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2022-TIOL-NEWS-016 Part 2 | January 19, 2022
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Dear Member,
,Sending following links. Warm Regards,
TIOL Content Team
TIOL PRIVATE LIMITED.
For assistance please call us at + 91 7838594749 or email us at helpdesk@tiol.in. |
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TIOLAWARDS |
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WEBINAR |
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TODAY'S CASE (INDIRECT TAX) |
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GST CASE |
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2022-TIOL-79-HC-MAD-GST
Twin Disc Power Transmission Pvt Ltd Vs Deputy Commissioner (ST)
GST - The refund claims of petitioner were rejected on the ground that they had not satisfied the requirements of Section 2 (6)(V) of IGST Act, 2017 - Petitioner submits that in view of deficiency pointed out in earlier proceedings, they were unable to upload refund applications for period commencing from February 2019 to December 2019 and that the limitation for filing refund claim had expired under Section 54 of CGST Act, 2017 - Issue is settled in favour of petitioner in the light of decision of Bombay High Court in Lakshmi Organic Industries Limited wherein petitioner is permitted to file afresh the application for refund manually within a fortnight from date and on such receipt, Superintendent shall process the same and ensure that application is taken to its logical conclusion in accordance with law - Though the petitioner is asking for two alternate reliefs, respondent is directed to consider petitioner's representation without expressing any opinion on merits: HC
- Writ petition disposed of: MADRAS HIGH COURT
2022-TIOL-01-AAAR-GST
Adithya Automotive Applications Pvt Ltd
GST - Applicant had sought a ruling as to w hether the body building activity on the chassis provided by the principal would amount to manufacturing attracting 18% of GST or whether CBIC Circular No. 52/26/2018-GST dated 09.08.2018 [paragraph 12.3] clarifying that rate of GST is 18% since the supply is of “service” applies - AAR held that the dominant character of work relates to supply of goods rather than supply of service and the case of the applicant is not covered under paragraph 12.3 of Circular No. 52/26/2018-GST dated 09.08.2018; that all inputs required for fabrication of vehicle-body (Tippers, Trailers, Truck, Tankers) on chassis are procured by the applicant and fabricated vehicle-body mounted on the chassis is supplied by the applicant, that, therefore, it is a supply of body of the vehicle and the activity of fitting/mounting of vehicle-body on chassis is an ancillary activity to the principal activity of supply of vehicle-body and, therefore, in terms of the clarification issued by the CBEC vide circular No. 34/8/2018-GST , dated 01.03.2018 (Serial no.1), the impugned activity is a composite supply, with principal supply being supply of body of the vehicle and attracts GST @28% - Appeal filed against this ruling of AAR.
Held: It has been clarified in Circular No. 38/12/2018 Dated 26.03.2018 that the job worker, in addition to the goods received from the principal, can use his own goods for providing the services of job work - Insofar as transfer of ownership to the appellant, it is noticed that the chassis delivered to the Appellant remains in their temporary possession only for certain time to carry out the process of job work as per direction of the principal; that the Appellant has received the chassis only as a job worker and on free cost basis under the delivery Challan and, therefore, the ownership of the chassis always remains with the Principal i.e. M/s TATA Motors - Circular 52/26/2018-GST dated 09.08.2018 is squarely applicable in the case of the appellant in view of the clarification offered against sr. no. 12.3 - Moreover, as per notification 11/2017-CTR, Sr. no. 26 (ic) it is laid down that ‘services by way of job work in relation to bus body building' would be 18% - Held, therefore, that body building and mounting of body on the chassis of different models of Tippers, Tankers, Trucks and Trailers, on the chassis to be supplied by the Principal, on delivery challans, by collecting job work charges for such fabrication work is taxable @18%, in accordance with Circular No. 52/26/2018-GST dated 09.08.2018, subject to fulfillment of all the conditions prescribed in the Section 141 and 143 of the CGST Act, 2017 read with relevant Rules/Notifications - AAR order set aside and Appeal allowed: AAAR
- Appeal allowed: AAAR
2022-TIOL-19-AAR-GST
Bhopal Smart City Development Corporation Ltd
GST - It is clear that development of land is not akin to construction of a complex or building - The concept of obtaining a completion certificate is applicable to the construction of a complex or building and not to development of land, so far as GST is concerned - Sale of developed land by the applicant, as per the facts provided by him, where the development work is limited to providing common amenities (common drainage, water line, electricity line, land levelling, road and street light) and no development work will be done by the applicant after the sale of the developed land and if no advance from the customer for undertaking development activities is taken then it does not constitute a supply within the meaning of Section 7 of the GST Laws and, therefore, GST is not applicable on such sale: AAR
GST - There is no concept of obtaining completion certificate in case of development of land since development of land is not akin to construction of a building or a complex - Therefore, if development and sale of such developed land by a person is treated to be a taxable supply distinct from sale of land, then each subsequent sale of such parcel / plot of land would also become a taxable supply which makes the interpretation give an absurd result - Principles of interpretation of Statutes, Deeds and Documents refer to an Absurdity Limit, which states that a statute cannot be interpreted literally if it would lead to an absurd result: AAR
- Application disposed of: AAR
2022-TIOL-18-AAR-GST
Dadaji Hospitals Pvt Ltd
GST - Medicines, consumables, Surgical, etc. used in the course of providing health care services if it is provided to the patient admitted in the hospital for treatment, surgery or diagnosis would be considered as composite supply of healthcare services in terms of the Section 2(30) of CGST Act, 2017 if the amount of such medicines, consumables, Surgical, etc. is not segregable from the composite amount charged from the patient for treatment, surgery or diagnosis and is part of the package of the treatment and where principal supply is health care service by a clinical establishment - Exempt from tax as per Sl. No. 74 of Notification No. 12/2017-CT(Rate): AAR
GST - In case pharmacy located in the hospital premises is owned by a separate person then medicines/surgical/consumables supplied by such pharmacy to the in-patient for use in the course of health care service provided by the hospital cannot be termed as composite supply: AAR
GST - Supply of medicines, consumables etc. to the patients admitted in hospitals are exempted in Para 2 ( zg ) of Notification No. 12/2017-CTR only when it is a composite supply and fulfils the condition given in the said notification: AAR
- Application disposed of: AAR
2022-TIOL-17-AAR-GST
Gulab Singh Chauhan
GST - Preparation of Gutkha in the Pan Shop is akin to manufacture on account of the process of preparation being that of mixing of different bought out ingredients and the resultant product having a distinct name and use - Thus the preparation of Gutka at the Pan Shop for sale is covered in the Second Proviso of Notification No. 14/2019-CT - In the Table given in Notification No. 14/2019-CT both Pan Masala and goods covered under Chapter 24 are listed as goods for which composition “cannot” be obtained - Therefore, applicant is not entitled for the benefit of composition scheme u/s 10 of the Act, 2017: AAR
- Application disposed of: AAR |
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MISC CASE |
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2022-TIOL-80-HC-DEL-MISC
Delhi Cantonment Board Vs Ram Sharan
MISC - Service - The respondent joined the service with appellant as Junior Engineer - According to respondent his date of birth i.e., October 02, 1962, has been recorded in all the documents - The defendant published the seniority list for some of its employees / office bearers and invited objections concerning the same if any - In respect of respondent, as stated by appellant, date of birth reflected in said seniority list was October 02, 1960 - It is a case where respondent for the first time on July 31, 2013, submitted a letter to appellant alleging erroneous entry of date of birth of respondent in the Service Book as October 02, 1960, instead of October 02, 1962 - Thereafter, appellant after conducting necessary procedure responded to respondent stating the appointing authority's inability to correct alleged error of date of birth - The issue arises for consideration is whether the Trial Court is justified in decreeing the suit filed by respondent granting relief in his favour by declaring his date of birth as October 02, 1962 - Trial Court did not accept the version of appellant stating that the seniority list issued in year 2003 and 2010 respectively, wherein, the date of birth of respondent was shown as October 02, 1960, by holding that the respondent was not in knowledge of said seniority lists and hence, could not have challenged the depiction of his date of birth as October 02, 1960 - It is not a case where the certificates issued by CBSE submitted by respondent for his appointment depict the date of birth of respondent No.1 / plaintiff as October 02, 1960 - The initial document as recognised under the rules evidencing the date of birth of respondent itself depicts his date of birth as October 02, 1962 - It is not a case where there is an issue / dispute as to which date of birth is the correct one - The Trial Court rejected the plea of limitation - The court concur with the view taken by Trial Court because the finding of Trial Court was that before 2013, respondent was not in the knowledge of his date of birth being shown as October 02, 1960 - In the absence of any knowledge, there was no occasion for respondent to make a representation - It was the case of respondent that he had come to know about incorrect depiction of his date of birth as October 02, 1960, in July 2013, when he received the payslip in which his date of birth was incorrectly shown - He made a representation on July 31, 2013, which was rejected by appellant on November 03, 2014, and has filed the suit for declaration within three years in terms of Article 58 of the Limitation Act, 1963 - The Trial Court has rightly accepted the date of birth as October 02, 1962, which is in conformity with certificate issued by CBSE, attestation form and other documents relied upon by respondent in support of his case - In so far as the compensation of Rs. 1,00,000/- granted by Trial Court in favour of respondent is concerned, the basis for Trial Court to grant damages is primarily for the reason that the respondent was put to undue harassment by appellant inasmuch as the appellant took 460 days to decide the representation of respondent - The Trial Court has highlighted the facts which weighed with it for awarding damages - Hence, the challenge, insofar as grant of damages by Trial Court in favour of respondent cannot be faulted - No merit found in the appeal, same is dismissed: HC
- Application dismissed: DELHI HIGH COURT
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