Case BriefsHigh Courts

Kerala High Court: Raja Vijayaraghavan V, J. allowed a civil writ petition filed by a company and directed release of its vehicles and goods that had been detained by the tax officer due to the expiry of its e-way bills.

Petitioner herein was a logistics company which was involved in the transportation of Maruti cars. Petitioner’s vehicle was obstructed, and on inspection, it was found that the validity of the e-way bills had expired. Hence, both – the vehicle and the goods – were detained. This had led to the filing of this writ petition seeking a certiorari quashing of notice issued under Section 129 of Goods and Services Tax Act, 2017 whereby his goods were seized; and sought a writ of mandamus directing the 1st respondent to release the goods by accepting a penalty of Rs 500.

The Court relied on the earlier judgment of a Division Bench  in Renji Lal Damodaran v. State Tax Officer (Order dated 06-08-2018 in WA No. 1640 of 2018) in which it was directed to release the goods of the appellant furnishing bank guarantee for tax and penalty found due and a bond for the value of goods in the form as prescribed under Rule 140(1) of the Central Goods and Services Tax Rules, 2017. So, applying the ratio of that judgment, the Court directed the respondent authorities to release the petitioner’s goods and vehicle on the execution of a bank guarantee for tax and penalty found due, and a bond for the value of goods in the form as prescribed under Rule 140(1) of the CGST Rules.

This petition was disposed of in the above terms.[OSL Logistics Private Ltd. v. Assistant State Tax Officer, 2019 SCC OnLine Ker 1554, decided on 14-05-2019]

Amendments to existing lawsLegislation Updates

G.S.R (E).- In exercise of the powers conferred by Section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:

1. (1)  These rules may be called the Central Goods and Services Tax (Seventh Amendment) Rules, 2018.

(2) They shall be deemed to have come into force with effect from the 12th day of June, 2018.

2. In the Central Goods and Services Tax Rules, 2017, –

(i) in Rule 125, for the words “Directorate General of Safeguards”, the words “Directorate General of Anti-profiteering” shall be substituted;

(ii) in Rule 129, for the words “Director General of Safeguards”, wherever they occur, the words “Director General of Anti-profiteering” shall be substituted;

(iii) in Rule 130, in sub-rule (2), for the words “Director General of Safeguards”, at both places where they occur, the words “Director General of Anti-profiteering” shall be substituted;

(iv) in Rule 131, for the words “Director General of Safeguards”, the words “Director General of Anti-profiteering” shall be substituted;

(v) in Rule 132, in sub-rule (1), for the words “Director General of Safeguards”, the words “Director General of Anti-profiteering” shall be substituted;

vi) in Rule 133, for the words “Director General of Safeguards”, wherever they occur, the words “Director General of Anti-profiteering” shall be substituted.

[F. No.349/58/2017-GST (Pt.)]

[Notification No. 29/2018–Central Tax]

Amendments to existing lawsLegislation Updates

G.S.R. 574(E).—In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government  hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:

1.(1)  These rules may be called the Central Goods and Services Tax (Sixth Amendment) Rules, 2018.

(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.

2.In the Central Goods and Services Tax Rules, 2017, –

(i)  in Rule 58, after sub-rule (1), the following sub-rule shall be inserted, namely:

“(1A) For the purposes  of Chapter XVI of these rules, a transporter  who is registered  in more than one State or Union Territory having the same Permanent Account Number, he may apply for a unique common enrolment  number  by submitting  the details  in FORM  GST ENR-02  using  any one  of his Goods  and Services  Tax  Identification  Numbers,  and  upon  validation  of  the  details  furnished,  a  unique common enrolment number shall be generated and communicated to the said transporter:

Provided that where the said transporter has obtained a unique common enrolment number, he shall not be eligible to use any of the Goods and Services Tax Identification  Numbers for the purposes of the said Chapter XVI.”;

(ii)  in Rule 138C, after sub-rule (1), the following proviso shall be inserted, namely:

“Provided that where the circumstances  so warrant, the Commissioner,  or any other officer authorised  by him, may, on sufficient cause being shown, extend the time for recording of the final report in Part B of FORM EWB-03, for a further period not exceeding three days.

Explanation.- The period of twenty four hours or, as the case may be, three days shall be counted from the midnight of the date on which the vehicle was intercepted.”;

(iii)  in Rule 142, in sub-rule (5), after the words and figures “of Section 76”, the words and figures “or Section 129 or Section 130” shall be inserted;

(iv)  after FORM GST ENR-01, the following FORM shall be inserted, namely:

FORM GST ENR-02

[See Rule 58(1A)]

Application for obtaining unique common enrolment number

[Only for transporters registered in more than one State or Union Territory having the same PAN]

1. (a) Legal name
(b) PAN

2. Details of registrations having the same PAN

Sl. No GSTIN Trade Name State/UT

3. Verification

I hereby solemnly affirm and declare that the information  given hereinabove  is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.

Signature

Place :                                                                                                                                                                        Name of Authorised Signatory

….……………………

Date :

                                                                                                                         Designation/Status……………………

For office use

Enrolment No.                                                                                                                                                                    Date –                         .”

[F. No. 349/58/2017-GST (Pt.)]

Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published vide number G.S.R 610 (E), dated the 19th  June,  2017  and  last  amended  vide Notification  No.  26/2018-Central Tax,  dated the 13th June,  2018, published vide number G.S.R 549(E), dated the 13th June, 2018.

[Notification No. 28/2018 – Central Tax]

Ministry of Finance

Amendments to existing lawsLegislation Updates

G.S.R. 266(E).- In exercise of the powers conferred by Section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely: –

1. (1) These rules may be called the Central Goods and Services Tax (Third Amendment) Rules, 2018.

(2) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.

2. In the Central Goods and Services Tax Rules, 2017,-

(i) in Rule 45, in sub-rule (1), after the words, “where such goods are sent directly to a job worker”, occurring at the end, the following shall be inserted, namely:

“, and where the goods are sent from one job worker to another job worker, the challan may be issued either by the principal or the job worker sending the goods to another job worker:

Provided that the challan issued by the principal may be endorsed by the job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal:

Provided further that the challan endorsed by the job worker may be further endorsed by another job worker, indicating therein the quantity and description of goods where the goods are sent by one job worker to another or are returned to the principal.”;

(ii) in Rule 124 –

(a) in sub-rule (4), in the first proviso, after the words “Provided that”, the letter “a” shall be inserted;

(b) in sub-rule (5), in the first proviso, after the words “Provided that”, the letter “a” shall be inserted;

(iii) for Rule 125, the following rule shall be substituted, namely:

125. Secretary to the Authority.- An officer not below the rank of Additional Commissioner (working in the Directorate General of Safeguards) shall be the Secretary to the Authority.”;

(iv) in Rule 127, in clause (iv), after the words “to furnish a performance report to the Council by the tenth”, the word “day” shall be inserted;

(v) in Rule 129, in sub-rule (6), for the words “as allowed by the Standing Committee”, the words “as may be allowed by the Authority” shall be substituted;

(vi) in rule 133, after sub-rule (3), the following sub-rule may be inserted, namely:-

“(4) If the report of the Director General of Safeguards referred to in sub-rule (6) of Rule 129 recommends that there is contravention or even non-contravention of the provisions of Section 171 or these rules, but the Authority is of the opinion that further investigation or inquiry is called for in the matter, it may, for reasons to be recorded in writing, refer the matter to the Director General of Safeguards to cause further investigation or inquiry in accordance with the provisions of the Act and these rules.”;

(vii) for Rule 134, the following rule shall be substituted, namely:-

134. Decision to be taken by the majority.- (1) A minimum of three members of the Authority shall constitute quorum at its meetings.

(2) If the Members of the Authority differ in their opinion on any point, the point shall be decided according to the opinion of the majority of the members present and voting, and in the event of equality of votes, the Chairman shall have the second or casting vote.”;

(viii) after Rule 137, in the Explanation, in clause (c), after sub-clause b, the following sub-clause shall be inserted, namely:

“c. any other person alleging, under sub-rule (1) of rule 128, that a registered person has not passed on the benefit of reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices.”;

(ix), after Rule 138D, the following Explanation shall be inserted, with effect from the 1st of April, 2018, namely:

Explanation.– For the purposes of this Chapter, the expressions ‘transported by railways’, ‘transportation of goods by railways’, ‘transport of goods by rail’ and ‘movement of goods by rail’ does not include cases where leasing of parcel space by Railways takes place.”.

[F. No. 349/58/2017-GST (Pt.)]

Note: – The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published vide number G.S.R 610 (E), dated the 19th June, 2017 and last amended vide notification No. 12/2018-Central Tax, dated the 7th March, 2018, published vide number G.S.R 204 (E), dated the 7th March, 2018.

Ministry of Finance