HIGH COURT CASES
2019-TIOL-2384-HC-AHM-GST
Kanal Enterprise Vs State Of Gujarat
GST - Petitioner challenges the order of blocking the tax credit - petitioner submits that there is no provision under the State Goods and Services Tax Act or Central Goods and Services Tax Act which empowers the respondent officers to block the input tax credit of a supplier; that the order of provisional attachment of property under section 83 of the CGST Act as well as the order of provisional attachment of stock of the petitioner have been passed in relation to the proceedings launched under section 71(1) of the said Acts; that the same can be invoked during the pendency of proceedings under sections 62, 63, 64, 67, 73 or 74 of the said Act, however, there is no power vested in the respondents to invoke the provisions of section 83 in the proceedings launched under section 71(1) of the said Act; therefore, the provisional attachment of the bank account as well as the stock of the petitioner is without authority of law; that since the assessment order has been framed on 16.09.2019, the attachment u/s 83 of the Act would no longer survive.
Held: By way of ad-interim relief, the respondents are directed to forthwith release the attachment of the bank account of the petitioner maintained with the ICICI Bank, Rajkot made vide order dated 20.07.2019 and unblock the credit of the petitioner of Rs.24,30,850/- available in the electronic credit ledger - to issue Notice, returnable on 17th October 2019: High Court
- Interim relief granted: GUJARAT HIGH COURT
2019-TIOL-2383-HC-AHM-GST
Bharatbhai Manilal Patel Vs State Of Gujarat
GST - Petition filed against order of provisional attachment of property under section 83 of the Act and it is pointed out that the same do not refer to the proceedings which have been launched against the petitioner; that s.83 can be invoked during the pendency of any proceedings under sections 62, 63, 64, 67, 73 or 74 of the said Act, however, in the present case, the impugned order of provisional attachment is totally silent as regards the section under which the proceedings have been launched and, therefore, the attachment of the bank account of the petitioner by the respondent is without any authority of law; that, without any assessed liability, the respondent has resorted to attachment of the goods of the petitioner under section 79 of the CGST Act, which is also without authority of law.
Held: By way of ad-interim relief, the respondent No. 2 is directed to forthwith release the provisional attachment of the bank account of the petitioner maintained with the Axis Bank Limited, Kalol - to issue Notice, returnable on 16th October 2019: High Court [para 4]
- Interim relief granted: GUJARAT HIGH COURT
2019-TIOL-2382-HC-AHM-GST
Panchhi Traders Vs State Of Gujarat
GST - Person-in-charge of the conveyance had produced the e-way bill as well as the invoice and, therefore, the only ground on which the conveyance could have been detained was in case any discrepancies were found in the inspection of the goods and conveyance - However, in the facts of the present case after detaining the vehicle, no physical verification report has been submitted by the officer concerned and uploaded in the common portal, though required in accordance with the instructions issued by the Board [ Circular No. 41/15/2018-GST dated 13.4.2018 ] - Under the circumstances, the order of detention under section 129 of the CGST Act, prima facie , is not sustainable - By way of interim relief, the respondents are directed to forthwith release the conveyance in question together with the goods contained therein - to issue rule, returnable on 24.10.2019: High Court [para 4, 5]
- Interim relief granted: GUJARAT HIGH COURT
AAR CASES
2019-TIOL-334-AAR-GST
Volvo-Eicher Commercial Vehicles Ltd
GST - The applicant company is a joint venture between the Volvo Group and Eicher Motors Limited - It is in the business of selling Volvo branded trucks and providing after sale support services, including warranty services for Volvo branded trucks and buses in India - The applicant approached the AAR seeking to know whether the supplies made by it to Volvo Sweden is supply of services - It also sought to know whether the supplies made by the applicant amount to export of services to Volvo Sweden and hence zero rated under the GST law.
Held - The applicant is providing composite supply of goods and services to the customers wherein the principal supply is that of goods or services depending on the nature of each case - Besides, the transaction is an intra-State or inter-State transaction (but not export transaction) depending on the place of supply - Also, since the transaction is not export of services, the transaction is not a zero-rated supply under the IGST Act: AAR
- Application disposed of: AAR
2019-TIOL-333-AAR-GST
Vishal Infrastructure Ltd
GST - The applicant-company is engaged in works contract relating to execution of large scale infrastructure projects such as airports, defence industrial/technical buildings, hospitals, housing, steel structural, highways and bridges - The applicant approached the AAR seeking to know that applicable rate of tax on work alloted by the Airport Authority of India: i) development of airport by construction of Runway, Taxi track, Apron, Isolation bay, Perimeter Raod including earth work and other allied works; and ii) upgradation of airport to make it suitable for operation of any type of aircraft by extension of Runway, construction of new Apron, taxi track, Isolation Bay including Link Taxi, GSE area, Perimeter road and allied works.
Held - The rate of tax applicable to the composite supply of works contract as per Section 2(119) of the CGST Act undertaken by the applicant is taxable at 9% under CGST act and 9% under the KGST Act or at 18% under the IGST Act - The amendments to the Notfn No 11/2017-CT(R) has no effect on the taxability of transactions of the applicant as such transactions are covered under item No (ii) of Sr No 3 of the Notfn No 11/2017-CT(R) dated 28.06.2017 and are not covered under Sr No 3(iv) of such Notfn: AAR
Application disposed of: AAR
2019-TIOL-332-AAR-GST
VK Building Service Pvt Ltd
GST - Services provided by M/s Gowri Infra Engineers P Ltd. to Bangalore Development Authority (a government authority) in relation to construction of housing complexes is covered under clause (a) of entry no. 3(vi) of 11/2017-CTR - main contractor is providing services specified in item (vi) of 11/2017-CTR and hence the sub-contract work of Works Contract provided by applicant as a sub-contractor to the main contractor is covered under item (ix) of entry 3 of said notification as amended by 1/2018-CTR and is taxable @6% CGST w.e.f 25.01.2018; prior period taxable @9% CGST: AAR
- Application disposed of: AAR
2019-TIOL-331-AAR-GST
Surfa Coats India Pvt Ltd
GST - The applicant-company is engaged in the business of manufacturing decorative paints meant for interiors as well as exterior surfaces - The applicant approached the AAR seeking to know if it is eligible to claim GST Input Tax Credit on the items purchased for furtherance of business.
Held - The applicant is not eligible to avail ITC on the inward supplies of goods and services which are attributable to the incentives provided in the form of gifts of goods and services to the painters and dealers and other persons, under the CGST, SGST or IGST Acts: AAR
- Application disposed of: AAR
2019-TIOL-330-AAR-GST
Sukee Printpack LLP
GST - The applicant is involved in printing and supply of paper and paper boards and is also involved in printing under job work - The applicant approached the AAR seeking to know whether the activities carried out by it fall under supply of goods or supply of services - It also sought to know the applicable rate of tax under each category.
Held - In case the applicant supplies paper and paper board printed with content supplied by the recipient of the goods made using physical inputs including paper belonging to the recipient and - a) of the final printed material is a book, journal or periodical and if the material on which the printing is done is provided by the customers, then the activity is covered under Entry 26(i)(d) of Notfn No 11/2017-CT(R) dated 28.06.2017 and would attract 2.5% CGST and 2.5% SGST - b) If the final printed material is a book, journal or periodical but involves job work of printing of all goods falling under Chapter 48 or 49 attracting GST at 6% then the activity would be covered under Entry No 26(ia)(b) of Notfn No 11/2017-CT(R) dated 28.06.2017 and would attract 6% CGST and 6% SGST - c) If the job work of printing made on materials belonging to other is not covered by these two items, then the same is covered under Entry No 26(iii) of Notfn No 11/2017-CT(R) and is taxable at 9% CGST plus 9% SGST - In case where the paper and paper board along with content supplied by the recipient of the goods and the applicant prints content on the paper and paper board supplied by the recipient of the goods by using the physical inputs belonging to the printer, then - a) if the supply of services relates to printing newspapers, books, journals and periodicals and Braille books, then such supplies are taxable under Entry No 27(i) of Notfn No 11/2017-CT(R) and are taxable at 6% CGST plus 6% SGST - b) If the supply of services is related to printing of such items, then such supplies are taxable under Entry No 27(ii) of Notfn No 11/2017-CT(R) dated 28.06.2017 and attracts 9% CGST plus 9% SGST: AAR
- Application disposed of: AAR
2019-TIOL-329-AAR-GST
SRK Ladders
GST - The applicant is a proprietary concern engaged in manufacture of Aluminum Tree Climbing Apparatus such as Unipole Aluminum Ladders - The applicant claimed that such equipment is used in agricultural activities like tree climbing for spraying pesticide, harvesting crops of Areca, Pepper, Coconut and are also used in cultivating, protecting and harvesting activities - The applicant approached the AAR seeking to know the classification of the item Agriculture Tree Climbing Apparatus - Unipole Manually operated.
Held - The item Agriculture Tree Climbing Apparatus - Unipole Manually operated is covered under Tariff Heading 8201 and is covered under Entry No 137 of Notification No 12/2017-CT(R) dated 28.06.2017 and hence is exempted: AAR
- Application disposed of: AAR
2019-TIOL-328-AAR-GST
Shree Rajarajeshwari And Company
GST - The applicant is a proprietory concern registered under the GST Act 2017 - It supplied debarked Eucalyptus, Acacia, Subabul, Casurina, Pine Pulpwood in billets, to paper mills - It approached the AAR seeking to know the classification of pulpwood supplied to paper mills as well as the applicable rate of GST thereon.
Held - The applicant is liable to pay CGST and SGST at 9% each on supply of Debarked Eucalyptus, Acacia, Subabul, Casurina, Pine Pulpwood in billets of required size to paper mills vide HSN code 4403: AAR
- Application disposed of: AAR
2019-TIOL-327-AAR-GST
Office Official Liquidator
GST - The applicant is an official liquidator of M/s Kingfisher Airlines Ltd. and is registered under the GST Act - The Applicant being the official liquidator sold the aircraft Corporate Jet Airbus A-319-133 CIVT-VJM MSN 8560 to the successful bidder through global e-auction - The applicant approached the AAR seeking to know whether sale of aircraft by the official liquidator to a buyer located outside India qualifies as an export of goods so as to be eligible for benefit of zero rated supply as per Section 16 of the IGST Act - This is considering that the invoice for sale is raised on a buyer located outside India and that it is reasonably certain that the aircraft would be taken outside India post repair - Also, if the place of supply is not outside and this sale of aircraft does not qualify as export of goods, then what would be the place of supply - It also sought to know that since the aircraft was imported for operation as Non-scheduled air transport (passenger) services, could it be treated as aircraft falling under tariff item 8802 as aircraft other than for personal use - It was also stated that since the buyer is a legal entity in the USA and would use the aircraft for commercial purpose, then what would be the correct GST rate - Also as the sale is a subsequent sale, would GST compensation cess be levied on such sale - The applicant also sought to know if a buyer could claim refund of GST and compensation cess paid, since the transaction is eligible for benefit of zero rating.
Held - The applicant sought permission to withdraw the application filed for advance ruling, on grounds that the questions raised were based on place of supply and also sale and shipment of the aircraft has already been completed - Hence the application is dismissed as withdrawn: AAR
- Application disposed of: AAR
2019-TIOL-326-AAR-GST
Morigeri Traders
GST - The applicant-company is engaged in supplying dry chillies on behalf of farmers to the traders in the Byadgi APMC Market, Karnataka, as commission agents - The applicant sells goods on behalf of farmers to traders, issues invoices to the buyers and also issues sale patties to the farmers - The applicant collects commission on the services provided to the farmers from the buyers and the same is also shown in the invoice issued to the buyers - The applicant approached the AAR seeking to know whether it is required to seek registration under the GST Act - If so, the applicant sought to know under which section would commission agents be registered - It also sought to know if Notfn No 12/2017-CT(R) dated 28.06.2017 and Notfn No 09/2017-IT(R) dated 28.06.2017 issued u/s 11 of the CGST Act would be applicable to commission agents of APMC - If not, then on whom are these notifications applicable and under what circumstances - It also sought to know if Dry Chilly classifies as agricultural produce - If not, then what kind of produce is it and would be the HSN code of and the applicable rate of GST on Dry Chilly.
Held - The applicant, being a commission agent, is required to be registered u/s 22(1) of the CGST Act and it qualifies as an agent as per Para 3 of Schedule I to the CGST Act - Besides, the services provided by the applicant to the principal are covered under the services provided by a commission agent for sale or purchase of agricultural produce , which is exempted under Entry No 54(g) of the Notfn No 12/2017-CT(R) dated 28.06.2017 - Hence this notification is applicable to the applicant, being the commission agent of APMC, Karnataka - However, the supply of Dry Chillies to the traders under the invoice of the applicant is taxable - Dry chillies are covered under the definition of agricultural produce as per Para 2(d) of the Notification No 12/2017-CT(R): AAR
- Application disposed of: AAR
2019-TIOL-325-AAR-GST
Manipal Technologies Ltd
GST - The applicant-company is part of a group of companies engaged in providing services in the field of media, printing, publishing, financial services and information technology - The applicant is engaged in supplying services of printing books, magazines, bank passbooks, bank account opening forms and various other stationery items required by the banking industry, educational institutions and by various other customers - The applicant approached the AAR seeking to know whether Pattadar Passbook cum Title Deed document classifies as a Document of Title so as to classify under HSN 4907 or as a passbook under HSN 4820.
Held - Considering the relevant provisions in the Telangana State Rights in Land Pattadar Passbooks Act 1971, it is held that the Pattadar Passbook cum Title Deed is appropriately classifiable under HSN 4820: AAR
- Application disposed of: AAR
2019-TIOL-324-AAR-GST
Karnataka Co-Operative Milk Producers Federation Ltd
GST - The applicant is a society engaged in processing of Milk and Milk products - The district cooperative unions are shareholders of the organizations registered under the CGST Act - The applicant approached the AAR seeking to know if it is liable to deduct GST TDS u/s 51 of the CGST Act on payments made to suppliers.
Held - The applicant is not liable to deduct tax at source as per Section 51 of the CGST Act towards payments made to suppliers of taxable goods or services or both, as they are not covered under any of the clauses of Section 51(1) of the CGST or the Karnataka GST Act 2017: AAR
- Application disposed of: AAR
2019-TIOL-323-AAR-GST
Carnation Hotels Pvt Ltd
GST - The applicant-company proposes to operate hotels and rent out rooms to employees of SEZ units - The services rendered by the hotels are entirely consumed at the premises itself - The applicant approached the AAR, seeking to know whether accomodation service proposed to be rendered by the applicant to the SEZ unit would attract CGST, SGST or IGST - The applicant also sought to know that in case, accomodation service to SEZ is covered under the IGST Act, can these be treated as zero-rated supplies and invoice be raised without charging tax after executing LUT u/s 16.
Held - The accomodation service proposed to be rendered by the applicant to the SEZ units are covered under the IGST Act, as it is an inter-State supply as per Section 7(5)(b) of the IGST Act - Moreover, since the accomodation service supplied to an SEZ is covered under the IGST Act, the same can be treated as zero-rated supply and the invoice can be raised without charging tax after executing LUT u/s 16: AAR
- Application disposed of: AAR
2019-TIOL-322-AAR-GST
Banyan Tree Advisors Pvt Ltd
GST - The applicant company is engaged in providing portfolio management services and portfolio advisory services, as per SEBI regulations - It approached the AAR seeking to know whether the applicant needs to charge GST on such service provided to non-resident client, where the client pays fee in foreign currency from their overseas account to the account of the portfolio manager.
Held - The question raised by the applicant does not fall under any of the categories of Section 97(2) of the CGST Act - Admittedly, the question raised by the applicant does not pertain to place of supply and so is not a matter on which the AAR is empowered to give a ruling - Hence the application is liable to be dismissed: AAR
- Application dismissed: AAR
2019-TIOL-321-AAR-GST
Ansys Software Pvt Ltd
GST - The applicant-company approached the AAR seeking to know whether marketing and pre-sales technical support services provided by it, would classify as Intermediary services u/s 2(13) of the IGST Act - It also sought to know if post-sales technical services provided by it would classify as Information Technology Support Service falling under HSN Code 998313.
Held - The marketing and pre-sales technical support services provided by the applicant would be classified as Intermediary services u/s 2(13) of the IGST Act - Besides, the post-sales Technical Support Services provided by the applicant are classified as Information Technology Support Services falling under HSN Code 998313: AAR
- Application disposed of: AAR
2019-TIOL-320-AAR-GST
Shri Keshav Cement And Infra Ltd
GST - Goods, value of which has been capitalised in the books of account would not be considered as inputs and applicant will not be entitled to avail credit of input tax in relation to such goods - only those apparatus, equipment and machinery which are fixed to earth by foundation or structural support alone are entitled to qualify as plant and machinery - in respect of other goods, provisions of s.17(5)(c) shall apply and credit of input tax shall not be available - applicant is entitled to eligible input credit in entirety provided the entire production is captivity consumed - applicant is required to reverse ITC on the unutilized electric energy banked with KPTCL, GESCOM & HESCOM and for which the applicant receives a consideration in terms of the wheeling and banking agreement: AAR
- Application disposed of: AAR
2019-TIOL-319-AAR-GST
Infinera India Pvt Ltd
GST - Applicant is a 100% EOU under the STPI scheme and has sought a ruling as to whether the activities carried out in India by applicant viz. conducting marketing research in order to keep Infinera USA advised and informed regarding all matters in India, which may be of reasonable business interest or concern to India and following up with customer leads provided by Infinera USA would render the applicant to qualify as an 'intermediary' and consequently be subject to levy of GST.
Held: Activities carried out in India by the applicant insofar as those activities mentioned in the 'pre-sale and marketing services agreement' would render the applicant to qualify as an 'intermediary' as defined u/s 2(13) of the IGST Act and consequently be subject to levy of GST - in the instant case, the applicant has a direct contact with customers in India forming a triumvirate, an essential feature of an intermediary services - GoDaddy India case distinguished: AAR
Application disposed of: AAR
2019-TIOL-318-AAR-GST
Elior India Catering Llp
GST - Supply of food or any drink provided by applicant under cash and carry model wherein the items are prepared in the same premises from where it is supplied is covered as ‘services provided by canteen' under entry no. 7(i) of 11/2017-CTR - rate of tax is @5% GST subject to the condition that credit of input tax charged on goods and services used in supplying the service has not been taken - no condition as to the ownership of the premises in the main entry of notification - supply of services is happening in the premises of CISCO and the goods are prepared in the same premises and the service are provided there itself, hence it qualifies as an eating joint (including mess, canteen) where the service is supplied - since the supply is neither event based nor occasional in nature, the same does not get covered as 'Outdoor Catering services' under entry 7(v) of notification 11/2017-CTR - Explanation 1 against entry 7(i) does not limit the operation of the entry: AAR
- Application disposed of: AAR
2019-TIOL-317-AAR-GST
Gowri Infra Engineers Pvt Ltd
GST - Services provided by applicant to the Bangalore Development Authority (a government entity) in relation to the construction of housing complexes is a Works Contract Service u/s 2(119) of the CGST Act and covered under Entry no. 3(vi)(a) of 11/2017-CTR and liable to tax @12% GST: AAR
- Application disposed of: AAR
2019-TIOL-316-AAR-GST
Hical Technologies Pvt Ltd
GST - Applicant proposed to undertake job work activity for M/s Woodward India Pvt. Ltd. based on purchase orders and the job work involves assembly, integration and testing of converters and seeks a ruling as to whether the value of free of cost supplies by principal is includible in the value of supply by the job worker.
Held: Nature of supply is one composite supply consisting of two supplies - one relating to the manufacturing service on the physical inputs (goods) owned by others (SAC 9988) and the other relating to supply of non-critical components, with the former being the principal supply - Entire transaction is, therefore, required to be treated as supply of manufacturing service on physical inputs (goods) owned by others (SAC 9988) and is taxable at the rate applicable to the same @18% - Value of goods provided by WIPL would not form the part of the value of the supply and must be excluded while valuing the supply: AAR
- Application disposed of: AAR
