In Re: M\/s. Automobile Corporation of Goa Limited.
GST
2018 (10) TMI 1044 – AUTHORITY FOR ADVANCE RULING, GOA – 2018 (18) G. S. T. L. 359 (A. A. R. – GST), [2019] 64 G S.T.R. 258 (AAR)
AUTHORITY FOR ADVANCE RULING, GOA – AAR
Dated:- 21-8-2018
ARN No. GOA\/GAAR\/1 of 2017-18\/2018-19\/1929
GST
ASHOK V. RANE AND S.K. SINHA, MEMBER
\nPerson Present for Hearing : Shri Ragavendra Singh Butola, Chief Financial Officer alongwith Shri Rajesh Sukla, Head of Indirect Tax of Tata Motors
\nPROCEEDING
\n(Under Section 98 of the Goa Goods and Services Tax, Act 2017)
\nThe present application has been filed under section 97 of the Goa Good and Services Tax Act, 2017 and the Central Goods and Services Tax, Act 2017 (hereinafter referred to as the SGST Act and CGST Act) by Automobile Corporation of Goa Limited, seeking an Advance Ruling in respect of the following question:
\n“Whether the activity of building and mounting of the body on the chassis by the Applicant will result in supply of<\/p>\n
= = = = = = = =<\/p>\n
Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n esult in supply of goods under HSN 8707 or supply of services under HSN 9988? To examine the issue, the applicant had referred provision of section 2(68) and Schedule Il of the of the CGST and SGST Act. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n In this connection, it is relevant to refer explanation provided under section 143 of the CGST\/SGST Act, 2017 which is read as under: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" In Re: M\/s. Automobile Corporation of Goa Limited.GST2018 (10) TMI 1044 – AUTHORITY FOR ADVANCE RULING, GOA – 2018 (18) G. S. T. L. 359 (A. A. R. – GST), [2019] 64 G S.T.R. 258 (AAR)AUTHORITY FOR ADVANCE RULING, GOA – AARDated:- 21-8-2018ARN No. GOA\/GAAR\/1 of 2017-18\/2018-19\/1929 GSTASHOK V. RANE AND S.K. SINHA, MEMBER Person … Continue reading “In Re: M\/s. Automobile Corporation of Goa Limited.”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-14534","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14534"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/14534\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nAs per section 2(68) of the CGST and SGST Act, the term job work means;
\n “any treatment or process undertaken by a person on goods belonging to another registered person and the expression 'job worker' shall be construed accordingly.”
\nAs per para 3 of the Schedule II of the CGST Act, which specifies certain activities to be treated as supply of goods or supply of services – 'Any treatment or process which is applied to another person's goods is a supply of service.
\nHence as per the application the chassis is sent to the applicant for building body. The question arises for consideration is
\n1. Is the chassis complete without a body? -If the answer is affirmative then anything added more by anyone is the sale of goods.
\n2. If answer is negative, -It is a semi-finished goods then<\/p>\n
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\n“For purpose of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or job worker.”
\nAs per the ratio of the judgement held in case of Prestige Engineering (India) Ltd vs CCE on Meerut [1994 (73) ELT 497 (SC)] = 1994 (9) TMI 66 – SUPREME COURT OF INDIA, addition or application of items by job worker would not detract from the nature and character of his work.
\nGST law does not distinguish between raw material, finished goods and semi-finished goods. It talks about input and Capital goods. Even, semi-finished goods or intermediates are goods and in turn 'Input' by the principal or the job worker.
\nSo, the argument of the applicant that they use their own material, hence, they should not be treated as job worker is not tenable under the provision of law.
\nMoreover, it is clarified t<\/p>\n
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