Case-1- Prodair Air Products India (P.) Ltd.  98 taxmann.com 440 (AAR – KERALA)
Issue: The customerBPCL would commence the movement of natural gases and other inputs through pipeline on the basis of job work delivery challan under Rule 55(b) of GST Rules to the applicant’s plant on free of cost basis. On receipt of the said inputs, the applicant would be converting these inputs to industrial gases such as Hydrogen, Nitrogen, Oxygen etc. The industrial gases would be sent back to BPCL plant on the basis of the Job work delivery challan under Rule 55(b) of GST Rules. Applicant would be issuing monthly tax invoice charging the conversion charges for processing/conversion of inputs to industrial gases along with applicable GST.
Held: The activity carried out by the applicant of processing natural gas and other inputs received from BPCL on free of cost basis and manufacturing industrial gases shall fall under the scope of ‘job work’ under GST. The services included under the Heading 9988 are manufacturing services performed on physical inputs owned by others. The activity of the applicant is job work as the output is not owned by the applicant providing this service. Hence the activity falls under serial No. (ii) of the HSN 9988 taxable @18% GSTR.
Case-2- Irene Rubbers  105 taxmann.com 227 (AAR – KERALA)
Issue: M/s. Irene Rubbers is a job worker engaged in production of Rubber backed and rubber edged coir mats and polypropylene mats of various designs and size as required by the principal on the materials provided by the principal- The materials like coir mats and mattings covered under HSN 5702 and tufted carpets covered under HSN 5703 are supplied by the principal for executing job works along with moulds in the required designs. The rubber compound required for the rubber backing and edging is prepared in a mixing mill. The petitioner cut the materials in desired size and mixing the material with molten rubber compound. Accordingly, the molten rubber compound and coir materials are fused/vulcanized perfectly with the aid of hydraulic press. Thereafter, the edges are cut for finishing and the finished product like rubber backend mat of coir, polypropylene of felt will be delivered to the principal.
Held: The materials supplied for execution of job work are falling under Chapter 50 to 63 in the First Schedule to the Customs Tariff Act, 1975. The materials like carpets, coir etc, are supplied by the principal for executing job works along with moulds in the required designs. All the raw materials supplied by the principal are covered under Chapter 50 to 63 of the Customs Tariff Act, 1975, Therefore the job work services applied on such goods squarely come under Sl.No.26(i)(b) of Notification 11/2017 CT (Rate) dated 28.06.2017 and taxable @ 5% GST.
Case-3- Estera Polymers  104 taxmann.com 40 (AAR – KERALA)
Issue: The materials like textile, carpets, coir, etc. are supplied by the principal for executing job works along with moulds in the required designs. The petitioner cut the materials in desired size and mixing the material with molten rubber compound. Accordingly, the molten rubber compound and textile/coir materials are fused/vulcanized perfectly with the aid of hydraulic press. Thereafter, the edges are cut for finishing and the finished product like rubber backend mat of coir, polypropylene of felt will be delivered to the principal.
Held: The materials supplied for execution of job work are falling under Chapters 50 to 63 in the First Schedule to the Customs Tariff Act, 1975. The materials like textile, carpets, coir, etc. are supplied by the principal for executing job works along with moulds in the required designs. All the raw materials supplied by the principal are covered under Chapters 50 to 63 of the Customs Tariff Act, 1975. Therefore, the job work services applied on such goods are squarely come under SI.No.2G(i)(b) of Notification No. 11/2017 and taxable @ 5% GST.
Case-4- Deputy Conservator of Forests  109 taxmann.com 365 (AAR – KARNATAKA)
Issue- Karnataka Forest Department, under its sovereign functions, raises “plants” of tree species, plants them in forest, waste & common lands. Over time, with the nurturing and management of the department, these plants grow up to become trees when they are harvested to yield timber, poles, billets, firewood, pulpwood, etc. which are raw material (for say carpentry works), fuel (firewood is burnt as fuel), and fibre (pulpwood is used as fibre for paper and rayon industry). The task of harvest of these trees which grew from “plants” planted by the department is at times given to Government Corporation/Corporations (Applicant). These Corporations —
- Fell the trees that grew from the “plants” – Labour work
- Convert them, into timber, firewood, poles, etc. so that they become marketable for the primary market – Labour work
- Load the marketable timber, firewood, etc. in vehicles – Labour work
- Transport the marketable timber, firewood etc. by vehicles – Non Labour work
- Unload the marketable timber, firewood etc. from vehicles – Labour work
- Stack the marketable timber, firewood etc. in Government timber deports – Labour work.
The applicant submitted that all of these, and some activities related to it (like clearing the roads, fire prevention, etc.) together are termed as an item of work called “logging”. The question arises is that, for this service of “logging” done by the Corporation and received by the Forest Department, what is the GST payable?
Held: Theterm “forest produce”, is defined under Section 2(7) of the Karnataka Forest Act, 1963. Further the terms “timber” and “trees” have been defined under Section 2(20) and 2(21) of the Karnataka Forest Act, 1963 respectively as under:
(20) “timber” includes trees when they have fallen or have been felled, and all wood whether cut up or sawn or fashioned or hollowed out for any purpose or not;
(21) “tree” includes palms, bamboos, stumps, brushwood and canes;
Therefore, it was held by AAR that activity of “Logging” does not yield agricultural produce and hence is not covered under entry number 24 of the Notification No. 11/2017 – Central Tax (Rate), dated 28th June 2017, effective from 01.07.2017.
The activity of “Logging” also does not fall under the support services to forestry. The term “forestry”, in terms of oxford dictionary, means “The science or practice of planting, managing, and caring for forests”. In the instant case the nature of work done by the Corporation i.e. the services received by the applicant are not related to the management of forest i.e. planting, managing, caring, in relation to cultivation of plants, but are of felling of trees and converting them into a marketable timber or firewood. It is an intermediary operation in the conversion of wood to timber and firewood and hence is not covered under the explanation given to the words “Support Services to forestry” and hence is not covered under the entry No. 24 of the Notification No. 11/ 2017 – Central tax (Rate), dated 28.06.2017.
The services received by the applicant are of composite in nature and the principal supply is covered under sub-entry (ii) of entry No.26 of the Notification No.11/2017-Central tax (Rate), dated 28.06.2017 which reads “Manufacturing services on physical inputs (goods) owned by others, other than (i) above” and taxable at 9% under the CGST Act and 9% under SGST Act. Similarly it is taxable at 18% under the IGST Act.
Case-5- Electroplating And Metal Finishers  115 taxmann.com 98 (AAR – TAMILNADU)
Issue:- The applicants are undertaking the work of electroplating the components of automobiles, etc., provided by the customers as per their specifications made in the diagram. For doing the electroplating, they purchase metals such as Zinc Ingot, Silver Bullion, Nickel, Copper, Chemicals., Hydrochloric and Nitric Acid, SC casting. The customers send the components under Delivery challan with the reason for Transport as ‘Outward-Job-work’ in the E-Way bill to the applicant. After doing Electroplating as per the specifications of the customer, the applicant raises invoice charging applicable GST and return the components stating ‘outward supply’ in the E-way bills. The components are owned by the applicants’ customers and are sent to the applicant for electroplating and return back. The final product is also owned by the applicants’ supplier.
Held-The applicable rate of tax is 9% CGST vide Sl. No. 26 of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 as amended and 9% SGST vide entry No. 26 of Notification No. II(2)/CTR/532(d-14)/2017 vide G.O. (Ms) No. 72 dated 29.06.2017 as amended for the period upto 30.09.2019 irrespective of whether the goods are owned by Registered or Unregistered persons as given in the Table above.
3. For the period from 01.10.2019, in case
a. The goods are belonging to another Registered person, the applicable rate of tax, is 6% CGST vide entry Sl.No. 26(id) of Notification No. 11/2017-C.T.(Rate) dated 28.06.2017 as amended and 6% SGST vide No. 26(id) of Notification No. I1(2)/CTR/532(d-14)/2017 vide G.O. (Ms) No. 72 dated 29.06.2017 as amended.
b. The goods are owned by unregistered persons, the applicable rate of tax is 9% CGST vide SI.No. 26(iv) of Notification No. 11/2017- T.(Rate) dated 28.06.2017 as amended and 9% SGST vide Sl.No. 26(iv) of Notification No. II(2)/CTR/532(d-14)/2017 vide G.O. (Ms) No. 72 dated 29.06.2017 as amended.
Case-6- CGR Gold Trading,  110 taxmann.com 495 (AAR – KERALA)
Issue: The applicant us engaged in activity of Gold maintenance/repair works such as enlargement of gold chains or other gold ornaments or cutting and polishing of gold ornaments or other repairs of gold ornaments, Cutting, shaping, sizing and conversion of gold ornaments into coins/biscuits as per the specific instructions of prospective customers. and Printing name of emblems or embossing/projecting top or side portion of ornaments. The query is about the Tax Rate on the said activity.
Held- The Jewellery Manufacturing Services includes gold maintenance/repair works, which falls under Service Classification Code 998892. As per Section 2(68) of the CGST Act, 2017; Job work is defined as undertaking any treatment or process by a person on goods belonging to another registered person and the expression “job worker” shall be construed accordingly. The rate of GST applicable for manufacturing services on physical inputs (goods) owned by others is 5%; if undertaken on goods belonging to registered persons as per Sl. No.26 (i) (c) and 18% GST, if job work undertaken on goods belonging to unregistered persons as per Sl. No. 26 (iv) of Notification No.11/2017 Central Tax (Rate), dated 28-06-2017.
Case-7- SLN Tech-Fabs (Bengaluru) (P.) Ltd  113 taxmann.com 370 (AAR – KARNATAKA)
Issue: The applicant is engaged in providing services in the area of Transport Solutions, in the field of fabrication and truck body building area, with the trademark “SLN DIAMOND”, for transport equipments such as Tippers (200 to 500 cft. capacity on 6 to 10 wheeler vehicles), Trailers (single axle to multi axle trailers of 20 ft. to 40 ft. Low Bed, Fat Bed & skeleton type trailers), Containers (both insulated and non-insulated type containers on various chassis from 8 ft. to 40 ft. containers) and Tankers (6000 ltrs. To 16000 ltrs. Capacity). The applicant had applied for enquiry of tax rate on supply.
Held: The impugned services of the applicant are covered under heading 9988 as manufacturing services on physical inputs (goods) owned by others in terms of Sl.No.26(ii) of the Notification No.11/2017-Central Tax (Rate) dated 28.6.2017 initially and subsequently under Sl.No.26(iii)/(iv) respectively, consequent to amendment of the said entry No.26 of the aforesaid Notification. However, the services by way of job work in relation to bus body building have been carved out of the earlier entry i.e. Sl.No.26(iv) of Notification supra and a separate entry under Sl.No.26(i)(ic) has been incorporated consequent to amendment of the said notification vide Notification No.20/2019-Central Tax (Rate) dated 30.9.2019. The impugned services had been taxed at 18% GST (9% CGST & 9% SGST) right from the appointed date i.e. 1.7.2017. The only difference is in the entry numbers of the Notification that cover the said services.
Case-8-Crown Beers India (P.) Ltd.  107 taxmann.com 468 (AAAR-MAHARASHTRA)
Issue: whether Job Work of brewing, bottling and supplying Products in relation to beer would be eligible for 5% GST (2.5% CGST +2.5 % SGST) falling within the ambit of “food or food products”
Since beer is classifiable under item 2203 00 00 of the First Schedule to the Customs Tariff Act, 1975, whether Job Work i.e. brewing, bottling and supplying Products in relation to beer would be liable to 5% GST (2.5% CGST +2.5 % SGST) in accordance with the entry 26(f) bearing Heading 9988 of the Notification 11/2017 dated 28.06.2017.
Observation by AAAR-There is no dispute about classification of Beer under heading 2203 but all the products classifiable under Chapter 1 to 22 do not attract 2.5% CGST under entry no. 26(f) of Notification no. 11/2017-C.T.(Rate) dt. 28.06.2017. Only food and food products of these chapters are eligible for this exemption. There is no definition of food and food products under GST Acts. However, Hon’ble Supreme Court has discussed this issue in detail in the matter of Parle Exports (P.) Ltd. (supra) and decided that non -alcoholic beverages were not eligible to exemption as food products. Everything consumed by human cannot be considered as food or food products for the purpose of exemption from GST. The context, spirit and reason of law need to be examined to extend exemption. Hon’ble Supreme Court in the said judgment had opined that ” it cannot be contended that expensive items like Gold-Spot base, Limca-base or Thums up-base were intended to be given exemption at the cost of public exchequer/’ Similarly, it would have never been the intention of law to exempt expensive item like ‘alcoholic liquor’ under the category of food and food products even though the same is for human consumption. In view of the above two judgments of Hon’ble Apex Court, we conclude that the benefit of exemption under entry no. 26(f) of Notification 11/2017-C.T.(Rate) dt. 28.06.2017 is not available to alcoholic liquor for human consumption.
Case-9- Circular No. 126/45/2019-GST- Clarification on scope of the notification entry at item (id), related to job work, under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017-reg.
In view of the above, it may be seen that there is a clear demarcation between scope of the entries at item (id) and item (iv) under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017. Entry at item (id) covers only job work services as defined in section 2 (68) of CGST Act, 2017, that is, services by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, the entry at item (iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act.