Raju and Prasad | Chartered Accountants in India, Financial Advisory Services, Tax Consultant

Oct 16, 2019

Clubs cannot be treated as distinct from their members and there is no sale transaction between a club and its members. Hence, there can be no sales tax or service tax on supplies by club to its members

<ul><li>Vide decision of Supreme Court of India in State of West Bengal  vs. Calcutta club Limited.</li></ul>   Facts of the case:   <ol><li>The Assistant Commissioner of Commercial Taxes issued a notice to the respondent Club assessee apprising it that it had failed to make payment of sales tax on sale of food and drinks to the permanent members during the quarter ending 30-6-2002.</li><li>After the receipt of the notice, the respondent Club submitted a representation an.....

Jan 21, 2020

Composite supply of goods and services and regular supply are differentiated.

A finding as regards composite supply must take into account supplies as effected at a given point in time on 'as is where is' basis. In particular instances where same taxable person effects a continuous supply of services coupled with periodic supplies of goods/services to be used in conjunction therewith, one could possibly view periodic supply of goods/services as composite supplies along with service that is continuously supplied over a period of time. These, however, are matters that will have to be decided based on facts in a given case and not in abstra.....

Feb 21, 2020

Section 129 is a complete code for the purpose of addressing all violations committed in transit leading to detention, seizure, and release of goods and brings within its sweep all such contraventions, irrespective of the gravity of the violation itself.

<ul><li>Vide decision of High Court of Madras in Ideal Movers (P.) limited vs. State tax Officer.</li></ul>   Facts of the case:   <ol><li>The Petitioner is a transporter and had been engaged to transport a consignment.</li><li>The consignment was accompanied by invoices and an E-way bill.</li><li>E- way bill was generated on 12-01-2020 and valid till 16-01-2020. As the lorry had broke-down and parked in a garage with damage in the gearbox. There was a delay in the repair due .....

Oct 17, 2020

Where appellant's claim for input tax credit on purchase of materials had been denied by Additional Commissioner on ground that vendors had not paid tax collected from appellant to revenue, order of Additional Commissioner was to be set aside and matter was restored to file of Additional Commissioner for fresh consideration.

<ul><li>Vide decision of High Court of Karnataka in Aequs S.E.Z. (P.) Limited vs. Commissioner of Commercial taxes.</li></ul>   Facts of the case:   <ol><li>The appellant is a private limited company engaged as a developer of SEZ units, maintenance and operation of infrastructure facility. </li><li>The appellant had filed monthly returns in VAT-100 for the tax periods 2010-11. On verification of the same, the Prescribed Authority noticed that the appellant had claimed input ta.....

Oct 17, 2020

A Notification would come into effect from date and time when it was electronically printed in gazette and mere uploading same on website would have no significance and, therefore, where Notification No. 29/2018-cus, dated 01-03-2018 was updated on 02-03-2018 and came to be published in official gazette on 06-03-2018 whereas custom duty had already been paid by assessee on 05-03-2018, enhanced amount sought to be realised from assessee on basis of aforesaid Notification was unlawful.

<ul><li>Vide decision of High Court of Madras in Ruchi Soya Industries Limited vs. Union of india</li></ul>   Facts of the case:   <ol><li>Assessee company entered into a contract with its foreign supplier in Malaysia for purchase of edible palm oil. </li><li>A dispute arose with regard to payment of customs duty for clearance of subject goods , which respondent claimed on strength of Notification No. 29/2018-cus, dated 1-3-2018- Assessee thus filed instant petition seeking a .....

Oct 17, 2020

Where assessee filed a petition contending that due to technical difficulties he could not file Form Trans-1 within prescribed time and thus requested the authority to allow him same so that he could claim transitional credit of eligible duties in terms of section 140(3), said petition was to be disposed of with a direction to State of Madhya Pradesh to take a decision on representation of assessee in accordance with law

<ul><li>Vide decision of High Court of Madhya Pradesh in Ankit Babeley vs. State of Madhya Pradesh.</li></ul>   Facts of the case:   <ol><li>Assessee had been filing his return regularly as work contractor. According to assessee, due to technical difficulties he could not file Form Trans-1 within prescribed time and thus requested te Authority to allow him same so that he could claim transitional credit of eligible duties in respect of inputs held in stock on appointed day in .....

Oct 17, 2020

Where appellant was given excess subsidy of 25 per cent under Rajasthan Investment Promotion Scheme-2003, appellant was directed to refund same with interest of 12 per cent per annum

<ul><li>Vide decision of Supreme Court of India in ultratech Cement limited vs. State of rajasthan.</li></ul>   Facts of the case:   <ol><li>Apellant company was engaged in business of manufacturing and marketing of cement and allied products.</li><li>Additional Chief Secretary (ACS) in revision order held that Kotputli Unit of company was entitled to Capital Investment Subsidy only to extent of 50 per cent of payable and deposited Sales Tax/VAT and not to extent of 75 per cen.....

Sep 16, 2020

Where assessee, a manufacturer of cement, was registered under Central Sales Tax Act in State of Rajasthan and Competent Authority of State of Rajasthan wrongly refused to issue Form 'C' to assessee for purchase of diesel at concessional rate of 2 per cent and thereupon seller, who was located in Gujarat, charged from assessee full tax at rate of 20 per cent on sales of diesel and deposited same with department in Gujarat and further assessee requested concerned authority of State of Gujarat for refund of excess tax collected from it and deposited by seller but said authority refused to refund tax amount, concerned authority of State of Gujarat was to be directed to process refund claim of assessee and grant refund of excess tax collected from it and deposited by seller

<ul><li>Vide decision of High Court of Gujarat in Udaipur Cement Works Ltd. vs. State of Gujarat.</li></ul>   Facts of the case:   <ol><li>Assessee was engaged in manufacture and sale of cement.</li><li>It was registered under Central Sales Tax Act, 1956 in State of Rajasthan.</li><li>Competent Authority of State of Rajasthan wrongly refused to issue Form 'C' to assessee for purchase of diesel at concessional rate of 2 per cent.</li><li>Thereupon seller, who was located in Sta.....

Jan 23, 2021

- If after interception of conveyance with goods in transit and detention of conveyance and seizure of goods with issuance of notice under section 129(3), and when there is information about intent to evade payment of tax, it is not open to proper officer to treat notice under section 129(3) as having abated or truncate such proceedings and initiate proceedings under section 130 for confiscation with issuance of notice thereunder. Proper Officer, who has detained conveyance and seized goods, when he is able to form opinions that there is an attempt to evade payment of tax, will have to determine applicable tax and penalty under section 129 while simultaneously initiating proceedings for adjudging confiscation under section 130. If during pendency of these proceedings, a request for provisional release as contemplated under section 129(3) is submitted, same will have to be considered in light of provisions of section 129, read with section 67(6) - vide decision of High Court of Karnataka in M/s Meghdoot Logistics v. Commercial Tax Officer, Bengaluru

Facts of the case:   <ol><li>The petitioner is a transporter and operates under a GST registration. The petitioner's case is that it was approached by M/s MK Enterprises, Delhi (the Consignor) for transportation of certain tobacco products (the Goods) to M/s SKB Trading, Salem (the Consignee). The petitioner arranged for transportation of the Goods from Delhi to Salem with appropriate Tax Invoices/e-Way Bills. </li><li>The petitioner's vehicle was intercepted on 10-8-2020 at Bengaluru, and the driver/person-in.....

Mar 19, 2021

1. Capital Subsidy received by the recipient is liable to GST. 2. The GST will have to be paid on the goods if the supply qualifies to be a supply of 'composite supply' in terms of definition under Section 2(119) of the Central Goods and Services Tax Act, 2017(Works Contract) where the principal supply is ' supply of goods' not supply of service'. 3. If there is a 'composite supply' where the predominant supply/principal supply is 'supply of goods', then invoice should be raised as per the provisions of Section 31 of the CGST Act, 2017.- vide decision of Authority for Advance Ruling, Odisha - Applicant: M/s Surya Roshni LED Lighting Projects Limited

Facts of the case:   <ol><li>The applicant is engaged in the business of executing Greenfield street lighting project. The Government of Odisha, through the Housing and Urban Development Department, the Urban Infrastructure Development Fund and the Directorate of Municipal Administration has decided to develop an energy efficient street lighting system covering new and upcoming road stretches in Greenfield areas of Odisha on a Public Private Partnership basis.</li><li>The Applicant has made a successful bid fo.....

Mar 19, 2021

Assessee was required to file necessary GST TRAN-1. While filing said Form, instead of entering details under column 7(a), assessee erroneously entered details against column 7(d) which would apply only in cases of stock of goods not supported by invoices/documents evidencing payment of tax. However, assessee was very much having necessary invoices/documents evidencing payment of tax. Since assessee did not correctly enter details, assessee was not given consequential credit under new GST regime. After assessee realized same, it submitted request before Assistant Commissioner to do needful. Assessee furnished all necessary details. However, Assistant Commissioner informed assessee that it was not possible for them to consider assessee's request in absence of any specific Court order. Whether since assessee had filed FORM GST TRAN-1 in time and his only grievance was that he was being denied benefit of input tax credit for having entered details in wrong column, Assistant Commissioner was to be directed to accept said request of assessee and do needful. - vide decision of High Court of Madras in Ram Auto v. Commissioner of Central Taxes & Central Excise, Madurai.

Facts of the case:   <ol><li>The petitioner is a dealer in two wheelers. Assessee was registered under Tamil Nadu Value Added Tax Act, 2006. The petitioner was having input tax credit to the tune of Rs. 4,85,684/-.</li><li>Following the introduction of GST regime, transition and migrations from the earlier system had to be made. The petitioner like any other dealer was required to file the necessary GST TRAN-1.</li><li>While filing the said Form, instead of entering the details under column 7(a), the petitione.....

Sep 15, 2021

Where members of applicant club contribute by way of subscription fees and infrastructure development fund which is used for purposes of provision of services and foods and a reading room, library, chambers for accommodating family and guests, etc., it is held that unless the amendment under section 7 of the CGST Act, 2017 is notified the applicant is not liable to pay GST on subscription fees and infrastructure development fund collected from members on the basis of principle mutuality

<ul><li>vide decision of Authority for Advance Rulings, Karnataka</li><li>Applicant: Bowring Institute, Bengaluru</li></ul>   Facts of the case:   <ol><li>The applicant is a club and a non-profit organization established by the British in the year 1868 as a literary and scientific society. It is a members-club as opposed to a proprietary club. </li><li>The members contribute by way of subscription fees and infrastructure development fund which is used for the purposes of provi.....

Sep 22, 2021

Reversal of input tax credit (ITC) by revenue in case of loss by consumption of input which was inherent to manufacturing loss was not correct as such loss was not contemplated or covered by situations represented under section 17(5)(h)

<ul><li>vide decision of High Court of Madras in ARS Steels & Alloy International (P.) Ltd. v. State Tax Officer, Group-I, Chennai</li></ul>   Facts of the case:   <ol><li>The petitioners are engaged in the manufacture of MS Billets and Ingots. MS scrap is an input in the manufacture of MS Billets and the latter, in turn, constitutes an input for manufacture of TMT/CTD Bars.</li><li>There is a loss of a small portion of the inputs, inherent to the manufacturing process. Th.....

Sep 22, 2021

No Tax demand can be issued or raised without issuing notice under section 74(1) of the Act

<ul><li>vide decision of High Court of Telangana in Deem Distributors (P.) Ltd. v. Union of India</li></ul>   Facts of the case:   <ol><li>The petitioner is a partnership firm and is registered under the Telangana GST Act, 2017, CGST Act, 2017 and IGST Act, 2017 and is involved in the business of dealing in goods and services relating to Ferrous waste and scrap, re-melting scrap ingots of iron or steel, flat rolled products of iron or non-alloy steel of a width of 600 mm or ho.....

Sep 22, 2021

- Act: Central Goods and Services Act, 2017 Assessee filed declaration in time for transitioning credit of earlier laws to GST but said credit was not transitioned in assessee's electronic credit ledger due to technical glitches in the GST Portal. GST Officer was directed to give transition of Credit claimed by assessee into assessee's electronic credit ledger in Form GST PMT-2

<ul><li>vide decision of High Court of Telangana in BMW India Financial Services (P.) Ltd. v. Union of India</li></ul>   Facts of the case:   <ol><li>The petitioner is into the business of non-banking financial company engaged in financing automobiles in the form of loans and financial leases to its customer and has operations in 14 States across India, including in the State of Telangana.</li><li>For the purposes of carrying on business in the State of Telangana, the petition.....

Oct 20, 2021

Electronic Credit Ledger (ECL) could not be debited for purposes of making payment of pre-deposit of tax.

Act: Central Goods and Services Act, 2017   Facts of the case:   <ol><li>The Petitioner is a partnership firm engaged in the business of execution of works contract including civil, electrical and mechanical.</li><li>In the instant case, a demand was raised by the Deputy Commissioner of CT & GST, Barbil Circle, Jajpur, Odisha which resulted in an extra demand for IGST, CGST and OGST inclusive of interest. An appeal was filed in Form-GST APL-01 before t.....

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Clubs cannot be treated as distinct from their members and there is no sale transaction between a club and its members. Hence, there can be no sales tax or service tax on supplies by club to its members

Composite supply of goods and services and regular supply are differentiated.

Section 129 is a complete code for the purpose of addressing all violations committed in transit leading to detention, seizure, and release of goods and brings within its sweep all such contraventions, irrespective of the gravity of the violation itself.

Where appellant was given excess subsidy of 25 per cent under Rajasthan Investment Promotion Scheme-2003, appellant was directed to refund same with interest of 12 per cent per annum

Reversal of input tax credit (ITC) by revenue in case of loss by consumption of input which was inherent to manufacturing loss was not correct as such loss was not contemplated or covered by situations represented under section 17(5)(h)

No Tax demand can be issued or raised without issuing notice under section 74(1) of the Act

Electronic Credit Ledger (ECL) could not be debited for purposes of making payment of pre-deposit of tax.