shaft for couplings, has preferred an application for Advance Ruling on the rate of tax of the above commodities used in fishing / floating vessels.
2. The applicant has argued that a

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0 00 under.
Marine Propellers
8487 10 00
 
371
8487
Machinery parts, not containing electrical connectors, insulators, coils, contacts or other electrical features not specified or included elsewhere in this chapter
Rudder set for fishing boats
7325
Other cast articles of iron or steel
Stern Tube set for fishing boats
 
7304
218
7304
Tubes, pipes and hollow profiles, seamless, (other than cast iron) or steel
Propeller Shaft
 
7222
209
7221, 7222
All bars and rods, of stainless steel
M.S.Shaft for Couplings
 
7214
204
7213 to 7215
All bars and rods, of iron or non-alloy steel
5. However, parts of fishing vessels, factory ships and other vessels for processing or preserving fishery products are

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In Re : IT Development Agency (ITDA), Govt of Uttrakhand
GST
2018 (6) TMI 1126 – AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – 2018 (14) G. S. T. L. 317 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, UTTARAKHAND – AAR
Dated:- 29-5-2018
Ruling No. 04/2018-19 In Application No. 03/2018-19
GST
MR ANIL SINGH (MEMBER) AND MR AMIT GUPTA (MEMBER)
For The Applicant : Shri Damanpreet Singh, FCA
RULING
1. This is an application under Sub-Section (1) of Section 97 of the CGST Act and the rules made thereunder filed by Project Co-ordinator (Finance & Admin.), ITDA, Govt, of Uttrakhand, Dehradun registered under GST bearing No. 05MRTPO1359B1DC seeking an advance ruling on the question whether the services or material procured by ITDA from Govt./Govt. Authority is exempt from GST.
2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub secti

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n the question whether the services or material procured by ITDA from Govt./Govt. Authority is exempt from GST. In this regard we find that as per Section 97(2)(e) of CGST/SGST Act, 2017 the advance ruling can be given on “determination of the liability to pay tax on any goods or services or both. In the present case applicant has sought advance ruling in respect of leviability of GST, if any, on the services or material procured by them from Govt./Govt. Authority. Therefore, in terms of said Section 97(2)(e) of CGST/SGST Act, 2017: the present application is hereby admitted.
4. Accordingly opportunity of personal hearing was granted to the applicant on 28.05.2018. Shri Damanpreet Singh, FCA appeared for personal hearing on behalf of the applicant and reiterated his submission as given in the application.
5. In the present application, applicant has requested for advance ruling on leviability of GST on procurement of services or material from Govt./Govt. Authority which is discussed

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1 Further the applicant has submitted an MOU with IIT, Mumbai which relates to design, development and field testing of “Aerostat Based Last Mile Communication System”. To determine the status of IIT, Bombay, we find that the Indian Institutes of Technology (IITs) are autonomous public institutes of higher education, located in India. They are governed by the Institutes of Technology Act, 1961 which has declared them as institutions of national importance and lays down their powers, duties, and framework for governance etc. Each IIT is an autonomous institution, linked to the others through a common IIT Council, which oversees their administration. The Minister of Human Resource Development is the ex-officio Chairperson of IIT Council. The President of India is the most powerful person in the organisational structure of IITs, being the ex officio Visitor and having residual powers. Directly under the President is the IIT Council, which comprises the minister-in-charge of technical educ

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