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2018 (10) TMI 1516 - AAR - GSTLevy of GST - Job-work - supply or not - supply of Re-gasified Liquefied Natural Gas (RLNG), de-mineralized water (DM Water), Hydrogen Rich off Gas and raw water etc - applicability of Section 143 of GST - buy back of Hydrogen, Nitrogen and Steam (Industrial Gases) without payment of GST. Held that:- It is settled position of law job work is activity which may or may not tantamount to manufacture. A job worker may undertake manufacturing of goods on account of others from the inputs supplied to him free of cost, and realize job work charges on return of the goods so manufacture or processed. In such a scenario the job worker alone has the liability to pay tax on the job work charges realized. The essential requirement to be fulfilled to establish a transaction as job work is the treatment or process undertaken on the goods belonging to another. Section 143 of GST Law explain the procedure to be followed in the case job work transaction. A registered taxable person may, under intimation send any inputs without payment of tax to a job worker [or Job-work and bring back Inputs after completion of job work or otherwise, within one year of their being sent out, to any of the place of business without payment of tax. In the present case, the industrial gases are produced out of the major materials or inputs supplied by the applicant. The job worker uses some minor, ancillary goods to complete the process. The application of minor items by the job worker would not detract it being a job. Therefore the processing undertaken by M/s. Prodair Air Products on the goods belong to the applicant, another registered person qualifies as job work even if it amounts to manufacture - The transport of the inputs from principal for processing through pipe lines to the premises of job worker as well as return of processed goods after job work to the principal can’t be treated as taxable supply. Ruling:- The activity of the applicant of sending Regasified Liquefied Natural Gas (RLNG), De-Mineralized Water (DM Water), Hydrogen Rich off Gas and Raw water free of cost to M/s. Prodair Air Products Pvt. Ltd. For manufacture of Hydrogen, Nitrogen and Steam manufactured out of its amount to ‘job work’ as defined under Section 2(68) read with Section 143 of the CGST/ KSGST Acts.
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