AAR CASES
2018-TIOL-76-AAR-GST
Sino Resources
Applicant seeks ruling on whether Input Tax Credit is available on Clean Environment (Energy) Cess paid at the time of import of coal.
Held: Input Tax under CGST refers to taxes chargeable under SGST, CGST&IGST Acts only - section 97(2)(d) refers to admissibility of input tax credit under GST Acts - Input Tax credit referred by applicant relates to transitional relief which is paid under the Act other than the Acts referred in the definition of Input tax under CGST - question does not fall under the ambit of Section 97(2)(d) of the CGST Act, 2017 -Application is beyond the jurisdiction of the authority, hence not admitted u/s 98(2) of the CGST Act, 2017: AAR
2018-TIOL-75-AAR-GST
Parsan Brothers
Goods which are received by applicant are within the Customs Area as defined u/s 2(11) of the Customs Act, 1962 - Accordingly goods cleared/supplied by applicant is to be treated as supply of goods in the course of inter state trade - goods supplied is also not an exempt supply as per s. 2(47) of CGST Act, 2017 as it is neither Nil rated or exempt by any notification - Applicant are, therefore, not exempted from tax under GST on their outward supplies made to ocean going merchant vessels on foreign run, Indian Naval Ships and Indian Coast Guard Ships - applicant can collect applicable GST from customers in case it is not exports, however, in case of exports, the option lies with the applicant based on manner of exports i.e. whether they intend to export under bond or on payment of tax: AAR
2018-TIOL-74-AAR-GST
Kanj Products Pvt Ltd
Clarification requested by applicant on the notification dated 05.10.2017 issued by DIPP, Ministry of Commerce and Industry read with CBEC Circular No. 1060/9/2017-CX dated 27 November 2017 are not issued under the provisions of the CGST Act, 2017 - moreover, advance ruling requested by applicant also does not fall under sub-clause (a) to (g) of Section 97(2) of CGST/SGST Act which provides list of subjects on which advance ruling can be sought - Application rejected: AAR
2018-TIOL-73-AAR-GST
Indo German Brakes Pvt Ltd
Disc Brake Pads and Brake Shoes' being used in automobiles are not ‘friction material' classifiable under heading 6813 but are correctly classifiable under SH 8708 of GST Tariff as other parts and accessories of motor vehicles of headings 8701 to 8705 and are chargeable to GST @28%: AAR
2018-TIOL-72-AAR-GST
SSSVK Cold Storage Pvt Ltd
Applicant provides space to farmers as well as traders for storage of agriculture product such as chillies, whole pulses, apples, potatoes, raw cashew nuts, oil seeds, maize, etc. in his cold storage - Applicant seeks advance ruling on whether such service falls under SAC 998619 or 996721 and applicable rate of tax etc. Held: Storage and warehousing of Agriculture produce falls under SAC 9986 and not under 9967 - exemption under notification 12/2017-CT(R) under entry no. 54(e) is applicable for agricultural produce of, both, farmers and traders: AAR
2018-TIOL-71-AAR-GST
Kanam Industries
E-rickshaw and powered cycle rickshaw are not one and the same but two different items - Tyres used in E-rickshaw are not tyres of powered cycle rickshaw and hence they are required to be classified under Chapter Heading 4013 of GST Tariff, 2017 and attract @28%: AAR
2018-TIOL-70-AAR-GST
Divisional Forest Officer
AAR - Ruling sought as to whether GST is leviable on ‘Marg Sudharan Shulk' and ‘Abhivahan Shulk' chargedby the Forest Division, Dehradun from the non-government, private and commercial vehicles engaged in mining work in lieu of use of forest road. Held: ‘Marg Sudharan Shulk' is nothing but toll charges collected by applicant from users for using forest road and the said toll charges are being used for maintenance of the forest road - no GST is applicable: AAR ‘Abhivahan Shulk' is charged and collected by applicant in respect of forest produce carried out by a person - from the Uttarakhand Transit of Timber and Other Forest Produce Rules, 2012, it is observed that a person who desires to obtain forest produce is required to be registered with the forest department after paying applicable fee and the said ‘Abhivahan Shulk' is charged on the basis of quantum and quality of forest product - it cannot be called as toll tax and rather is a form of consideration received by applicant in lieu of services provided to the person for carrying forest product - applicant is liable to pay GST @18% on the said ‘Abhivahan Shulk' under SAC 9997 as ‘Other services' : AAR
2018-TIOL-69-AAR-GST
C R Enterprises
AAR - Applicant is engaged in supply of scientific and technical instruments and have sought a ruling as to whether the said supplies made to Srihari Kota High Altitude Range (SHAR), SatishDhawan Space Centre is eligible for concessional rate of tax as per notification 45/2017-CT (R). Held: Outdoor MV Panel, Electrical Accessories, Copper Wires, Weather Proof Enclosures, Copper ballast, Smoke Detection systems, Trunking system for power distribution etc. do not appear to be covered under column 3 of impugned notification - concessional rate under notfn. 45/2017-CT(R) is not applicable: AAR
2018-TIOL-68-AAR-GST
Crux Bio Tech India Pvt Ltd
AAR - Advance Ruling sought on ‘classification and rate of tax for grain based extra neutral alcohol'. Held: It is observed that SCN proceedings were initiated by the jurisdictional authority well before filing the application before the Advance Ruling authority - furthermore, applicant has admitted that they have preferred WP 7734/2018 before the High Court of Hyderabad - as the application does not qualify the pre-requisites laid down in section 98(2) of the CGST Act, 2017, application is rejected: AAR
2018-TIOL-67-AAR-GST
Laurus Labs Ltd
Products manufactured by applicant, even though are bulk drugs, are squarely covered by List I, Sl. No. 180 - It is settled law that specific entry overrides the general entry - Applicant is eligible to claim benefit of lower rate of GST @5% under Sl. No. 180 of Schedule-I, notfn. 1/2017-CT(R) on supply of Efavirenz, Emtricitabine, Suntinib Malate, RaltegravirPotasium and Latanoprost: AAR
2018-TIOL-66-AAR-GST
Sammarth Overseas and Credits Pvt Ltd
Primary function of Roof Ventilators is to provide ventilation by continuous extraction of air from building - even in trade parlance these goods are identified as roof ventilators only and not as windmills - they are correctly classifiable under heading 8414 of Customs Tariff as adopted by GST - fall under Schedule III of Notification 1/2017-CT(R) and attract @18% (CGST + TGST) w.e.f 15.11.2017: AAR
2018-TIOL-65-AAR-GST
Rapid Electrodes Pvt Ltd
Lightning Arrester, Earthing pipe, Solid Rod earthing, Backfill compound are correctly classifiable under heading 8535, 8538, 7215 and 3924 respectively - service of installation of earthing system is classifiable under SAC 9954: AAR
2018-TIOL-64-AAR-GST
Nagarjuna Agro Chemicals Pvt Ltd
Tariff heading 8201 covers goods which are basically hand tools of a kind used in agriculture, horticulture or forestry whereas the main function of ‘soil testing minilab' is to determine important soil parameters viz. ph, EC, Organic carbon, available nitrogen, phosphorous, potassium sulphur and micronutrients and hence cannot be classified as hand tool - Agricultural Soil testing Minilab are correctly classifiable under Tariff Heading 9027 - Reagent Refills is a part of soil testing minilab and parts and accessories identifiable as being solely or principally for use with instruments/apparatus of heading 9027 are also be classified under heading 9027 - tax rate applicable for Soil testing minilab and refilling reagent is 9% CGST + 9% SGST: AAR
2018-TIOL-63-AAR-GST
Maheshwari Stone Supplying Company
Limestone slabs which have undergone the process of cutting and polishing and which have been worked beyond the stage of normal quarry products of Chapter 25 are classifiable under chapter heading 68.02, therefore, Polished/Processed Limestone Slabs are correctly classifiable under heading 6802 of the GST Tariff: AAR
2018-TIOL-62-AAR-GST
Macro Media Digital Imaging Pvt Ltd
Printed advertisement materials manufactured and supplied by applicant is ‘supply of goods'; are classifiable under chapter heading 4911 and attract @6% CGST, notfn. 1/2017-CT(R) & @6% SGST: AAR
2018-TIOL-61-AAR-GST
Aqua Machineries Pvt Ltd
GST - the applicant company manufactures & supplies Power Driven Pumps designed for handling waste, raw, storm or sewer water - Such pumps do not have measuring devices - The applicant seeks to know if the description “Power driven pumps primarily designed for handling water, namely centrifugal pumps (horizontal and vertical), deep tube-well turbine pumps, submersible pumps, axial flow and mixed flow vertical pumps” is applicable to the pumps, considering that the Chapter Heading 8413 does not differentiate between the nature of pumps used for dispensing an exact type of water - Also seeks to know whether such pumps attract GST @ 12%.
Held - In common parlance, reference to ‘water’ is understood in the sense of clear or raw water and not in the sense of ‘sewage’ - In commercial parlance also, ‘pumps primarily designed for handling water’ & ‘other pumps or pumps designed for handling sewage’ are distinctly known - The decisions rendered in context of notifications under the earlier tax regime, are inapplicable here - Hence pumps for sewage or waste would not be covered by Sl. No. 192 of Schedule II of Notification No. 1/2017-CT(R) - The corresponding Notfns issued under the GGST Act 2017 and the IGST Act, 2017 are inapplicable too - Hence the pumps are not eligible for GST @ 12% (CGST 6% + SGST 6% or IGST 12%): AAR
2018-TIOL-60-AAR-GST
Docsun Power Pvt Ltd
GST - the applicant manufactures, assembles, repairs & installs ‘Earthing Products' for electrical & electronic equipments - These are used for earthing purpose in industries, common buildings & other places - The materials required to produce ‘Earthing Products' consists of Mild Steel (MS) and Stainless Steel (SS), in solid rods and pipes - It also manufactures Earthing Pipe, Earthing Rods, Lightning Arrester & Back Fill Compound - The applicant seeks to know the classification of all these items. Held - ‘Lightning Arrester' is classifiable under Tariff Heading 8535 - ‘Earthing Pipe' is classifiable under Heading 8538 - ‘Solid Rod Earthing' is classifiable under Tariff Heading 7215 - ‘Back Fill Compound' is classifiable under Tariff Heading 3824 - Lastly, the service of installation of Earthing System is classifiable under Service Accounting Code 9954: AAR
2018-TIOL-59-AAR-GST
Dyna Automation Pvt Ltd
GST - the matter at hand pertains to the classification of the product Steering Unit (Hydraulic Orbital Valve) - Whether it falls under Chapter Heading 8481 or 8431 or 8708 of the Customs Tariff Act, 1975 - The applicant also seeks to know the applicable rate of GST.
Held - Since the articles of Tariff Heading 84.81 are specifically excluded from Section XVII, through Section Note 2(e) of the Customs Tariff Act, 1975, the product 'Steering Unit (Hydraulic Orbital Valve)' cannot be considered to be part of the vehicle - Hence it is classifiable under Tariff Heading 84.81 of the Customs Tariff Act, 1975 - Thereby, Goods and Services Tax rate applicable to Tariff Heading 84.81 is applicable to the said product: AAR
2018-TIOL-58-AAR-GST
Guru Cold Storage Pvt Ltd
GST - the applicant seeks to know whether the cereals, pulses, spices, copra, jaggery (Gur), groundnuts (with or without shell), groundnut seeds, turmeric dried and ginger dried (soonth), cashew, almond, kismis, jardalu, anjeer (fig), date, ambli foal, classify as 'Agriculture Produce' under Notification No. 11/2017-Central Tax (Rate) - Also whether the taxability of such goods changes if they are received for storage either in bulk packing or small or retail packing with or without name or brand name, which is not registered under the Trade Mark Act, 1999 where no further processing is done or such processing is done which does not alter its essential characteristics but makes its marketable for primary market.Held - Pulses (de-husked or split), jaggery, processed dry fruits such as processed cashew nuts, raisin (kismis), apricot (jardalu), fig (anjeer), date, tamarind (ambali foal), shelled groundnuts & groundnut seeds, and copra are not agriculture produce - Besides 'Cereal' on which any processing is done as is not usually done by a cultivator or producer will fall outside the definition of agriculture produce - Moreover, processed spices including processed turmeric and processed ginger (soonth), are not agriculture produce - However, groundnuts with shell, turmeric and ginger on which no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but make it marketable for primary market, would fall within definition of agriculture produce - Lastly, whole pulse grains such as whole gram, rajma and 'cereal' on which no further processing is done or such processing is done as is usually done by a cultivator or producer which does not alter its essential characteristics but makes it marketable for primary market, fall under the definition of agriculture produce: AAR
2018-TIOL-57-AAR-GST
RB Construction Company
GST - the applicant seeks to know whether any work executed & invoice to be raised for the pending event of testing and commissioning after the implementation of GST amount to supply, and specifically supply of works contract - Also whether the applicant is entitled to avail proportionate credit worth 10% duty of excise and VAT paid on materials bought vide invoices showing Excise and VAT separately under the transition provisions.
Held - The activity of laying underground pipeline network falls under "works contract" u/s 2(119) under the CGST Act, 2017 and the GGST Act, 2017 - In respect of that part of supply wherein time of supply is on or after the appointed date, GST is required to be paid - Thereby, the applicant is ineligible for availing input tax credit u/s 140(6) of the CGST Act, 2017 and the GGST Act, 2017: AAR
2018-TIOL-56-AAR-GST
Shree Vishwakarma Engineering Works
GST - the applicant manufactures electrically operated drum with bell and zalar - It seeks to know its classification under the Customs Tariff Act & whether the same is eligible for exemption under Sl. No. 143 of Notification No. 2/2017-Central Tax (Rate).
Held - the products are classifiable under Heading 9208 of the First Schedule to the Customs Tariff Act, 1975 - They are also ineligible for exemption under Sl. No. 143 of Notification No. 2/2017-Central Tax (Rate) and corresponding notification in GGST Act: AAR
