TMI Blog2018 (8) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... not 'goods' for everyone and it cannot be said that it is not 'goods' for general perception and it is 'goods' for the Appellant. Ruling:- Input Tax Credit is not available to CMS Info Systems Limited on purchase of motor vehicles i.e. cash carry vans, which are purchased and used for cash management business and supplied post usage as scrap. - MAH/AAAR/SS-RJ/04/2018-19 - - - Dated:- 6-8-2018 - SHRI RAJIV JALOTA, AND SMT. SUNGITA SHARMA MEMBER PROCEEDING (under section 101 of the Central Goods and Service Tax Act, 2017 and the Maharashtra Goods and Service Tax Act, 2017) At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MGST Act. Further, the CGST Act, 2017 and MGST Act, 2017, sometimes, shall also be referred as GST Act. M/s CMS Info Systems Limited (herein after referred to as the Appellant ) had filed application for advance ruling under the provision of Section 97( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash carry vans as scrap after its usage will be treated as supply in the course or furtherance of business in terms of the provision of Section 7 of the CGST Act, 2017 and such transaction would attract GST as the disposal of cash carrying van is a transaction in connection with or incidental to or ancillary to business in so much as the sale proceeds of such vans is treated as income and reflected in P L Account, thereby marking such transaction as taxable supply attracting GST thereon. As regards, the rate of GST leviable on such supply, the applicant has not provided any invoice or has informed tariff heading of these goods. Further, it is also not clear whether after sale these would be usable as vehicles or would be fully scrapped. As the said goods do not appear in the notification no. 2/2017-C.T. (Rate) which exempts the goods from the levy of GST, these taxable supply would be taxed at rates mentioned in the Notification No. 1/2017-C.T. (Rate), which may be referred by the applicant accordingly. 6. Regarding the issue raised in the Question II of the application, wherein it was asked that if the sale of the cash carry van, as scrap after its usage, held a taxable suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upply; 10. Meaning to money has been assigned under clause (75) to Section 2 of the CGST Act, 2017, which is reproduced below: Section 2. Definition - In this Act, unless the context otherwise requires,- (1) . (2) (75) money means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveler cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value; 11. On careful consideration of the meaning assigned to the expression money , it would be clear that the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit draft, pay order, traveler cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India, only when used as consideration to settle the obligation or exchange with Indian legal tender of another denomination would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant and not the money as defined under Section 2 (75) of the CGST Act as the said currency cannot be used as money as understood in the common parlance. Further, the intention of the legislature in excluding money from the definition of goods is not to levy CGST on supply of money as otherwise CGST is leviable on supplies of intra- state supply of goods. 18. Rule 138(14) which carves out goods the transportation of which would not require the preparation of e-way bill. The said rule specifically mentioning currency under the title description of goods further substantiates the contention of the Appellant that the currency transported by the cash carry van is goods . 19. The provision of the Motor Vehicle Act, 1988 assigned meaning to goods under Section 2 (13), goods carriage under Section 2(14) and transport vehicle under Section 2(47) would also substantiate that the currency would be treated as goods. The said provisions are reproduced herein below: 2. Definition- In this act, unless the context otherwise requires,- .. (13) 'goods' includes live-stock, and anything (other than equipment ordinarily used with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is capital goods under Section 2 (19) and hence even if it is used in stray cases in transportation of bullion input tax credit is admissible as there is no bar from taking credit and in any case, the Appellant are not making any exempt supplies. 26. With the above submission and those made in their applications and additional submissions, it is humbly prayed for holding that Appellant are eligible and entitled for input tax credit of GST paid by them to vehicle manufacturers for supply of standard vehicles and GST paid on the fabrication. The Appellate Authority for Advance Ruling may also be pleased to hold cash carry vans would be covered under exclusion clause of 17(5)(a)(ii) of CGST. SUBMISSION MADE BY THE RESPONDENT 27. In response to the above submissions made by the Appellant, the respondent, in this case the 'Jurisdictional Officer' has filed their reply, which is being reproduced hereunder: 28. The applicant is engaged in the services of transportation of cash. The cash carrying vans cannot be treated merely as transport vehicles, carrying the goods as claimed by the appellant, as it is a special purpose vehicle which is deployed to collect the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (52) and Section 2(75) of CGST Act. Reliance was also placed upon the definition of the goods and goods carriage provided in the Maharashtra Motor Vehicles Act to justify their claim of transportation of money as the transportation of goods . Further to substantiate their claim, they also cited court rulings. 33. Countering the arguments made by the Appellant, Shri Anil Kumar, Supdt., the departmental Representative, inter alia, stressed on the definition of 'goods' provided under Section 2(52) of the CGST Act, arguing that the definition of the 'goods' provided in the statute clearly excludes money from its purview, and under no circumstances can be treated as goods. To corroborate their claim, he argued that the cash carry van used for transporting money is not an ordinary vehicle, but a special purpose vehicle, which is deployed for transport of the currency under the supervision of the security guards carrying arms with them and 2 other supervisors as per the guidelines prescribed by the Reserve Bank of India dated 06.04.2018. Thus the money transported by the said special purpose vans, is different from 'goods' defined under the GST law, since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd it would now be made available in respect of the following: a. Most of the activities or transactions specified in Schedule III; b. Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft; c. Motor vehicles for transportation of money for or by a banking company or financial institution; d. Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and e. Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.......... This new fact, which has come before us during the course of deciding the instant issue, also needs to be considered solemnly, before concluding our observation in the present case. The fact that the GST Council, the recommendation of which body forms the basis for formulation of the legislature related to GST, has felt the need for widening the scope of ITC by allowing the ITC in respect of motor vehicles used for transportation of money for or by a banking company or financial institution, which were previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Appellant, which they would be bereft of if the expression goods be interpreted by the literal meaning of the definition provided under GST Act, for this is not leading to the any unintended result or absurdity as such. The definitions provided under the GST law are clear enough, as we have already seen. Thus, the current context does not warrant that the definition be construed otherwise or in a different manner. (b) Further, the Appellant's contentions that the definitions provided under Section 2 of the CGST Act starts with the clause unless the context otherwise requires , and that the facts of the case call for a different interpretation of the meaning of the goods provided under Clause 52 of the Section 2 of the CGST Act, 2017 for the reason that money being transported in the cash carry vans is actually goods and not the money on account of the arguments made in the para 16 above, is also devoid of any merit. The context, as we have already seen above, does not warrant any different interpretation of the meaning of goods. (c) Thomas Cook (India) Ltd. v. Collector of Customs, New Delhi [1994(71) E.L.T. 724 (Tri)]. The cited case is related to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the clarification under the said act is not germane to the issue. (f) As regards the reliance placed by the Appellant on Rule 138(14) which carves out goods the transportation of which would not require the preparation of e-way bill, we agree with the view of the Jurisdictional Officer that the exclusion of the 'money' from the scope of the e- way bill has no bearing on the definition of the 'goods' provided in the CGST Act and the same should not prevail over the provisions laid down in Act. (g) As regards Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017, wherein full exemption has been provided to Rupee notes, placed at Sr. No. 117 and falling under chapter/heading 48/4907, when sold to Reserve Bank of India, it is noticed that the said exemption has been provided to the Rupee notes on which printing is done by RBI to convert them into currency and not the printed currency per se. Thus, this notification, relied upon by the Appellant, does not support their argument and their claims either. (h) The argument of the Appellant that, although in general understanding, what is being transported by the appellants is currency or cash or mon ..... X X X X Extracts X X X X X X X X Extracts X X X X
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