News Update

BrahMos successfully test-fired from Balasore Test RangeIndia-Oman Joint Commission Meeting begins in MuscatHi-tech maritime labs launching programmes for traineesChina's GDP logs 6.8% growth in first half of fiscal20 hurt in pandal collapse during PM's Midnapore political rallyExports - Accountability of inputs - DGFT eases norms for Advance Authorisation holdersCustoms - CBIC expands list of exempt items for handicraft sectorI-T - Even if soil separated from land and put in containers it continues to be specie of land and income from growing mushrooms in such containers under controlled environment is agri income exempt u/s 10(1): ITAT Special BenchWTO - Govt officials attend workshop on SPS control, Inspection & approval proceduresI-T - Surplus generated by agriculturist on sale of his agri land is no basis to deny exemption u/s 2(14) and treat sale consideration as business income: HCSecond Year of GST - A year to amend mistakesCX - Affirming order passed by lower authorities without recording its own detailed findings does not render such findings as perverse on its own: High CourtCommittee set up to examine 'decriminalisation' of offences under Companies ActAmritsar Customs detects heroin worth Rs 3.75 Cr during rummaging of empty wagons coming from Pakistan + seizes gold worth Rs 38 lakhs at AirportEmerging Asia to grow by 6.6% in 2018; e-commerce a key growth driverFinance Commission team to visit West Bengal from July 16 to 18India to surpass USD 10 trillion-threshold to become third largest economy: DEA Secretarye-Way Bill - West Bengal exempts job work consignment from inter-state compliance formalityCost Accountants are good managers of 3 Ms: President KovindGovt not in favour of closure of Dredging Corp: GadkariTaxing non-resident doing business without PE - CBDT invites suggestions for fixing revenue thresholdMumbai to host WCO Policy Commission meet on Dec 3Exports does well in June but trade imbalance becomes grimmerIndia to be one of top 3 pharma markets by 2020: PrabhuCBIC issues charge allocation order for Members; New Member R K Barthwal gets Administrative charge; Zonal charge also rotatedTo follow or not, the CBIC Circular, is the questionSC lambasts Govt move to set up social media hub to monitor online data
ST - Omission of Entry 92C from Union List - SCN demanding Service Tax after enactment of CGST Act, 2017 is prima facie without jurisdiction: HC

By TIOL News Service

GUWAHATI, DEC 19, 2017: THIS Writ Petition has been filed challenging the SCN dated 23.10.2017 issued by the respondent Assistant Commissioner of GST & Central Excise, Guwahati on the ground that after the enactment of the Central Goods and Services Tax Act, 2017 as well as the omission of Entry 92C from List-I of the Seventh Schedule of the Constitution, the respondent does not have any jurisdiction to enter into an enquiry in respect of the subject matter of the notice and as such the impugned SCN was wholly without jurisdiction. It is prayed that an order be passed suspending further proceeding pursuant to the SCN dated 23.10.2017.

The Central Government counsel submitted that he be granted some time to obtain instructions in the matter.

The High Court observed –

"Having regard to the pleadings in the Writ Petition, this Court is of the prima facie opinion that the impugned notice dated 23.10.2017 is without jurisdiction. In view of the above, further proceeding under the impugned notice is hereby stayed until the returnable date."

The Court directed issue of notice of motion returnable on 05.02.2018.

In passing:

Entry 92C of the Union listwas omitted by the the Constitution (One Hundred and First Amendment) Act, 2016, w.e.f.  16.9.2016.

Before, it read as - "92C. Taxes on services."

The Law:

Incidentally, in our DDT column we had carried an interesting and exhaustive analysis on the subject "What is the constitutional authority for levy of Service Tax?" and by citing the Supreme Court decision in  2010-TIOL-87-SC-ST-LB   concluded - Service Tax is levied under the residual entry 97 of the Seventh Schedule to the Constitution and not under entry 92C, as strongly believed by many.

(See 2017-TIOL-2603-HC-GUW-ST)

Sub: levy of Service tax

it is a fact that though entry 92C was entered in to seventh schedule but same was never notified and thus had no effect. in several case it has been held by apex court that service tax was levied under entry 97 and not under 92C.

Posted by Satya Narain

TIOL Tube Latest

GST 1st Anniversary - A Hardlook (Episode 2) | simply inTAXicating

What's New

CGST Notification
CGST Rate Notification
CGST Circular
Income Tax Notification
Income Tax Circular
Customs Tariff Notification
Customs NT Notification
Customs Circular
Anti Dumping Notification
DGFT Notification
DGFT Public Notice
DGFT Circular
RBI Circular