Maniya consultancy services private limited

07/12/2017

The Goods and Services Tax (GST) Law Panel on Wednesday put forth its suggestions to Revenue Secretary Hasmukh Adhia, suggesting around 100 major changes in the GST Act.

The panel received around 700 representations citing various problems faced by the industry with regards to filing returns, e-way bills, input tax credit and exports.

Some of the recommendations are as follows:

Reverse Charge Mechanism should be abolished.
E-Way Bill should be deferred till 2019 and efforts may be made to bring some alternate method in place of this.
Inter-state transactions should be allowed in Composition Scheme.
1 percent tax in Composition for Traders, Manufacturers and Restaurants.
Refund process should be automated.
In place of all types of returns, there should be one consolidated return.
Return process should be simplified and rationalised.
The ITC should be released within the same month. Matching and adjustment may be done later.
Form 3B should be continued at least for one year.
Return should be filed quarterly but tax may be paid monthly.
Doing away with HSN code in the invoice for easier return filing.
Classification of items should be such that the raw material and finished product are in the same slab. This would make refunds faster.
Exempted or Nil rated goods should not be counted in Aggregate Turnover.
All job work should be taxed 5 percent.
Service Providers should also be allowed to take Composition Scheme.
Allow revision in Returns.
Panel recommends the formation of a National Advance Ruling Authority.
Search/Raid should be conducted only if authority has credible evidence against a person. Raid should be conducted only with orders of the Commissioner.
Scrutiny of Returns should be o.5 to 1 percent only.
Registration of persons even after July should be granted registration with retrospective effect from July 1 this year.
Read more at: http://www.business-standard.com/article/economy-policy/gst-law-panel-submits-recommendations-to-adhia-suggests-changes-117120600987_1.html

View Website

Suggestions include that reverse charge mechanism should be abolished

07/12/2017

SAD refund on import before 01.07.2017 and sale after 01.07.2017
OFFICE OF THE COMMISSIONER OF CUSTOMS (IMPORT)

JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA SHEVA.

F.No. S/12-Misc-35/2017-18 CRC (SAD-I) NS-III

Date: 04/12/2017

PUBLIC NOTICE NO. 151/2017

Subject: Clarification regarding payment of SAD refund when the import has taken place prior to 1st July, 2017 (i.e. SAD on import has been paid prior to 1 st July) and the sales of the imported goods have effected on or after 1 st July, 2017 i.e. during GST regime- reg.

Attention of all Exporters, Importers, Customs Brokers, Members of Trade is invited to Notification No. 42/2017-Cus dated 30.06.2017, Notification No. 102/2007-Cus dated 14.09.2007 & Notification No. 93/2008 dated 01.08.2008 regarding refund of 4% Additional duty of Customs (generally referred to as “SAD”). Kind attention is also drawn to JNCH Public Notice No. 43/2008 dated 06.06.2008 and Facility Notice No. 53/2010, dated 12.05.2010.

2. Trade have represented to issue clarification regarding payment of SAD refund when the import has taken place prior to 1st July, 2017 (i.e. SAD on import has been paid prior to 1 st July, 2017) and the sales of the imported goods have effected on or after 1 st July,

3. This issue has been examined. To give effect for refund of 4 % SAD in GST regime, enabling amendment were made in Notification No. 42/2017-Cus dated 30.06.2017. The said amendment is applicable to the goods which were imported on payment of SAD and were being sold after payment of appropriate GST instead of VAT/CST in GST regime. In view of the Notification No. 42/2017-Cus dated 30.06.2017 importers are entitled for SAD refund on merit subject to fulfillment of other conditions as envisaged by extant provisions of law.

4. Refund claims submitted by importers are also being processed in terms of the said Notification No. 42/2017 – Cus dated 30.06.2017. However, in order to clarify the doubts and to streamline the procedure, it is being proposed that refund claims filed to avail refund of 4% ACD (paid prior to 1 st July 2017 and sales made thereafter), importers are required to submit following documents/ declaration:

(i) “ Annexure – A” (Calculation work sheet)

(ii) “ Revised Annexure – B” (Self declaration by the importer)

(iii) “ Revised Annexure – C” (Summery of sale invoices)

(iv) “ Revised Annexure – S” (Certificate by C.A.)

(v) The importers are also required to submit evidence/proof of payment of IGST or CGST + SGST/UTGST as the case may be.

5. The procedure as prescribed under Public Notice No. 43/2008 dated 06.06.2008 and Facility Notice No. 53/2010 dated 12.05.2010 should continue to be followed for refund claims, where goods are sold before 01.07.2017.

6. Difficulty, if any may also be brought to the notice of Assistant/Deputy Commissioner in charge of SAD Refund through email / phones (details available on JNCH Website).

Sd/-

(SUBHASH AGRAWAL)

COMMISSIONER OF CUSTOMS, NS-III

Enclosure: Revised Annexure “A”, “B” & “S”

Copy to:

1. Chief Commissioner of Customs, JNCH, Nhava Sheva

2. Commissioner of Customs, Nhava Sheva I/II/IV/V/General.

3. All ADC/JC/DC/AC, JNCH, Nhava Sheva

4. BCBA/FIEO for circulation among their members.

5. AC/EDI for uploading on JNCH Website.

ANNEXURE- B

SELF DECLARATION FOR REFUND CLAIM FILED ON ————-

FOR THE MONTH OF ——————-

Refund on the Bill of Entry No. —————- Dated ———— permitted to be filed within the maximum time period of one year refundable under Notification No. 102/2007 dated 14/09/2007 as amended by Notification 42/2017 Cus- dated 30.06.2017.

Self-declaration along with the refund claim to the effect that the incidence of 4% CVD has not passed on to any other person in respect of Bill of Entry No. ————— Dated ———– claiming Refund of Additional Duty (Imports)

This is to declare and certify that the exemption from Additional duty and consequent refund, as contained in the Notification No. 102/2007 dated 14/09/2007, as amended by Notification No 42/2017-Cus dated 30.06.2017 is being claimed and is required to be given effect because the following conditions are stipulated therein are fulfilled in the respect of the Bill of Entry No.——————— Dated ——————- and Challan No. ———- Dated —————.

a) We are registered with VAT /CST/GST authorities of Department of Trade & Taxes, Govt. of ———— under TIN Registration No. ———– and GST Registration No. —————.

b) We, the importer of the said goods have paid all duties, including the said additional duty of Customs leviable thereon, as applicable, at the time of importation of the goods under the said Bill of Entry No. ——————– dated ——————-.

c) While issuing the invoice for sale of the said goods, we, the importer, have specifically indicated in the invoice that in respect of the goods covered therein, no credit of the additional duty of customs levied under Sub-section (5) of Section 3 of the Customs Tariff Act, 1975 shall be admissible to the buyer and a stamp on the invoice (to state that no CENVAT Credit is admissible) for the purpose of para 2(b) of the said notification has been affixed; declaration in the invoice that in respect of the goods covered therein, “No credit of the Additional Duty, integrated Tax and compensation Cess leviable thereon respectively under sub-section (5), (7) and (9) of the section 3 of the Customs Tariff Act 1975, has been availed/ shall be admissible to the buyer”

d) The details of the sale invoices are given separately.

e) We, the importer have filed the claim for refund of the said additional duty of Customs paid on the importer goods with the jurisdictional Customs Officer, the Dy. Commissioner of Customs, Jawahar Customs House, Sheva, Tal Uran, Dist. Raigad, Navi Mumbai- 400707, the port through which the clearance of goods through Customs was obtained i.e. Nhava Sheva.

f) We, the importer have paid on sale/ supply of the said goods, appropriate Sales Tax or Value Added Tax, IGST/CGST/SGST/UTGST as the case may be and details are given in the attached sheet along with the original of the Challans depositing the Tax and Invoices raised in this regards.

g) We, the importer have provided copies of the following documents along with the refund claim.

i. Original of the Bills of Entry and Challan detailed in attached sheet as the documents evidencing payment of the said additional duty.

ii. Original of the Challans evidencing payment of appropriate Sales Tax/ Value Added Tax, IGST/CGST/SGST/UTGST etc, as the case may be, by us the importer, on sale/ supply of such imported goods.

The Refund claim in respect of the Bill of Entry No.————- Dated —————– as above, is filed on the month of ————–, with the jurisdictional Customs Officer for sanction of the refund claim satisfying that the conditions referred to in Para 2 of the said Notification No. 102/2007 dated 14/09/2007 as amended by Notification No. 42/2017- Cus dated 30.06.2017are fulfilled.

Place :

Date :

For M/s. ————————-



Signature of the Applicant. —————–



ANNEXURE- C



SUMMARY OF SALE INVOICES

Refund on the Bill of Entry No. ——– dated ————- permitted to be filed within the maximum time period of one year refundable under Notification No. 102/2007 dated 14/09/2007 and Notification No. 42/2017- Cus dated 30.06.2017

Certificate correlating the payment of ST/VAT/CGST/SGST/IGST/UTGST on the imported goods (in respect of which refund is claimed) with the invoices of sale/supply.

Sr. No.
Sale Bill/ Invoice Nos.
Date
Name of Party
Quantity In Bags
Total Sale Value
VAT
CST
CGST/SGST/

/IGST

CGST/SGST/IGST/UTGST payment Dated _________ in theBank :

Being Registered under No. :



Total



It is further certified that

1. The above information is from the sale/supply invoices and carbon copy / Office copy in original of the said invoices will be furnished, if so required.

2. Against these sales/ supply, no refund of Additional duty of Customs duty has been claimed and no claim in future will be made in respect of these sales/supply.

3. Incidence of excess Customs duty deposited at the time of customs clearance and now covered by the refund claim has not been passed on to the customers and this amount has not been included in the sale/supply value.

4. Amount of Customs duty received as refund of duty deposited at the time of Customs clearance will be treated appropriately for tax purpose.

Place :

Date :

For M/s. ——————



Signature of the Applicant. :

ANNEXURE – S

Consolidated Certificate from the statutory auditor/Chartered Accountant towards unjust enrichment, payment of appropriate ST/VAT/S GST/CGST/IGST/UTGST, correlating payment of ST/VAT/SGST/CGST/IGST/UTGST with the sale/supply invoices and sale/supply through consignment agent/stockist for the purpose of refund of the Special Additional Duty in pursuance to Notification No. 102/2007-Customs dated 14/09/2007 as amended by Notification No. 42/2017-Cus dated 30.06.2017.

With regard to the imports under Bill of Entry No. ——- dated ——– and TR-6 Challan No. —— dated ——-, wherein the Special Additional Duty has been paid and the refund under Notification No. 102/2007 dated 14/09/2007, as amended by Notification No. 42/2017-Cus dated 30.06.2017 is sought by M/s. ———————–.

2. If certified that we are the statutory auditor/ Chartered Accountants, who certifies financial records under the Companies Act, 1956/ any ST/VAT/GST Act of the Central/State Government the Income Tax Act, 1961 or any other statue, of M/s. —————-.

3. For purpose of fulfillment of the condition in Para 2 (d) of the Notification No. 102/2007 dated 14-09-2007 as amended by Notification No. 42/2017-Cus dated 30.06.2017 and for considering sanction of refund of 4% SAD, we hereby certify that we have verified the original invoices of sale/supply, along with supporting documents towards proof of payment of appropriate ST/VAT/GST from the original VAT/ ST/SGST/CGST/IGST/UTGST Challans and / or evidence for adjustment of input tax credit, as effective discharge of ST/VAT/SGST/CGST/IGST/UTGST payment on imported goods.

4. The VAT/ ST/SGST/CGST/IGST/UTGST has been paid as below:-

S.No.
Amount of VAT/SGST/ CGST/IGST /UTGST payable
Amount of VAT/SGST/CGST/IGST/ UTGST paid online
Amount of VAT paid by adjustment of input tax

credits
Details of S. No. and Date of the entries verified from the records of the VAT/SGST/CGST/IGST/UTGST Tax payer
Date
S. No.

















5. The refund being claimed herein is being shown in the Books of Account / Balance Sheet as Amount due as refund of Additional duty of Customs and same amount has not been passed on to the buyers of the sale/ supply of goods. After examination / audit the records, it is verified from records that the details as given in the enclosed Summary of Sale/supply invoices are true details thereof. As required for examination of the principle of unjust enrichment in the case before sanction of refund under Notifn. No. 102/2007 dated 14/09/2007, this is certified that the burden of 4% CVD / SAD has not been passed on by the importer to the buyer and that they fulfill the requirement of unjust enrichment.

6. It is further certified that amount of GST payment is made by cash &through adjustment of Input Tax Credit. The amount of SAD paid has not been taken as Input Tax Credit and it is certified that no Input Tax Credit on the SAD paid will be taken.

7. In case of sale/supply through consignment agent/stockist we certify that-

(i) consignment agent/stockist M/s ——————- has been authorized to sell/ supply the imported goods in terms of the agreement entered into between the importer M/s ————– and consignment agent/stockist M/s ————————- ;

(ii) that each of the sale/ supply invoices issued by the consignment agent/ stockist indicates that the sale is made by him on behalf of the importer in the capacity of consignment agent/ stockist.

(iii) that appropriate ST/VAT/SGST/CGST/IGST/UTGST has been paid by consignment agent/ stockist M/s —————— on behalf of importer M/s ————— and that the importer, M/s ————— in turn, has paid or reimbursed the ST/VAT/SGST/CGST/IGST/UTGST to his consignment agent/ stockist M/s —————– along with the correlation of ST/VAT/SGST/CGST/IGST/UTGST payment with 4% CVD paid on imported goods.

Place :

Date :

CHARTERED ACCOUNTANT

07/12/2017

Employees’ Provident Fund Organisation

(Ministry of Labour, Govt. Of India)

BhavishyaNidhiBhawan, 14- BhikajiCama Place, New Delhi — 110066

www.epfindia.gov.in, www.epfindia.nic.in

No. C-Ex/Ex—Return/2014/19536

Date: 01 DEC 2017

To,

All Addl. Central P.F. Commissioner (Zones),

All Regional P.F. Commissioner/OIC of Regional Offices,

Subject : Online Filing of Monthly Returns by the Exempted Establishments and Specified Timeline for the Monthly Returns – Regarding.

Reference : i) Head OfficeCircular No. Exem/10(20)2016/Vol. III/ Dated: 29.05.2017.

ii) Head Office Circular No. C-Misc./Ex. Return/2013/Vol. 11/13587 Dated: 21.09.2017.

Sir,

Please refer to the subject and references cited above.

2. Vide circular under reference at SI. No. (i) above, all the exempted establishments were directed to file the statutory online returns within the stipulated time i.e. the return for the wage month of March 2017 was required to be filed by 15th of May 2017. In supersession of the circular under reference at SI. No. (i) above, all the exempted establishments/employers vide circular under reference at SI. No. (ii) above, were directed to file the statutory online returns in time i.e. on or before 25th of the month following that to which it relates.

3. The Central Provident Fund Commissioner in exercise of his powers conferred by sub-paragraph 7 of Paragraph 36 read with entry No. 16 of Appendix — A to Paragraph 27AA of the Employees’ Provident Funds Scheme, 1952 made it mandatory for all establishments exempted under Sub-Section (1)(a) of Section 17 or Sub-Section (2) of Section 17 of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 read with Paragraph 27A of Employees’ Provident Funds Scheme, 1952 or granted relaxation under Paragraph 79 of the Employees’ Provident Funds Scheme, 1952 to file their monthly and annual returns online in the prescribed proforma by 25th of the month following that to which it relates. Further, establishment which have been granted exemption by an order of the Regional Provident Fund Commissioner for individual employees under the provisions of Paragraph 27 of the Employees’ Provident Funds Scheme, 1952 shall also file their monthly and annual returns in the prescribed proforma online.

4. Accordingly the last date for filing of online returns shall be treated as 25th of the month following that to which it relates. It is also clarified that the phrase “25th of the month following that to which it relates” means that the online returns for the wage month should be filed by 25th of the month following the wage month. The following examples are cited for further explanation —

i. The monthly return i.e. Part — C, D & E for the wage month of March 2017 should be filed by 25th of April 2017.

ii. The annual return i.e. Part— F for the financial year 2016-17 ending on 31st March 2017 should be filed by 25th of April 2017.

iii. Although details of establishment and Trust i.e. Part — A & B may not change every month/year but whenever any change in these details take place during the wage month then Part — A or B, as the case may be, should be changed by 25th of the month following the wage month.

5. A copy of the said order of CPFC is enclosed. It should be given wide publicity and brought to the notice of all exempted and relaxed establishments under your jurisdiction for strict compliance so as to ensure proper filing of online returns by the exempted establishments.

[This is issued with the approval of CPFC]

Yours faithfully

(K.L.Taneja)

Addi. Central P.F. Commissioner (HQ)

Copy to : i) Deputy Director, Rajbhasha…. For Hindi version please.

ii) Guard file….for records.

Employees’ Provident Fund Organisation

(Ministry of Labour, Govt. Of India)

Bhavishya Nidhi Bhawan, 14- Bhikaji Cama Place, New Delhi — 110066

www.epfindia.gov.in , www.epfindia.nic.in

No-C/Misc./Ex-Return/2013/Vol.II/

Date: 01 OEC 2017

ORDER

In exercise of powers conferred by sub-paragraph 7 of Paragraph 36 read with entry No, 16 of Appendix — A to Paragraph 27AA of the Employees’ Provident Funds Scheme, 1952, I, Dr. V.P. Joy, the Central Provident Fund Commissioner hereby direct all establishments exempted under Sub-Section (1)(a) of Section 17 or Sub-Section (2) of Section 17 of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 read with Paragraph 27A of Employees’ Provident Funds Scheme, 1952 to file their monthly and annual returns online in the proforma attached herewith (the said proforma is also available in the official website of Employees Provident Fund Organisation i.e. www.epfindia.gov.in I www.epfindia.com under the tab “Exempted Establishments”). The returns shall be filed on or before 25th of the month following that to which it relates. The proforma contains the following parts :

PART
DESCRIPTION
PART A
Establishment details
PART B
Trust Details
PART C
Employment Details
PART D
Contribution Details
PART E
Investment Details
PART F
Annual Information
2. The provisions of online filing of returns in the prescribed proforma shall also be applicable to establishment which have been granted exemption by an order of the Regional Provident Fund Commissioner for individual employees under the provisions of Paragraph 27 of the Employees’ Provident Funds Scheme, 1952.

3. Further details for online filing of monthly and annual return has been provided on the website of the Employees’ Provident Fund Organization at the following URL :

www.epfindia.gov.in

www.epfindia.com

4. In addition to online submission of returns, exempted and relaxed establishments shall also submit duly authenticated copy of the returns in hard copy till such time the facility for filing digitally signed return is provided.

(Dr. V.P. Joy)

Central Provident Fund Commissioner

30/11/2017

Belated deposit of Employees’ Contribution to PF/ESI made before Filing of Income Tax Returns is Not Deductible: Kerala HC
The Kerala High Court, while dismissing an appeal filed by the Kalyan Silks Thrichur Pvt Ltd, ruled that the belated deposit of employees’ contribution to Provident Fund or Employees State Insurance is not deductible while computing taxable income of the assessee even though the payment was made before the due dtate of filing returns under the Income Tax Act, 1961.

The solitary common issue that arose in the appeals filed by the assessee was with regard to the legality of dis-allowance of deduction made towards belated deposit of employee’s contribution of Provident Fund/Employees State Insurance.

In instant case the first appellate authority confirmed the order of dis-allowance and later the tribunal has decided the cases against the assessee, following the Court’s past decisions in CIT v. South India Corporation (2015) 58 taxmann.com 208 (Kerala) and CIT v. Merchem Ltd. (2015) 61 taxmann.com 119 (Kerala).

Relying on the judicial pronouncements, the division bench comprising Justice Antony Dominic and Justice Dama Seshadri Naidu restored the order of lower authority and dismissed the appeal of assessee.

Source Taxscan

Taxmann is a reliable source for latest income tax, direct tax, indirect tax, GST, company law, IFRS, Ind AS & international taxation related information.

25/11/2017

The government will soon start the process of matching returns and invoices under the Goods & Services Tax (GST) as the IT backbone for the tax reform measure stabilises and the need to assess the extent of taxes due takes centre stage, government sources said. They also said that the revenue position after the introduction of GST was comfortable. The government is also working on making the new tax system more user-friendly and has lined up several steps to hand-hold taxpayers.

Under the GST system, returns filed under forms such as GSTR-1 and 2 have to be matched with the GSTR-3 to ensure that the claims made by taxpayers are correct. The government has extended the deadline for filing returns several times as taxpayers have complained about the technical glitches that had affected the IT backbone – the Goods & Services Tax Network (GSTN). Since then, the GST Council has undertaken several measures to ensure stability of the system and has asked Infosys, the technology provider, to fix the glitches. The numbers of returns have also steadily increased and the government’s promise of hand-holding taxpayers is also expected to bolster confidence among traders and the business community. Earlier this month, the GST Council unveiled a series of steps to help calm jittery businesses and undertook sharp cuts in rates of nearly 200 items to help consumers.

The worries over revenues have also receded with receipts under GST registering steady gains.

In October, GST receipts, including cess, totalled Rs 95,131 crore. The glitches in the IT system and uncertainty linked to the tax reform measure had triggered concerns over revenues. The government has maintained that it will take a few months for the system to stabilise.



View Website

25/11/2017

Removal of prohibition on export of all varieties of Pulses

(To he Published in the Gazette of India Extraordinary Part-II. Section – 3, Sub-Section (ii))

Government of India

Ministry of Commerce & Industry

Department of Commerce

Directorate General of Foreign Trade

Udyog Bhavan

Notification No. 38/2015-202

New Delhi, Dated: 22 November 2017

Subject: Export Policy of Pulses — Removal of prohibition on export of all varieties of Pulses till further orders – regarding.

S.O.(E) In exercise of the powers conferred by Section 3 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992) (as amended from time to time) read with paragraph 2.01 of the Foreign Trade Policy (FTP) 2015-2020, the Central Government hereby makes the following amendments in the ITC(HS) Classification of Export and Import.

2. In super-session of Notification No. 78 (RE-2013)/2009-20I4 dated 31.03.2014, Notification No. 28/2015-20 dated 15.09.2017 and Notification No. 03/2015-20 dated 19.04.2017, the following amendments are made, with immediate effect, against entry at SI. No. 54, Chapter 07 of Schedule 2 of ITC(HS) Classification of Export and Import Items 2012:



3. Effect of this Notification:

3. All varieties of pulses, including organic pulses, have been made ‘ free‘ for export without any quantitative ceilings, till further orders. However, for export through non-EDI Land Custom Stations (LCS), the exporter will have to do prior-registration of quantity with DGFT.

(Alok Vardhan Chaturvedi)

Direct General of Foreign Trade

E-mail: [email protected]

(Issued from F.No.01/91/180/1776/AMIO/Export Cell)

25/11/2017

Applicability of IGST / GST on goods transferred / sold while being deposited in a warehouse

Circular No. 46/2017-Customs

F.No: 473/10/2017-LC

Govt. of India

Ministry of Finance

Dept. of Revenue

Central Board of Excise & Customs

North Block, New Delhi

Dated 24 th November 2017

To,

All Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Customs

Subject: Applicability of IGST / GST on goods transferred / sold while being deposited in a warehouse. -reg.

References have been received from the trade regarding levy of IGST/GST on sales of goods deposited in a customs bonded warehouse.

2. Ch IX of the Customs Act provides for deposit of goods into a customs bonded warehouse licensed under section 57 or 58 or 58A without payment of duty and the procedures to be followed with respect to the warehoused goods. Sub-section (5) of section 59 provides that the importer is at liberty to transfer the ownership of such goods to another person while the goods remain deposited in the warehouse.

3. It is to be noted that the value of imported goods, for purposes of charging customs duty, is determined as per section 14 of the Customs Act, 1962 at the time of import i.e. at the time of filing of the into-bond Bill of Entry. Any costs incurred after the import of goods, such as, port charges / port demurrage charges or costs for customs clearing or transporting the goods from the port to the customs bonded warehouse or costs of storage at the customs bonded warehouse, cannot be added to the value of the goods, for the purpose of levy of duties of customs at the stage of ex-bonding. Further, clause (b) of sub-section (1) of Section 15 of the Customs Act provides that the rate of duty or tariff valuation for an ex-bond Bill of Entry shall be the date on which it is filed. There is no provision to vary the asses sable value of the goods at the ex-bond stage unless they are such goods on which tariff valuation applies. Therefore, duties of customs (BCD + IGST) shall be paid on the imported goods at the stage of ex-bonding on the value determined under section 14 of the Customs Act.

4. However, the transaction of sale / transfer etc. of the warehoused goods between the importer and any other person may be at a price higher than the asses sable value of such goods. Such a transaction squarely falls within the definition of “supply” as per section 7 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as, “CGST Act”) and shall be taxable in terms of section 9 of the CGST Act read with section 20 of the Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as, “IGST Act”). It may be noted that as per sub-section (2) of section 7 of the IGST Act, any supply of imported goods which takes place before they cross the customs frontiers of India, shall be treated as an inter-State supply. Thus, such a transaction of sale/transfer will be subject to IGST under the IGST Act. The value of such supply shall be determined in terms of section 15 of the CGST Act read with section 20 of the IGST Act and the rules made there under, without prejudice to the fact that customs duty (which includes BCD and applicable IGST payable under the Customs Tariff Act) will be levied and collected at the ex-bond stage.

5. Thus, in respect of goods stored in a customs bonded warehouse, there is a possibility that certain cases may involve an additional taxable event, if a transfer of ownership of warehoused goods takes place between the importer and another person, before clearance of the goods, whether for home consumption or for export.

5.1 In other words, when goods remain deposited in a customs bonded warehouse and are transferred by the importer to another person, the transaction will be subject to payment of IGST at the value determined as per section 20 of the IGST Act read with section 15 of the CGST Act, 2017 and the rules made there under and the tax liability shall be reckoned as per section 9 of the CGST Act, 2017.

5.2 However, it may be noted that so long as such goods remain deposited in the warehouse the customs duty to be collected shall remain deferred. Further, it is only when such goods are ex-bonded under section 68, shall the deferred duty be collected, at the value as had been determined under section 14 of the Customs Act, 1962 in addition to IGST leviable, as indicated at Para 5.1 above. An illustrative chart on in bond sales and clearance thereof is attached as Annexure.

6. Difficulties in implementation, if any, may be brought to the notice of the Board

7. Hindi version follows.

(Temsunaro Jamir)

Officer On Special Duty (ICD

25/11/2017

Petition challenging PAN-Aadhaar Linkage in SC dismissed as Withdrawn
The Supreme Court, on Friday, questioned the maintainability of the petition filed by CPI Leader Binoy Viswam challenging the provisions of section 139AA of the Income Tax Act mandating linking of Aadhaar with PAN number and for filing income tax returns.

The petition was later withdrawn by the counsel appeared on behalf of the petitioner.

The top court said it had already upheld the validity of an Income Tax Act provision making Aadhaar mandatory for the allotment of permanent account number (PAN) and filing of tax returns in its judgment delivered in June this year.

“How this petition is maintainable now? We had upheld the vires (of the provision). Now, a judgement on right to privacy has come but there is no judgment on Aadhaar. How this petition has been filed?,” a bench comprising Justices A K Sikri and Ashok Bhushan asked.

The bench, however, granted the petitioner the liberty to file an application for intervention in the main Aadhaar matter which is scheduled to come up for hearing before a Constitution bench in the last week of this month.

Meanwhile, the apex court today also refused to hear a separate petition which had challenged the linking of Aadhaar with bank accounts. The court said it cannot hear several petitions raising similar issue and asked the petitioner to move an application for intervention in the main Aadhaar matter.

Advocate Sriram Parakkat, the counsel for the petitioner told to Taxscan that “It was an unpleasant surprise that the second writ petition titled Benoy Viswom v Union of India was not entertained. In its’ earlier judgment, it was specifically held that the challenge to Section 139 AA has only been examined in premise of violation of Articles 14 and 19 (1) g of the Constitution and the challenge under Article 21 largely depended on whether privacy was indeed a fundamental right or not. Under a changed circumstance, when a 9 Judge Bench of the Supreme Court categorically held that privacy was a fundamental right, it was legitimately expected that the part of the challenge to the provision under Article 21 for violation of the right to privacy would come alive.

Besides, as regards confirming of Section 139 AA on Articles 14 and 19 (1) g is concerned, a Five Judge Bench in Shaira Bhanu (the tripple talaaq judgement) had expressly overruled the decision in writ petition 247 ( Benoy Viswom v UOI). Whether this overruling is a Majority view or a Minority view in the Shaira Bhanu judgement is definitely an issue. But that also could have been adjudicated keeping the challenge to section 139 AA alive.”

“The resultant tragedy is that 139 AA remains in the statute books with hollow foundation stones laid down by the judgement in Benoy Viswom v Union of India which on the one hand has been expressly overruled by a 5 Judge Bench and on the other hand has left open the tested on Article 21 (which J Khanna famously said was the basic repository of all rights). What’s the meaning of the right to privacy when you are threatened with invalidation of PAN card and consequent civil death if you do not link pan with adhaar. The statute forces citizens to enrol for a scheme (Adhaar) which itself is to be tested by a Constitution Bench of the Supreme Court thereby rendering the Constitution Bench Judgement infructous through an Act of Parliament. And even the paragraph on partial stay in Benoy Viswom v UOI has to be re-worded in the post 9 Judge Bench scenario as it was supposed to operate only till the decision is arrived at by the 9 Judge Bench,” he added.

Source Taxscan