2018 (12) TMI 843 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – TMI – Levy of CGST/MGST/IGST – fixed fee received by the PIL as a consideration for brewing / manufacturing, packing and supply of Products i.e. alcoholic liquor for human consumption – Scope of supply – service or not? – Held that:- The applicant has entered into an agreement for brewing/manufacturing, packaging and supplying beer only because PIL has surplus manufacturing and licensed capacity at its bottling unit. As per the agreement the applicant would pay to PIL such costs for purchasing the goods mentioned above and therefore they are effectively their own goods. In fact the agreement mentions that PIL shall maintain in force, at all times during the term Of the Agreement, full and complete insurance cover for Products, raw materials and ingredients used in the Manufacture of Products and work in process in relation thereto by nominating Crown as the beneficiary.
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Since the applicant is paying costs to PIL fo
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applicant – For these services rendered there is a consideration which flows from the applicant to PIL in the form of ‘fixed costs’. The entire services rendered by PIL and the consideration paid by the applicant for receiving such services is in the course of furtherance on business of both, the applicant and PIL. Hence this amount is liable to tax under the GST Laws and such tax is payable by the supplier of service i.e. PIL.
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What is service in this case the entire gamut of brewing/ manufacturing, packaging and supplying beer by PIL to the applicant, for which they are receiving fixed costs for job work as discussed above. If the applicant had brew/manufactured, packaged and supplied beer on their own account then their activity would not have been liable to tax under the GST laws since the supply of alcoholic liquor for human consumption is not taxable under the GST laws – it is the job work which is a service provided by PIL that is required to be taxed.
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Ruling:- The t
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f Products, being in the nature of alcoholic liquor for human consumption, is excluded from the ambit of Central Goods and Services Tax Act, 2017 (CGST Act) / Maharashtra Goods and Service Tax Act, 2017 (MGST Act ) / Integrated Goods and Service Tax Act, 2017 (IGST Act ). Whether Central Goods and Services Tax (hereinafter referred to as the CGST) under Section 9(1) of the CGST Act / Maharashtra Goods and Service Tax (hereinafter referred to as the MGST) under Section 9(1) of the MGST Act / Integrated Goods and Service Tax (hereinafter referred to as the IGST) under Section 5 (1) of the IGST Act can be levied on the above mentioned consideration paid for supply of alcoholic liquor for human consumption? ii. Without prejudice to the submissions made elsewhere, if the supply of Beer is held to be a service by way of job work in relation to Beer, what shall be the rate of CGST/UTGST/IGST that shall be levied on the said taxable supply ? At the outset, we would like to make it clear that t
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t to buyers / distributors in the territory identified by Crown. PIL has surplus manufacturing and licensed capacity at its bottling unit, located at Plot No. B1, Lonand MIDC, Satara, Maharashtra – 415 508 ( Bottling Unit), and Beer would be supplied therefrom. The Agreement is annexed hereto and marked as Annexure-1. The PIL holds valid licenses, permits and permissions necessary under the applicable laws for manufacture of Products at the Bottling Unit. Copies of the said licenses are annexed hereto and marked as Annexure. 2. In order to understand the transactions being undertaken under the Agreement, the Applicant has summarized the relevant terms of the Agreement below: a. In accordance with the instructions received from Crown during the term of the Agreement, the PIL undertakes to manufacture the Products at its Bottling Unit and perform Certain other allied activities, including the following (Clause 2.1 of the Agreement): i. Purchasing the required materials, arranging labour
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art of the above mentioned parameters and Standards, the quality, specific varieties, sources and terms for procurement of raw Materials used in the manufacture of Products, the design, content and manner of Affixation of labels, marks and trademarks to the Products, the manner of production and Quality control procedures to be maintained in the manufacture of Products by the PIL (Clause 5.2 of the Agreement). d. The PIL shall maintain in force, at all times during the term of the Agreement, full and complete insurance cover for Products, raw materials and ingredients used in the Manufacture of Products and work in process in relation thereto by nominating Crown as the beneficiary. Cost of aforesaid insurance shall be to the Account of Crown (Clause 4.11 of the agreement). e. In consideration for fulfilment of the above mentioned obligations by the PIL to manufacture the Products in terms of the agreement, the PIL shall be entitled to a fixed fee for the Products so manufactured, calcu
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Other duties, taxes and fees levied by the State Government or Central Government payable in relation to the dispatch of Products as applicable on the date of Agreement; vii. Cost for taking insurance as contemplated under Clause 4.11 of the Agreement; viii. Cost of any permit fees or levies to be submitted under any applicable rule, regulation or law towards supply of Products pursuant to the Agreement; ix. Cost of loading and unloading of raw materials and ingredients used to manufacture Products and the Products; x. Approved cost of running and operating a bonded or other warehouse as advised by Crown; and xi. Cost of inwards freight charges in relation to the Material and Products. f. Any costs other than as specified in Schedule Il shall be borne by the Applicant (Clause 7.3 of the Agreement). g. PIL Shall open a separate bank account ( Account ) wherein all proceeds from Sale of Products made to buyers / distributors under the Agreement Shall be Deposited (Clause 7. 1 of the Agre
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ated Goods and Service Tax Act, 2017 (hereinafter referred to as the IGST Act). In accordance with the above mentioned Provisions, the Applicant is desirous of obtaining an advance ruling on certain questions Arising out of the Agreement. The said questions have been detailed in S. No. 14 of this Application. The Applicant s submissions in relation to the said questions are enumerated below in response to S. No. 16 of this application for advance ruling. STATEMENT CONTAINING APPLICANTS INTERPRETATION OF LAW IN RESPECT OF THE QUESTIONS RAISED The Applicant pays to PIL a fixed fee (calculated by including all the cost incurred as specified in Schedule II to the Agreement by PIL and its profit margin) as a consideration for brewing/ Manufacturing, packing and supply of Products. Supply of Products, being in the nature of Alcoholic liquor for human consumption, is excluded from the ambit of CGST Act / MGST Act /IGST Act. Whether Central Goods and Services Tax (hereinafter referred to as th
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respect to Goods and Services Tax (hereinafter referred to as GST). Furthermore, Article 366 (12A) was inserted in the Constitution of India which defined goods and services tax to mean any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption . Moreover, Entry 54 in List II of Seventh Schedule (State List) to the Constitution of India, which authorizes the State Government to levy taxes on certain subject matters, was amended as follows: 54. Taxes on the sale of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human Consumption, but not including sale in the course of inter-State trade or Commerce or sale in the course of international trade or commerce of such goods. (Emphasis Supplied) 3. Thereafter, relevant legislations for levy and collection of GST were introduced by the Central Government as well as respective State Governments,
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supply of goods and services or both by the Central Government. Under the IGST Act, Section 5 (1) specifically provides for the levy of IGST on all inter- State supplies of goods or services or both, except on the supply of alcoholic liquor of human consumption 4. Based on a plain reading of Article 366 (12A) of the Constitution of India, Section 9 (1) of the CGST Act / MGST Act and Section 5 (1) of the IGST Act, it is respectfully submitted that supply of alcoholic liquor for human consumption has been expressly excluded from the ambit of levy of CGST/MGST/IGST. It may further be noted from the amendment in Entry 54 in List II of Seventh Schedule (State List) to the Constitution of India that the power to impose tax on alcoholic liquor for human consumption has been separately prescribed to the State Government. 5. It is further submitted by the Applicant that under the CGST Act / MGST Act /IGST Act, the levy of CGST/MGST/IGST respectively is on the supply of goods or services or bot
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y the PIL for a consideration (i.e. fixed fee and costs specified in Schedule II to the Agreement) in the course of or in furtherance of their business. Therefore, the PIL s activities would be squarely covered under the definition of supply under the CGST Act/MGST Act / IGST Act. 7. However, the Applicant would humbly like to bring forth that the supply being made by PIL is of alcoholic liquor for human consumption. As mentioned in the terms and conditions of the Agreement, the first part of the consideration in question here is the amount of fixed fee which depends on the supply of Products by the PIL in terms of the Agreement. Clearly, the fixed fee received by PIL from the Applicant is directly in relation to brewing / manufacturing, packing and supplying Products i.e. alcoholic liquor for human consumption. The second part of the consideration is the amount representing the costs specified in Schedule Il to the Agreement, which includes, inter alia, the cost of procuring raw mater
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st I (Union List) of Schedule 7 to the Constitution of India excluded manufacture or production of alcoholic liquors for human consumption from duties of excise levied by the Central Government. However, with the passing of the above mentioned constitutional amendment and the consequent GST legislations, what is excluded from the levy of GST is the supply of alcoholic liquor for human consumption . In this regard, it is humbly submitted that supply , as defined in the CGST Act / MGST Act / IGST Act, is a much wider concept which includes all forms of supply of goods or services or both within its ambit. As far as GST on supply of alcoholic liquor for human consumption is concerned, the same has been excluded from the overall incidence of supply , which includes the supply of goods as well as supply for services. Therefore, it is clear that the intention of the concerned legislatures has been to exclude every aspect of supply of alcoholic liquor for human consumption from tax under the
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tion 5 (1) of the IGST Act have to be strictly construed, without considering the consequences that it may have. Once the said provision are interpreted strictly in terms of their language, it can be concluded that the supply of alcoholic liquor for human consumption in all forms, either as a supply of goods or a supply of services, is excluded from the levy of CGST/MGST/ IGST. Accordingly, it is the Applicant s contention that there shall be no levy of CGST/MGST /IGST on the fixed fee and costs specified in Schedule Il to the Agreement paid by the Applicant to PIL as the same are in relation to supply of alcoholic liquor for human consumption 12. Without prejudice to the submissions made above, the Applicant pre-empts that the Revenue may contend that S.No. 3 of Schedule II to the CGST Act/ MGST Act provides that any treatment or process which is applied to another person s goods is deemed to be a supply of services and, therefore, the activities carried out by PIL on goods obtained f
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n 9 (1) of the CGST Act/ MGST Act and Section 5 (1) of the IGST Act. Under these provisions, tax is levied on the supply of goods or services or both but excludes such a levy on supply of alcoholic liquor for human consumption. It is pertinent to point out that there is no mention of any specific category of supply (i.e. either supply of goods or services or both) which is excluded. Therefore, it is respectfully contended that all categories of supply of alcoholic liquor for human consumption, whether of goods or services or both, stand excluded from the ambit of levy of CGST /MGST/ IGST. Besides the lack of statutory authority to levy CGST /MGST/IGST on supply of alcoholic liquor for human consumption, it is further contended that there is, in any case, a specific exclusion under the Constitution of India to levy GST on the supply of alcoholic liquor for human consumption. In light of the above mentioned provisions, it is summarized that even if activity undertaken by the PIL can be d
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he Revenue cannot place reliance on the scope of supply provided within the CGST Act/ MGST Act / IGST Act to argue that GST can be levied on supply of alcoholic liquor for human consumption if the same amounts to a treatment/ process on another person s goods. To substantiate this contention, reference may be made to the judgment of the 7-judge Bench of the Hon ble Supreme Court in Re Kerala Education Bill, 1957 Reference under Article 143 (1) of the Constitution of India, AIR 1958 SC 956 = 1958 (5) TMI 47 – SUPREME COURT OF INDIA wherein it was held that Even the legislature cannot do indirectly what it certainly cannot do directly . Similarly, a Constitution Bench of the Hon ble Supreme Court in State of Punjab v. Devans Modern Breweries Ltd, (2004) 11 SCC 26 = 2003 (11) TMI 628 – SUPREME COURT OF INDIA held that It is a well-settled principle of law that a thing which cannot be done directly cannot be done indirectly . Relying on these judgments, it is humbly contended by the Applic
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in relation to Applicant s Question (ii) in S. No, 14 Without prejudice to the submissions made elsewhere, if the supply of Beer is held to be service by way of job wok in relation to Beer, what shall be the rate of CGST / MGST / IGST hat shall be levied on the said taxable supply? 15. If the supply of Beer is held to be a service by way of job wok in relation to beer, the Applicant has sought an advance ruling on the rate of CGST/MGST / IGST that shall be levied on the said taxable supply. It is respectfully reiterated that this is without prejudice to the Applicant s submission that the activities under contention are not being carried out on another person s goods and that said activities are in the nature of supply of alcoholic liquor of human consumption which is entirely outside the ambit of GST. 16. Without prejudice to the submissions made elsewhere, it is humbly submitted that if brewing, bottling and supplying Beer i.e. alcoholic liquor for human consumption is considered to
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fication No. 11/2017-CentraI Tax (Rate) dated as amended by Notification No. 31/2017-Central Tax (Rate) dated 13.10.2017. Similarly, there shall be a levy of UTGST at a rate of 2.5% on the said taxable supply in terms of Notification No. 11/2017-State Tax (Rate) dated 29.06.2017, as amended by Notification No. 31/2017- State Tax (Rate) dated Also, there shall be a levy of IGST at the rate of 5% on the said taxable supply in terms of Notification No. 8/2017-lntegrated Tax (Rate) dated as amended by Notification No. 39/2017-lntegrated Tax (Rate) dated 13.10.2017. Additional submissions of applicant WRITTEN SUBMISSIONS ON BEHALF OF CROWN BEERS INDIA PRIVATE LIMITED 1. Crown Beers India Private Limited (Applicant ) has entered into a Tie-Up Agreement ( Agreement) with Privilege Industries Limited ( PIE) under which PIL has agreed to brew / manufacture, package and supply beer ( Products ), as specified under the Agreement. In this regard, the Applicant filed the present application for adv
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e services by way of job work in relation to beer, what shall be the rate of CGST / MGST/IGST that shall be levied on the said taxable supply? 2. in pursuance of the Application, a hearing for admission / rejection of the Application was scheduled on 25.07.2018. After considering the submissions made by the Applicant, the Application was admitted for final hearing (vide Final Hearing Notice dated 25.07.2018). A copy of the Final Hearing Notice is enclosed herewith and marked as Annexure-I. Subsequently, the Applicant has also received Submissions dated 24.07.2018 ( Revenue Submissions ) made by the office of Joint Commissioner of State Tax, Nodal-7, Mumbai. A copy of the said submissions is enclosed herewith and marked as Annexure-2. In this regard, the Applicant makes the following submissions, without prejudice to each other: Supply of alcoholic liquor for human consumption including the supply of goods as well as supply for services, has been excluded from the ambit of GST regime 3.
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e 2.3 and 7.3 of the Agreement). vi. Sales invoices are raised by PIL for delivery of alcoholic liquor for human consumption in favour of buyers/ distributors identified by the Applicant. vii. That the manufactured alcoholic liquor for human consumption is supplied 4. From the above features of the Agreement, it is clear that the transaction is one of supply of alcoholic liquor for human consumption alone. The physical transfer of alcoholic liquor for human consumption is made by PIL in favour of buyers/ distributors which are identified by the Applicant. The entire sale consideration for the supply of alcoholic liquor for human consumption is split into three parts viz., (1) fixed fee which is retained by PIL, (2) the surplus which belongs to the Applicant, and (3) costs for the manufacture of alcoholic liquor for human consumption which is reimbursed to PIL. 5. No part of the above sale consideration for alcoholic liquor for human consumption is subject to GST as the supply of, alcoh
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onstitution. The entire sale consideration which is split into three parts, as stated above, can therefore only be subjected to either State excise duty or VAT which is being levied and paid on such consideration. 7. It is humbly submitted that under the CGST Act, Section 9 (1) specifically provides for the levy of CGST on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption Similarly, the MGST Act provides for provisions for levy and collection of GST on intra-State supply of goods or services or both by the State Government of Maharashtra. Under the MGST Act, Section 9 (1) specifically provides for the levy of MGST on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption . As far as the IGST Act is concerned, the same provides for provisions for levy and collection of tax on inter-State supply of goods and services or both by the Central Government. Under t
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itted that supply , as defined in the CGST Act / MGST Act / IGST Act, is a much wider concept which includes all forms of supply of goods or services or both within its ambit. AS far as GST on supply of alcoholic liquor for human consumption is concerned, the same has been excluded from the overall incidence of supply , which includes the supply of goods as well as supply for services. Therefore, it is clear that the intention of the concerned legislatures has been to exclude every aspect of supply of alcoholic liquor for human consumption from tax under the GST legislations, be it supply of goods or supply of services. 9. Without prejudice to the above submissions that there is no supply at all which can be brought under the GST net, it is submitted that, insofar as the fixed fee is concerned, it is intended for the supply of alcoholic liquor for human consumption. There is no independent service provided by PIL to the Applicant. The alleged service gets subsumed in the manufacture of
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n List (Seventh Schedule) under the pre-GST regime. Under this residuary entry, the Union Government could make laws with respect to any other matter not enumerated in List II or List III including any tax not mentioned in either of those Lists. Under the GST regime, however, the Parliament and the State Legislatures have been specifically empowered under the Constitution to make laws with respect to GST. Further, Constitution itself defined goods and services tax under Article 366 (12A) to specifically exclude taxes on the entire scope of supply of alcoholic liquor for human consumption, whether such supply is that of supply of goods or supply of services. Accordingly, it is submitted that no taxes in the nature of GST can be levied on the supply of alcoholic liquor for human consumption. 11. In this regard, reference may also be made to GST Council s Minutes of the 26th Meeting dated 10.03-2018 on GST on liquor license fee wherein the GST Council approved that GST was not leviable on
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for human consumption is excluded from the ambit of CGST / MGST / IGST but supply of services related to liquor for human consumption is not excluded from the ambit of levy of CGST / MGST / IGST. Accordingly, it has been submitted in the Revenue Submissions that services rendered by PIL to the Applicant are taxable. In this regard, it is humbly submitted that the above mentioned contention in the Revenue Submissions is an incorrect interpretation of law and is liable to be rejected. 13. It is submitted that it is well settled that taxing statutes are to be strictly construed i.e. a taxing statute has to be looked at merely in terms of its language and there is no room for any intendment, The reasoning behind such construction of taxing statutes is that there is no concept of equity in taxation law. This principle has been upheld by the Hon ble Supreme Court in a series of judgments, including by a Constitutional Bench of the Hon ble Supreme Court in Hansraj Gordhandas v. HH Dave, (1969
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sumption . Accordingly, insofar as the above mentioned contention in the Revenue Submissions is concerned, it is humbly submitted that the same is an incorrect interpretation of the statutory provisions and liable to be rejected. Advance Ruling No. KAR ADRG 9/2018 29.06.2018 = 2018 (7) TMI 835 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA referred to in the Revenue Submissions supports the Applicant s contention that the manufacturing activity undertaken by PIL is not in the nature of supply of services and. therefore, no GST is liable to be paid on the same 14. In the Revenue Submissions, reliance has been placed on the Advance Ruling No. KAR ADRG 9/2018 29.06.2018 = 2018 (7) TMI 835 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA given by the Authority for Advance Ruling, Karnataka (Karnataka Advance Ruling ) in the case of M/s. United Breweries Limited ( UBC). The facts of the Karnataka Advance Ruling are similar to the facts of the present case insofar as UBL, apart from manufacturing beer
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decision in the Karnataka Advance Ruling, it is humbly submitted that the said decision is directly contrary to the position taken in the Revenue Submissions. The said decision, in fact, supports the interpretation adopted by the Applicant. It is humbly submitted that in the instant facts, PIL is not Working on another person s goods. This is a case where PIL purchases the required materials on their own and then manufactures and packs Products out of such goods. Therefore, it is respectfully submitted that the present case cannot be said to be one of any treatment or process which is applied to another person s goods . Accordingly, relying on the Karnataka Advance Ruling, it is humbly submitted that PIL is not engaged in supply of any service to the Applicant and, therefore, no GST is liable to be paid. Merely because the cost of raw materials and ingredients used in the manufacture of Products is reimbursed by the Applicant to PIL, it cannot be concluded that PIL is engaged in job wo
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of S. No. 3 of Schedule Il of the CGST Act / MGST Act only if such treatment or process is applied to another person s goods. 19. In the present case, PIL is undertaking the manufacturing activity on its goods procured and paid for on its own. In this regard, sample invoices have already been filed to demonstrate that PIL is purchasing the raw materials by itself and is the owner of the raw materials. The said invoices are enclosed herewith and marked as Annexure-4. Therefore, it cannot be said that PIL is undertaking any treatment or process on another person s goods. Accordingly, it is humbly submitted that the manufacturing activity undertaken by PIL can neither be said to be in the nature of job work, as defined under the CGST Act / MGST Act, nor said to be within the scope of supply of services in terms of S. No. 3 of Schedule 11 of the CGST Act / MGST Act. 20. In this regard, it is humbly submitted that merely the fact that the cost of raw materials and ingredients used to make
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ity on goods owned by the Applicant. Without prejudice to the above mentioned submissions if supply of Products is held to be a supply of service by way of job work the same shall be levied CGST at the rate of 2.5%, MGST at the rate of 2.5% and IGST at the rate of 5%. 21. In the Revenue Submissions, it has been contended that the activity undertaken by PIL for the Applicant would fall in the tax net, fastening tax burden of 18% (9% CGST + 9% MGST) under Service Tariff Heading No. 9997 (Residuary Entry) of other services (washing, cleaning and dyeing services: beauty and physical well being services, and other miscellaneous services including services nowhere else specified). 22. In this regard, without prejudice to the submission that no CGST / MGST /IGST is leviable on the amount of consideration received by PIL (including the fixed fee and costs specified in Schedule Il of the Agreement), it is humbly submitted that if brewing, bottling and supplying Products is considered to be a ta
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nd Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of heading 9988. Rule 3 of the General Rules for Interpretation of the First Schedule to the Customs Tariff Act, 1975 provides that the heading which provides the most specific description shall be preferred to headings providing a more general description. 24. In the present case, description of S. No. 26 (1) (1) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017, as amended by Notification NO. 31/2017Central Tax (Rate) dated 13.102017 is more specific that the residuary entry referred to in the Revenue submissions. Accordingly, if brewing, bottling and supplying Products is considered to be a taxable supply, the same shall be levied CGST (in case of intra-State supply) at the rate of 2.5% in terms of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended by Notification No. 31/2017-Central Tax (Rate) dated 13.10.2017. Similarly,
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eing in the nature of alcoholic liquor for human consumption is excluded from the ambit of Central Goods and Services Tax Act, 2017 (CGST Act ) / Maharashtra Goods and Services Tax Act, 2017 (MGST Act)/ Integrated Goods and Services Tax Act, 2017 ( IGST Act ). Whether Central Goods and Services Tax Act, 207 (hereinafter referred as ICGST ) under section 9(1) of the CGST Act) Maharashtra Goods and Services Tax (hereinafter referred as MGST) under section 9(1) of the MGST Act / Integrated Goods and Services Tax (hereinafter referred as IGST) under section 5(1) of the IGST Act can be levied on the above mentioned consideration paid for supply of alcoholic liquor for human consumption? 2) Without prejudice to the submissions made elsewhere, if the supply of Beer is held to be a service by way of job work in relation to Beer, what shall be the rate of CGST/UTGST/IGST that shall be levied on the said taxable supply? In this connection, I am submitting my submission as under: M/s. Crown Beer
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an consumption is excluded from the ambit of levy of CGST / MGST/IGST. Supply of services related to liquor for human consumption is not excluded from the ambit of levy of CGST/MGSTY IGST which means services rendered by PIL 10 M/S. Crown Beer India Pvt Ltd. Are taxable. Hence, the supply of services by PIL to M/s. Crown Beer India Pvt Ltd. would fall in the GST tax-net, fastening tax burden of 18% (9% CGST + 9% SGST) under Services Tariff Heading No.9997 (Residuary Entry) of other Services (washing, cleaning and dyeing services; beauty and physical well-being services; and other miscellaneous services including services nowhere else classified). This view is confirmed by the judgment given by The Authority on Advance Rulings Karnataka GST in the Advance Ruling no. KAR ADRG 9/2018 Dated 29 June, 2018 = 2018 (7) TMI 835 – AUTHORITY FOR ADVANCE RULINGS, KARNATAKA. 04. HEARING The case was taken up for Preliminary hearing on dt. 25.07.2018 with respect to admission or rejection of present
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pplicant incurs to the PIL a fixed fee and costs specified in Schedule II to the Agreement as a consideration for supply Of Products. Supply of Products, being in the nature of aIcoholic liquor for human consumption, is excluded from the ambit of Central Goods and Services Tax Act, 2017 ( CGST Act) / Maharashtra Goods and Service Tax Act, 2017 (MGST Act )/ Integrated Goods and Service Tax Act, 2017 ( IGST Act ). Whether Central Goods and Services Tax (hereinafter referred to as the CGST ) under Section 9(1) of the CGST Act/ Maharashtra Goods and Service Tax (hereinafter referred to as the MGST ) under Section 9(1) of the MGST Act/ Integrated Goods and Service Tax (hereinafter referred to as the IGST ) under Section 5 (1) of the IGST Act can be levied on the above mentioned consideration paid for supply of alcoholic liquor for human consumption? With respect to the costs incurred by the applicant, we find that the costs are paid by the applicant to PIL as a consideration for purchasing
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ts to PIL for purchase of the said goods, there is no supply rendered by them to each other since as per the definition of supply of services. In the GST Law, the taxable event would be SUPPLY. Hence it is the most important part of the GST law, as it will determine the taxability or otherwise under the GST law. The definition of Supply in the CGST Act, is an inclusive one. It is contained in Section 7 of the CGST Act. Apart from Section 7, Schedules I to Ill are provided which explain various provisions related to supply. SUPPLY includes all forms of supply of goods and/or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. From the transaction between the applicant and PIL, it is clear that in respect of the costs paid and received there is no supply of goods/ services in the form of sale, transfer, barter, exchange, etc. and therefore there is no requ
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be a service by way of job work in relation to Beer, what shall be the rate of CGST/UTGST/IGST that shall be levied on the said taxable supply? With regard to this question we may mention that supply of beer as such is not a service. What is service in this case the entire gamut of brewing/ manufacturing, packaging and supplying beer by PIL to the applicant, for which they are receiving fixed costs for job work as discussed above. If the applicant had brew/manufactured, packaged and supplied beer on their own account then their activity would not have been liable to tax under the GST laws since the supply of alcoholic liquor for human consumption is not taxable under the GST laws. In the discussions made above by us it is very clear that it is the job work which is a service provided by PIL that is required to be taxed. 05. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 an
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