GST Caselaw

#GSTCase-94-Summary of Rulings by AAR Odisha

Summary of Rulings by AAR Odisha

 

Name of the Ruling Question under Advance Ruling Subject Sub-Head Held Whether decided by AAAR

 

IL&FS Education and Technology Services Ltd.Whether the services provided by the Applicant to the Government and government aided higher secondary schools under the ICT Project, are covered under the scope of Entry No. 72 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (hereinafter referred to as “Notification No. 12/2017”)’Tax Rate HSN-9992-Computer Training (a) Recipient of the service OKCL is a body corporate which cannot be regarded as Government.

(b) The supply undertaken by the applicant is in the nature of composite supply. It includes supply of goods and services which are not naturally bundled. Each of the components of the composite supply are distinctly identifiable both in terms of quantify and value. The service provided or to be provided is not exclusively in the nature of training programme.

(c)  Though the source of funding for the service is the state Government and Central Government, yet, as per the contract, the payment responsibility is vested on OKCL.

Therefore, the activities of the applicant by way of supply of goods and services under the ICT project are not covered under Entry 7.2 of the notification No.12/2017 dated 28.06.2017, to be entitled to the benefit of exemption from GST.

 

Cases Referred-CIT v. Ajax Products Ltd. [1965] 55 ITR 741 (SC)

 

Yes
National Aluminium Company LtdWhether applicant is entitled to take credit of input tax paid on various goods and services used for maintenance of applicant township, guest house, hospital, horticulture in its ordinary course of business.Input Tax Credit,

Supply  

 Residential Accommodation for Staff: Inward supplies received by way of management, repair, renovation, alteration or maintenance service or goods received for furnishing the residential colony for staff shall not qualify for input tax credit in terms of Section 17 (2) of the OGST/CGST Act. Services received partly in relation to the residential colony and partly in relation to the plant, proportionate ITC to the extent relatable to the plant are available whereas services availed in relation to the residential colony shall not qualify for input tax credit in terms of Sub-sectìon 2 of Section 17

Establishment of hospitals and maintenance thereof may be for discharging the statutory obligation under the ESI Act by the employer: In the provisions of law, as its stand today, there is no such provision providing for input tax credit in respect of goods and/or services procured by an employer for supply to the employees for discharging any statutory obligation. In the absence of such provisions, input tax credit shall not be available to the applicant in respect of the services and goods procured for maintenance of hospital and pharmacy outlet as per the current provisions in the OGST/CGST Act. (Pre-CGST Amendment Act, 2018)

Establishing, maintaining and furnishing guest houses including landscaping by way of gardening or otherwise:- Credit of such input services are as such blocked in clause b of Sub section 5 of section 17 of the OGST and CGST Act. It is further clarified that applicant might not be charging anything from the guest or the trainees for providing food and beverages in the guest houses and training hostels and in such case the inputs used for preparing the food and beverages or input catering services shall not qualify for input tax credit.

 Services for plantation both inside the plant area as well as outside the plant area:- Plantation and maintenance of such plantation outside the plant area being for non business use will not qualify for input tax credit in terms section 17(1) of CGST and OGST Act. Similarly, services for maintenance of plant and gardens within the residential colony and other public utility created by the applicant will form part of the residential colony and in turn part of the perquisite provided to the employees. Services availed in relation to the plants and garden in the residential colony will not qualify for input tax credit. It was also found that the plantation and maintenance of gardens are undertaken within plant area and other business establishments like administrative building and guest houses. Services availed in relation to plantation and gardening within the plant area including mining area and the premises of other business establishment as mentioned above will qualify for input service credit.

 

Yes
Telecommunication consultants India Ltd.Applicability of Entry No. 72 of Notification No. 12/2017-Central Tax, read with Entry No. 72 of Notification SRO No 306/2017-Finance Department, to the services provided by the applicant under the ICT @ School Project.Tax Rate HSN-9992-Computer Training (a)     Recipient of the service OKCL is a body corporate which cannot be regarded as Government.

(b)    The supply undertaken by the applicant is in the nature of composite supply. It includes supply of goods and services which are not naturally bundled. Each of the components of the composite supply are distinctly identifiable both in terms of quantify and value. The service provided or to be provided is not exclusively in the nature of training programme.

(c)     Though the source of funding for the service is the state Government and Central Government, yet, as per the contract, the payment responsibility is vested on OKCL.

Therefore, the activities of the applicant by way of supply of goods and services under the ICT project are not covered under Entry 7.2 of the notification No.12/2017 dated 28.06.2017, to be entitled to the benefit of exemption from GST.

 Cases Referred-IL & FS Education & Technology Services Ltd., [2018] 95 taxmann.com 86/69 GST 160 (AAR-Odisha), CIT v. Ajax Products Ltd. [1965] 55 ITR 741 (SC)

 

No
Super Wealth Financial Enterprises (P.) Ltd.Applicability of Entry No. 3 of Notification No. 12/2017-Central Tax to the services provided by the applicant by way of providing energy saving street lighting services including OM of the street lighting installations to Bhubaneswar Municipal Corporation (BMC)Tax Rate HSN-99-Pure Services to the Government The services provided by the applicant by way of providing energy efficient street lighting services including OM of the street lighting infrastructure during the contracted period to Bhubaneswar Municipal Corporation (BMC) do not constitute supply of pure services as it involves significant use of goods/materials with stipulation to transfer the total business assets to BMC at the end of the contract period. The benefit of exemption from tax in terms of Sl.3 of the Notification No.12/2017- Central Tax (Rate), dated 28.06.2017 is not available to the applicant.

Cases Referred-

Commissioner of Customs (Import) v. Dilip Kumar & Co. [2018] 69 GST 239/95 taxmann.com 327 (SC)

 

Yes
Utkal Polyweave Industries (P.) Ltd.Advance Ruling on ‘Classification of P P Leno BagsTax Rate HSN-392329 90The item “Polypropylene Leno Bags (PP leno Bags)”, be classified under GST Tariff Heading ‘3923 29 90’.

Cases Referred-CCE v. Mahakoshal Potteries 2005 (183) ELT 289 (Tri-Delhi), Mega Flex Plastics Ltd., [2018] 95 taxmann.com 70/68 GST 779 (AAR – West Bengal), Assistant Commissioner of Central Tax, In re [2018] 99 taxmann.com 143/70 GST 809 (AAAR – West Bengal), Raj Pack Well Ltd v. Union of India 1989 taxmann.com 7 (MP)

 

No
Prabhat Gudakhu Factory(i)   Appropriate Classification of Gudakhu’ under the GST Tariff Heading

(ii)  ‘Determination of the liability to pay NCCD (National Calamity Contingency Duty)

 

Tax Rate HSN-24039990‘Gudakhu’ manufactured by the Applicant, be classified under GST Tariff Heading ‘2403 99 90’.

Cases Referred-State of Orissa v. Shamsuddin Akbar Khan & Co. [1975] 35 STC 179 (Orissa)

 

Yes
Indian Institute of Science Education And Research,(a)  “Whether the Notification No-51/1996-Customs, Dt: 23.07.1996 read with Notification No-43/2017-Customs, Dt: 30.06.2017 and Minutes of the 14th GST Council Decision Dt: 18th/19th. May, 2017 is applicable for specified Imported Equipments delivered to the Eligible Institutions and the Applicant is not liable to pay the IGST charged on such imported Equipments by the OEM suppliers of imported equipment,” and,

 

(b)  “Whether the decision of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corresponding Notification by the Central/State Government to give effect to such decision of the Council,” and

 

(c)   “Whether the concessional rate of GST/IGST at the 5% vide Notification No-45-CGST(Rate), Dt:14.11.2017 and Notification No-47-IGST(Rate), Dt:14.11.2017 are applicable only for supply of specified Indigenous Equipments to the eligible Institutions fulfilling conditions as specified under Column-(4) of the said notification with effect from 15.11.2017.”

Tax RateNotification No. 45-CGST(Rate), Dt:14.11.2017(a)   Notification No-51/1996-Customs, dated 23.07.1996 read with Notification No- 43/2017-Customs dated 30.06.2017 and Minutes of the 14th.GST Council Decision dated 18th./19th. May, 2017 is applicable to the Applicant for import of specified Equipment’s as listed under column (3) of the aforesaid notifications and the said notifications are not applicable to the OEM suppliers of imported equipment.

(b)   The scope of issuing a ruling u/s 98 of the OGST/CGST Act is limited to the extent prescribed in sub-section (2) of Section 97 of the OGST/CGST Act. A ruling on whether the decision of the GST Council granting the exemption is binding on the Department in the absence of non-issuance of corresponding Notification by the Central/State Government is not within the competence and mandate of the Authority of Advance Ruling constituted u/s 96 of the OGST Act.

(c)     Concessional rate of GST/IGST at 5% vide Notification No-45-CGST (Rate), Dt: 14.11.2017 and Notification No-47-IGST (Rate), Dt: 14.11.2017 is applicable to the goods mentioned at Para 6.3.0 as above whether imported or indigenous.

No

 

 

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

To Top