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TMI Blog2018 (12) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... nder ambit of the Section 97 (2) (b), (e) it is given as under: b. Applicability of a notification issued under the provisions of this Act; e. Determination of the liability to pay tax on any goods or services or both; Further, the applicant being a registered person, GSTIN is 08AAIFP7583M1ZE, as per the declaration given by him in Form ARA-01, the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the application is 'admitted' to pronounce advance ruling. 1. SUBMISSION OF THE APPLICANT: The applicant have been awarded contract for providing both air conditioned and non-airconditioned vehicles on hire to the Indian Army. A copy of agreement and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract carriage' will have the same meaning as assigned to it in clause (7) of section 2 of the Motor Vehicles Act, 1988 which states that- "contract carnage" means a motor vehicle which carries a passenger or passengers for hire or reward and is engaged under a contract, whether expressed or implied, for the use of such vehicle as a whole for the carriage of passengers mentioned therein and entered into by a person with a holder of a permit in relation to such vehicle or any person authorised by him in this behalf on a fixed or an agreed rate or sum- (a) on a time basis, whether or not with reference to any route or distance; or (b) from one point to another, and in either case, without stopping to pick up or set down passengers not inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se where there is absolute exemption granted by the government, the registered person is not supposed to collect GST from the buyers/ receivers. The said section is produced for the sake of convenient reference as follows:- 11. (1) Where the Government is satisfied that it is necessary in the public interest so to do, it may, on the recommendations of the Council, by notification, exempt generally, either absolutely or subject to such conditions as may be specified therein, goods or services or both of any specified description from the whole or any part of the tax leviable thereon with effect from such date as may be specified in such notification. (2) Where the Government is satisfied that it is necessary in the public interest so to do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case, they cannot collect GST from their service receiver. Therefore, decision should be given as regards applicability of exemption notification in the present case so that the applicant is able to correctly determine its tax liability. 4. PERSONAL HEARING (PH):- In the matter personal hearing was given to the applicant, Shri Pradeep Jain, CA, (Authorised representative) of applicant appeared for personal hearing on 22.10.2018. 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. 5. FINDINGS, ANALYSIS AND CONCLUSION: a. The present application for advance ruling has been filed to seek decision on the applicability of GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cludes- (i) a maxicab; and (ii) a motorcab notwithstanding the separate fares are charged for its passengers; Thus, the essential ingredient of a contract carriage is that it plies under a contract for a fixed set of passengers, and does not allow any other passenger to board or alight from the carriage at will. A 'contract carriage' carries passengers as a group and cannot pick up passengers en-route. c. Since the rent-a-cab has not been defined under GST Act, we need to analyse the same word taking the help of Motor Vehicle Act, 1988. Dictionary meaning of Rent a cab is "Taxi" "motor vehicle" or "vehicle" means any mechanically propelled vehicle adapted for use upon roads whether the power of propulsion is transmitted thereto fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (b) of clause (7) of section 2 of the Motor Vehicles Act, 1988 and accordingly, they cannot be considered as 'non-air conditioned contract carriage' and are hence not eligible for exemption under the serial no. 15 of the exemption notification no. 12/2017 Central Tax (Rate) dated 28.06.2017. Thus, the essential ingredient of a contract carnage is that it plies under a contract for a fixed set of passengers, and does not allow any other passenger to board or alight from the carnage at will. A 'contract carnage' carries passengers as a group and cannot pick up passengers en-route. e. Even if the contract is assumed as 'non-airconditioned contract carriage', even then, serial no. 15 of the exemption notification no. 12/2017 Central Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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