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2022 (5) TMI 402 - AAAR - GSTLevy of GST - Valuation - determination of margin - activity of purchase of old and used motor vehicles and then sale of these motor vehicles after refurbishment - claim of deduction of cost incurred on refurbishment from the margin - AAR rejected the argument of the appellant - Notification No. 8/2018-CT (Rate) dated 25-01-2018 - HELD THAT:- The appellant’s main thrust is that to calculate margin, purchase cost should be treated as purchase price. We observe that our legislature has wisely used the word purchase price to calculate the margin as benefit of notification will not be available, if the appellant has availed input tax credit. We find that the availment of this notification No. 8/2018 -Central Tax (Rate) dated 25th January, 2018 is optional. If the appellant wishes to avail input tax credit on the components used in the refurbishment of the old and used car, they can very well avail the same without availing benefits of the said notification. However, if the benefit of the notification No. 8/2018 -Central Tax (Rate) dated 25th January, 2018 is to be availed, then the conditions for the same have to be followed. From the plain reading of the explanation (ii) to the notification No. 8/2018 -Central Tax (Rate) dated 25th January, 2018, it is noticed that the explanation (ii) clearly used the word ‘purchase price’ not the ‘purchase cost’ of the goods. It means only the amount paid at the time of purchase of used and old cars can be considered as `purchase price’ for the purpose of this notification.
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