Appellate Orders

Appellate Authority uphold the order AAR/GST/PB/30 dated 10" of November, 2022 issued by the Authority for Advance Ruling, Punjab and the appeal filed by the appellant M/s Bansal Industries,

The Appellate Authority for Advance Ruling upheld the ruling given by the Advance Ruling Authority by observing that marine paints manufacture by the appellant will not be covered  under Sl. No. 252 of Schedule I of the Notification No. 1/2017-C.T.(Rate) dated 28.06.2017as the same can not be considered as part of the ship as contended by them.

The Appellate Authority for Advance Ruling upheld the ruling given by the Advance Ruling Authority by observing that  the Reactor manufactured by M/s. Taraltec Solutions Private Limited will be classified under the HSN 8413 91 instead of the HSN  8421 21 90 which is subject to 18% GST i.e.(CGST 9% + SGST 9 %).

The MAAR order No. GST-ARA-122/2019-20/B-54 dated 27.04.2022 is upheld with some modifications. It is held that reimbursement amount received by the Appellant from NEEM Trainers towards "stipend and other expenses incurred by the Applicant in accordance with AICTE Regulations to ensure wealth, safety and health Of NEEM Trainees" is not in capacity of pure agent. Thus, the appeal filed by the Appellant is rejected.

The AAAR upheld the ruling rendered under provisions of  98(4) the GST Act 2017 by Advance ruling  authority vide order  KAR ADRG 04/2018 dated 21-03-2018 oof GST is leviable on the rent paid /payable for the premises taken on lease.

The MAAR Order No. GST-ARA-50/2020-21/B-108 dated 01.12.2022 has been upheld in as much as  the transfer of monetary proceeds by the Applicant to IVL Sweden, will be liable for payment of Integrated Goods and Service Tax under reverse charge mechanism under Entry No.1 of Notification 10/2017 – IGST (Rate) dated June 28, 2017. Thus, the appeal filed by the Appellant is hereby rejected.  

The AAAR modified the ruling rendered by the AAR as under:- 

1) The supply of the PV module which is the major component of the solar power plant is not naturally bundled with supply of the remaining components & parts of the solar power plant and the supply of Services of Errection, Installation and Commissioning of the solar Power Plant.
2)The supply of the remaining portion of the contract in question which involves the supply of balance components and parts of the solar power plant and supply of services of errection, instalation and commissioning of solar power plant is viewed as a composit supply as the supply of goods and services are naturally bundled. The tax laibility on this portion of the contract in question (other than PV Module)which is tremed as "composite supply" will be determined in terms of section 8 of the CGST Act 2017,  where in the rate applicable to the dominanat nature of the supply will prevail.

The Advance Ruling Bearing No. GST-ARA-59/2020-21/B-56 dated 27.04.2022 has been upheld by the MAAAR. Therefore, the Appeal filed by the Appellant is, hereby, dismissed.

The AAAR modified the ruling rendered by the AAR is as under: - 
(a) The activity engaged in by the Appellant by way of granting the Central Brewing Unit the right to manufacture and supply beer bearing its brand name, in return for a consideration, is a supply of service as mandated in Section 7 of the CGST Act 2017, read with Clause 5(c) of the Schedule II of the said Act. 
(b) The supply of service by the Appellant is taxable to GST in terms of Section 9 of the CGST Act. 
(c ) The service supplied by the appellant is classified under the Service Code 999799 as “other services nowhere else classified” 
(d) The amounts received by the appellant from the contract brewing units under the agreement in the nature of Brand Fee and reimbursement of expenses is termed as a consideration for the supply of service and is chargeable to GST at the applicable rate of 18%.

We modify the impugned ruling classyfing the product of the appellant under Ch-2401 of GST Tariff subject to the process adopted by the appellant as provided under Explanatory Note to Ch-2401