2021-TIOL-129-AAR-GST

SKF Boilers And Driers Pvt Ltd

GST - Parboiling and Drying plant is classifiable under HSN 8419 and attracts GST @18% in terms of Entry No.320 of 01/2017-Central Tax (Rate) – This view is taken in view of the Larger Bench judgment in the case of Jyoti Sales Corporation = 2016-TIOL-2848-CESTAT-CHD-LB where it is held that par boiling machine and dryer is classifiable under Heading 8419 of the Central Excise Tariff and there being no stay on the order by the Apex Court which is also in conformity with the Board's Circular No. 982/06/2014-CX , dated 15-05-2014 issued in F.No.167/42/2009-CX.1, Authority observes that the goods under reference merits classification under 8419 and not under HSN 8437 as part of rice milling machinery : AAR

- Application disposed of: AAR

2021-TIOL-128-AAR-GST

Kou Chan Technologies Pvt Ltd

GST - Applicant proposes to operate a mobile based taxi aggregation service, on a pan-India basis under the trade name "DYUT RIDES" - They have sought ruling in respect of various issues and the same are as under - 1. Do the various supplies (of the applicant, the vehicle owner, the driver and the associate partner together) qualify as Composite supply? - No, it's not a composite supply. 2. Do the pick-up charges paid to the owner / driver fall under GST rate of 5%? - Yes, the pick-up service is incidental to the main service of transportation of passengers by radio taxi and hence the pick-up charges form part of the service of transportation of passengers by a radio taxi and hence the applicant is liable to pay GST @ 5%, on such pick-up charges. 3. The Associate Partner renders services to the passengers and to the drivers/ vehicle owners directly, and in that case does any supply of service exist between the applicant /aggregator and the Associate partner, and if yes, what is the rate at which GST has to be collected and remitted? - 18 % by associate partners in case the associate partner is registered under GST. Where the associate partners are not registered under GST, no GST is leviable on the amount remitted to the associate partner. 4. Does the amount received from drivers/ owners towards bidding get covered in the 5 % GST or should it be separately charged at 18%? - It should be paid at 18%. 5. Does the goodwill bonus being paid by passenger to the driver and on which the applicant collects the service charges, attract GST and if so at what rate? - Yes at 18 %. 6. Do the charges for cancelling the trip for any reason attract GST liability? - Yes at 18 %. 7. Do the charges for insurance come under composite supply? - No. 8. If the principal supplier / applicant collects GST, say at 5% along with fare from passengers (as mentioned in the Table submitted by the applicant), does it amount compliance of the GST Rules? - No. the applicant needs to discharge 18% on its other income.

- Application disposed of: AAR

2021-TIOL-223-CESTAT-HYD-LB

Dharti Dredging And Infrastructure Ltd Vs CCT

ST - Appellant availed Cenvat credit of service tax paid on insurance premium paid in respect of "workmen compensation insurance policy", which was denied by the lower authorities - When this matter was heard by the Single Member (Judicial), he found that contrary views had been expressed on the same issue by two benches of the same strength (both single member benches) [namely, Hydus Technologies India Pvt Ltd. 2017-TIOL-1189-CESTAT-HYD which allowed the credit & Ganesan Builders Ltd. 2017-TIOL-3152-CESTAT-MAD which denied the same , hence, the matter has been referred to a larger Bench for a decision.

Held:

++ Decision of the CESTAT-Madras (supra) in Ganesan Builders has been overruled by the High Court of Madras [ 2018-TIOL-2303-HC-MAD-ST ] specifically dealing with "workmen compensation insurance policy". The Hon'ble High Court of Madras has held that the Workmen Compensation Act, 1923 is a beneficial legislation and the policy taken by the assessee in that case does not name the employees but categorised the employees based on their vocation/skill. The insured in that case is the assessee and the intention of the policy is to protect the employees who work at the site and not to drive them to various forums for availing compensation in the event of an injury or death. The service in that case was not primarily for personal use or consumption of employee and the insured is the assessee and not the employees. [para 21]

++ Present case is identical to the case of Ganesan Builders decided by the Hon'ble High Court of Madras inasmuch the policy in question pertains to workmen compensation scheme. The insured, as can be seen from the insurance policies is the assessee/appellant and not the individual employees. In other words, the benefit of the policy, if any, goes to the assessee and not to the individual employees. It is not like health insurance taken for the benefit of employees. We find from the Workmen Compensation Act, 1923 that Section 3 places the liability for compensation upon the employer. Section 4 determines the amount of compensation to be paid. If the assessee had not taken this insurance policy the employees would still be eligible for full compensation as per sections 3 and 4 of the Workmen Compensation Act, 1923. What is sought to be covered by these insurance policies in the present case is the liability of the assessee against any potential claim under sections 3 and 4 of the Act. [para 23]

++ In the present case, the workmen are not the beneficiaries of the policy but it is the assessee. Therefore, the benefit of the insurance in the present case flows directly to the assessee themselves and not to individual employees. Therefore, the present policy is not excluded by clause (C) of Rule 2(l) as has been held by the Hon'ble High Court of Madras in the case of Ganesan Builders. [para 26]

Conclusion: [para 30]

++ View expressed by the Tribunal Hydus Technologies India lays down the correct position in law. The view expressed by the Tribunal in Ganesan Builders has been over ruled by the Madras High Court in Ganesan Builders Ltd. = 2018-TIOL-2303-HC-MAD-ST .

- Reference answered :HYDERABAD CESTAT