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TMI Blog2018 (12) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... is 'admitted' to pronounce advance ruling. 1. SUBMISSION OF THE APPLICANT: a. The applicant is engaged in the manufacturing of TMT Steel Bars (HSN 7214) at E- 170-173, Phase-II, Bagru Industrial Area, Bagru, Jaipur, Rajasthan -303007. The Applicant is manufacturing TMT Steel Bars in its own brand name namely "Sanjog Sona TMT" 85 "Jindal TMT" (under license from Jindal Rolling Mills Ltd.) and is supplying it directly to the Customers which are registered. Apart from it the Applicant is also manufacturing TMT Steel Bars under the brand name of "Rathi Powertech" and for the sale of the said goods, the sale procedure due to business reasons are as follows:- b. The Applicant has entered into an Agreement with M/s. Rathi Steel Enterprises, Block A, 24/ 1, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi- 110044 (hereinafter referred as "M/s. RSE") and M/S. Rathi Powertech Global Pvt. Ltd., Block A, 24/ 1, Mohan Cooperative Industrial Estate, Mathura Road, New Delhi-110044 (hereinafter referred as "M/s. RPG") for use of their Trademark. The Applicant will brand the TMT Steel bars manufactured by it as Rathi Powertech as per the use of Trademark Agreements entered by it with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter personal hearing was given to the applicant, Shri Pankaj Ghiya, Advocate, (Authorised representative) of applicant appeared for personal hearing on 10.09.2018. During the PH they reiterated the submissions already made in the application for advance ruling and requested that the case may be decided at the earliest. 4. THE JURISDICTIONAL OFFICER'S COMMENTS:- 1. Whether the supply from M/s. SSPL to M/s. X on a "Bill to Ship to" mode as per provisions of Section 10(1) (b) of IGST Act, 2017 is permissible? Answer: Yes, it has been mentioned in Section 10(1)(b) that where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person has received the goods and the place of supply of such goods shall be the principal place of business of such person. 2. Whether as per the press note dated 23.04.2018 issued in relation to the transactions of supply u/ s. 10(1)(b) of the IGST Act, 2017 the use of E-way bill in the aforesaid facts i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectly dispatched from the Applicant to M/s. X and the E-Way Bill would be prepared on a "Bill to Ship to" model as per the provisions of Section 10(1)(b) of the IGST Act, 2017. It is stated that the Applicant is an associate company of M/s. Goyal. It is further submitted that the transactions are with value addition and the last transaction is with unrelated party and complying with the provisions of Section 15(1) of the CGST Act, 2017. c. The applicant wishes to despatch the goods directly to the customer. The issue is with regard to invoicing, where it is inquired whether "Bill to - Ship to" method can be followed. Section 10 (1) (b) of the Integrated Goods & Services Tax Act, 2018 contemplates such situation and is reproduced as under: "10. (1) The place of supply of goods, other than supply of goods imported into, or exported from India, shall be as under,- (b) where the goods are delivered by the supplier to a recipient or any other person on the direction of a third person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to the goods or otherwise, it shall be deemed that the said third person ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both; (c) incidental expenses, including commission and packing, charged by the supplier to the recipient of a supply and any amount charged for anything done by the supplier in respect of the supply of goods or services or both at the time of, or before delivery of goods or supply of services; (d) interest or late fee or penalty for delayed payment of any consideration for any supply; and (e) subsidies directly linked to the price excluding subsidies provided by the Central Government and State Governments. Explanation.-For the purposes of this sub-section, the amount of subsidy shall be included in the value of supply of the supplier who receives the subsidy. (3) The value of the supply shall not include any discount which is given- (a) before or at the time of the supply if such discount has been duly recorded in the invoice issued in respect of such supply; and (b) after the supply has been effected, if- (i) such discount is established in terms of an agreement entered into at or before the tim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equivalent to ninety percent of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being a related person: Provided further that where the recipient is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value of the goods or services. We find that the TMT Steel Bars manufactured by the applicant is similar in quality of what is made by M/s. RSE/RPG, (trademark contract is emphasising on it) and therefore, the value of supply of goods can be ascertained or established in accordance with Section 15 of CGST Act read with second proviso of Rule 28 of CGST Rules, 2017 with eligibility to full Input Tax Credit.. 4. We agree with the submissions made by the applicant that relationship between M/s Goyal and M/s X is not Related party relationship in accordance with sub-section (4) and (5) of section 25 of CGST Act, 2017. Thus, the transactions between M/s. Goyal and the ultimate customer i.e. M/S. X would be covered by the provisions of Section 15 of CGST Act, 2017. 6. In view of the foregoing, we rule as under:- RULING 1. The supply from M/s. SSPL to M/s. X on a "Bill to S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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