In Re : M/s. Pon Pure Chemical India Private Limited
GST
2018 (6) TMI 621 – AUTHORITY FOR ADVANCE RULINGS, GUJARAT – 2018 (14) G. S. T. L. 136 (A. A. R. – GST), [2018] 2 GSTL (AAR) 98 (AAR)
AUTHORITY FOR ADVANCE RULINGS, GUJARAT – AAR
Dated:- 30-10-2017
ORDER NO. GUJ/GAAR/ADM//2017-18/1 (IN APPLICATION NO. Advance Ruling/SGST&CGST/2017-18/AR/1)
GST
Mr. R.B. Mankodi, Member And Mr. G.C. Jain, Member
For The Applicant : Shri Sivarajan Kalyanaraman, CA
RULING
The application for advance ruling of M/s. Pon Pure Chemical India Pvt. Ltd. was heard on 17.10.2017 on the issue as to whether the application is fit for admission or not. Shri Shivrajan Kalyanaraman was requested on that day to submit the reasons / provisions on following issues by 23/25.10.2017.
(i) Whether the authority is within jurisdiction to admit application especially on the issue of 'place of supply'?
(ii) Whether the issue is related to Customs or is related to Goods and Services Tax?
2. The
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services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
No other issue can be decided by the Advance Ruling Authority and therefore the Acts limit the Advance Ruling Authority to decide the issues earmarked for it under Section 97(2).
4. The taxability on High Sea Sales requires the determination of occurrence of High Seas Sales. High Seas Sales are the sales taking place prior to the imported goods crossing the Customs frontier. The definition of “import of goods” as per Section 2(10) of the Integrated Goods and Services Tax Act, 2017 (herein after referred to as the 'IGST Act, 2017') is as follows :-
2(10) “import of goods” with its grammatical variations and cognate expressions, means bringing goods into India from a place outside India;
So, the import as well as High Sea Sales are determined on two basic questions of fact – (i) where the goods are and (ii) at what time the goods can be called to be entering into India
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e Goods and Services Tax domain. This fact is bolstered by the proviso to sub-section (1) of Section 5 of the IGST Act, 2017, which reads as under :-
“Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 (51 of 1975) on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962 (52 of 1962).”
It is also observed that the Central Board of Excise and Customs has issued Circular No. 33/2017-Cus dated 01.08.2017, on the issue of High Sea Sales. Thus, the issue of High Sea Sale falls in the domain of Customs and not under the Goods and Services Tax.
7. The application is therefore rejected without going into the merits of the case, on the issue of lack of jurisdiction, at the stage of admission.
ORDER
The application for Advance Ruling dated 01.08.2017 of M/s. Pon Pure Chemical
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