Appellate Orders

Members of Uttarakhand Advance Ruling Authority have different views on Rejected wheat seed and rejected paddy seed. Therefore they made a reference to the appellate authority for hearing and discussion. After giving an opportunity of personal hearing Uttarakhand Appellate Authority for Advance Ruling gave ruling as follow:

1-Rejected wheat seeds are classified under Chapter sub heading 1001 11 00 (Durum) and 1001 91 00 (Others) of the GST Tariff 2017

2-Rejected paddy seeds are classified under 1006 10 10 of the GST Tariff 2017.

3-The applicable CGST & SGST rate on both the above goods is "NIL".

However if the rejected seeds are put up in a unit containers and bearing a registered brand name or a brand name on which an actionable claim or enforceable right in respect of such brand name has been foregone voluntarily, then the effective CGST & SGST rate on both will be 2.5% & 2.5.

The appellate authority modified said advance Ruling to the following extent:

(i)In addition to services listed in serial nos 1, 2, 12, 14 &18, six other services listed at serial nos. 3, 10,13,17 and 21 (being directly or closely related to the main service of distribution of electricity) and serial no.16 (mandatory requirement for obtaining electricity), are also fully exempt from GST

(ii) All other services as enumerated at serial nos. 4 to 9, 11, 15, 19, 20 and 22 of the Table-I above are ancillary in nature which are provided at specific request of the consumer and are not a compulsory service closely or directly related to generation or distribution of electricity. Hence, these services are leviable to GST at the prevailing rate of 18% (9% CGST+9 % SGST).

Members of Uttarakhand Advance Ruling authority have different view on the applicability of GST on the sub-contractor so they made a reference to the appellate authority for hearing and discussion. Appellate authority in the case that whether the exemption available for PWD Uttarakhand and M/s NHPC Ltd, can be extended to the sub-contractor also, decided that works contract services for the road construction provided by the sub-contractor to PWD, Uttarakhand, who in turn is providing works contract services of road

Construction to M/s NHPC Ltd is not exempted from GST.

Appellate authority for advance ruling are of the view that since there was no taxability till the stage of PWD on account of entry 9c of notification 12/2017 as amended time to time, so discussions and findings of the Learned AAR on this issue become irrelevant and hence infructuous and need to be set aside.

The following ruling were passed by the UK-AAAR authority.

(i) The ruling no. 09/2018-19 dated 22.10.2018 made by the Authority on Advance Rulings for the State of Uttarakhand is set aside.

(ii) Sale of sweets, namkeens, cold drinks and other edible items through restaurant will be treated as composite supply with restaurant supply being the principal service. Existing GST rates on restaurant service will also be applicable on all such sales and no input credit will be allowed.

(iii) Sale of sweets, namkeens, cold drinks and other edible items from sweetshop counter will be treated as supply of goods with applicable GST rates of the items being sold and input credit will be allowed on such supply.

(iv) The applicant should maintain separate records for restaurant and sweetshop with respect to input and output and billings as well as other accounting records should also be separately maintained.

Uttarakhand Appellate Authority on Advance Ruling partially modified the AAR Ruling only to the extent that out of Rs.19858100/ deposited by the appellant against demand notice of the District Magistrate, GST is to be paid by the appellant on Rs. 19658100/ at the appropriate rate applicable for entry serial 17(vi) of notification no. 12/2017-CT(R) dated 28/06/2017 on Reverse charge mechanism. No GST is payable on balance its 200000/ since the same is a penalty.

Confirm and uphold the decision of Authority for Advance ruling.

Confirm and uphold the decision of Authority for Advance ruling.

Modify the Order passed by the Authority for Advance Ruling vide AAR No. 16/AP/GST/2021 Dated  07.07.2021 and hold that the 'Mango Pulp / Puree' is classifiable under Tariff Item 0804 50 40 and chargeable to GST @18%, by virtue of entry No.453 of Schedule III in Notification No. 1/2017 Central Tax (Rate) Dated 28.06.2017.

Modify the Order passed by the Authority for Advance Ruling vide AAR No. 17/AP/GST/2021 Dated 14.07.2021 and hold that the 'Mango Pulp / Puree' is classifiable under Tariff Item 0804 50 40 and chargeable to GST @18%, by virtue of entry No.453 of Schedule III in Notification No. 1/2017 Central Tax (Rate) Dated 28.06.2017.