01 January 0001

Tax Amicus: July 2017


Authority for Advance Rulings under GST

According to the GST laws, any assessee can seek clarification on specific matters or questions relating to the supply of goods or services or both from the AAR. The new law also provides for an Appellate Authority for Advance Rulings to deliberate over matters which have been deemed as not determinable by the AAR or to adjudicate those advance rulings over which the applicant or other interested persons, viz. concerned officer or jurisdictional officer, is aggrieved. In a major change, the definition of ‘advance ruling’ allows rulings in respect of even those supplies which are already being undertaken. The exhaustive list on which advance ruling can be taken, however, does not include issues like nature of tax, export and import matters, determination of location of the supplier, etc. Discussing provisions relating to processing of application, time limits, appeal mechanism, and binding nature of the rulings, the authors believe that laws have provided for a seemingly approachable mechanism to mitigate tax prosecution and to foster higher compliance...


Goods and Services Tax (GST)

Circulars and Clarifications

  • Textiles – GST rate structure clarified while rejecting demand of nil GST on fabrics
  • Margin scheme for dealers of second-hand goods, including old and used bottles clarified
  • Hotel accommodation – Star rating not material for GST rate
  • GST migration and new registration – Maharashtra issues trade advisory




  • Foreign Trade Policy – DGFT Trade Notice highlights major changes in FTP provisions consequent to implementation of GST
  • EOUs – CBEC clarifies that inter-unit transfer of goods would be on invoice on payment of applicable GST
  • Trade facilitation - Guidelines for re-testing of samples issued - 76 point National Trade Facilitation Action Plan (NTFAP) also released
  • Import for personal use through courier – Restrictions under ITC (HS) Heading 9804 not applicable

Ratio decidendi

  • Project import benefits available even when imported machinery relocated – CESTAT Mumbai
  • Refund - Chartered Accountant’s certificate not conclusive evidence for absence of unjust enrichment – Madras High Court
  • EOU – Sales Tax reimbursement allowed in case of procurement from another EOU – Gujarat High Court
  • Confiscation under Section 111(o) not sustainable when exemption not available – CESTAT Delhi
  • Refund of SAD – Non-mention of VAT paid against each item in invoice, not fatal – CESTAT Ahmedabad
  • Drawback – Delay in submission of brand rate application – Liberal approach required – CESTAT Ahmedabad
  • ROM Application to be filed within six months from date of ‘receipt of order’ – Bombay High Court


Central Excise


  • Exercise books are classifiable under Chapter 48 while printed work books and Children’s drawing books covered under Chapter 49

Ratio decidendi

  • Tyres, tubes and flaps are not parts of automobiles - Valuation not to be under Section 4A – CESTAT Delhi
  • Bodies built on chassis received from customers classifiable under Heading 8704 as motor vehicles – CESTAT Delhi
  • Area based exemption in Himachal Pradesh - Simultaneous availment of exemption and payment of duty after taking credit, sustainable – CESTAT Chandigarh
  • Multi-media speakers with woofer having FM radio classifiable as speaker – CESTAT Delhi
  • Gold covered miniature cars classifiable as gold article and not toys – CESTAT Chennai


Service Tax


  • ST-3 or ST-3C Returns for the period from 1st of April, 2017 till 30th of June, 2017 to be filed by 15th of August, 2017

Ratio decidendi

  • Import of services – Commission paid to foreign agent when not liable to tax – CESTAT Delhi
  • Cenvat credit not available on input services attributable to trading even prior to 2011 – CESTAT Delhi
  • BAS – Stopping of bus at certain stops to facilitate business of specified shops, covered – CESTAT Delhi
  • Renting of immovable property service – Renting out building for residence along with personal office, not covered – CESTAT Delhi
  • Threshold exemption under Notification No. 6/2005-ST - Co-owners receiving lease rent separately, eligible – CESTAT Ahmedabad
  • Club or Association service - Loyalty program for customers entitling them for various discounted services in affiliated hotels, not covered – CESTAT Delhi
  • Business Exhibition service – Allowing display of advertisement in premises, not covered – CESTAT Delhi


Value Added Tax

Notification & Circular

  • Odisha VAT – No TDS on works contract from 1-7-2017
  • Kerala Sales Tax – Submission of C Forms and F Forms by September

Ratio decidendi

  • Inter-State or intra-State sale – Moment of transfer of right in goods, relevant – Advance Rulings Authority
  • Inter-State sale – Advance deposit and acceptance of goods at own risk do not make sale an intra-State sale – Gujarat High Court
  • Dry Dock and Fit-out Berth are capital goods for ship building – Gujarat High Court
  • Bhrungraj hair oil, Brahmi hair oil, Bhallatak dantmanjan and Ayurvedic dantmanjan, are drugs and medicines, and not cosmetics or toilet preparations – Gujarat High Court


June, 2017/Issue-73 July, 2017/Issue-73

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