M/s. SUPER PLAST POLY PRODUCTS INDIA PRIVATE LIMITED Versus STATE OF KERALA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT, THIRUVANANTHAPURAM, THE COMMERCIAL TAX OFFICER-I, STATE GOODS AND SERVICES TAX DEPARTMENT, THRISSURGST COUNCIL REPRESENTED B

M/s. SUPER PLAST POLY PRODUCTS INDIA PRIVATE LIMITED Versus STATE OF KERALA, REPRESENTED BY ITS SECRETARY TO GOVERNMENT, THIRUVANANTHAPURAM, THE COMMERCIAL TAX OFFICER-I, STATE GOODS AND SERVICES TAX DEPARTMENT, THRISSURGST COUNCIL REPRESENTED BY ITS CHAIRPERSON, NEW DELHI, NEW DELHI, THE NODAL OFFICER FOR STATE GST, GOODS AND SERVICES TAX DEPARTMENT, KARAMANA, THE NODAL OFFICER FOR CENTRAL GST DEPARTMENT, THIRUVANANTHAPURAM, THE COMMISSIONER, GOODS AND SERVICES TAX DEPARTMENT DEPARTMENT, THRIUVANANTHAPURAM
VAT and Sales Tax
2018 (8) TMI 937 – KERALA HIGH COURT – 2018 (18) G. S. T. L. 221 (Ker.)
KERALA HIGH COURT – HC
Dated:- 5-7-2018
W. P. (C). No.21257 of 2018
CST, VAT & Sales Tax
MR. DAMA SESHADRI NAIDU, J.
For The PETITIONER : SRI.M.GOPIKRISHNAN NAMBIAR SRI.P.GOPINATH SRI.K.JOHN MATHAI  SRI.JOSON MANAVALAN SRI.KURYAN THOMAS AND SRI.PAULOSE C. ABRAHAM AND SRI.RAJA KANNAN
For The RESPONDENT : SRI SHAMSUDHEEN.V.K.
JUDGMENT
The petitioner had purchased a

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include the purchases in the returns for December 2016, it would automatically claim input credit on the tax it paid when it had purchased generator. And it may seek to use that input credit when it discharges tax on the product sold by it.
5. Heard the learned counsel for the petitioner as also the learned Government Pleader.
6. I may, to begin with, observe that a Division Bench of this Court dealt with the same issue in The Commercial Tax Officer v. C. R. Varghese. WA No.2541 of 2018 and connected cases, judgment, dt.06.06.2018 It has held as follows:
“12. Under Section 21(2), the dealer, on detecting any omission or mistake in the monthly return, can file a revised return rectifying the same within two months from the last day of the return period. Sub-section (9) of Section 22 prohibits any such revision of return if an offense has been detected or other proceedings initiated. Sub-section (10) of Section 22 permits a revised return incorporating the turnover covered in the pe

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nd proceedings are initiated against such evasion.”
7. After elaborately discussing the pros and cons of letting the dealer file revised returns, C. R. Varghese has held that when a dealer wants to revise a return, the Assessing Authority, as the Act mandates, must accept it. The decision also asserts that there is no prohibition against the dealer's seeking to revise a return after the time specified if no penal proceedings are pending. It then concludes that the Assessing Officer has the authority to examine the dealer's claims “even beyond the period and decide the question in accordance with well-established principles of law and ensure that the attempt is not to cover up or get over a penal provision or avoid the penal consequences of detection.”
8. The revised returns, C. R. Varghese notes, would be subject to Sections 22, 24 and 25 of the Act. On input tax credit, it has held that the possible claim by the assessee of a benefit available under the statute cannot be a reason f

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New Era Fabrics Pvt. Ltd. Versus Commissioner, CGST, Mumbai

New Era Fabrics Pvt. Ltd. Versus Commissioner, CGST, Mumbai
Service Tax
2018 (8) TMI 617 – CESTAT MUMBAI – TMI
CESTAT MUMBAI – AT
Dated:- 5-7-2018
APPEAL No. ST/88122/2017 – A/86957/2018
Service Tax
Mr. S.K. Mohanty, Member (Judicial)
Shri Pramod Khera, Advocate, for appellant
Shri Dilip Shinde, Assistant Commissioner (AR), for respondent
ORDER
Heard both sides.
2. When the matter was called for hearing on 29th May 2018, learned AR for Revenue was directed by the Bench to call for the report from department regarding deposit of the disputed amount in question, by the appellant. Pursuant to such direction by the Bench, the Assistant Commissioner (Division-VII), Mumbai Central Commissionerate, vide letter dated 4.

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of the view that the matter should go back to the original authority for proper computation of the service tax liability and for ascertaining the fact whether, the adjudged amount, in question, had already been deposited by the appellant, as contended by the learned Advocate.
4. Therefore, after setting aside the impugned order, I remand the matter to the original authority for passing a fresh adjudication order in line with the above observations. The original authority should also decide the issue whether, the appellant is liable to pay interest and penalty under the circumstances of the case. Needless to say that opportunity of personal hearing should be granted to the appellant before deciding the issue afresh.
5. In the result, the

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The Madhya Pradesh Goods and Services Tax Rules, 2017

The Madhya Pradesh Goods and Services Tax Rules, 2017
F.A-3-20-2018-1-V-(58) Dated:- 5-7-2018 Madhya Pradesh SGST
GST – States
Madhya Pradesh SGST
Madhya Pradesh SGST
Commercial Tax Department
Mantralaya, Vallabh Bhawan, Bhopal
Bhopal, the 5th July 2018
No. F.A-3-20-2018-1-V-(58).-In exercise of the powers conferred by Section 164 of the Madhya Pradesh Goods and Services Tax Act, 2017 (19 of 2017), the State Government hereby makes the following rules further to amend the Madhya Pradesh Goods and Services Tax Rules, 2017, namely :
AMENDMENTS
These amendments shall be deemed to have come into force with effect from the 19th day of June, 2018.
2. In the Madhya Pradesh Goods and Services Tax Rules, 2017,-
(xii) in rule 58

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said Chapter XVI.”;
(xiii) in rule 138C, after sub-rule (1), the following proviso shall be inserted, namely :-
“Provided that where the circumstances so warrant, the Commissioner, or any other officer authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days.
Explanation.- The period of twenty four hours or, as the case may be, three days shall be counted from the midnight of the date on which the vehicle was intercepted.”;
(xiv) in rule 142, in sub-rule (5), after the words and figures “of section 76”, the words and figures “or section 129 or section 130” shall be inserted ;
(xv) after FORM GST ENR-01, the followi

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Acceleya Kale Solutions Ltd. Versus Commissioner, CGST, Thane

Acceleya Kale Solutions Ltd. Versus Commissioner, CGST, Thane
Service Tax
2018 (7) TMI 1217 – CESTAT MUMBAI – 2019 (369) E.L.T. 803 (Tri. – Mumbai)
CESTAT MUMBAI – AT
Dated:- 5-7-2018
Appeal Nos. ST/86485, 86767, 86770-86772/2018 – ORDER No. A/86913-86917/2018
Service Tax
Hon'ble Mr. S.K. Mohanty, Member (Judicial)
Shri Harish Bindumadhavan, Advocate, and Shri Aakash Sarda, C.A., for appellant
Shri Atul Sharma, Additional Commissioner (AR), for respondent
ORDER
These appeals are directed against the impugned orders dated 12.12.2018, 15.1.2018 and 19.1.2018 passed by the Commissioner of GST and Central Excise (Appeals), Thane, Mumbai. Since the issue arising out of these appeals is common and identical, the same are taken up for hearing together and a common order is being passed.
2. Denial of cenvat benefit availed by the appellant in respect of service tax paid on taxable services utilized for export of output service is the subject matter of present disputes

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nce, clarifying the statutory provisions that correlation between the input services used for export of service cannot be insisted by the department for grant of service tax refund paid on the input services.
4. On the other hand, the learned AR appearing for the Revenue reiterates the findings recorded in the impugned order and further submits that since the disputed services were not utilized for providing the output service exported by the appellant, the benefit of refund under the Notification dated 18.6.2012 should not be available. Thus, he submits that the authorities below have rightly denied the cenvat benefit to the appellant.
5. Heard both sides and perused the records.
6. The fact is not under dispute that the appellant provides the entire output services to its overseas clients and none of the output services were provided to the clients within the country. Thus, it cannot be said that the input services, on which refund benefit has been sought, were not utilized for pr

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Revenue vide Circular dated 16.3.2012. It has been stated therein that the nexus between the input service used in export of service should not be insisted upon and the benefit of refund should be granted on the basis of ratio of export turnover to total turnover demonstrated by the assessee. The relevant paragraph in the Circular dated 16.3.2012 of TRU is extracted herein below:-
“F. Cenvat Credit Rules, 2004:
F.1 Simplified scheme for refunds:
1. A simplified scheme for refunds is being introduced by substituting the entire Rule 5 of CCR, 2004. The new scheme does not require the kind of correlation that is needed at present between exports and input services used in such exports. Duties or taxes paid on any goods or services that qualify as inputs or input services will be entitled to be refunded in the ratio of the export turnover to total turnover.”
8. Since the department has not specifically objected to the fact of computation of export turnover to the total turnover

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The Goa Goods and Services Tax (Sixth Amendment) Rules, 2018.

The Goa Goods and Services Tax (Sixth Amendment) Rules, 2018.
38/1/2017-Fin(R&C)(63) Dated:- 5-7-2018 Goa SGST
GST – States
Goa SGST
Goa SGST
GOVERNMENT OF GOA
Department of Finance
Revenue and Control Division

Notification
38/1/2017-Fin(R&C)(63)
In exercise of the powers conferred by section 164 of the Goa Goods and Services Tax Act, 2017 (Goa Act 4 of 2017), the Government of Goa hereby makes the following rules further to amend the Goa Goods and Services Tax Rules, 2017, namely:-
(1) These rules may be called the Goa Goods and Services Tax (Sixth Amendment) Rules, 2018.
(2) Save as otherwise provided in these rules, they shall deemed to have come into force from 19th day of June, 2018.
2. In the Goa Goods and Ser

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ation Numbers for the purposes of the said Chapter XVI.”;
(ii) in rule 138C, after sub-rule (1), the following proviso shall be inserted, namely:-
“Provided that where the circumstances so warrant, the Commissioner, or any other officer authorised by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days.
Explanation.- The period of twenty four hours or, as the case may be, three days shall be counted from the midnight of the date on which the vehicle was intercepted.”;
(iii) in rule 142, in sub-rule (5), after the words and figures “of section 76”, the words and figures “or section 129 or section 130” shall be inserted;
(iv) a

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M/s Gati Kintetsu Express Pvt. Ltd. Versus Commissioner, Commercial Tax of MP & others

M/s Gati Kintetsu Express Pvt. Ltd. Versus Commissioner, Commercial Tax of MP & others
GST
2018 (7) TMI 1097 – MADHYA PRADESH HIGH COURT – 2018 (15) G.S.T.L. 310 (M. P.)
MADHYA PRADESH HIGH COURT – HC
Dated:- 5-7-2018
W. P. No. 12399 of 2018
GST
Shri P.K. Jaiswal & Shri S.K. Awasthi JJ.

Shri Vivek Dalal, learned counsel for the petitioner.

Ms. Archana Kher, learned Government Advocate for the respondents – State.

Per P.K. Jaiswal, J.

By this writ petition under Article 226 of the Constitution of India, the petitioner is praying for quashment of order dated 30.05.2018 passed by the respondent No.2 – GST Appellate Authority & Joint Commissioner of State Tax, Indore and order dated 04.05.2018 passed by the respondent No.3 – Assistant Commissioner of State Tax, Indore wherein demand and penalty imposed by the respondent No.3 has been upheld and directed the petitioner to pay the amount of Rs. 1,32,13,683/-. Relevant part of the order dated 04.05.2018 passe

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of the Act provides for inspection of goods in movement, which reads as under :-

1. The Government may require the person in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be specified to carry with him such documents and such devices as may be prescribed.

2. The details of documents required to be carried under sub-section (1) shall be validated in such manner as may be prescribed.

3. Where any conveyance referred to in sub-section (1) is intercepted by the proper officer at any place, he may require the person to charge of the said conveyance to produce the documents prescribed under the said sub-section and devices for verification, and the said person shall be liable to produce the documents and devices and also allow the inspection of goods. From perusal of the aforesaid provision, it is clear that the government is empowered in charge of a conveyance carrying any consignment of goods of value exceeding such amount as may be

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t of goods, update the details of conveyance in the e-way bill on the common portal in Part B of Form GST EWB-01.

7. Annexure-P/6 is the e-way bill. The details as mentioned in paras-2, 3, 4 & 5 are relevant, which reads as under :-

2. Address Details

From

To

GSTIN : 27AAE DA945 6D1ZM SAVA HEATHCARE LIMITED CFA MIRCOPARK LOGISTICS1ST FLOOR GATE NO.1232 WADKI, MAHARASHTRA-412308

GSTIN :D9CFE PS825 3Q12F M/S ANNAPURNA PHARMA DAYA COMPLEX OPP. SHRI TALKIES BYPASS ROAD UTTAR PRADESH -282003

3. Goods Details

HSN Code

Product Description

Quantity

Taxable Amount Rs.

Tax Rate (C+S+I+Cess)

30049086

 

10976.00

2226598.

00 0+0+12+0

Net Taxable Amount : 2226598.00

CGST Amount Rs. 0.00 SGST Amount Rs. 0.00

IGST Amount Rs. 267191.52 Cess Amount Rs. 0.00

4. Transportation Details

36AADCG2096A1ZY & GATI-KINTETSU EXPRESS PRIVATE

Transporter ID & Name : LIMITED

Transporter Doc. No. & Date : 229076616 & 25/04/2018

5. Vehicle

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ich contains the detials about the vehilce and transporter.

10. In the case in hand, admittedly, the petitioner has failed to give the details in Part-B of the e-way bill i.e., the details of conveyance in the e-way bill and the common portal in Part-B of Form GST EWB-01. The petitioner violated the provisions of Rule 138 and Section 68 of the Act, therefore, proceeding was initiated under Section 129 of the Act and penalty was imposed under Section 122 of the Act since he was transporting the taxable goods without the cover of documents.

11. The Department, after following due procedure, issued show cause notice and penalty case was registered. The petitioner submitted its reply by stating that due to technical error, Part-B of the e-way bill cannot be updated.

12. Learned adjudicating Authority considering the fact that the petitioner has failed in performing the statutory provisions, penalty was imposed, which was assailed by filing an appeal and the same was also dismissed

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e, it is not a minor mistake or cannot be treated as a technical error when there is an option of raising a grievance on the GST portal itself.

15. The Assessing Officer as well as the learned Authority rejected the contention that they should have imposed minor penalty. Their stand is that the minor penalty can only be in cases where the tax is upto Rs. 5,000/-.

16. In the present case, tax liability is more than lac of rupees and, therefore, they have refused to impose minor penalty and prayed for dismissal of the writ petition.

17. From the aforesaid facts of events, it is clear that while loading the goods valued at Rs. 1,12,61,419/- (including transportation charges), during Inter and Intra State of Supply of Goods or Services from Wadki, Maharashtra to Noida were accompanied by e-way bill The respondent No.2 has directed for physical verification. On physical verification, respondent No.3 has found the alleged irregularity that Part-B of the e-way bill was incomplete and

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due to inadvertence and it was a technical error therefore, the objection with regard to non-filling of the Part-B of e-way bill is nothing but a clear abuse of process of law.

21. Learned counsel for the petitioner has placed reliance on the Division Bench decision of Allahabad High Court in the case of VSL Alloys (India) Pvt. Ltd. vs. State of UP & others reported in (2018) 67 NTN DX 1 and submitted that in identical circumstances, the Division Bench found that there was no ill intention at the hands of the petitioner nor the petitioner was supposed to fill up Part-B giving all the details including the vehicle number before the goods are loaded in the vehicle, which is meant for transportation to the same to its end destination.

22. In the case of VSL Alloys (India) Pvt. Ltd. (supra), the distance was within 50 kilometeres and, therefore, the petitioner therein was not under an obligation to fill the Part-B of the e-way bill and the Division Bench of the Allahabad High Court

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Kirit Shrimankar Versus The Commissioner, CGST & Central Excise & Another

Kirit Shrimankar Versus The Commissioner, CGST & Central Excise & Another
Customs
2018 (7) TMI 627 – MADHYA PRADESH HIGH COURT – 2018 (362) E.L.T. 385 (M. P.)
MADHYA PRADESH HIGH COURT – HC
Dated:- 5-7-2018
W. P. No. 14380/2018
Customs
Hon'ble Mr. Justice P.K. Jaiswal And Hon'ble Mr. Justice S.K. Awasthi
Shri Abhinav P. Dhanodkar, learned counsel for the petitioner
ORDER
Per P.K. Jaiswal, J.
By this writ petition under Article 226 of the Constitution of India, the petitioner is challenging the Circular No.276/104/2016-CX.8A dated 3/01/2017 issued by the Central Board of Excise & Customs directing that the show cause notices, adjudication of which was kept in call book pursuant to the earlier Circulars dated 29/06/2016 and 28/12/2016 shall be taken out and be adjudicated in accordance with law.
2. According to the writ petitioner, the earlier Circulars of 2016 which thus stand withdrawn, were on the issue of competency of officers of Directorate of Rev

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ssued by ADG, DRI proposing demand of duty from the petitioner.
4. As per Annexure-P/1, the Circular impugned has been issued pursuant to legal opinion taken from the Solicitor General of India. Even otherwise, when operation of the judgment circumscribing the jurisdiction/competency of a quasi judicial authority is stayed by the Apex Court, there cannot be any option left with the authorities to exercise such jurisdiction and to proceed with adjudication. It appears that merely since issue of competence of officers of Directorate of revenue Intelligence is pending for final order before the Apex Court, to avoid adjudication, the petitioner has challenged the Circular dated 3/01/2017. For every issue, some or the other case would be pending in High Court or the Hon'ble Supreme Court. The same cannot cause fetter in exercise of quasi judicial or judicial functions of the authorities or lower courts. If merely for this reason the adjudication is kept in call book, there would be gra

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he ratio of the judgment of the Apex Court further precludes the right of the Department to file an appeal against the correctness of the binding nature of the Circulars. In Paper Products Ltd.(supra), the Apex Court has held that so far as the Department is concerned, whatever action it has to take, the same will have to be consistent with the Circular which is in force at the relevant point of time.
6. The claim of the petitioner that therefore several similar cases, wherein Show Cause Notices have been issued by the DRI Officers, have been placed in call book by various adjudicating authorities all over India is not supported by any favourable data. In any event, the show cause notices which were kept in the Call Book, in view of the said Board instructions will have to be taken out of the Call Book immediately and the adjudication of such show cause notices are to be proceeded in accordance with law. It would cause grave harm to the petitioner for noncompliance of instructions iss

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has been followed in Swiber Offshore Constructions Pvt. Ltd. v. CC, Kandla[2014 (301) E.L.T.119(Tri). The petitioner claims that the adjudicating proceedings are pending and final order is yet to be passed, we cannot presume merely on the basis of such unfounded apprehension that the adjudicating authority would not comply with the mandatory statutory requirement under Section 138B of the Customs Act, 1962, despite binding precedents in this regard in J.K. Cigarettes Ltd. v. Commissioner [2009 (242) E.L.T.189(Del.), Slotco Steel Products Pvt. Ltd. v. Commissioner [2012(281) E.L.T.193(Del.), Basudev Garg v. Commissioner [2013(294) E.L.T. 353(Del.), CCE, Meerut-1 v. Parmarth Iron Pvt. Ltd. [2010 (260) E.L.T. 514 (All.) and Swiber Offshore Constructions Pvt. Ltd.(Supra) on the applicability of the provisions of Section 138 B of Customs Act, 1962/Section 9D of Central Excise Act, 1944 and also on the order of examination as per the judgment of the Apex Court in the case of Sukhwant Singh v

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In Re: M.D. Mohta

In Re: M.D. Mohta
GST
2018 (7) TMI 390 – AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – 2018 (15) G. S. T. L. 94 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL – AAR
Dated:- 5-7-2018
ARN No. 11 of 2018 and 08/WBAAR/2018-19
GST
VISHWANATH AND PARTHASARATHI DEY MEMBER
Applicant's representative heard: Rahul Dhanuka, Legal Representative
1. The Applicant, stated to be a Manufacturer of the item “Rakhi”, is seeking a Ruling on classification of “Rakhi”, on whether exemption under Notification No. 2/2017-Central Tax (Rate) dated 28/06/2017 (1126-FT dated 28/06/2017 of State Tax), (hereinafter referred to, collectively, as “Exemption Notification”) is applicable for such manufacture, and if not, the taxability of the same.
Advance Ruling is admissible on this question under Section 97(2) (a) of the CGST/WBGST Acts, 2017 (hereinafter referred to, collectively, as “the GST Act”).
The Applicant further submits that the question raised in the Application is n

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lful pasting or attaching decorative items to threads;
c) “Rakhi” is an ancient festival;
d) Traditionally “Rakhi” used to be made up only of Kalava (i.e. cotton threads of red/orange colour);
e) “Rakhi” was exempt from payment of VAT under several States, as well as from Central Excise duty under the earlier Tax Structure since it was considered as “handicraft”;
f) The Exemption Notification exempts Kalava (raksha sutra) from payment of GST since it is listed as “puja samagri”;  
g) Reference has been made on FAQ published on CBEC website dated 03.08.2017;
h) Reference has been made to Rule 3(b) of the Rules for Interpretation of the Customs Tariff Act, 1975 (hereinafter referred to as “the Interpretation Rules”);
i) Various judgements have been referred to;
j) If “Rakhi” is not considered to be exempt then it may be classifiable under and taxability determined in accordance to Serial No 224 or Schedule I and Serial No 171 of Schedule II of Notification No 1/2017-CT(Rate)

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ication for Advance Ruling the manufacturing of “Rakhi” had not been begun by the unit. However, the Applicants admitted, that the manufacturing process of “”Rakhi”” has been started in their unit.
Hence, all references in the Application of the Applicant “intending to manufacture” is being taken up in the spirit of “already manufacturing” and discussed accordingly.
It appears from the Partnership Deed dated 31.03.2008 submitted by the Applicant that M/s M D Mohta has been in existence from 13.04.1987, if not earlier, and Partnership Deed dated 31.03.2008 submitted by the Applicant incorporates M/s M D Mohta Rakhi Pvt Ltd as the third Partner with claim to 50% of the share of the profits of the partnership. It appears from the Partnership Deed dated 31.03.2008 submitted with the Application that M/s M D Mohta Rakhi Pvt Ltd with an annual turnover of 10-25 crores is the controlling Partner of M/s M D Mohta.
On being specifically asked the Applicant has stated that till F/Y 2017-18 M/

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Notification No 38/2017-Central Tax dated 13.10.2017, provides a list of articles which are to be considered as “handicraft goods” for the purpose of GST when made predominantly by hand by the craftsmen even though some machinery may also be used in the process.
“Rakhi” does not feature in this list. Hence, “Rakhi” cannot be considered as “handicraft” for the purpose of GST.
6. The Applicant suggests that if “Rakhi” is not considered to be exempt then it may be classifiable under and taxability determined in accordance to Serial No 224 of Schedule I and Serial No 171 of Schedule II of the Rate Notification. The Applicant, on being specifically asked, has also stated that one of its partners, M/s M D Mohta Pvt Ltd clears “Rakhi” under Tariff Heading 6307.
As per Rule 1 of the Interpretation Rules the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and a

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scarf squares, blankets);
(c) Hemmed or with rolled edges, or with a knotted fringe at any of the edges, but excluding fabrics the cut edges of which have been prevented from unravelling by whipping or by other simple means;
(d) Cut to size and having undergone a process of drawn thread work;
(e) Assembled by sewing, gumming or otherwise (other than piece goods consisting of two or more lengths of identical material joined end to end and piece goods composed of two or more textiles assembled in layers, whether or not padded); or
(f) Knitted or crocheted to shape, whether presented as separate items or in the form of a number of items in the length.
Clearly, “Rakhi” cannot be described as a “made up article” under Chapter 63 as per the above Section Note
7. The Applicant has referred to Rule 3(b) of the Interpretation Rules. Rule 3(b) of the Interpretation Rules states that “Mixtures, composite goods consisting of different materials or made up of different components, and goo

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r potential care. The expression “Raksha Bandhan,” Sanskrit, literally, “the bond of protection, obligation, or care,” is now principally applied to this ritual. “Rakhi”, which the Applicant intends to manufacture, is this object which symbolises the bond of protection and is tied round the wrist of the brother. History records variations of this ritual, but whatever the variation the emphasis is to denote the bond between the protector and the person in need of protection. Notable among these variations is the tying of “Rakhi”s among Muslims and Hindus as a form of protest against the Partition of Bengal in 1905. Leonard Elmherst's memoir Poet and Plowman records that Tagore transformed the religious tradition of Rakhsha Bandhan to a secular motif of unity among diversity and resisted Banga Bhanga, the Partition of Bengal, along communal lines.
Newspaper annals, like The Indian Express refer to how Tagore deftly used the concept of brotherhood, togetherness and 'the thread of pro

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or the ritual of “Rakhi” be linked to religious ceremonies or rituals involving deities. References have been found to Sri Radha tying “Rakhi” on Shri Krishna. But here again, the reference is to the symbolic gesture of the need of protection.
“Rakhi”, in other words, is not an essential part of any Puja or Religious Ceremony to pay obeisance to any deity. Mere inclusion of “Rakhi” in a Puja Thali at the discretion of either the Customer or the Supplier does not make it an integral and essential part of Puja Samagri. Serial number 148 of the Exemption Notification lists the items to be considered as Puja Samagri and “Rakhi” is not listed therein.
“Rakhi”, therefore, cannot attract NIL rate of duty under Serial No 9(1) of FAQ dated 03.08.2017 (later, Serial No 92(1) of F. No 332/2/2017-TRU issued by the Tax Research Unit, Govt of India, Ministry of Finance, Department of Revenue) (hereinafter referred to as the “TRU Clarification”).
Nor can it be considered exempt in terms of Serial

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The “Rakhi”s which are being manufactured include Decorative “Rakhi”, Designer “Rakhi”, & Fancy “Rakhi”. This again, is not an exhaustive list of the kind of “Rakhi”s being manufactured. The Applicant may manufacture other variants of “Rakhi” too. The mention of Glass Beads, Plastic Beads, Coloured Stones, Metal Pendants and Rudraksha also clearly points to the fact that what the Applicant intends to manufacture are not merely Cotton threads in the form of yarn of specifically red and yellow in colours, in other words these rachis are not in the form of “Kalava”.
This is also obvious from the pictures submitted by the Applicant of the “Rakhi”s that will be manufactured by them. Serial No 92(2) of the TRU Clarification is not applicable to the “Rakhi”s manufactured by the Applicant.
10. The Application, however, states that the Applicant intends to manufacture, inter alia, Decorative “Rakhi”, Designer “Rakhi”, & Fancy “Rakhi”. Although this is not an exhaustive list of the kinds of “R

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rative/Designer/Fancy/Kid's and not merely to put round the wrist.
12. The various components which go into the making of “Rakhi” are innumerable of no fixed or predetermined ratio and both, the variety and the proportion in which they are used do not follow any fixed formula but are at the Manufacturer's will. The resultant products are identifiable as new items, independent in manner and form of its constituent materials, and cannot be stated to be a mere assemblage of its constituent materials. In other words, “Rakhi” retains its specific identity as a symbol of a bond involving the potential care of the sister by the brother, and not merely a conglomeration of discrete materials, is clearly not classifiable under a single Tariff code.
Moreover, under the GST Act the identity of an item at the point of supply is of paramount importance.
In this case “Rakhi” appeals to the end-consumers because of its specific characteristics which gives the identity of Decorative/Designer/Fancy/K

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specific Tariff Code a “Rakhi” can be considered an article of any of these constituent materials. Rule 3(c) of the Interpretation Rules, requires to be resorted to, then, for the classification of “Rakhi”.
Rule 3(c) of the Interpretation Rules, states that “When goods cannot be classified by reference to 3(a) [heading most specific] or 3(b) [applicable to mixture, composite goods and goods put up in sets for retail sale] they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration”.
A typical “Rakhi”, as evidenced in the pictures submitted by the Applicant of “Rakhi”s intended to be manufactured by them, will have a i) cord/twine or any material to enable it to be put round the wrist; ii) one or many items made of different materials which will form the part of the embellishments of the “Rakhi” and give the “Rakhi” its defining characteristic as Decorative or Designer or Fancy, or even decide that the target consumer

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metal pendant, stone ring, metal moti, cotton thread and plastic beads falling under Chapter 71 to 81 (depending on the metal), Chapter 70/71 (depending on the nature of the stone), Chapter 52, Chapter 39. Assuming that there are no other constituent materials undeclared in the literature submitted by them, under Rule 3(c) this “Rakhi” will be classifiable under Chapter 71 to 81 (depending on the metal) and attract GST accordingly.
14. The Applicant states that the intention is to supply “Rakhi”, including but not limited to, decorative “Rakhi”, Designer “Rakhi”, & Fancy “Rakhi” and these “Rakhi”s consist of, inter alia, Cotton thread, Zari thread, Silk Thread, Nylon Thread, Glass Beads, Plastic Beads, Coloured Stones, Metal Pendants and Rudraksha. On being asked specifically whether or not the list of materials constituting the “Rakhi”s is a complete list, the Applicant has admitted that the list provided in the Application is not a complete list and while it more or less covers most

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Venkateswaran, Collector of Customs, Bombay vs Ramchand Sobhraj Wadhwani And Another [1983 (13) ELT (1327 (SC)] too, is not relevant to the instant case since “Rakhi” is an independently identifiable item and it is not a case of a general classification gaining precedence over a specific classification.
The judgement in the case of A. Nagaraju Bros vs State of Andhra Pradesh [1994 (72) ELT 801 (SC)] again, is not relevant to the instant case since “Rakhi” is known as such in both, common and commercial parlance and the predominant material that goes into the making of a “Rakhi” varies at the manufacturer's will.
The judgement in the case of Kemrock Industries & Exports Ltd vs Commr of C. Ex, Vadodara [2007 (210) ELT 497 (SC)] held that composite goods are to be classified on the basis of material or component that gives the product its essential character. As has been discussed in the earlier paragraphs the essential character of “Rakhi” though traditionally may be for putting round

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ing the potential care of the sister by the brother, and not merely an assemblage of discrete materials. “Rakhi” cannot be termed as a “handicraft” item under GST under Notification No 32/2017- Central Tax dated 15.09.2017, (later amended as Notification No 38/2017-Central Tax dated 13.10.2017).
It is also seen that “Rakhi” is not purely puja samagri as it is not an essential and integral part of any Puja or Religious Ceremony to pay obeisance to any Hindu deity, and that “Rakhi” has been historically used to emphasise the bond between Hindus and Muslims. “Rakhi”, therefore, cannot attract NIL rate of duty under Serial No 92(1) of the TRU Clarification, nor can it be considered “exempt” in terms of Serial no. 148 of the Exemption Notification since it is not listed therein.
With reference to the list of various materials submitted along with the Application for the “Rakhi”s the Applicant intends to manufacture, though it is stated that the list is not an exhaustive one, and also with

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o GST accordingly.
17. The case laws referred to by the Applicant have been considered carefully. It is seen that “Rakhi” is an independently identifiable product and is also known to be so in common and commercial parlance. The multifarious constituents that go into the making of the “Rakhi” cannot be considered as accessories; the material which provides the essential character to “Rakhi” is varied and the buyer may also be motivated to purchase the same as much for its for its designer/decorative/fancy part, as for its symbolic characteristic of a bond of protection. In view of the foregoing we rule as under
RULING
The Applicant has to classify the goods “Rakhi” as per its constituent materials in accordance with Rule 3(c) of Rules for Interpretation of the Customs Tariff Act, 1975, as laid down in Explanatory Notes (iv) of Notification No 1/2017-CT(Rate) dated 28.06.2017 (Note (v) of 1125 – FT dated 28/06/2017 of State Tax).
Rakhi will attract GST in accordance to its classific

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CGST, C.E. & C.C. -C. C.E. & S.T. -Indore Versus M/s Diabetes Thyroid Hormone Research Institute Pvt. Ltd.

CGST, C.E. & C.C. -C. C.E. & S.T. -Indore Versus M/s Diabetes Thyroid Hormone Research Institute Pvt. Ltd.
Service Tax
2018 (7) TMI 275 – CESTAT NEW DELHI – 2019 (24) G. S. T. L. 560 (Tri. – Del.)
CESTAT NEW DELHI – AT
Dated:- 5-7-2018
Appeal No. ST/CROSS/52047/2015 in ST/52448/2015-CU[DB] – Final Order No. 52429/2018
Service Tax
Hon'ble Mr. V. Padmanabhan, Member ( Technical ) And Hon'ble Ms. Rachna Gupta, Member ( Judicial )
Shri Sanjay Jain, DR for the Appellant
Shri Somesh Arora, Advocate for the Respondent
ORDER
Per Rachna Gupta
The present appeal originates from the Order of Original Adjudicating Authority No. 04-05/COMMR/IND/ST/2015 dated 16.02.2015. The relevant factual matrix is that M/s Diabetes Thyroid Hormone Research Institute Pvt. Ltd. (DTHR) is performing clinical trial to new drugs for various manufacturing companies (sponsors). The said activity was opined to be covered under the category of technical testing and analysis services as defined u

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on, the respondent was obtaining benefit of exemption, is actually not applicable to the respondent, it not being a Clinical Research Organization (CRO), irrespective the activity of clinical trial as done by respondent is the one for technical testing and analysis services as mentioned in Section 65(106) of Finance Act, 1944. It is impressed upon that even the adjudicating authority has concluded the activity of the respondent to be the one under Section 65(106) of the Act. The benefit of both the Notifications is alleged to have wrongly been given to the respondent. It is further impressed upon by Appellant/Department that clinical practice guidelines as formulated by Drug Controller General of India are to be strictly followed and according to those guidelines, any person, company or an organization who want to get any new drug molecule clinically examined and tested is the sponsor who has to apply in prescribed format with the Drug Controller General of India in a prescribed format

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ing of clinical research to any site, duly approved for the purpose. The approval comes from the Drug Controller only in favour of anyone who is conducting trial, because without the said approval, even the trial sites and the investigators cannot conduct the test. Hence such approved trial sites, when conduct such clinical testings, they are no less than a CRO and as such, are entitled for the exemption under the above said Notifications. Otherwise also, the appellants are the Contract Research Organisations, duly approved. The adjudicating authority has considered all the aspects rightly thereby leaving no infirmity in the order. Accordingly, the appeal is prayed to be rejected.
5. We have heard both the parties and perused the records. Our considered opinion is as follows:
(i) Since it is an admitted fact that the respondents are conducting clinical analysis as can be categorised as technical testing and analysis under Section 65(106) of the Act which is liable to Service Tax und

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separately. This perusal makes it clear that CRO, trial site, sponsor and investigators are the distinct entities. It is mandatory for even the trial site to obtain an approval from a Drug Controller of India in case of conducting such clinical trials as a question.
(iii) The adjudicating authority, while appreciating the set guidelines, has observed that clinical research organization is a social unit of people like sponsor, principal investigator, investigator, volunteers, trial sites, data analyst, etc., which is meant to pursue a goal with different assigned roles, responsibilities and authority to carry our different tasks when all these are acquired together having sole objective to carry out clinical research. It has also been emphasized by the adjudicating authority itself that it is only in its collective form that the Clinical Research Organisation comes into existence. Thus, findings in the order under challenge itself are very much differentiating a CRO than from a trial

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RCM ON SPONSORSHIP

RCM ON SPONSORSHIP
Query (Issue) Started By: – KVRAVI RANGARAAJAN Dated:- 4-7-2018 Last Reply Date:- 5-7-2018 Goods and Services Tax – GST
Got 8 Replies
GST
IS SPONSORSHIP BY A CORPORATE FOR A PARTICULAR EVENT, TO THE EVENT MANAGEMENT ORGANIZATION (SAY, A SOCIETY OR TRUST REGISTERED UNDER GST) IS ELIGIBLE FOR RCM ?
Reply By KASTURI SETHI:
The Reply:
Notification No.13/17-C.T.(Rate) dated 28.6.17
Sl.
No.
Category of Supply of Services
Supplier of service
Recipient of Service
4
Services provided by way of sponsorship to any body corporate or partnership firm.
Any
person
Any body corporate or partnership firm located in the taxable territory.
Reply By YAGAY and SUN:
The Reply:
We do endorse the view of Kasturi Sir.

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INVOICE AGAINST DELIVERY CHALLAN

INVOICE AGAINST DELIVERY CHALLAN
Query (Issue) Started By: – SAFETAB LIFESCIENCE Dated:- 4-7-2018 Last Reply Date:- 5-7-2018 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Experts,
Under GST act, issuing one single invoice for the goods the despatched vide more than one Delivery challans is permitted.
Reply By YAGAY and SUN:
The Reply:
Single Invoice against delivery challan would cover the delivery challan issued with in a month only.
Reply By Ganeshan Kalyani:
The Reply:

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Marine Vessel Parts Taxed at 5% IGST: Includes 2.5% SGST and 2.5% CGST for Propellers, Shafts, and Rudders.

Marine Vessel Parts Taxed at 5% IGST: Includes 2.5% SGST and 2.5% CGST for Propellers, Shafts, and Rudders.
Case-Laws
GST
Rate of tax – nature of use – marine propeller, rudder set, stern tub

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GST @ ONE YEAR

GST @ ONE YEAR
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 4-7-2018

Goods and Services Tax was launched on the 1st July, 2017 in a majestic ceremony held in the Central Hall of Parliament on the midnight of 30th June, 2017. The first year has been remarkable both for the sheer variety of challenges that implementation of GST has thrown up and for the willingness and ability of policy makers and tax administrators to rise up to these challenges and respond befittingly. But more importantly, the first year of GST has been an example to the world of the readiness of the Indian taxpayer to be a partner in this unprecedented reform of Indian taxation. Accordingly, it was decided by CBIC that the 1st of July, 2018 shall be commemorated as “GST Day”.
Before implementation of Goods and Service Tax (GST), Indian taxation system was a mix of central, state and local area levies. In the constitutional scheme, taxation power on goods was with Central Government

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e up from ₹ 81 lakh crore to ₹ 91.38 lakh crore in GST regime. GST has improved tax revenue as well as tax compliance. Not only this, GST has been helpful in increasing income tax returns and direct tax revenue as well.
Collection of GST revenue w.e.f 01.07.2017-30.06.2018
Tax for the Month
Revenue (crores)
July, 2017
₹ 93,590/-
August, 2017
₹ 93,029/-
September, 2017
₹ 95,132/-
October, 2017
₹ 85,931/-
November, 2017
₹ 83,716/-
December,2017
₹ 88,929/-
January,2018
₹ 88,047/-
Febuary,2018
₹ 89,264/-
March, 2018
Rs.1,03,000/-
April, 2018
₹ 94,016/-
May, 2018
₹ 95,610/-
June, 2018
Collection figures NA as not due
Journey in numbers so far
Number of Taxes (CGST/IGST/SGST/UTGST)
4
Number of cess
1
New registration approved
47,94,828
Number of migrated taxpayers
63,76,767
Number of notifications issued
334
Number of circulars issued
53
Number of press release issued
170
Number

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ve as a efficient tax system in future. In the give set of Circumstances, GST will continue to be simplified, rationalized and improved upon.
After one year now, simplification of GST returns is being worked out and it is hoped that by this year end, we may have simplified as well as single GST return forms. Also, Government is expected to make change in the GST law which are essential for tax payer's facilitation.
High tax on items which do not yield much revenue may be lowered. Presently more of tax is coming from handful of items and bulk of items yield a lower tax revenue. GST slab rates can also come down to three (presently four – 5, 12, 18 and 28 percent).
GST Council meeting is expected to meet for 28th time in last one year on 21 July, 2018. While it is expected that GST procedures and implementation concerns are going to be simplified in next one year in the wake up of general elections in few states and Lok Sabha election in May, 2019, GST Council may dwell upon reduction

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Whether all supplies to SEZ Unit/ Developer are zero rated supply?

Whether all supplies to SEZ Unit/ Developer are zero rated supply?
By: – Bimal jain
Goods and Services Tax – GST
Dated:- 4-7-2018

Supplies to SEZ unit/ Developer are Zero-rated Supply:
In terms of Section 16 of the IGST Act, 2017, the following supplies of goods or services are considered as zero-rated supply. (Relevant provision of Section 16 is reproduced here in below):
16. (1) “zero rated supply” means any of the following supplies of goods or services or both, namely:-
* export of goods or services or both; or
* supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.
(3) A registered person making zero rated supply shall be eligible to claim refund under either of the following opt

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tside India;
(b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or
(c) in the taxable territory, not being an intra-State supply and not covered elsewhere in this section,
shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.
Contrary Judgment by the Advance Ruling:
Recently an advance ruling was given by Karnataka bench of Advance ruling authority (“the AR”) in the case of M/s GOGTE INFRASTRUCTURE DEVELOPMENT CORPORATION LIMITED; KAR ADRG 02/2018 dated March 21, 2018, pertaining to the following question:
“Whether the Hotel Accommodation & Restaurant services provided by them, within the premises of the Hotel, to the employees & guests of SEZ units, be treated as supply of goods & services to SEZ units in Karnataka or not?”
Facts of the case:
The authorized representative during the personal hearing proceedings pleaded that applicant is a public limited company; they are into hotel business pro

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ial Economic Zone unit are treated as „Zero Rated Supply‟ in terms of Section 16(1)(b) of IGST Act‟ 2017.
Rule 46 of CGST Rules 2017 stipulates that the invoice shall carry an endorsement “Supply meant for export / Supply to SEZ unit or SEZ Developer for authorized operations on payment of Integrated Tax” or “Supply meant for Export / Supply to SEZ unit or SEZ Developer for authorized operations under Bond or Letter of Undertaking without payment of Integrated Tax” as the case may be.
It is clearly evident that the supplies of goods or services or both towards the authorized operations only shall be treated as Supplies to SEZ Developer / SEZ Unit.
The place of supply of the services by way of lodging accommodation by a hotel, shall be the location at which the immovable property (hotel) is located or intended to be located, as per Section 12 (3)(b) of the Integrated Goods and Services Tax Act, 2017.
The place of supply of restaurant and catering services shall be

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SEZ unit.
Section 16(3) of the IGST Act provides for refund to a registered person making zero rated supplies.
As per the second proviso to Rule 89(1) of the CGST Rules 2017, the application for refund shall be filed by :
(a) supplier of goods after such goods have been admitted in full in the SEZ for authorized operations, as endorsed by the specified officer of the Zone;
(b) supplier of services along with such evidences regarding receipt of services for authorized operations as endorsed by the specified officer of the Zone.
A conjoint reading of the stated provisions reveals that supplies to SEZ developer or SEZ unit shall be zero rated & supplier shall be eligible for refund of unutilized ITC or IGST paid, as case may be, only if such supplies have been received by SEZ developer/unit for “authorized operations”.
As per SEZ Act 2005, “authorized operations” means operations which may be authorized under sub‑section (2) of section 4 and sub‑section (9) of section 1

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Duty Drawback for supplies made by DTA units to Special Economic Zones in the GST scenario

Duty Drawback for supplies made by DTA units to Special Economic Zones in the GST scenario
12/2017 Dated:- 4-7-2018 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF CUSTOMS,
CITY CUSTOMS COMMISSIONERATE, P.B No, 5400, C.R.BUILDING, QUEEN'S ROAD, BENGALURU 560 001
C.NO. Vll1/09/08/2017 City Cus Tech PN
Date: 04.07.2017
PUBLIC NOTICE No. 12/2017
Subject: Duty Drawback for supplies made by DTA units to Special Economic Zones in the GST scenario- reg.
Attention of all Customs Brokers, Exporters, Importers, Members of the Trade and other stake holders is invited to Board's Circular No. 43/2007-Customs dated 5.12.2007 and Circular No. 39/2010-Customs dated 15.10.2010 which inter alia prescribe that in respect of drawback

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e office of Principal Commissioner or Commissioner of Customs/ Customs (Preventive) in whose jurisdiction the DTA Unit falls. Further, the fixation of Brand rate in case of supplies from DTA to SEZ Unit or developer, if required, shall also be done by the office of said Principal Commissioner/ Commissioner. This shall apply to all fresh applications/ claims filed from 1.7.2017 onwards.
3. The applications/ claims which have already been filed up to 30.6.2017 and are pending with jurisdictional Central Excise formations shall be transferred to the Principal Commissioner/ Commissioner of Customs/ Customs (Preventive) having jurisdiction over the DTA supplier. For smooth transition of above cited work to Customs formations, it is essential th

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In Re: KPH Dream Cricket Pvt. Ltd.

In Re: KPH Dream Cricket Pvt. Ltd.
GST
2018 (9) TMI 695 – AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – TMI
AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH – AAR
Dated:- 4-7-2018
05/2018/AAR/R-28-25
GST
RAJIV AGRAWAL AND MANOJ KUMAR CHOUBEY MEMBER
Present on behalf of applicant: Shri Praveen Kashyap, Advocate & Shri L.C. Gupta, CFO of the applicant
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act 2017 and Madhya Pradesh Goods and Services Tax Act,2017)
1. BRIEF FACTS OF THE CASE:
1.1. M/s. KPH Dream Cricket P.Ltd. (hereinafter referred to as 'the Applicant'), having its registered office at S-15/16, Central Mall, Industrial Area Phase-I, Chandigarh-160002, is a franchisee of the Board of Con

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stions as detailed hereunder:
2. QUESTIONS RAISED BEFORE THE AUTHORITY:
The following questions have been posed before the Authority, with reference to the activity undertaken by the Applicant:
2.1. Whether free tickets given as “Complimentary tickets” falls within the definition of supply under the CGST Act 2017 and thus whether the Applicant is required to pay GST on such free tickets?;
2.2. Whether the Applicant is eligible to claim Input Tax Credit (for short ITC) in respect of complimentary tickets?
3. RECORD OF PERSONAL HEARING:
3.1. Shri Praveen Kashyap, Advocate and Shri L.C.Gupta, CFO of the Applicant appeared on behalf of the applicants for personal hearing on 11.05.18 and reiterated the submissions already made in the a

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issions made by the applicant in the application. We have also taken a note of the letter dtd.29.06.2018 of the applicant, where under they have sought withdrawal of their instant application.
4.2 Though the questions raised in the application need a detailed discussion in view of the prevailing law, since the Applicant have sought withdrawal of application on their own volition, we do not think either appropriate or incumbent upon us to delve into the matter at length. However, it would be worth mentioning here that the Authority does not express any opinion on the submissions made by the Applicant in support of their contention of the issue at hand. We are inclined to allow withdrawal of application without going into the merits of the c

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Sakeel Versus State Tax Officer,

Sakeel Versus State Tax Officer,
GST
2018 (9) TMI 609 – RAJASTHAN HIGH COURT – 2018 (19) G. S. T. L. 419 (Raj.)
RAJASTHAN HIGH COURT – HC
Dated:- 4-7-2018
S. B. Civil Writs No. 13485/2018
GST
MR. SANJEEV PRAKASH SHARMA J.
For Petitioner(s) : Mr. Alkesh Sharma, Adv. With Mr. Sarvesh Jain, Adv.
For Respondent(s) : Mr. RB Mathur, Adv. with Ms. Tanvi Sahai, Adv.
Judgment / Order
1. It is stated by learned counsel for the petitioner that show cause notice was issued to the petitioner in terms of Section 129 of the Rajasthan Goods and Service Tax, 2017. However, while the petitioner submitted detailed representation pointing out that the goods and the bag containing the receipts had been stolen, without taking into consideration the averments made in the representation, the respondents have proceeded to pass order under Section 130 mentioning therein that the petitioner has neither appeared nor submitted any objection although the objections are already on record.

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ayable on such goods and, in case of exempted goods, on payment of an amount equal to two per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such tax and penalty;
(b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent. of the value of goods or twenty-five thousand rupees, whichever is less, where the owner of the goods does not come forward for payment of such tax and penalty;
(c) upon furnishing a security equivalent to the amount payable under clause (a) or clause (b) in such form and manner as may be prescribed:
Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods.
(2) The provisions of sub-section (6) of section 67 shall,

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eciate in value with passage of time, the said period of seven days may be reduced by the proper officer.”
4. On reading the aforesaid provision, it is apparent that while the power exists with the respondents to take action under Section 129(3) of the Act and thereafter to proceed under Section 130 of the Act, before taking any such decision, the concerned person has to be given an opportunity of being heard which inherently means that the submissions which the concerned person may take up while filing his objections have to be examined and a speaking order has to be passed giving out reasons for not accepting the objections. It is to be noted that once such an order has been passed, it can be challenged by the aggrieved person by filing an appeal under Section 107 of the Act. 5. However, in the present case, this Court finds that the requirement of Section 129 (4) & (5) of the Act has not been followed and the concerned authority has failed to take notice of the objections and it ca

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ed are perishable and are lying with the respondents since May, 2015. The petitioner is ready to security/bank guarantee/security bond in lieu of the goods.
9. Learned counsel for the respondents submits that it would be very difficult to get the amount recovered if the security bond is allowed to be accepted and the truck and goods can be released on submission of bank guarantee.
10. Taking into consideration the prayer made above, this Court finds that Rule 140 of the Central Goods and Service Tax Rules, 2017 provides as under:-
“140. (1) The seized goods may be released on a provisional basis upon execution of a bond for the value of the goods in FORM GST INS-04 and furnishing of a security in the form of a bank guarantee equivalent to the amount of applicable tax, interest and penalty payable.
Explanation.- For the purposes of the rules under the provisions of this Chapter, the “applicable tax” shall include central tax and State tax or central tax and the Union territory tax,

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GST Chargeability

GST Chargeability
Query (Issue) Started By: – Yogesh Khetrapal Dated:- 3-7-2018 Last Reply Date:- 5-7-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Mr. A (registered dealer) moves on a project on behalf of Company ABC Ltd., received Hotel Bill in the name of ABC Ltd. and claim reimbursement of the same in addition to very nominal amount against D.A.
Whether Mr. A can show receipts as Pure Agent?
Whether Hotel Bill can be taken aside from GST Chargeability?
Whether it makes any difference if Mr. A is running his own Co. XYZ Ltd. and raise the Invoice for professional Services on ABC Ltd. in addition to the reimbursements against Hotel and D.A. and receives the fund in the name of XYZ Ltd.
Please also advice TDS implica

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the fund in the name of XYZ Ltd.
Please also advice TDS implications to be taken care through ABC Ltd.
With Thanks & Regards,
Reply By DR.MARIAPPAN GOVINDARAJAN:
The Reply:
Your case is still more be elaborated.
There are two occasions.
1. A undergoes a project on behalf of ABC Limited. What is the consideration? Whether the TA bill is received from the employee who is working under the control of A?
2. A raises the invoice for professional services on ABC in his own company XYZ Limited. In this case the TA bill is raised by the employee of XYZ limited. In my opinion the professional charges including DA are liable for valuation under GST laws and liable for tax.
In the second case ABC is to recover TDS as per income tax provisions

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GST – Concept & Status (01-07-2018)

GST – Concept & Status (01-07-2018)
GST
Dated:- 3-7-2018

GOODS AND SERVICE TAX (GST):
CONCEPT & STATUS
 
CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS (CBIC)
DEPARTMENT OF REVENUE
MINISTRY OF FINANCE
GOVERNMENT OF INDIA
AS ON 1st JULY, 2018
The uniform system of taxation, which, with a few exceptions of no great consequence, takes place in all the different parts of the United Kingdom of Great Britain, leaves the interior commerce of the country, the inland and coasting trade, almost entirely free. The inland trade is almost perfectly free, and the greater part of goods may be carried from one end of the kingdom to the other, without requiring any permit or let-pass, without being subject to question, visit, or examination from the revenue officers. ……This freedom of interior commerce, the effect of uniformity of the system of taxation, is perhaps one of the principal causes of the prosperity of Great Britain; every great country being necessarily the best

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IA BEFORE GST :
2.1 Article 265 of the Constitution of India provides that no tax shall be levied or collected except by authority of law. As per Article 246 of the Constitution, Parliament has exclusive powers to make laws in respect of matters given in Union List (List I of the Seventh Schedule) and State Government has the exclusive jurisdiction to legislate on the matters containing in State List (List II of the Seventh Schedule). In respect of the matters contained in Concurrent List (List III of the Seventh Schedule), both the Central Government and State Governments have concurrent powers to legislate.
2.2 Before advent of GST, the most important sources of indirect tax revenue for the Union were customs duty (entry 83 of Union List), central excise duty (entry 84 of Union List), and service tax (entry 97 of Union List). Although entry 92C was inserted in the Union List of the Seventh Schedule of the Constitution by the Constitution (Eighty-eighth Amendment) Act, 2003 for levy

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ON OF INDIRECT TAXATION IN POST-INDEPENDENCE INDIA TILL GST:
3.1 In post-Independence period, central excise duty was levied on a few commodities which were in the nature of raw materials and intermediate inputs, and consumer goods were outside the net by and large. The first set of reform was suggested by the Taxation Enquiry Commission (1953-54) under the chairmanship of Dr. John Matthai. The Commission recommended that sales tax should be used specifically by the States as a source of revenue with Union governments' intervention allowed generally only in case of inter-State sales. It also recommended levy of a tax on inter-State sales subject to a ceiling of 1%, which the States would administer and also retain the revenue.
3.2 The power to levy tax on sale and purchase of goods in the course of inter-State trade and commerce was assigned to the Union by the Constitution (Sixth Amendment) Act, 1956. By mid-1970s, central excise duty was extended to most manufactured goods. Cen

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n indirect tax sphere came with the New Economic Policy of 1991. The Tax Reforms Committee under the chairmanship of Prof. Raja J Chelliah was appointed in 1991. This Committee recommended broadening of the tax base by taxing services and pruning exemptions, consolidation and lowering of rates, extension of MODVAT on all inputs including capital goods. It suggested that reform of tax structure must have to be accompanied by a reform of tax administration, if complete benefits were to be derived from the tax reforms. Many of the recommendations of the Chelliah Committee were implemented. In 1999-2000, tax rates were merged in three rates, with additional rates on a few luxury goods. In 2000-01, three rates were merged into one rate called Central Value Added Tax (CENVAT). A few commodities were subjected to special excise duty.
3.5 Taxation of services by the Union was introduced in 1994 bringing in its ambit only three services, namely general insurance, telecommunication and stock br

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Rates of sales tax were more than ten in some States and these varied for the same commodity in different States. Inter-state sales were subjected to levy of Central Sales Tax. As this tax was appropriated by the exporting State credit was not allowed by the dealer in the importing State. This resulted into exportation of tax from richer to poorer states and also cascading of taxes. Interestingly, States had power of taxation over services from the very beginning. States levied tax on advertisements, luxuries, entertainments, amusements, betting and gambling.
3.7 A report, titled “Reform of Domestic Trade Taxes in India”, on reforming indirect taxes, especially State sales tax, by National Institute of Public Finance and Policy under the leadership of Dr. Amaresh Bagchi, was prepared in 1994. This Report prepared the ground for implementation of VAT in States. Some of the key recommendations were; replacing sales tax by VAT by moving over to a multistage system of taxation; allowing i

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EC). Haryana was the first State to implement VAT, in 2003. In 2005, VAT was implemented in most of the states. Uttar Pradesh was the last State to implement VAT, from 1st January, 2008.
INTERNATIONAL PERSPECTIVES ON GST / VAT:
4.1 VAT and GST are used inter-changeably as the latter denotes comprehensiveness of VAT by coverage of goods and services. France was the first country to implement VAT, in 1954. Presently, more than 160 countries have implemented GST / VAT in some form or the other. The most popular form of VAT is where taxes paid on inputs are allowed to be adjusted in the liability at the output. The VAT or GST regime in practice varies from one country to another in terms of its technical aspects like 'definition of supply', 'extent of coverage of goods and services', 'treatment of exemptions and zero rating' etc. However, at a broader level, it has one common principle, it is a destination based consumption tax. From economic point of view, VAT is considered to be a supe

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Provinces which administer their taxes separately are called 'non- participating provinces', whereas provinces which have teamed up with the Federal Government for tax administration are called 'participating provinces'.
4.3 The rate of GST varies across countries. While Malaysia has a lower rate of 6% (Malaysia though scrapped GST in 2018 due to popular uproar against it), Hungary has one of the highest rate of 27%. Australia levies GST at the rate of 10% whereas Canada has multiple rate slabs. The average rate of VAT across the EU is around 19.5%.
NEED FOR GST IN INDIA:
5.1 The introduction of CENVAT removed to a great extent cascading burden by expanding the coverage of credit for all inputs, including capital goods. CENVAT scheme later also allowed credit of services and the basket of inputs, capital goods and input services could be used for payment of both central excise duty and service tax. Similarly, the introduction of VAT in the States has removed the cascading effect by

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crue to the jurisdiction where consumption takes place. Despite remarkable harmonization in VAT regimes under the auspices of the EC, the national market was fragmented with too many obstacles in free movement of goods necessitated by procedural requirement under VAT and CST.
5.4 In the constitutional scheme, taxation powers on goods was with Central Government but it was limited upto the stage of manufacture and production while States have powers to tax sale and purchase of goods. Centre had powers to tax services and States also had powers to tax certain services specified in clause (29A) of Article 366 of the Constitution. This sort of division of taxing powers created a grey zone which led to legal disputes. Determination of what constitutes a goods or service is difficult because in modern complex system of production, a product is normally a mixture of goods and services.
5.5 As can be seen from the previous paragraphs, India moved towards value added taxation both at Central

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ect from April 1, 2010 and that the EC, on his request, would work with the Central Government to prepare a road map for introduction of GST in India. After this announcement, the EC decided to set up a Joint Working Group in May 10, 2007, with the then Adviser to the Union Finance Minister and Member-Secretary of the Empowered Committee as its Co-conveners and four Joint Secretaries of the Department of Revenue of Union Finance Ministry and all Finance Secretaries of the States as its members. This Joint Working Group got itself divided into three Sub-Groups and had several rounds of internal discussions as well as interaction with experts and representatives of Chambers of Commerce & Industry. On the basis of these discussions and interaction, the Sub-Groups submitted their reports which were then integrated and consolidated into the report of Joint Working Group (November 19, 2007).
6.3 This report was discussed in detail in the meeting of the EC on November 28, 2007, and the State

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d between the EC and the Central Government, the EC released its First Discussion Paper (FDP) on GST in November, 2009. This spelled out the features of the proposed GST and has formed the basis for discussion between the Centre and the States.
CHALLENGES IN DESIGNING GST:
7.1 In the discussion that preceded amendment in the Constitution for GST, there were a number of thorny issues that required resolution and agreement between Central Government and State Governments. Implementing a tax reform as vast as GST in a diverse country like India required the reconciliation of interests of various States with that of the Centre. Some of the challenging issues, addressed in the run up to GST, were the following:
7.2 Origin-based versus Destination-based taxation: GST is a destination based consumption tax. Under destination based taxation, tax accrues to the destination place where consumption of the goods or services takes place. The existing VAT regime was based on origin principle wher

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isdiction. Spending of this income on consumer goods expands the sales tax base of the producing states and thereby contributes to their revenues. In fact, to the extent that consumer expenditures are dependent on the level of income of the residents of a State, it is the producing States that stand to gain the most in additional sales tax revenues (even under the destination basis of consumption taxes) from increased export output.
7.3 Rate Structure and Compensation: There was uncertainty about gains in revenue after implementation of GST. Though attempts were made to estimate a revenue neutral rate, nonetheless it remains an estimate only. It was difficult to estimate accurately as to how much the States will gain from tax on services and how much they will lose on account of removal of cascading effect and phasing out of CST. In view of this, States asked for compensation during the first five years of implementation of GST.
7.3.1 A Committee headed by the Chief Economic Adviser

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armonized system of taxation necessarily required that all stakeholders stick to the decisions taken by the supreme body, which was later constituted as the Goods and Services Tax Council (the Council). However, the possibility of departure from the recommendations of such body cannot be completely ruled out. Any departure would definitely affect other stakeholders and in such circumstances there must be a statutory body to which affected parties may approach for dispute resolution. The nature of such dispute resolution body was a bone of contention. Under the Constitution (One Hundred Fifteenth Amendment) Bill, 2011, a Goods and Services Tax Dispute Settlement Authority was to be constituted for this purpose. This body was judicial in nature. The proposed constitution of this Authority was challenged because it's powers would override the supremacy of the Parliament and the State Legislatures. The Constitution (One Hundred Twenty Second Amendment) Bill, 2014 departed from the previous

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power to tax tobacco and tobacco products, though these are also under GST. Thus, to ensure smooth transition and provide fiscal buffer to States, it was agreed to keep alcohol completely out of the ambit of GST.
CONSTITUTIONAL AMENDMENT:
8.1 As explained above, unification of Central VAT and State VAT was possible in form of a dual levy under the constitutional scheme. Power of taxation is assigned to either Union or States subject-wise under Schedule VII of the Constitution. While the Centre is empowered to tax goods upto the production or manufacturing stage, the States have the power to tax goods at distribution stage. The Union can tax services using residuary powers but States could not. Under a unified Goods and Services Tax scheme, both should have power to tax the complete supply chain from production to distribution, and both goods and services. The scheme of the Constitution did not provide for any concurrent taxing powers to the Union as well as the States and for the pu

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uly, 2015. The Bill with certain amendments was finally passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. Further the bill was ratified by required number of States and received assent of the President on 8th September, 2016 and has since been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16th September, 2016.
8.4 The important changes introduced in the Constitution by the 101st Amendment Act are the following:
* Insertion of new article 246A which makes enabling provisions for the Union and States with respect to the GST legislation. It further specifies that Parliament has exclusive power to make laws with respect to GST on inter-State supplies.
* Article 268A of the Constitution has been omitted. The said article empowered the Government of India to levy taxes on services. As tax on services has been brought under GST, such a provision was no longer required.
* Article 269A has been inserted which provides for goods and services tax on suppli

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xclude alcoholic liquor for human consumption from the ambit of GST, and services have been defined.
* Article 368 has been amended to provide for a special procedure which requires the ratification of the Bill by the legislatures of not less than one half of the States in addition to the method of voting provided for amendment of the Constitution. Thus, any modification in GST Council shall also require the ratification by the legislatures of one half of the States.
* Entries in List I and List II have been either substituted or omitted to restrict power to tax goods or services specified in these Lists or to take away powers to tax goods and services which have been subsumed in GST.
* Parliament shall, by law, on the recommendation of the Goods and Services Tax Council, provide for compensation to the States for loss of revenue arising on account of implementation of the goods and services tax for five years.
* In case of petroleum and petroleum products, it has been provided

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may be exempted from GST;
* the rates including floor rates with bands of GST;
* any special rate or rates for a specified period to raise additional resources during any natural calamity or disaster;
* special provision with respect to the North- East States, J&K, Himachal Pradesh and Uttarakhand; and
* any other matter relating to the GST, as the Council may decide.
9.2 The Council shall recommend the date on which the goods and services tax be levied on petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel. While discharging the functions conferred by this article, the Goods and Services Tax Council shall be guided by the need for a harmonized structure of goods and services tax and for the development of a harmonized national market for goods and services.
9.3 One half of the total number of Members of the Goods and Services Tax Council shall constitute the quorum at its meetings. The Goods and Services Tax Cou

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e 23rd meeting of the Council, this limit shall be raised to Rs. 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 Rs. 75 lakh.
(iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST. Further, 50% exemption of the CGST portion will be provided to CSD (Defense Canteens).
(iv) Recommending GST laws, namely CGST Law, UTGST Law, IGST Law, SGST Law and GST Compensation Law paving the way for implementation of GST.
(v) In order to ensure single interface, all administrative control over 90% of taxpayers having turnover below Rs.

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of taxpayers shall be exempted from obtaining registration:
* Suppliers of services, having turnover upto Rs. 20 lakhs, making inter State supplies;
* Suppliers of services, having turnover upto Rs. 20 lakhs, making supplies through e-commerce platforms.
(xi) The reverse charge mechanism under sub-section (4) of section 9 of the CGST Act, 2017 and under sub-section (4) of section 5 of the IGST Act, 2017 has been suspended till 30.09.2018.
(xii) There shall be no requirement on payment of tax on advance received for supply of goods by all taxpayers.
(xiii) Supply from GTA to unregistered persons has been exempted from tax.
(xiv) Registration and operationalization of TDS/TCS provisions has been postponed till 30.09.2018.
(xv) 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.
(xvi) All taxpayers are required to file return FORM GSTR-3B & pay tax on monthly basis.
(xvii) Taxp

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ation.
(xxii) Supply of services to Nepal and Bhutan shall be exempted from GST even if payment has not been received in foreign convertible currency – such suppliers shall be eligible for input tax credit.
(xxiii) Centralized UIN shall be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government.
(xxiv) Rate of interest on delayed payments and delayed refund has been recommended.
THE DESIGN OF INDIAN GST:
10.1 Concurrent dual model of GST: India has adopted dual GST model because of its unique federal nature. Under this model, tax is levied concurrently by the Centre as well as the States on a common base, i.e. supply of goods or services or both. GST to be levied by the Centre would be called Central GST (Central tax / CGST) and that to be levied by the States would be called State GST (State Tax / SGST). State GST (State Tax / SGST) would be called UTGST (Union territory tax) in Union Territories without legislature. CGST & SGST / UTGST shall be lev

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he respective governments to transfer the funds.
The major advantages of IGST Model are:
a) Maintenance of uninterrupted ITC chain on inter-State transactions.
b) No upfront payment of tax or substantial blockage of funds for the inter-State supplier or recipient.
c) No refund claim in exporting State, as ITC is used up while paying the tax.
d) Self-monitoring model.
e) Model takes 'Business to Business' as well as 'Business to Consumer' transactions into account.
10.3 Tax Rates: Owing to unique Indian socio-economic milieu, four rates namely 5%, 12%, 18% and 28% have been adopted. Besides, some goods and services are exempt also. Rate for precious metals is an exception to 'four-tax slab-rule' and the same has been fixed at 3%. In addition, unworked diamonds, precious stones, etc. attracts a rate of 0.25%. A cess over the peak rate of 28% on certain specified luxury and demerit goods, like tobacco and tobacco products, pan masala, aerated water, motor vehicles is imposed to com

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taxes on advertisements, etc. However, any revenue among these taxes arising related to supply of alcohol for human consumption, and five specified petroleum products, will not be accounted as part of the base year revenue. A GST Compensation Cess is levied on the supply of certain goods and services, as recommended by the GST Council to finance the compensation cess.
10.5 E-Way Bill System: The introduction of e-way (electronic way) bill is a monumental shift from the earlier “Departmental Policing Model” to a “Self-Declaration Model”. It envisages one e-way bill for movement of the goods throughout the country, thereby ensuring a hassle free movement for transporters throughout the country. The e-way bill system has been introduced nation-wide for all inter-State movement of goods with effect from 1st April, 2018. As regards intra-State supplies, option was given to States to choose any date on or before 3rd June, 2018. All States have notified e-way bill rules for intra-State supp

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e rate of tax or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices. It can order reduction in prices, imposition of penalty, cancellation of registration and any other decision as may deem fit, after inquiry into the case.
10.7 Concept of Supply: 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. It includes all sorts of activities like manufacture, sale, barter, exchange, transfer etc. It also includes supplies made without consideration when such supplies are made in certain specified situations.
10.8 Threshold Exemption: A common threshold exemption would apply to both CGST and SGST. Taxpayers with an annual turnover of Rs. 20 lakh (Rs. 10 lakh for special category States (except J&K) as specified in article 279A of the Constitution) would be exempt from GST. The benefit of threshold exemption is not availab

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ying SGST or 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 order;
(c) ITC of UTGST allowed for payment of UTGST & IGST in that order;
(d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order.
ITC of CGST cannot be used for payment of SGST/UTGST and vice versa.
10.12 Settlement of Government Accounts: Accounts would be settled periodically between the Centre and the State to ensure that the credit of SGST used for payment of IGST is transferred by the originating State to the Centre. Similarly, the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by th

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g two per cent of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals. The provision for TCS has not been operationalized yet.
10.17 Self-assessment: Self-assessment of the taxes payable by the registered person shall be the norm. Audit of registered persons shall be conducted on selective basis. Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases. Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful mis-statement.
10.18 Recovery of Arrears: Arrears of tax to be recovered using various modes including detain

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dditional Duties of Excise (Textiles and Textile Products), Additional Duties of Customs (commonly known as CVD), Special Additional Duty of Customs (SAD), Service Tax and cesses and surcharges insofar as they related to supply of goods or services were subsumed. As far as taxes levied and collected by States are concerned, State VAT, Central Sales Tax, Purchase Tax, Luxury Tax, Entry Tax, Entertainment Tax (except those levied by the local bodies), Taxes on advertisements, Taxes on lotteries, betting and gambling, cesses and surcharges insofar as they related to supply of goods or services were subsumed.
GST LEGISLATIONS:
11.1 Four Laws namely CGST Act, UTGST Act, IGST Act and GST (Compensation to States) Act were passed by the Parliament and since been notified on 12th April, 2017. All the other States (except J&K) and Union territories with legislature have passed their respective SGST Acts. The economic integration of India was completed on 8th July, 2017 when the State of J&K al

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C:
12.1 CBIC 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 CBIC 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 CBIC 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 re-engineering. The name of IT project of CBIC under GST is 'SAKSHAM' involving a total project value of Rs. 2,256 crores.
12.2 Augmentation of human resources would be necessary to handle large taxpayers' base in GST scattered across the length and breadth of the country. Capacity building, particularly in the field of Accountancy and Information Technology for the departmental officers has to be taken up i

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lementation challenges faced by the taxpayer and act as an active interface between the taxpayer and the Government.
GOODS & SERVICES TAX NETWORK:
13.1 Goods and Services Tax Network (GSTN) has been set up by the Government 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. Infosys has been appointed as Managed Service Provider (MSP). 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. The diagram below shows the work distribution under GST.
13.2 Central Government holds 24.5 percent stake in GSTN while the state government h

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ces and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost.
14.3 Benefits to small traders and entrepreneurs: GST has increased the threshold for GST registration for small businesses. Those units having aggregate annual turnover more than Rs. 20 lakhs (10 lakhs in case of North Eastern States) have be registered under GST. Unlike multiple registrations under different tax regimes earlier, a single registration is needed under GST in one State. An additional benefit under Composition scheme has also been provided for businesses with aggregate annual turnover upto Rs. 75 lakhs. With the creation of a seamless national market across the country, small enterprises will have an opportunity to

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en of tax on goods would, in general, fall under GST and that would benefit the consumers.
14.6 Promote “Make in India”: GST will help to create a unified common national market for India, giving a boost to foreign investment and “Make in India” campaign. It will prevent cascading of taxes and make products cheaper, thus boosting aggregate demand. It will result in harmonization of laws, procedures and rates of tax. It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth. Ultimately it will help in poverty eradication by generating more employment and more financial resources. More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports. It will also improve the overall investment climate in the country which will naturally benefit the development in the states. Uniform CGST & S

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portal, therefore, less public interface between the taxpayer and the tax administration. It will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions. Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods and services will lend greater certainty to taxation system.
EXPERIENCE OF REGISTRATION & RETURN FILING:
15.1 Registration & Returns Snapshot:
S. No.
Details
As on 1st July, 2018
1.
No. of transited (migrated) taxpayers
66,17,573
2.
Total No. of new applications received for registration
55,22,786
3.
No. of applications approved
47,95,045
4.
No. of applications rejected
6,80,241
5.
Total No. of taxpayers; new + migrated (1 + 3)
1,14,12,618
6.
No. of taxpayers who have opted for composition scheme
17,66,517
7.
No. of 3 (B) returns filed for July, 2017
64,47,614

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1 returns filed for January, 2018
22,65,978
25.
No. of GSTR 1 returns filed for February, 2018
22,10,827
26.
No. of GSTR 1 returns filed for March, 2018
56,73,321
27.
No. of GSTR 1 returns filed for April, 2018
20,32,081
28.
No. of GSTR 1 returns filed for May, 2018
18,34,250
29.
No. of GSTR 2 returns filed for July, 2017
25,72,552
30.
No. of GSTR 4 returns filed for quarter July-September, 2017
9,45,718
31.
No. of GSTR 4 returns filed for quarter October-December, 2017
13,96,721
32.
No. of GSTR 4 returns filed for quarter January-March, 2018
13,60,204
CHALLENGES & FUTURE AHEAD:
16.1 Any new change is accompanied by difficulties and problems at the outset. A change as comprehensive as GST is bound to pose certain challenges not only for the government but also for business community, tax administration and even common citizens of the country. Some of these challenges relate to the unfamiliarity with the new regime and IT systems, legal challenges, return fil

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CBIC and States in this regard. The government has put in place an IT grievance redressal mechanism to address the difficulties faced by taxpayers owing to technical glitches on the GST portal.
16.3 The introduction of GST is truly a game changer for Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime. It will integrate India into a single, common market by breaking barriers to inter-State trade and commerce. By eliminating cascading of taxes and reducing transaction costs, it will enhance ease of doing business in the country and provide an impetus to “Make in India” campaign. GST will result in “ONE NATION, ONE TAX, ONE MARKET”.
*****
Note: This write-up is for education purposes only
=============
Document 1
Harmonization of Business
Processes and Formats
Common & Shared
IT
IT Infrastructure
Interfaces
Core Services
–
Registration
Returns
Payments
Helpdesk support
Information on

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Tripartite agreement on dairying development clarifies transactions aren't between related parties; Schedule-1 GST Act provisions not applicable.

Tripartite agreement on dairying development clarifies transactions aren't between related parties; Schedule-1 GST Act provisions not applicable.
Case-Laws
GST
Tripartite Agreement – scope of supply – developing dairying in the respective states – the supply cannot be treated as between the related parties. – Provisions of Schedule-1 of GST Act, relating to free supply (without consideration) to related party does not attract.
TMI Updates – Highlights, quick notes, marquee, annotati

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Cryo Containers Classified Under Heading 9617 for GST: “Vacuum Flask and Other Vacuum Vessels.

Cryo Containers Classified Under Heading 9617 for GST: “Vacuum Flask and Other Vacuum Vessels.
Case-Laws
GST
Classification of Cryo Container, also known as Liquid Nitrogen Containers – Cryo

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Cast Iron Brackets and Clamps Classified Under Chapter Heading 7325 for Rust-Protected, Non-Machined Products.

Cast Iron Brackets and Clamps Classified Under Chapter Heading 7325 for Rust-Protected, Non-Machined Products.
Case-Laws
GST
Classification of brackets and clamps of cast iron – the applicant

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IN RE: PRAJAPATI DEVELOPERS

IN RE: PRAJAPATI DEVELOPERS
GST
2018 (9) TMI 236 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2018 (16) G. S. T. L. 320 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 3-7-2018
GST-ARA-02/2018-19/B-58
GST
Shri B.V. Borhade, And Shri Pankaj Kumar, Member
PROCEEDINGS
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by PRAJAPATI DEVELOPERS, the applicant, seeking an advance ruling in respect of the following question :
“Whether the construction services provided under the project “Prajapati Magnum” qualifies for the reduced CGST Rate of 6% as provided in Sl. No 3 – item (v)- sub item (da) vide Notification 01/2018- CT (Rate) dated 25.01.2018?”
At the outset, w

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rcial complex.
2. Presently the applicant is undertaking development of residential apartments under a project called 'Prajapati Magnum'  in Dronagiri, Navi Mumbai.
3. The details of the project are as follows:
a) Project Magnum was started in December 2013 and expected to complete in December 2022.
b) The Project Magnum has five wings with 19 floors in each wing.
c) Total number of flats in the projects are 352.
d) The flats are being developed over 12099 sq mtrs of Land. The Total FSI consumed is 18,099.50 Sq.Mtrs of area out of which 13,145.26 Sq.Mtrs of FSI are consumed in the flats having carpet area below 60 Sq.Mtrs.
e) Cost of flats ranges from Rs. 41.00.000/- to Rs. 87,00,000/-
4. Applicant has discharged Service Tax on the consideration received from the flat owners till 30.06.2017 at the applicate rate of service tax and later GST is being discharged at the effective rate of 12% after availing the 1/3rd deduction towards the land portion as provided in explanati

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o the total amount charged for such supply less the value of land or undivided share of land, as the case may be. The value of land/undivided share of land in such supply shall be deemed to be one third of the total amount charged for Such supply”
3. The rate Notification 11/2017- CT (Rate) has been amended from time to time to change the rate of GST towards supply of various goods and or services or both. Recently on 25.01.2018, it has been amended again vide Notification 01/2018-CT (Rate) to reduce the rate of GST on specified Construction Services from the earlier 18% to 12% (effectively '8%' after availing 1/3rd deduction towards value of land].
4. With effective from 25.01.2018, new item (v) sub item (da) has been inserted in Sl. 3 vide Notification 01/2018-CT (Rate) to specify the rate of CGST as 6% in case of following service:
“Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of constr

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ontract”
Discussion on Affordable Housing Project:
7. The reduced rate of 12% (8% after reducing 1/3rd towards land) is applicable only for the low-cost houses up to a carpet area of 60 Square Meters per house in an affordable housing project. Further the benefit is available only to those Affordable housing projects which have been given infrastructure status by Government of India vide F. No. 13/ 6/2009-INF, dated the 30th March, 2017.
8. “Affordable Housing” is defined as a housing project using at least 50% of the Floor Area Ratio (FAR)/Floor Space Index (FSI) for dwelling units with carpet area@ of not more than 60 square meters.
9. Accordingly, a housing project using at least 50% of the Floor Area Ratio (FAR)/Floor Space Index (FSI) for dwelling units with carpet area@ of not more than 60 square meters has been given the infrastructure status by the GOI and therefore would be eligible for the benefit of reduced rate.
10. Further it was also mentioned in the above referred n

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rper area usage in the project under consideration. As per the said Architect's Certificate, it is evident that the project 'Prajapati Magnum' has total consumed/ Permissible F.S.I. of 18099.50 Sq.Mtrs. Out of which 13145.26 Sq.Mtrs F.S.I area are consumed by flats having carpet area below 60 Sq.Mtrs, Therefore, the said housing project is using around 73% of the total Floor Area Ratio (FAR)/ Floor Space Index (FSI) for dwelling units with carpet area@ of not more than 60 square meters.
14. Architect's Certificate on carpet area usage and also flat wise FSI issued for the given project is enclosed for your kind consideration,
15. Further, following statements made in the press release by the Ministry of Finance, Government of India on completion of 25th GST council meeting dated 18.01.2018 would be relevant:
a) “The Fourth Recommendation of the Council is to extend the concessional rate of 12% to services by way of construction of low cost houses up to a carpet area of 60 sqm in a h

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Notification No. 11/2017-CT (Rate) dated 28.06.2017.
17. It would be relevant to note that the GST law do not provide any separate meaning to define the term 'low cost houses'- Thereby, applicant is of the understanding that the houses with carpet area of not more than 60 square meters could itself be considered as low-cost houses for determining the rate of GST.
Applicant's viewpoint:
18. The project “Prajapati Magnum” qualifies to be an Affordable Housing Project which has been given infrastructure status vide notification of Government of India.
19. Accordingly, Service by way of Construction of houses with carpet area up to 60 Square Meters per house in the said housing project would attract GST at 12% [CGST- 6% and SGST-6%] w.e.f. 25.01.2018. The effective tax rate would be 8% after reducing 1/3rd towards value of land.
03. CONTENTION – AS PER THE CONCERNED OFFICER
Vide letter dated 14.05.2018, the concerned officer has submitted a report as under:
Point No. 14 states that

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of 8% GST is only applicable to low cost houses/ flats only, not to the project which includes other dwelling units as well. Project Prajapati Magnum is an ongoing project since December, 2013. It is obvious that many of the dwelling units would have been sold out to different categories of buyers viz. prospective buyers, promoters, investors and partners which may or may not include low income groups and economically weaker section. The key conditions to qualify for taking the benefits of the said Notification are:
i) Low cost houses up to a carpet area of 60 square metre.
ii) Housing project using at least 50% of the FAR/FSI for dwelling units with carpet area of not more than 60 square metre.
Here, CGST Act 2017 does not define “low cost house”. There are different definitions given by various agencies like RBI and MOHUPA, etc. Therefore, cost is the most important factor while deciding the benefits of said Notification. The second condition is being fulfilled here as the perc

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different category of buyers viz prospective buyers, promoters and investors?
b) How many flats are there in each category i.e. a) 41 Lacs, b) 87 Lacs, c) In between 41 Lacs to 87 Lacs?
iv) Issue of Anti Profiteering:-Since there is no GST on second sale of flats. It is our apprehension that significant number of flats would be owned by promoter/ investor/partners may be sold to prospective buyers, thereby coming out of ambit of GST as there is no GST on second sale of flat. Consequently; it will be further Out of purview of Anti profiteering Authority also as this transaction does not involve in GST. This may become potential revenue loss for Government of India, Moreover, such a step will undermine the large objective of social welfare which is behind the recommendations and amendment in the Notification 1/ 2018-Central Tax (Rate) dt.25.01.2018.
04. HEARING
The Preliminary Hearing was held on date 15.05.2018. Shri Vasant K Bhatt, Chartered Accountant, duly authorized appeared al

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Notification No. 01/2018-CT (Rate) dated 25.01.2018.
This issue is with respect to the housing project called “Prajapati Magnum” in Dronagiri, Navi Mumbai which has been undertaken by them. The applicant has submitted that the said project was started in December 2013 and is expected to be completed in December 2022. They have also submitted that the total FSI consumed in the said project is 18,099.50 sq.mtrs out of which 13,145.26 sq mtrs. of FSI are consumed for flats having carpet area below 60 sq mtrs. They have, whilst submitting Architect's Certificate in support, submitted that their housing project is using around 73% of the total Floor Area Ratio (FAR)/ Floor Space Index and therefore their project falls under the definition of “Affordable Housing” as mentioned in notification issued by Government of India, Ministry of Finance, Department of Economic Affairs vide F. NO. 13/6/2009-INF, dated the 30th March, 2017.
Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, h

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works pertaining to the “In-situ rehabilitation of existing slum dwellers using land as a resource through private participation” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana, only for existing slum dwellers;
(d) a civil structure or any other original works pertaining to the “Beneficiary led individual house construction / enhancement” under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana;
(e)…………………………………; or
(f)……………………………………
6
-]
 
 
(v) Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection, commissioning, or installation of original works pertaining to,-
(a)…………………………………;
(b)………………………………….;
(c) low-cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent autho

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taining to the “'In-situ redevelopment of existing slums using land as a resource, under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);';
(II) after sub-item (d), the following sub-items shall be inserted, namely: –
'(da) a civil structure or any other original works pertaining to the “Economically Weaker Section (EWS) houses” constructed under the Affordable Housing in partnership by State or Union territory or local authority or urban development authority under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (Urban);
(db) a civil structure or any other original works pertaining to the “houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS)/ Lower Income Group (LIG)/ Middle Income Group-1 (MIG-1)/ Middle Income Group-2 (MIG-2)” under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban);';
(III)……………………………………………………”;
(B) in it

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authority or urban development authority.
According to sub item (db) in item iv “a civil structure or any other original works pertaining to the “houses constructed or acquired under the Credit Linked Subsidy Scheme for Economically Weaker Section (EWS)/Lower Income Group (LIG)/ Middle Income Group-1 (MIG-1)/ Middle Income Group-2 (MIG-2)” under the Housing for All (Urban) Mission/ Pradhan Mantri Awas Yojana (Urban). This clause also shall not be applicable to the applicant since this clause states that the houses should be constructed or acquired under the Credit Linked Subsidy Scheme of the Government.
According to sub item (da) of item (v), “low-cost houses up to a carpet area of 60 square metres per house in an affordable housing project which has been given infrastructure status vide notification of Government of India, in Ministry of Finance, Department of Economic Affairs vide F. No. 13/6/2009-INF, dated the 30th March, 2017 would attract a tax rate of 12%. This clause will be

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Authority, an updated Harmonized Master List of Infrastructure Sub-sectors (Annexure-I) is hereby notified. The new list incorporates the following change to the notification dated 1st August, 2016;
1. Under the category of “Social and Commercial Infrastructure” a new sub-sector – “Affordable Housing” is added.
Annexure-I
Updated Harmonized Master List of Infrastructure Sub-sectors
Sl. No.
Category
Infrastructure sub-sectors
 
Transport
* Roads and bridges
* Ports
* Shipyards
* Inland Waterways
* Airport
* Railway Track, tunnels, viaducts, bridges
* Urban Public Transport (except rolling stock in case of urban road transport)
 
Energy 
* Electricity Generation
* Electricity Transmission
* Electricity Distribution
* Oil pipelines
* Oil/ Gas/ Liquefied Natural Gas (LNG) storage facility
* Gas pipelines
 
Water and Sanitation
* Solid Waste Management
* Water supply pipelines
* Water treatment plants
* Sewage collection, tr

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…….
4. ……………………………….
5. ………………………..
6. ………………………..
7. ………………………..
8. ………………………..
9. ………………………..
10. “Affordable Housing” is defined as a housing project using at least 50% of the Floor Area Ratio (FAR)/Floor Space Index (FSI) for dwelling units with carpet area of not more than 60 square meters.
@ “Carpet Area” shall have the same meaning as assigned to it in clause (k) of section 2 of the Real Estate (Regulation and Development) Act, 2016.
One of the recommendations made by the GST Council in its 25th meeting held on 18th January 2018 at Delhi was to extend the concessional rate of 12% (8% CST after deducting value of land) to services by way of construction of low cost houses up to a carpet area of 60 sqm in a housing project which has been given infrastructure status under notification No. 13/06/2009 dated 30th March, 2009. The said notification of Departmen

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factoring in the full ITC available in the CST regime and reduces the ex-GST price of flats.” The CST Council has also mentioned that the builders/ developers are expected to follow the principles laid down under Section 171 of the CST Act (Anti-Profiteering Rules) scrupulously.
In response to a request for clarification to enable availing 8% GST on Affordable Housing made by the builders association namely , CREDAI vide their letter no. CREDAI/MOF/2018/14 dated 19th March, 2018, the Government vide F.No. 354/52/2018-TRU, Government of India Ministry of Finance Department of Revenue (TRU) dated 7th May, 2018 has clarified that “Low cost houses up to a carpet area of 60 .square metres per house in an affordable housing project, which has been given infrastructure status under notification F. No. 13/6/2009-INF, dated the 30th March, 2017 of MOF (DEA), attract concessional GST of 8% (the value of the undivided share of land is included in the price of the house). Whether the housing proj

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which Notification 1/2018-CentraI Tax (Rate) was issued and the benefit of this reduced rate would be applicable in case of only those flats which are of carpet area upto 60 sq mtrs. In this scheme which is covered in the category of affordable housing. In case of other flats which have carpet area more than 60 sq.mtrs. the applicant would be required to pay GST at normal applicable rate.
06. In view of the deliberations as held hereinabove, we pass an order as follows:
ORDER
(under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
NO. GST-ARA-02/2018-19/B-58 
Mumbai, dt.03/07/2018
For reasons as discussed in the body of the order, the question in answered thus-
Question : Whether the construction services provided by the applicant under the project “Prajapati Magnum” qualifies for the reduced CGST rate of 6% as provided in Sr. No. 3 – item (v) –  sub item (da) of Notification No. 01/2018-CT (Rate) dated

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Circular regarding Clarification of certain issues under GST.

Circular regarding Clarification of certain issues under GST.
2185/GST-2 Dated:- 3-7-2018 Haryana SGST
GST – States
=============
Document 1
From
To
Subject:
Addl. Excise & Taxation Commissioner (GST)
Haryana, Panchkula.
All the Dy. Excise & Taxation Commissioners (ST),
in the State of Haryana.
Memo No. 2185
Panchkula, dated the
/GST-2,
3-7178
Circular regarding Clarification of certain issues under GST.
MEMORANDUM
Please find enclosed herewith a copy of circular on the above mentioned
subject as issued by the Central Government.
It is requested to bring this to the knowledge of all the officers working under your
control for their information and necessary action.
Addl. Excise and Taxation Commissioner (GST),
O/o Excise & Taxation Commissioner,
Haryana, Panchkula
Endst. No. 2186 / GST-2, Panchkula, dated the
3-7-18
A copy alongwith a copy of guidelines regarding refund under HGST Act is
forwarded to the following for information and necessary action:-

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2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing
New Delhi, Dated the 08th June, 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 of certain issues under GST- regarding
Representations have been received seeking clarification on certain issues under the
GST laws. The same have been examined and the clarifications on the same are as below:
Sl.
Issue
No.
1
Whether moulds and dies owned by
Original Equipment Manufacturers
(OEM) that are sent free of cost
(FOC) to a component manufacturer
is leviable to tax and whether OEMs
are required to reverse input tax
credit in this case?
Clarification
1.1 Moulds and dies owned by the original
equipment manufacturer (OEM) which are
provided to a component manufacturer (the
tw

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vail input tax credit?
shall not be added to the value of such
supply because the cost of moulds/dies was
not to be incurred by the component
manufacturer and thus, does not merit
inclusion in the value of supply in terms of
section 15(2)(b) of the Central Goods and
Services Tax Act, 2017 (CGST Act for
short).
1.3 However, if the contract between OEM and
component manufacturer was for supply of
components made by using the moulds/dies
belonging to the component manufacturer,
but the same have been supplied by the
OEM to the component manufacturer on
FOC basis, the amortised cost of such
moulds/dies shall be added to the value of
the components. In such cases, the OEM
will be required to reverse the credit
availed on such moulds/ dies, as the same
will not be considered to be provided by
OEM to the component manufacturer in the
course or furtherance of the former's
business.
2.1 The taxability of supply would have to be
determined on a case to case basis looking

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e
4
In case of transportation of goods by
railways, whether goods can be
delivered even if the e-way bill is
not produced at the time of
delivery?
5 Whether e-way bill is required in the
following cases-
(i) Where goods transit through
another State while moving from
one area in a State to another area in
the same State.
purpose of auction of tea, coffee,
rubber etc., or the principal and the
auctioneer for the purpose of supply of
tea through a private treaty, are
required to maintain the books of
accounts relating to each and every
place of business in that place itself in
terms of the first proviso to sub-section
(1) of section 35 of the CGST Act.
However, in case difficulties are faced
in maintaining the books of accounts, it
is clarified that they may maintain the
books of accounts relating to the
additional place(s) of business at their
principal place of business instead of
such additional place(s).
(c) The principal and the auctioneer for the
purpo

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M/s Birla Corporation Ltd. Versus CGST, CC & CE, Jabalpur

M/s Birla Corporation Ltd. Versus CGST, CC & CE, Jabalpur
Central Excise
2018 (7) TMI 1264 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 3-7-2018
Excise Appeal No. 50308/2018 – FINAL ORDER NO. 52486/2018
Central Excise
HON'BLE SHRI ANIL CHOUDHARY, MEMBER (JUDICIAL) And HON'BLE SHRI C.L. M AHAR, MEMBER (TECHNICAL)
For the Petitioner : Shri Bipin Garg, Advocate
For the Respondent : Shri N.R. Shaima, DR
ORDER
Per Anil Choudhary:
The issue involved in this appeal relates to objection by Revenue on taking of cenvat credit on the supplementary invoices, raised by M/s. South Eastern Coalfields Ltd., for supply of coal made to the appellant.
2. Coal is one of the important input of the appellant used in the manuf

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ges”, “clean energy cess” and “transit fee” in respect of coal earlier supplied by them. They had paid additional amount of duty & cess Rs. 1,62,39,182/- and taken credit in their cenvat credit register on 31.07.2014, which, it appeared, are not valid documents for availing cenvat credit in terms of Rule 9(1) (b) of the CCR, 2004.Accordingly, a show cause notice No.42/Commr/CEX/REWA/2015-16 dated 3.7.2015 was issued to the appellant and subsequently proceeding was finalized by the adjudicating authority vide order-in-original no.58/JC/CEX/JBP/2016-17 dated 28.03.2017 wherein Cenvat Credit was disallowed and ordered to recover the same along with interest and penalty.
4. Subsequently, Revenue issued another show cause notice on the ground t

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sputed by the Revenue, the fact of deposit of such duty collected by SECL, with the Govt. exchequer.
5. Ld. Counsel appearing for the appellant argues that in view of the admitted facts that the demand of duty on such charges like royalty charges, etc. is subjudice before the Hon'ble Supreme Court in Civil Appeal No.4056-5064/1999 (Mineral Area Development Vs. Steel Authority of India) and as such, the issue is debatable as to inclusion of aforesaid charges in the assessable value and as such, denial of cenvat credit by the Revenue on the ground of fraud, suppression is not tenable and have legs to stand.
6. Ld. AR for the Revenue have reiterated the findings of the impugned order.
7. Having considered the rival contentions of both the s

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