CIRCULAR

106/2019

Refund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange

NOTIFICATIONS

01/2019

Exempts any supply of goods by a retail outlet established in the departure area of an international airport, beyond the immigration counters, to an outgoing international tourist.

11/2019

Seeks to specifies retail outlets established in the departure area of an international airport, beyond the immigrationcounters, making tax free supply of goods to an outgoing international tourist, as class of persons who shall be entitled to claim refund.

11/2019

Seeks to specifies retail outlets established in the departure area of an international airport, beyond the immigrationcounters, making tax free supply of goods to an outgoing international tourist, as class of persons who shall be entitled to claim refund.

11/2019

Seeks to exempts any supply of goods by a retail outlet established in the departure area of an international airport, beyond the immigration counters, to an outgoing international tourist.

10/2019

Seeks to specifies retail outlets established in the departure area of an international airport, beyond the immigrationcounters, making tax free supply of goods to an outgoing international tourist, as class of persons who shall be entitled to claim refund.

CASE LAWS

2019-TIOL-1366-HC-AHM-GST

Jai Jawan Jai Kisan Suppliers Vs State of Gujarat

GST - Writ applicant, a registered dealer, is engaged in the business of betel nuts and is operating from the State of Tamil Nadu - It appears that the consignment of betel nuts was being transported from Vellore to Delhi and while the goods were in transit and passing through the State of Gujarat, the vehicle was intercepted by the officers of the GST and the same came to be detained on the ground that E-Way Bill was not produced when demanded - In such circumstances, the vehicle along with the goods came to be seized - immediately the writ-applicant preferred a representation dated 22nd April 2019 addressed to the State Tax Officer (2), Mobile Squad, Division-1, Ahmedabad, stating that the writ-applicant is ready and willing to deposit the requisite amount without prejudice to his rights and contentions, and on deposit of such amount, the vehicle along with the goods may be released - writ applicant deposited an amount of Rs.1,85,500/-, however, according to the authorities, the amount due and payable is Rs.3,93,750/- - applicant is before the High Court.

Held: There are many larger issues involved in this petition, more particularly, with regard to the interpretation of Sections 129 and 130 of the GST Act and many petitions have been admitted and are pending for consideration in this regard - Therefore, the Bench passes an order directing the respondent authorities to release the goods on the writ-applicant depositing the balance amount, i.e. Rs.2,08,250/- - vehicle bearing registration no.KA-14B-5848 as well as the goods, i.e. betel nuts, detained/seized under purported exercise of powers under Sections 129 and 130 of the GST Act shall be released immediately upon the writ-applicant depositing the amount of Rs.2,08,250/- with the department concerned - Writ-applicant should file an undertaking before the Court within a week to the effect that in case the writ-applicant ultimately does not succeed in the petition, he shall duly cooperate in the further proceedings - Matter posted for further hearing on 24th July 2019: High Court

-Matter posted : GUJARAT HIGH COURT

2019-TIOL-1365-HC-AHM-GST

Nayara Energy Ltd Vs UoI

GST - Writ-applicant seeks to challenge the legality and validity of the show-cause notice, purported to have been issued by the Dy. Commissioner of State Tax, in exercise of his powers under Section 74(1) of the Gujarat Goods and Services Tax Act, 2017, and Section 74(1) of the CGST Act - principal argument is that the Dy. Commissioner of State Tax has no jurisdiction to issue such a show-cause notice; that in the absence of any specific notification issued by the State Government appointing the Dy. Commissioner of State Tax, he could not have issued the show-cause notice under Section 74 of the Act, 2017; that the show-cause notice under challenge is also contrary to the judgment of this Court in the case of State of Gujarat v. ONGC, - 2016-TIOL-2730-HC-AHM-VAT , wherein while interpreting the scope of the expression 'for use' in the context of sale of LPG for domestic use, this Court held the same to cover sales which are 'intended for use' by domestic household consumers and since the notification concerned in the show-cause notice is similarly worded, the said judgment would squarely apply.

Held: Writ-applicant has been able to lay down a strong prima facie case to have an interim order in its favour - Relief granted - Notice issued returnable on 17 th July 2019 - To be heard along with the Special Civil Application Nos.2699 of 2019, 8177 of 2019 and 8185 of 2019: HC [para 8 to 10]

-Interim relief granted : GUJARAT HIGH COURT

2019-TIOL-1364-HC-AHM-GST

Shahil Traders Vs State of Gujarat

GST - Writ-applicant, a registered dealer, engaged in the business of betel nuts is operating from the State of Karnataka - It appears that the consignment of betel nuts was being transported from Karnataka to Delhi/Haryana and while the goods were in transit and passing through the State of Gujarat, the vehicle was intercepted by the officers of the GST and the same came to be detained on the ground that the goods were undervalued - In such circumstances, the vehicle along with the goods came to be seized - immediately, the writ-applicant approached the department and orally represented that he is not liable to make any payment and he will submit the invoice as well as the E-Way Bill to the department - According to the department, the amount due and payable by the writ-applicant is Rs.6,07,600/- i.e. Rs.3,03,800/- towards tax and Rs.3,03,800/- towards penalty - petition before High Court.

Held: There are many larger issues involved in this petition, more particularly, with regard to the interpretation of Sections 129 and 130 of the GST Act - Many petitions have been admitted and are pending for consideration in this regard - Bench, therefore, proposes to pass an order directing the respondent authorities to release the goods on the writ-applicant depositing the amount of Rs.6,07,600/- - Vehicle bearing registration no.KA-30A-0062 as well as the goods, i.e. betel nuts, detained/seized under purported exercise of powers under Sections 129 and 130 of the GST Act is directed to be released immediately upon the writ-applicant depositing the amount of Rs.6,07,600/- with the department concerned - Writ-applicant is also required to file an undertaking before the Court within a week that in case the writ-applicant ultimately does not succeed in the petition, he shall duly co-operate in the further proceedings - Matter posted for further hearing on 24th July 2019: High Court

-Matter posted : GUJARAT HIGH COURT

2019-TIOL-1363-HC-AHM-GST

Sri Krishna Traders Vs State of Gujarat

GST - Writ applicant, a registered dealer, is engaged in the business of betel nuts and is operating from the State of Tamil Nadu - It appears that the consignment of betel nuts was being transported from Vellore to Delhi and while the goods were in transit and passing through the State of Gujarat, the vehicle was intercepted by the officers of the GST and the same came to be detained on the ground that E-Way Bill was not produced when demanded - In such circumstances, the vehicle along with the goods came to be seized - immediately the writ-applicant preferred a representation dated 22nd April 2019 addressed to the State Tax Officer (2), Mobile Squad, Division-1, Ahmedabad, stating that the writ-applicant is ready and willing to deposit the requisite amount without prejudice to his rights and contentions, and on deposit of such amount, the vehicle along with the goods may be released - writ applicant deposited an amount of Rs.1,85,500/-, however, according to the authorities, the amount due and payable is Rs.3,93,750/- - applicant is before the High Court.

Held: There are many larger issues involved in this petition, more particularly, with regard to the interpretation of Sections 129 and 130 of the GST Act and many petitions have been admitted and are pending for consideration in this regard - Therefore, the Bench passes an order directing the respondent authorities to release the goods on the writ-applicant depositing the balance amount, i.e. Rs.2,08,250/- - vehicle bearing registration no. HR-55J-2914 as well as the goods, i.e. betel nuts, detained/seized under purported exercise of powers under Sections 129 and 130 of the GST Act shall be released immediately upon the writ-applicant depositing the amount of Rs.2,08,250/- with the department concerned - Writ-applicant should file an undertaking before the Court within a week to the effect that in case the writ-applicant ultimately does not succeed in the petition, he shall duly cooperate in the further proceedings - Matter posted for further hearing on 24th July 2019: High Court

-Matter posted : GUJARAT HIGH COURT

2019-TIOL-199-AAR-GST

GST - Fabrication of bus body on the chassis to be supplied by OEMs is a supply of service (and not supply of goods under HSN 8707) taxable under SAC 998881 as 'Motor vehicle and trailer manufacturing services' and under entry no. 26(ii) as 'Manufacturing services on physical inputs (goods) owned by other' and is taxable @18%: AAR

- Application disposed of : AUTHORITY FOR ADVANCE RULING

2019-TIOL-198-AAR-GST

GST - Mounting of Bus/Truck/Ambulance body on the chassis supplied by Principal is taxable under SAC 998881 as 'Motor vehicle and trailer manufacturing services' and under entry no. 26(ii) as 'Manufacturing services on physical inputs (goods) owned by other' and is taxable @18%: AAR

- Application disposed of : AUTHORITY FOR ADVANCE RULING

2019-TIOL-197-AAR-GST

GST - Intent of legislature is to exempt services provided to the Central Government, State Government or UT Administration under any training program for which total expenditure is borne by such government - in the present case, the service is being provided by applicant to a Society named Uttar Pradesh Skill Development Society - Although it is made to understand that the entire training program would be fully funded by Central and State Govts. but nothing has been brought on record to prove that UPSDC can be construed as a Central or State Govt - Therefore, Applicant is not entitled to avail the benefit of exemption as envisaged under sl. No. 72 of Notfn. 12/2017-CTR in respect of the services of training provided to UP Skill Development Corporation: AAR

- Application disposed of : AUTHORITY FOR ADVANCE RULING

2019-TIOL-196-AAR-GST

GST - Applicant intends to import Crude Soyabean oil on CIF basis which includes the component of Ocean freight in the price of imported goods - issue raised is on applicability of RCM on Ocean freight when IGST is paid by the importer on goods imported on CIF basis.

Held: Applicant is liable to pay IGST on Ocean Freight paid on imported goods under reverse charge mechanism in terms of notfn. 10/2017-ITR and 8/2017-ITR irrespective of the ocean freight component having been a part of the CIF value of the imported goods - Any notification is issued only as per recommendations of GST Council and the law laid down is binding upon the concerned - applicant questioning the levy under RCM as being without jurisdiction - AAR does not have the jurisdiction or authority to dwell into this question in terms of s.97(2) of the Act: AAR

- Application disposed of : AUTHORITY FOR ADVANCE RULING

ARTICLES

Two Years of GST - Hits & Misses

Anti-Profiteering Authority - GST Council had not much choice!

Advance Ruling Mechanism - An Easy Beginning but a Honey Trap?