Appellate Orders

The Appellate Authority set aside the ruling No.KAR ADRG 49/2020 dated: 13.10.2020 passed by the Advance Ruling Authority and answer the question of the Appellant as follows:

"Renting of e-bikes/bicycles without operator is classifiable under SAC 9973 - Leasing or rental services without operator and rate of tax as applicable under entry Sl.No.17(via) of Notification No.11/2017 CT)R) dated 28th June 2017 as amended is applicable to the instant case."

The Appellate Authority dismiss the appeal filed by M/s Durga Projects & Infrastructure Private Limited, No.125/1-8, GK Arcade, T.Mariyappa Road, 1st Block, Jayanagar, Bangalore-560011 against the ROM Order No.KAR/ROM 03/2020 dated 11th September 2020 on the ground that it is maintainable.

The appellate authority for advance ruling set aside the ruling no NO.KAR ADRG 06/2020 dated 17/02/2020 passed by the Advance Ruling Authority and answer the questions of the Appellant as follows:

(i) The transaction of printing of content provided by the customer, on Poly Vinyl Chloride (PVC) banners and supply of such printed trade advertisement material is supply of goods.

(ii) The trade advertisements printed and supplied by the appellant is classifiable under Chapter Heading 4911 10 of the Customs Tariff Act and attracts GST rate of 12% in case of inter-state supplies and 6% CGST and 6% SGST in case of Intra state supplies vide Sl.No132 of Schedule II to Notification No. 1/2017-IT (Rate) & 1/2017-CT (Rate) both dated 28.06.2017 respectively.

(iii) Not applicable since the transaction is held to be a supply of goods.

The appellant is eligible to adopt the value as per second proviso to Rule 28 of the CGST/ TNGST Rules 2017, at the time of supply of goods from the State of Tamil Nadu in the terms of the scenario discussed, in as much as the recipient distinct person is eligible for input tax credit as required under the said provision.

The appellant is eligible to avail full input tax credit of tax paid by SML Ho on the lease/hire of cranes to them for furtherance of business, subject to other conditions of eligibility to such credit as per section 16 of CGST/TNGST Act 2017.

Appeal by the party is rejected. Activities undertaken by the Appellant are classifiable under SAC 9973 under Entry No.17 Sub Entry (viii) and attract 18% GST. 

Appeal by the party is partly allowed to the extent that Solar Power Device attract 9.8 % GST.

Appeal by the party is rejected.

ITC of GST paid in Haryana by the Appellant is not available ;  The Appellant is registered in Rajasthan.

The order issued by the original authority for advance ruling is set aside. The appellant can avail Input tax credit of the full GST charged on the undiscounted supply invoice of goods/services by their suppliers. A proportionate reversal of the credit is not required to be done by them in case of a post purchase discount given by the supplier to them throught the C2FO platform, in the circumstances mentioned by the appellant. This is subject to their fulfilling the other conditions stipulated by law and that the GST paid by them for the said goods/services is not reversed or reimbursed/ re-credited etc to them in any manner by the supplier or on his behalf after the credit has been availed by the appellant. The ruling is limited to cases where a post purchase discount is extended by the supplier of goods or services to the appellant on account of their registering in the interactive automated data exchange arrangement setup by C2FO India LLP, which is the subject matter of this advance ruling.

The Order 37/AAR/2019 dated 21.10.2019 passed by the lower authority in the case of the appellant is set aside. The matter is remanded to the lower authority for consideration and passing of appropriate orders on whether issue raised in the application by the appellant was already pending before the department after extending opportunity to the appellant.