Southern India Regional Council of
The Institute of Chartered Accountants Of India
(Setup by an Act of Parliament)

Professional Updates

 

Professional Updates- July 2019

AP VAT / GST Update Ambati Chinna Gangaiah

agcpower@icai.org 9391142969

Click here to Download AP VAT (July, 2019)

 


Professional Updates- June 2019

 

AP VAT / GST Update Ambati Chinna Gangaiah

agcpower@icai.org 9391142969

 

Supreme Court

1

Steel Authority of India Vs Commissioner of Central Excise

AC 2510/12 dt 8.5.19 (Full Bench)

It may be true that the differential duty becomes crystalised only after the escalation is finalized under the escalation clause but it is not a case where escalation is to have only prospective operation. It is to have retrospective operation admittedly. This means the value of the goods which was only admittedly provisional at the time of clearing the goods is finally determined and it is on the said differential value that admittedly that differential duty is paid. We would think that while the principle that the value of the goods at the time of removal is to reign supreme, in a case where the price is provisional and subject to variation and when it is varied retrospectively it will be the price even at the time of removal. The fact that it is known, later cannot detract from the fact, that the later discovered price would not be value at the time of removal. Most significantly, section 11A and section 11AB as it stood at the relevant time did not provide read with the rules any other point of time when the amount of duty could be said to be payable and so equally the interest.

High Court

1

N.V.K  Mohammed Sulthan Rawther and Sons  and Others Vs UOI

WP(C) 32324/18 dt  16.10.18 (Kerala HC)

at best the inspecting authority can alert the assessing authority to initiate the proceedings “for assessment of any alleged sale, at which the petitioner will have all his opportunities to put forward his pleas on law and on fact.” Indeed, emphatic is the enunciation of law in Rams (Rams Vs Sales Tax Officer) that the process of detention of the goods cannot be resorted to when the dispute is bona fide, especially, concerning the exigibility of tax and, more particularly, the rate of that tax……….As a result, the Assistant State Tax Officer will release the goods forthwith.

2

Kun Motor Co.Pvt. Ltd. vs The Asst. State Tax Officer

WA 1803/18 dt 6.12.18 (Kerala HC)

supply of the new vehicle by its authorised dealer terminated on it being purchased by the 2nd appellant in Puthuchery and the subsequent movement of the goods was not occasioned by reason of the transaction of supply. The goods having come into the possession of the purchaser, and the vehicle having been used, however negligible the distance run, we are also of the opinion that it is his "used personal effect" and there can be alleged no taxable transaction in so far as the movement of goods from Puthuchery to Trivandrum in Kerala, especially since the car had been registered in the name of the purchaser.

29. Though a temporary registration it has to be noticed that there is absolutely no enabling provision, though also no prohibition, in getting a permanent registration of the vehicle by yet another person. We also have to notice that even if such a provision existed, a second sale of the motor vehicle is not taxable within the State, unless there is a premium on the original sale price as seen from Notification No.8/2018 Central Tax-(Rate). Hence on these two grounds, of an intra-State sale having occasioned and the transport being of used personal effects, we find that the detention was illegal.

3

Srijan Reality Pvt Ltd Vs Commissioner of Service Tax

WP 770/15   dt 8.3.19 (Calcutta HC)

In view of the discussions above, it has to be held that, the transaction of the petitioner obtaining high-tension electric supply converting it to low-tension supply, and supplying it to the occupants, raising bills on such occupants and realizing the electricity consumption charges from such occupants, is a service which the petitioner renders and such an activity is exigible to Service Tax under the Finance Act, 1994.

4

Commissioner Trade and Taxes Vs Super Agencies and Batch

ST Appl 1/17 dt 1.5.2019 (Delhi HC)

If one considers the issue from this perspective- as well as the fact that the of the rules are not by way of exemption, but rather as a specific clarification of what does not constitute part of taxable turnover, it is apparent that the rule of strict construction of exemptions -in favour of the revenue- cannot apply to the circumstances of this case. There is a compelling reason why the assessees’ argument commends to this court.

 

 

 

 

…………Any other interpretation would lead to absurdity, because the intent of the legislation to permit a deduction from the turnover, would be defeated; the rule would be rendered unworkable and otiose.

5

Commissioner Trade and Taxes Vs Super Agencies and Batch

ST Appl 1/17 dt 1.5.2019 (Delhi HC)

If one considers the issue from this perspective- as well as the fact that the of the rules are not by way of exemption, but rather as a specific clarification of what does not constitute part of taxable turnover, it is apparent that the rule of strict construction of exemptions -in favour of the revenue- cannot apply to the circumstances of this case. There is a compelling reason why the assessees’ argument commends to this court. …………Any other interpretation would lead to absurdity, because the intent of the legislation to permit a deduction from the turnover, would be defeated; the rule would be rendered unworkable and otiose.

6

Rockwell Industries Vs Commissioner Trade and Taxes

 

 

 

 

W.P.(C) 393/2019 dt 8.5.19 (Delhi HC)

it appears to us that in the present case also the default assessment order has been generated only to defeat the refund claim of the petitioner, which, in any event, ought to have been paid well before the impugned orders were made. The impugned default assessment orders expressly state that there is no mismatch between the selling and purchasing dealers. Yet a demand is sought to be raised in respect of alleged mismatch……….the impugned default assessment orders dated 14.11.2018 and the refund adjustment order dated 15.11.2018 cannot be sustained.

7

Amadeus India Pvt Ltd Vs Commissioner Central Excise and Service Tax

WP(C) 914/19  dt 8.5.19 (Delhi HC)

16. The mandatory character of the Master Circular can be traced to Section 83 of the Finance Act, 1994 which makes Section 37 B of the Central Excise Act, 1944 applicable in relation to service tax. In terms Section 37 B of the Central Excise Act, 1944 instructions issued by the CBEC would be binding on the officers of the Department. The legal position in this regard is well-settled………..Court is satisfied that it was necessary in terms of para 5.0 of the Master Circular for the Respondent to have engaged with the Petitioner in a pre SCN consultation, particularly, since in the considered view of the Court neither of the exceptions specified in para 5.0 were attracted in the present case.

High Court Judgments on Transit Relief – Problem to upload Tran 1

1

Continental India Private Limited And Another Vs UOI

Writ Tax 67/18 dt 24.1.18 (Allahabad HC)

It is the petitioner's case that he has also submitted his application for transitional credit manually on 10.1.2018. The respondents were served with a notice on 19.1.2018 with a copy of the petition and they have also obtained instructions today. They say that portal is likely to be opened but is unable to say that when the portal is likely to be opened. 
In view of the above, the respondents are directed to reopen the portal within two weeks from today. In the event they do not do so, they will entertain the application of the petitioner manually and pass orders on it after due verification of the credits as claimed by the petitioner. They will also ensure that the petitioner is allowed to pay its taxes on the regular electronic system also which is being maintained for use of the credit likely to be considered for the petitioner. 

2

Abicor and Binzel Technoweld Pvt. Ltd. Vrs UOI

WP (L) NO. 2230/18 dt 6.2.18 (Bombay HC)

11. We would record that similar grievances have been raised before the Allahabad High court in Writ (Tax) No. 67 of 2018 and the order of the Division Bench of that Court dated 24th January 2018 directs the respondents before it to reopen the portal and in the event it is not done, there is further direction to entertain the application of the petitioner before the Allahabad High Court manually and pass orders on it after due verification of the credits as claimed by the petitioner before the Allahabad High Court. We would also be constrained to pass such order and that would not be restricted to the petitioner before us alone. 

 

 

 

3

Dhamtari Krishi Kendra v. Union of India

WP (T) 68/18 dt 14.5.18 (Chhattisgarh HC)

petitioner is directed to approach the Nodal Officer of Dhamtari i.e. Assistant Commissioner, State GST, Raipur Circle-7 within four days from today by filing representation along with all necessary documents for redressal of his grievance and in turn, the said authority would consider and dispose of the same following the procedure laid down in para 8 of the circular dated 3-4-2018 and would take decision accordingly keeing in view that this writ petition remained pending since 26-3-2018

4

E.V.Radha Krishna Kurup v. Union of India

WP(C)17348/

18, dated 14.06.18 (Kerala HC)

deem it appropriate to dispose of the writ petition permitting the petitioner to prefer an application before the additional sixth respondent, the Nodal Officer appointed to resolve issues in the nature of one raised by the petitioner. Ordered accordingly. Needless to say that if the petitioner prefers an application within two weeks from the date of receipt of a copy of this judgment, same shall be considered and appropriate decision shall be taken by the additional sixth respondent within a week thereafter. deem it appropriate to dispose of the writ petition permitting the petitioner to prefer an application before the additional sixth respondent, the Nodal Officer appointed to resolve issues in the nature of one raised by the petitioner. Ordered accordingly. Needless to say that if the petitioner prefers an application within two weeks from the date of receipt of a copy of this judgment, same shall be considered and appropriate decision shall be taken by the additional sixth respondent within a week thereafter.

5

Calibre Industries Vs Principal Commissioner, GST

and Central Excise

 

 

WP 18794/18 dt 24.7.18 (Madrs HC)

 

petitioner/assessee is directed to submit their application in accordance with paragraph 8 of the said circular dated 03.4.2018 within a period of two weeks from the date of receipt of a copy of this order to their respective Assessing Officer/Jurisdictional Officer/GST Officer. The Assessing Officer is directed to forward the application to the Nodal Officers within a period of one week. The Nodal Officer nominated will, in consultation with the GSTN, shall take note of the grievances expressed by the petitioner/assessee and forward the same to the Grievance Committee, who, in turn, would take an appropriate decision in the matter within a period of three weeks from the date, on which, the application is received in proper form.

6

Tara Exports Vs Union of India

 

WP(MD)18532 of 18 dt 10.9.18 (Madras HC)

 

8. GST is a new progressive levy. One of the progressive ideal of GST is to avoid cascading taxes. GST Laws contemplate seamless flow of tax credits on all eligible inputs. The input tax credits in TRAN 1 are the credits legitimately accrued in the GST transition. The due date contemplated under the laws to claim the transitional credit is procedural in nature. In view of the GST regime and the IT platform being new, it may not be justifiable to expect the users to back up digital evidences. Even under the old taxation laws, it is a settled legal position that substantive input credits cannot be denied or altered on account of procedural grounds.

7

Bharghava Motors Vs Union of India

WP(C) 1280/18 dt 13.5.19 (Delhi HC)

Court is satisfied that the Petitioner‟s difficulty in filling up a correct credit amount in the TRAN-1 form is a genuine one which should not preclude him from having his claim examined by the authorities in accordance with law. A direction is accordingly issued to the Respondents to either open the portal so as to enable the Petitioner to again file TRAN-1 electronically or to accept a manually filed TRAN-1 on or before 31st May 2019.

GOs issued U/APVAT Act

1

G.O.Ms. No.286

29.4.2019

registered person specified in column (3) of the table below, shall in respect of supply of goods or services or both specified in column (2) of the Table below, received from an unregistered supplier shall pay tax on reverse charge basis as recipient of such goods or services or both

2

G.O.Ms. No.287

29.4.2019

makes the following further amendments to the notification issued in G.O.Ms.No. 259, Revenue (CT.II) Department, Dated. 29.06.2017, as subsequently amended:

3

G.O.Ms. No.288

29.4.2019

makes the following further amendments to the notification issued in G.O. Ms. No. 258, Revenue (CT.II) Department, Dated. 29.06.2017,

4

G.O.Ms. No.289

29.4.2019

amendments to the notification issued in G.O.Ms.No. 588, Revenue (CT.II) Department, Dated. 12.12.2017,

5

G.O.Ms. No.290

29.4.2019

further amendments to the notification issued in G.O.Ms.No. 256, Revenue (CT.II) Department, Dated. 29.06.2017

6

G.O.Ms. No.291

29.4.2019

(i) a promoter who receives development rights or Floor Space Index (FSI) (including additional FSI) on or after 1st April, 2019 for construction of a project against consideration payable or paid by him, wholly or partly, in the form of construction service of commercial or residential apartments in the project or in any other form including in cash; (ii)a promoter who receives long term lease of land on or after 1st April, 2019 for construction of residential apartments in a project against consideration payable or paid by him, in the form of upfront amount (called as premium, salami, cost, price, development charges or by any other name) ; as the registered persons in whose case the liability to pay state tax on, - (a) the consideration paid by him in the form of construction service of commercial or residential apartments in the project, for supply of development rights or FSI(including additional FSI); (b) the monetary consideration paid by him, for supply of development rights or FSI(including additional FSI) relatable to construction of residential apartments in project; (c) the upfront amount (called as premium, salami, cost, price, development charges or by any other name) paid by him for long term lease of land relatable to construction of residential apartments in the project; and (d) the supply of construction service by him against consideration in the form of development rights or FSI(including additional FSI), - shall arise on the date of issuance of completion certificate for the project, where required, by the competent authority or on its first occupation, whichever is earlier.

7

G.O.Ms. No.292

29.4.2019

in rule 41, in sub-rule (1), after the proviso, “Explanation: - For the purpose of this sub-rule, it is hereby clarified that the “value of assets” means the value of the entire assets of the business, whether or not input tax credit has been availed thereon.”

8

G.O.Ms. No.293

29.4.2019

supply of services covered by para 5 (b) of Schedule II of APGST Act, 2017, the amount of credit attributable to the taxable supplies including zero rated supplies and exempt supplies shall be determined on the basis of the area of the construction of the complex, building, civil structure or a part thereof, which is taxable and the area which is exempt.

9

G.O.Ms 300

16.5.19

Amendment of Rules – 23, 62

10

G.O.Ms. No.301

16.5.2019

registered persons paying tax under the provisions of section 10 of the said Act or by availing the benefit of G.O.Ms No.255 Revenue (CT-II) Dept. Dt.20.03.2019 (hereinafter referred to as “the said notification”) as the class of registered persons who shall follow the special procedure as mentioned below for furnishing of return and payment of tax.

2.  The said persons shall furnish a statement, every quarter or, as the case may be, part thereof containing the details of payment of self-assessed tax in FORM GST CMP-08 of the Andhra Pradesh Goods and Services Tax Rules, 2017, till the 18th day of the month succeeding such quarter.

3.  The said persons shall furnish a return for every financial year or, as the case may be, part thereof in FORM GSTR-4 of the Andhra Pradesh Goods and Services Tax Rules, 2017, on or before the 30th  day of April following the end of such financial year. 

4.  The  registered  persons  paying  tax  by  availing  the  benefit  of  the  said notification, in respect of the period for which he has availed the said benefit, shall be deemed to have complied with the

 

 

 

 

 

provisions of section 37 and section 39 of the said  Act  if  they  have  furnished  FORM  GST  CMP-08  and  FORM  GSTR-4  as provided in para 2 and para 3 above.

11

G.O.Ms. No.302

16.5.2019

appoints the 21st day of June, 2019, as the date from which the provisions of the Andhra Pradesh Goods and Services Tax (Twenty-Eighth) Amendment Rules, 2018 rule (xi) of G.O.Ms.No.80 Rev.(CT-II) Dept. Dt.31-01-2019, shall come into force.

12

G.O.Ms. No.303

16.5.2019

 to extend the time limit for filing application for revocation of cancellation of registration for specified taxpayers - “Provided that the registered person who was served notice under sub-section (2) of section 29 in the manner as provided in clause (c) or clause (d) of sub- section (1) of section 169 and who could not reply to the said notice, thereby resulting in cancellation of his registration certificate and is hence unable to file application for revocation of cancellation of registration under sub-section (1) of section 30 of the Act, against  such order passed  up to 31.03.2019,  shall be allowed to file application  for revocation of cancellation  of the registration  not later than 22.07.2019.”

13

G.O.Ms. No.305

16.5.2019

it is necessary in the public interest so to do, hereby make the following further amendments to the notification   issued   in  G.O.Ms.No.259,   Revenue   (CT.II)   Department,  Dated. 29.06.17, namely:-

(i) In the Table, against serial number 3, in items (ie) and (if) in the entry in column (5), the figures and letters “10th” wherever they appear shall be substituted by the figures and letters “20th

(ii) In annexure IV, the figures and letters “10th” wherever they appear shall be substituted by the figures and letters “20th

CESTAT

1

Valmiki Consultants Vs Commissioner of Central Tax Hyd

ST/30061/18 - A/31277/18 dated 5.10.18 (Hyderabad Bench)

8. Thus, the Export of Services being destination based is subject to Tax. Further, mere fact that the appellant has been promoting and marketing foreign universities within India and then getting prospective students enrolled for various courses in those universities does not mean that services to foreign universities were consumed within India. There is no dispute that service recipients are foreign universities and they are located outside India and payment for such services has been received in foreign currency. From the totality of facts and circumstances, there is no doubt that these services were provided from India and used outside India

2

Delhi International Airport Ltd Vs CGST Delhi

Appeal No.ST/52332/2016-CUS [DB] dt 8.2.19 (Delhi Bench)

Again as far as non- taxability of Advance Development Cost is concerned, appellant had acted on legal opinion given by PWC which had clearly opined in 2007 that since what has been developed was infrastructure for common facilities and no exclusive rights has been vested in one or any developer. Therefore, such ADC was not taxable as renting of immoveable property. The reasoning given by the PWC in its opinion dt.09.07.2007 continues to be valid even after amendment in the definition of renting of immoveable property with effect from the definition of renting of immoveable property with effect from 1.07.2010, which brought even the vacant land with the scope of renting of immoveable property services. Therefore, we hold that extended period of limitation cannot be invoked in the facts and circumstances of the case in hand.

3

M/s Godrej & Boyce Mfg. Co. Ltd.  Vs Commissioner of CGST

Appeal NO. ST/86812/2018 dt 22.2.19

It appears that Adjudicating Authority and Appellate Authority had drawn adverse inference to the bonafideness of the appellant who consider it their burdened duty to pay Service Tax under Reverse Charge Mechanism which was infect not payable as per clarifictory circular issue by the Board.  Therefore, I do not have any hesitation to hold that appellant has passed the test of unjust enrichment and it is entitled to the refund claimed by it for non-leviable Service Tax.

Advance Rulings given in 2018

1

E-Square Leisure Pvt. Ltd.  Maharashtra

Case No.76 dt  29.12.2018

There are some parameters for a payment to qualify as ‘security deposit’ a) for performance of an obligation b) security against return of hired goods c) security against damage to properties rented and it should be reasonable  It was further held that these· parameters apply in the present case, so it ruled that security deposit taken by the applicant cannot be treated as consideration for supply and they are not liable to pay any GST on the same.

Advance Rulings given in 2019

1

MalliRamalingam Mothilal (Tamil Nadu))

12/AAR/2019 dt 22.3.19

 

Branded textile yarns supplied by the applicant made Polypropylene Yarn is classifiable under 5607 4900, made of other synthetic Yarn is classifiable under 5607 5090, made of Cotton is classifiable under 5607 9090   

2

Dagger Die Cutting (India) Private Limited

13/AAR/2019 dt  22.03.2019

The issue for which Advance Ruling is sought depends on the ‘Place of Supply’ of the goods, which is not in the ambit of this authority……The application for Advance Ruling dated 23.10.2018 pf M/s Dagger Die Cutting (India) Private Limited is rejected, under Sub-section (2) of the CGST Act, 2017 and the TNGST Act 2017.

3

Sameer Mat Industries Tamil Nadu

14/AAR/2019 dt 22.3.2019

1. The Polypropylene Mat which are plaited using polypropylene straw is classifiable under CTH 46019900

2. The applicable tax rate from 1.7.2017 to 24.1.2018 is 9% CGST as per sl. No. 453 of Schedule-III of Notification No. 1/2017 – CT (Rate) dated 28.06.2017 as amended and 9% SGST as per Sl. No. 453 of Schedule-III of Notification No. II(2)/CTR/532(d-4)2017 vide G.O.Ms. No. 62 dated 29.06.2017 as amended. The from 25.01.2018 to 31.12.2018 is 2.5% CGST as per Sl No. 198A of Schedule I of Notification No.1/2017  - C.T. (Rate) dated 28.06.2017 as amended and 2.5% SGST as per Sl. No.198A of schedule I of Notification II2)/CTR/532(d-4)2017 vide G.O.Ms. No. 62 dated 29.06.2017 as amended. The rate from 01.01.2019 onwards 2.5% CGST as per Sl No.198AA of Notification 01/2017-C.T. (Rate) dated 28.06.2017 as amended 2.5% SGST as per Sl. No.198A of schedule I of Notification II2)/CTR/532(d-4)2017 vide G.O.Ms. No. 62 dated 29.06.2017 as amended.

4

Narsingh Transport (MP)

 

02/2019 dt 18.2.19

 

The applicant is entitled to avail ITC on cars (Passenger vehicles) which are further supplied to customers on lease rent, subject to conditions applicable in such supply of services as per Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017 as amended from time to time and corresponding notifications issued under MPGST Act.

The provision of Rule 42 shall also applicable if required so.

At the termination of lease agreement /contract, if the vehicle is not further leased to same or some other customer, the applicant shall be liable to reverse the ITC availed as per law.

Such vehicles should be abide by the norms and regulations of The Motor Vehicles Act in accordance to be registered for commercial use with Transport Authority and not to put to own use by the applicant

5

Udyog Mandir (Rajasthan)

 

Raj/AAR/2019-20/ dt 16.4.19

 

Khadi readymade garments are not covered under the entry of 130A, chapter heading 50 to 55 of Notification No.02/2017 – Central Tax (Rate) dt 28.06.2017

Khadi readymade garments will be classifiable under Chapter heading/tariff item 62, as per Notification No.01/017-Central Tax (Rate) dated 28.06.2017 will attract GST as follows-:

 

a. If the sale value of a readymade khadi garments manufactured by the applicant is less than Rs.1000- will attract GST @5% (SGST 2.5% + CGST 2.5%)

b. If the sale value of a readymade khadi garments manufactured by the applicant is more than Rs.1000/- will attract GST @ 12% (SGST 6% + CGST 6%)

 

 

 

6

Lakshmi Rubber Industries  (Rajasthan)

Raj/AAR/2019-20/02 dt 16.4.19

The goods manufacture and supplied by the applicant viz Rubber Ring Gasket Seal, Rubber Foot Batten Washer and Rubber Grommets are classifiable under Chapter Heading 4016 and attract GST @18% (CGST 9% + SGST 9%)

7

Lakshmi Agrotech Steel (Rajasthan)

Raj/AAR/2019-20/03 dt 16.4.19

The metal parts manufactured and supplied by the applicant will not be covered under Entry No.195B of Schedule II of Notification NO.01/2017 dated 28.06.2017

8

Gitwako Farms India Pvt Ltd (Rajasthan)

Raj/AAR/2019-20/04 dt 16.4.19

a. The Branded Frozen Chicken supplied in a unit container is classifiable under HSN Code 02071200.

b. The Frozen Chicken supplied by the applicant is not exempted under Entry No.9 of Notification No.02/207-CT(Rate) dated 28.06.2017 (as amended from time to time)

9

Rambagh  palace  Hotels Pvt.  Ltd (Rajasthan)

Raj/AAR/2019-20/05 dt 30.4.19

ITC will not be available to the extent of capitalization of building material, labour supply, electrical fittings and sanitary fittings. ITC for GST paid on supply of wood, paint, polish and other items, service labour supply for repairs and new ready to use furniture  will be available in accordance with Section 16 of CGST / RGST Act 2017

10

Innovative Textiles Ltd (Uttarakand)

20/2018-19 dt 26.3.19

In view of the above discussion we hold that transfer of Sitarganj Business shall be treated as a going concern and is exempted from GST as on date in terms of Notification No.12/2017 – Central Tax (Rate) dated 28.06.2017

7

Lakshmi Agrotech Steel (Rajasthan)

Raj/AAR/2019-20/03 dt 16.4.19

The metal parts manufactured and supplied by the applicant will not be covered under Entry No.195B of Schedule II of Notification NO.01/2017 dated 28.06.2017

8

Gitwako Farms India Pvt Ltd (Rajasthan)

Raj/AAR/2019-20/04 dt 16.4.19

c. The Branded Frozen Chicken supplied in a unit container is classifiable under HSN Code 02071200.

d. The Frozen Chicken supplied by the applicant is not exempted under Entry No.9 of Notification No.02/207-CT(Rate) dated 28.06.2017 (as amended from time to time)

9

Rambagh  palace  Hotels Pvt.  Ltd (Rajasthan)

Raj/AAR/2019-20/05 dt 30.4.19

ITC will not be available to the extent of capitalization of building material, labour supply, electrical fittings and sanitary fittings. ITC for GST paid on supply of wood, paint, polish and other items, service labour supply for repairs and new ready to use furniture  will be available in accordance with Section 16 of CGST / RGST Act 2017

10

Innovative Textiles Ltd (Uttarakand)

20/2018-19 dt 26.3.19

In view of the above discussion we hold that transfer of Sitarganj Business shall be treated as a going concern and is exempted from GST as on date in terms of Notification No.12/2017 – Central Tax (Rate) dated 28.06.2017

Notifications Issued under GST (CBIC)

1

Notification No. 17/2019 – Central Tax

10.4.19 [F.No.20/06/16/2018-GST (Pt. II)]

“Provided also that the details of outward supply of goods or services or both in FORM GSTR-1 of the Central Goods and Services Tax Rules, 2017 for the month of March, 2019 shall be furnished electronically through the common portal, on or before the 13th April, 2019.”

2

Notification No. 19/2019 – Central Tax

22.4.19

[F.No.20/06/16/2018-GST (Pt. – I)]

“Provided also that the return in FORM GSTR-3B of the said rules for the month of March, 2019 shall be furnished electronically through the common portal, on or before the 23rdApril, 2019.”.

3

Notification No. 20/2019 – Central Tax

23.4.19

[F. No. 20/06/16/2018-GST]

in rule 23, in sub-rule (1), after the first proviso, the following provisos shall be inserted, namely:- “Provided further that all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration: Provided also that where the registration has been cancelled with retrospective effect, the registered person shall furnish all returns relating to period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration within a period of thirty days from the date of order of revocation of cancellation of registration.”.

4

Notification No.21 /2019 – Central Tax

23.4.19             [F. No. 20/06/16/2018-GST]

the class of registered persons who shall follow the special procedure as mentioned below for furnishing of return and payment of tax. 2. The said persons shall furnish a statement, every quarter or, as the case may be, part thereof containing the details of payment of self-assessed tax in FORM GST CMP-08 of the Central Goods and Services Tax Rules, 2017, till the 18th day of the month succeeding such quarter. 3. The said persons shall furnish a return for every financial year or, as the case may be, part thereof in FORM GSTR-4 of the Central Goods and Services Tax Rules, 2017, on or before the 30th day of April following the end of such financial year. 4. The registered persons paying tax by availing the benefit of the said notification, in respect of the period for which he has availed the said benefit, shall be deemed to have complied with the provisions of section 37 and section 39 of the said Act if they have furnished FORM GST CMP-08 and FORM GSTR-4 as provided in para 2 and para 3 above.

 

 

 

From 21.06.2019, The GST e-waybill portal shall not allow to generate e-waybill by or in fvaour of a tax payer who has not filed GST return for consecutively 2 tax periods. (Rule -138 of CGST Rule)(Notification number 22/2019-Central Tax, dt. 23-04-2019).

From the FY-2019-2020 and onward all taxpayers under composition scheme (Traders, Manufacturers, Restaurant Owners, Service Providers etc) need to file two GST returns as below:-

GST Return

Frequency

Due Date

Late Fee

CMP-8-Payment of self assessed tax

Quarterly

Within 18th of next month

Rs.20.00 per day (10+10) for Nil return

Rs.50.00 per day (25+25)for taxable

GSTR-4

Annually

Within 30 April after ending the FY

Rs.20.00 per day (10+10) for Nil return

Rs.50.00 per day (25+25)for taxable

5

Notification No.22 /2019 – Central Tax

23.4.19             [F. No. 20/06/16/2018-GST]

Central Government hereby appoints the 21st day of June, 2019, as the date from which the provisions of the Central Goods and Services Tax (Fourteenth) Amendment Rules, 2018 rule 12 of [notification No. 74/2018–Central Tax, dated the 31st December, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1251(E), dated the 31st December, 2018], shall come into force.

6

Notification No.23 /2019 – Central Tax

[F.No.20/06/17/2018 - GST] dt 23.4.2017

amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 12/2019- Central Tax, dated the 07th March, 2019 published in the Gazette of India, Extraordinary, Part II, Section 3 sub-section (i) vide number G.S.R. 194(E) dated the 07th March, 2019, namely:-   In the said notification, in the first paragraph, the following proviso shall be inserted, namely:

 “Provided that the details of outward supply of goods or services or both in FORM GSTR-1 of  the  Central  Goods  and  Services  Tax  Rules,  2017  for  the  month  of  April,  2019  for registered persons whose principal place of business is in the districts of Angul, Balasore, Bhadrak , Cuttack , Dhenkanal , Ganjam, Jagatsinghpur, Jajpur, Kendrapara, Keonjhar, Khordha, Mayurbhanj, Nayagarh and Puri in the State of Odisha shall be furnished electronically through the common portal, on or before the 10th June, 2019.”.

7

Notification No.24 /2019 – Central Tax

[F.No.20/06/17/2018 - GST] dt 11.5.2019

“Provided that the return in FORM GSTR-3B of the said rules for the month of April, 2019 for registered persons whose principal place of business is in the districts of Angul, Balasore, Bhadrak , Cuttack , Dhenkanal , Ganjam, Jagatsinghpur, Jajpur, Kendrapara, Keonjhar, Khordha, Mayurbhanj, Nayagarh and Puri in the State of Odisha shall be furnished electronically through the common portal, on or before the 20th June, 2019.”.

 

Circulars Issued under GST (CBIC)

1

Corrigendum to Circular No. 76/50/2018-GST

7.3.19

1. Section 15(2) of CGST Act specifies that the value of supply shall include “any taxes, duties cesses, fees and  charges levied under any law for the  time being in force other than this Act, the SGST Act, the UTGST Act and the GST (Compensation to States) Act, ifGST (Compensation to States) Act, if charged separately by the supplier.”  2. For the purpose of determination of  value of supply under GST, Tax collected at source (TCS) under the provisions of the Income Tax Act, 1961 would not be includible as it is an interim levy not having the character ofinterim levy not having the character of tax

2

Cicular No. 97/16/ 2019

5.4.19

(i) a registered person who wants to opt for payment of central tax @ 3% by availing the benefit of the said notification, may do so by filing intimation in the manner specified in sub-rule 3 of rule 3 of the said rules in FORM GST CMP-02 by selecting the category of registered person as “Any other supplier eligible for composition levy” as listed at Sl. No. 5(iii) of the said form, latest by 30th April, 2019. Such person shall also furnish a statement in FORM GST ITC03 in accordance with the provisions of sub-rule (3) of rule 3 of the said rules. (ii) any person who applies for registration and who wants to opt for payment of central tax @ 3% by availing the benefit of the said notification, if eligible, may do so by indicating the option at serial no. 5 and 6.1(iii) of FORM GST REG-01 at the time of filing of application for registration. (iii) the option of payment of tax by availing the benefit of the said notification in respect of any place of business in any State or Union territory shall be deemed to be applicable in respect of all other places of business registered on the same Permanent Account Number. (iv) the option to pay tax by availing the benefit of the said notification would be effective from the beginning of the financial year or from the date of registration in cases where new registration has been obtained during the financial year.

3

Cicular No. 98/17/ 2019

23.4.19

The newly inserted rule 88A in the CGST Rules allows utilization of input tax credit of Integrated tax towards the payment of Central tax and State tax, or as the case may be, Union territory tax, in any order subject to the condition that the entire input tax credit on account of Integrated tax is completely exhausted first before the input tax credit on account of Central tax or State / Union territory tax can be utilized.

4

Cicular No. 99/18/ 2019

23.4.19

4. Where the registration has been cancelled with retrospective effect, the common portal does not allow furnishing of returns after the effective date of cancellation. In such cases it was not possible to file the application for revocation of cancellation of registration. Therefore, a third proviso was added to sub-rule (1) of rule 23 of the said Rules enabling filing of application for revocation of cancellation of registration, subject to the condition that all returns relating to the period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration shall be filed within a period of thirty days from the date of order of such revocation of cancellation of registration.

5

Cicular No. 100/19/ 2019

30.4.19

All the above charges, including those for issue of seed certificates/tags by the Seed Certification Agency of Tamil Nadu and Uttarakhand to the seed producing organization/ companies are collected for the composite supply of seed testing and certification, which is exempt under Notification No. 12/2017-Central Tax (Rate) Sl. No. 47 (services by Central/State Governments by way of testing/certification relating to safety of consumers and public at large, required under any law). This clarification would apply to supply of seed tags by seed testing and certification agencies of other states also following similar seed testing and certification procedure. 5. However, the State Governments/Seed Certification Agencies may get the tags used in

 

 

 

 

seed certification printed from other departments/ manufacturers outside. Supply of seed tags by the other departments/manufacturers to the State Government/Seed Certification Agencies is a supply of goods liable to tax. Whether such tags would be classified under Chapter 49 as tags made of paper or in Textile chapters as tags made of textile would depend upon the predominant material used in the tags.

6

Cicular No. 101/20/ 2019

30.4.19

GST exemption on the upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable for long term lease (of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business under Entry No. 41 of Exemption Notification 12/2017 – Central Tax (R) dated 28.06.2017 is admissible irrespective of whether such upfront amount is payable or paid in one or more instalments, provided the amount is determined upfront

7

Circular No. 04/01/2019-IGST

1.2.19

The provisions of the CGST (Amendment) Act, 2018 and SGST Amendment Acts of the respective States have been brought into force w.e.f. 01.02.2019. Schedule III of the CGST Act, 2017 has been amended vide section 32 of the CGST (Amendment) Act, 2018 so as to provide that the “supply of warehoused goods to any person before clearance for home consumption” shall be neither a supply of goods nor a supply of services. 2. Accordingly, Circular No. 03/01/2018-IGST dated 25th May, 2018 is hereby rescinded.



 

Professional Updates- April 2019

 

AP VAT / GST Update Ambati Chinna Gangaiah

agcpower@icai.org 9391142969

 

Supreme Court

 

1

Union of India Vs Margadharshi Chits

AC 5724-25/ 11 dt 4.7.17

A bare look at the aforesaid definition compels us to hold that chit fund cannot be treated as fund management as understood in the sense the term is known in business parlance. We therefore hold that the chit fund business was not covered by sub-clause (v) of sub-section 12 of Section 65 after amendment by Finance Act 2007

2

UOI & Ors. Vs

Coastal Container Transporters Association & Ors.

AC 2276/19 dt 26.2.19

this Court has held that excise law is a complete code in order to seek redress in excise matters and held that entertaining writ petition is not proper where alternative remedy under status is available. When there is a serious dispute with regard to classification of service, the respondents out to have responded to the support of their stand but at the same time; there is no reason to approach the High Court questioning the very show cause notices. Further, as held by the High Court, it cannot be said that even from the contents of show cause notices there is no factual disputes.

3

Commissioner Commercial Tax U.P Vs S/S Perfaty Wanmele India Pvt. Ltd.

SLP (CIVIL) Diary No(s). 1375/2019

Dt 5.3.19

SLP dismissed. Allahabad HC in STR 411/17 dt 19.2.18 specified “……21. It is settled that onus or burden to show that a product falls within a particular tariff item is always on the revenue. Once the assessee has discharged its initial burden of proving the product to be covered by Entry 41, it was then for the revenue to prove by adducing cogent evidence that the product did not fall under the Entry 41, so as to take it to the residuary entry. Revenue, admittedly, has failed to discharge such onus……….21. It is settled that onus or burden to show that a product falls within a particular tariff item is always on the revenue. Once the assessee has discharged its initial burden of proving the product to be covered by Entry 41, it was then for the revenue to prove by adducing cogent evidence that the product did not fall under the Entry 41, so as to take it to the residuary entry. Revenue, admittedly, has failed to discharge such onus…………”

4

AC (CT) LTU Vs Micromax Informatics Limited, Kanuru, Vijayawada 

SLP (CIVIL) Diary No(s). 45522/2018

Dt 15.3.19

SLP dismissed – High Court Hyderabad in WP 10680/18 dt 26.4.18 specified “….6. By filing an appeal and making a pre-deposit, the petitioner has now paid 50% of the disputed tax. Therefore, the writ petition is allowed and the impugned demand is set aside. The petitioner will have the benefit of interim stay pending appeal before the VAT Appellate Tribunal……..” 

 

Bajaj Auto Limited Vs UOI

AC 3239/19 dt 27.3.19

In the case of NCCD, it is in the nature of an excise duty. It has to bear the same character as those respective taxes to which the surcharge is appended. NCCD will not cease to be an excise duty, but is the same as an excise duty, even if it is levied on the product. Thus, when NCCD, at the time of collection, takes the character of a duty on the product, whatever may be the rationale behind it, it is also subject to the provisions relating to excise duty, applicable to it in the manner of collection as well as the obligation of the taxpayer to discharge the duty. Once the excise duty is exempted, NCCD, levied as an excise duty cannot partake a different character and, thus, would be entitled to the benefit of the exemption notification. The exemption notification also states that the exemption is from the “whole of the duty of excise or additional duty of excise.”

High Court

 

1

Oriental Cuisines Pvt Ltd vs Deputy Commissioner of Commercial Taxes

WP No. 57182-57193 /16 Dt 2.4.18 (Karnataka HC)

Indisputably, the certificate issued under Rule 137 was not cancelled during the tax period April 2014 to March 2015.

18. Hence, for the period in question, no reassessment can be made under Section 39[1] of the VAT Actsubjecting the petitioner to tax under VAT Scheme. It is not in dispute that the petitioner is filing VAT 100 returns and paying the tax under the VAT Scheme subsequent to cancellation of the composition certificate with effect from 22.07.2015. Hence, on this count alone, the reassessment order impugned herein deserves to be quashed without adverting to the other arguments canvassed.

2

Jindal Agro Oils Vs State of Madhya Pradesh

WP 3236/17 dt 12-7-18 (MP HC (Inore Bench)

23. The object to enact the Validation Act is just to avail the remedy with a view to remove the defect or lacuna of the provisions of the VAT Act so that the Public Exchequer can be secured adequately, because by inserting an explanation in statute, the main provision of the VAT Act has not been defeated but simply the explanation has been inserted to clarify the position retrospectively, so that no tax evasion can be made by any tax payer……….31. As per Validation Act, it is clear that by a competent legislative provision, the substratum of foundation of a judgment has been removed with retrospectively, the said exercise is a valid legislative exercise and it does not suffer from any invalidity.

3

Dinda Ante Vs Commissioner of Commercial Taxes

WP 36026/18 dt 21.11.18 (Kerala HC)

petitioner may apply to the additional sixth respondent Nodal Officer. The petitioner applying, the Nodal Officer will look into the issue and facilitate the petitioner’s uploading FORM GST TRAN-1, without reference to the time-frame. Ordered so.

6. I may also observe that if the petitioner applies within two weeks after receiving this judgment, the Nodal Officer will consider it and take steps within a week thereafter. If the uploading of FORM GST TRAN-1 is not possible for reasons not attributable to the petitioner, the authority will also enable it to take credit of the input tax available at the time of its migration

4

H.M. Industrial Pvt Limited Vs Commissioner of CGST and Central Excise

SCA 1160/19 dt 7.2.19 (Gujarat HC

(Interim Orders)

even if such amount cannot be recovered from the private company, the directors of the company do not ipso facto become liable to pay such amount and it is only if the director fails to prove that non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company, that the same can be invoked. However, in any case, at this stage, section 83 of the Act does not apply to the directors of the private company. Under the circumstances, the impugned orders of attachment to the extent to same attach the bank accounts of the directors, as set out in the statement at page 8 and 9opf the petition, at serial No. 1, 2, 3, 4, 5, 10 and 11 are concerned, are totally without any authority of law.

5

 

SCA 1160/19 dt 21.2.19

Admittedly, the petitioner has already reversed input tax credit to the tune of Rs.13,28,00,000/­. In the opinion of this Court, considering the amount paid by reversing input tax credit, the interest of the Revenue is sufficiently secured. Therefore, the provisional attachment of the above referred bank accounts of the petitioner is no longer justified.

12. For the foregoing reasons, the petition succeeds and is, accordingly, allowed. The respondent is directed to forthwith release the provisional attachment

 

GOs issued U/APVAT Act

1

G.O.Ms.No.252

20.3.19

Prescribing persons, whose aggregate turnover in the financial year does not exceed Rs 40 Lakhs and engaged in exclusive supply of goods, exempt from obtaining registration

2

G.O.Ms.No.253

20.3.19

prescribing time period for filing GSTR-1 for those registered persons having aggregate turnover up to 1.5 crore rupees in the preceding financial year or the current financial year

3

G.O.Ms.No.254

20.3.19

Prescribing option, for eligible registered persons, whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees, to pay tax under composition scheme

4

G.O.Ms.No.255

20.3.19

Prescribing composition scheme with 3% rate of tax for persons having annual turnovers up to Rs 50 Lakhs in the preceding year and supplies include services

5

G.O.Ms.No.256

20.3.19

Constitution of Consumer Welfare Fund – Formation of Standing Committee under sub rule(4) of rule 97 of APGST Rules

 

CESTAT

 

1

Allied Blenders and Distillers Pvt. Ltd Vs CCE and ST

ST/87204/2017 dt 25.06.18 (CESTAT Mumbai)

it was noticed that the appellant had been receiving services from the directors, but failed to discharge service tax under reverse charge mechanism, on the remuneration paid, in accordance with Notification number 30/2012–ST dated 20.06.2012 and Notification number 45/2012 dated 07.8.2012……….company are paying them remuneration which is nothing but salary. All the necessary deductions on account of Provident Fund, Professional Tax and TDS under Section 192 of the Income Tax Act are made as applicable; also they were issuing Form-16 like it is issued to all other employees. Even in the salary return filed by the appellant company before the Income Tax authorities, the director’s names have been included. The company does not pay the director’s company are paying them remuneration which is nothing but salary. All the necessary deductions on account of Provident Fund, Professional Tax and TDS under Section 192 of the Income Tax Act are made as applicable; also they were issuing Form-16 like it is issued to all other employees. Even in the salary return filed by the appellant company before the Income Tax authorities, the director’s names have been included. The company does not pay the director’s No contrary evidence has been brought on record by the Revenue to show that the Directors, who were employee of the appellant received amount which cannot be said as ‘salary’ but fees paid for being Director of the company. The Income Tax authorities also assessed the remuneration paid to the said directors as salary, a fact cannot be ignored.

2

AKZO Nobal India Limited

ST/61022/2018 dt 01.11.18 (Chandigarh CESTAT)

Unless until the goods are not marketable, they are not excisable. Therefore, any activity/services availed by the assessee till the product become excisable is entitled for input services credit in terms of Rule 2 (l) of Cenvat Credit Rules, 2004. As the said rule provides that any service directly or indirectly availed in relation to manufacture of final product is an input service. Accordingly, the service availed by the appellant before the stage the paint becomes marketable, I hold that the appellant is entitled to avail cenvat credit on Repair & Maintenance Service of Automatic Dispensing Machines which enables their product marketable consequently excisable.

3

Great India Steel Fabricatros Vs CCE

E 60833, 836/18 dt 14.2.18 (Chandigarh Bench)

Considering the fact that on introduction of Central GST Act, 2017, Section 142 deals the situation which directs the authorities to sanction all the refund claims in cash, therefore, no authority can sanction refund claim to be credited in Cenvat credit account. In that circumstances, I modify the impugned orders to the extent that refund claims are to be allowed in cash, instead of crediting in Cenvat credit account. Accordingly, the appellant is entitled the refund claims in cash.

Advance Rulings given in 2018

1

Bharat Petroleum Corporation Ltd Kerala

KERf 21 /2018 Dt.20.10.2018

activity of the applicant of sending Regasified Liquefied Natural Gas (RLNG), De-Mineralized Water (OM Water), Hydrogen Rich off Gas and Raw water free of cost to M/s. Prodair Air Products Pvt. Ltd. For manufacture of Hydrogen, Nitrogen and Steam manufactured out of its amount to 'job work' as defined under Section 2(68) read with Section 143 of the CGST/KSGST Acts.

Advance Rulings given in 2019

1

Xiaomi Technology India Pvt Ltd (Karnataka)

No.1 dt 22.1.19

Whether the “Power Bank”, traded by the Applicant, is classifiable under Heading 8504 40 90 as ‘Static Converter – Others’? – The “Power Bank” traded by the Applicant is classifiable under Heading 8507 as Accumulator and not Static Converter.

2

Akshay Patra Foundation (Rajasthan)

RAJ/AAR/2018-19/28 dated 09.01.2019

A. Preparation and serving of food to children of government schools under Mid-day meal Program of Government and serving of food under Government sponsored Anganwadi meals program is covered under the scope of ‘supply’ as per section 7 of CGST / RGST Act, 2017.

B. The transfer of goods capital equipments, exclusively used for Mid-Day Meal (MDM) program and Anganwadi meals program sponsored by Government, between different kitchens of applicant which are 'distinct persons' as per GST law is covered under the scope of 'supply' as per section 7 of CGSTIRGST Act, 2017.

C. The sale of scrap items (as mentioned in statement of facts by the applicant) which was generated during Mid-Day Meal program is an activity of sale and thus covered under the scope of 'supply' as per section 7 of CGSTIRGST Act, 2017.

3

KM Trans Logistics Pvt Limited (Rajasthan)

RAJ/AAR/2018-19/29 dated 09.01.2019

a. In the instant case, the applicant is providing services from his registered place of business i.e. Jaipur in the state of Rajasthan. Therefore place of business for the purpose of registration is Jaipur.

b. The registration under GST regime is applicable on place of supply of goods or services or both. Since in the instant case, as per the facts submitted by the applicant, the place of supply is from the state of Rajasthan, thus applicant is required to take registration at Jaipur, Rajasthan only. 

c. The vacant land taken on lease by the applicant for parking of vehicles and drivers rest is outside the State of Rajasthan. The authority for advance ruling is created under SGST/UTGST Act and thus ruling are applicable within particular state only, it is for this reason that question relating to registration of vacant lands taken on lease by the applicant is out of purview of the authority and hence no ruling is given on this aspect.

4

IMF Cognitive Technology Pvt Ltd

(Rajasthan)

RAJ/AAR/2018-19/30 dated 09.01.2019

Input tax credit of Central Tax paid in Haryana is not available to the applicant who is registered in state of Rajasthan.

 

5

Kalish Chandra (Rajasthan)

RAJ/AAR/2018-19/31 dated 31.01.2019

The activity of supply, design, installation, commissioning and testing of reverse osmosis plant and O&M work by the applicant is a Works Contract of Composite Supply. This composite supply is a mixed of goods and services and predominant supply is supply of services. Since this supply is proposed to be undertaken for a Government Department, hence the rate of tax applicable on given service (as it is a works contract service) shall fall under Entry 3 (iii) with HSN Code 99544 and it should be IGST@12%(CGST@6% & SGST@6%)

6

Shyam Singh Champawat (Rajasthan)

RAJ/AAR/2018-19/33 dated 31.01.2019

The questions sought by the applicant are related to activity undertaken in past-period thus not eligible for advance ruling as per Section 95(a) of CGST/RGST Act, 2017 and hence no ruling is given

7

GGL Hotel Resort Co Ltd West Bengal

30/WBAAR/2018-19 dated 08.01.19

Input Tax Credit is not available to the Applicant for lease rent paid during pre-operative period for the leasehold land on which the resort is being constructed on his own account to be used for furtherance of business, when the same is being capitalised and treated as capital expenditure.

8

US Polytech West Bengal

31/WBAAR/2018-19 dated 08.01.19

‘PP Non-woven Bags’, specifically made from non woven Polypropylene fabric are plastic goods to be classified under Sub Heading 3923 29 and taxed at 18 % rate under Serial No. 108 of Schedule III of Notification no. 01/2017-C.T (Rate) dated 28-06-2017 under the CGST Act, 2017 & Notification No. 1125-FT dated 28/06/2017 under the WBGST Act, 2017.

9

WEBFIL Ltd

West Bengal

32/WBAAR/2018-19 dated 08.01.19

The Applicant, if established by government notification, is liable to deduct tax at source under section 51(1) read with Notification No. 1344-FT dated 13/09/2018, being a company controlled by the Central and the State Governments.

10

ITD Cementation India Ltd West Bengal

33/WBAAR/2018-19 dated 08.01.19

Amendments to Serial No. 3(vi) of Notification No. 11/2017–CT (Rate) dated 28/06/2017, brought about by Notification No. 24/2017-CT (Rate) dated 21/09/2017 and 31/2017 – CT (Rate) dated 13/10/2017, are not applicable to the Applicant’s supply of works contract service for construction of the Multi-modal IWT Terminal at Haldia. It will attract GST at 18% rate under Serial No. 3(xii) of 11/2017–CT (Rate) dated 28/06/2017.

11

Dinman Polypacks Pvt Ltd West Bengal

34/WBAAR/2018-19 dated 28.01.19

Poly Propylene Leno Bags‟ are to be classified as plastic bags under HSN 3923 and would attract 18% GST.

12

Abishek Tirewal (HUF) carrying on business under trade name Avantika Industries

35/WBAAR/2018-19 dated 28.01.19 West Bengal

Springs of Iron and Steel for Railways are classifiable under HSN Code no. 7320 (taxable @18%) under Serial No. 234 of Schedule III of Notification No. 1/2017- CT (Rate) dated 28.06.2017.

13

GGL Hotel Resort Co Ltd West Bengal

30/WBAAR/2018-19 dated 08.01.19

Input Tax Credit is not available to the Applicant for lease rent paid during pre-operative period for the leasehold land on which the resort is being constructed on his own account to be used for furtherance of business, when the same is being capitalised and treated as capital expenditure.

14

US Polytech West Bengal

31/WBAAR/2018-19 dated 08.01.19

‘PP Non-woven Bags’, specifically made from non woven Polypropylene fabric are plastic goods to be classified under Sub Heading 3923 29 and taxed at 18 % rate under Serial No. 108 of Schedule III of Notification no. 01/2017-C.T (Rate) dated 28-06-2017 under the CGST Act, 2017 & Notification No. 1125-FT dated 28/06/2017 under the WBGST Act, 2017.

15

WEBFIL Ltd

West Bengal

32/WBAAR/2018-19 dated 08.01.19

The Applicant, if established by government notification, is liable to deduct tax at source under section 51(1) read with Notification No. 1344-FT dated 13/09/2018, being a company controlled by the Central and the State Governments.

16

ITD Cementation India Ltd West Bengal

33/WBAAR/2018-19 dated 08.01.19

Amendments to Serial No. 3(vi) of Notification No. 11/2017–CT (Rate) dated 28/06/2017, brought about by Notification No. 24/2017-CT (Rate) dated 21/09/2017 and 31/2017 – CT (Rate) dated 13/10/2017, are not applicable to the Applicant’s supply of works contract service for construction of the Multi-modal IWT Terminal at Haldia. It will attract GST at 18% rate under Serial No. 3(xii) of 11/2017–CT (Rate) dated 28/06/2017.

17

Dinman Polypacks Pvt Ltd West Bengal

34/WBAAR/2018-19 dated 28.01.19

Poly Propylene Leno Bags‟ are to be classified as plastic bags under HSN 3923 and would attract 18% GST.

18

Abishek Tirewal (HUF) carrying on business under trade name Avantika Industries

35/WBAAR/2018-19 dated 28.01.19 West Bengal

Springs of Iron and Steel for Railways are classifiable under HSN Code no. 7320 (taxable @18%) under Serial No. 234 of Schedule III of Notification No. 1/2017- CT (Rate) dated 28.06.2017.

19

Vedika Exports Tea Pvt Ltd

36/WBAAR/2018-19 dated 28.01.19 West Bengal

The Applicant makes a composite supply to Hindustan Unilever Ltd, where the service of manufacturing tea bags from the physical inputs owned by the latter is the principal supply. It is classifiable under SAC 9988 and taxable at 5% rate under Sl No. 26(f) of Notification No. 11/2017 – CT (Rate) dated 28/06/2017, as amended from time to time. Applicability of this Ruling with respect to other recipients is subject to the specific nature of the contracts with them.

20

NIS Management Ltd

37/WBAAR/2018-19 dated 28.01.19 West Bengal

Sweeping Service that the Applicant supplies to the Housing Directorate of the Government of West Bengal, cannot be classified as an activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Article 243W of the Constitution. The exemption under Sl No. 3 or 3A, as the case may be, of Notification No 12/2017-CT (Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136-FT dated 28.06.2017 is not, therefore, applicable to such supplies.

21

Exserviceman Resettlement Society

38/WBAAR/2018-19 dated 28.01.19 West Bengal

Benefit of exemption from the payment of GST is not available to the Applicant under Notification No 12/2017-CT(Rate) dated 28.06.2017 and WB Govt Gazette Notification-1136- FT dated 28.06.2017, as amended, for the supply of Security Services and the bundle of service that he describes as „Scavenging Services

22

Storm Communications Pvt Ltd

39/WBAAR/2018-19 dated 28.01.19 West Bengal

The Applicant is not registered under Section 25(1) of the CGST Act in Tamil Nadu. The SGST and CGST paid on intra-state inward supply in Tamil Nadu are not, therefore, „input tax‟ to the Applicant. The GST Act does not contain any concept of „input tax‟ in relation to an unregistered person. No credit of it is, therefore, admissible under the GST Act.

So, to answer in the applicant’s language:

a. A person, registered in WB cannot claim ITC for CGST & SGST of other states.

b. He cannot adjust the ITC of one state’s CGST for payment of another state’s CGST

c. He cannot adjust the ITC of Tamil Nadu GST for payment of IGST, whereas he is not registered in Tamil Nadu.

 

23

Aravali Polyart Pvt. Ltd Rajasthan

Raj/AAR/2018-19/34 dt 15.2.19

Activity undertaken by the application is classifiable under heading 9973 (Leasing or rental services, with or without operator), as mentioned in the annexure at Serival No. 257 (Licensing services for the right to use minerals including its expolaration and evaluation) sub heading 9973377 of notification number 11/2017-CT (Rate) dated 28.06.2017. The application is liable to discharge tax liability under reverse charge mechanism vide Notification No.13/2017-CT (Rate) dated 28.06.2017 (as amended from time to time) of CGST Act, 2017. The activity undertaking by the applicant attracts 18% GST (9% CGST + 9% SGST)

24

M/ s Shambhu Traders Private Limited

 Rajasthan

Raj/AAR/2018-19/35 dt 15.2.19

1. The used lead acid batteries qualify to be second hand goods. Accordingly, the applicant dealer is entitled to operate under the Margin Scheme in respect of the used lead acid batteries.

2. The query raised by the applicant is not specified in Section 97(2) of CGST Act/RGST act, 2017, therefore, no advance ruling is given.

3. The Rule 32(5) of the CGST Rules, 2017 which provides for Margin Scheme in the case of intra-state supplies shall so be applicable in the inter-state supplies of used lead acid batteries while operating under the Margin Scheme.

25

Tewari Warehousing Co Pvt Ltd West Bengal

40/WBAAR/2018-19 dated 18/02/2019

The warehouse being constructed is immovable property. The input tax credit is, therefore, not admissible on the inward supplies for construction of the said warehouse, as the credit of such tax is blocked under section 17(5)(d) of the GST Act. This Ruling is valid subject to the provisions under Section 103 until and unless declared void under Section 104(1) of the GST Act.

26

Piyush Polytex Industries Pvt Ltd

41/WBAAR/2018-19 dated 26.02.2019

(i) Bags/Sacks (both with & without Handle) made of Laminated P.P. Nonwoven Fabric is classifiable under Sub-Heading 39232990,

(ii) Bags/Sacks (both with & without Handle) made of B.O.P.P. Pasted P.P. Nonwoven Fabric is classifiable under Sub-Heading 39232990, and

(iii) Bags/Sacks (both with & without Handle) made of Woven Fabric Pasted with Nonwoven Fabric have to be classified as per the General Rules for the Interpretation of the First Schedule of the Customs Tariff .

This Ruling is valid subject to the provisions under Section 103 until and unless declared void under Section 104(1) of the GST Act.

27

Sari Educational Centre, West Bengal

42/WBAAR/2018-19 dated 26.02.2019

The Applicant is offering several individual services in two different combinations to the recipients, depending upon their need for lodging facility. None of the combinations of services being offered is a composite supply, as defined under section 2(30) of the GST Act. They are mixed supplies within the meaning of section 2(74) and taxable in accordance with section 8(b) of the GST Act. Being mixed supply, value of the entire combination of services offered is taxable at the applicable rate.

This Ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act.

28

Prabhat Gudakhu Factory

06/0DISHA-AAR/2018-19 dt 05.02.19

‘Gudakhu' manufactured by the Applicant, be classified under GST Tariff Heading '2403 99 90'. 

 

29

Indian Institute of Science Education and Research

07/0DISHA-AAR/2018-19 dt 13.02.19

1. Notification No.51/1996-Customs, dated 23.7.1996 read with Notification No.43/2017-Customs dt 30.6.17 and Minutes of the 14th GST Council Decision Dt 18/19 May 2017 is applicable to the applicant for import of specified equipment as listed under column (3) of aforesaid notifications and said notifications are not applicable to the OEM Suppliers of imported equipment.

2. The scope of issuing ruling U/s 98 of OGST/CGST Act is limited to the extent of prescribed in sub-section (2) of Section 97 of the OGST / CGST Act………

3. Concessional Rate of Tax GST/CGST at 5% vide notification No.45 CGST (Rate) dt 14.11.2017and Notification 47-IGST(Rate) dt 14.11.2017is applicable to goods mentioned in para 6.3.0.as above whether imported or indigenous.

 

Appeal Orders against Advance Ruling given under GST Act in other States

1

Taraltec Solutions Pvt. Ltd. (Maharastra)

MAH/AAAR/SS-RJ/16/2018-19 Dt. 04.02.2019

Classification under the sub-heading 8413 91 as “Hand Pumps and parts thereof” as contended by the Appellent. We hold that the same is classifiable, in line with the contention made by the Jurisdictional Officer, under the heading 8421 21 90 having description as ‘filtering or purifying machinery and apparatus for liquids’ – we do not see any reason to interfere with the Ruling given by AAR, Maharastra.

2

Jotun India Pvt. Ltd. (Maharastra)

MAH/AAAR/SS-RJ/17/2018-19 Dt. 05.02.2019

The Appellate Authority for Advance Ruling upheld the ruling given by the Advance Ruling Authority by observing that marine paints manufacture by the appellant will not be covered under Sl. No. 252 of Schedule I of the Notification No. 1/2017-C.T.(Rate) dated 28.06.2017as the same cannot be considered as part of the ship as contended by them.

 

Additional Commissioner’s Orders

 

 

M.G Metallic Springs (P) Ltd

CCT’ Ref.No. LII(2)/30/16 dt15-03-19

CTD ORDER NO. ACO 673

Before parting with this issue, I have also examined the decisions relied upon by the dealer in the case of Ambika Steels Limited Vs State of AP and Another 24 VST 357 wherein the Hon’ble Supreme Court held that where the States which have received the goods by way of inter-State transfers from the other States declined to give the declarations in Form ‘F’ the assessing authority is to complete re-assessment proceedings on its own merits, after examining the transactions between the parties. Moreover, as seen from the judgment, it is not clear as to which year these transactions are related (SC judgment applies to all the transaction either pending or to be revised or reassessed)

 

AJC (ADC Appeal Orders) on APGST

 

Siva Constructions

Order No. 3979 dt 26.2.19

IA’s orders, though it is not intentional, but arised due to misconceived instructions through e-waybill implementation orders. As such, any orders basing on such directions; cannot be upheld as legitimate. Hence, the tax levied basing on such finding is annulled in total & the appellant contentions are found sustainable with reference to legality for the non compulsory e-waybill generation relating to interstate movement of goods, without commenting on the genuinity of e-waybill implementation orders

 

A S Jute Products Private Limited

Order No. 4020 dt 8.3.19

the basic & important aberration observed in the IA’s orders, though it is not intentional, but arised due to misconceived instructions through e-waybill implementation orders. As such, any orders basing on such directions, cannot be upheld as legitimate.

On a whole, since the levy & collection of tax has annulled treating to be against the provisions of Act, this authority obviously inclined to annul the penalty portion as well. Hence, the penalty levied basing on such finding is annulled

 

 

AJC (ADC Appeal Orders) on APVAT

 

Gayathri Enterprises

. KKD/27/2018-19 dt 2.3.19 (ADC 4005)

All these facts, unequivocally culminating to a deduction that the appellant transactions are not any kind of sale of goods and apparently falls under works contract, which is to be taxable @ 5% under Section 4(7) (d), since the appellant has opted for composition. Hence, the assessment on the levy of tax is set aside.

 

Wipro Enterprises Pvt. Ltd

VJA-II/60/2018-19 dt 25.3.19 (ADC 4053)

it is identified that ITC shall nevertheless be eligible if otherwise found to be in order & supported by valid purchase invoices and being declared in account books, while finalizing the turnovers/ tax liability even if not claimed in returns/revised returns. It is also pertinent here to observe that since the consequent sales of such purchase have been suffered tax, as these purchase were duly accounted for in the books of accounts, it is not justifiable and also not legitimate to deny the ITC on such purchases if substantiated by other essential evidence, such as original purchase invoices, and purchase account ledger.

 

DC Orders (Presently Joint Commissioner of State Taxes)

1

Sri Anjaneya Traders, Moillacheruvu Village, (DC2275)

Rc.No. A1/28368669137/2018 (2010-11 CST) Dt.21.2.19

turnover of Rs. 31,71,589-00 was supported by Form-F bearing No. 235639 covering transactions effected more than one calendar month which is contrary to rule 12(5) of CST (R&T) Rules.(against the spirit of CCT’s Ref. No.IST/D1/ OUT/ 31/2012 dt: 10 -05-12.)

2

Sudarshan Fertilizers, Gudiwada 

R.P.No /26/2018-2019 Dt.22.2.19 (DC2278)

the dealers at any point of time either to the Assessing authority or before the undersigned has failed to produce the documentary evidence to prove that the discounts allowed by the sellers have not altered the Input tax credit – (against spirit of Advance Ruling in the case of Dhanuka Pesticides Ltd in CCT’s Ref.No: PMT/P&L/A.R.Com /461 /2005Dt 28-03-06 – Credit note for discount should not disturb VAT – Presumption against advance ruling is bad in law)

3

Viva Granites, Chimakurthy

Rv.No.78/2018-19/A6, TIN: 37290145717(4/10 to 3/15) (VAT) dt 15-03-19. JC Order No:2309

dealer has requested to exclude 2010-11 & 2011-12 from the revision proposal on the ground that assessment orders for the years 2010-11 &2011-12 are barred by limitation of time under Section 32(3) of APVAT Act 2005. M/s. Viva Granites are hereby informed that the total turnovers assessed by the assessing authority are not enhanced, only incorrect calculation of input tax restriction is proposed to be rectified. Hence dealers’ request is hereby rejected (Revision powers are not to be exercised after limitation – DC orders are bad in law)

 

 

Commissioner’s Circular for VAT Period Transactions

1

Visiting Dealers Premises

CCTs Ref No. CCW/CS(2)/ 309/2017 dt 13.12.2017

As under GST regime it is not desirable to inspect buslness premises of the dealers for verification of pre-GST transactions, the procedure of generation of ADM-IB through VAT[S by authorizing officer and generation of form 304 by the authorized officer for inspection of the premises is dispensed with. Henceforth, authorization shall be Issued only for finalization of assessment by generating form ADM-IC through VATIS.


 

Professional Updates- March 2019

AP VAT / GST Update Ambati Chinna Gangaiah agcpower@icai.org 

9391142969

Supreme Court

1

TATA Motors Ltd Vs DC of Commercial Taxes

AC 1822/06 dt 5.2.19 with other appeals

21. We have some reservations in respect of the observations and legal propositions laid down in the Mohd. Ekram Khan & Sons27 case and consider it appropriate that the matter be considered by a larger Bench.

2

Western Coalfields Vs Commissioner of Central Excise

Appeal Civil 807/2006 and batch dt 20.2.19

14. in the instant case, indisputedly the application was filed by the appellant as a buyer of the goods (conveyor belts) from M/s. Fenner (India) Ltd, who paid the duty under protest must after a period of limitation (six months) as prescribed under the mandate of law disentitles the claim of refund to the appellant as prayed for in vies of the judgment of this Court in Commissioner of Central Excise, Mumbai Vs Allied Photographics India Ltd case (supra) holding that the purchaser of goods was not entitled to claim refund of duty made under protest by the manufacturer without complying the mandate of Section 11B of the Act, 1944.

High Court

1

State of Gujarat Vs Meghmani Organics Ltd

Tax Appeal 53/18 dt 2.2.18 (Gujarat HC) 60 GSTR 407

It is settled legal position that in a taxing statute, if something cannot be computed, the legislature never intended to tax such item. In the present case, since it would not be possible to compute the input tax credit component of capital goods in terms of Entry No. 2 of the notification, it can be safely presumed that there was no intention on the part of the State Government of including Capital goods within ambit of “input including raw materials.”

2

Indus Towers Limited Vs State of Gujarat

Special Civil Application 3358/16 dt 6-8-18 (Gujarat HC) 60 GSTR 220

 Petitioner Company does not appear to have the effective control over the manner, time and nature of use of the specified access to passive infrastructure allotted to a particular operator. Therefore, the transaction in question between the petitioner Company and the respective MSA as amended from time to time cannot be said to be in the nature of “service contract” as contended on behalf of the petitioner. The same can be considered as “right to use goods” as contemplated under the provisions of section 2(23)(d) of GVAT Act and therefore, they can be said to be “deemed sale” liable to be taxed under the provisions of the GVAT Act.

3

Ricoh India Limited Vs State of Maharashtra

VAT Appeal 16/18 dt 20.12.18 (Bombay HC)

Once the controversy is to be decided on the touchstone of the MVAT Act and the Schedule Entry thereto and the notification referred therein, then, function and usage of the multi-functional printers can hardly be of any assistance………. we are of the clear view that the appellant's products have been rightly classified as attracting the rate of duty at 12.5%.

4

Jeyyam Global Foods (P) Ltd. Vs UOI

WP(MD)No.937 of 2019 and WMP(MD)Nos.764 & 765 of 2019 (Madras HC0

11.The Commissioner of Commercial Taxes, Chennai is directed to issue a circular to all the inspecting squad officers in Tamil Nadu not to detain goods or vehicles where there is a bonafide dispute as regards the exigibility of tax or rate of tax. The circular shall embody the essence of the decision reported in 2018 (1) TMI 1503 (N.V.K.Mohammed Sulthan Rawther and Sons and Willson Vs. Union of India). Such a circular shall be issued within a period of eight weeks from the date of receipt of a copy of this order.

5

Stove Kraft Pvt Ltd Vs Asst State Tax Officer

WP(C).No. 3957 of 2019 dt 11.2.19 (Kerala HC)

 e-way bill generated, petitioner has shown three invoices. Noting that separate e-way bill will have to be generated to each of the invoices, goods have been detained. It is to be noted that, it is not a case where e-way bill does not mention all the invoices. There may be practical difficulty for the Department in tracking the invoices, when multiple number of invoices mentioned in the e-way bill generated. Anyhow, I am of the view that goods and vehicle shall be released to the petitioner on executing a bond. 

National Anti-Profiteering Authority

1

Jubilant Foods works Ltd

Case No. 04/19 dt 31-1-19

it is clear that the Respondent has resorted to profiteering by charging more price than what he could have charged by issuing wrong tax invoices. He has further acted in conscious disregard of the obligation which was cast upon him by the law, by issuing incorrect invoices in which the base prices were deliberately enhanced more than what he was entitled to increase due to denial of ITC and thus he had denied the benefit of reduction in the rate of tax granted vide Notification dated 14.11.2017 to his customers. Accordingly he has committed an offence under Section 122 (1) (i) of the CGST Act, 2017. Therefore, a show cause notice be issued to the Respondent to explain why penalty under the provisions of the above Section should not be imposed on him.

CESTAT

1

CST Vs Reliance Communication

ST 85977/15 dt 11.5.18 (Mumbai)

 no service has been provided by the respondents in the present case under the category of “Online Information and Data Retrieval” services under the transaction under consideration we do not find any merit in the appeal filed by the revenue.

2

Vaibhav Global Ltd Vs CGST & CE Jaipur

ST 52143 & batch / 18 dt 4.12.18

it is admitted fact that the appellant Sitapura, Jaipur was having centralized service tax registration for two units namely M/s Vaibhav Global Ltd.(100% EOU) Sitapura, Jaipur and the other DTA unit situated at M/s Vaibhav Global Ltd. Sitapura, Jaipur. IN view of the said admission for the clearance of excisable goods for domestic area the appellant were well registered.

10. Finally coming to the allegation of non distribution of the credit. For the same reason as discussed above that the goods of the appellant are excluded from the scope of “exempted goods” Rule 7(b) of CCR, 2004 as has been relied upon by the Commissioner(Appeals) to reject the refund is not applicable. The Order rejecting 3 of the refund claims is therefore set aside.

GOs issued U/APVAT Act

1

G.O.Ms No. 77

31.1.19

Prescription of certain procedure for obtaining GSTIN by certain tax payers – Amendment to Original Notification

2

G.O.Ms No. 78

31.1.19

Special Procedure for filing outward supplies in GSTR-1 for suppliers whose aggregate turnover is up to 1.50 crore rupees in the preceding financial year or the current financial year – Amendment Notification – Orders

3

G.O.Ms No. 79

31.1.19

Date on which TDS provision of Section 51 will come into force – Amendment to Original Notification

4

G.O.Ms No. 80

31.1.19

Amendment of Rules

5

G.O.Ms No. 81

31.1.19

Waiver of a portion of the late fee payable under section 47 of the APGST Act, 2017 for failure to file the return in FORM GSTR-1 within the due date

6

G.O.Ms No. 82

31.1.19

Waiver of late fee on late filing of GSTR 3B from July, 2017 onwards

7

G.O.Ms No. 83

31.1.19

Waiver of a portion of the late fee payable under section 47 of the Andhra Pradesh Goods and Services Tax Act, 2017 for failure to file the return in FORM GSTR-4 within the due date Notification-

8

G.O.Ms No. 177

19.2.19

Exempting intra-state supply of gold by Nominated Agency under the scheme for "Export against Supply by Nominated Agency"– Corrigendum to original Notification

9

G.O.Ms No. 178

19.2.19

Appointment of date for coming into force of the APGST (Amendment) Act, 2018Appointment of date for coming into force of the APGST (Amendment) Act, 2018

10

G.O.Ms No. 179

19.2.19

Amendment of Rules

11

G.O.Ms No. 180

19.2.19

Registered persons eligible for composition levy under section 10 of the Act- Amendment Notification

12

G.O.Ms No. 181

19.2.19

Amendment to G.O.Ms No.566 Revenue (CT-II) Dt. 24.11.2017 – Notification Orders

13

G.O.Ms No. 182

19.2.19

SGST exemption from reverse charge up to Rs.5000 per day under section 11 (1) – Rescinding Notification

Advance Ruling

1

Posco India Pune Processing Cenre Pvt ltd

GST-ARA-36/2018-19 B-110 Mumbai dt 7.9.18 (Maharastra)

Whether Input Tax Credit is admissible in respect of GST paid for hotel stay in the case of rent free hotel accommodation provided to General Manager and Managing Director of the Company?

Answered in Negative

2

Shyam Singh Champawat M/s Lakshmi Machine Store

RAJ/ARA-36/2018 33 Dt 31.1.19 (Rajasthan)

The questions sought by the applicant are related to activity undertaken in past-period thus not eligible for advance ruling as per Section 95(a) of CGST/RGST Act, 2017 and hence no ruling is given

Advance Ruling given under GST Act in Odisha

1

IL & FS Education and Technology Services Ltd.

01/Odisha-AAR/18-19 dated 20.6.2018

Applicability of entry No.72 of Notification No.12/2017 dated 28.06.2017 read with entry No.72 of Notification SRO No.306/2017-Finance department to the services provided by the applicant under the ICT@School project – Ruling

Recipient of the service OKCL is a body corporate which cannot be regarded as Government. The supply undertaken by the applicant is in the nature of composite supply. It includes supply of goods and services which are not naturally bundled. Each of the components of the composite supply are distinctly identifiable both in terms of quantify and value. The service provided or to be provided is not exclusively in the nature of training programme. Though the source of funding for service is State Government and Central Government, yet as per contract, the payment vest on OKCL

2

NALCO

02/Odisha-AAR/18-19 dated 28.9.2018

Entitlement to take credit of tax paid on various goods and services used for maintenance of applicant’s township, guest house, hospital, horticulture in its ordinary course of business.

Ruling - the present ruling is issued by examining the nature and purpose of each of the services listed in Annexure-A with reference to the relent provisions in the OGSTICGST Act. The applicant may claim input tax credit in respect of the input services to the extnt allowed abovethe present ruling is issued by examining the nature and purpose of each of the services listed in Annexure-A with reference to the relent provisions in the OGSTICGST Act. The applicant may claim input tax credit in respect of the input services to the extent allowed above

3

Telecommunication Consultants India Limited

03/Odisha-AAR/18-19 dated 9.10.2018

Same as in Item No.1

4

Superwealth Financial Enterprises (P) Ltd

04/Odisha-AAR/18-19 dated 31.10.2018

Applicability of Entry No.03 of Notification No.12/2017 dated 28.06.17 - The services provided by the applicant by way of providing energy efficient street lighting services including OM of the street lighting infrastructure during the contracted period to Bhubaneswar Municipal Corporation (BMC) do not constitute supply of 'pure services' as it involves significant use of goods/materials with stipulation to transfer the total business assets to BMC at the end of the contract period. The benefit of exemption from tax in terms of S1.3 of the notification NO.12/2017-Central Tax (Rate), dated 28.06.2017 is not available to the applicant.

5

Utkal Polyweave Industries Pvt Limited

05/Odisha-AAR/18-19 dated 31.10.2018

Classification of Polypropylene Leno Bags – Ruling - "Polypropylene Leno Bags (PP leno Bags)", be classified under GST Tariff Heading '3923 29 90'.

Appeal Orders against Advance Ruling given under GST Act in other States

1

Loyalty Solutions and Research Private Limited, Gurugram

Haryana

HAAAR/2018-19/01 dated 23.10.18

The consideration for the unredeemed payback points has already flowed from the Partners.After validity period the same has become appellant's revenue by virtue of the contract for servicing of the loyalty scheme including the points ibid, executed between the Partnersand the appellants. Even if it is admitted that there is a provisioning of service by the appellant to the end-customers, there cannot be any such service or actionable claim against the payback points not redeemed by them against anyone.

2

Esprit India Private Limited, Gurugram Haryana

HAAAR/2018-19/02 dated 22.11.18

The case laws cited by the appellant are distinguishable as the facts and circumstances of the present case are different. The appellant has himself admitted that he has been providing services to the Esprit Germany in terms of the contract between Esprit Germany and Esprit Hong Kong and for that purpose an agreement !! made between Esprit Hong Kong and Esprit India (appellant). The appellant is providing the services of market research and assisting in trade mark protection, identification of supplies and inspection and quality control of the goods/services. Therefore, we find that the AAR has rightly identified the SAC description with rate of tax while answering Question No. L raised by the appellant. we have carefully perused the provisions of Section 97(2) of the CGST/HGST Act which deal with the subject on which Advance Ruling could be given. After perusing the provisions of Section 97(2) and going through the findings of AAR, we are of the view that euestion 2 and 3, raised by the applicant, have rightly been declined by the AAR.

3

Columbia Asia Hospitals Private Limited Karnataka

KAR/AAAR/Appeal-05/2018 dated 12-12-2018

The appallate authority for advance ruling upheld the rulings passed under section 98(4) of the GST Act 2017 vide NO.KAR ADRG 15/2018 dated 27/07/2018 i.e. wherein the activities performed by the Employess at IMO providing the services in the course of or in realtion to employment such as accounting,admisinstrative and IT system management to their disticnt units located at other state is treated as taxable supply as per entry 2 of schedule I appended to Act,read with section 7 of the CGST Act 2017.

AJC (ADC Appeal Orders) on APVAT

BRK Spirits

VJA-II/03 /2018-19 (ADC 3895) dt 31.1.19

it is comprehendible that penalty is leviable only when any under declaration of net tax detected and confirmed. But, in the present case, though the A.O identified over declaration of input tax and disallowed such ITC, however it has not resulted in any demand of net tax liability. That means, in practical terms there is no under declaration of tax to be payable by the appellant. Being so, act does not envisaged any penalty in situation like these and the invoked Section 53 has not provisioned for levy of penalty, if there is no net tax liability, arised due to excess declaration of ITC.



Professional Updates- February 2019

 

AP VAT / GST Update Ambati Chinna Gangaiah agcpower@icai.org 

9391142969

Supreme Court

1

Addl Commissioner of Commercial Taxes Vs Lohiya Agencies

AC 186-189/19 dt 8.1.19

Notification No.S.O.36.No.F.12 (59)/FD/Tax/2014-14 dt 14th July, 2014, the RVAT was amended to include, in Schedule V, a separate Entry under item No.19(viii) ‘gypsum board and other false ceiling material. Thus, the legislature by a conscious decision in 2014 sought to create a separate Entry for gypsum board, which was not the case in respect of the assessment years in question. This, in our view belies the endeavor to include gypsum board in the residuary Entry, before such specific inclusion as then there would have been no need for such an Entry. The obvious attempt is to exclude it from ‘gypsum in all its forms in Schedule IV of RVAT and create a separate Entry in Schedule V, whereafter it would naturally be governed by the tax rate applicable to the Entry in question.

High Court

1

Sri Lakshmi Construction Vs. ADC PG Division

WP 30903/16 dt 29.8.18 (Hyderabad HC)

Retrospective amendment raising compounded fee from four percent to Five Percent – no challenge in writ petition to retrospective amendment – dealer cannot claim to be governed by lower rate for entire duration of contract – tax leviable on amount received or receivable – assessment remanded to assessing authority

2

Filco Trade Center Vs Union of India

SCA 18433/17 dt 5.9.18 (Gujarat HC)

The benefit of credit of eligible duties on the purchase made by the first stage dealer as per the ten existing CENVAT credit rules was a vested right. The clause (iv) of sub-section (3) of section 140 is unconstitutional and stuck down.

3

Teesta Distributors Vs UOI

 WP 18424/17 dt 10.10.18 (Calcutta HC)

Lottery ticket can be held to be goods if at all only because it evidences the transfer of a right. – actionable claims – which do not attract the CGST Act, 2017

4

Harisiddh Shipping Agency Vs UOI

WP 10198/18 dt 22.11.18 (Bombay HC)

Firstly, the action of the department in placing the name of the petitioner in the ‘Alert’ was on account of unpaid of unpaid late fine charges which are the subject matter of the show cause notices. Secondly, the consequences on account of the name of agency being placed in the ‘Alert’ list would be that all future clearances of such agency would not be made unless the amount demanded by the department is paid up. In other words, in present case, unless and until the petitioner pays up the entire amount of Rs.89 lacs, future clearances of the Bills of Entry filed by the petitioner would not be permitted. In our opinion, this would be wholly impressible.

5

Commissioner of VAT Vs OTIS Elevator Company (India) Ltd

ST.Appl 1/18 & CM Appl. 48717-20/18 dt. 26.11.18 (Delhi HC)

The placement of an order by the agent for procurement of the lifts in this case was merely an offer. It is only upon its acceptance and further steps taken by the supplier that an offer crystallizes into a binding promise or contract. That took place in Mumbai. It is now too far well settled that the incidence of Central Sales Tax or even sale of goods, occurs where the goods are appropriated to the contract. In this case, the place where the appropriation took place, is undoubtedly Mumbai.

6

Vasu Clothing Private Limited Vs Union of India 

WP 17999/18 dt 17.12.2018 (MP HC – Indore Bench)

1) Indian manufacture / producer of goods is not entitled for exemption under Central Goods and Services Tax Act, 2017 from payment of tax (GST). 2) The Exemption Notifications dated 23/05/2013, issued in respect of payment of exemption of taxes during Pre GST regime are no longer in existence on account of enactment of Goods and Services Tax Act, 2017. 3) The Courts does not have the power to legislate, they can only do interpretation of a statute.

National Anti-Profiteering Authority

1

Shri Pawan Sharma V Sharma Trading Co

Case No. 06/18 dt 3-7-18

benefit of reduction in the rate of tax by commensurate reduction in the price of the product – acted conscious disregard of the obligation cast on him by issuing incorrect invoices deliberately enhancing base price – denied benefit of reduction in the rate of tax to his customers.

2

Sukhbir Rohilla Vs Pyramid Indratech

Case No.07/2018 dt 18-9-18

Denied benefit of input tax credit to buyers of flats in contravention of S 171(1) of CGST and realized more price and he is liable for imposition of penaly.

3

Kerala State Screening Committee on Anti Profiteering & Director General Anti-Profiteering

Case No.1/19 dt 2.1.19

First of all it is observed that the rate of tax was 15.63% in the pre- be seen from the tabulation shown in Table-B above. Secondly from GST era which was increased to 290/0 in the post-GST era, as could the invoices referred above, it is evident that before discount base prices of all the products had remained the same. These facts have also not been disputed by the representative of the Applicant NO.1. Hence the provisions of Section 171 of the CGST Act 2017 are not attracted.

4

Shri Surya Prakash Loonker & Director General Anti-Profiteering Vs Excel Rasayan Pvt. Ltd

Case No.2/19 dt 16.1.19

clear from the facts of the present case that the Respondent was fully aware of the Notification No.41/2017-Central Tax (Rate) dated 14.11.2017 whereby the rate of GST was reduced from 28% to 18% and he was also fully aware of Section 171 of the CGST Act 2017, whereby he was bound to pass on the benefit of reduction in the rate of tax by commensurate reduction in the prices of the products in question, therefore he is liable for penalty. The Respondent has deliberately defied the law on the pretext that he had not increased the prices of his products when the rate of tax was increased to 28% and increased the base prices to maintain the same old selling price prior to reduction of rate of tax from 28% to 18%, by issuing wrong invoices to his recipients. Accordingly, he has committed an offence under section 122 (1) (i) of the above Act and hence, he is liable for imposition of penalty

APVAT Appellate Tribunal

1

Sri Rama Raw and Par Boiled Rice Mill Vrs State of AP

TA 116/17 dt 13.12.18

benefit available under the law cannot be denied on technical ground. Even on belated production of statutory forms, if sufficient cause is shown for non-production of such forms within time, the authority can take them into consideration and extend the benefit of reduction of tax.

CESTAT

1

Vasantham Outdoor Advertising Pvt. Ltd. Vrs CCE Madurai

ST/21/2011 (Final Order No. 42261/ 18) dt 13.11.18 (Chennai Bench)

category of “Advertising Agency Service”. Appellants were engaged in renting of hoardings. Pursuant to audit, appeared to the department that appellants have received some amounts towards renting of hoardings….hold that activities of the appellant cannot be brought within the fold of “Advertising Agency Services” for the purpose of Section 65 (3) ibid. This being so, the impugned order to the contrary cannot be sustained and is therefore set aside. Appeal is allowed with consequential benefits, if any, as per law.

GOs issued U/APVAT Act

1

G.O.Ms No. 20

18.1.19

Amendment to G.O.Ms.No.497, Revenue (CT-II) Dept. Dt.28-09-2018

2

G.O.Ms No. 21

18.1.19

Section 9 (1) of the Act-Notifying the State Tax Rates for goods –Amendment

3

G.O.Ms No. 22

18.1.19

Exemption of goods notified under Section 11(1) of the Act – Amendment

4

G.O.Ms No. 23

18.1.19

exempting intra-state supply of gold by Nominated Agency under the scheme for "Export Against Supply by Nominated Agency"

5

G.O.Ms No. 24

18.1.19

Section 9 (1) of the Act-Notifying the State Tax Rates for Services –Amendment

6

G.O.Ms No. 25

18.1.19

exemptions on supply of services under SGST Act [Section 11(1)]– Amendment

7

G.O.Ms No. 26

18.1.19

Section 9(3) of the Act-Notifying the services which attract tax on reverse charge basis

8

G.O.Ms No. 27

18.1.19

Section 9 (1) of the Act-Notifying the State Tax Rates for Services –Amendment

Advance Ruling given under GST Act

1

Nutan Warehousing Company Limited Maharastra

Maha ARA 30/ 2017-18 B-38 dt 23.5.18

The company is in the activity of providing services in the nature of warehousing, wherein they allow to store the material or goods of his client on specific compensation allowed under Bombay Warehousing Act, for which state license is provided to them to carry on the said activities – Whether exemption provided in serial no.54 of Notification No. 2/2017 Central Tax (Rate) is applicable to the activity carried by the Company? – Answered in the negative.

2

Gopal Gireesh, Veena Chemicals,

CT -4863-2018 C3 dt 29.05.18 Kerala

implants for joint replacements falling under HSN Code 90213100 are covered under Serial No. E(9)of List 3 of Entry 257 of Schedule I of Notification No.0112017-Central Tax (Rate) dated 28.06.2017 attracting GST at the rate of 5%.

3

Bajaj Finance Limited

GST – ARA – 21/2018-19-B-84 Mumbai dated 6.8.18

Recovery of bounce charges is made in view of toleration of the act of the client by applicant and therefore construes as ‘supply’ as per Sr. No. 5(e) of Sch. II of the CGST Act and therefore taxable under the GST Act. .

4

The Cochin Plantations Ltd

Ker/11/2018 dt 20.10.2018

The quit rent Ilease rent paid to Kerala Government on the land used for agricultural purpose ie, Coffee Plantation be classified under HSN 9986 and eligible for exemption under GST.

5

KIMS Health Care Management Limited Kerala

Ker/17/2018 dt 20.10.2018

The supply of medicines, consumables and implants used in the course of providing health care services to in-patients for diagnosis or treatment are naturally bundled and are provided in conjunction with each other, would be considered as "Composite Supply" and eligible for exemption under the category 'health care services’

6

Skipper Ltd West Bengal

22/WBAAR/2018-19 dated 26/11/2018

consideration paid for transportation and in-transit insurance. GST is to be paid on the entire value of the works contract, including the supply of materials, transportation, in- transit insurance, erection, commissioning etc. The exemption under serial no. 18 of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 is, therefore, not applicable in the present context.

7

Nforce Infrastructure India Pvt Limited

KAR ADRG 30/2018 dt 28th November, 2018 (Karnataka)

The applicant is liable to pay GST on the value of building constructed and handed over to the land owner in terms of the Joint Development agreement. The value on which the applicant is liable to pay GST is to be determined in terms of para 2 of Notification No.11/2017 – Central Tax (Rate) dated 28.06.2017. The applicant is liable to pay service tax/GST proportionate to the services provided before / after 30.06.2017 respectively.

Appeal Orders against Advance Ruling given under GST Act in other States

1

OPTA Cabs Private Limited Karnataka

KAR/AAAR/Appeal-04/2018 dated 04-12-2018

the services of transportation of passengers supplied through the Appellant's electronic platform and digital network would be liable to tax at the hands of the Appellant….. uphold the order NO.KAR ADRG 14/2018 dated 27/07/2018passed by the Advance Ruling Authority and appeal filed by the appellant MIs.OPTA Cabs Private Limited, stands dismissed


2

Shrimad Rajchandra Adhyatmik Satsang Sadhana Kendra (Maharastra)

MAH/AAAR/SS-RJ/14/2018-19 dated 24.12.2018

The Appellate Authority for Advance Ruling upheld the ruling given by the Advance Ruling Authority by observing that the activities carried out by them would fall under the definition of business as defined under the Section 2(17) of the CGST Act, 201, and accordingly, they are liable for registration under the provisions of the CGST Act, 2017 and the MGST Act, 2017. The Appellate Authority further observed that the sale of spiritual products which are incidental and ancillary to main charitable object of the appellant can be said to be business as defined under Section 2(17) of the CGST Act, 2017.

AJC (ADC Appeal Orders) on GST

1

Coromandel International Limited.

AJC Orders No. 3829 dt 02.01.19

basic & important aberration observed in the IA’s orders, though it is not intentional, but arised due to misconceived instructions through e-waybill implementation orders. As such, any orders basing on such directions, cannot be upheld as legitimate. Hence, the tax levied basing on such finding is annulled in total & the appellant contentions are found sustainable with reference to legality for the non compulsory e-waybill generation relating to interstate movement of goods, without commenting on the genuinity of e-waybill implementation orders, but purely abiding by the High Court interpretation & contemplations

AJC (ADC Appeal Orders) on APVAT

Siddartha Tiles & Sanitary Pvt. Ltd.,

A.O. – ADC 3835

Appeal No. VJA -I/30/ 2018-19 dt 8.1.19

appellant point of objection on this particular aspect is to be taken in to consideration and to be beholded in their favour and whatever conclusion regarding merits in the levy, is found not necessary on such time barred orders.


Professional Updates- January 2019

 

AP VAT / GST Update Ambati Chinna Gangaiah agcpower@icai.org +919391142969

High Court

1

State of Gujarat Vs Jain Marbo India Pvt Limited

SCA 7463/17 Dt 9.3.18 (Gujarat HC)

58 GSTR 373

The power of imposing penalty would extend even on the choice of the penalty to be imposed , of course, up to a maximum of twice the value of the wrongly claimed tax credit, may emphasize, the statue has neither made it compulsory for the Commissioner to impose penalty once the breach is established nor has made the once the established nor has made quantum of penalty mandatory.

2

Chamadhi Traders Vs CTO

WP (MD) 6546/11 23.4.18 (Madras HC)

58 GSTR 120

It is clear that chips will fall under category of ‘processed vegetable’ and accordingly same is taxable under entry of 107 in part B of First Schedule to the TNVAT Act. Therefore it cannot be taxed under entry of 69 at rate of 14.5%.

3

Assistant State Officer Vs Alfa Aluminium

WA 1038/18 dt 22.6.18 (Kerala HC) 58 GSTR 354

We,therefore, setasidetheinterim orderanddirectreleaseofthegoodsonexecutionofasimple bondforthevalueofgoodsintheprescribedformandfurnishing of security in theformof BankGuaranteeequivalentto theamount ofapplicabletaxandpenalty payableashasbeendemanded

4

Sakeel Vs State Tax Officer

CW 13485 /18 dt 4.7.18 (Rajasthan HC) 58 GSTR 72

Requirement of Section 129 (4) & (5) of the Act has not been followe.d The concerned authority failed to take notice of objections and it cannot said that the order impugned is a speaking order

5

Commissioner GST Vs Jan Constructions P Ltd

Central Excise Appeal 136/2018 dt 20-7-18 (Rajasthan HC) Appealed to SC

It is thus clear that the hostel which was constructed was a girls hostel and hospital which was need of Jaipur was constructed. In view of the matter, it was not commercial building as per language used and the activities neither fall under commercial activities nor industrial activities, it is purely a social activity where the girls hostel was constructed for girls students in city of Surat and hospital in Jaipur

6

R.P.S Ent Udyog Vs State of Bihar

CWJC 15540/16 dt 23.7.18 (Patna HC) 58 GSTR 105

Admittedly, the proceedings were reopened vide show-cause Annexure-6 dated 30.04.2015 and as this was after a period of two years and the same being not permissible in view of the law laid down in the case of Ranjan Bricks Centre (supra), we have no hesitation in quashing the proceedings and the show cause notice and the consequential action

7

Mangalam Alloys Ltd Vs Commissioner of Central Excise

Tax Appeal No.1088-89/18 dt 5.9.18 (Gujarat HC)

The assessee was not able to establish the actual movement of the goods. When the RTO report strongly suggested that the vehicles in which the goods were stated to have been transported were incapable of doing so, the burden would be on the assessee to dislodge these primary findings particularly when the report of the RTO was not challenged……..The findings are based on evidence suggesting no movement of goods.

8

A Syed Ali Fathima Vs Assistant State Tax Officer

WP 36047/18 dt 5.11.18

(Kerala HC)

(Question of Classification issue)

Petitioner's goods have been detained. She is ready to take release of the goods on execution of Bank Guarantee. However, she submits that since dispute is regarding the misclassification, photographs shall be taken before the release of the goods. Therefore, the writ petition is disposed of with the following directions:

(i) Photographs and negatives shall be taken with regard to the nature of the goods.

(ii) Goods shall be released on furnishing Bank Guarantee, applicable to the petitioner.

CESTAT

1

T M Motors Pvt Ltd Vs Commissioner GST & C.E. Alwar

Service Tax Appeal ST/ 53009/2015-CU(DB) dt 22.06.18 (Delhi)

Incentive on account of sales/target incentive on sale of vehicles and incentive on sale of spare parts for promoting and marketing the products of MUL, the contention is that these incentives are in the form of trade discount. The assessee respondent is the authorized dealer of a car manufactured by MUL and are getting certain incentives in respect of sale target set out by the manufacturer. These targets are as per the cicular issed by MUL. Hence these cannot be treated as business auxiliary service.

2

SMP Construction Pvt Ltd Vs Commissioner of Central Excise and Service Tax

ST 118/09 dt 1-8-2018 (Ahmedabad)

In some of the contract they paid the duty on 33% of the gross value after abetment of 67% in terms of Notification No. 1/2006-ST and only in respect of these service Contract they availed the cenvat credit. The case of the department is that since the appellant in respect of some the contracts availed cenvat credit and discharged the service tax on 100% gross value of the service, they cannot opt for Notification No. 1/2006-ST, for remaining contract, accordingly, denying the exemption Notification No. 1/2006-ST demand of service tax was raised. ………..the issue in hand already stand settled, hence the same is not resintegra. Accordingly, the impugned order is set aside and appeal is allowed.

3

Indian Institute of Technology Vs Commissioner of Service Tax

ST 51088/14 dt 6-7-18 (Delhi)

 we are satisfied that the appellant is not liable to service tax under manpower recruitment and supply service as they are not a commercial concern nor they have provided any service to a commercial concern. Further, we find that the issue is squarely covered in the appellant‟s favour by this Tribunal in the case of Motilal Nehru National Institute of Technology vs. CE & ST, Allahabad - 2015 (40) S.T.R. 375 (Tri. - Del.). Accordingly, this issue is decided in favour of the appellant and against the Revenue. As regards the other issue, we are satisfied that the liability of tax arises only if „online information and data access or retrieval service‟ are received by the recipient located in India "for use in business or commerce". We categorically find that the OIDA service received by the appellant is not in relation to any business or commerce and accordingly we hold that the same is not taxable.

GOs issued U/APVAT Act

1

GO Ms No 563

13.11.18

Amendments to Entry 8 & 20 of First Schedule to the Act

2

GO Ms No 568

14.11.18

Amendment to Rules

3

GO Ms No 569

14.11.18

Amendment to Rules

4

GO Ms No. 570

14.11.18

Amendments to Notification exempting casual taxable persons making taxable supplies of handi-craft goods from obtaining Registration issued

5

GO Ms No. 593

20.11.18

Reconstitution of AP Authority for Advance Rulings – D. Ramesh Additional Commissioner – SGST and Sadhu Narashima Reddy Joint Commissioner CGST

6

GO Ms No. 618

7.12.18

Exempting casual taxable persons making taxable supplies of handi-craft goods from obtaining registration

7

GO Ms No. 619

7.12.18

Date on which TDS provision of Section 51 will come into force – 1st October, 2018

8

GO Ms No. 620

7.12.18

Prescribing time for filing GSTR-10 by cancelled dealers – 31st December, 2018

9

GO Ms No. 621

7.12.18

Amendment to Rules - Examination of Goods and Services Tax Practitioners.

10

GO Ms No. 622

7.12.18

Date on which TDS provision of Section 51 will come into force - 1st October, 2018

Advance Ruling given under GST Act

1

Taranjeet Singh Tuteja & Brothers

STC/AAR OS /2018 Raipur (Chasttisgarh)

Comprises of two or more supplies (i.e. transportation, supply of packing material &incentives) and one of which is principal supply i.e. custom milling of paddy, it shall treated as composite supply as per section 2(30)of Chhattisgarh GST Act 2017 and as per the provision of section 8(a) of Chhattisgarh GST Act 2017. Accordingly the tax liability on acomposite supply shall bedecided asasupply of such principal supply under Notification no. 31/2017-CT(R) notification no.11/2017-CT (Rate) dated 28-06-2017 serial No. 26. (c), vide state notification no.F-10-82/2017/CT/V(146) dated 13.10.2017 i.e. 5% (2.5% CGST&2.5% SGST)

2

IndianInstituteof Management

KAR ADRG 25 / 2018 DT 25.10.18 (Karnataka)

1.Inrespect of question(a), “Whetherthelongdurationpostgraduate diploma/ degree granting programmes offered by the Indian Institute of Management,Bengaluruotherthanspecificallymentionedin Sl.No.67of NotificationNo.12/2017–CentralTax(Rate)dated28th June2017as amendedbyNotificationNo.2/2018 dated25thJanuary2018are exemptedfromtheGST outputliabilityoneducationasapartof a curriculumforobtainingaqualificationrecognizedbyanylawforthe time being in forcein the light of enactment of the Indian Institute of ManagementAct, 2017?”,theansweris“No”.

Inrespectofquestion(b),“Whethersupplyofonlineeducationaljournals orperiodicalstotheIndian InstituteofManagement,Bengaluruis exemptedfromreversechargeliabilityofGST underSl.No.66of Notification No.12 /2017–CentralTax(Rate) dated 28thJune 2017 as amendedbyNotificationNo.2/2018dated25th January2018being educationprovided as a part of a curriculum for obtaining aqualification recognized by any law for the time beingin force in the light of enactment oftheIndianInstituteofManagementAct, 2017?”,theansweris“No”.

3

Premier Vigilance & Security PvtLtd

Case No.23/18 20/WBAAR/2018-19dated02/11/2018 (West Bengal)

Tollchargespaidarenottobeexcluded fromthevalueofsupply underRule33. GSTshall, therefore,bepayableattheapplicablerateon theentirevalueofthe supply,includingtoll charges paid.

TheApplicantisnotactingasa‘pureagent’ ofthe Bankwhile payingtoll charges,which arethe costoftheserviceprovidedtotheBankssothathisvehiclescanaccessroads/bridgesto providesecurityservices totherecipient.

4

Prism Hospitality Services P Limtied

TSAAR Order No.12/18 dt 26.09.18 (Telangana)

The activity of supply of food in canteens of office, factory, hospital, college,industrialunitetc.oncontractualbasisexceptingthatsupply is noteventbased or on specific occasions, constitute supply of serviceintermsof amendedNotificationNo.13/2018-CentralTax(Rate) dt.26.7.18andistaxableattherateof2.5%CGST +2.5%SGST andthe supplier is noteligible forthe inputtaxcredit…………… providestransportservicestoatraininginstituteforcartingfoodfrom onebuildingtoanotherforservice/saleandtheapplicant chargesa separatetransportcharges,theapplicantneedstodischargeGST onthe gross amount (cost of Food + cost of Transportation ) at the rate of 18% GST.

Appeal Orders against Advance Ruling given under GST Act in other States

1

MegaFlexPlasticsLtd (West Bengal) (appeal by ACCT)

06IWBAAARI Appeal/2018 dated 08.08.2018

ItemPolypropylene Leno Bags(PPLenoBags)manufactured bytherespondent, be classified under TariffHeading 39232990.

2

GirirajRenewablesPrivateLtd Karnataka

KAR/AAAR/02/2018-19 dt 5.9.18

Ruling dated 21.03.18 passed by Karnataka Authority for Advance Ruling is modified as under:

a) The supply of the PVmodule which is the major component of the Solar Power Plant is notnaturally bundled with the supply oftheremaining components &partsoftheSolar Power Plant and thesupply oftheservices of Erection, Installation andCommissioning oftheSolar Power Plant.

b) The supply of PV module isadistinct transaction fromthe supplies in contract inquestion asitistheowner whose responsibility itistoprocure and supply thePVmodule. This PVmodule istobesupplied asfreeissuematerial over and above the plant being supplied by the contractor. The owner is responsible for transportation ofthe PV module from the point oforigin till plant site-and he bears the other risks and rewards of ownership. The PV module which isprocured bythe Project owner on High Sea Sale basis and imported by availing Customs duty exemptions and later supplied to the Appellant asafreeissueforuseinthesetting upoftheSolar Power Plant.

c) The supply of the remaining portion of the contract inquestion by the Appellant which involves thesupply ofthebalance components and parts of theSolar Power Plant and thesupply ofservices ofErection, Installation and Commissioning oftheSolar Power Plantisviewed asa'composite supply' as thesupply ofgoods andservices arenaturallybundled.

d) The tax liability on thisportion ofthecontract inquestion (other than PVmodule) which is termed as a 'composite supply' willbedeterminedin terms ofSection 8oftheCOST Act,2017 wherein therate applicable tothe dominantnatureofthesupply willprevail.

3

United Breweries Limited (Karnataka)

KAR/AAAR/03/2018-19 dt 23.10.18

Ruling dated 28.06.18 passed by Karnataka Authority for Advance Ruling is modified as under:

a)Theactivity engaged inbytheAppellantbywayofgrantingthecontracting brewing unitstherepresentational righttomanufactureandsupplybeerbearingitsbrandname,in returnforaconsideration, isasupplyofserviceasmandated inSection7oftheCGST Actreadwithclause5(c)oftheScheduleIIofthesaidAct.

b) ThesupplyofservicebytheAppellant istaxabletoGST intermsofSection9oftheCGSTAct.

c)Theservicesupplied bytheAppellant isclassified undertheServiceCode999799as"otherservicesnowhere elseclassified".

d) The amounts received by the Appellant from the contracting units under the Agreement, inthenature ofBrandFeeandreimbursement ofexpenses,istermedasa consideration forthesupply ofserviceandischargeable toGSTattheapplicable rateof18%.

4

R.Vidyasagar Rao Constructions (Telangana)

AAAR/03/2018-19(Order in Appeal AAAR/2/18 dt 4.9.18

The combination of services of excavation of sand including loading with machinery at reach, formation of Ramps and Maintenance of Roads, Transportation charges for the tractors/tippers of sand from reach to stockyard and Loading cost at sand from stockyard to lorries, whether is “Works Contract” or “Composite Supply” and what is the rate of tax on the consideration received……………….In the said services held by lower Authority as ‘composite supply’, the principal supply is ‘Transport of goods by road’ and hence these are classable under Service Code 996511 of the Scheme of Classification of Services vide Annexure to Notification No.II /2017-Central Tax (Rate) dated 26.6.2017 in terms of Section 8 of the Act, the rate of tax on services is 9% CGST as specified under Column (4) against the item No. (v) under Column (3) against Sl. No.9 in the Table of the said Notification plus 9% SGST as per ‘the corresponding State Tax (Rate) Notification aggregating to 18%.

AJC (ADC Appeal Orders) on GST

1

Rajkot Engineering Corporation

AJC Orders No. 3750 dt 30.11.18

it is to be interpreted unambiguously that the exclusive power to prescribe necessary documents to accompany with the interstate movement of goods solely conferred and lies with the Central Government only……… In all, the basic & important aberration observed in the IA’s orders, though it is not intentional, but arised due to misconceived instructions through e-waybill implementation orders. As such, any orders based on such directions, cannot be upheld as legitimate. Hence, the tax levied based on such finding is annulled in total & the appellant contentions are found sustainable with reference to legality for the non compulsory e-waybill generation relating to interstate movement of goods, without commenting on the genuinity of e-waybill implementation orders, but purely abiding by the High Court interpretation & contemplations in the above judgments.

2

Nagarjuna Agrichem

AJC Orders 3755 dt 4.12.18

In all, the basic & important aberration observed in the IA’s orders, though it is not intentional, but arised due to misconceived instructions through e-waybill implementation orders. As such, any orders basing on such directions, cannot be upheld as legitimate. Hence, the tax levied basing on such finding is annulled in total & the appellant contentions are found sustainable with reference to legality for the non compulsory e-waybill generation relating to interstate movement of goods, without commenting on the genuinity of e-waybill implementation orders, but purely abiding by the High Court interpretation & contemplations in the above judgments.


Professional Updates- December 2018

 

AP VAT / GST Update Ambati Chinna Gangaiah agcpower@icai.org +919391142969

High Court

1

Padmavathi Electricals Vs CTO

WP 22537/16 30.6.16 (Madras HC) 57 GSTR 469

impugned orders have been challenged is by contending that Form I declarations produced by the petitioner were refused to be accepted by the respondent……….. stated that as per the Proviso to Section 8(4) of the CST Act and as per Rule 12(7) of the Central Sales Tax (Registration & Turnover) Rules, 1957, declaration forms in Form C, F, E I and E II being filed subsequent to the orders passed could not be considered for revision of assessment under Section 9(2) of the CST Act, 1956 read with Section 84 of the TNVAT Act……..revise the assessment under the CST Act. Therefore, the respondent has power to invoke Section 84 of the TNVAT Act

2

A to Z Buildcon Vs State of Haryana

VATAP 31/18 dt 4.5.18 (P & H HC)

57 GSTR 199

The appellant has not been able to point out any illegality or perversity in the findings recorded by the Tribunal……..Thus no substantial question of law arises and the appeal stands dismissed. Since the main appeal has been dismissed on merits, the application of condonation of delay in filing the appeal is also dismissed

3

Khanusiya Vs State of Gujarat

Special Civil Application 31/18 (Gujarat HC) 57 GSTR 398

Limitation apply to the cases where return has been filed by the assessee and the period of limitation not applicable, where no return is filed by the assessee…….the matter is required to remanded to the appropriate authority to pass fresh order in accordance with law and on merits after giving opportunity to the petitioner on all aspects.

4

Teesta Distributors Vrs UOI

WP 18424/17 dt 10.10.18 (Calcutta HC)

GSTCouncil had approved the rates as presentlyobtaininginrespectoflottery. Itiswithinthedomainof suchCounciltodecidetherateoftax.

5

Prosper Jewel Arcade Vs DCCT

WP 20642/18 dt 25.10.18 (Karnataka HC)

Reassessment order under challenge Annexure C dated 31.3.2018 for period 2012-13 is clearly appealable before higher appellate authority U/s 62 KVAT Act 2003. The present writ petition is dismissed with a liberty to the petitioner to avail the remedy by way of appeal if it chooses and if any such appeal if filed within 4 weeks from today

6

Vodaphone Mobile Services Limited Vs CST

CEAC 12/16 and batch 31.10.18 (Delhi HC)

It is a settled principle of law that entitlement of CENVAT credit is to be determined at the time of receipt of the goods. If the goods that are received qualify as inputs or capital goods, the fact that they are later fixed/fastened to the earth for use would not make them a non-excisable commodity when received

GOs issued U/APVAT Act

1

G.O.Ms.No. 534

24.10.18

APVAT Act - Schedule VI- Change of rate of tax on Petrol and Diesel Oils -1. incolumnNo.(4)rateoftax,againstitemNo.2,Petrol,forthefigures,percentage andwords“31%+Rs.4/- perlitre” the figures,percentageandwords“31%+Rs.2/- per litre” shall besubstituted.

2.incolumnNo.(4) rateoftax,againstitemNo.5, All kindsofDiesel Oilsincluding C-9, for thefigures,percentage andwords“22.25%+ Rs.4/-per litre”,thefigures,percentage andwords“22.25%+ Rs.2/- per litre” shall besubstituted.

Advance Ruling given under GST Act in AP

1

Indian Cotton Solutions.com Private Limited

AAR/AP/06GST 2018 dt 08.06.2018

Whether they can utilize /refund the ITC which is readily available in GST Portal, for the vehicles purchased by them for the purpose of their core business activity?” – Goods intended to be supplied by the applicant to M/s SDSC are not covered by Notification 45/2017 Central Tax (Rate) dated14.11.2017 and accordingly concessional rate is not applicable.

2

Agarwal Industries

AAR/AP/06A GST 2018 dt 08.06.2018

Rate of GST on Energy G Premium oil- Correct HSN Code of “Energy G Premium Oil” HSN 1518 vide S.90 of Schedule I of Notification 1/2017-C.T.(Rate) date 28.06.2017 and hence attracts rate of 5%.

3

Jayalakshmi Tobacco Company

AAR/AP/03 GST 2018 dt 8.06.2018

Ruling given by two member is different and referred to Appellate Authority

4

Amaravathi Metro Rail Corporation

AAR/AP/07 GST 2018 dt 2.07.2018

Applicant is a Government authority and Consultancy services for transportation services are exempted services

5

Fairmacs Ships Services

AAR/AP/10 GST 2018 dt 20.08.2018

The outward supplied made by the applicant to (a) ocean going merchant ships which are in foreign run (b) Indian Navy ships (c) Indian Coast guard ships will be treated as ‘exports’

6

Synthtite Industries

AAR/AP/8 GST 2018 dt 20.08.2018

Process providing job work service to the foreign principal, in the premises of the applicant as per specifications of the recipient of services, is taxable under APGST Act 2017/CGST Act 2017, as per entry no.26 (HSN Code 9988) Proviso [iv] and liable to tax @ 18%, place of supply for the transaction, is location of the service where actually performed i.e., business premises of the application, which is located in the state of Andhra Pradesh. Hence the tax liability under SGST/CGST Act 2017 only applies.

7

Sri Venkateswara Traders

AAR/AP/16 GST 2018 dt 09.10.2018

Supply of Eucalyptus/Subabul Wood de-barked pulp wood in cut sizes supplied to various paper mills for manufacture of pulp falls under the Entry No.198 of Schedule I of Notification No. 01/2017 dated 28.6.17 and attracts CGST @2.5% and SGST @2.5%.

8

Pragati Enterprises

AAR/AP/17 GST 2018 dt 10.10.2018

GST Rate of tax for the tobacco leaves procured attacco auction platforms or directly from farmers which are cured and dried by farmers themselves is 5%(2.5% SGST + 2.5% CGST) as per Sl No.109 of Schedule Notification No.1/2017 (CGST). The applicant threshed and dried on job work basis at GLT plants and then sells such threshed and dried tobacco leaves; is liable at 28% (14% SGST + 14% CGST) as per Sl No.13 of Schedule IV Notification No.1/2017 (CGST) dt 28.06.17

9

AP Technology Services Limited

AAR/AP/11 GST 2018 dt 04.09.2018

e-procurement Transaction Fee collected on behalf of IT E&C department results supply of goods or services – supply as defined in SGST Act and CGST Act. Liability does not arise the amount so collected is for services rendered by State Government i.e. ITE&C Department as per entry no.6 of notification 12/2017-Central tax (Rate) dated 28th June, 2017

10

Enxio Power Cooling Solutions India Private Limited

AAR/AP/13 GST 2018 dt 14.09.2018

Air-Cooled condenser is a part of the waste to Energy Plant, which falls under the entry 234 of Schedule I of Notification 1/17-Cemtra; Tax (Rate) dated 28.06.17 (similar notification for state tax and integrated tax) and is liable at a rate of 5% (2.5% CGST + 2.5% SGST or 5% IGST as the case may be

11

Srivet Hacharies

AAR/AP/12 GST 2018 dt 14.09.2018

“Biotos Mono Calcium Phosphate/Di calcium phosphate animal feed supplement” HSN Code No.23099090 is classifiable under exempted goods, notified vide the Entry No.102 of Notification No.02/17 dated 28.06.17

12

TrailerSprings

AAR/AP/15 GST 2018 dt 09.10.2018

Springs & Leaves for springs of iron and steel falls under entry number 234 of schedule II of notification No. 01/17 – Central tax (Rate) dt 28.6.17 and taxable at 9% CGST and 9% SGST.

Appeal Orders against Advance Ruling given under GST Act in other States

1

Five Star Shippling (Maharastra)

MAH AAAR/SS-RJ/11/2018-19 dt 23.10.2018

The entire gamut of services performed by the Appellant are in fact of the composite supply of the intermediary services classified under the Service accounting Code 999799 which is other miscellaneous services and the accounting services under SAC 998222 of which the intermediary service is the principal supply……agreement in question, as grouping of consultancy service and support service rather we treat the entire gamut of services as a composite supply of intermediary services and Accounting services of which the intermediary services is the principal supply.

2

Merit Hospitality Services (Maharastra)

MAH AAAR/SS-RJ/12/2018-19 dt 01.11.2018

The services of supplying food by the appellant to the employees of the unit located in the Special Economic Zone is not covered under the zero rated supplies in terms of Section 16(1)(b) of the IGST Act, 2017 and the services of the appellant are also not in the nature of restaurant services as claimed by the appellant.

AJC (ADC Appeal Orders) on GST

1

PVS Laboratories Limited

Order No. 3705 dt 8.11.18 of AJC Vijayawada

Inspecting authority duty during check of vehicular traffic check -present issue, as no resolution on classification is thought essential, this authority’s conclusion is restricted to action of the I.A.’s basic findings, regarding whether the attempt for classification interpretation is legitimate or not? -proper officer is at liberty to undertake the classification conciliation either on his own or on receiving a reference from I.A., who levied present disputed tax


Professional Updates- November 2018

 

VAT / GST Update in AP

CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

Supreme Court

1

ALD Automotive Vs CTO

AC 10412-13/18 dt 12.10.18

The statute having not given any indication for extension of time which is a condition for claiming input tax credit, the submission that period could have been extended by the assessing authority is unfounded and cannot be accepted.

Tamil Nadu Issue (applicable to Puducherry Cases also)

2

TVS Motor Company Vs State of Tamil Nadu

AC 10560/18 dt 12.10.18

uphold the judgment of the High Court with one rider, namely, that in those cases where a dealer makes sales exclusively to the other State Government(s), benefit of ITC would be allowed without insisting on the furnishing of Form ‘C’. However, in order to avail this benefit, a certificate from said the State Government to whom the supplies are made would be obtained by the dealer claiming ITC and submitted to the VAT authorities.

High Court

1

Bharat Heavy Electricals Ltd vs State of Maharashtra

ST Reference (L) 10/05 dt 20-12-17 (56 GSTR 287) Bombay HC

In our view the contract in the instant case is predominantly for supply of equipment, erection and installation. FPDIL was required to carry out all preparation work , provide foundation, provide all civil works required, the equipment was merely supplied and installed……….The intention of parties as derived from the diverse contractual provisions set out above leaves us in no manner of doubt that the contract in question was not a works contract but the dominant intention was of sale of equipment.

2

Singh Tyres Vs State Of U.P. And Another 

Writ Tax 552/18 dt 2.4.18 (Allahabad HC) 56 GSTR 38

 goods were transported from one place to another within the State of U.P. and were accompanied by the requisite documents and requisite E-Way Bill has also been produced by the petitioner before the respondent no. 2 before the date fixed for reply. In view of the aforesaid fact, we have no other option but to allow the present writ petition and to quash the seizure order as well as consequential notice issued under Section 129(3) of the Act. 

3

Leela Sai Developers Vs DCTO

WP 1824/18 dt 18.4.18 (Hyderabad)

While the show cause notice indicated that the total tax due may be Rs.37,69,093/-, the impugned order fixed the total tax as Rs.44,02,794/-. Therefore, it is clear that the impugned order has travelled beyond the scope of the show cause notice. Hence, it is liable to be set aside.

4

Leela Sai Ram Steel Enterprises Vs CTO

14669/2018 dt 24.04.2018 (Hyderabad)

It is apparent from the records that the impugned order was passed even without issuing a show cause notice. No order of penalty can be passed without a show cause notice. On this short ground, the writ petition is liable to be allowed

5

C P Rasheed Vs State of Kerala

OTR 104/15 dt 10.8.18 (Kerala HC)

Obviously, the dealer at the first instance had, collected tax and not remitted the same to the Department. The State is deprived of the tax to that extent and hence there is no question of input tax credit. The assessee could definitely file a suit for recovery from the entity from whom they made the purchase.

6

MRF Limited Vs Commissioner of Trade and Taxes

WP (C)3118/18 dt10.8.18 (Delhi HC)

It is clear from the above discussion that pre-deposit sums which the assessee is compelled to pay to seek recourse to an appellate remedy, do not necessarily bear the stamp or character of tax, especially when it succeeds on the particular plea…………The fact that the amounts were due and payable from the date the appeal was allowed is not in dispute……….petitioner is entitled to interest calculable from the date when its appeal was allowed by this Courtpetitioner is entitled to interest calculable from the date when its appeal was allowed by this Court

7

EI Dupoint India Pvt Limited VS Commissioner VAT Delhi

WP(C) 4952/17 dt 13.9.18 (Delhi HC)

No doubt, the petitioner might have been aware but its case is that the incorrect particulars were reflected in the final return files. Keeping these broad similarities in mind, this Court is of the opinion that the petitioner is entitled to relief of the kind that Ingram Micro India Pvt. Ltd. provided to the tax payers in the judgment.

10. For the above reasons, the respondent is directed to issue the concerned F-Forms pertaining to the transactions undertaken by the petitioner in the concerned quarter of Financial Year 2012-13 within four weeks from today.

GOs issued U/GST

1

G.O.Ms..474

19.9.18

Reverse Charge under Section 9(4) – Exemption – Further extension of date - 30th day of September, 2019

2

G.O.Ms.475

19.9.18

Prescription of certain procedure for obtaining GSTIN by certain tax payers

3

G.O.Ms.476

20.9.18

Date on which TCS provision of Section 51 will come into force - 1st day of October, 2018

4

G.O.Ms.477

20.9.18

Date on which TCS provision of Section 52 will come into force - 1st day of October, 2018

5

G.O.Ms.482

24.9.18

Guidelines for deductions and deposits of TDS by the DDO under GST

6

G.O.Ms.484

25.9.18

Corrigendum to Notification issued on services reverse charge

7

G.O.Ms.485

25.9.18

Amendment to Rules –Corrigendum Notification

8

G.O.Ms.486

25.9.18

Amendment of Rules – Corrigendum Notification

9

G.O.Ms.487

25.9.18

Waiver of late fee paid under Section 47 of the said Act – Notification orders

10

G.O.Ms.488

25.9.18

Amendments to certain rules - Notification – Orders

11

G.O.Ms.489

25.9.18

Amendment of Rules - Notification

12

G.O.Ms.490

25.9.18

Amendments to certain rules - Notification – Orders

13

G.O.Ms.496

29.9.18

Special Procedure for filing outward supplies in GSTR-1 for suppliers whose aggregate turnover is up to 1.50 crore rupees in the preceding financial year or the current financial year – Furnishing of Quarterly returns

14

G.O.Ms.497

29.9.18

Special Procedure for filing outward supplies in GSTR-1 for suppliers whose aggregate turnover is up to 1.50 crore rupees in the preceding financial year or the current financial year

15

G.O.Ms.498

29.9.18

Notification of services exempted from tax issued in G.O.Ms.No.588, Revenue Dept, Dated. 12.12.2017- Amendment -

16

G.O.Ms.499

29.9.18

Section 52- Rate at which TCS to be collected - Orders

Advance Ruling given under GST Act in other States

1

Rajarathnam‟s Jewels, (Karnataka)

KAR ADRG 16 / 2018 dt 27.7.18

mere deposit of diamond with safe vaults acknowledged by Electronic Vault Receipts (EVR) does not constitute of supply of diamonds……. conversion of Electronic Vault Receipts representing the diamonds held in the Vaults to e-Units would constitute a supply of diamonds liable to tax……….. derivative contracts in e-Units and settlement thereof would be treated as transactions in securities in case it involves only e-Units without any involvement of physical diamonds and thereby would remain out of the scope of levy under GST

AJC (ADC Orders)

1

Sri Veeranjaneya Stone Crusher

VZM/29/2018-19 dt 22.9.18 (AJC 3611)

it has been noticed that the appellant has not filed electronic appeal through GST Portal in Form GST APL-01, even after availing ample time and opportunity…….. To adhere to the provisions prescribed in the Section 107 and rule 108 of APGST Act & Rules, 2017, it is observed that the appeal petition not qualified to get admitted


Professional Updates- October 2018

 

VAT / GST Update in AP

CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

Supreme Court

1

Builders Association of Navi vs. Union of India

SLP Dairy No25203/2018 dt 20.8.18

SLP filed against judgment of Bombay HC on imposition of VAT / GST on immovable property on the plea ….The High Court has completely failed to appreciate that the provisions of the GST Act necessarily have to be so construed as to avoid such a double levy of both stamp duty as well as GST…….. delay condoned ……directed issue notices to Central Government

High Court

1

Assistant Commissioner Special Circle Vs Indian Oil Corporation

Sales Tax Revision Petition 205/09 dt. 28.9.16 Rajasthan HC Jaipur

55 GSTR 299

9. A bare perusal of the above section clearly postulates and envisages that the same authority gets power to impose or not to impose penalty who has initially registered an assessee.

10. The judgment cited by the learned counsel for respondent in the case of M/s. Big Brothers Construction Company Pvt. Ltd. (supra) is squarely applicable on the facts of the instant case, which has been taken into consideration judgment of apex court in State of U.P. v. Dyer Meakin Breweries Ltd. [1973] 31 S.T.C. 588, and accordingly this court is of the opinion that when a similar identical and self same question has been taken into consideration, the order of Tax Board is just and proper and is not required to be interfered with.

2

Bayer Crop Sciences Vs State of AP

TRevC 55/17 dt 16.11.17 55GSTR233

Therefore, we are of the opinion that the assessing officer has committed a manifest error in treating the price mentioned in the excise invoice as the sale price and imposing differential tax. Unfortunately, both the appellate authorities failed to correct this patent error

3

Shree Raipur Cement Plant vs State Of Chhattisgarh

W.P.(T)No.83/18 dt 11.5.18 (Chhattisgarh HC – Bilaspur)55 GSTR 306

Central Government has not notified high speed diesel to be within the ambit and sweep of the CGST Act, 2017. Thus, the petitioner's registration certificate under the CST Act, 1956 is still valid for the goods defined in Section 2(d) of the CST Act, 1956, including high speed diesel, and the petitioner is entitled for issuance of C-Form for inter-State purchase / sale of high speed diesel against the said C-Form. Accordingly, the respondents shall be liable and are directed to issue C-Form to the petitioner in respect of high speed diesel to be purchased by the petitioner and used in the course of manufacture of cement and for that, it is further directed to rectify and remove the error on their official website and entertain the petitioner's application submitted on-line on the official website seeking issuance of C Form to the petitioner for said goods

4

Axis Mutual Fund Vs State of MH

WP 710 OF 2018 dt 6.8.18 (Bombay HC)

the set-off is permissible only on those purchases effected in that year where the corresponding goods are sold or resold within six months from the date of purchase

5

Garuda Timber Traders Vs ASTO

WP(C).No. 26848 of 2018 dt 9.8.18 (Kerala)

wants the Court to quash the Ext. P9, besides directing the ASO to release the detained goods and the vehicles. Indeed, Garuda wants the Court to declare “the provisions empowering the GST officials” to demand tax and penalty and to detain goods and vehicles,……….provides the bank guarantee for the tax and penalty and bond for the value of goods, under Rule 140 of the Rules, it will have the goods provisionally released. Besides, the petitioner can challenge the Ext.P9 before the appellate authority under Section 107

APVAT Appellate Tribunal

 

Sri Ramakrishna General Merchants Vs State of AP

TA 1/10 dt dt 27.6.18

Both the counsel brought to the notice of the Tribunal, that this Tribunal in TA No.37/2015, dated 11-12-2017 and in TA No.99/2011, dated 31-10-2016 dealt on the same point and held that Foreign buyer agreement is not necessary to claim exemption under Section-5(3) of the CST Act basing on H-form.

GOs issued U/GST

 

G.O.Ms. 441

21-08-2018.

Changes to the State Tax Rates for services

 

G.O.Ms. 442

21-08-2018.

To notify amendments to the exemptions on supply of services under SGST Act [Section 11(1)] –

 

G.O.Ms. 443

21-08-2018.

Notifying the services which attract tax on reverse charge basis

 

G.O.Ms 444

21-08-2018.

Section 7(2) of the Act-Notifying the activities or transactions undertaken by the Government or local authority which shall not treated as supply of goods or services

 

G.O.Ms. 445

21-08-2018.

Notifying the State Tax Rates for services

 

G.O.Ms 446

21-08-2018.

Section 9 (1) of the Act-Notifying the State Tax Rates for goods – Amendments made

 

G.O.Ms 447

21-08-2018.

Exemption of goods notified under Section 11(1) of the Act – Amendments made

 

G.O.Ms 448

21-08-2018.

Section 54(3) of the Act-Notifying the goods on which refund of unutilized Input Tax Credit shall not be allowed– Certain Amendments made

 

G.O.Ms. 449

21-08-2018.

Exempting intra-state supply of handi-craft goods–

 

G.O.MS. 467

10-09-2018.

APVAT Act – Schedule VI – Change of rate of tax on Petrol and Diesel Oils - in the table, against item No.5, All kinds of Diesel Oils including C-9, in column No.(4) rate of tax, for the figures, percentage and words “22.25% + Rs.4/- per litre”, the figures, percentage and words “22.25% + Rs.2/- per litre” shall be substituted

Advance Ruling given under GST Act in AP

1

CR Enterprises

AAR/AP/05(GST)!2018dt 10.5.2018

(a).'Scientific andtechnical instruments,apparatus, equipments(including computers' (b)Accessories. ports. consumables. and liveanimals (experimental purpose). (c)computer soflwore..(d)prototype

The goods intended to be supplied by the applicant to M/s SDSC are not coveredunder Notification 4S/2017-Centrol Tax (Rate), doted 14.11.2017 and accordingly, the concessionalrate isnotapplicable.

Advance Ruling given under GST Act in other States

1

A.W. Faber-Castell (India)

GST-ARA-31 /2017-18/B-39 Mumbai, dt.23.05.2018

Whether the product of the applicant i.e. “Modelling dough’ will be covered under Chapter 34 or Chapter 95 under the Customs Tariff Act, 1975………“Modelling dough’ will be covered under CTH 3407 under the Customs Tariff Act, 1975.

2

Erode Manjal Vanigarkal Matrum Kidangu Urimaiyalargal Sangam

5 /AAR{aOL8 DATED 30.08.2018 (Tamil Nadu)

service by the Commission Agents as per the submissions of the applicant to the agriculturists of turmeric is service under the Heading 9986 and is taxed to'NlL' rate of CGST as per Sl.No. 24 (l (i) (g) of the Notification No. LI/20L7-CT (Rate) dated 28.06.2017 as amended and 'NlL' rate of sGST as per sl.No. 24 (i) (i) (g) of G.o.(Ms) No 72 dated 29.O6.2OL7 No.ll(2)/CTR/532(d-L4)/2OL7 as amended.

3

C.P.R. Mill

8/AAR/2018 DATED 30.08.2018 (Tamil Nadu)

"The product 'Cattle feed in cake form' manufactured by the Applicant is classifiable under Chapter Heading 23099010 and stands exempted as per vide Sl.No. IO2 of Notification No. 2/20t7-Central Tax(Rate) dated 28th June 2OI7 as amended and Sl.No. tO2 of Notification. No.ll(2)/CTR/532(d-5)/2017 dated 29tn June 2Ot7 as amended and in case of interstate supplies vide Sl.No.

4

Goodwill lndustrial Canteen

.9/AAR/2018 DATED 30.08.2018 (Tamil Nadu)

(The services of the applicant of supplying food and beverages on the premises of industriat unit/office, which are on the terms of the contract with M/s Kone Elevators and such other contracts, are liable to tax at the rate of 9% CGST under Sl.No. 7(v) of Notification No. L1/2OL7 -C.T. (Rate) dated 28.06.20L7 and 9% SGST under Sl.No. 7(v) of G.O.(Ms) No 72 dated 29.06.2017 No.ll(2)/cTR/532(d-L4)/20r7 for the period upto 26.07.2018 and from 27.O7.2OL8 onwards at the rate of 25% CGST under Sl.No. 7(i) of the Notification No. IL/2OL7-C.T. (Rate) as amended and at the rate of 2.5% SGST under Sl.No. 7(i) of G.O.(Ms) No 72 dated 29.06.20L7 No.ll(2)/CTR/532(d-74)/2or7 as amended subject to the condition that credit of input tax charged on goods and services used in supplying the services are has not been taken read with Explanation (iv) of said Notifications

JC (DC Revision Orders)

     

Supreme Court of India Judgement, margarine or Whip Toppingis liable@5% in the case of Aluva Sugars Agency Vs. State of Kerala 45 VST 1, the Hon’ble Supreme Court of Indiaheld that “So as to simplify the conclusion, we may say that normally anything which is used for preparation of a food article is edible because ultimately it is being consumed by human beings. Though one may not consume margarine directly or may not use for normal cooking, the fact is that margarine is used for preparing bakery items which are consumed by human beings and, therefore, margarine is also edible. Having around 80% fat, and being in the nature of oil, in our opinion, it should be considered as edible oil.”The Supreme Court categorically held that margarine is nothing but edible oil.

14. In view of the above Judgement and as per the contentions of the dealer,whether the margarine or whip topping is nothing but edible oil which is liable for tax @4/5% under item 66 of Schedule IV of the AP VAT Act.

In view of the disruption caused due to severe floods in Kerala, Mahe (Puducherry) and Kodugu (Karnataka), the

Central Board of Indirect Taxes and Customs

21st August, 2018

Extension of last date for filing GST returns by taxpayers in Kerala, Mahe and Kodagu

In view of the disruption caused due to severe floods in Kerala, Mahe (Puducherry) and Kodagu (Karnataka), the competent authority has extended the due datesfor filing of the following GST returns by taxpayers registered in these areas:

Sl No

Return

Class of taxpayers registered in Kerala, Mahe (Puducherry)and Kodagu (Karnataka)

Extended due date

1

FORM GSTR-3B for the Month of July, 2018

All taxpayers

5 th October, 2018

2

FORM GSTR-3B for the Month of August, 2018

All taxpayers

10th October, 2018

3

FORM GSTR-1 for the quarter July to September, 2018

Taxpayers having turnover upto Rs. 1.5 crore

15th November, 2018

4

FORM GSTR-1 for the Month of July, 2018

Taxpayers having turnover above Rs. 1.5 crores

5 th October, 2018

5

FORM GSTR-1 for the Month of August, 2018

Taxpayers having turnover above Rs. 1.5 crores

10th October, 2018



AP VAT GST Update (September, 2018)

AP VAT / GST Update Ambati Chinna Gangaiah agcpower@icai.org

9391142969


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AP VAT GST Update (August, 2018)

AP VAT / GST Update Ambati Chinna Gangaiah agcpower@icai.org

9391142969


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AP VAT GST Update (July, 2018)

AP VAT / GST Update Ambati Chinna Gangaiah agcpower@icai.org

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AP VAT GST Update (June, 2018)

AP VAT / GST Update Ambati Chinna Gangaiah agcpower@icai.org

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AP VAT GST Update (May, 2018)

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AP VAT GST Update (April, 2018)

AP VAT / GST Update Ambati Chinna Gangaiah agcpower@icai.org

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AP VAT GST Update (March, 2018)

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Professional Updates- February 2018

 

VAT / GST Update in AP

CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

Gist of Judgments of Supreme Court
Sr. No. Name of the Appellant Appeal No and date of decision Gist of Judgments / Orders passed
1 Shyam Narayan Chousksey Vs Union of India WP 855/2016 dt 9.1.18 the playing of the National Anthem in the cinema halls on the screen may not be made mandatory and the word ―shall‖ may be substituted with ―may‖ until a final decision is taken by the Committee and, thereafter, by the Central Government.

Gist of Judgments of High Court
1 S.A. Rawther Spices WP 17482/17 dt 6.6.17 106 VST 95 submitting all documents except bills of lading and assessing authority rejecting assessee’s claim of exemption-Assessee obtaining copies of bills of lading subsequently and filing application for rectification of earlier assessment order –Writ Petition-Assessment order set aside –Direction to assessee to produce copies of bills of lading within specified period and assessing authority to pass fresh assessment order

Gist of Judgments of Other High Courts
1 D.C. Foods Vs Commissioner of Trade Tax STR 941/05 dt 31.8.16 (106 VST 420) Allahabad Circular of Commissioner in 1979 to effect that roasted groundnuts included holding field and dealer availing of exemption-Question referred to Law Department and circular issued in 2004 annulling, 1979 circular-effect 1979 circular operative and binding on Department till issue of 2004 circular -2004 circular not explanatory or declaratory of authoritative pronouncement of Law –Does not have retrospective effect
2 SUVASINI CHARITABLE TRUST W.P.(C) 6093/2017 dt 26.10.17 Delhi W.P.(C) 6093/2017 dt 26.10.17 purchasing dealer who has bona fide entered into a purchase transaction with a registered selling dealer who has issued a tax invoice reflecting the TIN number. In the event that the selling dealer has failed to deposit the tax collected by him from the purchasing dealer, the remedy for the Department would be to proceed against the defaulting selling dealer to recover such tax and not deny the purchasing dealer the ITC.
application of dealer opting for payment on compounded basis neither accepted nor rejected –Dealer cannot assume application allowed-Bound to pay tax on regular basis- Dealer paying tax on regular basis-Demand for differential tax on basis of compounded rate-Not sustainable
3 Teleworld Mobiles Vs Commissioner Trade & Taxes WP (C)5583/16 dt 8.1.18 However, there is no provision in the Act under which the authorities can be burdened with any penalty or costs for the wrongs committed by them in violation of the provisions of the Act. In these circumstances, having held that the respondents have acted contrary to the provisions of the Act and the Rules, we are of the opinion that they must be burdened with penalty in form of costs. This is necessary and required to ensure that such lapses do not happen in future and are not repeated. Such conduct and misconduct cannot be condoned and overlooked.

Gist of Judgments of APVAT Appellate Tribunal
1 Nokia India TA . 150 OF 17dt 30.11.17 (Tribunal Order 2225) Supreme Court of India in the case of M/s Kemka and Company vs. State of Maharashtra expressed its opinion that penalty is not merely a sanction and that it is not merely adjunct to assessment, it is not merely consequential to assessment and it is not merely machinery
2 Aban Constructions Pvt. Limited TA No.24/07 dt 13-12-17 (Tribunal Order 2240) When base turnover is not taxable, the profit thereon is also not taxable. Since the taxable turnover is arrived at by deducting the allowable exemptions from the gross turnover, unless this deduction is permitted, such profit will be taxed.

Gujarat Value Added Tax Tribunal
1 Jyoti CNC Automation Ltd Vs State of Gujarat Second Appeal No.562/15 dt 22-09-15 In our opinion, the appellate authority has erred in rejecting this form. Mr.Mehta, the learned Advocate has today submitted a pursis showing how the tinxsys website is not reliable for authenticity. The appellant has furnished a copy of the disputed C form. It contains details of registrations under local Act and CST Act as well as details about the issuing authority. We are of the view that the appellate authority should have, before rejecting the form, properly investigated the veracity of the form instead of relying only on the data available on tinxsys website

GOs issued – GST
1 GO.MS.No. 622 28-12-2017 e-Waybill – extends the time limit of operation of the notification issued vide G.O.Ms.No.309, Revenue (Commercial Taxes-II) Department, dated 24th July, 2017 till the date on which the amended Rules 138 to 138D of Andhra Pradesh Goods and Services Tax Rules, 2017 come into force through the notification of the Government
2 GO Ms.No. 18 10.1.18 Amendment to Rules
3 G.O.MS.No. 32 24.1.18 Special Procedure for filing outward supplies for suppliers whose aggregate turnover is up to 1.50 crore rupees in the preceding financial year or the current financial year –Furnishing of Quarterly returns - Extension of time -
4 G.O.MS.No. 33 24.1.18 Waiver of a portion of the late fee payable under section 47 of the Andhra Pradesh Goods and Services Tax Act, 2017 for failure to file the return in FORM GSTR-4 – within the due date Notification
5 G.O.MS.No. 34 24.1.18 Notifying the effective date for certain provisions of Andhra Pradesh Goods and Services Tax Rules
6 G.O.MS.No. 35 24.1.18 Fourteenth amendment to Andhra Pradesh Goods and Services Tax Rules
7 G.O.MS.No. 36 24.1.18 Composition levy under section 10 of the Act - certain amendments to notification

Circulars / Proceedings issued – GST
1 CCST.Ref.NoCCW/GST/74/2015 21-12-2017 Extension of time limit for intimation of stock held on the date proceeding the day from which the option for composition levy is exercised in FORM GST CMP-03 (extended upto 31st Jan 2018)
2 CCST.Ref.NoCCW/GST/74/2017 27-12-2017 Checking the issue of tax invoices under section 67(12) – Delegation of Power to JC(ST)s
3 CCST.Ref.NoCCW/GST/74/2017 2.1.18 Checking the issue of tax invoices under section 67(12) – Delegation of Power to JC(ST)s
4 CCST.Ref.NoCCW/GST/74/2015 2.1.18 Procedure regarding procurement of supplies of goods from DT A by Export Oriented Unit (EOU) I Electronic Hardware Technology Park (EHTP) Unit I Software Technology Park (STP) Unit I Bio- Technology Parks (BTP) Unit under deemed export benefits under section 147 of APGST Act, 2017
5 CCT’s Ref.No. Enft/E3/99/2017 4.1.18 Records to be maintained by the Transporters Under Section 35(2) of APGST Act read with Rule 58 of the APGST Rules.

Advance Rulings
1 VasaviIndustries AR.Com /3/2014 dt 21-12-2017 (A.O.135/17) same issue is already clarified by the authority for Clarification and advance ruling in A.R Com/29/2008, in CTD order No.AR 50, dated 28-05-2014(Authorities noted at S.Nos from 3 to 12 also expressed the same opinion that the cables of the applicant are high voltage cables. Even on the packing material of these cables, it is written as industrial cables of voltage of 1100 volts. In the light of all the above, it is clarified that the PVC insulated cables manufactured by the applicant for voltage of 1100 volts fall under item 38 of Schedule IV to the APVAT Act, 2005 and they are liable to tax @ 5%.)

Additional Commissioner Orders
1 Harika Petro Chem Private Limited CCT’s Ref.No.LII(1)/164/2017 dt 3.1.2018 (A.O.388) Appeal is filed before Tribunal against revision orders of DC revising inter alia with other issues. Addl Commissioner stayed the demand with a condition to pay 50%. Revision U/s 6A (3) is to be appealed to Tribunal U/s 18A of CST Act. Stay petition is to filed before Tribunal not to Addl Commissioner
2 Sri. Chennakesava Constructions CCT’s Ref.No.LII(2)/95/2014 Date:-23-01-2018 (ACO 394) dt 23.1.18 C forms are given for interstate purchase – ACTO levied Penalty – ADC allowed the appeal - Additional revised and imposed penalty – Mens rea required as per Tribunal in TA No.11/88 dt 4th Jan 1991 in the case of Texmaco Limited

ADC (presently Appellate Joint Commissioner) Orders
Sr. No. Name of the Appellant Appeal No and date of decision Gist of Orders passed
1 Sangam Milk Pro APPEAL No.02/2016-17(GNT) dt 28.12.17 (ADC 2568 /17) It is observed on the packing film filed by the appellants during the course of arguments, wherein it is not found the inscription of pasteurized milk on the Sangam Extra Life Double Toned Milk. Like wise it is not found the inscription of pasteurized milk on Extra Life but there is an inscription like `Pasteurized & Homogenized toned milk’. Therefore, it cannot treated as `fresh milk’ or `pasteurized milk’. (Provisions of Prevention of Food Adulteration may help)
2 Prudent Agri Commodities India Private Limited 27/2016-17(NRP) dt 13.12.17 (ADC 2575/17) A presumption without basis on mere suspicion cannot be sustained. Suspicion can only lead to investigation and unearthing material on which any conclusion can be based, but on mere suspicion without further investigation no inference can be drawn and no conclusion can be arrived at.
3 SG Home Appliances VJA-I/9/2017-18 dt 11.1.18 (AJC 2616) un-fructified sales aspect by the appellant, the AO has clarified in detail stating that the appellant have not recorded any details in their books of accounts to identify the non materialization of sales, therefore opined that such turnover is to be treated as concluded sales turnover only. ( all ingredients of sale should be present to tax – arguable cases exists)

DC Orders Presently Joint Commissioner of State Taxes
1 Srinivasa Waste Paper RF.No.19/2016-17 Dt 2.1.18 (1452) lorries are under their control only and they have also incurred an expenditure of Rs.1103540 for their maintenance…. all the contentions put forth by the dealers are rejected as not tenable…(Orders are against spirit of Tribunal judgment in the case of A.V.D. Suresh in TA No.88/08 dt 10th October, 2017)
2 ECOF Industries (P) Ltd Rv. No:11/2017-18/A6 dt 05-01-18 (DC1459) Revision order travelled beyond show cause notice in confirming the revision proceedings. (Loharu Steel Industries Limited (96 STC 369 - revisional authority could only be on the grounds mentioned in the show cause notice, otherwise, the very purpose of affording the reasonable opportunity by giving a show cause notice would become a farce formality.)
3 Sri Balaji Cotton Mill Rv. No.11/2014-15/A8 dt 10.1.18 (DC 1480) their request of payment of tax of Rs. 1,15,000/- on the lease rentals on leasing of ginning mills received of Rs. 23,00,000/- the revision orders are against the spirit of HC judgment in Transocean Offshore Vrs Union India in WP 44908/16 dt 6-4-17)
4 Durga Agencies Spl.R.NO.17/2016-17 dt 18.1.18 (DC 1493) Revision on credit notes from supplies towards damaged goods without effecting VAT and not giving ITC in respect of unclaimed ITC. Revision is bad for credit note not effecting VAT and not giving ITC in revision. (filing revised return is machinery provision which cannot be interpreted to defeat the object of ITC)

Gist of Delhi High Court judgment dt 11.1.2018 on Prevention of Money Laundering Act
J.Sekhar and Batch Vs. Union on India
W.P. (C) 5320/2017 and Batch dt 11.1.2018


Summary of conclusions
87 This Court summarizes its conclusions as under:

  • (i) The second proviso to Section 5(1) PMLA is not violative of Article 14 of Constitution of India; the challenge in that regard in these petitions is hereby negative.
  • (ii) The expression ‘reason to believe’ has to meet the safeguards inbuilt in the second proviso to Section 5(1) PMLA read with Section 5(1) PMLA
  • (iii) The expression ‘reason to believe’ in Section 8(1) PMLA again has to satisfy the requirement of law as explained in this decision.
  • (iv) There has to be a communication of the reasons to believe at every stage to the notice under Section 8(1) PMLA
  • (v) The notice under Section 8(1) PMLA is entitled access to the material on record that constituted the basis for ‘reasons to believe’ subject to redaction in the manner explained hereinbefore, for reasons to be recorded in writing.
  • (vi) If there is a violation of the legal requirements outlined hereinbefore, the order of the provisional attachment would be rendered illegal.
  • (vi) (vii) There can be single-member benches of the AA and the AT under the PMLA. Such single member benches need not mandatorily to be JMs and can be AMs as well.


Professional Updates- January 2018

 

VAT / GST Update in AP

CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

Gist of Judgments of Supreme Court
Sr. No. Name of the Appellant Appeal No and date of decision Gist of Judgments / Orders passed
1 C. Venkata Swamy vs. H.N. Shivanna(D) by L.R. & Anr Appeal Civil 670-671 dt 4.12.17 The exclusion of any provision for extension of time by the Tribunal in The need to remand the case to the High Court has occasioned for the reason that the Single Judge dismissed the appeals very cursorily and without undertaking any appreciation of evidence, dealing with various issues arising in the case and discussing the arguments raised by the parties in support of their case. In other words, the disposal of the two first appeals could not be said to be in conformity with the requirements of Section 96 read with Order 41 Rule 31 of the Code.
2 ACE MULTI AXES SYSTEMS AC 2781-2790/10 dt 5.12.17 while there is no conflict with the principle that interpretation has to be given to advance the object of law, in the present case, the assessee having not retained the character of ‘small scale industrial undertaking’, is not eligible to the incentive meant for that category. Permitting incentive in such case will be against the object of law

Gist of Judgments of High Court
1 Kaveri Enterprises, Kurnool WP 41430/17 dt 12.12.17 Interim Order - Directed not to detain the trucks specifying absence of advance e way bill.

Gist of Judgments of Other High Courts
1 Ambuja Cement SALES/TRADE TAX REVISION No. – 99/17 dt 19.4.17 105 VST 395 Allahabad High Court distinction of movable or immovable nature of goods is not contained in the Act, and is otherwise not a relevant consideration,…..Tribunal was justified in allowing the benefit of I.T.C on purchase of M.S. Sheets used in construction of silos, treating it as 'capital goods’
2 SUVASINI CHARITABLE TRUST W.P.(C) 6093/2017 dt 26.10.17 Delhi W.P.(C) 6093/2017 dt 26.10.17 purchasing dealer who has bona fide entered into a purchase transaction with a registered selling dealer who has issued a tax invoice reflecting the TIN number. In the event that the selling dealer has failed to deposit the tax collected by him from the purchasing dealer, the remedy for the Department would be to proceed against the defaulting selling dealer to recover such tax and not deny the purchasing dealer the ITC. application of dealer opting for payment on compounded basis neither accepted nor rejected –Dealer cannot assume application allowed-Bound to pay tax on regular basis- Dealer paying tax on regular basis-Demand for differential tax on basis of compounded rate-Not sustainable

Gist of Judgments of APVAT Appellate Tribunal
1 Subash Trading Company TA 202/17 dt 28.11.17 - DC has authority to act under Section 14(1) or 7A(2) r/w Section 4A, it is not for the assessee to suggest how DC could act or the proceedings shall be conducted
2 A.V.D. Suresh TA No.88/08 dt 10th October, 2017 Merely because the appellant is prevented from using the buses for transportation of other passengers or on certain days, the companies did not acquire effective control and possession of the buses, nor did the appellant loose the effective control and possession of the buses. Therefore, the Revisional Authority erred in observing that there is a transfer of right to use the goods in these transactions attracting levy of tax under Section 5E

GOs issued – GST
1 G.O.MS.No. 581 8-12-2017 Twelfth amendment to APGST Rules
2 G.O.MS.No. 582 12-12-2017 Exemption of goods notified under Section 11(1) of the Act
3 G.O.MS.No. 583 12-12-2017 2.5% concessional SGST rate for supplies to Exploration and Production notified under section 11 (1)
4 G.O.MS.No. 584 12-12-2017 Exemption from SGST supplies by CSD to Unit Run Canteens and supplies by CSD / Unit Run Canteens to authorised customers notified under section 11 (1)
5 G.O.MS.No. 585 12-12-2017 exemption from reverse charge up to Rs.5000 per day under section 11 (1)
6 G.O.MS.No. 586 12-12-2017 exempting supplies to a TDS deductor by a supplier, who is not registered, under section 11 (1)
7 G.O.MS.No. 587 12-12-2017 SGST exemption for dealers operating under Margin Scheme notified under section 11 (1)
8 G.O.MS.No. 588 12-12-2017 To notify the exemptions on supply of services under SGST Act [Section 11(1)]
9 G.O.MS.No. 589 12-12-2017 To notify the exemptions on supply of services under SGST Act [Section 11(1)]
10 G.O.MS.No. 590 12-12-2017 Amendment to Exemption Notification No.07/2017 to exempt services provided by Fair Price Shops to Government and those provided by RWCIS & PMFBY for MNAIS & NAIS, and insert explanation for LLP
11 G.O.MS.No. 591 12-12-2017 Exempt certain supplies to NPCIL
12 G.O.MS.No. 592 12-12-2017 Amendment to GO.Ms.No.582, Revenue (CT-II) Dept., Dt.12-12-2017
13 G.O.MS.No. 593 12-12-2017 Exempting supply of services associated with transit cargo to Nepal and Bhutan
14 G.O.MS.No. 594 12-12-2017 Amendment to G.O.Ms.No.588, Revenue (CT-II) Dept., Dt.12-12-2017
15 G.O.MS.No. 595 12-12-2017 Amendment to G.O.MS.No.582, Revenue (CT-II) Dept., Dt.12-12-2017
16 G.O.MS.No. 596 12-12-2017 Exemption from payment of tax under section 9(4) of the SGST Act, 2017 till 31.03.2018
17 G.O.MS.No. 597 12-12-2017 Prescribing State Tax rate of 0.05% on intra-State supply of taxable goods by a registered supplier to a registered recipient for export subject to specified conditions
18 G.O.MS.No. 598 12-12-2017 Granting exemptions to certain goods
19 G.O.MS.No. 599 12-12-2017 Exemption of tax over and above 2.5% for public funded research institutes
20 G.O.MS.No. 600 12-12-2017 Exemptions to certain services

Advance Ruling
1 Dolphins Aqua Products A.R.Com/133/2017dt 27.11.17 (AO 134 /17) fruit flavoured drinks referred by the dealer is not mere fruit juices. It is flavoured and loaded with Glucose.It is not Fruit drink at all. It is only with fruit flavoured. It is a non aerated drink, which ismerely fruit flavour.Hence, it is not covered under entry 107(b) of Schedule IV to the Actor under any other entry in Schedule I, II, III, IV and VI to the Act.Hence,it is clarified that thenon-carbonated fruit flavoureddrink with glucose is taxable @14.5%underentry I of Schedule V to the Act.

Additional Commissioner orders
1 Sai Durga Traders CCT’s Ref. No.LII(1)/187/2015 dt 1.12.17 (ACO 363/17)) Besides, erroneous payment of service tax on the composite transaction of the sale of wood and transportation of wood is not within the provisions of the Finance Act, 1994. Where goods are involved, the provisions of the Finance Act, 1994 are not attracted……….. decision reported in 58 APSTJ 30 relied upon by the dealer is not applicable to the facts of the present case because there is material and evidence against the dealer before me. Hence, all the proposals made in the pre-revision show-cause notice are confirmed
2 APSPDCL Limited CCT’s Ref. No.LII(2)/167/2017, dt 18.12.17 The sample agreement already filed by the dealer is clearly establishing that the meters in issue are given by the dealer to the consumers towards rent and received monthly rentals from them. The whole issue is already examined by the HC and held that there is transfer of right to use the electric meters in favour of the various consumers from the dealer.
3 Jai Maakali Poultry Products CCT’s Ref. No. LII(1)/71/16 dt 20.12.17 ACO 383/17 there is no sale of egg trays and there is only sale of eggs (State of Karnataka Vs C. Venkatagiraiah 1994-VIL-15-SC). The dealer is a whole seller of the eggs in A.P. not only as local sales but also as inter-State sales. In such long distance transportation of the eggs, the trays are necessary concomitants No contra evidence is available in the record. Hence, this presumption gets confirmed. There is no sale of egg trays.

ADC (presently Appellate Joint Commissioner) Orders
Sr. No. Name of the Appellant Appeal No and date of decision Gist of Orders passed
1 Lazarus Hospital VSP/48/2017-18 dt 7.12.17 (ADC 2512/17) A comprehensive understanding of the above judgments, undeniably advocate that any medicines, surgical items & stents etc. when administered on patients during treatment shall not be considered as any sale and tax cannot be levied on receipts related to those items.
2 Taapro Footwear VJA.II/27/2017-18 dt 11.12.17(ADC 2521/17) The AO choose to levy of tax on value equals to damaged/expired stocks in which nothing can be found wrong and basically sustainable under the provisions of Act. (Transfer of property in damaged/expired goods does not exist – ingredients for sale to impose VAT do not exist- the goods exist with the appellant are not disposed otherwise than sale to attract restriction of ITC)

DC Orders Presently Joint Commissioner of State Taxes
1 Nandi CPVC Pipes Products Spl.R.No:37/2016-17 dt 20.12.17 (DC 1435/17) While finalizing the assessment under CST ACT for the year 2011-12,there is a turnover of Rs.86,55,801/- was escaped from the assessment (Rs.52462407-Rs.43806606=Rs.86,55,801).Thus there was excess exemption of turnover to a tune of Rs.86,55,801/- and short levy of tax Rs.4,32,790/- @5%. (The appeal if to be preferred, is to be U/s 18A of CST Act – further appeal lies to CST Appellate Authority, New Delhi)


Professional Updates- December 2017

 

AP VAT / GST Update
CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

 

Gist of Judgments of Supreme Court
Sr. No Name of the Appellant Appeal No and date of decision Gist of Judgments / Orders passed
1 International Asset Reconstruction Company Of India Ltd Appeal Civil 16962/17 dt 24.10.17 The exclusion of any provision for extension of time by the Tribunal in preferring an appeal under Section 30 of the Act makes it manifest that the legislative intent for exclusion was express. The application of Section 5 of the Limitation Act by resort to Section 29(2) of the Limitation Act, 1963 therefore does not arise. The prescribed period of 30 days under Section 30(1) of the RDB Act for preferring an appeal against the order of the Recovery officer therefore cannot be condoned by application of Section 5 of the Limitation Act.
2 SRD NUTRIENTS AC 2781-2790/10 dt 10.11.17 23) It is also trite that when two views are possible, one which favours the assessees has to be adopted….. For the aforesaid reasons, we allow these appeals and hold that the appellants were entitled to refund of Education Cess and Higher Education Cess which was paid along with excise duty once the excise duty itself was exempted from levy.
3 Indian Oil Corporation AC 3018 OF 2017 dt. 14.11.2017 Entry Tax would not be leviable on these transactions at all as the consumption, use or sale of petroleum products has taken place outside the local area of Patna (in AP and Telangana, entire State is considered to be Local area).
4 S.R.M.B. DAIRY FARMING AC 19650 of 2017 dt 23.11.17 We may also take note of the judgment of this Court in Suchitra Components Ltd. v. Commissioner of Central Excise, Guntur on the general principle of application of Circulars. Reliance was placed on the view expressed in Commissioner of Central Excise, Bangalore v. Mysore Electricals Industries Ltd opining that a beneficial circular has to be applied retrospectively while an oppressive circular has to be applied prospectively……….. the said view of the three Judges Bench would hold water and the Circular would apply even to pending matters

Gist of Judgments of High Court
1 M.S.R. Granites Metals TREVC NO.3 OF 2017 dt 28.2.17 ((65 APSTJ 1) There must be ‘any order passed’ or ‘proceedings recorded’ by the first appellate authority which enables the Tribunal to entertain an appeal filed before it on merits. If there was no appeal before the first appellate authority, there can be no second appeal before the Tribunal
2 K. Narender Reddy 65 APSTJ 21 If the applicant makes a false statement or suppresses any material fact or attempts to mislead the Court, the Court may dismiss the writ petition on that ground alone and may refuse to enter into the merits of the case. A prerogative remedy is not a matter of course. While exercising the extraordinary power, a Writ Court would certainly bear in mind the conduct of the party invokes the extraordinary jurisdiction of the Court
3 Venkateswara Traders WP 15888 and 44521/16 dt 7.2.17 (65 APSTJ 32) In order to attract penalty U/s. 53(3) of the APVAT Act, 2005, the dealer should be guilty of fraud or guilty of willful neglect. Where goods are stored in a State owned warehouse corporation and such stock is entered into in the registers of the said warehousing corporation and such stock is not properly reflected in the stock register of the dealer, it cannot be attributed that there is fraud or willful neglect on the part of the dealer warranting levy of penalty U/s. 53(3) of the Act.

Gist of Judgments of APVAT Appellate Tribunal
1 Sri Saptagiri Enterprises T.A.Nos. 372 & 373 OF 2011 dt 25.10.17 Harpic and Lizol are disinfectants and fall within the category of pesticides covered by Entry-20 of IV Schedule of AP VAT Act and they are exigible to tax @ 4%
2 Sencon System TA 188/16 dt 17.10.17 the appeal is allowed partly setting aside the order of ADC to the extent of denying the benefit of tax under the composition scheme applicable to the additional work.
3 V. Madhusudhan Reddy in TA No.88/08 dt 10th October, 2017 Revisional Authority failed to show that the assessment is irregular and detrimental to the revenue of the Govt. so as to interfere in the revision. As such the revisional order is liable to be set aside.
4 Madhu Granites TA 359/2009 dt 10.10.17 A plain reading of the above cited Rule indicates that it is no where mentioned that the dealer should file only original C-Forms and not the counterfoils…. the appeal can be allowed and the matter is remanded for accepting the counterfoil of ‘C’ Form
5 Delight Chemicals TA 32/08 dt 26.10.17 Revisional order of RA confirming the levy of tax under Section-5AA by setting aside both the orders of the ADC and original assessment orders of the AA is not sustainable, even though, the levy may be correct, but the authority to levy is either barred by limitation or suffers from lack of jurisdiction
6 Laxmi Cotton Enterprises TA 416/08 dt 31.10.17 Failed to establish the facts as to when the goods were landed, where the goods were from the date of purchase till the date of delivery to the purchaser, when the documents of title in the goods were transferred etc. Therefore, the dealer could not establish that the transaction is a transit sale amounting to first sale to claim exemption under Sec. 6(2) of the Act.
7 Sri Lakshmi General Trading Company TA 236/08 dt 31.10.17 RA in his orders, he has discussed about the merits of the case along with the lapses done by ADC in condoning the appeal inordinate delay without any specific reason. Hence, the orders of the RA are sustainable

GOs issued - GST
1 G.O.MS.No. 484 dt 31.10.2017 Amendments to certain rules
2 G.O.MS.No. 485 dt 31.10.2017 Changes to the list of persons exempted from obtaining registration under Section 23(2)
3 G.O.MS.No. 486 dt 31.10.2017 Cross empowerment for refunds under sections 54 and 55
4 G.O.MS.No. 487 dt 31.10.2017 Changes in the payment period for suppliers having rupees 1.5 Cr. and less turnover
5 G.O.MS.No. 488 dt 31.10.2017 Ninth amendment to APGST Rules
6 G.O.MS.No. 489 dt 31.10.2017 Increasing turnover limit for composition suppliers – from Rs.75 Lakh to One Crore
7 G.O.MS.No. 490 dt 3.11.2017 Changes in the list of persons liable to pay reverse charge tax
8 G.O.MS.No. 491 dt 3.11.2017 Certain changes to reverse charge tax on goods supplied by Central and State Governments
9 G.O.MS.No. 492 dt 3.11.2017 Certain changes to reverse charge tax on goods supplied by Central and State Governments
10 G.O.MS.No. 493 dt 3.11.2017 Changes to rates of tax applicable to motor vehicles
11 G.O.MS.No. 494 dt 3.11.2017 Reduction of Goods and Services Tax rate on Food preparations put up in unit containers and intended for free distribution to economically weaker sections of the society under a programme duly approved by the Central Government or any State Government
12 G.O.MS.No. 495 dt 3.11.2017 Tenth amendment to APGST Rules
13 G.O.MS.No. 496 dt 3.11.2017 certain supplies as deemed exports under section 147 of the APGST Act, 2017 – (1) against Advance Authorization (2) registered person against Export Promotion Capital Goods Authorization (3) registered person to Export Oriented Unit & (4) Supply of gold by a bank or Public Sector Undertaking specified in the notification No. 50/2017-Customs, dated the 30th June, 2017 (as amended) against Advance Authorization
14 G.O.MS.No. 497 dt 3.11.2017 evidences required to be produced by the supplier of deemed export supplies for claiming refund under rule 89(20(g) of the APGST rules, 2017
15 G.O.MS.No. 551 dt 16.11.17 certain changes made by the Central Government before issuing Notification No.11/2017 Central Tax (Rate)- Not incorporated in the (Govt. of A.P.) notification issued in G.O.Ms.No.259, Revenue (CT-II) Dept., Dt.29-06-2017 - Corrigendum Orders
16 G.O.MS.No. 552 dt 16.11.17 Changes to rates of tax of certain services
17 G.O.MS.No. 553 dt 17.11.17 Changes to rates of tax of certain goods
18 G.O.MS.No. 554 dt 17.11.17 Payment of reverse charge on raw cotton
19 G.O.MS.No. 555 dt 17.11.17 No ITC refund for certain commodities - 5608 Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials, 5801 Corduroy fabrics & 5806 Narrow woven fabrics, other than goods of heading 5807; narrow fabrics consisting of warp without weft assembled by means of an adhesive (bolducs)”.
20 G.O.MS.No. 556 dt 17.11.17 Changes to rates of tax of certain Services
22 G.O.MS.No. 560 dt 24.11.17 Waiver of late fee payable under Section 47 of the APGST Act, 2017 for delayed filing of the return in FORM GSTR-3B for the months of August and September, 2017
23 G.O.MS.No. 561 dt 24.11.17 Seventh amendment to the APGST Rules, 2017
24 G.O.MS.No. 562 Special Procedure for filing outward supplies for suppliers whose aggregate turnover is up to 1.50 crore rupees in the preceding financial year or the current financial year dt 24.11.17
25 G.O.MS.No. 563 Seeks to extend the time limit for filing of Form GSTR-4 till 24-12-2017 dt 24.11.17
26 G.O.MS.No. 564 dt 24.11.17 Seeks to extend the due date for submission of details in Form GST-ITC-04 till 31.12.2017
27 G.O.MS.No. 565 dt 24.11.17 Waiver of the amount of late fee payable by any registered person for failure to furnish the return in FORM GSTR-3B for the month of October, 2017 onwards by the due date under section 47 of the said Act
28 G.O.MS.No. 566 dt 24.11.17 Exempting from obtaining Registration, persons making supplies of services, other than supplies specified under sub-section (5) of section 9 of the said Act through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act, and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year
29 G.O.MS.No. 567 dt 24.11.17 Notifying the registered person who did not opt for the composition levy under section 10 of the said Act as the class of persons who shall pay the state tax on the outward supply of goods at the time of supply as specified in clause (a) of sub-section (2) of section 12 of the said Act

Advance Ruling
1 M S R Silver Palace A.R.Com/27/2016 dt 17.10.17 (AO 132 /17) If the dealer is required to transport the silver/silver articles on its own, either to the places of inside the State of A.P. or outside the State of A.P., it is governed by the provisions of APGST Act, 2017 and IGST Act, 2017, respectively, currently from 01-07-2017.

Additional Commissioner orders
1 Lanco Industries CCT’s Ref. No. LII(2)/134/2015 dt 24-10-2017 (ACO 309/17) Hon’ble High Court of Judicature of A.P. at Hyderabad, following the decision of Hon’ble Supreme Court of India in the case of Hazi Ali Mohamad Biri Works Vs State of U.P. 32 STC 496 SC, held in the case of Ramu and Co., Vs State of A.P. 43 STC 510 APHC that the payment of interest cannot be equated or mixed up with levy of penalty; that the liability to pay interest is automatic and arises by operation of law; and that the period of stay cannot be excluded for the purpose of collecting interest.
2 APSRTC CCT’S Ref. No .LII(1)/145/2017 dt 26-10-17 (ACO 313/17) The goods are sold by the dealer in numbers not in tones/quintols. Iron and steel scrap is sold always in quintols/tones, etc., on weight basis. Not in numbers. Thus, seeing the issue from any angle, not even a prima facie case is made out by the dealers.
3 Ultra Tech Cement CCT’s Ref. No. LII(2)/163/2015 dt 16-11-17 (ACO 338/17 dealer failed to file the valid declarations with true facts which are dependable, genuine and correct within the meaning of Section 6(A) of the Act. In the light of all the above, all the proposals made against the dealer are confirmed in toto. (the order against SC judgment in Harbanslal Malhotra & Sons Pvt.Ltd. in Civil Appeals No. 3337/2007 dt 5.9.17 “…….. 24 It is a settled rule of interpretation in relation to taxing laws that a machinery provision which enables the assessee to avail of a concession or benefit conferred by substantive provision in the Act, such provisions are required to be construed liberally. (See G.P Singh -Principles of Interpretation of Statutory Interpretation 13th Edition page 856). This rule applies to the case on hand and hence, benefit of the interpretation must go to the assessee rather than to the taxing man……….”) (Appeal may be filed before Tribunal U/s 18A of CST Act with stay petition – further appeal (if required lies to CST Appellate Authority making other States as parties with stay petition)

ADC (presently Appellate Joint Commissioner) Orders
Sr. No Name of the Appellant Appeal No and date of decision Gist of Orders passed
1 Ismail Timber Depot Appeal No. 56/2016-17(ATP) dt 23.10.17 (ADC 2384/17) The assessing authority ought to have verified the books of accounts, purchase bills and sales statement with reference to VAT 200 returns for the audit period from June, 2014 to January, 2015 and passed orders accordingly.
2 Sri Lalitha Cotton Ginning Co 103/2015-16(KNL) dt 23.10.17 (ADC 2387/17) ”there is no evidence to show that the appellants have escaped the turnover either in the books of accounts or in I.T. statements during the period of assessment. Therefore, on this ground alone the appeal is liable to be set aside….”
3 Tulasi Mirchi Traders 141-142/2015-16(GNT) dt 24.10.17 (ADC 2388/17) the shortage accounted by the appellant is very much reasonable and genuine. There is no question either through show-cause notice or by way of argument in assessment order regarding the reasonableness or other wise of the shortage accounted. The shortage of weighment is an inherent nature of any agri-based commodity and is in existence since the beginning.
4 Doosan Infra Core 170 & 192/2016-17(CTR) dt 23.10.17 (ADC 2408/17) there is no evidence or record to show that the goods under transit is meant for sale between the appellants and M/s. Pallava Red Granites Pvt. Ltd., Chimakurthy…………. transaction covered under the documents is not a sale in view of the facts and circumstances as proved by the appellants. With these observations and the material available on record, the appeal is liable to be set aside and allowed.
5 Empereal KDGS Renewable Energy 166-167/2016-17(CTR) dt 23.10.17 (ADC 2409/17) there is no willful or fraudulent motive on the part of the appellants in transporting the goods from Coimbatore to Visakhapatnam in A.P. which was duly covered with proper documents described above and there is no obligation on the part of the appellants to pay tax and penalty
6 Ratnagiri Trading Company VJA-II/46/2017-18 dt 20.11.17 (ADC 2442/17) It is also pertinent here, to record that though the audit officer has estimated stock difference, but has not anywhere established the resultant sales of such estimated stock difference. Many authorities held previously that levy of tax on mere assumption of stock difference cannot be held valid unless resultant sales are proved with corroborative evidence or leading to such circumstances of sale.
7 Dishnet Wireless VJA-II/37/2017-18 dt 201.11.17 (ADC 2444/17) arguments that the possessive control of any goods was not transferred, hence no transfer of right to use involved, is found to be factual and to be held as tenable
8 Bhushan Power & Steel) VSP/117/2016-17 dt 20.11.17 – (ADC 2446/17) It is evident from the assessment order that the AA has not caused any further enquiry to establish whether such stock difference has been resulted in sales suppression by the appellant or not? That means, the AA could have verified alternative evidences of bank statement, other end dealers (who regular purchases from the appellant, purchase records for evincing evidence to prove whether the appellant has suppressed any sales. Without such findings, action of the AA by levying tax on mere assumption of sales suppression lacks credibility & authenticity.

DC Orders Presently Joint Commissioner of State Taxes
1 Pyla Imports & Exports Rc. No. 406/ 2015, A9 dt 26.10.17 (DCO 1325/17) CST Act,1956 provided eligibility of exemption only to the last sale preceding to export to outside the territory of India. In the present case the buyer i.e. M/s. Chaitanya Industries did not export the goods to outside the territory of India. They have only sold the goods to an exporter and not to a foreign buyer outside the territory of India and did not receive any amount from the foreign buyer.
2 Sri Santhoshimatha Constructions RV No.7/2017-18/NRP dt 8.11.17 (DC 1363/17) sale was occurred after completion of construction and hence there is no liability of tax on the sold property

Professional Updates- November 2017

 

VAT / GST Update in AP

CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

Supreme Court

  • 1. Ahluwalia Contracts – AC 15605-06/17 dt 4.10.17 - The power of the High Court under Article 226 of the Constitution, wide and pervasive as it is, should have enabled the High Court to appropriately deal with the situation and issue consequential directions permitting initiation of fresh proceedings, if the Revenue was so inclined.
  • 2. Karnataka Soaps & Detergents AC 4822-4825/15 dt 12.10.17-In this process of manufacturing the perfumery compounds are capable of being sold in the open market. The odoriferous compound has got a shelf life and capable of being stored/transported/sold and bought by agarbathi industries. As noticed above, the assessee had sold certain quantity of perfumery compound to M/s. Tibetan Handicrafts Centre Bylkuppe, Mysore District. Therefore, we are of the view that it is an excisable product falling under Chapter Sub-Heading 3302.90

GOs issued U/ GST
  • 1. G.O.MS.No. 446 Dated: 03-10-2017 - In exercise of the powers vested under Section 68 of the Andhra Pradesh Goods and Services Tax Act, 2017 read with Rule 138 of the Andhra Pradesh Goods and Service Tax Rules, 2017, the Government of Andhra Pradesh hereby extends the time limit of operation of the notification issued vide G.O.Ms.No.309, Revenue (Commercial Taxes-II) Department dated 24th July, 2017 till 31-12-2017 or till the eway bill system is developed and approved by the Council, whichever is earlier.
  • 2. G.O.MS.No. 456 dt 16-10-17 - In exercise of the powers conferred by section 128 of the Andhra Pradesh Goods and Services Tax Act, 2017 (Act No.16 of 2017), the Government, on the recommendations of the Goods and Services Tax Council, hereby waives the late fee payable under section 47 of the said Act, for all registered persons who failed to furnish the return in Form GSTR -3B for the month of July, 2017 by the due date.
  • 3. G.O.MS.No. 457 dt 16-10-17 - Appointing 18th September, 2017 as the date on which the TDS provisions under sub-section (1) of Section 51 of the Act (a) an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with fifty-one percent or more participation by way of equity or control, to carry out any function; (b) society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860); (c) public sector undertakings: Provided that the said persons shall be liable to deduct tax from the payment made or credited to the supplier of taxable goods or services or both with effect from a date to be notified subsequently, on the recommendations of the Council, by the Government.
  • 4. G.O.MS.No. 459 dt 16-10-17 Amendments to certain rules- Notification- Orders
  • 5. G.O.MS.No. 460 dt 16-10-17 Reduction of rate of tax on services provided to the Central Government, State Government, Union Territory, etc
  • 6. G.O.MS.No. 461 dt 16-10-17 Change in rates of tax of certain goods like dried tamarind, roasted gram
  • 7. G.O.MS.No. 462 dt 16-10-17 Amendment list of goods where excess ITC cannot be refunded; i.e., notifying that Excess ITC is not refundable for Corduroy Fabrics

Notification issued U/ GST

Government vide Notification 38/2017, Dt: 13-10-2017 has postponed the applicability of reverse charge on inward supplies from unregistered under Section 9(4) of CGST Act from 13-10-2017 till 31-03-2018, it is applicable to all the taxable persons.

Advance Rulings - VAT

1. Vassar Labs IT Solutions - A.R.Com/439/2016 dt 26.9.17 (AO 127/17) – (a) The transactions covered under this document are constituting work contract within the meaning of section2 (45) of the APVAT Act, 2005 and hence, it is liable for registration under Section 17 of APVAT Act, 2005 and it is liable to pay tax as under. If it has opted to pay the tax liabilities under composition scheme, the applicant will be liable to pay tax @ 5% on the entire work contract consideration agreed to be paid. (b) If it does not opt to come under the composition scheme, it is liable to pay tax @14.5% on 70% of the total consideration agreed to be paid by the contractee to the contractor-applicant. (c) However, if the applicant – dealer establishes the various components of labour and services charges for the execution of the works, charges for planning design and architect fees, cost of establishment, cost of consumable goods, profit earned by the contractor to the extent it is relatable to supply of labour and service, etc, it can pay for only on the material component which is to be arrived at under Rule 17 of the APVAT Rules, 2005 at the rates (Schedule rates mentioned in Schedules I,II,III,IV, V& VI of the APVAT Act, 2005) that are applicable to the goods which are transferred from the applicant-contractor to the contractee.

2. Divyabhirami Agro Sales - A.R.Com/271/2016 dt 26.9.17 (AO 128/17) - The revisionist-applicant could not establish that we have committed any mistake which is apparent from the record. Nor there is any change in the law or facts on the basis of which the clarification or ruling given earlier is to be reviewed / rectified. In the light of the above, we are of the view that it is not a fit case for either review or rectification.

3. Gayatari Enterprises A.R.Com/267/2016 dt 26.9.17 (AO 129/17) - This issue is fairly covered by the clarification already issued by this Authority in CCT’s. Ref.No.AR.Com/39/2006, dt 01.11.2006, in the case of M/s Salvo Explosives and Chemicals (P) Ltd, Nalgonda District and hence, this application, is not maintainable before this Authority – The ruling as follows: The eligibility of input tax credit with respect to the detonating fuse, detonators, card relays etc. used in the execution of any work depends upon whether the output is liable to tax or not. The applicant cannot say on one hand that he can claim input tax credit but he is not 3. liable to output tax. If the value of the goods used in the execution of work is eligible to tax, the benefit of input tax credit is also available under the provisions of Section 13 of AP.VAT Act read with Rule 20 of AP.VAT Rules, 2005.

4. Merino Industries A.R.Com/424/2016 dt 11.10.17 (AO 130/17) - it is hereby clarified that acrylic solid surface sheet is taxable @ 14.5% under schedule VI to the Act in advance ruling in A.R.Com/55/2013 (CTD Order No.1, dated 06-01-2014)

ADC (presently Appellate Joint Commissioner) Orders

1. Sri Lakshmi Balaji Stone Crushers - APPEAL NO. 20- 25/2017-18 (NRP) dt 23-09-2017 - ADC ORDER NO.2269/2017 - In the process of manufacturing that is Crushing the boulders into chips will generate lot of wastage depends upon the quality of rocks. The appellants has not disputed the quantity of permits issued by the mining department but questioning the adaptation of average price of 40 mm and 20mm chips based on SSR rates ignoring the fact of wastage and the rates of 12 mm and 6mm chips. The Authorized Representative further contended that a factual enquiry by the assessing authority will certainly reveal the ground realities to assess their appellants’ liability of tax correctly. The Authorized Representative contended the assessing authority passed orders without making minimal enquiry.

2. Murali Krishna Agro Industries - Appeal No. VSP/42/2017-18 dt 27.09.2017 ADC 2291/17 - The appellant strongly professed that, at no point of time such wheat ravva was mixed with the other produced vermicelli and hence, such records cannot be rejected as untrue merely basing on some assumption and presumption. The appellants declared that they have maintained all such books of accounts, records, invoices and all corroborative and supporting documents including waybills that are prescribed under Rule 29 of AP VAT Rules and further that these records and books are substantial evidence to prove their contentions. Therefore, the appellants established that they have maintained separate records for dispatch of goods obtained from both outside the states and within the state purchases of wheat ravva and the specific inputs as stated supra

3. Megha Fruit Processing APPEAL No.29/2017-18(CTR) dt 25.10.17 (ADC Order No.2317/17) - When all the details what so ever required by the assessing authority are available in the statutory declaration form, rejecting the same without conducting enquiry is bad in law. The decision of the Supreme Court of India rendered in the case of Ashok Land Ltd Vs State of Tamilnadu (SC) reported in 134 STC page 473 is applicable.

4. Ganesh Traders - 36/2017-18 (NRP) (ADC ORDER NO.2320/17)dt 5.10.17 - As seen from the impugned re-assessment order it is noticed that the orders passed by the assessing authority without verifying the IT statements is not correct and valid and made it difficult to uphold the legality of the orders passed on this count. As seen from the assessment record, it is strikingly observed that there are no evidences of the material available de-hors the record to re-assess the appellant.

5. Sri Dhana Lakshmi Stone Crusher - 35/2017-18 (NRP) dt 5.10.17 (ADC ORDER NO.2319/17) - assessing authority at least would have obtained the information from other stone crushers about production of varieties of metal chips and should know the process from the boulders stage to the chips stage and confirm whether ant truth in the contentions of the appellants and pass orders accordingly. I therefore set aside such estimate and levy of tax and remand the matter to the assessing authority for computation of turnovers by conducting independent enquiry

6. Starrh Almond King 24/2017-18(GNT) dt 9.10.17 (ADC 2337/17) examine all the relevant documents in respect of sales returns that were happened within a period of 6 months from the date of invoice, under the provisions of Section 8A(1)(ii) of C.S.T.Act, 1956, with reference to stock register, movement of goods etc and pass appropriate order afresh under the provisions of CST Act, 1956

7. Chandrasekhar Naidu 108/2015-16(CTR) dt 3.10.17 (ADC 2344 /17)the appellants had transferred the right to use goods to the APSRTC as per the terms and conditions between the appellants and APSRTC (the appeal orders are against the spirit of HC judgment in Transocean Offshore Vrs Union India in WP 44908/16 dt 6-4-17)

8. Kone Elevator India Pvt. Ltd VJA-II/109/2016-17 dt 20.10.17 (AJC 2352/17) Since it is a works contract and the dealer is not able to ascertain expenditure portion between material and labour though maintaining books of accounts, same is 70% taxable and 30% exemption/ standard deduction will applied as per Rule 17 (1) (g) of AP VAT Rules is to be upheld as precise & accurate

DC Orders Presently Joint Commissioner of State Taxes

M.G. Brothers Spl.R.No.40/2014-15 dt 11.10.2017 (DCO 1316/17) - hiring of their vehicle to HPCL squarely fit within the ambit of Right to use Goods and liable to be taxed under the section 4 (8) (the revision orders are against the spirit of HC judgment in Transocean Offshore Vrs Union India in WP 44908/16 dt 6-4-17)


Professional Updates- September 2017

 

Andhra Pradesh VAT

CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

Supreme Court

  • 1. Rayalaseema Alkalies and Batch - Appeal Civil 8036-8060/17 – directed the respondents in the judgment on entry tax to file petitions in the concerned High Courts by 15th August, 2017 – HC decides as per the guidelines of Nine Members Bench Judgment.
  • 2. Hindustan Petroleum Corporation Appeal Civil 9295/17 dt 3.8.2017 (IT Matters) this Court in Commissioner of Income Tax, Madras v. Vinbros and Company where bottling and blending of alcohol is held to be ‘manufacture or production’ for the purpose of Section 80-IB
  • 3. Privacy is held to be fundamental right by 9 Members Constitution Bench over ruling 1976 Judgment.
  • 4. Indian Hume Pipe Co. Civil Appeal 9879/17 dt 28.8.17 - the agreement was clearly in two parts, namely, (i) sale and supply of PSC pipes, jointing material specials, valves, anchor blocks, etc. and (ii) the remaining part being supply of labour and services. These findings are upheld not only by the appellate authority but also by the Single Judge of the High Court as well as the Division Bench of the High Court. It may also be mentioned at this stage that the assessee has, in fact, admitted that it had no grievance against the finding that supply of pipes was nothing but the sale of pipes involved in the execution of the contracts and, therefore, it was excisable to sales tax.

PMs Independence Day Speech - GST rollout improves business efficiency by 30%: PM Narendra Modi
The abolition of inter-state check posts after the implementation of GST has reduced time for movement of goods by 30 per cent and saved thousands of crores of rupees.

GOs issued
  • 1. GO MS No. 309 dt 24.7.17 - e-Waybill is required for the movement of goods which are not exempted under the Act for all purposes i.e., coming into the State or going out of the State or for the movement within the State, when the value of goods excluding tax exceeds Fifty Thousand Rupees. However, the issue of an e-Waybill shall not be necessary where a person, who is not a taxpayer, transports his household goods or other articles for his own use from one place to another.
  • 2.GO MS No. 375 dt 18.8.17 - amendment for rule 34, the following shall be substituted, namely:- “34. Rate of exchange of currency, other than Indian rupees, for determination of value.- (1) The rate of exchange for determination of value of taxable goods shall be the applicable rate of exchange as notified by the Board under section 14 of the Customs Act, 1962 for the date of time of supply of such goods in terms of section 12 of the Act. (2) The rate of exchange for determination of value of taxable services shall be the applicable rate of exchange determined as per the generally accepted accounting principles for the date of time of supply of such services in terms of section 13 of the Act.”;

    in rule 44, with effect from 1st July, 2017, for sub-rules (2) and (3), the following shall be substituted, namely:- “(2) The amount, as specified in sub-rule (1) shall be determined separately for input tax credit of central tax, State tax, Union territory tax and integrated tax. (3) Where the tax invoices related to the inputs held in stock are not available, the registered person shall estimate the amount under sub-rule (1) based on the prevailing market price of the goods on the effective date of the occurrence of any of the events specified in sub-section (4) of section 18 or, as the case may be, sub-section (5) of section 29.”; (iv) in rule 46, for the third proviso, the following proviso shall be substituted, namely:- “Provided also that in the case of the export of goods or services, the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details, namely,- (i) name and address of the recipient; (ii) address of delivery; and (iii) name of the country of destination:”;
  • 3. Amendments specified to items specified in G.O.Ms.No.259, Revenue (Commercial Taxes-II) Department, 29th June, 2017 by GO Ms No.382 to 386 dt 22.8.17


Tribunal
  • 1. Jami Santharao TA 99/11 dt 31-10-16 - Here bill of lading is filed showing the movement of goods in the course of export. Invoices have been filed proving the identity of the goods. The foreign buyer’s purchase orders numbers were quoted in the H form. Unless there is foreign buyer’s order, it may not be possible for the Indian Exporter to place order on the appellant for shipment of the goods. Apart from it the circular instructions issued by the Commissioner does not indicate that foreign buyer’s agreement has to be filed.
  • 2. Sai Industries TA 97/08 dt 28.8.17 - Since it is burden of the Revisional Authority to conclude that the commodity is not writing slates and cannot lay the burden on the dealer to show that the commodity is writing slates only and the impugned order does not reflect that it relied on any tenable evidence to come to its conclusion, the impugned order is not sustainable.

    in rule 44, with effect from 1st July, 2017, for sub-rules (2) and (3), the following shall be substituted, namely:- “(2) The amount, as specified in sub-rule (1) shall be determined separately for input tax credit of central tax, State tax, Union territory tax and integrated tax. (3) Where the tax invoices related to the inputs held in stock are not available, the registered person shall estimate the amount under sub-rule (1) based on the prevailing market price of the goods on the effective date of the occurrence of any of the events specified in sub-section (4) of section 18 or, as the case may be, sub-section (5) of section 29.”; (iv) in rule 46, for the third proviso, the following proviso shall be substituted, namely:- “Provided also that in the case of the export of goods or services, the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT/SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details, namely,- (i) name and address of the recipient; (ii) address of delivery; and (iii) name of the country of destination:”;

  • Professional Updates- August 2017

     

    Andhra Pradesh VAT

    CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

    Tribunal

    1. 1. West Godavari Co-Operative Sugars TA 458/09 dt 25.1.17 The successful purchaser in the present case is from outside the State of A.P. who participated in the auction with an intention to transport molasses to outside the State of A.P. The supporting documents produced i.e., the bills, way bills and C forms clearly shows that the sale effected by the appellants are inter-state sales.
    2. 2. Hirawat Fashion TA 481/11 dt 25.1.17 - artificial jewellery sold by the appellants clearly falls under Entry 146 of First Schedule liable to be taxed @ 1% and the revisional authority has erroneously levied the tax @ 12% treating them as unclassified goods
    3. 3. Balaji Spun Pipes - TA 408/08 dt 17.2.17 Though there is a delay of more than three months in the service of revision order, we are not going into the issue because the impugned order is found to be bad in law for the other reasons hereinabove mentioned
    4. 4. K.A.R. Cotton Traders TA 200/07 dt 22.2.17 - Levy of tax by making a vague allegation that the appellant purchased cotton kappas without any material on record would be bad in law. There is no discharge of burden by the DC.
    5. 5. Costal Communications TA 85/08 17.7.17 - recharge coupons and sim cards only enable the users to access the service providers and as such they are only a means of accessing of service provided and not goods separately sold and hence leviable to turnover tax under Section-5A of the Act on the turnover relating to the second sale of the recharge coupons and sim cards. Therefore, we hold that levying of turnover tax is not leviable on the second sales of sim cards and recharge coupons.

    Gujarat HC

    Titan Industries O/TAXAP/46/2017 dt 3.2.17 (101 VST 1) - The word “Article or Jewellery” used in Entry No.13(ii) of Schedule II of the Act is required to be given the widest meaning and is not required to be read in a narrow or restricted sense and the fullest meaning is required to be given to the words used in the Entry in the texting statute. In the case of The Elel Hotel and Investments Ltd. and Anr (Supra) the Hon’ble Supreme Court has observed that the cardinal rule of interpretation is that the entries in the legislative lists are not to be read in a narrow or restricted sense and that each general word should be held to extend to all ancillary or subsidiary matters which can fairly and reasonably be said to be comprehended in it. It is further observed that the widest possible construction, according to the ordinary meaning of the words in the entry, must be put upon them

    Central Board of Direct Taxes

    Circular 23/17 dt 19.7.17- Modification of Circular No.1 of 2014 in view of substitution of Service Tax by Goods and Services Tax - 4. In the light of the fact that even under the new GST regime, the rationale of excluding the tax component from the purview of TDS remains valid, the Board hereby clarifies that wherever in terms of the agreement or contract between the payer and the payee, the component of'GST on services' comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVIJ-B of the Act on the amount paid or payable without including such (GST on services' component. GST for these purposes shall include Integrated Goods and Services Tax, Central Goods and Services Tax, State Goods and Services Tax and Union Territory Goods and Services Tax


    Professional Updates- July 2017

    VAT Update in AP

    CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

    Supreme Court
    Kathyayini Hotels 135 STC 77 - Even a best judgment assessment must be reasonably made and not on surmises

    Advance Ruling
    Shuchi Beverages-A.R.Com/376/2016 dt 24.5.17 (AO124/16)–Movement of goods outside AP– price ex factory – specified as sales liable for VAT – Appeal filed before APVAT AT VSKP – Arguable case exists

    Orissa HC
    D. K. Construction - STREV Nos.101 /11 and batch dt 1.3.17 - 100 VST 24 - Contract for supply of ballast and grit at both sides of Railway track – Labour charges to be deducted

    Bombay HC
    Axis Bank – WP 1796 OF 2015 dt 7.3.17 100 VST 48 - Recovery of tax-Priority of debts- Company in liquidation –Bank bringing property mortgaged to it to sale- Bank’s dues have priority over statutory dues - Maharashtra Value Added Tax , 2002 (9 of 2005), ss. 33(1), 37, 38 – Securitization and Reconstruction of Financial Assets and Enforcement of security Interest Act (54 of 2002), ss. 13, 26E, 35-Companies Act (1 of 1956), ss. 529, 529A, 530

    Chhattisgarh HC
    Kasturchand Bafna 100 VST 251 Breakup of landed cost per tone including freight by road on pre-paid door delivery basis – Freight charges included in “sale price” by express agreement between parties –Includible in taxable turnover –Reassessment –Question whether freight charges includible in turnover not considered in original assessment – Reopening of assessment valid

    Allahabad HC
    Silawar Brick Field 100 VST 394 Settlement scheme fixing trade tax payable on composition basis – Once agreement entered into, binding on both dealer and Department – Dealer not entitled to seek waiver of payment on any ground


    Professional Updates- June 2017

    VAT Update in AP

    CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

    Supreme Court

    • 1. Aryaverth Chawl Udyuog, Appeal Civil No. 6714/09 dt. 27.11.14 (91 VST 1)- assessment cannot be reassessed by placing reliance on the change in law specified in circular and action is taken on the basis of directions issued by Commissioner.
    • 2. CTO Vs A Infrastructure Ltd Appeal Civil 2806/15 dt 24.11.15 - There is no doubt that a distinction has to be drawn between exempted goods, which means complete exemption for the specified goods, and when the goods are taxable goods, but a transaction or a person is granted exemption. When the goods are exempt, there would be no taxable transactions or exemption to a taxable person. In other cases, goods might be taxable, but exemption could be given in respect of a taxable event, i.e., 8 (1976) 4 SCC 27 24 Page 25 exemption to specified transactions from liability of tax or exemption to a taxable person, though the goods are taxable. (Argument of profession - ITC can be claimed in respect of sale of taxable goods even if not taxed under specified circumstances)

    High Court
    Bhimas Hotels – WP 217/17 dt 23.3.17 - supply of food to its workers at a subsidized rate is understood to be part of their industrial obligation, it is unthinkable that the same can be construed as service falling within the definition of the expression ‘service’ under Section 65B(44) of the Finance Act. The 2nd respondent has completely overlooked this aspect and assumed a jurisdiction not vested in him in law. As a matter of fact, the petitioner has paid the value added tax on the value of the food supplied to its workers. In respect of some assessment years, they have even been imposed with a penalty under the Andhra Pradesh Value Added Tax Act, 2005. Therefore, once the State Authorities have treated the supply of food to the workers of the petitioner as sale, it is not open to the respondents to treat the same as service and impose a liability.

    Advance Ruling
    Foods Fats & Fertilisers-A.R.Com/08/2015 dt 28.4.17(A.O. 122/16)(majority decision) - Margarine is commercially a different product from vegetable oils mentioned in Entry 66 or 67 of schedule –IV and therefore, it falls under Schedule-V liable to tax @14.5%

    Commissioner’s Circulars
    CCT’s Ref.No.CCW /CS (1)/128/2015, dt.09.05.17- filing of Annexure III ( List of inventory )and Annexure IV ( Details of all bank accounts transacted during the tax period ) along with form VAT 200 for the quarter endings June, September, December and March

    Gujarat HC
    Shyam Industries Special Civil Application No 5204/16 dt 17.6.16 (100 VST 343) - Tribunal and High Court directing refund – Department seeking special leave to appeal to Supreme Court and Supreme Court issuing notice on petition and application for condonation of delay – Commercial Tax Officer cannot suo motu refuse to refund on ground Department in process of appealing to Supreme Court – However, refund to abide order of Supreme Court.


    Professional Updates- May 2017

    VAT Update in AP

    CA Ambati Chinna Gangaiah agcpower@icai.org, 08801032969

    High Court

    • 1. Transocean Offshore – WP 44908/16 dt 6.4.17 “………..47. As pointed out by the Supreme Court in State of A.P. v. Rashtriya Ispat Nigam Ltd.1, hire charges are taxable only when full possession and control is given to the hirer. If the owner retains effective control over the equipment, it is not transfer of the right to use………”
    • 2. Tirupati Fuels wp 11082/17 dt 6.4.17 – “………..All that was required of the petitioner was to produce proof to show eligibility for input tax credit. If this proof had been produced there would have been no difficulty, in arriving at the final figure without disturbing the figures already recorded. Therefore, we are of the considered view that the petitioner deserves one opportunity only for the purpose of producing evidence……………”
    Commissioner’s Circulars
    • 1. CCT’s Ref.No.CCW /CS(1)/128/2015, dt.27.03.17 - instructions in modification of procedure for Post registration advisory visits
    • 2. CCT’s Ref.No.CCW /CS (1)/128/2015, dt.10.04.2017 - instructions issued and communicated for discontinued of using physical waybills-
    • 3. CCT's Ref No.BII(1)/141/2017 DT: 11.04.2017Audits and Assessments - Rule 59 of APVAT Rules 2005 –Procedures to be followed

    Allahabad
    G.D. Goenka WRIT TAX No.- 146 of 2013 dt 9.12.16 99 VST 188 - grant of non-exclusive licence to Franchisee for use of Brand name of petitioner under the agreement for consideration is exigible to tax under VAT Act, 2008 and judgments in Bharat Sanchar Nigam Ltd. and another (supra) and State of A.P. Vs. Rashtriya Ispat Nigam Ltd. (supra) are neither applicable to the facts of present case nor lay down a different law.

    Punjab and Haryana
    Indo Arya Central Transport 98 VST 21 - Vehicle running upon fixed rails –Excluded from definition of “goods vehicle”-Goods transported in such vehicle –Cannot be detained


    Professional Updates- April 2017

    AP VAT

    Supreme Court

      • Ayyasamy vs. A. Paramasivam AC 8245-8246/16 dt 4.10.16 (2016) 10 SCC 386 – 10. 'Fraud' is a knowing misrepresentation of the truth or concealment of a material fact to induce another to act to his detriment. Fraud can be of different forms and hues. Its ingredients are an intention to deceive, use of unfair means, deliberate concealment of material facts, or abuse of position of confidence. ………. (Ramesh Kumar & Anr. v. Furu Ram & Anr., (2011) 8 SCC 613.)
      • Syscon Consultants AC 2910/13 dt 19.9.16 (2016) 10 SCC 353-Once, it is found that justice of the case on facts does not require interference, this Court, even at the appellate stage, is well within its discretion to stay its hands off, as held in Taherakhatoon (D) by Lrs. v. Salambin Mohammad (1999) 2 SCC 635
      • Imax Corporation AC 34009/13 dt 10.3.17 – (Cause of action in India and Arbitration in London) – High Court committed an error in observing that the seat of arbitration itself is not a decisive factor to exclude Part-I of the Arbitration Act.

    High Court

      • Venkateswara Electrical and General Stores WP.24957/16 dt.18-08-16 - the petitioner admitted non-disclosure of the turnover, and accepted their liability to pay tax thereon….. there is no justification in denying them the benefit of input tax credit for the corresponding purchases made by them.
      • Sri Asta Lakshmi Rice Mill WP 38708/15 dt 30.11.15 – (purchase tax on paddy proportionate to production of husk) purchase tax levied, under Section 4(4), on paddy should be deducted from the tax levied on the sale of rice, as both paddy and rice are declared goods U/s 14 of the CST Act.

    STAT

    Sri Raghavendra Enterprises – TA 255-56/11 dt 22.2.17 It is settled law that burden in revision lies on the revisional authority.

    Commissioner’s Circulars

    Ref.No.CCW/CS(1)/128/2015, dt.17.03.17–instructions issued Registrations in all acts.

    Allahabad

    Kalpataru Agro Forest Enterprises - Trade tax Revision No. 52 of 2016, dt 4-7-16 - 2016 NTN (Vol 61) 143 (All) - Purchase of the bamboo and wood and subjecting it to process of debarking, cutting and removing roots does not bring new commercial commodity as after the process it remains bamboo and wood as such it does not amount to manufacture


    Professional Updates- March 2017

    Supreme Court
    • PATEL BROTHERS AC 49-50/2017 dt 4.1.17 -What, therefore, follows is that the court cannot interpret the law in such a manner so as to read into the Act an inherent power of condoning the delay by invoking Section 5 of the Limitation Act, 1963 so as to supplement the provisions of the VAT Act which excludes the operation of Section 5 by necessary implications
    • Advance Gases & Consultants AC 1337/10, dt 16-3-16 (2016) 54 PHT 177 (SC) - The process of cleaning and testing of cylinder cannot be seen as independent of the sale transaction. Therefore, service charges collected for cleaning and testing cylinders shall form part of sale price and turnover for sale of oxygen for levy of tax.
    High Court
    Digital Factor – WP 15984/16 dt 24.6.16 (63APSTJ1) - presumption contained in Section 47 of the AP VAT Act, 2005 is rebuttable presumption and the assesse can rebut the presumption that the goods has crossed the border check post of the state and not intended for sale in the State by producing evidence

    STAT
    Fresco Juices – TA No.60/2016 dt 25.10.16 - In the present case the vehicle which was checked at the check-post is the same number mentioned in the e-way bill. Hence the authorities are not right in imposing penalty (Section 10A of CST Act was brought to the notice of Tribunal)

    Commissioner’s Clarifications
    CCT’s Ref No.Enft /E3/6/2017 dt 31-01-17 – clarification on the procedure of eTranshipment Goods coming from outside the state through Railways- transhipped in Trucks to other states

    DC orders
    AP Paper Mills - R. F. No.6/2015-16 dt 3.2.17 (DC 726) – scrap of sales forest wood brought to tax – (forest wood scrap fit to be firewood and exempted – not put in reply show cause notice)

    Patna High Court
    Mappra Laboratories WP 18626/14 dt 4th May, 2015, (2016) 24 KTR 358 (Patna)] - State Legislature not being competent to provide for levy of tax on the first point of sale on the basis of MRP or any other notional value, there could be no question of the legislature providing for the same even by way of exercise of option by the dealer concerned. The matter goes to the root of the competence of the State Legislature under the Constitution to frame any such enactment and if it is not competent to enact such a measure then it is equally not competent to do the same by way of providing option for levy of tax upon the dealer in such matter.

    Jharkhand HC
    Express Infratech WP 2852 / 2014 dt 3.5.2016 (2016) 55 STJ 501 (Jhar) - There is no loss of revenue to the State of Jharkhand even if this amendment is carried out with retrospective effect. The goods, which are purchased from 8 different States like West Bengal & Maharshtra etc. and which has been given validated date as 04.02.2011 by this registered dealer having certificate of registration, which includes the aforesaid capital goods. In that eventuality this petitioner will have to pay Central Sales Tax @ 2%