M/s Abel Space Solutions LLP Versus M/s Schindler India Private Limited
GST
2018 (6) TMI 687 – THE NATIONAL ANTI-PROFITEERING AUTHORITY – 2018 (17) G. S. T. L. 621 (N. A. P. A.)
THE NATIONAL ANTI-PROFITEERING AUTHORITY – NAPA
Dated:- 31-5-2018
4/2018
GST
Sh. B.N. Sharma, Chairman, Sh. J.C. Chauhan, Technical Member and Ms. R. Bhagyadevi, Technical Member
ORDER
The present report dated 16.04.2018, has been received from the Director General of Safeguards (DGSG) after detailed investigation under Rule 129 (6) of the Central Goods & Services Tax (CGST) Rules, 2017. The brief facts of the case are that an application dated 20.09.2017 was filed by above applicant before the Standing Committee, constituted under Rule 123 (1) of the above Rules alleging that the Respondent had not charged GST on the base price of the lift ordered by him from the Respondent, after excluding the pre-GST Excise Duty on the material component and thus he had been charged tax twice on the s
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nce, hence an invoice dated 28.06.2017 was issued by the Respondent levying Service Tax at the then applicable rate. He had further observed that after installation of the second lift in the GST regime, two more invoices were issued on 27.07.2017 wherein the prevalent rate of GST was charged. The DGSG had also stated that as per the Finance Act, 1994, the supply and installation of lift amounted to “Works Contract” and as per Rule 2A of the Service Tax (Determination of Value) Rules, 2006, value of the service portion of the works contract was to be taken as equivalent to the gross amount charged for the works contract minus the value of property in goods transferred in the execution of the said works contract and on the goods transferred Value Added Tax was to be charged and on the service portion, Service Tax was leviable. He had further stated that as per Section 142 (10) and 142 (11) of the CGST Act, 2017, the goods or services or both supplied after coming in to force of the above
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material was delivered before 30.06.2017 and hence, he was not in a position to pass such benefit to the Applicant.
4. The Applicant vide his letter dated 28.03.2018 to the DGSG had also intimated that his application dated 20.09.2017 was submitted when the CGST Act, 2017 had been freshly introduced and there were several provisions in it which were not clear to him. He had also intimated that a number of clarifications had come on the various issues pertaining to the above Act, due to which he had properly understood the implication of the invoices raised by the Respondent and found them correct as per the provisions of the CGST Act, 2017. He had therefore, requested the DGSG to treat his application as withdrawn. Based upon the above facts the DGSG had recommended closure of the present proceedings.
5. The above report was considered by the Authority in it's sitting held on 24.04.2018 and it was decided to hear the Applicant on 11.05.2018. The hearing was further rescheduled to 14
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r coming in to force of the GST, the tax had been charged without excluding the pre-GST regime Excise Duty and hence he had been charged tax twice once on the pre-GST Excise Duty and subsequently on the full value of the material used in the lift. It is clear from the perusal of the record that the Applicant had paid advance for purchase of this lift and he was charged the Service Tax which was leviable at the time of issue of the invoice on 28-06-2017, which he has not disputed and which is also correct as the Applicant was liable for payment of Service Tax under the then applicable provisions of Finance Act, 1994. However in respect of the two invoices dated 27-07-2017 as the installation of the second lift had been completed after coming in to force of the CGST Act, 2017, he was liable to be charged GST at the rate which was prevalent on 27-07-2017.
7. It is also apparent from the record that the Applicant vide his letter dated 28-03-2018 sent to the DGSG and vide his letter dated
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