TMI Blog2018 (7) TMI 1422X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant on the chassis itself, except fitment/mounting of bus body on the same. At the same time, bus body building involves use of raw materials/inputs etc., for manufacture/fabrication of bus body and the cost of these inputs, etc., do form the part of value which is being charged by the applicant from its customers - It emerges that the customer is providing only chassis. All inputs/materials required for fabrication of bus body, has to be used by the applicant from its own account. Under such situation it is the bus-body which is being fabricated and also being mounted on the chassis provided by the customer. Therefore, it is not merely job-work. It is supply of bus body and an activity of fitting/mounting of bus body on chassis i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant, the transaction is a job work not a contract of sale of goods for the following reasons. The term job work has been defined u/s 2(68) of the CGST Act 2017 which is reproduced as under: Section 2 Subsection 68 defines Job Work. Job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression job worker shall be construed accordingly; (ii) A bare reading of the above definition gives an impression that any agreement for carrying out fabrication fitting of any movable property on goods belonging to another is a job work. In its case, from the reading of the enclosed contract, the agreement is for fabrication fitting of bus bodies on the chassis su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has also clarified under HVAT Act 2003 that the fabrication fitting mounting of bus body in the chassis supplied by the other party is a work contract not sale of bus body. 3. Questions on which ruling has been sought by the applicant, are as under: i.) Whether the activity of fabrication fitting and mounting of bus bodies on the chassis supplied by the other party is a job work (SAC 9988 or contract of sale of bus body HSN CODE 8707 ii.) If it is held to be a job work, what rate of tax is required to be charged and paid. Comments of the concerned officer U/S 98(1) OF THE CGST/HGST ACT. 2017 4. The DETC Faridabad (West), vide letter No. 1286 dt.23.04.18, submitted that the applicant is engaged in business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... building there is supply of goods and services. Thus, classification of this composite supply, as goods or service would depend on which supply is the principal supply which may be determined on the basis of facts and circumstances of each case. 7. In view of the aforesaid clarification issued by the CBEC (now CBIC), it is observed that composite supply has been defined under Section 2(30) of the CGST/HGST Act, 2017, as under: (30) composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . All inputs/materials required for fabrication of bus body, has to be used by the applicant from its own account. Under such situation it is the bus-body which is being fabricated and also being mounted on the chassis provided by the customer. Therefore, it is not merely job-work. Rather it is supply of bus body and an activity of fitting/mounting of bus body on chassis is an ancillary activity to the principal activity of supply of bus-body. Hence, in terms of the clarification issued by the CBEC vide circular No.34/8/2018-GST dt.03.03.2018, the impugned activity is a composite supply, with principal supply being supply of bus-body. ADVANCE RULING UNDER SECTION 98 OF THE CGST/HGST ACT 2017 10.1. The activity of fabrication and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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