IN RE: M/s. SILGAN DISPENSING SYSTEMS INDIA PRIVATE LIMITED
GST
2018 (12) TMI 1087 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – 2019 (20) G. S. T. L. 635 (A. A. R. – GST)
AUTHORITY FOR ADVANCE RULING, MAHARASHTRA – AAR
Dated:- 14-8-2018
GST-ARA-26/2018-19/B-89
GST
SHRI B.V. BORHADE, AND SHRI PANKAJ KUMAR, (MEMBER)
PROCEEDINGS
(Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
The present application has been filed under section 97 of the Central Goods and Services Tax Act 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by SILGAN DISPENSING SYSTEMS INDIA PRIVATE LIMITED the applicant, seeking an advance ruling in respect of the following issue.
whether on transfer of machines & moulds (being “capital goods”), from the premises of the job-worker to another job-worker, which were originally received by said job-worker under the
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rt of business under Slump Sale vide BTA dt. 31.08.2016 to Aphrodite Packaging Solutions Pvt. Ltd including subject item of capital goods. Thereafter, the name of the company was changed to M/s. Silgan Dispensing Systems India Pvt. Ltd. form Aphrodite Packaging Solution Pvt. Ltd. Your reference kindly find attached herewith the Name Change Certificate dated. 13.11.2017 marked as ANNEXURE-I.
That accordingly, the present application is being filed by M/s. Silgan Dispensing Systems India Private Limited (hereinafter referred to as Appellant). That as informed above the principal manufacturer M/s. MWV India Pvt. Ltd. during the period 2012 had sent machines/ moulds for job work to M/s. Shaily Engineering Plastics Limited (hereinafter referred to as “job-worker”). Brief description the goods sent is attached herewith marked as ANN-II.
That subsequently, the Appellant now propose to transfer said machines/moulds under the GST regime from the premises of Shaily Engineering Plastics Limited
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-1
61,746
19.
Zara-1 Tooling
Zara-1
7,29,39,043
20.
Cavity Insert
TS-800
14,31,255
21.
Ergo valve Body Mold
TS-800
69,95,374
22.
Ergo valve Body Mold Spare Parts
TS-800
26,176
23.
Injection Mould
TS-800
70,86,456
24.
Injection Mould Spare Parts
TS-800
11,71,351
25.
Mannual Assembly Fixture
Zara-1
1,23,165
26.
U Tube Fixture
Zara-1
32,130
27.
Refurbishment of standard value bod (Injection) Mold
TS-800
9,53,927
28.
Modification in fully automatic assembly machine for pump assembly
Zara-1
19,42,707
29.
Core insert for ZARA CAP-40 nos
Zara-1
6,19,618
30.
Air leak test mechanism
Zara-1
7,98,244
31.
23 MM FAL cap fixture for T 1146
Zara-1
35,786
32.
23 MM FAL CAP Nozzle fixture for T 1147
Zara-1
25,562
33.
Outlet Switch Fixture for T 1148
Zara-1
51,124
34.
Base fixture for T 1149
Zara-1
30,674
35.
Zara-1 -Tooling
Zara-1
1,04,070
36.
16 Cavity Injection Mould for Nozzle for T-1117
Plant & Machinery
48,83,987
37.
Menuel
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t, 1944. That further due to change in the constitution as detailed in annexure A to this application, M/S. Silgan Dispensing Systems India Private Limited is intending to transfer the machines/ moulds to M/s. Vasanth Tools Crafts Pvt. Ltd.
ii. That in light of the said factual background, we draw reference to section 141 of the CGST Act, 2017 which provides for transitional provisions relating to job work. That sub-section 1 of section 141 deals with goods removed to job worker. For your reference the extracts of the relevant provisions are detailed below:
141. (1) Where any inputs received at a place of business had been removed as such or removed after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of
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That in support of the said contention we crave leave to refer and rely upon below detailed case laws:
2014 (299) ELT 3 (Mad.)- Metal Weld Electrodes = 2013 (11) TMI 240 – MADRAS HIGH COURT Held: Interpretation of statutes – Legislative intent – It has to be gathered from plain language of particular provision of law when there is no ambiguity in reading it – There is no presumption that particular language used in particular provision of law is without having any meaning for same.
2012 (283) ELT 188(A.P.)- IDBI ltd. = 2012 (10) TMI 873 – ANDHRA PRADESH HIGH COURT Held: Interpretation of statutes – Taxing statute – It has to be strictly constructed – Introducing or omitting any words from it is not permissible – When language of statute is plan and clear, any exercise to know intention of legislature is not called for nor taxing officer travel beyond power to levy and collect tax.
(2012) 281 ELT 321 (Mad.)- Nirma Limited = 2012 (10) TMI 832 – MADRAS HIGH COURT Held: The law is n
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ssumed. Implying thereby that when the legislature fails to provide for an enactment the subordinate legislation cannot not introduce enactment which was otherwise not provided in law.
Hence when the transitional provisions have not detailed any provision in respect of capital goods/ moulds then admittedly the same deserve to be cleared without payment of duty when essentially the duty was paid at the time of recipiet of the said goods under the erstwhile Central Excise Act, 1944.
v. That further we crave leave to refer and rely upon the CGST Circular no: 38/12/ 2018 dated 26.03.2018. That the said Circular is Issued to bring clarification in respect of job work and related compliance requirement for the principal and the job-worker.
vi. That specifically para. 8.4 of Circular dated 26.03.2018 provides that where goods are sent from one job worker to another job worker, the goods may move under Challan issued either by the principal or the job worker. In the alternative, the challan
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“Supply” & accordingly GST is not payable on such transfer.
Additional submissions on 27.06.2018
This is in reference to the above mentioned subject matter. That the short issue Involved under the present dispute is that whether GST is payable on transfer of capital goods/moulds from one job worker to another job worker, where originally the said goods were transferred by Principal to the job worker under erstwhile Central Excise Act, 1944.
That accordingly it is most humbly submitted that originally the capital goods/moulds were transferred by M/s. Meadwestvaco India Pvt. Ltd. (hereinafter referred to as “MWV”) to M/s. Shaily Engineering Plastics Ltd. (hereinafter referred to as “Shaily” for sake of brevity), and Shaily had availed credit on the said capital goods/ moulds.
That subsequently the business of Meadwestvaco was transferred as a going concern to M/S. Aphrodite Packing Solutions Pvt. Ltd. with effect from 31.08.2016. Thereafter the name of the company was changed to M/s.
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apital goods/mould, provisions of Section 14 of CGST Act,2017 cannot be made applicable to capital goods/mould and the same can be removed even after expiry of six months without payment of any duty.
That in light of above factual as well as legal background a ruling is sought in respect of Whether GST is payable when capital goods/moulds are transferred from one job worker to another job worker when originally said capital goods/ moulds were transferred by principal to the 1st job worker under delivery challan under erstwhile C. Ex. Law.
Additional Submissions on 25.07.2018
Facts:
A. The issue involved under the present dispute is that whether on transfer of machines (being capital goods) & moulds from the premises of the first job-worker to another job-worker under the CGST Act, 2017, which were originally received by the first job-worker under the erstwhile Central Excise Act, 1994 will constitute as “supply”.
B. That factual background as involved under the present applicatio
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Silgan has transferred the capital goods/moulds from 1st Job worker (i.e) M/s. Shaily to 2nd Job worker (i.e) M/s. Vasanth Tools Crafts Pvt. Ltd (hereinafter referred to “M/s. Vasanth for sake of brevity). That for your reference kindly find attached herewith copy of Challan and E-way bill duly marked as ANNEXURE-C.
That accordingly, the present application is being filed by M/s. Silgan in order to seek clarity in respect of the legal position that whether transfer of capital goods/moulds by the 1st Job worker to 2nd job worker will constitute as “'Supply” under CGST Act, 2017 or not.
Legal Submissions:
i. That in light of the above factual position, we prima facie crave leave to refer and rely upon section 143 of the CGST Act, 2017 which provides as below:
A registered person (hereinafter in this section referred to as the “principal l') may under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods, without paymen t of tax, to job work
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ned to the said place within six months from the appointed day;
That in appreciation of the provision of law detailed supra, it is affirmed that transitional provisions relating to job work were limited to inputs only and the same cannot be made applicable to capital goods/ moulds and hence even if the capital goods/ moulds are transferred after expiry of 6 months as provided, still no GST shall be applicable on the said transfer of capital goods/ moulds.
iv. That in support of the above detailed contentions, we again crave leave to refer and rely upon section 143 of the Act, wherein certain conditions are stipulated for transfer of inputs or capital to job worker without payment of tax, the same are detailed below for your reference:
(a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out, to any of his place of business, witho
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on such transfer of capital goods/ mould was availed by M/S. Shaily as consignee/ recipient of goods as provided/ permitted under erstwhile Cenvat Credit Rules. It is most humbly submitted that when Capital Goods/ Moulds belonging to principal manufacturer are transferred from the premises of supplier of principal manufacturer directly to job worker of principal manufacturer as “Consignee & Cenvat credit on such transfer is availed by job worker of principal supplier, provisions of Rule 4(5)(b) of erstwhile Cenvat Credit Rules,2004 for receipt back Of such capital goods/ moulds by principal manufacturer within stipulated time lime of two years are not applicable as provided in light of Circular No. 637/28/2002-CX., dt. 08.05.2002. Accordingly in appreciation of the Circular dt. 08.05.2002, the stipulated time of two years as provided under rule 4(5)(b) is admittedly not applicable in case where cenvat Credit was availed by M/s. Shaily(being job worker) as consignee/ recipient of goods
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icinal and Toilet Preparations (Excise Duties) Act, 1955, (16 of 1955.) the Additional Duties of Excise (Goods of Special Importance) Act, 1957, (58 of 1957.) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978, (40 of 1978.) and the Central Excise Tariff Act, 1985 (5 of 1986.) (hereafter referred to as the repealed Acts) are hereby repealed.
(2) The repeal of the said Acts and the amendment of the Finance Act, 1994 (32 of 1994.)(hereafter referred to as “such amendment” or “amended Act”, as the case may be) to the extent mentioned in the sub-section (1) or section 173 shall not-
(a) revive anything not in force or existing at the time of such amendment or repeal; or
(b) affect the previous operation of the amended Act or repealed Acts and orders or anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the amended Act or repealed Acts or orders under such repealed or amen
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ve unless explicitly provided to be retrospective by legislature – Interest liability upheld – Rule 14 of Cenvat Credit Rules, 2004 read with Section 11AB of Central Excise Act, 1944.
ix. That similarly, the Hon'ble Gujarat High Court in the case of Goyal Traders as reported in 2014(302) ELT 529 = 2011 (8) TMI 720 – GUJARAT HIGH COURT has explained that Amendments, either creating fresh liability hitherto not existing, or extinguishing accrued rights would be considered prospective unless the statute either specifically or by necessary implication gives such provision retrospective effect.
x. That the Principal bench, New Delhi under similar situation in the case of Gwalior Alcobrew Pvt. Ltd as reported in 2017(309) ELT 692 = 2014 (8) TMI 880 – CESTAT NEW DELHI has held that Interest on differential duty levied on finalization of provisional assessment – Sub-section (3) of Section 18 of Customs Act, 1962 was not in force on the date of filing of Bills of entry nor existing even on th
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er section 143 stands complied with in present case for transfer of capital goods by 1st job worker to 2nd job worker under “job work procedure”.
xii. That notwithstanding anything contained above, no time limit is prescribed in case of moulds and dies, jigs and fixtures, or tools either under the erstwhile law or the present law and hence conditions prescribed under section 143 in case of moulds and dies also stans complied with.
xiii. That further we crave leave to refer and rely upon the CGST Circular no: 38/12/ 2018 dated 26.03.2018. That the said Circular is issued to bring clarification in respect of job work and related compliance requirement for the principal and the job-worker.
xiv. That specifically para. 8.4 of Circular dated 26.03.2018 provides that where goods are sent from one job worker to another job worker, the goods may move under Challan issued either by the principal or the job worker. In the alternative, the challan issued by the principal may be endorsed by the
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reference to above subject matter. That in light of the hearing dt.26.07.2018, Your Honour had insisted upon clarification in respect of Cenvat credit in relation to capital goods availed by job worker. That accordingly, we carve leave to refer and rely upon the case of Uni Cast Pvt Ltd. as reported in 2016 (331) E.L.T. 369(All.) = 2015 (10) TMI 375 – ALLAHABAD HIGH COURT, whereby the Hon'ble Allahabad High Court has held and clarified that Cenvat credit can be availed by the Job-worker, the extract of the said case law is annexed herewith and marked as ANNEXURE-A.
Further in support of the contention we also wish to refer to case of German Remedies Ltd. as reported in 2002(144) ELT 606 (Tri.-Mumbai) = 2002 (4) TMI 140 – CEGAT, MUMBAI, extract of the same is annexed herewith and marked as ANNEXURE-B.
That notwithstanding the above, it is further submitted that Rule 3(5) of the erstwhile Cenvat Credit Rules, 2004 specifically provided that “When inputs or capital goods, on which Cenva
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oved as such or removed after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordance with the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion of the job work or otherwise, are returned to the said place within six months from the appointed day:
That on bare reading of the said provision and affirmed understanding can be attained that the transitional provisions solely covered inputs and their removal as such and further there exist no provision of law under CGST Act, 2017 providing for any ITC reversal mechanism in respect of removal of capital goods as such or after use hence in the scenario when the said provision failed to provide any explanation in respect of capital goods then no reversal on as such removal can be Subjected to capital goods and molds and tools in l
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ruling on.
(i) Whether on transfer of machines & moulds (being “capital goods”), from the premises of the job-worker to another job-worker, which were originally received by said job worker under the erstwhile Central Excise Act, 1944 will constitute as “supply” under GST.
2. M/s. Silgan Dispensing Systems India Pvt. Ltd., registered under GSTIN NO.27AAPCA1687D171 is engaged in Trading Business. The applicants in Point No.15 (enclosed as Annexure 'A'), have stated that originally during the period 2012-13 & 2013-14, the machines & moulds were transferred to M/s. Shaily Engineering Plastics Limited hereinafter referred to as job worker') directly by the supplier of the principal manufacturer namely M/s. MWV India Pvt. Ltd.(hereinafter referred to as 'first principal manufacturer') Further in August, 2017, M/s. MWV India Pvt. Ltd., sold part of business under Slump Sale vide BTA dated 31.08.2016 to M/s. Aphrodite Packaging Solutions Pvt. Ltd., (herein after referred to as 'secon
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an be construed that the provisions detailed in Section 141(1) of the CGST Act, 2017, confine themselves to inputs only, whereas goods under consideration are capital goods in the nature of machines and moulds and in absence of any specific provision under the transitional provisions in respect of receipt of capital goods by job-worker under erstwhile Central Excise Law & lying with him as on appointed date of GST, present transfer of capital goods will not entail any GST liability. In support of the above said contention, the applicant relied upon the following judgements.
a. 2014 (299) ELT 3 (Mad.) = 2013 (11) TMI 240 – MADRAS HIGH COURT – Metal Weld Electrodes.
b. 2012 (283) ELT 188 (A.P.) = 2012 (10) TMI 873 – ANDHRA PRADESH HIGH COURT – IDBI Ltd.
c. 2012 (281) ELT 321 (Mad.) = 2012 (10) TMI 832 – MADRAS HIGH COURT – Nirma Ltd.
d. 2010 (262) ELT 50 (SC) = 2010 (7) TMI 556 – SUPREME COURT OF INDIA – Balwant Singh.
4. Further, the applicant relied upon Para 8.4 of the CGST
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cise Law & lying With job worker as on appointed date of GST law the transactions of subsequent transfer of said items of machines & moulds (being Capital Goods) to another job worker upon request of principal manufacturer under “job work process” would not constitute as “Supply” & accordingly GST is not payable on such transfer.
FINDINGS
6. The basic issue to be decided in the application is whether on transfer of machines & moulds (being licapital goods”), from the premises of the job-worker to another job-worker, which were originally received by said job-worker under the erstwhile Central Excise Act, 1944 will constitute as “'supply” under GST.
The applicant in Point No.15 of the application, have stated that the originally the capital goods i.e. machines & moulds (pertaining to M/s. MWV India Pvt. Ltd., ie. first principal manufacturer) were sent for job work to M/s. Shaily Engineering Plastics Limited (job worker) during the period 2012-13 & 2013-14. Further, the applicant has
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ing, testing, repair, reconditioning etc., for the manufacture of final products or any other purpose, and it is established that the capital goods are received back by the manufacturer or the provider of output service, as the case may be, within two years of their being so sent:
(iii) If the capital goods are not received back within the time specified (i.e. two years) by the manufacturer, the manufacturer shall pay an amount equivalent to the CENVAT credit attributable to the capital goods by debiting the CENVAT credit.
In this case, M/s. MWV India Pvt. Ltd., (ie. first principal manufacturer) sent capital goods for job work to M/s. Shaily Engineering Plastics Limited (job worker) during the period 2012-13 & 2013-14. The applicant has taken over the business (including the capital goods) of first principal manufacturer in August, 2017. Till such time the capital goods was there with the Job worker viz. M/s. Shaily Engineering Plastics Limited (i.e. from 2012-13, 2013-14 to August
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the declaration electronically in FORM GST TRAN-1 and included the said capital goods in his TRAN-1;
(b) When the applicant took over the business of first principal manufacturer in August, 2017, it has to be seen whether the said capital goods are shown in his books of accounts i.e. shown the capital goods as his assets;
(c) the applicant after takeover of business from first principal manufacturer, has filed the declaration electronically in FORM GST TRAN-1 and included the said capital goods in his TRAN-1.
8. The claim of the applicant that Section 141(1) of the CGST Act,2017 does not include Capital Goods and hence GST need not be paid while transfer of capital goods from one job worker to another job worker, does not stand. The Section 141(1) of the CGST Act,2017, itself is not applicable to the applicant. The same is only for inputs sent to job worker and not the capital goods where in this case of applicant.
9. Further, the Board vide Circular No. 38/12/2018 dated 26.03.2
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ed goods to the Principal Manufacturer (M/s. MWV India Pvt. Ltd.,) or otherwise.
c) the first principal manufacturer has submitted the declaration electronically in FORM GST TRAN 1 and included the said capital goods in his TRAN-I (as on 30.06.2017) or otherwise;
d) When the applicant took over the business of first principal manufacturer in August, 2017, it has to be seen whether the said capital goods are shown in his books of accounts i.e. shown the capital goods as his assets or otherwise;
e) the applicant after takeover of business from first principal manufacturer, has filed the declaration electronically in FORM GST TRAN-I and included the said capital goods in his TRAN-1 or otherwise.
(i) Considering the facts discussed in foregoing paragraphs, the question framed by the applicant in Point No.14, whether on transfer of machines & moulds (being “capital goods”), from the premises of the job-worker to another job-worker, which were originally received by said job worker under
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er Sandhu, Advocate along with Sh. Bharat Rawal, C.A., appeared and made oral and written submission. The issue with respect to capital goods and moulds in the case was not clear and they stated that they would be making further submissions shortly. The Jurisdictional Officer was not present.
05. OBSERVATION
We have gone through the facts of the case, documents on record and submissions made by both, the applicant and the department. The basic issue before us is “whether on transfer of machines & moulds (being “capital goods”), from the premises of the job-worker to another job-worker, which were originally received by said job-worker under the erstwhile Central Excise Act, 1944 will constitute as “supply” under GST.”
The applicant has submitted that they proposed to transfer said machines/ moulds under the GST regime from the premises of Shaily Engineering Plastics Limited (their earlier job worker) to another job-worker namely M/s. Vasanth Tools Crafts Pvt. Ltd. The said capital
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e said Circular No. 637/28/2002-CX., dt. 08.05.2002 which is as below:-
Circular No.637/28/2002-CX 8th May, 2002
F.No. 267/12/2002-CX-8
Govt of India, MOF, Department of Revenue CBEC
Subject: Admissibility of CENVAT credit to inputs and capital goods used by the manufacturer outside the factory premises.
Board's attention has been drawn to the Supreme Court judgement in Civil Appeal No.5340-5341 of 2000 in the case of M/s. Jaypee Rewa Cement = 2001 (8) TMI 1332 – SUPREME COURT OF INDIA wherein the Apex Court has held that MODVAT credit on explosives used in mines (which are outside the factory premises) for mining of lime stone (intermediate product) shall be available to the manufacturing unit under Rule 57 J of the erstwhile Central Excise Rules, 1944. Accordingly, the matter of admissibility of Cenvat credit on inputs and capital goods when these are used outside the factory of manufacture of final product has been reviewed by Board in the light of new CENVAT Rules which c
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side factory]. This position remains unchanged in the present Cenvat Credit Rules, 2002.
From a reading of the Circular quoted by the applicant it is seen that nowhere it is mentioned that provisions of Rule 4(5)(b) of erstwhile Cenvat Credit Rules,2004 for receipt back of such capital goods/ moulds by principal manufacturer within stipulated time lime of two years are not applicable.
The applicant has cited Section 141 of the CGST Act, 2017, which deals with the Transitional Provisions and have submitted that on bare reading it can be construed that the said provisions are confined only to inputs, whereas goods under consideration are capital goods. Hence they have come to a conclusion that when the transitional provisions have not detailed any provision in respect of capital goods/moulds then admittedly the same deserved to be cleared without payment of duty since essentially the duty was paid at the time of receipt of the said goods under the erstwhile Central Excise Act, 1944. He
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er upon request of principal manufacturer under job work process” would not constitute as” Supply” & accordingly GST is not payable on such transfer.
Under Rule 4(5)(a) of the erstwhile CCR, 2004, the cenvat credit was allowed even if any inputs or capital goods as such or after being partially processed were sent to job worker for further processing, testing, repair, re-conditioning (or for the manufacture of intermediate goods necessary for the manufacturing of final products) or any other purposes, and it was established from the records, challans or memos or any other document produced by the manufacturer or the provider of output service, taking the cenvat credit that the goods were received back in the factory within one hundred and eighty days of their being sent from the factory or premises of the provider of output service, as the case may be. And if the inputs or the capital goods were not received back within one hundred eighty days, the manufacturer or provider of output s
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e manufacturer or the provider of output service taking the CENVAT credit that the capital goods are received back by the manufacturer or the provider of output service, as the case may be, within two years of their being so sent:
Provided that credit shall be allowed even if any capital goods are directly sent to a job worker without their being first brought to the premises of the manufacturer or the provider of output service, as the case may be, and in such a case, the period of two years shall be counted from the date of receipt of the capital goods by the job worker;
(iii) if the inputs or capital goods, as the case may be, are not received back within the time specified under sub-clause (i) or (ii), as the case may be, by the manufacturer or the provider of output service, the manufacturer or the provider of output service shall pay an amount equivalent to the CENVAT credit attributable to the inputs or capital goods, as the case may be, by debiting the CENVAT credit or otherw
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rer in August, 2017. Till such time the capital goods was there with the first Job worker (ie. for more than 3 years). As per the above Cenvat Credit Rules, 2004, if the capital goods were not received back within two years from the job worker, the manufacturer had to pay an amount equivalent to the CENVAT credit attributable to the capital goods by debiting the CENVAT credit account. In this case, the capital goods have not been received back from the first job worker even after three years and it is felt that the first principal manufacturer has not paid the Central Excise duty or debit the CENVAT account. Since, the duty has not been paid, the applicant is liable to pay GST while transferring the capital goods from the first job worker to the second job-worker namely M/s. Vasanth Tools Crafts Pvt. Ltd.
We find that the provisions of Rule 117 (Transitional Provisions) of the CGST Rules, 2017 provide for tax or duty to be carried forward under any existing law or on goods held in sto
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le I, made or agreed to be made without a consideration; and
(d) the activities to be treated as supply of goods or supply of services as referred to in Schedule II.
(2) Notwithstanding anything contained in sub-section (1),
(a) activities or transactions specified in Schedule III; or
(b)…………………………………….
(3) Subject to the provisions of sub-sections (1), and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as-
(a) a supply of goods and not as a supply of services; or
(b) a supply of services and not as a supply of goods.
From the submissions made by the applicant it appears that neither they, nor the first principal manufacturer have carried forward the capital goods into the GST regime by following the procedure prescribed by Section 117 mentioned above. Hence the subject transaction Of transferring the capital goods from the first job worker to the second job worke
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