Article
Intermediary services – Why Circular No. 159 should not be ignored?
By K Prathiba
The article in this issue of Tax Amicus discusses a recent CBIC Circular 159/15/2021-GST on intermediary services. Dissecting the definition of ‘intermediary’ as given under Section 2(13) of the IGST Act, 2017, the author tries to be optimistic and analyses how the Circular instils hope or at least ensures that it should not be ignored. The article examines as to how the expression ‘any other person, by whatever name called’ must bear the character of a broker or agent and how every person who facilitates any supply cannot be an intermediary. On the question of sub-contracting, the author highlights an example of engagement of Indian counterpart by foreign group company where services may eventually be consumed to undertake a main supply by or to the foreign company. According to the author, the said activity may also be sub-contracting or outsourcing and therefore, looking at all transactions with the same lens may not be correct. The article concludes by stating that consumption of a service for an eventual supply cannot be the sole test...
Goods & Services Tax (GST)
Top Notifications and Circulars
- Goods – CBIC clarifies GST rates and classification for various goods
- Services – CBIC explains GST rates and exemption for various services
Ratio decidendi
- Registration of purchasing dealer cannot be cancelled for fraud committed by seller – Orissa High Court
- Absence of Form DRC-01 and 02 fatal – Non-adherence of CGST Rule 142 causes prejudice – Madras High Court
- Show cause notice lacking ingredients of proper notice under CGST Section 74, to be struck down – In-substance compliance not material – Jharkhand High Court
- Electronic Credit Ledger cannot be used for payment of pre-deposit while filing appeal – Orissa High Court
- Blocking of ITC under CGST Rule 86A – Reasons to be recorded and communicated to assessee – Madras High Court
- Refund – CBIC Circular prescribing online filing of claim cannot override Rule 97A allowing manual filing – Allahabad High Court
- SEZ developer can also claim refund when tax paid erroneously by service supplier – Madras High Court
- Provisional attachment – ‘Opinion’ in Section 83 cannot be merely a lip service – Madras High Court
- Registration cannot be cancelled without considering reasons for delay in filing returns – Patna High Court
- Working from home and not from business premises is no criteria for cancellation of GST registration – Calcutta High Court
- GST applicable on receipt of money after arbitration (during GST regime) for works contract completed in the pre-GST regime – Telangana AAR
- No GST on employees’ share collected for payment to canteen service provider – Gujarat Appellate AAR
- ITC available on supply of other goods at nominal charges under a promotional scheme – Gujarat AAR
- Electronic platform for booking cabs liable as e-commerce operator – GST payable on net ride charges after deducting discounts – Gujarat AAR
- Managerial and leadership services provided to branch offices and group companies liable to GST – Maharashtra AAR
- Valuation – Fuel charged as reimbursement or received as free supply from customers, includible in value of rental services – Gujarat Appellate AAR
Customs
Top Notifications and Circulars
- Remission of Duties and Taxes on Exported Products (‘RoDTEP’) scheme and Rebate of State and Central Taxes and Levies (‘RoSCTL’) scheme clarified
- Crude soya-bean, palm and sunflower oils – BCD exempted and AIDC lowered
- Syringes with or without needles, of specific denominations – Exports restricted
Ratio decidendi
- EPCG scheme – Surrender of SHIS scrips, issued for same period, enough – Assessee not required to obtain policy relaxation – CESTAT Chennai
- No CVD on vessel seeking to convert into coastal run when same imported before 2012 – Orissa High Court
- Cash refund of SAD earlier paid through DEPB permissible – Karnataka High Court
- Waste paper imports can even be in form of books, old or new – Inspection or investigation required to allege mis-declaration – Madras High Court
- eNodeB BTS/ Micro Cell BTS/ Femto Cells BTS/ Pico Cells BTS classifiable under Tariff Item 8517 61 00 as ‘Base Station’ – CESTAT Mumbai
Central Excise, Service Tax & VAT
Ratio decidendi
- Cenvat credit available on inputs, capital goods and services used in erection of towers and shelters by providers of cellular telephone services – CESTAT Chennai
- Sandalwood oil is a ‘forest produce’ – Supreme Court
- Refund of Education Cesses under area-based exemption notifications – Supreme Court refers application for modification of SRD Nutrients decision to 3-Judge Bench – Supreme Court
- Refund – Limitation – Date of re-submission cannot be considered as date of filing – CESTAT Chennai
- Amount due under Orissa Entry Tax Act is not first charge on refund due under Central Sales Tax Act – Orissa High Court
- Service provided to holding company outside India is exports – CESTAT Allahabad
