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2022 (12) TMI 340 - AAR - GSTClassification of services - export of services or not - services provided by the company to its parent company relating to the test benches which are in the name of MRO services - be classified under heading 9987 as Maintenance, Repair or Overhaul services in respect of aircrafts, aircraft engines and other aircraft components or parts or not - place of supply - location of the recipient - N/N. 02/2020-Integrated Tax dated 26th March 2020. HELD THAT:- The contract is for Maintenance and Repair of MERMOZ system which is used for testing the air worthiness of the aircraft. Therefore the impugned services are relevant to maintenance and repair services of instruments for testing airworthiness of an aircraft - the impugned services are covered under maintenance and repair services of other machinery and equipment and are classifiable under SAC 998719. The entry at SI.No. 25(ia) and concessional rate of GST of 5% is applicable to only Maintenance, repair or overhaul services in respect of aircrafts, aircraft engines and other aircraft components or parts. In the instant case the applicant is providing maintenance and repair services of test bench equipment (Mermoz system) which are used for testing air worthiness of an aircraft. The said equipment does not qualify to be an aircraft or as an aircraft engine. To be termed as 'other aircraft components or parts', it should form a constituent piece or ingredient that is used to build an aircraft, which is not the case here. The test bench equipment (Mermoz system) neither forms part of aircraft nor forms a component of aircraft and therefore the said entry at SI.no.25 (ia) of Notification No. 11/2017-Central Tax(Rate), dated: 26.06.2017 as amended vide Notification No.02/2020-Central Tax (Rate), dated: 26.03.2020 and the concessional rate of GST of 5% is not applicable. The place of supply needs to be determined to decide whether the impugned supply of services by the applicant amounts to export of services or not. The determination of place of supply is beyond the jurisdiction of this authority and we don't intend to discuss the other issues / points of the definition.
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