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Chamber's CADRE

RNI No. MAHENG/2015/67505I Postal Reg. No. MCS/210/2019-21Vol. VIII | Issue 1 I July 2020 I Total Pages• 15 I Price: `2/-

THE CTC NEWSMonthly Newsletter of The Chamber of Tax Consultants

(For Private Circulation - Members Only)

Before you are a is all about growing yourself. leader, success When you become a leader, success is all about growing others.

-Jack Welch ”“

www.ctconline.orgTHE CTC NEWS | July 2020 2

FORTHCOMING EVENTS

SR. NO. DATE COMMITTEE PROGRAMME DESCRIPTION PG.

NO.

1. 24-07-2020 & 25-07-2020

Student GST Annual Return and GST Audit – 2 day Workshop 5

2. 24-07-2020 & 25-07-2020 & 01-08-2020

Accounting & Auditing

Seminar on Business Valuation – (Jointly with Bombay Chartered Accountants’ Society)

5

3. 26-07-2020 Study Circle & Study Group

Analysis of Judgments under Income - tax 6

4. 28-07-2020 Indirect Taxes Taxability of E-Commerce Transactions under GST 6

5. 27-07-2020 Direct Taxes ISG on Recent Important Direct Tax Decisions 6

6. 29-07-2020 Direct Taxes Impact of COVID19 on Direct Tax Laws and Procedures 6

7. 02-08-2020 Commercial & Allied Laws

Confluence of Benami Law, Black Money Act and Money Laundering Act with Income - tax Act

6

8. 06-08-2020 Student UDAAN ~ Learning Today... Leading Tomorrow 7

9. 13-08-2020 Student Income - tax Return – Recent Changes and Do’s & Don’ts – Student’s Perspective 7

10. 26-09-2020 Student Tax Audit – Recent Changes and Do’s & Don’ts 7

11. 24th, 25th, 31-07-2020 & 1st, 7th, 8th, 14th, 15th, 21-08-2020

Hyderabad Study Group

Long duration course on FEMA – (Jointly with Foundation of Tax and Accounting Professionals)

8

12. 31-07-2020 01-08-2020 & 02-08-2020

Membership & Public Relations

Real Estate Virtual Summit 2020 – Footprints for Future – (Jointly with Association of Corporate Advisers & Executives, All india Federation of Tax Practitioners (EZ), Indirect Tax Professionals’ Forum, RERA India Education and Resource Federation, Society For Tax Analysis & Research)

9

13. — Law & Representation

The Vivad Se Vishwas Scheme 2020 11

Note : All the events will be held through virtual platform (Zoom App) Kindly enrol at the earliest to avoid disappointment.

Participation Fees to be paid online on the website : www.ctconline.org


BRIEF REPORT OF 93RD ANNUAL GENERAL MEETINGAt the 93rd Annual General Meeting held on Saturday, 4th July, 2020, the following business was transacted:i) The Annual Report for the year 2019-20 was approved & adopted.

ii) The Accounts for the year ended 31st March, 2020 were adopted.

iii) CA J. L. Thakkar, was appointed as Auditor for the year 2020-21 and will hold office up to the next AGM

iv) Results of the elections for the year 2020-21 were declared by the Election Officer, Shri Keshav Bhujle, Past President asfollows:

• Anish Thacker was declared elected as President

• The following fourteen members were declared elected to the Managing Council

1. Atul Mehta 8. Mehul R. Sheth2. Dharan Gandhi 9. Neha Gada3. Dinesh Poddar 10. Nishtha Pandya4. Haresh P. Kenia 11. Parag Ved5. Heneel K. Patel 12. Rajesh L. Shah6. Ketan L. Vajani 13. Rajesh P. Shah7. Maitri P. Savla 14. Varsha Galvankar

THE DASTUR ESSAY COMPETITION:Shri Ninad Karpe, Former Managing Director & CEO of Aptech Ltd., was the judge of the Essay Competition.

The Top 3 Winners of the Essay Competition are:

Rank Participant Name Topic Associates/College1 Ms. Joshita Chopra Gandhian Values in Today’s Era GBCA & Associates LLP, Chartered

Accountants, Mumbai2 Ms. Saniya Mary Stanly Artificial Intelligence: Replacement for the

Human Mind?BDO India LLP, Chennai

3 Ms. Vanshika Bhanushali USD 5 Trillion Indian Economy: Dream or Achievable?

GBCA & Associates LLP, Chartered Accountants, Mumbai

THE NEW TEAM FOR 2020-21

i) In the First Managing Council Meeting held on Sunday, 5th July, 2020, the following members were elected asOffice Bearers:

Sr. No. Name Designation

1. Ketan L. Vajani Vice President2. Haresh P. Kenia Hon. Jt. Secretary3. Neha Gada Hon. Jt. Secretary4. Parag S. Ved Hon. Treasurer

ii) The following nine members were Co-opted to the Managing Council for the year 2020-21:

1. Ashok Sharma 2. Hinesh Doshi3. Hitesh R. Shah 4. K. Gopal5. Kishor Vanjara 6. Mahendra Sanghvi7. Nilesh Vikamsey 8. Paras K. Savla9. Paresh P. Shah


iii) EDITOR & EDITORIAL BOARD OF THE CHAMBER’S JOURNAL: Mr. Vipul B. Joshi was appointed as the Editor of “The Chamber’s Journal”.

The following were appointed as Editorial Board Members:

1. A. S. Merchant 2. K. Gopal3. Keshav Bhujle 4. Kishor Vanjara5. Pradip Kapasi

The following were appointed as Asst. Editors:

1. Ajay Singh 2. Ameya Kunte3. Haresh Chedda 4. Manoj Shah5. Nishit Gandhi 6. Kumarmangalam Vijay7. Rakesh Upadhyay 8. Sanjay Parikh9. Vikram Mehta 10. Yatin Vyavaharkar

iv) COMMITTEES The following Committees were formed and their Chairpersons & Co-Chairpersons were appointed:

Committees Chairman/Chairperson1. Accounting & Auditing Heneel Patel2. Commercial & Allied Laws Dharan Gandhi3. Direct Taxes Dinesh Poddar4. Indirect Taxes Atul Mehta5. International Taxation Rajesh L. Shah6. I.T. Connect Maitri Savla7. Journal Paras K. Savla8. Law & Representation Mahendra Sanghvi9. Membership & Public Relations Nishtha Pandya10. Office Premises Kishor Vanjara

Hitesh R. Shah, Co-Chairman11. Research & Publication Rajesh P. Shah12. Residential Refresher Course Mehul Sheth13. Student Varsha Galvankar14. Study Circle & Study Group Ashok Sharma15. International Taxation Journal Paresh P. Shah

DELHI CHAPTER

The following members were appointed as Core Team of the Delhi Chapter:

1. Vijay Gupta Chairman2. Sanjiv Chaudhary Vice Chairman3. Deepender Kumar Jt. Hon. Secretary4. Prakash Sinha Jt. Hon. Secretary5. Harpreet Singh Hon. Treasurer

LAUNCH OF JIGNYASA - Students E-Journal

The Student Committee of the Chamber of Tax Consultants launched the Students’ e-Journal, “Jignyasa - Learning Today... Leading Tomorrow” at the AGM on July 4, 2020. This quarterly E-journal is an endeavour of the Committee to keep the Students up to date in every arena. The Committee also intends to make a part of the journal - by the students, for the students.The Committee would soon release the guidelines for contributing article for the journal by the students and the same shall be uploaded on the website of the Chamber. In the meantime interested students can write to the chamber at [email protected]


STUDENTChairperson: Varsha Galvankar | Vice-Chairperson: Niyati Mankad | Vice-Chairman: Vitang ShahConvenors: Raj Khona, Charmi Shah | Advisor: Ajay Singh

Days & Dates: Friday, 24th July, 2020

Saturday, 25th July, 2020 Time:

11.00 a.m. to 1.00 p.m.5.00 p.m. to 7.00 p.m.

GST Annual Return and GST Audit – 2 day workshop

Sr. No. Topics Speakers

1 GST Annual Return CA Jigar Shah

2 GST Audit CA Ankit Chande

Fees

Student Member Free

All Other Participants ` 200 + ` 36 (18% GST) = ` 236/-

ACCOUNTING & AUDITINGChairman: Heneel Patel | Vice-Chairmen: Hemal Shah, Tejas Parikh Convenors: Prashant Daftary, Arpita Gadhia, Deepak Shah | Advisor: Jayesh Gandhi

Days & Dates: Friday, 24th July, 2020

Saturday, 25th July, 2020 Saturday, 01st August, 2020

Time: 4.30 p.m. to 7.45 p.m.

Seminar on Business Valuation (Jointly with Bombay Chartered Accoutants’ Society)

Sr. No. Topics Speakers

1 Opening Remarks and Keynote Address on Valuations CA Sujal Shah2 Intricacies - Valuation Standards and Rules

• Provisions of Companies Act • Valuation Rules including Amendments • Valuation Exams • Overview of Valuation Standards

CA Anand Bathiya

3 Overview of Valuation Methodologies • Asset Approach • Income Approach • Market Approach • Legal Cases (Cadbury, HLL, Solvey, Mihir Mafatlal, etc.)

CA Vikram Jain

4 Measuring the Value of Intangibles • Types of Intangibles • Methodologies • Case Study and major Issues - Documentation for Valuation

CA Ravishu Shah

5 Valuations under Specific Situations: •Mergers / Demergers / SEBI Regulations* •Startups •Insolvency •IND AS / Impairment testing •FEMA •Valuation of Investment Entities •ESOP Valuation

CA Pinkesh Billimoria

FeesMembers ` 1,000/- + ` 180/- (18% GST) = ` 1,180/-Non-Members ` 1,500/- + ` 270/- (18% GST) = ` 1,770/-

With the due dates of filing of GST Annual Returns and Audit fast approaching, the Student Committee of the Chamber of Tax Consultants is pleased to announce an interactive e-workshop uniquely designed for the articled students. The workshop would be conducted by eminent GST experts who will explain the entire

GSTR-9 and GSTR-9C clause by clause and would deal with the various issues/complexities involved by giving practical examples. Also, key focus areas which articled students should keep in mind while conducting the GST Audit would be explained.


STUDY CIRCLE & STUDY GROUPChairman: Ashok Sharma | Co-Chairman: Dilip Sanghvi | Vice-Chairman: Sanjay Choksi Convenors: Dinesh Shah, Dipesh Vora, Dhaval Shah

INDIRECT TAXESChairman: Atul Mehta | Vice-Chairman: Sumit Jhunjhunwala Convenors: Hemang Shah, Kush Vora, Keval Shah | Advisor: Rajiv Luthia

Day & Date: Sunday, 26th July, 2020

Time: 11.30 am to 1.30 pm

Day & Date: Tuesday, 28th July, 2020

Time: 4.00 p.m. to 6.00 p.m.

Analysis of Judgments under Income - tax

Taxability of E-Commerce Transactions under GST

Sr. No. Speaker

1 CA Rajat Tatati

Sr. No. Speaker

1 Ajay Vohra, Senior Advocate, Supreme Court

FeesMembers ` 200/- + ` 36/- (18% GST) = ` 236/-Non-Members ` 300/- + ` 54/- (18% GST) = ` 354/-

DIRECT TAXESChairman: Dinesh Poddar | Co-Chairman: Ashok Mehta | Vice-Chairman: Abhitan Mehta Convenors: Chintan Gandhi, Nimesh Chothani, Viraj Mehta| Advisor: Mahendra Sanghvi

COMMERCIAL & ALLIIED LAWSChairman: Dharan Gandhi | Co-Chairman Makrand Joshi | Vice Chairperson: Mallika Devendra Convenors: Gautam Mota, Tanmay Phadke | Advisors: K. K. Ramani, Sanjay Buch

Day & Date: Monday, 27th July, 2020

Time: 5.00 p.m. to 7.00 p.m.

Day & Date: Sunday, 2nd August, 2020

Time: 11.00 a.m. to 01.00 p.m.

Recent Important Direct Tax Decisions (For ISG Members Only)

Confluence of Benami Law, Black Money Act and Money Laundering Act with Income - tax Act

Day & Date: Wednesday, 29th July, 2020

Time: 5.00 p.m. to 7.00 p.m.

Impact of COVID19 on Direct Tax Laws and Procedures

Sr. No. Speaker

1 Devendra Jain, Advocate

Sr. No. Topic Speaker

1 Recent Important Direct Tax Decisions Fenil Bhatt, Advocate

Sr. No. Speaker

1 Firoze Andhyarujina, Senior Advocate


STUDENTChairperson: Varsha Galvankar | Vice-Chairperson: Niyati Mankad | Vice-Chairman: Vitang Shah Convenors: Raj Khona, Charmi Shah | Advisor: Ajay Singh

Day & Date: Thursday, 6th August, 2020

Time: 5.30 to 6.30 pm

Day & Date: Thursday, 13th August, 2020

Time: 5.00 to 7.00 pm

Day & Date: Saturday 26th September, 2020

Time: 5.00 to 7.00 pm

UDAAN ~ Learning Today... Leading Tomorrow

Income - tax Return – Recent Changes and Do’s & Don’ts (Student’s Perspective)

Tax Audit (Recent Changes and Do’s & Don’ts)

Sr. No. Topic Speakers

1 Income - tax Return – Do’s and Don’ts (Student’s Perspective) CA Kalpesh Katira & CA Prashant Shah

Sr. No. Topic Speaker

1 Tax Audit (Recent Changes and Do’s & Don’ts) CA Chintan Gandhi

With various changes in Income - tax Return forms this year, the Students Committee of The Chamber of Tax Consultants is pleased to announce a webinar for students on Income - tax Return – Recent Changes and Do’s & Don’ts (Student’s Perspective). The

In the present scenario for the practicing professional, the responsibility has increased manifold. Cost of negligence is very high. Articled assistants are the initial executors for conducting Tax Audit.

• Is your articled assistant equipped to carry out tax-audit?

• Does your articled assistant understand the impact of Auditing Standards for carrying out Tax Audit?

webinar will be delivered by eminent Income - tax experts who will discuss the changes in the Income - tax return forms and also discuss practical difficulties and common errors that are faced while filing the returns.

• Is your articled assistant able to co-relate understanding of Income - tax while dealing with Tax Audit?

• Is the articled assistant cautious about preparing proper working file for tax audit?

The Student Committee of The Chamber of Tax Consultants is pleased to announce a webinar for students on Tax Audit – Recent Changes and Do’s & Don’ts.

Episode 2 of the Chat Show with the Stalwarts of the Profession

In the recent years, we have seen a paradigm shift from young Chartered Accountants entering the arena of practice to now joining the industry.

With an object of motivating the students to opt for practice, in this second episode of the Chat Show ~ Udaan - Learning Today...

Leading Tomorrow, we have invited CA Nilesh Vikamsey (Past President-ICAI) to share his opinion on how relevant the traditional form of practice of a Chartered Accountant will be in the years to come. Apart from covering conventional areas, we shall also chat on the future of existing arenas of modern practice and discuss some new upcoming areas of practice. He shall also guide on the steps and nuances on setting up of one’s own practice.

FeesStudent Member FreeAll Other Participants ` 200 + ` 36 (18% GST) = ` 236/-

FeesStudent Member FreeAll Other Participants ` 200 + ` 36 (18% GST) = ` 236/-


Fees

Members or HSG Members ` 1,000/- + ` 180/- (18% GST) = ` 1,180/-

Non-Members ` 1,500/- + ` 270/- (18% GST) = ` 1,770/-

HYDERABAD STUDY GROUPCo-ordinators: Manindar Kakarla, Neelesh Vithlani, Ram Murthy T., Ravi Ladia, Samba Murthy P. | Advisor: Hinesh R. Doshi

Days & Dates: 24th, 25th, 31st July, 2020 1st, 7th, 8th, 14th, 15th,

21st August, 2020

Long duration course on FEMA (Jointly with Foundation of Tax and Accounting Professionals)

FEMA is one of the most evolving areas of practice and with businesses and economies exploring greener pastures offshore it has become the most sought after need for professionals. However, due to its complex nature, it continues to be a nightmare for companies and professionals alike. In order to reduce some of the complexities, CTC HSG and FTAP together bring a learning course on FEMA to

understand the basics and few intricacies of FEMA in depth. It’s a golden opportunity to learn the important aspects of FEMA. Various important and interesting topics have been included in the course with one session dedicated to learning the various forms to be filed for practical learning as well.

Sr. No. Dates Time Topics Coverage Scope Speakers

1 24th July, Friday 4.30 to 7 p.m. Inauguration and Overview of FEMA

Key Note Speaker CA Dilip Thakkar* (Mumbai)

Overview and Introduction of FEMA Act 1999 CA Manoj C Shah Mumbai

2 25th July Saturday 5 to 7 p.m. Types of NRI Deposit/ Bank Accounts & Investments in Properties

Types of accounts that can be maintained by the Residents and Non-Residents & Investments in Immovable Properties India and Abroad

CA Naresh Ajwani Mumbai

3 31st July Friday 5 to 7 p.m. Establishment of Branch office, Liaison Offices by Residents and Non-Residents – FEMA Regulations

Establishment of Liaison office, Branch Office, Projects office, etc., in India and abroad

CA Hinesh Doshi

Mumbai

4 1st Aug Saturday 5 to 7 p.m. Critical Analysis of Borrowings under FEMA

Covering the aspects of ECB, Trade Credit, Lending and borrowing in Rupees and FC etc

CA P Rajendra Prasad Hyderabad

5 7th Aug Friday 5 to 7 p.m. Analysis of FDI Regulations under FEMA

FDI regulations for Investments in Non-Corporate Entities including Partnership and LLP

CA Murali Krishna Hyderabad

6 8th Aug Saturday 5 to 7 p.m. Analysis of FDI Regulations under FEMA

FDI Regulations for Investments in Corporate Entities and Non-Debt Instruments

CA Moin Ladha Mumbai

7 14th Aug Friday 5 to 7 p.m. Analysis of ODI Regulations under FEMA

ODI Investments by the Companies, LLPs, Partnership Firms, etc.

CA Vishal Gada Mumbai

8 15th Aug Saturday 5 to 7 p.m. Analysis of ODI Regulations under FEMA

Remittances available to Individuals under LRS and Immigration Investment schemes Drawing, Possession and Utilisation of Foreign Currency

CA Rajesh P Shah Mumbai

9 21st Aug Friday 5 to 7 p.m. Export of Goods Services– FEMA Regulations

Major aspects of FEMA Regulations related to Export of Goods and Services

CA Ganesh Ramaswamy Bangalore

10 22nd Aug Saturday 5 to 7 p.m. Import of Goods and Services – FEMA Regulations

Major aspects of FEMA Regulations related to Import of Goods and Services

CA Shabbir Motorwala Mumbai

11 27th Aug Thursday 5 to 7.30 p.m. Compounding of Offences & Auditor’s Responsibility from FEMA perspective

Offences and adjudications under FEMA, remedial measures including Compounding of Offences and Practical Aspects for appearance before ED Authorities.

CA Deepender Agarwal

New Delhi

12 28th Aug Friday 5 to 7 p.m. Filing of various forms under FEMA

A Practical overview of different forms to be filed under FEMA and FEMA from Auditor’s perspective

CA Harshal Bhuta Mumbai

13 29th Aug Saturday 5 to 7 p.m. Panel Discussion Case Studies on FEMA and Brain Trust Session CA Anup P. Shah & CA Paresh P. Shah

Panel Chairman – CA Dilip Thakkar*


MEMBERSHIP & PUBLIC RELATIONSChairperson: Nishtha Pandya | Co-Chairman: Premal Gandhi | Vice-Chairperson: Ashita Shah Convenors: Bandish Hemani, Tanvi Vora | Advisor: Hitesh R. Shah

INDIRECT TAXESChairman: Atul Mehta | Vice-Chairman: Sumit Jhunjhunwala | Convenors: Hemang Shah, Kush Vora, Keval Shah | Advisor: Rajiv Luthia

13

15

10

6

2

http://acaekolkata.org/virtualconference/

Associat ion of Corporate Adv isers & Execut ives

Joint ly wi th

A l l ind ia Federat ion of TaxPract i t ioners (EZ)

Indirect Tax Profess ionals ’ ForumRERA India Educat ion and Resource

Federat ionSociety For Tax Analys is & Research

The Chamber of Tax Consultants

ACAE

VIRTUAL SUMMIT

2020

R E A L E S T A T E

FOOTPRINTS FOR FUTURE

RegisterToday !!

For payments by cash or Cheque Contact

Niti Dasgupta +91 9830555232

[email protected]

@Rs.250 (incl GST)

Fill up the registration form at

link below to join the event

Topics including GST, I.Tax,Finance, Accounts, RERA

Renowned speakers & Experts from across the Country

Panel Discussions with IndustryLeaders & Regulators

Hrs of Learnings on currenttopics

Organisations joining hands

31st July & 1st Aug

5:00 P.M. to 7:30 P.M

2nd Aug

10:30 A.M. to 01:00 P.M.

IDTPF

OUR VISION

FOOTPRINTS FOR FUTURE

"Real Estate Industry - CurrentConundrum"GST - ITC- Recent Judicial PrinciplesGST - Antiprofiteering IssuesGST Implications on uncertain rentalincome & suggested recourseForce Majeure- Implications in RentalAgreementsMSME Perspective in Real EstateJDA - GST Issues and Implications onDevelopers and OwnersUrban Planning- New Dimensions inview of ongoing Covid 19 pandemicJDA- Income Tax Implications, CapitalGains & Other Real Estate- Accounting Issues, IncomeRecognition & Disclosure (ICDS,AS7,etc.)RERA - Challenges & IssuesIBC Code - Obligations, Exit Routes &OpportunitiesConcluding Panel DiscussionCurrent Real Estate Policy - Suggestions

ABOUT SUMMIT

Quiz Competition I Win PrizesSurveys | Group Chat &

Lounge | Watch Later | Linkto Advertisers & Sponosrs

Lobby

Features

Experience VirtualRoom Environment

Parallel Sessions | ChooseLive or watch later | Short

Sessions | Q & A

Virtual Lobby

Background Materials| Link to Past Session| Articles &Research Papers |Upload

Article | Ask the Expert

Resource Materials

SESSIONS PANELLISTCA (Dr.) Gaurav Gupta, DelhiAdv Sumant Batra, DelhiSri D K Singh, DC MSME*CA Amit Kr. Kedia, JaipurCA Ramesh Prabhu, MumbaiAdv V Raghuraman, BangaloreCA (Dr) Girish Ahuja, DelhiSri Yogesh Thar, MumbaiSri Ravindra Chamaria, KolkataCA Anish Thacker, MumbaiAdv Sandip Gadodia, RanchiCA Manmohan Gupta, DelhiCA Arun Agarwal, KolkataSri H V Patodia, NationalPresident (Elect) CREDAISri Sumit Sanghai, MumbaiSri Apurva Salarpuria, KolkataCa J itendra Lohia, Kolkata

* Confirmation awaited


CTC PUBLICATION

https://events.ctconline.org/books.php?utm_source=advertisement&utm_medium=CTC%20_newsletter_outside%20advt_International%20Taxation%20book&utm_campaign=CTC%20_newsletter_outside%20advt_International%20Taxation%20book


IMPORTANT DECISIONS UNDER GST By Vinay Jain & Sachin Mishra, Advocates

1. Whether after the Finance (Amendment) Act, 2020 under Section 140 of the CGST Act, 2017, mistake committed by the assessee at the time of filing of GST TRAN-1 can be rectified subsequently? Whether the decision in Brand Equity Treaties Ltd. And Ors. v. Union of India, [2020] 116 taxmann.com 415 (Delhi) stands valid after the aforesaid amendment which inserted the words “within such time” in Section 140 of the CGST Act, 2017, inter-alia empowering the Central Government to prescribe the time limit for filing TRAN-1, retrospectively?

Facts and Pleadings: M/s SKH Sheet Metals Components Private Limited (hereinafter referred to as ‘The Petitioner’), is inter-alia engaged in manufacture of final products and sale to OEMs. In order to avail the credit in the electronic credit ledger under the GST laws, the Petitioner filed ‘GST TRAN-1’ on 27.08.2017. However, on submission of the said Form, Petitioner realized that as against the total credit of Rs. 6,52,58,081/-, only Rs. 1,01,24,382/- was reflected on the common GST portal. The CENVAT credit of Rs.5,51,33,6991/- was not displayed in the electronic credit ledger. Petitioner filed a revised declaration in the nature of Form GST TRAN-I on 27.12.2017 and reflected the correct figures under column 5(a) of the Form, however, the amount was still not transferred to the electronic credit register and was shown as “blocked credit”. The Petitioner made several efforts before numerous authorities to rectify

the aforesaid mistake, however, all such authorities rejected the plea of the Petitioner.

The Department argued that the case of the Petitioner fell in the category “the taxpayer has successfully filed TRAN-I, but no technical error has been found” as the Petitioner did not encounter any technical glitch on the portal, his request to file a revised TRAN-1 form beyond the limitation period was not accepted. The department also argued that the decision in Brand Equity Treaties Ltd. And Ors. v. Union of India, [2020] 116 taxmann.com 415 (Delhi) is no more valid in view of the Finance (Amendment) Act, 2020 under Section 140 of the CGST Act, 2017. According to department, with the insertion of the words “within such time” in Section 140 (1) retrospectively, the Central Government has been granted the power to prescribe the time limit for filing TRAN-1 and hence the finding of this Court in Brand Equity Treaties Case (supra) that the limitation period under Rule 117 for filing TRAN-1 is merely directory and not mandatory is no longer valid.

The Appellant relied upon several decisions of the Hon’ble High Court including Brand Equity Treaties Case (supra) to argue that the several Courts have permitted the similarly situated taxpayers to file the Form GST TRAN-1 beyond stipulated period of time even to those taxpayers, who may not have faced “technical glitch on the portal” but were otherwise prevented in filing the TRAN-1 form on account

LAW & REPRESENTATION COMMITTEEChairman: Mahendra Sanghvi | Co-Chairman: Apurva Shah | Vice-Chairman: Vyomesh PathakConvenors: Deepak Jain, Adit Shah | Advisor: Vipul Joshi

The Vivad Se Vishwas Scheme 2020

Dear Member,

As you might be aware, The Vivad Se Vishwas Scheme 2020 has now been extended till 31st December 2020. However, we understand that our members are facing various practical difficulties while filing forms on behalf of their clients as well as from queries which are being raised by Designated Officers/ Assessing Officers in charge of the cases where an application is filed and some of these are impractical to deal with during lockdowns.

The Chamber of Tax consultants (CTC) is in the process of making a representation to bring these difficulties to the attention of the CBDT and seeking appropriate redressal.

In the above connection, we request you to please send us a description of the difficulties faced by you along with supporting evidence if any and we shall collate the same and make a suitable representation incorporating all the issues highlighted.

Please email your queries to [email protected] and mark the email subject as: V2VS URGENT

The CTC continues its long standing commitment to understand issues faced by members and make suitable representations at appropriate forums for redressal in a timely and efficient manner and seeks your support for the same. Please bring to our attention any such issues faced by sending an email to [email protected] with email subject marked as Law and Representation Committee (LRC) Request.

Sincerely,

Team LRC 20-21

President: CA Anish Thacker

Chairman: CA Mahendra Sanghvi


of certain human errors or factors and reasons which were beyond their control. The Petitioner further submitted that irrespective of the said decisions, since admittedly the TRAN-1 form in the case of the Petitioner was filed well before the specified date, notwithstanding the benefit granted by the Court in the said judgment, the Petitioner is entitled to transition the credit.

Judgement: The Hon’ble High Court held that the presumption of department that the Finance (Amendment) Act, 2020 under Section 140 of the CGST Act, 2017 renders the decision of this court in Brand Equity Treaties Case (supra) no longer valid is incorrect. As per the Hon’ble High Court, the relief granted to the taxpayers in Brand Equity Treaties Case (supra) was not entirely resting on the fact that CGST Act, 2017 did not prescribe for any time limit for availing the transition of the input tax credit, rather the relief was granted on several counts. Hence, Hon’ble High Court held that the decision in Brand Equity Treaties Case (supra) still holds good. The Hon’ble High Court also relied upon the GST Council 32nd Meeting wherein it was recognized that there could be errors apparent on the face of the record that could be non-technical in nature and merit leniency. In line with the spirit of the decision of the GST Council and the blurring thin line between technical and non-technical difficulty, keeping in view that entire filing is electronic, the Hon’ble High Court held that the restrictive applicability of Rule 117 (1A) to be arbitrary. The Hon’ble High Court further held that transitional provisions and the language of Section 140 of the Act in particular, even after amendment, manifests the intention behind the said provision is to save the accrued and vested ITC under the existing law. The Hon’ble High Court further held that both the Act and Rules do not provide any specific consequence on failure to adhere to the timelines. Since the consequences for non-compliance are not indicated, the provision has to be seen as directory. The Hon’ble High Court further held in the present case, the mistake was clerical in nature. Therefore, the revision cannot be treated as a fresh filing. According, Petitioner was permitted to revise TRAN-1 Form on or before 30.06.2020 and transition the entire ITC, subject to verification by the Respondents.

M/s SKH Sheet Metals Components Private Limited vs. U.O.I, High Court of Delhi decided in W.P.(C) 13151/2019 dated 16.06.2020.

2. Whether the banks can avail credit of service tax paid by the banks for the service provided by the Deposit Insurance and Credit Guarantee Corporation (“DICGC”) in relation to insuring banks deposits with DICGC?

Facts and Pleadings: The Appellants herein are all banking companies that are inter-alia engaged in the banking business. The Appellants are mandatorily required to insure their deposits with Deposit Insurance and Credit Guarantee Corporation (“DICGC”), a subsidiary of the Reserve Bank

of India (“RBI”). DICGC protects small depositors in the event of Appellants’ failure by insuring the deposits up to Rs.1,00,000 per depositor (now amended to Rs.5,00,000). The banks availed Cenvat credit of the service tax charged by DICGC on the insurance premium paid.

The department has denied the said Cenvat credit on the count that as no consideration was charged by the Appellants in relation to acceptance of deposits, it was only a transaction in money and therefore, was outside the scope of service tax under Section 66D(n) of the Finance Act, 1994. The Department also alleged that for any service to be qualified as input service, it should be consumed or used for providing taxable output services. The input service should have direct nexus with the output service. DICGC Insurance is aimed at protecting the interest of the depositors against the failure of the bank i.e. the Appellants and does not provide any protection to the Appellants. Hence, as per department the service provided by DICGC would not qualify as a direct input service for the output services performed by a bank on which service tax is paid.

The Appellants argued that DICGC insurance service was covered under main part of the definition of ‘input service’ and was also mentioned in the ‘inclusive portion’. The Appellants further argued that the activity of accepting deposits was integrally connected to the lending activities of the Appellants under which service tax was discharged under the category of ‘Banking and Other Financial Services’ on various incomes. As per the Banking Regulation Act, 1949 and Deposit Insurance and Credit Guarantee Corporation Act, 1961, the Appellants are statutorily required to insure the deposits. Therefore, it is a statutorily obligation without which the Appellant cannot function at all. The Appellants are engaged in “accepting” deposits and not “extending” deposits and so Section 66D(n) of the Finance Act, 1994 would not be applicable. The Appellants also argued that even if it is assumed that some part of the deposit was not used for provision of output services, Cenvat credit cannot be denied as 50% of the total Cenvat credit was already reversed in view of Rule 6(3B) of the Cenvat Credit Rules, 2004.

Judgment: The Hon’ble Larger Bench of CESTAT held that it is mandatory for all banks to register themselves with the DICGC and failure to pay the premium amount to DICGC may lead to cancellation of its licence with RBI. The Hon’ble Larger Bench of CESTAT the insurance service received by the banks from the DICGC is not only mandatory but was also commercially expedient. The service rendered by the DICGC to the banks would fall in the main part of the definition of ‘input service’ and such Cenvat credit would be eligible. The Hon’ble Larger Bench of CESTAT also held that as per Section 66D(n), the activity of services by way of extending deposits, loans or advances is under negative list and will not include the activity of accepting deposits from the customers for which the banks pay interest to the customers. The Hon’ble Larger


Bench of CESTAT further held that when reversal under Rule 6(3B) of the Cenvat Credit Rules, 2004 was done by the Appellants, they were entitled for credit of the entire amount of service tax paid on input service having nexus with the provision of output service.

M/s. South India Bank vs. CC,CE & ST, Calicut, Larger Bench of CESTAT, Bangalore decided in Interim Order Nos. 13 - 31 / 2020 dated 20.03.2020

3. Whether the services provided by a reinsurance broker to reinsuring company located abroad and insurance company located in India should be considered as export of service or otherwise when the ‘Reinsurance Brokerage’ is received in INR?

Facts and Pleadings: M/s. Bharat Reinsurance Brokers Pvt. Ltd. (hereinafter referred to as “the Appellant”) acts as reinsurance broker and arranges for reinsurance of Indian insurance companies with overseas reinsurers. The appellant identifies appropriate reinsurers located abroad for the Indian Insurance companies and negotiates terms of contracts with them. For this service, the Appellant gets a commission called ‘Reinsurance Brokerage’ by deducting his brokerage from the premium received from the insuring company and passing the balance to the reinsuring company.

The department argued that the Appellant provides services to the Indian Insurance companies for which remuneration is received in Indian Rupees from foreign insurance companies and hence, the same does not qualify for export of service. In this regard, the Department also relied upon Suprasesh General Insurance Services & Brokers Pvt. Ltd. [2009(13)S.T.R 641 (Tri.-Chen.)] wherein it was held that reinsurance brokerage received in Indian rupees does not amount to export of services because the amount has not been received in convertible foreign exchange and confirmed the service tax on such amounts.

The Appellant submitted that the aforesaid allegation of the department is not sustainable on the count that the Hon’ble High Court of Madras in the case of Suprasesh General Insurance Services & Brokers Pvt. Ltd. vs. CST, Chennai [2016(41)S.T.R 34 (Mad.)] had reversed the aforesaid decision of Hon’ble CESTAT in Suprasesh General Insurance Services & Brokers Pvt. Ltd. [2009(13)S.T.R 641 (Tri.-Chen.)] and hence, the same is not correct position of law.

Judgement: The Hon’ble CESTAT relied upon the decision of Hon’ble High Court of Madras in the case of Suprasesh General Insurance Services & Brokers Pvt. Ltd. vs. CST, Chennai [2016(41)S.T.R 34 (Mad.)] to held that in the present case, the Appellant is rendering services to foreign reinsurance company rather than the Indian insurance companies. The Hon’ble CESTAT further held that even though the Appellant gets ‘Reinsurance Brokerage’ by deducting his brokerage from the premium received from the insuring company, the same is paid by foreign reinsurer

to the Appellant, thus the consideration for such service also flows from foreign reinsurer and not from the Indian insurance companies. Further, the Hon’ble CESTAT also held that such cases amount to export of service and that the ‘Reinsurance Brokerage’ retained as brokerage in Indian Rupees by deducting instead of remitting the entire amount abroad and receiving back foreign currency should be treated as receipts for export in foreign currency.

Bharat Reinsurance Brokers Pvt. Ltd. vs. CCE, CESTAT, Hyderabad, decided in Final Order No. A/30877/2020 dated 10.06.2020.

4. Whether the service provided by M/s. Karnataka Industrial Areas Development Board under the provisions of Karnataka Industrial Areas Development Act, 1966 shall be considered as statutory functions and hence, not leviable to service tax under the Finance Act, 1994?

Facts and Pleadings: M/s. Karnataka Industrial Areas Development Board (KIADB, for short) is established under Karnataka Industrial Areas Development Act, 1966 (“KIAD Act, 1966”). The Appellant performs various statutory/sovereign functions assigned to it under provisions of KIAD Act. Accordingly, the Appellant has provided various taxable Services such as Renting of Immovable Property Services, Construction of Commercial and Residential Complexes, Business Support Services, Management, Maintenance or Repair Services, Manpower Recruitment and Supply Services, Works Contract Services, etc., to various clients.

The case of the department is that Service Tax is leviable on the said taxable services and payable by the Appellant as per provisions of law, the Appellant did not discharge any service Tax liability thereon. The department alleged that a conjoint reading of the provisions of the KIAD Act clearly indicate that Appellant has its own identity as distinct from the State Government and is a body corporate with perpetual succession and a common seal, and may sue and be sued in its corporate name. The receipts of the appellant are credited to its own fund and do not go to the Consolidated Fund of the State. If that be so, the activities undertaken by it cannot be construed as functions of the State. The department also alleged that leasing of land by the appellant on its own account to private individuals on commercial consideration cannot be said to be a sovereign function at all as normally understood. The department further alleged that the Appellant being an instrumentality of the State is not entitled to claim immunity from payment of service tax. The department also alleged that the appellant does not have the power to acquire the land by itself and hence the appellant is not empowered to exercise the power of ‘eminent domain’ and hence it cannot be regarded as sovereign authority.

The Appellant mainly contended that the appellant is a Government undertaking and being a ‘State’ as defined in Article 12 of the Constitution of India are not liable to


pay service tax. The Appellant also relied upon the decision of the Bombay High Court in the case of CCE, Nashik Vs. Maharashtra Industrial Development Corporation [2018(9) GSTL 372 (Bom.)] wherein the Bombay High Court has held that no service tax could be demanded on the charges collected by Maharashtra Industrial Development Corporation in terms of the Maharashtra Industrial Development Act, 1961 towards maintenance of the industrial areas, as the same is in the nature of statutory functions performed in terms of the statute. The Appellant also submitted that all other functions rendered by the appellant being incidental, cannot be brought to tax. Further, the Appellant also stated that it is not carrying out commercial activities for a consideration and the amount of deposit collected by the Appellant is based on principles of rationality and reasonableness.

Judgement: The Hon’ble CESTAT held that a careful reading of the aforesaid provisions of KIAD Act and KIADB Regulations would clearly go to show that the appellant is a State undertaking and creature of a statute to exercise the power of ‘eminent domain’. The appellant is engaged in discharging statutory functions under an act of Legislature viz. KIAD Act, 1966. It is a statutory body performing statutory functions and exercising statutory powers. Once carrying out the objectives of the Act, then it cannot be treated as a service provider under the Finance Act, 1994. Further, Hon’ble CESTAT held that there is no service provider-client relationship so as to warrant the levy of service tax under the provisions of Finance Act, 1994. Appellant has undertaken various activities and functions in the State of Karnataka as per the directions of the State Government given from time to time under the provisions of the Act and hence their activities cannot be considered as taxable service and no service tax can be levied for these activities. Hon’ble CESTAT held that in view of the decision of the Bombay High Court in the case of CCE, Nashik Vs. Maharashtra Industrial Development Corporation [2018(9) GSTL 372 (Bom.)] when the maintenance of industrial area itself is held to be statutory function, then the main function of acquisition of law, development of such land into industrial area and allotment of such land on lease-cum-sale basis by the Appellant would certainly be a statutory function and does not attract levy of service tax. On the same analogy, Hon’ble CESTAT held that other functions being incidental cannot be brought into tax net.

M/s. Karnataka Industrial Areas Development Board vs. CCT, CESTAT Bangalore, decided in Final Order No. 20357/2020 dated 09.06.2020.

5. Whether the preparation of Whole Wheat parota and Malabar parota be classified under Chapter heading 1905, attracting GST at the rate of 5%?

Facts: The Applicant is a food products company involved in preparation & supply of wide range of ready to cook, fresh foods including whole wheat parota and Malabar parota. The aforesaid products whole wheat parota and Malabar (refined flour) parota, are made up of whole wheat flour and refined flour (maida), respectively. The other common ingredients are RO purified water, edible vegetable oil or refined oil, edible common salt and edible vegetable fat. The products are not readily consumable (ready to eat), but need to be heated before consumption. The instant application pertains to classification of whole-wheat parota & Malabar parotta.

The Applicant contended that the product merits classification under Chapter heading 1905, under the product description of ‘Khakhra, plain chapatti or roti” and therefore are taxable at 5% GST, in terms of entry No.99A of Schedule I to the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017. The Applicant relied on the ruling passed by the Advance Ruling Authority, Maharashtra, in the case of M/s Signature International Foods India Private Ltd., wherein it was held that paratha & paratha wraps are covered by the scope of entry 99A of Notification 34/2017-Central Tax (Rate) dated 13.10.2017.

AAR Observations: The AAR observed that the present products having description “parota” cannot be classified under the heading 1905 the products covered under heading 1905 are already prepared or completely cooked products and no further process is required to be done on them for consumption and hence they are ready to use food preparations whereas in the instant case, the impugned products are admittedly not ready for consumption, but need to be heated before consumption. The AAR further observed that the present products having description “parota” is best classifiable under heading 2106 90 which covers Preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk, etc.), for human consumption, provided that they are not covered by any other heading of the Nomenclature. In the instant case, the impugned goods i.e. ‘parota’ are not covered under any other heading and also need to be processed for human consumption. Therefore, the impugned goods are rightly classifiable, more specifically, under heading 2106 90. Further, the AAR also observed that as the present products having description “parota” are neither khakhra, plain chaptatti nor roti, hence, the benefit of 5% GST, in terms of entry No.99A of Schedule I to the Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017 is not applicable.

M/s. ID Fresh Food (India) Pvt Ltd, The Authority for Advance Ruling in Karnataka, GST decided in Advance Ruling No. KAR ADRG 38/2020 Dated: 22.05.2020.

Note : THE FULL DECISIONS CAN BE DOWNLOADED FROM THE WEBSITE WWW.CTCONLINE.ORG UNDER SEMINAR PRESENTATIONS - UNREPORTED DECISIONS


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