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2019 (11) TMI 479 - APPELLATE AUTHORITY FOR ADVANCE RULING, ODISHARate of GST - seeking advance rulings on the supplies made in the past supplies - royalty paid to Government for mining of Iron Ore for the period July, 2017 to December 2018 - reverse charge mechanism - as per the understanding of the Applicant, the mining lease service availed by them should be classified under the head 99733 - AAR is of the view that the present case of the Applicant does not come within the ambit of provisions of Section 97 of the CGST Act, 2017. Jurisdiction of AAR - HELD THAT:- The broad objective for setting up of the AAR/AAAR is to provide certainty in tax liability in advance in relation to an activity being undertaken or proposed to be undertaken by the Applicant as well as to reduce litigation. The activity on which the Applicant sought an advance ruling is a continuous activity and pronouncing an order on such activity shall be within the jurisdiction of the “Authority”. Merits of the case - rate of GST - HELD THAT:- On a conjoint reading of the notification no 27/2018-Central Tax (Rate) dated 31 12.2018, Minutes / Agenda / Proposal / Discussion of the GST council, we are of the view that amendments have been carried out vide the aforesaid notification to clarify the legislative intent as well as to resolve the unintended interpretations It is well settled that the legislative intent cannot be defeated by adopting interpretations which is clearly against such interpretations. Reliance placed in the decision of the Hon’ble Supreme Court of India in the case of COLLECTOR OF CENTRAL EXCISE, SHILLONG VERSUS WOOD CRAFT PRODUCTS LTD. [1995 (3) TMI 93 - SUPREME COURT], where in a ‘3’ judges Bench of the Hon’ble Court while interpreting amendments in Central Excise Tariff have held that the expression “similar laminated wood” in Heading No. 44.08 as it stood form the beginning must be construed to include within it block boards of all kinds so that the amendment in chapter Note 5 w.e.f. 19-3-19990 and thereafter w.e.f. 1-3-1992 merely clarified and made explicit that which was implicit in the heading throughout. These amendments were obviously made to end the dispute raised by the manufactures by an express statement - the ratio of the aforesaid case is squarely applicable to the instant case as well. Thus, the interpretation which defeats the intention of the legislature should be avoided. The licensing services for the right to use minerals including its exploration and evaluation received by the Applicant is taxable @ 18 % [9 % CGST and 9 % OGST] during 07/2017 to 12/2018.
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