Appellate Orders

The Ruling of the AAR is in tune with legal position and it needs no interference and the appeal is accordingly dismissed.

Uphold the decision of the Authority for Advance Ruling, A.P confirming that the work contracts service rendered by M/s Vijai Electricals (the appellant) to APEPDCL is not eligible for concessional rate of tax 12% as per serial no. 3 of entry no.vi (a) of notification no. 24/2017 Central Tax (Rate) dated 21-09-2017.

M/s. Jayalakshmi Tobacco Company in their letter dated 13-02-2019 stated that they had applied for cancellation of registration and they no longer required any ruling and requested to consider their application for Advance Ruling as withdrawn.

The Appellate Authority for Advance Ruling after thorough examination of the facts presented and procedural lapses noticed reject the appeal without going into the merits of the case.

The applicant has raised a new issue for clarification, which was not placed before the Advance Ruling Authority, i.e, to decide whether the transactions are export (zero rated) or not. Hence, we direct the Advance Ruling Authority to issue necessary ruling after hearing the applicant afresh, and taking a wholistic view of the applicant's plea.

The ruling given by AAR-Goa being consistent with the extend statue is maintained. The appeal is rejected.

The decision of the AAR Goa in the present case is consistent with and based on a fair, proper interpretation of the extend statutory provisions, and hence requires to be maintained as legal and proper.

The ruling given by AAR-Goa being consistent with the extend statue is maintained. The appeal is rejected

Partially modify the ruling passed by the Maharashtra Advance Ruling Authority Vide Order No GST-ARA-66/2018-19 B-162 dated 19.12.2018, and answer the questions, raised by the Appellant in their Appeal filed before us, as under:

1. Whether availment of common input supplies on behalf of other unit/units registered as distinct person and further allocation of the cost incurred for same to such other units qualifies as supply and attracts levy of GST?

Yes, availment of common input supplies from the third-party service vendors/suppliers on behalf of the Branch Offices/Units, registered as distinct persons will qualify as supply of services in accordance with the provision of Section 7(1)(a) of the CGST Act, 2017. However, the cost of the said common input services availed on behest of Branch Offices/Units and allocated to the Branch Offices/Units by the Head Office will not attract the levy of GST as the said costs have been incurred by the Head Office in the capacity of a pure agent of the Branch Offices/Units, and as such, the said cost incurred by the Head Office shall be excluded from the value of supply of the facilitation services.

2.If GST is leviable, whether assessable value can be determined by arriving at nominal value?

The assessable value of the services provided by the Head Office to the branch offices/units can be determined as per the the second proviso to clause(c )of  Rule 28 of the CGST Rules, 2017, which provides that value of the tax invoice will be deemed as the open market value of the services.

3. Once GST is levied and ITC thereof is availed by recipient unit, whether the Applicant is required to register itself distribution of ITC on common input supplies?

Since, the Head Office is not entitled to avail and utilize the credit of tax paid to the third-party service vendors for the common input services received by it on behalf of the Branch Offices/Units as the said common input services received by the Appellant's Head Office are being used or consumed by the Branch Offices/Units in the course or furtherance of their businesses, and not by the Head Office. Therefore, the Appellant is bound to take the ISD registration as mandated by section 24(viii) of the CGST Act, 2017, and comply with all the provisions made in this regard, if it intends to distribute the credit of tax paid on the common input services received by it, on behalf of the branch offices units, to the branch offices/units.

It was hold that the body building and mounting of body on the chassis of different models of Tippers, Tankers, Trucks and Trailers, on the chassis to be supplied by the Principal, on delivery challan, by collecting job work charges for such fabrication work is taxable @18%, in accordance with Circular No. 52/26/2018-GST dated 09-08-2018, subject to fulfillment of all the conditions prescribed in the Section 141 and 143 of the CGST Act, 2017 read with relevant Rules / Notifications.