01 January 0001

Tax Amicus: September 2017

by Garima Srivastava


Classification of leasing services – An expanding quandary

Other than filing of GST Returns, issue relating to appropriate classification of goods and services and their tax rates is one of the many burning issues which require immediate action. One such service is leasing of cars where a conclusive classification and the corresponding rates have not been reached. Considering two competing entries in Notification No. 11/2017-Central Tax (Rate), one for leasing or rental services and another for rental services of transport vehicles, the article in this issue of Tax Amicus observes that difference between tax rate in the two entries would have a long-lasting impact on businesses and their decision-making processes. The article notes that there are no rules for classification of services, and that persuasive value of the United Nation’s Central Product Classification is yet to be tested in the Indian legal system...


Goods and Services Tax (GST)

Notifications and Orders

  • Dates of filing GST returns for July 2017 extended
  • Due date for submission and revision of Form GST TRAN-1 notified
  • Compensation Cess increased on mid segment cars, large cars and on sports utility vehicles (SUVs)
  • Rates of GST to be reduced on around 40 items
  • GST Council clarifies exemption to unbranded goods
  • Registration exemption to specified job-worker making inter-State supplies
  • Registration exemption to persons making inter-State supplies of specified handicrafts
  • For GST Acts, GST Rules and Notifications (Central and States), Circulars, Press Releases and Notes, please use Knowledge tab in www.gst.lakshmisri.com.

Ratio decidendi

  • Supply by ‘going concern’ – Australian Administrative Appeal Tribunal interprets contractual terms between parties to contracts
  • Provisional release of detained excess goods – Kerala High Court observes that when statute provides for conditions, deviation therefrom cannot be ordered
  • Interest on a delayed refund of overpaid VAT – Court of Justice of the European Union considers fiscal neutrality
  • Supply of services directly connected with exports - Court of Justice of the European Union denies exemption in a case involving sub-contracting



Notifications & Circulars

  • New Drawback Rules and Schedule to come into force from 1-10-2017
  • Exemption to specified goods imported for organising FIFA U-17 World Cup in India
  • Electronic sealing of containers – Procedure prescribed
  • Charges for late presentation of Bill of Entry to be waived in certain cases

Ratio decidendi

  • Advance authorisation – IGST on imports for fulfilment of export orders received prior to 1-7-2017 – Delhi High Court grants interim relief
  • CESTAT has no power to impose penalty for the first time – Madras High Court
  • External VGA Box – Classifiable under Customs Heading 8473 – CESTAT Chennai
  • Refund – Protest payment of duty - No vacation of the protest on adjudication made against the assessee – CESTAT Chennai
  • Re-export - Exemption under Notification No. 158/95-Cus., when permission to extend re-export period not sought before expiry of original period – CESTAT Delhi


Central Excise & Service Tax

Ratio decidendi

  • Cenvat credit of duty paid on packing material for procuring exempted inputs, available – CESTAT Chandigarh
  • Cenvat credit on cement used to treat industrial waste, available – CESTAT Delhi
  • Cenvat credit on construction of houses for rehabilitation, available – CESTAT Delhi
  • Area based exemption - Notification No. 50/2003-C.E. grants exemption to unit and is not with reference to factory – CESTAT Delhi
  • Cenvat credit on courier services available even after 2011 – CESTAT Ahmedabad
  • EOU de-bonding – No liability on work-in-progress stock – CESTAT Delhi
  • Supply of tangible goods for use service – Scope – CESTAT Mumbai +
  • Demand under Cenvat Rule 6(3) – Department to bring on record evidence – CESTAT Delhi
  • Management Consultancy service – Scope of transfer of technical know-how – CESTAT Delhi
  • Event Management service – Not necessary for event manager to undertake all activities mentioned in statutory definition – CESTAT Delhi
  • Cement cleared for self-consumption – Benefit of Notification No. 4/2006-CE, available – CESTAT Chennai
  • Export of tour operator services – No liability on service provided to foreign tourist from 1-7-2012 till 1-7-2017 – Delhi High Court


September, 2017/Issue-75 September, 2017/Issue-75

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