Appellate Orders

The Appellate Authority held that the accumulated credit by way of Krishi Kalyan Cess (KKC) as appeared in the Service tax return of Input Service Distributor (ISD) on June 30, 2017 which is carried forward in the electronic credit ledger maintained by the Appellant under CGST Act 2017, shall not be allowed to be taken as admissible input tax credit.  Accordingly the order of AAR stands confirmed in terms of the above order. 

The order passed by the lower authority is upheld. The subject appeal is disposed accordingly.

Questions - 1. Whether supply is classifiable as composite supply of works contract service. Answer – No

Questions  - 2. Whether AMC can be included within the ambit of above composite supply.  Answer - Question was not raised earlier and hence, not determined by the Authority for Advance Ruling. Can’t be raised before this Authority.

The appellate authority confirmed the ruling pronounced by the Authority for Advance Ruling holding   that Cornerstone imported by the Applicant is to be classified under HSN code 6810.

Question 1. Whether the construction of Institute of Security and Law Enforcement studies at Addu City in Maldives, constructed for Government of Maldives under an Memorandum of Understanding between India and Maldives falls within the GST net?

Answer : -Yes, the supply is within the ambit of GST.

 Question  :- 2. Who is the recipient of service in the instant case?

Answer :- National Buildings Construction Corporation Limited, Delhi is recipient of service from the applicant

Question 3. What is the place of supply in respect of the works contract for setting up of the Institute of Security and Law Enforcement Studies at ADDU City in Maldives?

Answer :- The applicant who is the supplier of service & NBCCL who is recipient of service are located in India and therefore the place of supply is to be determined under Section 12 of the IGST Act. The proviso to Sub-Section (3) of Section 12 of IGST Act clearly mention that if the location of immovable property is intended to be located outside India, the place of supply shall be the location of the recipient i.e., NBCCL.

The Appellate Authority for Advance Ruling set aside the Advance Ruling Authority Order  and further held on the basis of the available records ,  that the whole (Sheep/Goat) animal carcass in its natural shape in frozen state in different weight and size packed in LDPE bags without mentioning the weight and one or two such LDPE bags further packed in HDPE bags being supplied to Army by appellant against tender shall not qualify as product put up in “Unit Container”.

1. The order passed by the lower authority is upheld.

2. The appellants are not eligible to take input tax credit of GST paid on supply of works contract service for payment of GST on their output service i.e., Renting of immovable property

The Appellate Authority for Advance Ruling upheld the ruling given by the Authority for Advance Ruling holding that the Liquidated Damages payble by the contractor the Appellant will come under the entry 5(e) of the Schedule II to the CGST Act and would fall under the Chapter Head 9997 and would attract GST at the rate of 18 %. 

The Supply provided by M/s Medha Servo Drives Private Limited (Appellant) to M/s Integral Coach Factory, Chennai is a mixed supply. Therefore the order passed by the Advance Ruling Authority is being upheld on this issue.

1. The services supplied by the applicant fall under ‘Advertising Services’, which is having a separate SAC code i.e., 998361.

 2. GSTis payable @ 18% as discussed above in terms of Serial No. 21 (ii) of Notification No. 11/2017-CT(Rate) dated 28.06.2017, as amended