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GST case laws updates

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1. ‘Psyllium Husk Powder’ is Taxed @ 5% and Classified Under Tariff Item 12119032
Psyllium Husk Powder, a preparation made from Psyllium Plant or its parts is classifiable under HSN 12119032 and attracts GST @ 5% (CGST 2.5% + SGST 2.5%) as provided under Notification No. 1/2017 Central Tax (Rate) dated 28.06.2017 (as amended)

2. Tanks & its Parts are Classified Under CTH 87100000: TN AAR
‘Tanks’ are classifiable under CTH 87100000 while tank parts which satisfy essential conditions i.e. they must be identifiable as being suitable for use solely or principally with tanks and must not be    excluded by provisions of Notes to Section XVII and must not be more specifically included elsewhere in Nomenclature, are only to be classified as ‘Parts’ under CTH 87100000

3. Fusible Interlining Cloth is Not a Woven Fabric & Falls Under HSN 5903
GST : Where appellant is engaged in manufacturing ‘fusible interlining cloth’, in view of fact that it is not a case where cloth is partially coasted withe plastics and that dotted design results from treatment leading to such coasting, exclusion clause (4) of Chapter note 2(a) of Chapter 59, is not  applicable and, thus, subject product merits classification under Heading 5903

4.   Presence of Advocate Not Required at Time of Search Proceedings Under GST
GST : Provisions of section 67 do not require presence of an Advocate at time of search proceedings and, thus, assessee’s request for same could not be allowed.

5.   Transitional Credits: Time Limit Under Rule 117 is Mandatory and Not Directory
Madras HC ruled that object and purpose of Section 140 clearly warrants the necessity of time limit for transitional credit to be finite. Time limit permitting availment of Transitional ITC, in perpetuity, would render the provision unworkable. Thus, time limit under Rule 117 is mandatory and not  directory.

6. Coal Handling and Distribution Charges will be taxable @ 18% Wherever Supply of Service is Directly to Customers
The Authority of Advance Ruling (AAR) Madhya Pradesh ruled that 18% of GST on coal handling and distributor charges whenever the supply of such service is intended to be made expressly to the consumers.

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