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Aadhaar & GST glitches should trigger IT Infrastructure Protection ReviewSilvassa tops List of winner Smart CitiesMinister launches Cyber Surakshit Bharat to strengthen CybersecurityIndia welcomes IMF-WB Report on improving banking supervision by RBI100 accessible websites of various State Govts launchedJaitley launches National CSR Data Portal & Corporate Data PortalGovt appoints Amardeep Singh Bhatia as Director of Serious Fraud Office till March, 2020Turmoil in AAP - Election Commission favours disqualification of 20 MLAs for holding office of profitMauritius continues to be key source of FDI in India; followed by USA & UK: RBII-T - Discretionary waiver of interest charged u/s 234A to 234C by Settlement Commission, will not negate corresponding right for refund of interest to assessee: SCIntl Customs Day: 20 persons, including 17 officers, to get WCO Certificate of MeritGST - Coffee beans processing units in trouble; seek exemptionGST Council also approves several amendments in CGST RulesGST Council grants mega relief to healthcare services & clarifies rates for many ServicesCX - Claim of assessee that as soon as they paid tax, same became credit in their account is misplaced - Law as it existed at time of taking credit would be applicable: CESTATI-T - Finance cost incurred on overdraft obtained from bank, which is advanced to sister concern for no business purpose, is not allowable business loss: ITATCX - If insurance cover in respect of which credit has been claimed is exclusively in respect of injuries or damages to factory employee, then credit would be admissible: CESTATSteering clear of Anti - Profiteering chargesIssues affecting Credit Card Industry Budget 2018 should provide solutionsGovt amends Passport Rules to substitute certain documents to be attached under Tatkal & non-Tatkal schemesGST Council extends last date for migrated taxpayers to surrender registration upto March 31, 2018 + reduces penalty for late filing of GSTRs + decides to amend e-Way Bill rulesGST Council reduces tax rate from 28% to 18% on used motor vehicles + from 18% to 12% on sugar boiled confectionary, drinking water packed in 20 litre bottles, bio-diesel and bio-pesticides + from 18% to 5% on components required for satellite launch + LPG supplied for domestic consumption + from 12% to 5% on velvet fabric + from 3% to 0.25% on diamonds & precious stonesGST Council decides to exempt RTI-related services + reduces rate on construction of metro projects to 12% + 5% without ITC on housekeeping service through ECO + 5% rate on tailoring service + 18% rate now on entry ticket to water parks or theme parksGST Council shifts focus on anti-evasion measures; Tax rates reduced on 29 goods & 53 ServicesGST Council decides to divide Rs 35000 Crore IGST collections between Centre & States, provisionally17 lakh Composition taxpayers paid only about Rs 307 Crore; Council expresses disappointmentLegislative changes - Council receives demand to introduce Sec 9(4) only for Composition taxpayers
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