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RECENT ADVANCE RULINGS UNDER GOODS AND SERVICES TAX JUDICIAL DECISIONS ON INDIRECT TAXES - July 2020 Issue

Author: CA. P.J.Johney

RECENT ADVANCE RULINGS UNDER GST

Statute: Goods and Service Tax    
Decision in favour of: assessee

Title: M/S. Royal Care Speciality Hospital Ltd

M/s. Manasa Gangotri Kata, Thiru Kurinji Selvaan V.S

Citation:  Order No. 46/ARA/2019    
Bench/Court:  Authority for Advance Ruling, Tamil Nadu

Applicant a multi-speciality hospital providing healthcare services sought advance ruling on whether the medicines, implants and consumables etc used in the course of providing healthcare services to admitted patients in hospital would be considered as composite supply of healthcare services and exempt from GST.

‘Composite supply’ means supply of goods/services or both which are naturally bundled and are provided in conjunction which each other in the course of business. Since above stated goods are supplied to in-patients as prescribed by the doctor for which a single bill is raised and after usage of medicines etc, treatment gets completed.

Therefore held that supply of medicines etc used in providing healthcare services to patients are composite supply of healthcare services which are exempt from GST.


Statute:  Goods and Service Tax    
Decision in favour of: assessee

Title:  Kwality Mobikes (P) Ltd
Harish Dharnia , Dr. Ravi Prasad

Citation: Advance Ruling No. KAR ADRG 76/2019     Bench/Court:  Appellate Authority for Advance Ruling, Karnataka

Applicant engaged in business of supply of motor vehicles eligible for volume discount for sales and purchase of such vehicles on achieving target sought advance ruling to determine applicability of GST on such discount received.

Authorized dealer issued credit note for such volume discounts without adjusting price & GST amount of the goods already sold as it does not affect the price of the goods sold so no reduction of ITC already claimed is done.

AAR held that credit note issued by the dealer does not have any effect on value of supply & is only a financial document for account adjustment for incentive therefore volume discount received on purchase/sales in the form of credit notes without any adjustment of GST is not liable for GST.


Statute: Goods and Service Tax    
Decision in favour of:  Revenue

Title: M/s IMF Cognitive Technology Pvt Ltd
Sh.Rakesh Kumar Sharma,  Dr.Preetam B Yashvant

Citation:  Order No. RAJ./AAAR/01/2019-20    
Bench/Court:  Authority for Advance Ruling, Rajasthan

The applicant registered in the state of Rajasthan procured hotel services in Haryana state on which CGST and SGST of Haryana was paid.

On receipt of application to determine the availability of ITC of GST paid, AAR held, ITC of GST paid in Haryana shall not be available to the applicant registered in Rajasthan state. In response to further appeal filed before AAAR, it held that ITC of CGST/SGST is available to a person regd. in Rajasthan only if location of supplier and place of supply of services are in same state i.e. Rajasthan only, therefore ITC of CGST/SGST paid in Haryana shall not be available to recipient registered in Rajasthan.

B.JUDICIAL DECISIONS ON INDIRECT TAXES 

Statute: Goods and Services Tax    
Decision in favour of: assessee

Title: Bai Mamubai Trust and Others vs. Suchithra
S. J. KATHAWALLA J.

Citation: [2020] 73 GSTR 46 (Bom) q
Bench/Court: Bombay High Court

Goods and Services Tax—Charge of Tax— Taxable Event—of Services-“Supply” - “Business”- Definitions-Enforceable Reciprocal Obligations Essential For “Supply” —Royalty Paid By Defendant To Court Receiver Under Interim Order In Suit Possession On Prima Facie Finding of Illegal Occupations No Notional Contract Between Receiver and Litigant Arising Order of Court—Not A Case of Voluntarily Allowing Occupation Or Use of Property—Royalty Not “Consideration” Paid For  “Supply” of Services—Services of Receiver Are “Services By Court Or Tribunal Established Under Any Law For The Time Being  Force”—Not Liable To Goods and Services Tax—Code of Civil Procedure (5 of 1908), O. Xl, Rr. 1, 2—Central Goods and Services Tax Act (12 of 2017), Ss. 2(17), (31), (84), (93), (98), (105), (107), (19, 22, 24, 92 ; Schs. Ii, Ii—Bombay High Court (Original Slide }Rules, 1980, Rr. 589 To 599—Constitution  of India, Arts.  216a ,366(12a)—Constitution (One Hundred and First Amendment ) Act, 2016—Income-Tax Act (43 of 1961), S. 161—Notification No. 12/2017-State Tax (Rate) Mumbai, Dated June 29, 2017. 


Statute: Value Added Tax    
Decision in favour of:  assessee

Title:   S. Gurucharan Sing & Sons  v
Commissioner, Trade & Taxes and Others
Dr. S. MURALIDHAR and TALWANT SINGH JJ.

Citation: [2020] 73 GSTR 109 (Delhi)    
Bench/Court:  In the Delhi High Court

Default assessments—Objections Filed Before Objection Hearing Authority—Failure By Authority To, Dispose of Objections Within 15 Days—Dealer Personally Serving On Authority Notices In Dvat-41—Vaalue Added Tax officer Requesting Dealer To Submit Self Attested Copies of Objections and Dealer Supplying Self-Attested Copies of Form Dvat-38— Dealer Again Serving Notices In Form Dvat-41—No Action By Department— Writ Petition—Court Will Not Accept Depart-Ment’s Plea That Dealer Should Be asked Once Again To Submit Self-Attested Copies of Objections and Further Time Should Be  Onths Period Not Complied With and Commissioner: Fying Dealer of Decision Within 15 Days of Service of   Form Dvat-41—Objections Deemed To Have Been Allowed Value Added Tax Act, 2004 (3 of 2005), S. 74(7), (8), (9).  Value Added Tax— Refund—Input-Tax Credit—Dental On Basis of Demand Created By Default assessment In Default assessment Order Invoking Section 9(2)(G) To Tax Credit For Period Ending On April 30, 2009 Inserted With Effect From April 1, 2010 and Could Not Be Invoked For Input-Tax Credit Claimed For Period Prior To 2010—Delhi Value Added Tax Act, 2004 (3 of 2005), Ss. 9 (2)(G).


Statute:Goods and Services Tax    
Decision In Favour of : Petitioner

Title:   Spencers Travel Services Ltd
V COMMERCIAL TAX OFFICER  ANNA SALAL Ill ASSESSMENT CIRCLE, CHENNAI
SENTHILKUMAR RAMAMOORTHY J.

Citation:[2020] 73 GSTR 123 (Mad)    
Bench/Court: IN THE MADRAS HIGH COURT

Petition Under Section 151 of Cpc Praying That In The Circumstances Stated In The Affidavit Filed In The W.P., The High Court May Be Pleased To Permit The Petitioner To Rectify Gstr-3b Statements For The Months of August and December 2017 and January and February 2018 Manually Subject To The Outcome of The Writ Petition, Pending Disposal of Wp.No. 8662/2019 On The File of The High Court.
The Court While Directing Issue of Notice To The Respondents Herein To Show Cause Why This Petition Should Not Be Complied With, Made The Following Order. (The Receipt of This Order Will Be Deemed To Be The Receipt of Notice In The Case).
Petitioner Is Permitted To Rectify Gstr-3b Statements For The Months of August and December, 2017 and January and February, 2018 Manually Subject To The Outcome of The Writ Petition. It Is Made Clear That If The Petitioner Submits A Rectified Statements For The Above Purpose, The Respondents Shall Process The Same In Accordance With The Procedure Established By Law.


Statute:  Goods and services Tax        
Decision in favour of: assessee

Title:  POLYCAB INDIA LIMITED  v   STATE OF KERALA AND OTHERS
A. K. JAYASANKARAN NAMBIAR J

Citation:  [2020] 73 GSTR 136 (Ker)    
Bench/Court:  IN THE KERALA HIGH COURT

Goods and Services Tax—Detention of “Goods” —Tax Invoice Clearly Indicating Sale From Vendor In Gujarat To Purchase Uttarakhand and Delivery To Be Effected At Trivandrum Bill Covering Transportation Also Indicating Sample Detention of Goods and Determination of Tax and Penal Liability On Ground of Possibility of Evasion of Payment of Integrated Goods and Services Tax In Kerala—Details of Registration Consignee Produced Immediately After Detention—No Ground For Detention of Goods—Direction To Release Goods & Ward File For Adjudication— Central Goods and Services (12 of 2017), S. 129.


Statute:  Value Added Tax
Decision in favour of:  Petitioner

Title: SUDIRMAN PAPER PRIVATE LTD.    v   STATE TAX OFFICER, GOBICHETTIPALAYAM
M. SUNDAR J.

Citation: [2020] 73 GSTR 231 (Mad)    
Bench/Court:   IN THE MADRAS HIGH COURT

Value Added Tax—Central Sales Tax—Amalgamation of Companies—Fact of Amalgamation Intimated To Department—Notices For Revision of assessments of Transferor-Company Issued There-After and Revised assessments Passed Pursuant Thereto In Its Name—Not Sustainable—Orders To Be Treated as Notices and Transferee~-Company To Be Given Opportunity To Show Cause Against Revision.


Statute:   Value Added Tax
Decision in favour of: Petitioner

Title: NEWSCO INTERNATIONAL ENERGY SERVICES INC., CANADA   v   STATE OF TRIPURA AND OTHERS
SANJAY KAROL C. J. and ARINDAM LODH J.

Citation:   [2020] 73 GSTR 225 (Tripura)    
Bench/Court:    IN THE TRIPURA HIGH COURT

Value Added Tax—Deduction of Tax At Source—Contract Between ONGC and Canadian Party—Tax Wrongly Deducted At Source By ONGC—Direction of Court To Refund Sum With Interest—Contractual Matter Between Parties—Payment To Be In Currency Stipulated In Agreement Between Parties.


Statute:  Goods and Services Tax:     
Decision in favour of: assessee

Title:  ADFERT TECHNOLOGIES PVT. LTD. v
UNION OF INDIA AND OTHERS (and other cases)
JASWANT SINGH and LALIT BATRA JJ.

Citation: [2020] 73 GSTR 267 (P&H)    
Bench/Court:In the Punjab and Haryana High Court

Goods and Services Tax— Transition Provisions —Input Tax and Cenvat Credit—Carry Forward of—Failure To File Tran-1 Or Failure To Correct Tran-1st December 1, 2017—Unutilised Credit Is Vested Right Which Cannot Be Taken Away On Procedural Or Technical Grounds—Authorities Having Complete Record of Registered assessees and Free To Verify Figures of Any assessee— Direction To Department To Permit assessees To File Or, Where Already Filed, Revise Incorrect Tran-1 Either Electronically Or Manually On Or Before November 30, 2019—Central Goods and Services Tax Act (12 of 2017), Ss. 16, 140, 142—Central Goons and Services Tax Rules, 2017, Rr. 117, 120a—Punjas Goops and Services Tax Act (5 of 2017).


Statute:  Service Tax    
Decision in favour of:  Petitioner

Title: QUICK HEAL TECHNOLOGIES LIMITED v
COMMISSIONER OF SERVICE TAX, DELHI
DILIP GUPTA J. (President) and BIJAY KUMAR (Technical Member)

Citation:  [2020] 73 GSTR 341 (CESTAT-New Delhi)
Bench/Court:   [BEFORE THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL — NEW DELHI]

Service Tax—Charge of Tax— Taxable Service— Information Technology Software— Interactive Software— Meaning of—Anti- Virus Software—Once Computer System Booted Software Functions as Long as Computer System Remains Booted— No Interactivity Or Requirement of Giving Any Command To Software To Perform Its Function—No Interaction Or Manipulation — No Service—Not Liable To Tax—Finance Act (32 of 1994), Ss. 65(53a),65b(28).

Service Tax—-Charge of Tax—Sale Or Service— Deemed Transfer— Antivirus Software Developed In A Ready-To-Sell Condition Mentioning Unique Key Number and Sold To assessee On Payment of Value Added Tax—Master Compact Disc Replicated and Supplied To Sales offices of assessee, Where Compact Discs Packed In Boxes Bearing Maximum Retail Price and Personal Key Number and Sold—Transaction Results In Right To Use Software and Would Bea Deemed Sale—Constitution of India, Art. 366(29a)(D).


Statute : Value added Tax    
Decision in favour of: assessee

Title: PARISHUDH MACHINE PVT. LTD. v
COMMISSIONER OF COMMERCIAL TAXES, LUCKNOW
SAUMITRA DAYAL SINGH J.

Citation:  [2020] 73 GSTR 161 (AID)    
Bench/Court:   IN THE ALLAHABAD HIGH COURT

Value Added Tax—Entries In Schedule—Interpretation of Taxing Statutes— General Principles—Capital Goods—No Special Entry In Schedule Providing For Rate of Tax On Capital Goods—“Crankshafts” and “Camshafts’ of Compressors Used In Refrigerators and Air-Conditioners— Whether Items Falling Within Description In Entry 26 of Part A of Schedule Ii To Be Seen— Tribunal Not Examining True Scope and Ambit of Entry In Correct Light—Definition of “Capital Goods” Not Relevant To Interpreting Taxing Entry—Matter Remitted To Tribunal—Uttar Pradesh Value Added Tax Act (5 of 2008), Ss. 2(F), 4(1)(A) ; Sch. I, Parr A, Entry 26.


Statute:  Value Added Tax    
Decision in favour of:  assessee

Title: ANSHUL IMPEX PRIVATE LTD.     v    STATE OF MAHARASHTRA AND OTHERS
P. N. DESHMUKH and Mrs. SWAPNA JOSHI JJ.

Citation:   [2020] 73 GSTR 187 (Bom)    
Bench/Court : IN THE BOMBAY HIGH Court — NAGPUR BENCH

Value Added Tax—Appeal To Appellate Tribunal— Amendment Requiring Deposit of Ten Per Cent. of Disputed Tax as Condition precedent For Entertainment of Appeal—Review From assessment Order Sought Prior To Date of Amendment—Condition Does Not: Apply—Appeal To Be Entertained Without Pre-Deposit—Maharashtra Value Added Tax Act, 2002 (9 of 2005), S. 26(6b)(C). Recovery of Tax—Stay— Department Not To Take Coercive Stepstill Time Prescribed For Filing Appeal Expires.


Statute: Goods and services Tax    
Decision in favour of: assessee

Title: KONGOVI PRIVATE LIMITED v UNION OF INDIA AND OTHERS  
Mrs. S. SUJATHA J

Citation: [2020] 73 GSTR 300 (Karn)
Bench/Court:   IN THE KARNATAKA HIGH COURT

Goods and Services Tax—Transitional Provisions—Input Tax Credit—Filing of Form Tran-1—assessee Discovering & Mistake In Report of Available Credit and Seeking To Rectify It—Direction To Approach Nodal officer.


Statute: Advertisement Tax    
Decision in favour of: Petitioner

Title: DM ADVERTISERS AGENCY v
STATE OF U. P. AND OTHERS
PANKAJ MITHAL and SAUMITRA DAYAL SINGH JJ.

Citation:  [2020] 73 GSTR 245 (All)    
Bench/Court:   IN THE ALLAHABAD HIGH COURT

Advertisement Tax—Municipal Corporation— Legislative Competence—Mathura Vrindavan Nagar Nigam (Vigyapan Kar Kanirdharan and Wasuli Viniyaman) Upvidhi, 2017—Bye-Laws Notified In official Gazette and Enforced With Effect From January 6, 2018 When Corporation Lacked Necessary Legislative Competence To Make and Promulgate Said Bye-Laws—Mathura Vrindavan Nagar Nigam  Vigyapan Kar Kanirdharan and Wasuli Viniyaman),  Upvidhi  2017 Ultra Vires—Uttar Pradesh Municipal Corporation Act (1 of 1959) S. 172(2)(H)—Uttar Pradesh Goods and Services Tax Act (1 of 2017), S. 173—Consttitution (One Hundred and First Amendment) Act, 2016, S. 17—Constitution of India, Sch. Vu, List Il, Entry 55.
 

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