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2019 (1) TMI 1933 - AAR - GSTApplicability of GST - supply or not - export of supply or not - manufactures capital goods (known as ‘the tooling kit’) as per the specifications of the overseas customer and use within the factory - cost of the capital goods so manufactured reimbursed from the customers by raising the Invoice and amount is received in convertible foreign exchange - HELD THAT:- The manufacture of tooling kit for further manufacture of forgings is to be treated as a separate supply. - The amount recovered from Indian customers after the manufacture of tooling kit is leviable to CGST and SGST or IGST. In the instant case it is undisputed fact that the applicant will supply only export the components i.e. forgings, which will be manufactured from the tooling kit. Hence, the tooling kit in respect of which charges are received will never be sent outside India. It is also well settled that to export means the goods must be loaded and shipped outside the territorial water of India (B K Wadeyar vs Daulatram Rameshwar Ial [1960 (9) TMI 64 - SUPREME COURT]). As discussed above, it is clearly established that the amount recovered from foreign customers after the manufacture of tooling kit cannot be treated as export, hence no question of zero rated arises.
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