Appellate Orders

The Ruling Pronounced by the AAR in Advance Ruling No. 125 /AAR / 2023 dated 20.12.2023 stands modified to the extent that only the actual value in monetary terms extended to the employee concerned in the course of or in relation to employment, qualifies as a 'perquisite', and it squarely falls within the ambit of entry No.1 of Schedule III of the CGST/TNGST Acts, 2017. Whereas, the car lease amount recovered in actual terms by the appellant-company while extending the facility of car to its employees, cannot be considered as a 'perquisite' and accordingly taxes under GST are applicable on the same, as it does not get covered under the entry No.1 of Schedule III of the CGST/TNGST Acts, 2017

The AAAR held that the preliminary objections raised by the Respondent against the appeals filed by the department against the Advance Ruling dated 16.06.2022 are not sustainable and the appeals are maintainable and deserve to be decided on merits. The Respondent is, therefore, hereby requested to make submissions on merits and appear for personal hearing as and when fixed. ( This order has been passed for deciding the maintainability of the appeal in compliance of Hon'ble High Court of Rajasthan Order dated 22.09.2022 in DB civil W.P. No. 14009/2022 )

The AAAR held that selling of old used iron scrap, used lead acid batteries, old used Aluminium utensils & other Aluminium Scrap, old & used brass utensils and other scrap, used old steel utensils scrap, old used scrap of copper, used waste plastic bags & used plastic PET bottles etc are not covered under the Margin Scheme notified under Rule 32(5) of the CGST Rules, 2017 and as the goods are not qualified as second hand goods, thus, the benefit is neither available for intra state supply of goods nor inter-state supply of goods.

Appeal dismissed as infructuous.

The appeal being incomplete for want of deposition of requisite fee as mandated in GST Law was rejected.

Classification of FRK (Fortified Rice Kernels)

The Appellant is not eligible for ‘NIL’ rate of tax on the said “Abhivahan permission Shulk”

Rejected/damaged paddy is not fit for human consumption, it would be liable for 5% rate.

The Applicant is NOT entitled to avail the Input Tax Credit charged on inward supply of motor vehicles which are used for demonstration purpose in the course of business of supply of motor vehicle as input tax credit on capital goods. As by capitalising the motor car it is treated as asset for use in the business and therefore such motor car cannot be said to be held for further supply.The ruling passed by AAR is upheld.

The ruling dated 23.03.2019 given by AAAR, Goa being consistent with the extant statute, requires no rectification. Hence, the rectification application is rejected.