2019 (2) TMI 742 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – TMI – Exports or not – goods exported out of India directly by the manufacturer mentioning the applicant as Third Party Exporter for the purpose of Foreign Trade Policy – zero rated supply or not? – scope of Section 97 of the CGST Act, 2017.
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Held that:- In the present case on the basis of the arguments made by them and scrutiny of records submitted by the applicant and the arguments put forth by them, it is found that their main question is whether the transaction effected in the present case can be considered as exports made by them or the manufacturer exporter Sai Fertilizers – On proper and detailed examination of full facts as put by the applicant at the time of the final hearing, it is found that this question is not covered under the purview of Section 97 of the CGST Act, 2017.
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The subject application is not maintainable and cannot be entertained and therefore no opinion is given since the matter is beyon
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to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the GST Act FACTS AND CONTENTION – AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- Statement of relevant facts having a bearing on the question(s) raised 1.1. Applicant is a company dealing in various chemical products. Applicant is engaged in the business of exporting chemicals to M/s. Ampak Company Inc. (referred to as Ampak ) in USA. 1.2. The Applicant submits that, it does not own any manufacturing facility in India. The Applicant procures the chemicals from the manufacturers for
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Copy of the Commercial Invoice dt 22/08/2017 is marked & attached herewith as Ann. 5. 1.7. The Applicant further states that for availing the benefit under the Foreign Trade Policy of the India (hereinafter referred to as FTP), the goods have been exported directly by the manufacturer by filing Shipping Bill No. 8172604 dated 22.08.2017. The Shipping Bill mentions the Applicant as the Third Party Exporter as per the condition of the FTP. Copy of the Shipping Bill dated 22.08.2017 is marked and annexed herewith as Annexure 6. 1.8. The Applicant states that, the Bill of Lading No. MSCUUD802643 prepared by the Shipping Line for the said exports also mentions the applicant as the third party exporter. Copy of the Bill of Lading is marked and annexed herewith as Annexure 7. 1.9. Applicant states that on export of the goods, they raise the invoice on Ampak vide invoice no. 16033-A. Copy of the invoice no 16033-A is marked and annexed herewith as Annexure 8. 1.10. Applicant submits that,
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he above transaction in question is an export supply made by the Applicant under the GST laws. In other words, the Applicant has exported the goods outside India as far as the GST law is concerned. 2.2. The Application submits that following provisions of GST are relevant for the purpose of the understanding export supply. 2.3. Section 2(5) of the IGST Act, 2017 defines export of goods as under. 2(5) export of goods with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India; 2.4. Firstly, the above definition is with reference to the movement of goods and not actual person moving the goods, 2.5. In the present case, admittedly there is movement of the goods from India to USA pursuant to an export order placed on the Applicant. The goods are indeed exported out of India to USA which is outside India. Thus, the above transaction shall qualify as export supply under the GST law. 2.6. Secondly, the said exports supply will be at the ha
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is provided in Para 2.42 of the FTP. The said para is extracted below for ready reference: 2.42 Third Party Exports Third party exports (except Deemed Export) a defined in Chapter 9 shall be allowed under FTP. In such cases, export documents such as shipping bills shall include name of both manufacturing exporter/manufacturer and third party exporter(s). Bank Realization Certificate (BRC), export order and invoices should be in the name of third party exporter. 3.2. Thus from a plain reading of the Para 2.42, the FTP it is clear that in case of third party exports, there are two exporters involved. One is the manufacturer exporter and the other person is the third party exporter. The manufacturer exporter can claim it as exports under FTP if the shipping bill has its name. Accordingly, the Customs Authorities have been issuing the shipping bill in the name of the manufacturer exporters. 3.3. However, all other documents such as export order, BRC, invoice is in the name of the third pa
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t submits that once it is an export of the Applicant under GST, the said export supply will be considered as zero rated supplies under Section 16 (1) of the IGST Act, 2017. 4.2. Thus, the applicant shall be said to have made the zero rated supplies under the IGST Act, 2017 in respect of the goods exported under the shipping bill mentioned above. Additional submissions on 18.09.2018 1. We are writing this letter of behalf of our client, M/s. K Uttamlal Exports Pvt. Ltd. (herein after referred to as Applicant ) who has applied for advance ruling application in Form GST ARA – 01. 2. By the above referred letter, the Jurisdictional Authority has submitted his reply before this Hon ble ARA. 3. In reply to the said submissions made by the Ld. Jurisdictional Authority, the Appellant is filing the present submissions: 4. The Applicant submits that the Applicant is a 100% exporter and has claimed refund of the unutilized balance of ITC. The Applicant has not claimed refund of ITC only on those
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een thus- Please refer Application Reference No 57 dt 267.2018 for Advance Ruling in respect of M/s. K Uttamlal Exports Pvt Ltd, (hereinafter referred to as applicant) preliminary hearing was fixed on 23.8.2018. The applicant had filed refund claim for unutilised ITC on account Of export of goods. However, on scrutiny of refund claim, it was seen that applicant was third party exporter. The parawise comments in respect of the same is as follows Annexure 1 (paras 1.1 to para 1.12). The party has submitted facts of the case. M/s. K Uttamlal Exports Pvt Ltd is engaged in the business of exporting chemicals. Since they do not have any manufacturing facility, they procure chemicals from manufacturers. However, the goods are exported directly from the premises of the manufacturer to client. The export invoice, shipping bill, bill of lading all mention the manufacturer as exporter and M/s. K Uttamlal Exports Pvt Ltd as the third party exporter. On export of goods, M/s. K Uttamlal Exports Pvt
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l and bill of lading all are in the name of manufacturer exporter. In addition to the above submissions, it may please also be noted that – 1) The same consignment is accounted as export by manufacturer exporter and third party exporter This may be consistent with FTP 2015-20, but it does not appear to be legal as far as GST Acts, 2017 are concerned. 2) ITC claimed by manufacturer exporter is acceptable as same is based on invoice issued in their name and GSTIN. But how third party exporter can claim ITC when no invoice is raised in his name. There is no supply to third party exporter as far as this export consignment is concerned. 3) Taxpayer has asked two questions for Advance Ruling (Point 14) Question 1- Whether the goods exported out of India directly by the manufacturer mentioning the applicant as Third Party exporter for the purpose of Foreign Trade Policy will be considered as exports at the hands of the Applicant under the GST laws. Yes, however, manufacturer exporter can also
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ul Thakkar, Advocate along with Sh. Janak Shah, Director & Sh. Amol Patil appeared & made contentions as per details given in their application. Jurisdictional Officer, Ms. Deepa Bhaskaran, Supdt., Division -I, CGST & Central Excise, Mumbai Central appeared and made written submissions. 05. OBSERVATIONS We have gone through the facts of the case. The issue put before us is in respect of a particular transaction effected by the Applicant in respect of an order for export of Linear Alkyl Benzene Sulphonic Acid 96%, on 8/ 8/2017 received from a foreign client namely. M/s. Ampak, vide Purchase Order Number: P17013051 from Ampak. The application was admitted on the basis of preliminary arguments and documents submitted to this office by the applicant. On being admitted the applicant made arguments and submissions as under:- The applicant, on receipt of the above confirmed purchase order from Ampak, has placed back to back purchase orders on M/s. Sai Fertilizers and Phospates Pvt
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nder GST on payment of the IGST . Hence the first question is raised by the applicant as under:- Q. No. 1) whether the goods exported out of India directly by the manufacturer mentioning the applicant as Third Party Exporter for the purpose of Foreign Trade Policy will be considered as exports at the hands of the Applicant under the GST laws? As per the said subsection (2) of Section 97 of the CGST Act advance ruling can be sought by an applicant in respect of :- (a) Classification of any-goods or services or both. (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid (e) Determination of the liability to pay tax on any goods or services or both (f) Whether the applicant is required to be registered (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or
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