Goods and Services Tax

CCT, Guntur GST Versus Andhra Pradesh Granites Midwest Pvt. Ltd.
Central Excise
2018 (5) TMI 863 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 17-4-2018
Appeal No: E/30085/2018 – A/30505/2018
Central Excise
Mr. M.V. Ravindran, Member(Judicial)
Shri Guna Ranjan, Superintendent/AR for the Appellant.
None for the Respondent.
[Order per: Mr. M.V. Ravindran]
1. This appeal is directed against Order-in-Appeal No. VIZ-EXCUS- 003-APP-050-17-18, dated 29.09.2017 and filed by Revenue. Notices were open both appellant and respondent along with appeal memorandum.
2. On perusal of records, it transpires that the issue lies in narrow compass, accordingly the appeal is taken up for disposal even in the absence of any

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cleared for exports through the third party has to be considered as exports and has to be included for computing total turnover of exports.
4. Ld. DR submits that the findings of the first appellate authority are not correct; that the exports made during the quarter shall be the goods exported by the Respondent and submits that the first appellate authority has recorded that the respondent did not produce the bank realisation certificate of the exports. It is his submission that the matter may be remanded to the lower authorities.
5. On due consideration of the submissions made, I find there is no dispute as to the fact that respondent cleared the goods manufactured by them for export through third party. The findings of the first appell

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(Tri.-Bang.)
(b) CCE&Cus, Nashik Vs Sipra Engineers Pvt Ltd 2007(217) elt 239 (Tri.- Mumbai)
(c) Meghdoot Pistons Pvt Ltd Vs. CCE Kanpur 2011(263) ELT 610 (Tri.- Del.)
I perused the aforesaid case laws and observed that the above case laws relied upon by the appellants are strongly in support of their contention and are applicable to the present facts of the case.
5.4 Further, it is stated in the impugned order that as the assessee has failed to submit proof of receipt of foreign exchange in respect of third party exports, the value of third party exports have not been considered for computing export turnover. I opine that the plea of the appellant to consider value of such exports for computation of export turnover is to be all

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CCT, Guntur GST Versus The Andhra Sugars Limited
Central Excise
2018 (5) TMI 862 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 17-4-2018
APPEAL No. E/31161/2017 – A/30506/2018
Central Excise
Mr. M.V. Ravindran, Member(Judicial)
Shri Arun Kumar, Dy. Commissioner/AR for the Appellant.
Shri N. Anand, Advocate for the Respondent.
[Order per: Mr. M.V. Ravindran]
1. This appeal is filed by Revenue against Order-in-Appeal No. GUNEXCUS- 000-APP-048-17-18, dated 30.06.2017.
2. Heard both sides and perused the records.
3. On perusal of records, it transpires that the issue is regarding reversal of an amount equivalent to 6% of the value of goods cleared as exempted from the factory premises of the respondent.
4

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by following the Final Order of this Bench A/30944 to 30949/2016, dated 26.09.2016 in this assessee's own case.
5. It is the case of Revenue in this appeal that the final order dated 26.09.2016 would have been challenged before the higher authorities but due to new monetary limit policy of the Govt. of India, it was not done so; that the goods which are cleared i.e. sulphuric acid, were undisputedly cleared without payment of duty and the provisions of CENVAT credit Rules, more specifically Rule 6 (2) would apply in its full force and the demand of 6% of the value of the exempted goods should be confirmed.
6. After hearing the submissions made by both sides, I find that this Bench in the Final Order dated 26.09.2016, for the period Septe

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case of Revenue any further, as I find in the case in hand that identical issue of the supply of sulphuric acid of the very same appellant has been considered by this Bench and taken a view that Central Excise Tariff under chapter X procedure does not entitle the Revenue to the demands of amount equivalent to 6% of the value of the goods so cleared, while in the case of Atlas Automotive Components Pvt. Ltd., (supra), there was a factual finding that the petitioners, initially were reversing the CENVAT credit on the inputs contained in the finished goods cleared under Chapter X procedure and abruptly shifted their stand refusing to reverse such CENVAT credit, it is for that reason the demands were raised. The facts are clearly different tha

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CCT Guntur GST Versus The Andhra Sugars Limited
Central Excise
2018 (5) TMI 861 – CESTAT HYDERABAD – TMI
CESTAT HYDERABAD – AT
Dated:- 17-4-2018
Appeal No.- E/31162-31165/2017 , E/31210-31211-2017 – A/30507-30512/2018
Central Excise
Mr. M.V. Ravindran, Member(Judicial)
Shri Arun Kumar, Dy. Commissioner/AR for the Appellant.
Shri N. Anand, Advocate for the Respondent.
 [Order per: Mr. M.V. Ravindran]
1. All these appeals are filed by Revenue against Orders-in-Appeal Nos. GUN-EXCUS-000-APP-059-17-18, dated 18.08.2017; GUN- EXCUS-000-APP-060-17-18, dated 18.08.2017; GUN-EXCUS-000-APP- 061-17-18, dated 18.08.2017; GUN-EXCUS-000-APP-075-17-18, dated 26.09.2017; GUN-EXCUS-000-APP-076-17-18, dated 26.09.2017.
2. He

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M/s Mazda Exports (India) Versus Commissioner, GST, Ludhiana
Central Excise
2018 (4) TMI 1451 – CESTAT CHANDIGARH – TMI
CESTAT CHANDIGARH – AT
Dated:- 17-4-2018
E/60112/2018 – FINAL ORDER NO: 62239/2018
Central Excise
Mr. Ashok Jindal, Member (Judicial)
Shri. Sudeep Singh, Advocate- for the appellant
Shri. Vijay Gupta, AR- for the respondent
ORDER
Per Ashok Jindal:
The appellant is in appeal against the impugned order wherein goods has been seized and confiscated, thereafter, allowed to be redeemed on payment of redemption fine and penalty.
2. The facts of the case are that the appellant is manufacturer of tractor parts and agricultural implements parts under the brand name of 'Five Star Super Spares'. As Five Sta

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ive Star Super Spare' which is not similar to 'Five Star' and 'Five Star Super Spare is the brand of the appellant only, therefore, they were entitled to avail benefit of SSI exemption. Ín alternate, it is submitted by the ld. Counsel for the appellant is that all goods are meant for export and the appellant is exporting the said goods, therefore, they are not liable to pay duty on the said goods, hence, they cannot be seized. It is further submitted that out of the total goods seized having value of Rs. 4,76,080/, the value of the goods which are of agriculture implements is 2,83,192/- on which no duty is payable and after allowing the abatement, the value of goods on which duty is payable of Rs. 1,35,022/-. In that circumstance, th

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peal is taken up for consideration only on the issue of imposition of redemption fine and penalty.
7. As the appellant is using the brand name of third party and not paying duty thereon, in that circumstances, the goods are held liable for confiscation. Although, the appellant is exporting the said goods but the appellant has not followed any procedure i.e. payment of duty, and claiming the rebate claim or goods have been exported under bond. In that circumstance, I hold that the goods are liable for confiscation.
8. Further, I find that the fact is on record that out of total value of the goods of Rs. 4,76,080/- the goods worth Rs. 2,83,192/- are agriculture equipments on which, no duty is payable by the appellant. In that circumstances,

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Mechanism for redressal of difficulties faced by taxpayers due to technical glitches on the GST portal.
13T of 2018 Dated:- 17-4-2018 Maharashtra SGST
GST – States
Office of the-
Commissioner of State Tax
8th floor, Vikrikar Bhavan,
Mazgaont Mumbai – 400010.
TRADE CIRRCULAR.
Sub: Mechanism for redressal of difficulties faced by taxpayers due to technical glitches on the GST portal.
Trade Circular No. 13T of 2018
Background and scope
1. Department of Revenue, Government of India vide a circular No. 39/13/2018 dated 3rd April 2018 has put in place an IT -Grievance Redressal Mechanism to address the difficulties faced by a section of taxpayers owing to technical glitches on the GST portal and the relief that needs to be g

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er who have allocated to the Maharashtra State Tax Department. Therefore. to streamline the procedure of IT-Grievance redressal, a taxpayer, who could not comply for any submission on the GST portal due to technical glitches is required to make an application to his Nodal Officer in format prescribed as Annexure 1 through Physical application or by mail (Details of the Nodal officer far tax payer is available on www.mahagst.gov:in). Taxpayer shall file separate application for Grievances in respect of individual issue, The said application shall be accompanied by necessary evidences to establish that a bona fide attempt, to comply with the due process Of law, was made by the taxpayer. The evidences may include either
(i) screen-shots of th

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essal made to nodal officer may apply to respective locational or Divisional Supervisory authority.
4. However, facility under this mechanism shall not be available to the cases where non-compliances are due to the reasons other than technical glitches like non-availability of internet, problem of individual taxpayer or any other localized problem. If the issue/problem is due to some legal/procedural reason the same is not come into ambit of IT Grievance Redressal Mechanism.
(Rajiv Jalota)
Commissioner of State Tax,
Maharashtra State
ANNEXURE-1
Application for Redressal of difficulties faced due to technical glitches on the GST portal
Sr. No.
Particular
Details
1.
GSTIN / PID Number of the Taxpayer
2.
Registration number of

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Goods received for repair from customer
Query (Issue) Started By: – SURYAKANT MITHBAVKAR Dated:- 16-4-2018 Last Reply Date:- 27-4-2018 Goods and Services Tax – GST
Got 3 Replies
GST
We have manufacture pharma machine registered under GST
Our customer has sent some part for repairing under delivery Challon
NOW the repairing work will take place at our vendor place where goods to be delivered by us.
We have sent the same goods on our letter while declaring value for transit purpose along with the customer delivery Challon to that vendor who is doing repairing job.
After repairing job is done that vendor deliver goods on challon with their service invoice which is raise in our name.
After receiving the repaired goods from ve

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r repair by the downstream repairing centres? What is the tax liability?
Answer: The defective parts shall be sent for repair on a delivery challan accompanied by such e-way bill as may be prescribed. GST shall be chargeable on the repair amount, including the cost of parts, charged by the repairing centre.
Question 21: An Original Equipment Manufacturer (OEM) has an obligation to provide repair services to their customers in the warranty period. This activity is outsourced by OEM to 'D', who bills the OEM for the services he provides to the customer. What is the tax liability of 'D'?
Answer: 'D' is providing service to the OEM. GST is payable on the value of any supplies made by 'D' to OEM i.e. in respect of bills raised by 'D' on the O

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NOW the repairing work will take place at our vendor place where goods to be delivered by us.
We have sent the same goods on our letter while declaring value for transit purpose along with the customer delivery Challon to that vendor who is doing repairing job.
After repairing job is done that vendor deliver goods on challon with their service invoice which is raise in our name.
B. After receiving the repaired goods from vendor we will raise our service invoice to customer as agreed and send goods to customer along with their challan copy.
Please advice whether the above procedure under GST is correct or we have to any other precaution under the above procedure.
Please note that we have not issue any challan when the goods send to our

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Tax liability on stock transfer due to change in business constitution
Query (Issue) Started By: – DINESH TIWARI Dated:- 16-4-2018 Last Reply Date:- 8-5-2018 Goods and Services Tax – GST
Got 8 Replies
GST
Sir
If i change a proprietorship business into the partnership business under GST; there is neither change in Place of Business nor any Closing Stock or Plant and Machinery moved from their places.
So i want to ask that, is there any immediate liability of GST on Plant and machinery and Closing Stock imposes on previous firm.
Please guide me on it.
Reply By YAGAY AND SUN:
The Reply:
going concern does not attract taxes.
Reply By Ganeshan Kalyani:
The Reply:
GST is PAN based. If PAN is same then there is no change liabi

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REFUND OF INPUT CREDIT FOR EXPORTERS
Query (Issue) Started By: – rohit patodi Dated:- 16-4-2018 Last Reply Date:- 18-4-2018 Goods and Services Tax – GST
Got 3 Replies
GST
what would be my adjusted turnover and net ITC in case of refund of input tax credit availed on inputs in case of exporters. For eg., an exporter has exported goods on LUT worth rs 2500000 in July period and in the same period he has done taxable sale within state worth rs 500000 and tax is ₹ 12500 cgst and sgst. So Total sale would be 3000000 rs. He has total input on purchases amounting to ₹ 150000 cgst and sgst. Thus input left at the end of the tax period at the end of the month is 150000-12500 i.e 137500.
In this case, how can I calculate adj

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For Charitable trust 12AA
Query (Issue) Started By: – Sanjay Chaturvedi Dated:- 16-4-2018 Last Reply Date:- 28-9-2018 Goods and Services Tax – GST
Got 7 Replies
GST
Our association is exempted under 12AA we are doctors organize conference for advancement of knowledge. which is covered under B and C below.
(advancement of educational programmes or skill development relating to:
(A) abandoned, orphaned or homeless children;
(B) physically or mentally abused and traumatized persons;
(C) prisoners; or
(D) persons over the age of 65 years residing in a rural area;)
We collect Money for organizing such educational activity as follows –
1) Registration Fees from Doctors
2) Unrestricted Educational Grant from Pharma and Surgical Companies in lieu of providing Space to provide knowledge to the Doctors about their recently launched products.
3) Accompanied person Registration fees
We spent these collection on
1) Venue Arrangement
2) Dinner/Lunch and other activities incl

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the term “charitable activities' which has been defined in the notification as under “charitable activities” means activities relating to –
(i) public health by way of, –
(A) care or counseling of
(I) terminally ill persons or persons with severe physical or mental disability;
(II) persons afflicted with HIV or AIDS;
(III) persons addicted to a dependence- forming substance such as narcotics drugs or alcohol; or
(B) public awareness of preventive health, family planning or prevention of HIV infection;
(ii) advancement of religion, spirituality or yoga;
(iii) advancement of educational programmes or skill development relating to, –
(A) abandoned, orphaned or homeless children;
(B) physically or mentally abused and traumatized persons;
(C) prisoners; or
(D) persons over the age of 65 years residing in a rural area;
(iv) preservation of environment including watershed, forests and wildlife.
This notification makes the exemption to charitable trusts available fo

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,
I concur with the views of the experts. However, you must go through the following circular issued by CBEC:-
GST on Charitable and Religious Trusts
Reply By Sanjay Chaturvedi:
The Reply:
Dear Sir, (Mr. ALKESH JANI)
As I understand that you are not clear about our activity – that I again clarify
1) We are Association of Doctors
2) We are exempt under 12AA
3) We have our annual conference where we discuss and enhance our knowledge – which not limited to physically or mentally abused and traumatized persons; persons over the age of 65 years residing in a rural area but cover these topics too, which are covered in the definition.
Now we receive money from Doctors – members and non members – as Registration fees for covering partial expenditure
We receive unrestricted educational grant from Companies which in turn provides education in the pre defined areas.
We spent on Hotels, for venue and Food
on transportation of delegates
which activity we must charge with GST and which

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are prone to Audit by the department. The terms and conditions of agreement with pharma cos. are very crucial in this aspect.
Reply By Tushar Barad:
The Reply:
We have received financial assistance request from UNRESTRICTED EDUCATION GRANT to support educational preconference workshop organized by XXXX Medical Center Trust hospital which is registered since inception in 2012 with both CIT(Exemptions) Kolkata and CCIT(Exemptions) New Delhi.
They have tax exemption under section 80G as per Income Tax website.
Do they also have to be registered as Charitable Trust Section 12AA?.. as per the question asked above?
We are private company supporting them for carrying out the educational activity, and we are not renting any space, booth or hiring any immovable property from them. In such case : simple agreement as per template provided here : http://www.ebap.org/images/files/4-Template_contract_Unrestricted_Grant_Agreement_and_equipment_LEE.docx …is sufficient for tax compliance?
Do we

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E-waybill preparation and various legal aspects involved
Query (Issue) Started By: – Yatin Bhopi Dated:- 16-4-2018 Last Reply Date:- 16-4-2018 Goods and Services Tax – GST
Got 2 Replies
GST
Our goods are moved in tankers and trucks and invoice is generated only after goods are loaded in the vehicle which is arranged by us in case of door delivered supply and by customer in case of ex-works supply. Since all details required for generating e-waybill is available with us it is always convenient and fastest method to generate e-waybill at our place whether ex-works supply or door delivered supply.
Further, our many customers are not agreeing to take responsibility to generate E-waybill even though they are arranging transport, sa

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ll even though it is not our responsibility.
* In the above situation if we generate e-waybill what type of liability we might face since we are preparing e-waybill
* In case of ex. works supply by us if by chance vehicle leaves our factory without e-waybill then who will be penalized / prosecuted under GST Act.
* In case or Ex. works purchases by us whether we have to prepare E-waybill
* In case for any reason in case of ex- works supply by us, where we have generated e-waybill and goods have been retained by GST authority, will they held us responsible?
Reply By Ganeshan Kalyani:
The Reply:
1. Yes , you can generate e-way bill. Infact either supplier, Customer or transport can generate e-way bill.
2. Supplier is liable to pay

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GST credit on pre Emi interest/assured rental/late possession penalty as special discount after supply of services us15(3)(b) of CGST act.
Query (Issue) Started By: – aditya Kumar Dated:- 16-4-2018 Last Reply Date:- 4-5-2018 Goods and Services Tax – GST
Got 1 Reply
GST
If we pay as per agreement to sale, monthly pre Emi interest/assured rental/late possession penalty on sale of under construction flats to customers, Can we reverse GST by issuing credit note on pre Emi interest/assur

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M/s Parryware Roca Pvt. Ltd. Versus CCE&CGST, Alwar
Central Excise
2018 (5) TMI 1201 – CESTAT NEW DELHI – 2018 (363) E.L.T. 1000 (Tri. – Del.)
CESTAT NEW DELHI – AT
Dated:- 16-4-2018
Ex. Appeal No. 50022 of 2018 – A/51411/2018-EX[DB]
Central Excise
Mr. Justice (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical)
Sh. Alok Kothari, Advocate for the appellant
Sh. M. R. Sharma, AR for the Respondent
Per: V. Padmanabhan:
The present appeal is filed against the order-in-appeal No. 202 (SM)CE/JPR/2017 dated 13.09.2017 passed by the Commissioner (Appeals), Central Excise and Central Goods & Service tax, Jaipur-I.
2. Brief facts of the case are that the appellants are engaged in the manufacture of '

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ch moulds and dies. Accordingly, demand of Central Excise was raised and penalty was also imposed. Being aggrieved, the present appeal is filed by the appellant.
3. With this background, we heard Sh. Alok Kothari, ld. Advocate for the appellant and Sh. M. R. Sharma, ld. AR for the Revenue.
4. It is the submission of the ld. Counsel that the goods i.e. moulds and dies are eligible for exemption under Notification No. 67/1995. He submitted that only after the moulds and dies have become junk the same were cleared to the customer. He argued that on such clearance no duty will be payable as has been held by the Tribunal in the case of Elcon Clipsal India Ltd. vs. CCE, Ahmedabad-I -2002 (146) ELT 360 (Tri. Del.).
5. Ld. AR appearing for the

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home consumption. The monetary consideration has also been received by the appellant on which VAT stands paid. We are of the view that moulds and dies will enjoy such exemption only as long as such goods remain within the factory of the appellant. At the time of clearance of such goods to the customer, the goods are liable to payment of duty, on the transaction value and the benefit of Notification No. 67/95 will not be available at the time of such clearance. We have also perused the case law cited by the ld. Counsel. We note that the facts of that case are different and hence will not be application to the facts of the present case.
7. In the result, the impugned order is upheld. Appeal filed by the appellant is dismissed.
(Dictated an

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Extension of date for filing FORM GSTR I for quarter April to June 2018 till 31st day of July 2018
335/2018/5(120)/XXVII(8)/2018/CT-17 Dated:- 16-4-2018 Uttarakhand SGST
GST – States
Uttarakhand SGST
Uttarakhand SGST
Government of Uttarakhand
Finance Section-8
No. 335/2018/5(120)/XXVII(8)/2018/CT-17
Dehradun :: Dated :: 16 April 2018
Notification
WHEREAS, the State Government is satisfied that it is expedient so to do in public interest;
Now, THEREFORE, In exercise of the powers conferred by section 148 of the Uttarakhand Goods and Services Tax Act, 2017 (06 of 2017) (hereafter in this notification referred to as the Act), the Governor, on the recommendations of the Council, is pleased to allow to notify the registered

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Surendra Steel Supply Company Versus State of U.P. And Another
GST
2018 (5) TMI 76 – ALLAHABAD HIGH COURT – TMI
ALLAHABAD HIGH COURT – HC
Dated:- 16-4-2018
Writ Tax No. 628 of 2018
GST
Hon'ble Krishna Murari And Hon'ble Ashok Kumar, JJ.
For the Petitioner : Niraj Kumar Singh,Amit Mahajan
For the Respondent : C.S.C.
ORDER
Sri C.B.Tripathi, learned Special Counsel for the State has produced before us the copy of the order dated 14.4.2018 passed by the Assistant Co

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College Mess Fee Dues
Query (Issue) Started By: – Arijit Das Dated:- 14-4-2018 Last Reply Date:- 13-10-2018 Goods and Services Tax – GST
Got 12 Replies
GST
I am a 1st year student of Manipal University Jaipur. We received a mail from finance department saying we have to pay INR 5,492 as mess fee dues. The mail didnt have any details mentioning the reason. On replying and asking they said it is GST.
We had paid the Hostel Fee+Mess fee summing to INR 1,80,000 in June 2017.
The Mess fee of INR 53,500(including VAT) was paid in June 2017 for the time of Aug 2017- May 2018. According to what I have searched online, GST cant be applicable on an amount if fee has been paid before GST Launch. The date on the receipt is 20-Jun-2017.

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se duty was leviable on excisable goods on the value which was inclusive of VST/ Sale Tax. W.e.f. 1.7.17 VAT was subsumed in GST. Now there is no double taxation in GST. To collect GST prior to 1.7.17 is unconstitutional and hence illegal.
Reply By Arijit Das:
The Reply:
Services were started in August 2017- May 2018 then also they can't charge GST ?
Reply By KASTURI SETHI:
The Reply:
Dear Querist,
Yes, I agree with you. Pl. read there is ' NO GST' on advance for goods.
Reply By Alkesh Jani:
The Reply:
Sir, I agree with the views expressed by Sh. Kasturiji, In this regards, please refer Section 142 (11)(a) & (b). Therefore, if the VAT has already been paid before appointed day, GST is not applicable.
Reply By KASTURI S

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Guidelines for Intercepting and Inspecting Goods in Transit under CGST: Detention, Release, and Confiscation Procedures.
Circulars
GST
Procedure for interception of conveyances for inspection

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New Circular Clarifies Tax Arrears Recovery and Input Tax Credit Reversal Under CGST for Better Compliance.
Circulars
GST
Clarification regarding procedure for recovery of arrears under the e

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Mixed supply of services
Query (Issue) Started By: – yugesh nama Dated:- 13-4-2018 Last Reply Date:- 16-4-2018 Goods and Services Tax – GST
Got 5 Replies
GST
Hello sir
what if a person not charge higher amount of tax rate in mixed supply of goods and services? or the person sells the whole package of different goods and services in sach a way that lower rate of gst has higher value of goods and higer rate of gst has lower amount of goods.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
According to Section 8 (b) of CGST Act, 2017 " a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax."
In view of the legal position you cann

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his possibility.
Reply By YAGAY AND SUN:
The Reply:
Paying of an appropriate tax is the essence of GST. GST being an Indirect Taxation would be charged and collected by you from your customer, you have nothing to pay from your pocket. You must be availing ITC on Inputs/Input Services also. If on your output you pay less tax and avail the ITC on higher side then it may trigger the inflated tax structure.
To cope with such situation which may attract unwarranted attention of Revenue Department, it is advisable to pay the tax appropriately as applicable as consequences of evading GST are very serious.
Reply By Ganeshan Kalyani:
The Reply:
Fully agreed with Sri Yagay and Sun. You will get cost of the product with margin and tax component

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Accounts and Records including Accounting Ledgers under GST
By: – CASanjay Kumawat
Goods and Services Tax – GST
Dated:- 13-4-2018

Maintenance of books of accounts and necessary supporting and relevant records are highly essential requirements for proper management and control of the business operations. This will facilitate the correct receipt and payment of cash and other transactions entered by the company. It is mandatory to maintain the books of accounts under Indian Companies Act, 2013 and GST Act, 2017. Hence accounts maintenance in India is compulsory.
Under GST Act, 2017, as per section 35 of the CGST Act, 2017,
“Every registered person shall keep and maintain, at his principal place of business, as mentioned in the certificate of registration, a true and correct account of-
* production or manufacture of goods;
* inward and outward supply of goods or services or both;
* stock of goods;
* input tax credit availed;
* output tax payable and paid; and

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eements;
* Job work register;
* Security Deposit Register.
It may be noted that-
* where more than one place of business is specified in the certificate of registration then the accounts relating to each place of business shall be kept at such places of business;
* the registered person may keep and maintain such accounts and other particulars in electronic form in prescribed manner;
* every owner or operator of warehouse or godown or any other place used for storage of goods and every transporter (irrespective of whether he is a registered person or not) shall maintain records of the consigner, consignee and other relevant details of the goods in the prescribed manner;
* every registered person whose turnover during a financial year exceeds the two crore rupees [Rule 80(3) of the CGST Rules, 2017] shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement and such other

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be scored out under attestation and thereafter the correct entry shall be recorded and where the registers and other documents are maintained electronically, a log of every entry edited or deleted shall be maintained;
* Every registered person manufacturing goods shall maintain monthly production accounts showing quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by products thereof;
* Every registered person supplying services shall maintain the accounts showing quantitative details of goods used in the provision of services, details of input services utilised and the services supplied;
* Every registered person executing works contract shall keep separate accounts for works contract showing –
(a) the names and addresses of the persons on whose behalf the works contract is executed;
(b) description, value and quantity (wherever applicable) of goods or services received for the

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llful misstatement or suppression of facts) or section 74 (Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful misstatement or suppression of facts), as the case may be, shall, mutatis mutandis, apply for determination of such tax.
Period of Retention of Accounts [Section 36 of the CGST Act, 2017]
Under GST, every registered person required to keep and maintain/retain books of account or other records until the expiry of 72 months from the due date of furnishing of annual return, i.e., 31st December for the year pertaining to such accounts and records.
It may be noted that a registered person, who is a party to an appeal or revision or any other proceedings before any Appellate Authority or Revisional Authority or Appellate Tribunal or court, whether filed by him or by the Commissioner, or is under investigation for an offence under Chapter XIX, shall retain the books of account and oth

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Liability CGST A/c,
* Electronic Liability SGST A/c,
* Electronic Liability IGST A/c.
* Electronic Liability Compensation Cess A/c
Total
XXX
Non-Current Assets
Current Assets-
* Input CGST A/c,
* Input SGST A/c,
* Input IGST A/c,
* Input Compensation Cess A/c
* Provisional ITC CGST A/c,
* Provisional ITC SGST A/c,
* Provisional ITC IGST A/c,
* Provisional ITC Compensation Cess A/c
* Electronic Credit CGST A/c,
* Electronic Credit SGST A/c,
* Electronic Credit IGST A/c,
* Electronic Credit Compensation Cess A/c
* Electronic Cash CGST A/c,
* Electronic Cash SGST A/c,
* Electronic Cash IGST A/c,
* Electronic Cash Compensation Cess A/c
* Cash/Bank A/c
Total
XXX
Statement of Profit and Loss
Outward Supply-
* Local B2B Supply A/c,
* Local B2C Supply A/c,
* Interstate B2B Supply A/c,
* Interstate B2C Supply A/c,
* Export Supply A/c,
* Exempt Supply A/c,
* E-Com Supply A/c.
Inward Supply-
* Purchases A/c,
* Exempt Purchases A/

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M/s. Fosroc Chemicals (India) Private Limited Versus Union of India And 3 Others
GST
2018 (8) TMI 1322 – ALLAHABAD HIGH COURT – 2018 (15) G. S. T. L. 521 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 13-4-2018
WRIT TAX No. – 636 of 2018
GST
Mr. Krishna Murari And Mr. Ashok Kumar, JJ.
For The Petitioner : Rishi Raj Kapoor
For The Respondent : A.S.G.I., C.S.C.
ORDER
Heard learned counsel for the petitioner and Sri C.B. Tripathi, Special Counsel for the State of U.P.
The petitioner is aggrieved by the seizure of his goods vide impugned order dated 29.03.2018 passed under Section 129(1) of the U.P. Goods and Services Tax Act, 2017 (hereinafter referred to as the U.P.G.S.T.).
The submission is that as admittedly the seize

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G.S.T. in respect to matters relating to inspection, search and seizure under the said Act.
Rule 138 of the Rules framed under the Central G.S.T. provides that till such time E-Way bill system is developed and approved by the Council, the Government by notification may specify the documents which are to be carried with the consignment of goods. In exercise of the said power a notification has been issued which provides for the carrying of E-Way bill with the goods in transit but the same is applicable has been enforced w.e.f. 1st February, 2018 and not before.
Simultaneously, U.P.G.S.T. also contains similar provisions and in exercise of the power under Rule 138 of the Rules framed under the U.P.G.S.T. by a notification dated 21.07.2017

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M/s. Cassel Research Laboratories (P) Ltd. Versus Commissioner of GST & Central Excise Chennai South Commissionerate
Service Tax
2018 (7) TMI 266 – CESTAT CHENNAI – TMI
CESTAT CHENNAI – AT
Dated:- 13-4-2018
ST/Misc. /41108/2017 and ST/445/2011 – Final Order No. 41174 / 2018
Service Tax
Ms. Sulekha Beevi C.S., Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical)
Ms. S. Sridevi, Advocate for the Appellant
Shri S. Govindarajan, AC (AR) for the Respondent
ORDER
The appellants are manufacturers of P or P medicaments and are registered with the Service Tax Department under various services. The appellant obtained registration under 'Technical Inspection and Certification Service' and were paying service tax under the said category for services rendered to their customer M/s. Lessac Research Laboratories (P) Ltd. Puducherry (herein referred to as LRL). Later on, on receiving legal advice that the services rendered to LRL does not amount to Technical Ins

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ervice would only be covered by the taxable service of Technical Inspection and Certification Service. The appellant is not a Technical and Certification Agency and therefore the service does not fall under the said category. The appellant had contested the show cause notice stating that if at all the activity would fall only under Scientific or Technical Consultancy service. She argued that the demand has been confirmed by both the authorities merely on the ground that the appellant had initially paid the service tax under Technical Inspection and Certification Service. The appellant being a manufacturer of P&P medicaments is not a Technical and Certification Agency and therefore the demand under the said category is without any legal basis.
3. The ld. AR Shri S. Govindarajan reiterated the findings in the impugned order. He adverted to the discussions made by the Commissioner (Appeals) and submitted that the appellant have been paying service tax for a prolonged period of two years

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l inspection and certification”.
Section 65(105)(zzi), “Taxable Service” means any service provided or to be provided
To any person, by a technical inspection and certification agency, in relation to technical inspection and certification
6 From the definition, it is clear that when services of Technical Inspection and Certification Service is rendered to any person by a Technical and Certification Agency, the same would be taxable under the category of Technical Inspection and Certification Service. In the present case, the appellant is not a Technical and Certification Agency but is a manufacturer of P&P medicaments. There is nothing in the show cause notice as to how the appellant would fit into the classification of Technical Inspection and Certification Service. In para 6 of the show cause notice, it is alleged that the appellant have not disclosed their receipts in regard to technical consulting fees. Thus, the department themselves are not fully clear whether the appellants a

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Second Amendment (2018) to SGST Rules
12/2018-State Tax Dated:- 13-4-2018 Mizoram SGST
GST – States
Mizoram SGST
Mizoram SGST
No.J.21011/1/2017-TAX/Vol-II/Pt
GOVERNMENT OF MIZORAM
TAXATION DEPARTMENT
NOTIFICTION
No. 12/ 2018 – State Tax
Dated Aizawl, the 13th April, 2018
In exercise of the powers conferred by section 164 of the Mizoram Goods and Services Tax Act, 2017 (6 of 2017), the Government of Mizoram hereby makes the following rules further to amend the Mizoram Goods and Services Tax Rules, 2017, namely:-
(1) These rules may be called the Mizoram Goods and Services Tax (Second Amendment) Rules, 2018.
(2) Save as otherwise provided in these rules, they shall come into force on such date as the Government of Mizoram may, by notification in the Official Gazette, appoint.
(i) with effect from the date of publication of this notification in the Official Gazette, in rule 117, in sub-rule (4), in clause (b), for sub-clause (iii), the following shall be substit

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lating to the said goods as specified inPart A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal:
Provided that the transporter, on an authorization received from the registered person, may furnish information in Part A of FORM GST EWB-01, electronically, on the common portal along with such other information as may be required on the common portal and a unique number will be generated on the said portal:
Provided further that where the goods to be transported are supplied through an e-commerce operator or a courier agency, on an authorization received from the consignor, the information in Part A of FORM GST EWB-01 may be furnished by such e-commerce operator or courier agency and a unique number will be generated on the said portal:
Provided also that where goods are sent by a principal located in one State or Union Territory to a job worker

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

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

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

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

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rule, the “relevant date” shall mean the date on which the e-way bill has been generated and the period of validity shall be counted from the time at which the e-way bill has been generated and each day shall be counted as the period expiring at midnight of the day immediately following the date of generation of e-way bill.
Explanation 2.- For the purposes of this rule, the expression “Over Dimensional Cargo” shall mean a cargo carried as a single indivisible unit and which exceeds the dimensional limits prescribed in rule 93 of the Central Motor Vehicle Rules, 1989, made under the Motor Vehicles Act, 1988 (59 of 1988).
(11) The details of the e-way bill generated under this rule shall be made available to the-
(a) supplier, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the recipient or the transporter; or
(b) recipient, if registered, where the information in Part A of FORM GST EWB-01 has been furnished by the supplier or the transport

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goods are being transported from the customs port, airport, air cargo complex and land customs station to an inland container depot or a container freight station for clearance by Customs;
(d) in respect of movement of such goods and within such areas in the State and for values not exceeding such amount as the Commissioner of State Tax, in consultation with the Principal Chief Commissioner/Chief Commissioner of Central Tax, may, subject to conditions that may be specified, notify;
(e) where the goods other than de-oiled cake being transported, are specified in the Schedule appended to notification No. 2/2017- State tax (Rate) dated the 7th July, 2017 published in the Mizoram Gazette, Extraordinary, Vol-XLVI, Issue No.317 dated the 11th July, 2017 as amended from time to time;
(f) where the goods being transported are alcoholic liquor for human consumption, petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas or aviation turbine fuel;
(g) whe

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ods by rail;
(m) where empty cargo containers are being transported; and
(n) where the goods are being transported upto a distance of twenty kilometers from the place of the business of the consignor to a weighbridge for weighment or from the weighbridge back to the place of the business of the said consignor subject to the condition that the movement of goods is accompanied by a delivery challan issued in accordance with rule 55;
Explanation.- The facility of generation, cancellation, updation and assignment of e-way bill shall be made available through SMS to the supplier, recipient and the transporter, as the case may be.
ANNEXURE
[(See rule 138 (14)]
Sr. No.
Description of Goods
(1)
(2)
1.
Liquefied Petroleum Gas for supply to household and non domestic exempted category (NDEC) customers
2.
Kerosene oil sold under PDS
3.
Postal baggage transported by Department of Posts
4.
Natural or cultured pearls and precious or semi-precious stones; precious metals and metals

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id portal, a tax invoice issued by him in FORM GST INV-1 and produce the same for verification by the proper officer inlieu of the tax invoice and such number shall be valid for a period of thirty days from the date of uploading.
(3) Where the registered person uploads the invoice under sub-rule (2), the information in Part A of FORM GST EWB-01 shall be auto-populated by the common portal on the basis of the information furnished in FORM GST INV-1.
(4) The Commissioner may, by notification, require a class of transporters to obtain a unique Radio Frequency Identification Device and get the said device embedded on to the conveyance and map the e-way bill to the Radio Frequency Identification Device prior to the movement of goods.
(5) Notwithstanding anything contained in clause (b) of sub-rule (1), where circumstances so warrant, the Commissioner may, by notification, require the person-in-charge of the conveyance to carry the following documents instead of the e-way bill
(a) tax

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ed that on receipt of specific information on evasion of tax, physical verification of a specific conveyance can also be carried out by any other officer after obtaining necessary approval of the Commissioner or an officer authorised by him in this behalf.”.
(v) for rule 138C, the following rule shall be substituted, namely:-
“138C.Inspection and verification of goods.- (1) A summary report of every inspection of goods in transit shall be recorded online by the proper officer in Part A of FORM GST EWB-03 within twenty four hours of inspection and the final report in Part B of FORM GST EWB-03 shall be recorded within three days of such inspection.
(2) Where the physical verification of goods being transported on any conveyance has been done during transit at one place within the State or Union territory or in any other State or Union territory, no further physical verification of the said conveyance shall be carried out again in the State or union territory, unless a specific inform

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stration No./Nepal or Bhutan Vehicle Registration No.
Notes:
1. HSN Code in column A.8 shall be indicated at minimum two digit level for taxpayers having annual turnover upto five crore rupees in the preceding financial year and at four digit level for taxpayers having annual turnover above five crore rupees in the preceding financial year.
2. Document Number may be of Tax Invoice, Bill of Supply, Delivery Challan or Bill of Entry.
3. Transport Document number indicates Goods Receipt Number or Railway Receipt Number or Forwarding Note number or Parcel way bill number issued by railways or Airway Bill Number or Bill of Lading Number.
4. Place of Delivery shall indicate the PIN Code of place of delivery.
5. Place of dispatch shall indicate the PIN Code of place of dispatch.
6. Where the supplier or the recipient is not registered, then the letters “URP” are to be filled-in in column A.1 or, as the case may be, A.3.
7. Reason for Transportation shall be chosen from one of the

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oods
Tax payable
Integrated tax
Central tax
State or Union territory tax
Cess
Penalty payable
Integrated tax
Central tax
State or Union territory tax
Cess
Details of Notice
Date
Number
Summary of findings
FORM GST EWB-04
(See rule 138D)
Report of detention
E-Way Bill Number
Approximate Location of detention
Period of detention
Name of Officer in-charge
(if known)
Date
Time
FORM GST INV – 1
(See rule 138A)
Generation of Invoice Reference Number
IRN:
Date:
Details of Supplier
GSTIN
Legal Name
Trade name, if any
Address
Serial No. of Invoice
Date of Invoice
Details of Recipient (Billed to)
Details of Consignee (Shipped to)
GSTIN or UIN, if available
Name
Address
State (Name and Code)
Type of supply –
B to B supply
B to C supply
Attracts Reverse Charge
Attracts TCS
GSTIN of operator
Attracts TDS
GSTIN of TDS Authority
Export
Supplies made to SEZ
Deemed export
Serial Number
Description of Goods
HS

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Mohd. Yunush Versus State Of U.P. And 3 Others
GST
2018 (5) TMI 1282 – ALLAHABAD HIGH COURT – 2018 (12) G. S. T. L. 242 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 13-4-2018
WRIT – C No. – 6392 of 2018
GST
Mr. Amreshwar Pratap Sahi And Mr. Shashi Kant, JJ.
For The Petitioner : Achint Ranjan Singh,Ramesh Singh
For The Respondent : C.S.C., C. K. Parekh
ORDER
Heard Sri Ramesh Singh, learned counsel for petitioner, Sri C.K. Parekh, learned counsel appearing for respondent no. 2-Nagar Nigam, Saharanpur and learned Standing Counsel for respondent nos. 1, 3 and 4.
The petitioner who has entered into a contract upon an auction for realisation of ground rent from a Fair commencing from 31st August, 2017 for a month, has assailed the recovery certificate issued to him for deposit of Goods and Service Tax (hereinafter referred to as “G.S.T.”) from the petitioner in terms of U.P. Goods and Service Tax Act, 2017 (hereinafter referred to as “the Act, 2017”). Recovery is bein

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le from the contractor and he has referred to the standard form of agreement also mentioned in the advertisement where clause 4 thereof recites the liability of the contractor to make the payment under the Act, 2017. He therefore, submits that the tax payable is over and above the amount of consideration under the contract and hence, recovery has been rightly issued against the petitioner.
The contention therefore is that even assuming that the Nagar Nigam ought to have deducted the said amount, but the fact in this case is that the entire security amount which has been deposited by the petitioner in terms of the contract has been adjusted towards the amount of consideration under the contract as a result whereof payment of G.S.T. remains over due.
Sri Parekh has also informed the Court that as on date after making adjustment from the amount already due to the petitioner, it is only the G.S.T. to the tune of Rs. 3,24,000/- which is now to be realised from the petitioner. In essence,

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refer to the provisions that are applicable to the controversy under the Act, 2017 for recovery of tax. Such taxes are now chargeable in relation to the service rendered in view of the Constitutional mandate under Article 366 of the Constitution of India read with sub Article 12A read with Article 26A.
The Act, 2017 defines the word “local authority” under Section 2(69) of Act, 2017 which includes Municipal Corporations constituted in terms of Article 243 (P) of the Constitution of India. The respondent Nagar Nigam is an authority so constituted. Section 2(91) defines 'Proper Officer' who is the Commissioner of the Taxing Department or an officer nominated by him to discharge such functions. Section 7(1a) and Section 7(2b) of Act, 2017 defines the scope of supply under Chapter III of Levy and Collection of Taxes. There is no dispute that the transaction between the petitioner and the respondent Nagar Nigam falls within the scope of such 'supply'.
The only dispute is t

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isions of that sub-section.
It is therefore, undisputed that there is a provision of recovery, provided there is an agreement between the parties. In the present case also there is no dispute that such an agreement exists.
Sri Parekh has then invited attention of the Court to Rule 143 of Chapter 18 of U.P. Goods and Services Tax Rules, 2017 (hereinafter referred to as “the Rules, 2017”) which indicates the manner in which the deductions by the “Specified Officer” have to be made and according to said definition it would include the Officer of a “Local Authority”. The aforesaid Rules therefore obligates the Specified Officer of the Nagar Nigam to make such deductions.
The aforesaid scheme as indicated above thus, obligates the Specified Officer to make deductions and in the event of default the Proper Officer of the Taxing Department can proceed to issue certificate on the strength whereof the Collector can issue a recovery citation for realisation of the tax due as arrears of land r

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VSL Alloys (India) Pvt. Ltd. Versus State Of U.P. And Another
GST
2018 (5) TMI 455 – ALLAHABAD HIGH COURT – 2018 (17) G. S. T. L. 191 (All.) , [2018] 53 G S.T.R. 248 (All)
ALLAHABAD HIGH COURT – HC
Dated:- 13-4-2018
WRIT TAX No. – 637 of 2018
GST
Krishna Murari, and Ashok Kumar, JJ.
Counsel for Petitioner:- Amit Mahajan
Counsel for Respondent:- C.S.C.
(Per: Hon'ble Ashok Kumar, J.)
We have heard the learned counsel for the petitioner and Sri C.B. Tripathi, learned Special Counsel for the State.
Brief facts of the case are that the petitioner is a private limited company and is engaged in manufacture and supply as well as export of industrial SS Tube, fittings and pipe fittings etc. The petitioner is registered under the provision of GST. The petitioner's office is situated at Industrial Area Sahibabad, District Ghaziabad. An order has been received by the petitioner from one M/s Kansara Laljibhai Mohanlal, 7, Parsana Society, R.K. Watch Stree, 50 Feet

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ing the goods, the vehicle proceeded at about 8.33 P.M. on 07.04.2018 and the vehicle has procured a Kata Purchi and movement at about 9.20 P.M. from Sahibabad towards its destination namely Rajkot, Gujarat. During the course of transportation from Sahibabad i.e. from the factory of the petitioner upto the transporter, the vehicle has been intercepted at Mohan Nagar, Ghaziabad on 08.04.2018 by the respondent no.2, the Assistant Commissioner (in-charge), Commercial Tax, Mobile Squad, Unit-III, Ghaziabad at 12.15 A.M. and respondent no.2 issued interception memo which was drawn by the respondent no.2 under Section 129(1) of the UPGST Act, 2017 (hereinafter referred as 'the Act'). The respondent no.2 was of the opinion that the goods, namely Stainless Steel welded pipes which were found loaded on the vehicle during intra-state transportation, were accompanied with e-way bill having Unique Code, however, Part-B of the said e-way bill was not filled up and no vehicle number has been

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the consignor and consignee are registered dealers and IGST @ 18% has been charged by the petitioner and that petitioner is registered bonafide dealer, therefore, objection with regard to non filling Part-B of e-way bill is nothing but clearly an abuse of process of law.
The contention of the petitioner before the authority below was that there was no intention on the part of the petitioner to evade payment of tax during the course of intra-state sale of the goods. The contention of the petitioner before the authority below as well as before this Court is that, in fact, the goods loaded in vehicle No. U.P. 16-AT 5489 was only for the purpose of transporting the goods from petitioner factory up to transport company, and as such, the petitioner at the time of generation of national e-way bill could not fill the vehicle number in Part-B due to the fact and for the reason that after unloading of the goods at the transport company the same were to be loaded in another vehicle which was su

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art A of FORM GST EWB-01:
Provided that the registered person or, the transporter may, at his option, generated and carry the e-way bill even if the value of the consignment is less than fifty thousand rupees.
Provided further that where the movement is caused by an unregistered person either in his own conveyance or a hired one or through a transporter, he or the transporter may, at their option, generate the e-way bill in FORM GST EWB-01 on the common portal in the manner specified in this rule:
Provided also that where the goods are transported for a distance of upto fifty kilometres within the State or Union Territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the recipient, or as the case may be, the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01.
Explanation 1.- For the purposes of this sub-rule, where the goods are supplied by an unregistered supplier

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fore, the petitioner has not committed any error of law at the time of downloading e-way bill.
On the other hand, learned counsel for the respondent, though has supported the order of seizure but, has admitted that all the requisite documents were accompanied the goods when the vehicle has been intercepted and seizure order has been passed, but the Part-B of the e-way bill was found unfilled. He has also accepted that prima facie there appears no intention to evade payment of tax for the reason that in the invoice the petitioner has charged IGST @ 18%.
We have heard the learned counsel for the respective parties and perused the documents which are enclosed along with the writ petition.
We are in full agreement with the submission of learned counsel for the petitioner and after perusal of the relevant documents, we find 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

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M/s. Teesta Distributors Versus State of Kerala,
GST
2018 (4) TMI 1009 – KERLA HIGH COURT – 2018 (12) G. S. T. L. 145 (Ker.)
KERLA HIGH COURT – HC
Dated:- 13-4-2018
WP(C). No. 27158 of 2017
GST
A. MUHAMED MUSTAQUE, J.
Petitioner: By Sri. N. Venkat Raman, Senior Advocate. Advs. Sri. A. Kumar, Sri. P.J. Anil Kumar, Smt. Mini, Sri. P.S. Sree Prasad.
Respondent: R1 to R10 by Sri. Pallav Shishodia, Senior Advocate. Adv. Sri. G. Prakash. Spl. Govt. Pleader (Taxes) Sri. C.E. Unnikrishnan. R11 & R12 by Sri. P.S. Raman, Senior Advocate. Adv. Sri. Terry v. James.
J U D G M E N T
1. This case raises an important question on the scope of exercise of power by a State invoking its police power as well as tax regime to interfere with the sale of other State lotteries.
2. The State of Kerala is not a lottery free zone, means to say that, there is no prohibition of sale of lottery. The first petitioner is a distributor of lottery, organised and conducted by the Government of

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in terms of Section 4 of the Lotteries (Regulation) Act, 1998 read with Rule 3(3) of the Lotteries (Regulation) Rules, 2010 on the launch of their Lottery Scheme. Ext.P10 is the said notification. In the said notification, it was mentioned that, first draw would commence on 7.8.2017 at 3 pm onwards. Based on such notification, the State of Mizoram decided to market and sell Mizoram State Lotteries in the State of Kerala. Prior intimation was also given to the Chief Secretary of Kerala by communication dated 21.7.2017. Ext.P11 is the said communication. According to the petitioners, this intimation was given in compliance of Rule 3(3) of the Lotteries (Regulation) Rules. It is stated in the writ petition that the said communication also included all the information required under the law by giving details such as names of selling agents/distributor, name of the Lottery Scheme, number of tickets printed, gross value of tickets etc.
However, this notification was superseded by another n

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Regulation) Rules, the organizing State shall in advance, by a notification, provide information of every lottery conducted by them. In case, the organizing State decides to organise more than one lottery, the procedure as provided under sub-rule 3 of Rule 3 will have to be followed for every such lottery. [See Rule 3(4)].
6. Under Section 4(h) of the Lotteries (Regulation) Act no lottery shall have more than one draw in a week. The Mizoram lottery introduced in the State of Kerala consists of different lotteries having draw from Monday to Sunday. That means, different sets of lotteries are organised for sale each day.  
7. On 28/7/2017, the petitioners were served with a notice (Ext.P26) issued by the Deputy Commissioner of State Goods & Services Tax Department, Kerala, directing the petitioners to do the following, within 24 hours of receipt of notice:
“1.You are required to prove that the lottery to be held is in compliance of Section 3 4 of the Lotteries (Regulation) Act, 1

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ent, the Deputy Commissioner appears to have moved against the petitioners based on the Rules to come to a conclusion that the lottery tickets stocked for sale were in violation of the Lotteries (Regulation) Act. The petitioners assailed the validity of such Rules under the Kerala State Goods and Services Tax Act along with other prayers in the writ petition. The petitioners also challenged notice issued by the Deputy Commissioner directing them to comply with the matters mentioned therein. This notice is Ext.P26. The dispute in this writ petition essentially rests on the validity of the rules and the power exercised by the Deputy Commissioner of Tax Department relatable to the Rules.
9. Apart from the challenge as above, the petitioners also have raised a contention that the officials under the Kerala State GST Act are not entitled to invoke the provisions of the Kerala State GST Act against the petitioners for sale of lotteries as the sale of lotteries is governed by Integrated Good

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tention that the lottery scheme notified by the State of Mizoram and the sale of tickets in the State of Kerala would attract penal provisions of the Lotteries (Regulation) Act. The Government also suspect unauthorised tickets being sold without knowledge of the Mizoram State. It is pointed out Nos.80 lakhs of lottery tickets are printed for each draw and it is impossible to match the revenue generated from sale with the price offered. The State made an attempt to demonstrate that the revenue for sale has no match with gross price money. It is further pointed out that even by rough estimate it would go to show that the sale cannot be conducted without huge loss being suffered by the Mizoram State. It is also pointed out that supply of lottery was done by an officer of the Mizoram Government in the State of Kerala and supply was within Kerala and therefore, the transaction is intra-State Supply coming under the purview of Section 8 of IGST Act. It was further submitted that since the pe

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the organizing State for sale;
(d) The tickets issued for sale;
(e) The tickets sold,
(f) Tickets which remain unsold at the time of the draw;
(g) Details of the prize winning tickets along with the amount of prize or prizes prizes in respect of each draw, name and address of winners;
(h) Proof of despatch and receipt of unsold tickets by the organizing State, in case the licensee is a distributor or selling agent;
(i) proof of payment of sale proceeds of the lottery to the organizing State or deposit in the Public Ledger Account of the organizing State in case the licensee is a distributor of selling agent; and the same shall be produced for verification by any authority under this Ordinance.”
13. Rule 56(20A) reads as follows:
“Rule 56(2OA): Every agent or distributor selling lottery tickets or a selling agent of lotteries authorised by the State and who is registered under the Ordinance, shall file the information return in Annexure before the Deputy Commissioner of S

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which the details in Annexures filed shall be produced before the Deputy Commissioner of State Tax, Thiruvananthapuram, Deputy Commissioner of State Tax, Ernakulam or Deputy Commissioner of State Tax, Palakkad, as the case may be, as and when it is received from the organizing State for verification;
(b) The physical verification of the details submitted in Annexure shall be done by the Deputy Commissioner of State Tax, Thiruvananthapuram, Deputy Commissioner of State Tax, Ernakulam or Deputy Commissioner of State Tax, Palakkad, as the case may be, during the actual retail sale of tickets;
(c) The physical verification of unsold tickets shall be done by the Deputy Commissioner of State Tax, Thiruvananthapuram, Deputy Commissioner of State Tax, Ernakulam or Deputy Commissioner of State Tax, Palakkad, as the case may be,
(d) Violations of the Lotteries (Regulation) Act, 1998 (Central Act 17 of 1998) and the Rules made thereunder, if any, detected by any authority shall be informed

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ion on the right of the petitioners to carryout legitimate business in lottery of the State of Mizoram in the context of Ext.P26 issued by the Deputy Commissioner of State GST Department, Kerala. Though various arguments have been raised as to the power of the State Officials to proceed against the petitioners under the Kerala State GST Act, this Court cannot decide such issues without the same being considered by a primary authority which issued such notices. Merely because this court was addressed and called upon to decide certain issues, which primarily need to be considered by a primary authority, as the court's jurisdiction on such matters can be exercised only by judicial review, the court must resist from pre-empting the primary authority deciding the matter after hearing the petitioners. Therefore, the question whether the petitioners' activities would fall within the IGST regime or Kerala State GST regime will have to be addressed by the primary authority after hearing

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ion to challenge the actions of the respondents. The petitioners have challenged vires of certain provisions in the context of Ext.P26. Therefore, in such circumstances it is appropriate to proceed further after adverting to the cause of action of the petitioners to approach this Court:
18. Point i. Whether cause of action is alive or not.
According to the learned Senior Counsel appearing for the Government, the petitioners' main challenge is against a notice issued under the Kerala State GST dated 28.7.2017 and consideration of Ext.P26 would arise only if Mizoram Government had an intention to conduct sale of lottery in the State. The learned Senior Counsel particularly referred to the Ext.R11(g) produced along with the counter affidavit filed on behalf of the State of Mizoram and submits that the lottery introduced in the State was withdrawn with immediate effect. It is pointed out that this notification was published through Gazette. The learned Senior Counsel further pointed

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f lottery in the State will not hold good. If the Government is having the power to withdraw the notification, it also has the power to cancel such decision. That power is traceable under Section 21 of the General Clauses Act, 1897. Further, it is also open for the Mizoram Government to issue a fresh notification, if so warranted. Considering the stand of the Mizoram Government that they want to sell the lottery tickets in Kerala, the question on the cause of action also has to be considered based on Ext.P26 as well. That question is whether Ext.P26 poses any threat to the petitioners from selling the ticket in the State or not. According to this Court, an examination of the matter is required in the light of threatened action against the petitioners as referred under Ext.P26. It may be appropriate to mention that, in the notice itself the petitioners were directed not to proceed further until compliance with statutory provisions. Therefore, this Court need to examine whether the petit

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ential legislative power etc. The practical difficulty therefore, is a matter of explanation before the authority to whom such compliance is required to be reported. Therefore, challenge on this ground must fail.  
23. Point iii. Whether the Government is justified using police power to interfere with the lottery business in the State through the officials under the Tax Department.
The petitioners challenge Rule 56(20A)(d) of the Kerala State GST Rules. The petitioners' case is that Lotteries (Regulation) Act is a self contained Act and the Parliament alone is competent to legislate in respect of the offences for violation of Lotteries (Regulation) Act.
The police power referred under Section 7 of Lotteries (Regulation) Act therefore, can be exercised only in accordance with the provisions under the Lotteries (Regulation) Act and the State has no power to legislate on such subject on which the Parliament alone has the power to legislate. It is pointed out that self assumed

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nd Concurrent List subject to constitutional limitation. Therefore, the State would have the power depend upon the competency to legislate on the subject. Since lottery subject falls exclusively in the domain of the Parliament, the State cannot confer such power on any authority under the Kerala State GST to enter a satisfaction as to the violations of the Lotteries (Regulation) Act. Therefore, the above rule has to be struck down.
25. Lotteries (Regulation) Act deals with the manner in which violation of lottery will have to be dealt with. Section 8 of the Lotteries (Regulation) Act states that the offences under the said Act shall be cognizable and non bailable. Therefore, the police will have to enter a satisfaction as to the violation before proceeding against the offenders. The police cannot act merely based on the information given by the Tax officials. The police power in relation to the violation of the provisions of Lotteries Regulation can be exercised only in accordance wit

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itioners challenge Ext.P26, particularly referring to the stipulations mentioned therein for compliance of certain statutory provisions. The Court has to decide what is the scope of public law remedy in the context of challenge made by the petitioners. It is apparent that the petitioners apprehend the registration granted to them under the Kerala State GST Act will be cancelled, if the petitioners fail to comply with such demand as made in Ext.P6. It is particularly to be noted that the petitioners were prevented from proceeding further until compliance as demanded in Ext.P26 is ensured. In regard to the first direction that the petitioners should prove that lottery to be held is in compliance with Section 3 & 4 of the Lotteries (Regulation) Act is beyond the authority of the Deputy Commissioner. The State is apparently making such demand based on its past experience with the State of Sikkim Lottery. The State highlighted that Sikkim Lottery showed the sale of 96 crores in a year as ag

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State GST Rules, 2017.
27. The point to be considered is whether the petitioners are required to comply with other directions in Ext.P26 for proceeding with the business in lottery. The Rules are not intended to regulate the activities of lottery and it cannot also be so. The Rules cannot be interpreted in such a way to regulate the sale of lottery. If the Rules accorded interpretation to regulate lottery, certainly, it will amount to encroachment of the power of the Parliament to legislate. The Rules thus, can be interpreted only in such a way to sub serve its object under the GST Act and Rules. It is nothing but determination and collection of tax. Chapter VIII of Kerala State GST Act refers to maintenance of accounts and other records. Chapter IX refers to returns. The very purpose of these provisions is to ensure a complete assessment, as required under Chapter XII.
The powers conferred upon the officials under Chapter XIV for inspection, search, seizure and arrest is to detect

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stribution of face value for price and commission, tax administration expenses etc.
28. Chapter VII of the Kerala State GST Rules only refers about maintenance of accounts by registered persons. The very object of such records is to complete assessment. The petitioners can highlight practical difficulties in keeping such records. For example, the petitioners highlight their grievances in relation to sub rule 19(g) & (i) to Rule 56. The petitioners gave explanation as follows in regard to their inability to maintain records for such requirement:
(g) details of the prize winning tickets along with the amount of prize or prizes in respect of each draw, name and address of winners;
These details would be maintained by the organizing state as the claims upto Rs. 10000 are lodged by the winners directly with the state and the final count of all the prizes would be available only with the organizing state. So also, the details of the name and address of the winners over Rs. 10000 are only

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h the distributor.
29. It is to be noted that under Rule 3(16) of Lotteries (Regulation) Rules, the Organizing State shall keep the records of the tickets printed, tickets issued for sale, tickets sold, tickets which remain unsold at the time of the draw, and the prize winning tickets along with the amount of prize or prizes in respect of each draw, in the manner prescribed by the Organizing State. It is also the duty of the Organizing State to ensure that the proceeds of the sale of lottery tickets, as received from the distributors or selling agents or any other source, are deposited in the Public Ledger Account or in the Consolidated Fund of the Organizing State. [See Rule 3(17)].  
30. In regard to Rule 56(20A) of the Kerala State GST Rules, the petitioners also explained the manner in which the provisions can be complied. This Court, in fact, has already taken a view that 56(20A)(iii)(d) is beyond the rule making power of the Government under Kerala State GST regime. The pe

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ners' activities have come to a halt consequent upon Ext.P26. The State also insisted that the petitioners need to maintain such records for carrying out the activities of sale of lotteries. In those circumstances, this Court has to decide the scope of interference for non compliance of maintaining records. Non compliance would not amount to contravention unless there is breach. Every non compliance is not a breach.   There must be a breach that is to say, violation of legal obligation. If rules itself are determinative of such violation, no doubt an action can be initiated on noting such violation. If such Rules postulate an enquiry, no action can be initiated without holding an enquiry. In such cases, breach would come into existence only after the enquiry. The petitioners have explained reasons for their inability to maintain such records. These Rules in fact, are Rules for completing assessments if the petitioners are having valid reasons for not maintaining the records, t

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ssion has no nexus to the levy of tax to be collected from the petitioners.  
32. As already adverted, compliance and non compliance of the Rules in the context have been considered when the petitioners are prevented from engaging in activities. The very object of such Rules is for proper assessment. Violation of Rules would depend upon satisfaction to be arrived in enquiry as to the compliance and non compliance. Rules adverted as above cannot be insisted as a pre condition to sell lottery tickets in the State. Therefore, compliance and non compliance would depend upon outcome of such enquiry. Rules as above are itself not determinative of violation. Such violation can be found out only after enquiry. Therefore, this Court is of the view that the petitioners should not be prevented from the sale of lottery for non compliance of Rules 56(19) and 56(20A) of the Kerala State GST Rules, in respect of which they have explained their practical difficulty in complying the same. In resp

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