In Re: M/s. NSL Mining Resources India Private Limited
GST
2018 (11) TMI 606 – AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – TMI
AUTHORITY FOR ADVANCE RULING, ANDHRA PRADESH – AAR
Dated:- 26-6-2018
Order/AAR/AP/04(GST)/2018 in Application No. AAR/10(GST)/2018
GST
SRI. J.V.M SARMA AND SRI. AMARESH KUMAR MEMBER
Present for the Applicant: Dasari Nageswara Rao & K. Sivaram
Present for the Jurisdiction Officer: Remarks Receivied through mail
Note: Under Section 100 of the APGST Act' 2017, an appeal against this order lies before the appellate authority for advance ruling constituted under section 99 of APGST Act'2017, within a period of 30 days from the date of service of this order.
1. M/s. NSL MINING RESOURCES INDIA PRIVATE LIMITED, GSTIN 37AADCN0483C1ZQ (hereinafter also referred as an applicant), having are engaged in procuring low grade Iron Ore from third party miners, upgrading the quality of Iron ore by beneficiation process and sells the upgraded iron ore
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
risdictional officer, i.e Assistant Commissioner State tax, Kurnool III Circle, Kurnool Division, stated that there is no proceedings were either pending before any authority or passed by any authority. Hence, based on the remarks obtained from jurisdictional officer, this authority conducted a personal hearing on 21st May 2018. The applicant firm represented through their authorized representative, they attended for the personal hearing and made submissions on the issues raised by them and requested the members of the authority for one more opportunity for personal hearing. Accordingly, the authority conducted 2nd personal hearing on 25th June 2018, and made submissions on the issues.
5. The applicant firm, in their written submissions submitted that…
The applicant firm is engaged in procuring low grade iron ore from third party miners, upgrading the quality of iron ore by beneficiation process and sells the upgraded iron ore. Beneficiation is the process that improves the economi
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
AD paid is carried forward as Central Tax” in the transition form GST TRAN-I. Transition credit of VAT paid is carried forward as “State Tax” in the transition form GST TRAN-I.
c) Further, they contended that the term “tax” has not been defined in CGST Act. However, input tax credit is defined under section 2(63) of CGST Act,2017 as…
“Input Tax Credit” means the credit of input tax.
“Input Tax”, defined under Section 2(62) of CGST Act,2017 as ..
“Input Tax”, in relation to a registered person, means the central tax, state tax, Integrated tax or Union territory tax charged on any supply of Goods or Services or both made to him.
Since, the transitional credit is carried forward as Central tax and State tax, the same will be covered under input tax credit.
d) They contended that without prejudice to the above 97 (2) (d) of CGST Act,2017 allows for question relating to admissibility of input tax credit of tax paid or deemed to have been paid. Since the transitional credit is a
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
and enabling provision for transition of credits.
b. the heading of Section 140 reads as transition provision for “input tax Credit” – indicating clearly that the credits under section 140 qualify as “input tax credit “.
c. the definition of “input tax” under section 2(62) should be read in context. Section 2 starts with a preamble “unless the context otherwise required…..”.Therefore, the definition has to be read only in the context of transactions in GST and not for the purpose of interpreting the term “input tax credit” under the transition provisions.
d. The transition credits are carried forward in electronic credit ledger for utilization – this is similar to section 16 relating credit of input tax paid in GST
e. Interpretation that “input tax credit” does not include transition credits would lead to an anomaly since none of the provisions of the GST law relating to “input tax credit” including payment of tax, assessment, penalty etc can apply to such credits.
Further,
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =