Goods and Services Tax

M/s. KOTHAMANGALAM AGGREGATES Versus KERALA STATE ELECTRICITY BOARD VYDYUTHI BHAVAN
GST
2018 (5) TMI 365 – KERLA HIGH COURT – TMI
KERLA HIGH COURT – HC
Dated:- 6-4-2018
W. P. (C) Nos. 1112, 2221, 2450 & 4034 of 2018
GST
MR. SHAJI P.CHALY J.
BY ADVS.SRI.M.RAMESH CHANDER (SR.), SMT.K.A.SANJEETHA And SRI.BALU TOM
MR. ABHIJITH SURANA., R1 & R2 BY SRI.RAJU JOSEPH SENIOR ADVOCATE, BY SRI.GEORGEKUTTY MATHEW, SC, BY SRI.P.A.AHAMED, SC, R3 BY ADVS. SRI.BOBY MATHEW And SMT.K.MEERA
JUDGMENT
The captioned writ petitions are materially connected in respect of a tender invited by the 1st respondent, Kerala State Electricity Board for supply of 8M and 9M Pre Stressed Concrete Poles (PSC Poles) to the Electrical Circles under Southern and Central Region, for a period of two years, as per Ext.P1 notification dated 28.09.2017. The legal as well as factual contentions raised in the writ petitions are almost typical in nature. For the disposal of the writ petitions, I am relyi

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ocessing, for the reason that, for the manufacture of pre stress concrete poles, the rawmaterials required are cement, steel, coarse aggregates and fine aggregates. When the petitioner sells the PSC Poles to the Board, then GST is imposed, which is known as output GST. When the raw-materials are purchased, there is input credit of GST. However, the GST incurred by the petitioner at the time of purchase of the raw-materials shall be adjusted towards GST payable at the time of sale of Poles and net amount shall be paid to the Government. So also, the input tax credit varies from time to time based on the cost of raw-materials. It was highlighting the said aspect, Ext.P2 letter was issued. However, without hearing the petitioner, the Board issued Ext.P4 corrigendum dated 19.10.2017, informing that, no change in the clauses of tender documents is necessary.
3. It is the case of the petitioner that, as evident from Ext.P4 corrigendum, there is no change either in the general conditions of

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there is violation of the general conditions of contract and special conditions of contract. It is also the case of the petitioner that, the 3rd respondent has submitted documents which were not called for in the tender notice, and therefore, there is a clear violation.
5. Petitioner has produced Ext.P7 attachment given by the 3rd respondent, stating that he has quoted the price after giving the effect of GST credit, which according to the petitioner, is impermissible in accordance with the Instructions to the Bidders as well as the general conditions of contract and special conditions of contract. Therefore, according to the petitioner, the 3rd respondent has violated the basic conditions of the documents by which the 3rd respondent is not technically qualified to participate in the commercial bid. It is thus seeking the following reliefs, the writ petition is filed:
“i) Issue a writ of mandamus or other appropriate writ order or direction directing or compelling the respondents 1

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stated that, the writ petition is not maintainable, since as per the special conditions of contract, petitioner has agreed to approach the civil courts at Thiruvananthapuram in the event of disputes arising pertaining to the contract. Therefore, according to the said respondents, the writ petition is not maintainable under law. The averments contained in various paragraphs with respect to Clause No.B.20 'Taxes', of Ext.P3 special conditions of contract and the violation of the general conditions of contract and the issue with respect to the qualification of the 3rd respondent are all denied by the said respondents. According to the respondents, Clause B.20 is formulated in order to specify fair, logical and transparent conditions to suit their requirements while procuring materials. It is also clearly stipulated that the benefit of the input credit will be passed on to KSEBL as per Sec.171 of CGST Act, and in the very next sentence, it has been stated that, 'any reduction i

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conditions, evident from Ext. R1(a). From Ext. R1(a), it is evident that, in respect of 8m poles except for the Electrical Circle, Kattakkada, 3rd respondent is the lowest one. As far as 9m poles are concerned, except for Electrical Circles, Kollam, Kattakkada and Kottarakkara, the rate quoted by the 3rd respondent is the lowest. There is a marked difference of Rs. 9,63,35,681/-. If the tender is finalized, as per the above stated price bids, the respondents who are an agency or instrumentality of the State, will be benefited to the tune of Rs. 7.23 Crores. According to the respondents, the said amount is arrived at based on the difference in rates quoted by the 3rd respondent and the 2nd lowest, and where 3rd respondent is the L1 after taking into consideration the difference in amount wherever 3rd respondent is the L2, evident from Ext. R1(b). Therefore, according to the respondents, petitioners have not made out any case in order to secure the reliefs sought for in the writ petition

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and Shri. K. Jaju Babu, learned Senior Counsel for the petitioner in W.P.(C) No.2450 of 2018 and the other Advocates appearing for the petitioners in the other writ petitions, Sri. Raju Joseph, learned Senior Counsel appearing for respondents 1 and 2 and also the learned counsel appearing for the 3rd respondent. Perused the documents on record and the pleadings put forth by the respective parties.
11. The paramount contention advanced by learned Senior Counsel for the petitioners is that, as per the Bid specification, Part-I, Pre-qualification bid, Part-B, it was directed to send only the hard copies of agreement in Kerala Government stamp paper as per Appendix IV of General Conditions of Contract along with the Bid form (Part-III, Annexure-II) in Kerala Government stamp paper. But it is noticed that the 3rd respondent has submitted many other documents as hard copies, which discusses about price. It is also the contention that, mention of price details at any place other than the de

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e 14 of Section-A (Bid specifications Part-II, Instruction to Bidders), the indication of price anywhere else other than in price bid (BOQ) will render the tender invalid and will be liable to be rejected. Therefore, according to the learned Senior Counsel, Ext.P7 enclosure produced along with the bid is violative of clause 14. It is also the case of the learned Senior Counsel that, as per clause 15 of Section-A, conditional offers are liable to be rejected, and therefore, the bid submitted by the 3rd respondent ought to have been rejected by the Board. Other arguments are also advanced in tune with the pleadings made in the writ petition.
13. Yet another contention advanced is that, the 3rd respondent does not have sufficient water tanks for water dipped curing of poles as per the specification of KSEB Ltd., except one small tank they have constructed recently to satisfy the pre-qualification condition. That apart, it is contended that, the 3rd respondent is not having sufficient 9M

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ention for the petitioners that the 3rd respondent has violated the special conditions of contract and the only contention is that, they have added Ext.P7 along with the bid document, which is in no way causing any manner of prejudice to the petitioners or violating the terms and conditions contained in the special conditions of contract and the general conditions of contract.
16. It is also submitted that, so far as respondents 1 and 2 are concerned, when a price is quoted by the tenderer, it is the price in commensurate with the tender conditions, and therefore, even if Ext.P7 is submitted by the 3rd respondent, the same can be ignored by the Board. So also, it is contended that, the price difference is more than Rs. 7 crores from the second lowest bidder, as per the calculations specified and quoted above. Learned counsel appearing for the 3rd respondent also advanced contentions in tune with the contentions advanced by respondents 1 and 2.
17. I have evaluated the submissions mad

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implication with respect to the terms and conditions of the contract, and respondents 1 and 2 are entitled to overlook the same and consider the bid submitted by the respective parties.
18. Clause 14 of Section-A stipulated that: “The indication of price anywhere else other than in the price bid (BOQ) will render the bid invalid and will be liable to be rejected”. Therefore, the said stipulations are also specific and clear to the effect that, what is prohibited is indication of price anywhere else other than in the price bid. Therefore, merely Ext.P7 communication is issued by the 3rd respondent, “that the effect of GST credit to be availed has been taken in account in the quoted price” will not in any manner interferes with clauses 14 and 15 of Section-A. Clause 21 stipulates that: “No deviations will be accepted”. There is no case for the petitioners that there is any deviation on the part of the 3rd respondent from the Instructions to Bidders, special conditions of contract or ge

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ally agrees to bear will be admitted at the rates applicable at the time of delivery, on the basis of an undertaking on Kerala Government stamp paper worth Rs. 500/- from the supplier in the following format:
“P.O. No………………………..dated …………….(Name & address of firm) hereby agrees that if any dispute on payment of taxes from concerned tax authorities occurs in future, the firm shall indemnify the KSEB Limited from such liabilities and supplier will be liable for the additions, loss or cost on account of such discrepancies/dispute”. The benefit of input tax credit will be passed on to KSEB Limited as per Section 171 of CGST Act. Any reduction in rates of tax on any supply of goods or services or the benefit of input tax credit shall be passed in to the recipient by way of commensurate reduction in prices. KSEB Limited is a registered dealer under the Goods and Service Tax Act. GST identification Number (GSTIN) of KSEB Limited in 32AAECK2277NBZ1.”
21. So far

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values of Whole Sale Price Index Number for Manufacture of Basic Metals (published by IEEMA) and Consumer Price Index Number (published by the Department of Economics and Statistics) during the month under consideration, from its values on the due date of tender.
Price variation will be given for the poles supplied as per the monthly delivery schedule (monthly supply less than or equal to monthly target/allocation) at the rates applicable for the actual month of supply.
Price variation for the monthly supply in excess of the monthly target to meet the quarterly target will be applicable at the rate of actual month of supply or scheduled month of supply (within the quarter), whichever is lower.
Price variation will be given for the excess poles supplied in a quarter (poles supplied in excess of quarterly target) at the rates applicable for the actual month of supply, only if the supply is made as per the written allocation given by the respective consignees of the Electrical Ci

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onsidered opinion, the General Conditions of Contract will have to be taken into account and read along with the special conditions of contract. First of all, there is no price variation clause put forth by the 3rd respondent. As I pointed out earlier, in Ext.P7, the 3rd respondent has specified an aspect with respect to the GST billing. From Section-A Instructions to Bidders, it is evident that if any communication from a contractor is not acceptable to the Board, it can be ignored by the Board. Even though a case is projected by the petitioners that the tender offered by the 3rd respondent is subject to conditions of verification of the documents, it cannot be said that the tender made by the 3rd respondent is conditional in nature. It is also clear that no manner of prejudice is caused to the petitioners on that account, especially due to the fact that such a course of action adopted by the 3rd respondent is not egregiously violative of the tender conditions.
23. When this writ pet

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Saluja Transport Co Versus. CGST C.E And C. C-Bhopal
Service Tax
2018 (4) TMI 1243 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 6-4-2018
Appeal No. ST/52969-52974/2014(DB) – 51276-51281/2018
Service Tax
Mr. Justice (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member(Technical)
Shri Kumar Vikram, Ld. Advocate for the appellant
Shri G.R. Singh, DR for the Respondent
Per: Justice (Dr.) Satish Chandra:
1. The present appeal is filed against the Order – in – Original No. 6 – 11/201 2 dated 15/10/2012.
2. Brief facts of the case are that the appellant is providing services of shifting and transportation of the coal for M/s Western Coalfields Ltd from pitheads to railway sidings.
3. Such activiti

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act is not under dispute that the appellant provided the service of transportation of coal within the mining area to M/s. SECL and that such service receiver had deposited the service tax under the taxable category of goods transport agency service. Further, the show cause notice in this case was issued, seeking confirmation of Service Tax demand under cargo handling service, whereas both the authorities below have changed the classification of service and confirmed the Service Tax demand under different head of service i.e. mining service. It is evident that the authorities below have travelled beyond the scope of the show cause notice, which is not sustainable as per the settled principles of law enunciated by the judicial forum, which ar

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K.C. Pappu & Sons Versus State of Kerala, The Assistant Sales Tax Officer, State Good & Services Tax
GST
2018 (4) TMI 1216 – KERALA HIGH COURT – [2018] 2 GSTL 76 (Ker)
KERALA HIGH COURT – HC
Dated:- 6-4-2018
WP (C). No. 12152 of 2018
GST
P. B. Suresh Kumar, J.
For the Petitioner : Sri. Babu Paul
For the Respondent : Smt. Thushara James
JUDGMENT
Petitioner seeks release of the goods detained by the second respondent under Section 129 of the Central Goods and Services Tax

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M/s Lal Steels (P) Ltd. Versus The asst. Commissioner, State GST Department, Palakkad
GST
2018 (4) TMI 1143 – KERALA HIGH COURT – [2018] 2 GSTL 77 (Ker)
KERALA HIGH COURT – HC
Dated:- 6-4-2018
W. P. (C). No. 12059 of 2018
GST
MR. P. B. SURESH KUMAR, J.
For The Petitioner : Sri. Harisankar V. Menon Smt.Meera V. Menon Smt.K.Krishna
For The Respondents : Smt. Thushara James
JUDGMENT
Petitioner seeks release of the goods detained by the second respondent under Section 129

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Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports – Reg.
40/14/2018 Dated:- 6-4-2018 CGST – Circulars / Ordes
GST
Circular No. 40/14/2018-GST
F. No. 349/82/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
(GST Policy Wing)
***
New Delhi, April 6, 2018
To,
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners/ Commissioners of Central Tax (All) / The Principal Director Generals / Director Generals (All)
Madam/Sir,
Subject: Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports – Reg.
Various communications have been received from the field formations and e

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(ARN), is generated online.
d) Documents for LUT: No document needs to be physically submitted to the jurisdictional office for acceptance of LUT.
e) Acceptance of LUT/bond: An LUT shall be deemed to have been accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017-Central Tax, then the exporter's LUT will be liable for rejection. In case of rejection, the LUT shall be deemed to have been rejected ab initio.”
3. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.
4. Difficu

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Treatmemt of Rent/ hire of machinery
Query (Issue) Started By: – BIBHUTIBHUSAN PATTANAIK Dated:- 5-4-2018 Last Reply Date:- 7-4-2018 Goods and Services Tax – GST
Got 2 Replies
GST
Sir
sub-
A reg. dealer having machine want to let out his machine to a Reg dealer, how can i give effect in both parties
Reply By Ganeshan Kalyani:
The Reply:
Sec 7(a) of CGST Act, 2017 states as, " all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licen

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Validity of Letter of Undertaking (LUT)
Query (Issue) Started By: – Venukumar HJ Dated:- 5-4-2018 Last Reply Date:- 5-5-2018 Goods and Services Tax – GST
Got 6 Replies
GST
Dear All,
Please clarify me.
We are having letter of undertaking valid up to 30th June 2018. I read some where 2017-18 LUT is valid up to 31st March, 2018. for the year 2018-19, we have to apply for new LUT in April 2018 itself, still our old LUT valid till 30th June 2018.
Thanks,
Regards,
Venu
Reply By KASTURI SETHI:
The Reply:
If online facility in Common Portal System is operative, prefer apply afresh. Second choice is manual. Since LUT filed manually is valid till 30.6.18, no need to file afresh manually.
Manual filing is viable/required only in

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t further clarified that no documents are required to be physically submitted to the jurisdictional office for acceptance of LUT. The Circular also stated that if an exporter's LUT has been accepted and later if it was discovered that the exporter was ineligible to furnish a LUT in place of a bond, then the LUT will be liable for rejection and such LUT shall be deemed to have been rejected from the very beginning.
The Circular was issued upon receiving various queries from the field formations and exporters regarding a technical glitch that the LUTs submitted via online in FORM GST RFD-11 on the common portal were not visible to the jurisdictional officers of the Central Board of Indirect Taxes and Customs (CBIC) and of a few states.
Repl

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Court Directs First Respondent to Act Promptly on Advance Ruling u/s 97(1) of Kerala GST Act.
Case-Laws
GST
Inaction on the part of the first respondent in taking a decision – advance ruling

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Form C Usage Unaffected by GST: No Restriction to Six Items Under CST Act Section 8 & Rule 12.
Case-Laws
VAT and Sales Tax
The provisions of Section 8 of the CST Act, Rule 12 of CST (R&T) Rules and declaration Form C have not undergone any amendment after the implementation of the GST laws. There cannot be any occasion to restrict the usage of ‘C’ Form only for the purposes of re-sale of the six items mentioned in the amended definition of ‘goods’ in Section 2 (d) of the CST Act

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Refund of IGST on Export- Invoice mis-match Cases – Alternative Mechanism with Officer Interface
PUBLIC NOTICE NO. 11/2018 Dated:- 5-4-2018 Trade Notice
Customs
GOVERNMENT OF INDIA
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
OFFICE THE PRINCIPAL COMMISSIONER OF CUSTOMS (AIR CARGO)
NEW CUSTOM HOUSE, MEENAMBAKKAM, CHENNAI – 600027.
F. No.: S.Misc.29/2016-17- EDI-ACC
Dated: 26.02.2018
PUBLIC NOTICE NO. 11/2018
Subject: Regarding.
Kind attention of Exporters/ Customs Brokers, Industry Associations, Trading Public Other Stake holders is invited to Board's Circular no.05/2018-Customs dated 23.02.2018, wherein possible issues/ errors in Refund of IGST paid on exports is discussed. Numerous representations have been received from exporters / trade associations seeking resolution of various problems which have hindered the sanction of refund of IGST paid on exports. CBEC has issued Circular No 42 / 2017 dated 07-11-2017 which highlighted the common errors that hindered the

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icantly, exporters are still committing mistakes in the information furnished to (i) GSTN while filing GSTR 1 / Table 6A or GSTR 3B and (ii) Customs EDI system while filing Shipping Bill. The pre- requisites and precautions that need to be taken for successful processing of refund claims are as follows:
(i) Exporters have to file GSTR 3B with taxable value for export and IGST paid against exports indicated in appropriate fields.
(ii) Exporters have to file GSTR 1 or Table 6A for the exports made with correct details such as Invoice number, Taxable value. IGST paid, Shipping Bill number, Shipping Date and Port Code, Large number of exporters have filed incomplete GSTR 1 or Table 6A where shipping bill number or date or port code are missing. These records are not processed / forwarded to Customs by GSTN. E-mails have been sent to exporters asking them to correct their records through amendment process of GSTR 1 i.e through Table 9 of GSTR 1 of the following month.
(iii) The aggreg

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able 9 of GSTR 1 of the following month to amend the records of previous month so as to take care of issues mentioned in paras (ii) and (iii) above. In cases where exporters have already filed information through Table 9 of GSTR 1, the said information is being validated by GSTN. The validated information is expected to be forwarded by GSTN to Customs by mid-March 2018 for further processing.
(vi) The records (i.e GSTR 1 or Table 6A) which have been forwarded by GSTN to Customs after validations mentioned at (ii) and (iii) above are processed by the Customs EDI system. In cases where the information forwarded by GSTN tallies with the information furnished in Shipping bills, refunds are automatically sanctioned by Customs EDI system. As mentioned earlier, till date about Rs. 4000 Crore has been sanctioned as refund of IGST paid. 3
(vii) However, there are many instances where refunds are held up on Customs EDT system due to certain errors which have been clearly brought out in the C

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y link:
hops://www.icegate.g,ov.in/Download/v1.2_Advisory_Registration APPROVED.pdf
 Java set up for the DSC upload:
https://www. icep.ate.eov.in/Down load/JavaSetupForDSC.pdf
Once the registration is obtained, the exporters can check the status of IGST refunds associated with their exports and the corresponding error message, if any. This enquiry takes GSTIN Number, Port-code and Return Month as inputs and based on the input, Shipping Bill Number, Shipping Bill Date, Return Month, Invoice Number, Invoice Date, Response Code and Processed date is displayed as a result of the enquiry. The records displayed are those that have been received from GSTN and processed by the Customs Automated System.
(ix) The analysis of Customs data indicates that while most of the errors mentioned in para (vi) above are decreasing, the error mentioned at (c) in para (vii) is most prevalent. The error mentioned at (c) in para (vii) is about invoice mis-match. This error is because of the fa

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able 6A are correct though the said details provided in the shipping bill were at variance. It is pertinent to note that refund claims would be processed in only those cases where the error code is mentioned as SB005. Further, it may also be noted that all refunds shall continue to be credited electronically through the PFMS system, and no manual payment / cheque should be issued. The procedure for processing of IGST refund claims in these cases would be as follows:
a. The exporter shall provide a concordance table indicating mapping between GST invoices and corresponding Shipping Bill invoices, as annexed in support of the refund claim to the designated officer in the Custom house. A scanned copy of concordance table may also be sent to dedicated email address of Customs location from where exports took place.
b. Customs EDI system shall display list of all the invoices pertaining to such SBs vis-a-vis the invoice data received from GSTN. The officer shall verify the following:

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e refund is sanctioned shall be disabled in the system to prevent refund against same invoice in future.
f. Once refund is sanctioned by the officer, the shipping bills would be available for generating scroll as per normal process.
4. In order to ensure smooth operation of the prescribed procedure, this office has opened a dedicated “IGST Refund Cell” with phone no.044-22560346 and E-mail Id – pcomme7acccuschn@gov.in for the purpose of IGST refund.
5. This procedure is available only for Shipping Bills filed till 31st December 2017. Difficulties, if any, may be brought to the notice of the undersigned. It is again emphasized that Board is taking all possible steps to alleviate the difficulties associated with IGST refunds. However, ultimately it is the responsibility of the exporters to ensure careful and correct filing of returns for hassle free sanction of IGST refunds.
(N. PADMASRI)
COMMISSIONER OF CUSTOMS
COMMISSIONERATE VII (AIR CARGO)
=============
Document 1
follows:
A

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Implementation of revised Assessable value for IGST & GST Cess calculation-Instruction
PUBLIC NOTICE NO. 15/2018 Dated:- 5-4-2018 Trade Notice
Customs
GOVT. OF INDIA
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
O/o THE PRINCIPAL COMMISSIONER OF CUSTOMS
(CHENNAI-VII) NEW CUSTOM HOUSE, MEENAMBAKKAM, CHENNAI – 600027.
F. No.: S.Misc.29/2016-17- EDI-ACC
Dated: 05.04.2018
PUBLIC NOTICE NO. 15/2018
Sub: Reg.
<<<>>><<<>>>
Attention of Importers, Custom Brokers & Trade is invited towards amendments in Finance Bill,2018 to introduce new Sections 3(8A) and 3(10A) of Customs Tariff Act, 1975 to determine assessable value for calculation of IGST and GST Compensation Cess on Ex-Bond Clearance.
2. If the goods are sold to other perso

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M/s Maa Vindhyavasini Tobacco Private Ltd. Versus State of Up And 3 Others
GST
2018 (4) TMI 1630 – ALLAHABAD HIGH COURT – 2018 (19) G. S. T. L. 590 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 5-4-2018
WRIT TAX No. – 592 of 2018
GST
Mr Ashok Kumar And Krishna Murari, JJ.
For The Petitioner : Shubham Agrawal
For The Respondent : C. S. C. , A. S. G. I.
ORDER
Heard Sri Shubham Agrawal, learned counsel for the petitioner, Sri C.B. Tripathi, learned Standing Counsel for the respondent nos. 1,3 and 4 and Sri Anant Kumar Tiwari, learned counsel for the respondent no. 2.
By means of the present writ petition the petitioner has challenged the jurisdiction of the respondent nos. 1,3 and 4 as well as the the seizure of the co

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aged, till the time of the downloading of the E-Way Bill, the details with regard to the vehicle are not mentioned and the same are being mentioned subsequently after downloading the E-Way Bill in handwriting.
Seizing authority doubted the transaction on the basis of the hand written details of the vehicle number and has seized the goods as well as vehicle.
Heard learned counsel for the petitioner and learned counsel representing the opposite parties. With the consent of the parties the instant writ petition is decided finally without calling the counter affidavit.
We find no irregularity in the transaction in question, for the reason, that till the downloading of the E-Way Bill the transport company and the vehicle was not engaged and t

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Problems encountered in sanction of IGST refund Non-transmission of data from GSTN to Customs
PUBLIC NOTICE NO: 16/2018-19 Dated:- 5-4-2018 Trade Notice
Customs
OFFICE OF COMMISSIONER OF CUSTOMS, CUSTOM HOUSE, KANDLA
NEW CUSTOMS BLDG, NR. BALAJI TRMPLE KANDLA – 370 210 KUTCH, GUJRAT
Phone No. 02860-271468-469, FAX: 271467
Email:- kandlacustoms@gmail.com
F. No. S/20-72/PN/IGST REF/AG/2017-18
Kandla, dated: 05.04.2018
PUBLIC NOTICE NO: 16/2018-19
Subject: Regarding.
Attention of all Exporters, General. Trade and other stake holders is invited to the Public Notice No. 01/2018 dated 16/01/2018, Public Notice No. 09/2018 dated 27/02/2018, Public Notice No.13/2018 dated 15/03/2018, and Standing Order No. 02/2018 dated 16/03/2018, issued by this office to resolve errors in the IGST refund claims held up with Customs system.
2. In several cases, the refunds are held up due to non-transmission of data from GSTN to Customs EDI system. The reason of non-transmission of data f

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GSTR-1 requires feeding of details with regard to integrated tax, namely the rate, taxable value and amount on account of exports. As there is no column to declare Cess amount, some of the exporters have declared the total of IGST and Cess paid amount in the column meant for IGST amount only. The declaration of IGST and Cess amount, in the manner, as above, as resulted in mis-match of IGST amount figures declared in Table 6A of GSTR-I vis-a-vis figures shown in Table 3.1(b) of GSTR-3B, resulting in data not getting transferred from GSTN to Customs EDI System, as amount of IGST paid reported in Table 6A of GSTR-1 is higher than the IGST amount indicated in Table 3.1(b) of GSTR-3B. For non-transmission on account of failure of above validation, the matter has been taken up by the CBEC with GSTN for resorting to system based solution.
(ii) Export supplies has been declared as domestic in GSTR-3B: –
(a) It is also observed that some of the exporters have provided correct details in T

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explaining error and the correction to be made in GST return to the GST Officers. In such cases exporters may also provide a certificate from the Chartered Accountant that the IGST has been paid on export of goods for which IGST refund is being claimed.
5. In addition to above, there are shipping bills in which the exporters by mistake have mentioned the status of IGST payment as "NA" instead of mentioning "P" in the shipping bill(s). In other words, the exporter has wrongly declared that the shipment is not under payment of IGST, despite the fact that they have paid the IGST. As a one-time exception, it has been decided to allow refund of IGST through an officer interface so that the officer can verify the actual payment of IGST based on GST return information forwarded by GSTN. Trade should also note that the IGST amount can be refunded to the same bank account which was mentioned in the PFMS registration.
6. The Trade Associations are requested to publicize th

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M/s. Harley Foods Products Pvt. Ltd. Versus State Of UP And 3 Others
GST
2018 (11) TMI 704 – ALLAHABAD HIGH COURT – 2018 (19) G. S. T. L. 43 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 5-4-2018
WRIT TAX No. 584 of 2018
GST
Krishna Murari, and Ashok Kumar, JJ.
Counsel for Petitioner: Suyash Agarwal
Counsel for Respondent: C. S.C.,A.S.G.I.
(Per: Hon'ble Ashok Kumar, J.)
1. Heard Sri Suyash Agarwal, learned counsel for the petitioner, Sri C.B. Tripathi, learned Special Counsel for the State and Sri Anant Kumar Tiwari, learned counsel representing the Union of India.
2. The instant writ petition has been filed by the petitioner for the following relief;
A. Issue a writ, order or direction in the nature of certiorari quashing the seizure memo dated 25.03.2018 passed under Section 129(1) UPGST Act by Respondent no.4.
B. Issue a Writ, Order or Direction in the nature of Certiorari quashing the notices dated 25.03.2018 issued u/s 129(3) of UPGST Act by Respondent

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arat GST for outward journey from Ahmedabad to Meerut, U.P. The vehicle loaded with the goods proceeded from Ahmedabad and reached near Baghpat, U.P. at about 3.30 P.M. on 24.03.2018, the same has been intercepted/detained by the respondent no.4, the Assistant Commissioner, State Tax, Mobile Squad, Unit Baghpat and a detention notice has been issued in the name of the truck driver, in which, it has been mentioned that e-way bill-01 has not been produced at the time of interception whereas other documents are placed during the course of verification.
4. A seizure order dated 25.03.2018 has been passed under Section 129(1) of UPGST Act in the name of the driver of the vehicle by which the authority has estimated the value of goods seized at Rs. 10,05,214/.
5. The sole ground for seizure of the goods and vehicle is mentioned by the respondent no.4 that at the time of interception e-way bill-01 has not been produced along with other documents, therefore, there is a presumption that the g

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ding UPGST Rules 2017-Order(45)-2017 dated 20.09.2017. At Clause 10 of the said Notification, Rule 138 was substituted. He has submitted that another notification No.138 dated 30.01.2018 was issued in exercise of power under Section 164 of UPGST Act which provided that serial no.10 and 11 of notification no.1359 dated 20.09.2017 will come into force w.e.f. 01.02.2018.
7. Counsel for the petitioner has brought to our notice that after coming into force notification no.1359 dated 20.09.2017 w.e.f. 01.02.2018, the notification no.1014 dated 21.07.2017 stands superseded by notification no.1359 dated 20.09.2017.
8. He has submitted that a notification no.155 dated 31.01.2018 was issued under Section 164 of UPGST Act by which again UPGST Rules were amended. Amendment no.12 provides for amended rule 138 which shall come into effect w.e.f. 01.02.2018. Sub-Rule (13) of Rule 138 provides that e-way bill be generated under this rule or under rule 138 of GST of any State shall be valid in every

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s 2017) also stand rescinded.
11. To sum and substance from the above notifications are that neither Notification no.1014 dated 21.07.2017 nor notification no.1359 dated 20.09.2017 (4th amendment to GST Rules, 2017) was effective after 06.02.2018; as such the various e-way bills and TDF introduced under UPGST lost their validity.
12. On 06.02.2018 to validate the same, the Commissioner Commercial Tax U.P. issued a Circular No.2899 dated 06.02.2018 by which it made effective notification no.1014 dated 21.07.2017 which was already rescinded by notification no.138 dated 30.01.2018.
13. It is pertinent to mention here that Section 166 of UPGST Act empowers the State Government to issue notifications, which shall be laid before state legislature. Similarly Section 164 of the Act also empowers the State Government to formulate rules for carrying out the provisions of the Act. Section 168 of the Act empowers the Commissioner to issue instructions for proper implementation of the Act or rul

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ity of the circular and has submitted that the same is ultra vires to UPGST Act and Rules 2017.
16. On the contrary, Sri C.B. Tripathi, learned counsel representing the State has submitted that the circular is nothing but a clarification to all subordinate authorities to act by applying the notification No.1014 dated 21.07.2017 though is amended but still is applicable. He has further submitted that the present proceedings are summary proceedings, therefore, the petitioner be relegated to deposit the impugned demand and to participate in the penalty proceedings and in case if the petitioner succeeded before the seizing authority, the amount if so deposited in compliance of the seizure/penalty will be refunded.
17. We find no substance in the submission of learned counsel for the State.
18. On the other hand, we noticed that the notification dated 21.07.2017 has already been amended by the notification No. 1359 dated 20.09.2017 and on account of aforesaid amendment, the UPGST (4th Am

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M/s. Shaurya Enterprises Versus State of U.P. And 02 Others
GST
2018 (10) TMI 1237 – ALLAHABAD HIGH COURT – 2018 (17) G. S. T. L. 378 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 5-4-2018
WRIT TAX No. – 563 of 2018
GST
Mr Krishna Murari And Mr Ashok Kumar, JJ.
For The Petitioner : Raghwendra Prasad Mishra,Vijay Babu
For The Respondent : C.S.C.
ORDER
Supplementary affidavit filed today, is taken on record.
We have heard Shri Raghwendra Prasad Mishra and Shri Vijay Babu, learned counsel for the petitioner and learned Standing Counsel appearing on behalf of the State-respondents.
The instant writ petition has been filed by which the petitioner has challenged the seizure order dated 25.3.2018 passed under Section 129 (1) of UPGST Act, 2017 (hereinafter referred to as the 'Act') and the show cause notice dated 25.3.2018 issued under Section 129 (3) of the Act for proposed penalty.
Learned counsel for the petitioner has submitted that the petitioner is a reg

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mentioning therein the time of issuance at 6:10 PM. In the said interception memo, the respondent No. 2 has mentioned for verification of goods and documents while fixing the date for the same on 25.3.2018 at 11:00 AM.
The respondent No. 2 has prepared a report dated 25.3.2018 in which the details with regard to transaction has been noted.
Since, the respondent No. 2 was not satisfied with the documents, therefore, a seizure order has been passed on the same date, namely, on 25.3.2018 wherein the value of the goods has been estimated at Rs. 7,92,002/- excluding the IGST, which has been clearly mentioned in the tax invoice as well as in the GR issued by the transporter. Vide seizure order dated 25.3.2018, the respondent No. 2 has indicated that the goods and vehicle has been seized on the ground of non availability or non submission of E-way bill. Learned counsel for the petitioner has submitted that on account of some practical difficulties the necessity of the E-way bill has been w

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has been charged at the prescribed rate of 18% which is self explanatory from the bare perusal of the tax invoice as well as good receipt which clearly indicating the value and tax charged separately mentioning in the tax invoice.
Learned counsel for the petitioner has also challenged the show cause notice issued under Section 129 (3) of the Act by which the respondent No. 2 has proposed to impose the penalty to the extent of Rs. 1,42,560/- i.e. equal to the liability of tax which has been assessed at the rate of 18% on the value of the goods.
On the other hand, learned Standing Counsel has pointed out before us that E-way bill was admittedly not accompanying with the goods when the vehicle was intercepted and filing of the E-way bill subsequently has nothing but an after thought, therefore, the seizure proceedings and the show cause notice under Section 129 (3) are well within the domain of the authorities.
We have heard learned counsel for the respective parties and found that adm

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that the transaction in question was not a bonafide transaction and has seized the goods and vehicle. Admittedly, till 31st March, 2018 it was not mandatory to download the E-way bill from the official portal. We find the substance in the submission of the learned counsel for the petitioner that only with effect from 1st April, 2018 the requirement of downloading of the E-way bill is compulsory. However, without going into the said controversy at this stage, we find that the goods were bonafidely dispatched and are travelled from Raipur for the delivery at Basti are illegally and arbitrarily detained by the respondent No.2. We see no reason in seizing the goods and asking for the penalty.
In view of the aforesaid facts and the reasons given here-inabove, the order passed under Section 129 (1) of the Act passed on 25.3.2018 and the show cause notice issued under Section 129 (3) of the Act are hereby set aside.
The writ petition is allowed.
Case laws, Decisions, Judgements, Orders

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Notified Karnataka Goods and Services Tax (Fifth Amendment) Rules, 2018.
(4-O/2017) Dated:- 5-4-2018 Karnataka SGST
GST – States
Karnataka SGST
Karnataka SGST
GOVERNMENT OF KARNATAKA
FINANCE SECRETARIAT
NOTIFICATION (4-O/2017)
[NO. FD 47 CSL 2017], Bengaluru
dated: 05-04-2018
In exercise of the powers conferred by section 164 of the Karnataka Goods and Services Tax Act, 2017 (Karnataka Act 27 of 2017) on the recommendation of the GST Council, the Government of Karnataka hereby makes the following rules further to amend the Karnataka Goods and Services Tax Rules, 2017, namely:-
RULES
Title and commencement
1. (1) These rules may be called the Karnataka Goods and Services Tax (Fifth Amendment) Rules, 2018.
(2) Save

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he principal may be endorsed by the job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal:
Provided further that, the challan endorsed by the job worker may be further endorsed by another job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal."
Amendment of rule 127
3. In rule 127 of the said rules, in clause (iv), for the word "tenth", the words "tenth day" shall be substituted.
Amendment of rule 129
4. In rule 129 of the said rules, in sub-rule (6), for the words "as allowed by the Standing Committee&q

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ion of rule 134
6. For rule 134 of the said rules, the following shall be substituted, namely:-
"134. Decision to be taken by the majority.-(1) A minimum of three members of the Authority shall constitute quorum at its meetings.
(2) If the Members of the Authority differ in their opinion on any point, the point shall be decided according to the opinion of the majority of the members present and voting and in the event of equality of votes, the Chairman shall have the second or casting vote."
Amendment to rule 137
7. In rule 137 of the said rules, in clause (c), after sub-clause b, . the following shall be inserted, namely:-
"c. any other person alleging, under sub-rule (1) of rule 128, that a registered person has

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Notification Uttar Pradesh Gst (Fifteenth Amendment) Rules, 2018.
NO.KA.NI.-2-540/XI-9(42)/17 Dated:- 5-4-2018 Uttar Pradesh SGST
GST – States
Uttar Pradesh SGST
Uttar Pradesh SGST
Uttar Pradesh Shasan
Sansthagat Vitta, Kar Evam Nibandhan Anubhag -2
NOTIFICATION
NO.KA.NI.-2-540/XI-9(42)/17-U.P. GST RULES-2017-ORDER (123)-2018
Lucknow : Dated : April 5, 2018
In exercise of the powers conferred by section 164 of the Uttar Pradesh Goods and Services Tax Act, 2017 (U.P. Act no.1 of 2017) read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act no.1 of 1904), the Governor is pleased to make the following rules with a view to amending the Uttar Pradesh Goods and Services Tax Rules, 2017:-
THE UTTAR PRADES

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cipal or the job worker sending the goods to another job worker:
Provided that the challan issued by the principal may be endorsed by the job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal:
Provided further that the challan endorsed by the job worker may be further endorsed by another job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal.";
Amendment of rule 127
3.
In the said rules, in rule 127, in clause (iv), after the words "to furnish a performance report to the Council by the tenth", the word "day" sha

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to the Director General of Safeguards to cause further investigation or inquiry in accordance with the provisions of the Act and these rules.";
Amendment of rule 134
6.
In the said rules, for rule 134, the following rule shall be substituted, namely:-
"134. Decision to be taken by the majority.- (1) A minimum of three members of the Authority shall constitute quorum at its meetings.
(2) If the Members of the Authority differ in their opinion on any point, the point shall be decided according to the opinion of the majority of the members present and voting, and in the event of equality of votes, the Chairman shall have the second or casting vote.";
Amendment of Explanation of Chapter XV
7.
In the said rules, in the Ex

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TORRENT POWER LTD. Versus UNION OF INDIA
GST
2018 (5) TMI 1391 – GUJARAT HIGH COURT – 2018 (17) G. S. T. L. 183 (Guj.)
GUJARAT HIGH COURT – HC
Dated:- 5-4-2018
R/Special Civil Application No. 5343 of 2018
GST
MR. AKIL KURESHI AND MR. B.N. KARIA, JJ.
For The Petitioner : Mr Saurabh Soparkar SR Counsel With Mr Uchit N Sheth(7336)
ORAL ORDER
(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)
The petitioner no.1 is the electricity company engaged in generation, transmission and supply of electricity. Admitted position is that under the earlier VAT regime, transmission and distribution of electricity by an electricity transmission or distribution utility was exempted from payment of service tax. According to the petitioners,

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electricity transmission or distribution utility”
However, for the incidental or connected services, the Government of India has now issued a clarification dated 1.3.2018 in which it is provided that for all services such as application fee for releasing connection of electricity, rental charges against metering equipment, testing fee for meters, transformers, capacitors, etc, labour charges from customers for shifting of meters or shifting of service lines and charges for duplicate bill, such exemption would apply and such services are taxable.
On the basis of such clarification, the departmental authorities have issued summons dated 28.3.2018 to the petitioner calling for information and documents which includes the petitioner's ba

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M/s. CERA SANITARYWARE LTD. Versus UNION OF INDIA
GST
2018 (5) TMI 1390 – GUJARAT HIGH COURT – TMI
GUJARAT HIGH COURT – HC
Dated:- 5-4-2018
R/Special Civil Application No. 5212 of 2018
GST
MR. AKIL KURESHI AND MR. B.N. KARIA, JJ.
For The PETITIONER : Mr ANAND NAINAWATI(5970)
ORAL ORDER
(PER : HONOURABLE Mr. JUSTICE AKIL KURESHI)
At the cross over to GST regime, the petitioner as a trader had un-utilized input tax credit. Section 140 of the Central Goods & Service Tax Act, 2017 permits availing of such tax credit; subject to conditions that may be prescribed. Rule 117 of the Central Goods & Service Tax Rules, 2017 lays down procedure and conditions, subject to which such credit would be available. Sub-rule [1] ther

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M/s Ramesh Chand Kannu Mal Versus State Of Up And 2 Others
GST
2018 (5) TMI 761 – ALLAHABAD HIGH COURT – 2018 (14) G. S. T. L. 168 (All.)
ALLAHABAD HIGH COURT – HC
Dated:- 5-4-2018
WRIT TAX No. – 583 of 2018
GST
Hon'ble Krishna Murari and Hon'ble Ashok Kumar,JJ.
For the Petitioner :- Nishant Mishra
JUDGEMENT
(Per: Hon'ble Ashok Kumar, J.)
1. Heard Sri Nishant Mishra assisted by Sri Vipin Kushwaha, learned counsel for the petitioner and Sri C.B. Tripathi, learned Standing Counsel for the respondents-State.
2. With the consent of learned counsel for the parties, writ petition is finally disposed of without calling the counter affidavit.
3. The instant writ petition has been filed by the petitioner for the following relief;
A. Issue a writ, order or direction in the nature of certiorari quashing the impugned seizure order dated 28.03.2018 and consequential notice dated 28.03.2018. (Annexure-1 & 2) passed by respondent no.3
B. Issue a writ, order

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lue of the goods to the tune of Rs. 3,51,450/- on which Integrated Goods and Service Tax (hereinafter referred as 'the IGST') @ 18% has been charged to the tune of Rs. 63,262/-. Since the petitioner's firm is situated in District Faridabad, State of Haryana, it generated e-way bill prescribed under Central Goods and Service Tax, Rules (hereinafter referred as the 'CGST') after uploading of the relevant details of the aforesaid transactions. The said e-way bill has been downloaded from the official portal on 24.03.2018. The said e-way bill indicates the time and the date of generation as 24.03.2018 at 8.38 P.M. giving all requisite details therein. The said goods were booked for transportation from Faridabad to Haridwar  through a transporter namely DEV Transporter, Muzaffar Nagar against goods receipt (GR) no. 241 dated 24.03.2018. The aforesaid goods are loaded at Faridabad and transported through truck no. U.P.-12AT-1460.
6. Learned counsel for the petitione

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er dated 28.03.2018 by which he has seized the goods as well as vehicle on the ground that the goods were being transported from outside the state of U.P. without the Transit Declaration Form, which is in violation of provision of UPGST Act. The respondent no.3, in pursuance to the seizure order, has issued a show cause notice dated 28.03.2018 under Section 129(3) of the UPGST Act directing the petitioner to appear before him on 04.04.2018 and to explain as to why tax @ 18% amounting to Rs. 63,262/- and equivalent amount of penalty may not be imposed.
9. Learned counsel for the petitioner has submitted that there is no requirement for generation or downloading of the Transit Declaration Form-I for the goods crossing/passing through the State of U.P. He has further submitted that since the TDF-I is not required under the law, the seizure of goods and the vehicle on the ground of non availability of TDF-I is wholly illegal and without jurisdiction.
10. It is further submitted that in e

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n Form TDF-02
 
11. Learned counsel for the petitioner has submitted that a process for initiation of a new indirect taxation regime was put into motion by the Constitution (101st Amendment) Act 2016 dated 8.9.2016 by which Articles 246-A, 269-A, 279-A and other provisions of the Constitution were amended. As per the amended Article 269-A, which pertains to levy and collection of Goods and Services Tax in the course of inter-state trade or commerce such tax shall be levied and collected by the Government of India and such tax shall be apportioned between the Union and the States in the manner as may be provided by Parliament by law on the recommendations of the Goods and Service Tax council. Import within the territory of India was included within the meaning of the term “Inter-State Trade or Commerce” and in respect of it tax, as aforesaid, would be levied and collected by the Government of India.
12. In pursuance to the aforesaid 101st Amendment of the Constitution three enac

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r the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act are authorized to be the proper officers for the purposes of the said Act, subject to such exceptions and conditions as the Government shall, on the recommendations of the Council by notification, specify. Similarly for enforcement of CGST Act 2017 by virtue of section 6 thereof State Authorities under UPGST Act 2017 are also empowered to enforce CGST Act 2017.
15. It is also not in dispute that by virtue of section 20(xv) of the ''IGST Act, 2017' the provisions of ''CGST Act, 2017' apply in respect of matters covered by the IGST Act, 2017 on the subject of inspection, search, seizure and arrest. Chapter XIV of the CGST Act, 2017 deals with inspection, search, seizure and arrest. While section 67 of CGST Act, 2017 deals with the power of inspection, search and seizure, section 68 deals with inspection of goods in movement and it is this provision with which we are primarily

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ay be specified, are such, as may be prescribed. Now this prescription has been made under Rule 138 of the CGST Rules, 2017 which reads as under:
“138. E-way rule.-Till such time as an E-way bill system is developed and approved by the Council, the Government may, by notification, specify the documents that the person in charge of a conveyance carrying any consignment of goods shall carry while the goods are in movement or in transit storage.”
17. As would be evident from a reading of the aforesaid rule, it refers to an E-way bill System which is to be developed by the GST Council and it provides for an interim arrangement by the Government till an E-way Bill System is so developed and approved. The words “Government” used therein is defined in Section 2(53) of CGST Act, 2017 to mean the “Central Government”. It is not in dispute that on the date of interception of the vehicle in question E-way Bill System had not been developed, therefore, the documents which were required to be ca

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way Bill system was to come into force from 1.2.2018, but, the notification dated 29th December 2017 was rescinded by a subsequent notification dated 2.2.2018. Thereafter the notification dated 7th March 2018 has been issued regarding E-way Bill System.
18. Thus, E-way bill system has been prescribed only recently by a notification of the Government of India dated 7th March, 2018 whereby Rule 138 of the CGST Rules, 2017 has been amended and other Rules have been incorporated in this regard. These amendments are to come into force from a date to be specified by the Central Government which is specified w.e.f. 01.04.2018.
19. Be that as it may, the fact of the matter is that on the date of incident i.e. 24.03.2018 neither there was any E-way Bill System nor any notification by the Central Government under Rule 138 of the CGST Rules, 2017 requiring the carrying of a TDF Form or any other such document in the course of inter-State supply/movement of goods, as such, the very basis for pas

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' the Central Government'. Moreover, with respect to Goods and Service Tax in relation to inter-State Trade the Parliament alone has the authority to legislate as would be evident from the 101st Amendment to the Constitution.
21. In this view of the matter, we are of the considered view that on the relevant date i.e. 24.03.2018, there was no requirement of carrying TDF Form-1 in the case of an inter-State supply of goods. In fact on the relevant date there was no prescription of the documents to be carried in this regard under Rule 138 of the CGST Act, 2017, accordingly, the seizure and penalty imposed upon the petitioners based on the notification dated 21.7.2017 issued under Rule 138 of the UPGST Act 2017, which was not applicable, is clearly illegal.
22. Cross-empowerment under section 4 of IGST Act, 2017 and section 6 of CGST Act, 2017 merely means that State Authorities empowered under the UPGST Act, 2017 can also enforce the provisions of CGST Act, 2017 or IGST Act, 201

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ed by the State Government under Rule 138 of the Rules made under the UPGST Act 2017, was required to be carried, which is not the requirement in law. For this very reason, the judgment dated 29.1.2018 passed by a Coordinate Bench of this Court in Writ Tax No.95 of 2018 does not apply to the instant case, as the challenge therein was to the very power of the State Authorities under UPGST Act, 2017 to seize goods involved in inter-state supply. Here the question is whether petitioner was required to carry TDF Form I or not, which we have answered in the negative.
24. As regards the provisions of Section 129 UPGST Act, 2017 under which the impugned action has been taken, the same is not applicable to an inter-State trade or commerce. By virtue of Section 20 of the IGST Act, 2017, it is section 129 of CGST Act, 2017 that would apply, but this is not the ground on which we are invalidating the impugned action, as, if it is traceable to the aforesaid provision of CGST Act, 2017 which is pa

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ld take me through the provisions of the IGST Act, CGST Act and SGST Act and in particular, the provisions of Section 4 and Section 20 of the IGST Act and Section 6 of the CGST Act read with Rule 138 of the CGST Rules as amended by notification No.27/2017 – Central Tax for the purposes of pointing out that, although the power to prescribe the documents that are to accompany the transportation of goods in the course of interstate trade is conferred on the Central Government, the Central Government has, till date, not notified the documents that have to be carried by a transporter of the goods in the course of interstate movement. Under the said circumstances, and finding that neither the State Legislature nor the State Government would have the power to make laws/rules to govern interstate movement of goods in the course of trade, and for the purposes of levy of tax, I am of the view that detention in Ext.P.5, for the sole reason that the transportation was not accompanied by the prescr

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early inapplicable for the reasons already mentioned earlier. There was no intent to evade tax.
27. The contention of Sri Nishant Misra, learned counsel for the petitioners was that the transaction was one of inter-State supply of goods, therefore, it was covered by the Integrated Goods and Services Tax Act, 2017 and as per section 20 (xv) thereof, in matters of inspection, search, seizure and arrest, provisions of the Central Goods and Services Tax Act, 2017 were applicable. As per section 68 of the CGST Act, 2017, inter alia, 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. This prescription is contained in Rule 138 of the Central Goods and Services Tax Rules, 2017, but, no notification had been issued by the Central Government under the said rule specifying the documents that a person in charge of a conveyance carr

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t jurisdiction.
29. According to the counsel for the petitioner, the Commissioner of State Tax has no power to issue the circular in exercise of power under Section 168 of the Act. The Commissioner, therefore, cannot issue circular and directions which are not in consonance with the Act and Rule or the notifications. He has further submitted that the Commissioner is not expected to perform the legislature function and issue the instruction or the circular on something contrary to the provision which are available in the Act or Rule.
30. Learned counsel for the petitioner, therefore, has submitted that the Commissioner by way of circular dated 06.02.2018 usurped the rule making power of the legislature. It is further submitted that the circular issued by the Commissioner cannot revive the notification. In the present case the Notification no. 1014 dated 21.07.2017 which was already amended by another notification No. 1359 dated 20.09.2017 has no legal value. The counsel for the petiti

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requiring of downloading of TDF-I. He has also submitted that the order of seizure and issuance of the notice under Sections 129(1) and 129(3) respectively are issued with full authority of law by the respondent no.3 and are in accordance with law.
33. We find no substance in the submission of learned counsel for the State.
34. We noticed that the notification dated 21.07.2017 has already been amended by the notification No. 1359 dated 20.09.2017 and on account of aforesaid amendment, the UPGST (4th Amendment) Rules, 2017 was introduced and made effective with effect from 01.02.2018 vide notification No.138 dated 30.01.2018, therefore, in our opinion, the initial notification no.1014 by which e-way bill-01, e-way bill-02, e-way bill-03 and TDF (Transit Declaration Form)  was introduced stands rescinded.
35. We are in agreement with the submission of learned counsel for the petitioner that with effect from 01.02.2018 there was no requirement to download the Transit Declaration

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In re: Kansai Nerolac Paints Ltd.
GST
2018 (5) TMI 458 – AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – 2018 (12) G. S. T. L. 526 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULINGS MAHARASHTRA – AAR
Dated:- 5-4-2018
GST-ARA-18/2017-18/B-25
GST
B.V. BORHADE AND PANKAJ KUMAR, MEMBER
PROCEEDINGS
(under section 98 Of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by KANSAI NEROLAC PAINTS LIMITED, the applicant, seeking an advance ruling in respect of the following question :
Whether accumulated credit by way of Krishi Cess (KKC) as appeared in the Service tax return of Input Service Distributor (ISD) ON June 30, 2017 which is carried forward in the electronic credit ledger maintained by the company under CGST

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e company's Head Office. Under chapter V of Finance Act 1994, the Company has a centralized registration for Head Office, factories and depots at its Head Office (HO) in Mumbai, Apart from centralized registration, the Company also has a separate registration as Input Service Distributor (ISD) for its HO to distribute the eligible CENVAT credit to its factories and Head Office according to Rule 2(m) of Cenvat Credit Rules 2004 (herein after referred as CCR), read with Rule 7 and Rule 7A of CCR.
Rule 9(10) of the CCR requires the input service distributor to file the half yearly return in the statement giving the detail of the credit received and distributed during the said half yearly period by the end of the following months.
As an input service distributor, the company received CENVAT credit at head office. Those CENVAT credit also included Krishi Kalyan Cess (KKC) as well but the company could not distribute KKC to its factories as because, KKC credit could be utilized only with K

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pre GST regime, that is prior to July 1, 2017, company was engaged in manufacture and sale of goods across the states and in the state of Maharashtra Company was engaged in works contract service as well. Accordingly under chapter V of Finance Act 1994, company took centralized registration for its Head Office located (HO) in the state of Maharashtra. Apart from centralized registration, company also obtained registration as Input Service Distributor (ISD) for its HO to distribute eligible credit to its respective manufacturing units according to Rule 2(m) of Cenvat Credit Rules 2004 (herein after referred as CCR), read with Rule 7 and Rule 7A of CCR.
1.3 CBEC had vide Circular No. 97 dated 23.8.2007 clarified that input service distributor is an office or premises of the manufacturer or taxable service provider which receives bills/invoices etc., of input services. The input service distributor can distribute the eligible credit to any unit of the manufacturer or any premises/office

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onic credit register maintained under CGST ACT 2017.
Statement containing the applicant's interpretation of law and/or facts, as the case may be, in respect of the aforesaid question(s) (i.e. applicant's view point and submissions on issues on which the advance ruling is sought),
1.1 KKC is levied as per sec 161 of the Finance Act 2016
1.2 Sec 161(5) of the Finance Act specified that for levy and collection of KKC, Chapter V of Finance Act 1994 (Service Tax) will be applicable.
1.3 Entry 92C of Union List I of Indian Constitution empowers legislature to levy service tax as provided under Chapter V of Finance Act 1994.
1.4 122nd amendment of Constitution deletes Entry 92C of Union List I, in view of implementation Of Goods and Service Tax.
1.5 It implies KKC is also subsumed in Goods and Service Tax along with service tax. In other words CGST liability under CGST Act 2017 contains liability on account of KKC as well.
1.6 Rule 3(1a) of CCR includes KKC as cenvat credit.
1

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s.
As an input service distributor, company received cenvat credit at its head office. Those cenvat credit includes Krishi Kalyan Cess (KKC) as well but the company could not distribute KKC to its manufacturing units as because KKC credit could be utilised only with KKC liability and recipient entity being manufacturing entity did not have any KKC liability to set off KKC credit, resulting in accumulation of KKC credit.
In Post GST regime neither there is any specific restriction in law regarding admissibility of KKC nor there any specific provision in law regarding admissibility of KKC as input tax credit.
In view of the aforesaid facts, our question regarding admissibility of input tax credit is duly covered under clause (d) of section (2) of section 97 of CGST,/MGST Act 2017 and thus the said question is duly covered under the provision of Advance Ruling as provided under CGST/MGST Act 2017.
Submission of NIL date
2. Legislative provisions.
2.1 Sec 161 of Finance Act 2016 read

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es specified in sub-section (2), as it may consider necessary.
(5) The provisions of Chapter V of the Finance Act, 1994 and the rules made thereunder, including those to refunds and exemptions from tax, interest and imposition or penalty shall, as far as may be, apply in relation to the levy and collection of the Krishi Kalyan Cess on taxable services, as they apply in relation to the levy and collection of tax on such taxable services under the said Chapter or the rules made thereunder, as the case may be.” (Emphasis supplied)
2.2 Deletion of entry 92C vide constitution 122nd amendment
“17. In the Seventh Schedule to the Constitution.
(a) an List I Union List, (i) for entry 84, the following entry shall be substituted namely:
“84. Duties of excise on the following goods manufactured or produced in India namely:-
(a) petroleum crude:
(b) high speed diesel:
(c) motor spirit (commonly known as petrol)
(d) natural gas
(e) aviation turbine fuel; and
(f) tobacco and tobacco

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rs conferred by section 37 of the Central Excise Act, 1944 (1 of 1944) and section 94 of the Finance Act, 1994 (32 of 1994), the Central Government hereby makes the following rules further to amend the CENVAT Credit Rules, 2004, namely : –
1.  (1) These rules may be called the CENVAT Credit (Seventh Amendment) Rules, 2016.
      (2) They shall come into force on 1st of June, 2016.
2. In the CENVAT Credit Rules, 2004, in rule 3,
(a) after sub-rule (1), the following sub-rule shall be inserted, namely :-
“(1a) A provider of output service shall be allowed to take CENVAT credit of the Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016);”;
(b) in sub-rule (4), after the ninth proviso, the following proviso shall be inserted, namely,-
“Provided also that the Cenvat credit of any duty specified in sub-rule (1) shall not be utilised for payment of Krishi Kalyan Cess leviable under section 161 of the Fin

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2) Sec 161(5) of the Finance Act specified that for levy and collection of KKC, Chapter V of Finance Act 1994 (Service Tax) will be applicable.
4.2 Entry 92C of Union List I of Indian constitution empowers legislature to levy service lax as provided under Chapter V or Finance Act 1994.
4.3 122nd amendment of Constitution deletes Entry 92C of Union List l, in view of implementation and Service Tax.
4.4 It implies is also subsumed in Goods and Service Tax along with service tax. In other words CGST liability as accrued under CGST Act, 2017 contains liability on account or KKC as well..
4.5 Rule 3(1a) of CCR includes KKC as cenvat credit.
4.6 CCR provides KKC liability could be set off with KKC credit only CGST liability subsumed KKC liability in of 122nd amendment of constitution. Therefore migrated KKC credit will be admissible to setoff with CGST liability.
4.6 Sec 140(1) allows a registered person to carry forward the CENVAT credit in return to electronic credit ledger provide

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alue of taxable service.
What about carry forward of credit of Krishi Kalyan Cess, to GST Regime?
Section 140 (1) of the GST law permits carry forward of Credit of GST regime.
Transitional provisions have been prescribed in the GST law which provids tax treatment for transitional matters like spill over transactions, transitional credits etc. It allows existing taxpayers to transfer the input tax credit available as closing balance in the existing tax returns to the GST returns. Therefore, assesses were able to transfer the closing balance of credit in respect of Central Excise duty, Service Tax, Local VAT etc. As the opening credit balance in the GST returns.
As specified in the proviso to Section 140(1) of the Act, the taxable person is allowed to carry forward the credit to the extent admissible as INPUT TAX CREDIT under GST.
Definition of Input tax as given in section 2(62) does not include any cess.
So apparently Krishi Kalyan Cess, will not be allowed to be carried forword.

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ulated credit as carried forward in the Service Tax return on 30th June, 2017, we would refer to the relevant transitional provision as available in the CST Act-
140. (1) A registered person, other than a person opting to pay tax under section 10, shall be entitled to take, in his electronic credit ledger, the amount of CENVAT credit carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by him under the existing law in such manner as may be prescribed:
Provided that the registered person shall not be allowed to take credit in the following circumstances, namely:
(i) where the said amount of credit is not admissible as input tax credit under this Act; or
(ii) where he has not furnished all the returns required under the existing law for the period of six months immediately preceding the appointed date; or
(iii) where the said amount of credit relates to goods manufactured and cleared under such exemption noti

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al Importance) Act. 1957 (58 of 1957);
(v) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001);
(vi) the Education Cess on excisable goods leviable under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004);
(via) the Secondary and Higher Education Cess on excisable goods leviable under section 136 read with section 138 of the Finance Act, 2007 (22 of2007):
(vii) the additional duty leviable under section 3 of the Customs Tariff Act, equivalent to the duty of excise specified under clauses (i), (ii), (iii), (iv), (v) (vi) and (via);
(viia) the additional duty leviable under sub-section (5) of section 3 of the Customs Tariff Act,
Provided that a provider of taxable service shall not be eligible to take credit of such additional duty;
(viii) the additional duty of excise leviable under section 157 of the Finance Act, 2003 (32 of 2003);
(ix) the service tax leviable under section 66 of the Finance Act'

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Thus, CENVAT credit was available in respect of KKC. However, we need to see the following amendments, too, as were brought by the aforesaid Notification No. 28/ 2016 – Central Excise (N.T.), the 26th May, 2016 –
i. in sub-rule (4), after the ninth proviso, the following proviso was inserted –
“Provided also that the Cenvat credit of any duty specified in sub-rule 1 shall not be utilised for payment of Krishi Kalyan Cess leviable under section 161 of the Finance Act, 2016 (28 of 2016);”;
ii. in sub-rule (7), after clause (c), the following clause was inserted –
“(d) Cenvat credit in respect or Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016) shall be utilised only towards payment of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016)”;
It can be seen that by express provision, it was made clear that KKC would be utilised towards payment of KKC only, Further, it was express

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ENVAT Credit Rules, 2004 (CCR. for short), credit of EC and SHE was admissible and could be utilised for payment of EC and SHE respectively. In other words. CENVAT credit on EC and SHE on inputs, capital goods and input services could be utilised and availed of for payment of EC and SHE on manufactured goods and output services. Input EC and SHE credit had the effect of preventing cascading effect on EC and SHE payable down the line. It is an accepted and admitted case that benefit of EC and SHE on inputs, etc. could not have been utilised for payment of excise duty service tax on the output, i.e, manufactured goods or taxable services Thus, cross utilization of EC and SHE towards excise duty or service tax was impermissible and not permitted.
4. EC and SHE were abolished and were not payable on excisable goods with effect from 1st March, 2015 vide Notification Nos. 14/2015-CE and 15/2015-CE both dated 1st March, 2015. EC and SHE were also abolished and ceased to be payable on taxable

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xcise duty or service tax. They were specific cesses for the objective and purpose specified……………………………………………………………………………………………………… As noticed above, in the present case, credit of EC and SHE could be only allowed against EC and SHE and could not be cross-utilized against the excise duty or service tax. In fact, what the petitioners seek is an amendment of the scheme to allow them to take cross utilization of the unutilized EC and SHE upon the two cesses being Withdrawn against excise duty and service tax, though this was not the position even earlier,”
The Hon. Court dismissed the Writ Petition. In the present case, KKC is to be utilized for payment of KKC only. Therefore, KKC cannot be treated as excise duty or service tax. in view thereof, the CENVAT credit as referred to in sub-section (1) of section 140 would not include the credit in respect of KKC. We can also see the position in respect of the Swachh

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vernment may, by notification in the Official Gazette, appoint.
(2) There shall be levied and collected in accordance with the provisions of this Chapter, a cess to be called the Swachh Bharat Cess, as service tax on all or any of the taxable services at the rate of two per cent. on the value of such services for the purposes of financing and promoting Swachh Bharat initiatives or for any other purpose relating thereto.
The Swachh Bharat Cess leviable under sub-section (2) shall be in addition to any cess or service lax lev table on such taxable services under Chapter of the Finance Act, 1994, or under any other law for the time being in force.
(4) The proceeds of the Swachh Bharat Cess levied under sub-section (2) shall first be credited to the Consolidated Fund of India and the Central Government may, after due appropriation made by Parliament by law in this behalf utilise such sums of money of the Swachh Bharat Cess for such purposes specified in sub-section (2), as it may consid

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e in addition to any cess or service tax leviable on such taxable services under Chapter V of the Finance Act, 1994, or under any other law for the time being in force.
 
(4) The proceeds of the Krishi Kalyan Cess levied under sub-section(2) shall first be credited to the Consolidated Fund of India and the Central Government may, after due appropriation made by Parliament by law in this behalf utilise such sums of money of the Krishi Kalyan Cess for such purposes specified in sub-section (2), as it may consider necessary.
(5) The provisions of Chapter V of the Finance Act, 1994 and the rules made thereunder, including those relating to refunds and exemptions from tax, interest and imposition of penalty shall, as far as may be, apply in relation to the levy and collection Of the Krishi Kalyan Cess on taxable services, as they apply in relation to the levy and collection of tax on such taxable services under the said Chapter or the rules made thereunder, as the case be.
As can b

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Prompt Compusolutions Pvt. Ltd. Versus The Asst. Tax Officer, Squad No. VII, State Gst Department, Palakkad
GST
2018 (4) TMI 531 – KERALA HIGH COURT – TMI
KERALA HIGH COURT – HC
Dated:- 5-4-2018
W. P. (C) No. 11900 of 2018
GST
MR. P. B. SURESH KUMAR, J.
For The Petitioner : Sri. K. M. Cherian And Sri. P. M. Girijavallabhan
For The Respondent : Sri. C. Unnikrishnan
JUDGMENT
Goods belonging to the petitioner have been detained by the competent authority under the Central Goods and Services Tax Act as also the Kerala State Goods and Services Tax Act, invoking the powers under section 129 of the said statutes. Ext.P5 is the detention order issued in this regard. The petitioner is aggrieved by Ext.P5 detention order.

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TREATMENT OF GOODS SENT FOR TRIALS
Query (Issue) Started By: – ANITA BHADRA Dated:- 4-4-2018 Last Reply Date:- 13-4-2018 Goods and Services Tax – GST
Got 16 Replies
GST
Dear Sir/ Madam
Public Sector Undertaking of Gaziabad ( Under Ministry of Defence) send Radar to other state for trials on returnable gate pass .
This Radar is developed by PSU and will remain property of PSU only .
My query is- under GST Act , how long this property can be with other state and what is the GST implication on it .
Regards & Thanks in Advance
CA Anita Bhadra
Reply By Alkesh Jani:
The Reply:
Sir/Madam,
In this regards, my point of view is that, firstly, it is to be ascertain that the said PSU has entered any contract with other state for which consideration is required to be made by other state, if so, as there is no transfer of title of goods, it may be covered under the ambit of supply of service under HSN Code 99731. However, the consideration may be as agreed upon. In the above cas

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eply By KASTURI SETHI:
The Reply:
The activity of testing/trial of radar cannot fall under HSN 99731 at all. However, remaining points raised by Sh.Alkesh Jani Ji, are worth consideration to arrive at final decision. The remote possibility of RCM in this case cannot be ruled out. Still full facts are known to.
Reply By YAGAY AND SUN:
The Reply:
Dear CA Anita Bhadra
Such queries must not be raised/replied on an open forums like TMI as these are very sensitive matter related to Nation's Security. We hope you understand it.
Requesting TMI to delete this query along with all replies. Requesting all experts to not to revert on such queries.
Regards,
YAGAY & SUN
Reply By Ganeshan Kalyani:
The Reply:
Agreed.
Reply By KASTURI SETHI:
The Reply:
Madam, Enemies (various types of criminals) of our country have not respect for any law. Such persons do not read taxations site. Only law abiding citizens and professional (who help law abiding citizens to abide by taxation laws) browse T

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h it we got mail from .gov.in
We should not do anything directly or indirectly knowingly or unknowingly, Consciously or Unconsciously which could do harm to our Mother Land.
Just read about Isreal and Israelis and about their passion, love and sacrifices toward their country. We are 1.35 bn and just says what our country is doing for us.
Think again.
Long Live Bharat.
Jai Hind.
Reply By KASTURI SETHI:
The Reply:
Thanks to M/s.YAGAY and SUN for posting such very useful information.
Reply By KASTURI SETHI:
The Reply:
Sometimes the addition of a little information can bring a new perspective to a problem or help you to better understand a person or situation.
Your spirit of patriotism is appreciable indeed.
Reply By Ganeshan Kalyani:
The Reply:
Totally agreeing with M/s.Yagay and Sun.
Reply By Ganeshan Kalyani:
The Reply:
How does a people post their product here as an advertisement. We experts tell them not to do such advertisement without the knowledge of TMI. Similarly

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my Country & my Earth?
Now coming back to your query, in our view since it is capital goods then limitation period is 3 years i.e. within 3 years it must come back. Further, it must go on delivery challan but not on returnable gate pass as RGP is not a document prescribed under the GST Laws.
Reply By Alkesh Jani:
The Reply:
Dear all,
First of all, I would like to thank all for the views expressed, as well as, their concerns with the security of our mother land. This really touched my heart, the spirit of patriotism is appreciable, but the suggestion that this discussion may be removed or deleted is not acceptable, because, let whole world know that the each participant of this TMI forum, is not only concerns with the tax related matters but believes in COUNTRY FIRST. The TMI, who has provided this platform, where the tax payers or any one raising any query, the experts, naming any will be injustice to others, gives their most valuable advice, and even a bit is left, is filled by ot

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Government sets up an IT Grievance Redressal Mechanism to address the grievances of taxpayers due to technical glitches on GST Portal
GST
Dated:- 4-4-2018

It has been decided by the Government to 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. In this regard, GST Council has delegated powers to an IT Grievance Redressal Committee to approve and recommend to the GSTN the steps to be taken to redress the grievance and provide relief to the taxpayer. The relief could be in the nature of allowing filing of any Form or Return prescribed in law or amending any Form or Return already filed. However, where the problem relates to

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h such that the process of digitally signing/ validating TRAN-1 could not be completed. The taxpayer would be allowed to complete the process of filing such TRAN 1, stuck due to IT glitches, by 30th April 2018 and the process of completing filing of GSTR 3B which could not be filed for such TRAN 1 shall be completed by 31st May 2018.
The last date for filing of TRAN 1 is not being extended in general and only the taxpayers, who have been identified in terms of the circular issued in this regard, shall be allowed to complete the process of filing TRAN-1.
The decision relating to filing of TRAN-1 shall benefit 17,573 taxpayers who shall consequently be able to avail ₹ 2582.98 cr. as CGST credit and ₹ 1112.77 cr. as SGST credit.

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Cancellation of Invoice
Query (Issue) Started By: – Venukumar HJ Dated:- 4-4-2018 Last Reply Date:- 7-4-2018 Goods and Services Tax – GST
Got 4 Replies
GST
We have raised invoice in the month of November 2017 against original purchase order and filed GSTR 3B and GSTR 1. During February 2018 original PO cancelled and new PO issued. Now, the invoice raised to be cancelled. How to show cancelled invoice in GSTR 3B and GSTR 1?
Reply By Ganeshan Kalyani:
The Reply:
The cancelled invoic

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