GST Daily
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Today’s newsletter analytically summarizes the top GST stories reported at taxmann.com.
The petitioner filed an application seeking bail in the proceedings initiated under Section 132 before the High Court. The allegations against the petitioner were with regard to the transportation of unmanufactured tobacco and it was alleged that such procurement of unmanufactured tobacco was for clandestine manufacture and supply of zarda without payment of leviable duties and taxes. However, the High Court of Rajasthan dismissed the application. Therefore, the petitioner filed a special leave petition before the Supreme Court.
The Honorable Supreme Court noted that the petitioner was arrested on 21.07.2022 and while in custody, the investigation had been completed. Moreover, the charge sheet had been filed and the alleged evasion of tax by the petitioner under Section 132(1)(l)(i) would be punishable with imprisonment which may extend to 5 years and a fine. The Court also noted that the petitioner had already undergone incarceration for more than four months and completion of the trial would take some time. Therefore, it was held that the bail should be granted as there can be no apprehension of tampering, intimidating or influencing in view of the fact that evidence to be tendered by the department would essentially be documentary and electronic.
The applicant was carrying on the business of bodybuilding of commercial vehicles where the customer would purchase the chassis and handover to the applicant for fabricating the body. It filed an application for an advance ruling to determine the taxability of work done by bodybuilding of commercial vehicles.
The Authority for Advance Ruling observed that the applicant would be fabricating the body on the chassis belonging to the customer where ownership of the chassis would remain with the customer and at no stage of the process of fabrication of the body, the title of the chassis would be transferred to the applicant. Therefore, this activity would squarely be covered under Para 3 of Schedule II of the CGST Act, 2017 as a treatment or process applied to another person's goods. Accordingly, it shall be treated as a supply of services. Therefore, GST shall be leviable at a rate of 18% per entry at Sl No. 26 (iv) of Notification No. 11/2017 Central Tax (Rate) dated 28.6.2017.
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