TMI Blog2019 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... formed with the fundamental objectives of carrying out spiritual activity and salvation. But it also, at the same time, sells goods and services under the auspices of the trust. The trust sells various goods and services to the people desiring to buy them and such an activity by itself forms a part of the objective of the trust - The main activity or object of the trust includes trade and commerce and as the definition of business under the CGST Act includes the words trade and commerce it can be said that the appellant is engaged in supply of goods and services and is therefore liable to get itself registered. The appellant sells goods and services for consideration and its various activities come within the ambit of definition of supply - it is already held as how the appellant can be said to be engaged in the business. Therefore, the said supply of spiritual products like books, CDs and DVDs are in the nature of supply in the course of business. Specific exemption from GST is given to charitable institutions registered u/s.12AA of the IT Act, 1961. It can be gathered that the intention of the legislature is to tax all the activities of supply goods and services by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cations of books, audio CDS, DVDs, etc. and other materials for students and public in general and to set up organizations for helping people. The ancillary object also includes protecting birds and animals from being killed in slaughter houses, and other activities. D. The Appellant was registered under the erstwhile Maharashtra Value Added Tax Act, 2002 in view of the specific Explanation in the definition of dealer under Section 2(8) of the MVAT Act, 2002. E. With effect from 1.7.2017, the Goods and Service Tax was brought into force and the existing registered dealers under the erstwhile MVAT Act, 2002 were migrated to GST. In preparation for implementing GST, the Commissioner of Sales Tax, Maharashtra issued Circular No. 35T of 2016 dated 12.11.2016 mandatorily requiring the existing registered dealers under the provisions of MVAT Act, 2002 to enroll themselves for GSTIN. G. Thus, the Appellant was also migrated to the GST and Registration Certificate was issued to Appellant on 22-09-2018 in Form GST REG - 06 . H. Though the Appellant has been registered under GST, the Appellant has not filed any returns since the Appellant is not engaged in any business as defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant states that no question was raised by the appellant on exemption of various services provided by the Appellant. Thus, the findings of the Ld. ARA on services provided by the Appellant is ex-facie erroneous and not binding on the Appellant. Thus, the Advance Ruling Order needs to be set aside on this ground alone. 4. The Appellant submits that Ld. Advance Ruling Authority has failed to appreciate the settled legal positions and ratio laid down by the Hon ble Supreme Court in a number of cases on the subject matter of the questions raised by the Appellant. The said judgments of the Supreme Court, if not binding as precedents, are driving authorities to decide the questions raised by the Applicant. 5. Ld. ARA has observed that the said precedents are on different context and hence cannot be considered or relied upon in the facts of the present case. 6. The Appellant submits that, the Ld. ARA has made no attempt to distinguish the said precedents in the body of the Order even on the facts of the case. It is settled law that mere passing of order without reasoning is a non-speaking order and hence not tenable in law or binding on the Appellants. 7. The Appellant sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies carried out by the Appellant under the main object of spreading religious and spiritual teachings. 13. It is settled law that where the public charitable trust carries out activity for advancement of its rnain object of charitable purpose, the same cannot be said to be business in commercial sense as defined in the taxing statute. There is no motive to earn profit out of the said activities and profit earned if any is spent on the advancement of the general public utility and hence, there cannot be said to be any business which is carried out by the Public Charitable Trust. 14. Thus, in the present case also, the main object of the Appellant being advancement of the religious and spiritual teachings of Paramkrupalu Shimad Rajchandra, the Appellant cannot be said to be carrying out business as defined in Section 2(17) of the CGST Act, 2017. 15. The Appellant submits that, once the main object of the Appellant cannot be considered as business, the ancillary or incidental objects also cannot be considered as business. 16. The Appellants submits that, it sells various spiritual products such as Books, Audio CDs, DVDs, Statues which are for the advancement of the religio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pe of supply which is liable for GST. The relevant portion of said Section 7 is extracted below for ready reference: 7. (1) For the purposes of this Act, the expression supply includes- (a) all forms of supply of goods or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; 23. From a plain reading of the above Clause (a) of Section 7(1) it is clear that supply will be liable to GST only when it is made for a consideration in the course or furtherance of business. 24. As submitted above, since in the present case, the Appellant is not carrying out any business, there can be no supplies liable to GST at the hands of the Appellant. 25. Since the aggregate of taxable supplies of goods and services does not exceed Twenty Lakh Rupees, the Appellant is not liable for registration under Section 22 (1) of the CGST Act, 2017. 26. The Appellant submits that Section 22(1) of the CGST Act, 2017, provides for registration under the CGST Act, 2017. The said Section 22(1) is extracted below for ready reference: 22. (1) Every suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t advanced by the appellant is that they are not carrying on the business in terms of section 2(17) of the CGST Act. The said definition is reproduced above in grounds of appeal. With reference to the above definition, the appellant has contended that it is a public charitable trust with the main object of advancement of religious and spiritual teaching and is not engaged in any trade, commerce, manufacture, profession, vocation, wager or in other similar activities. Also, it is put forth by the appellant that as the main object cannot be considered as business, the ancillary or incidental object also cannot be considered as business. The incidental activity as per the appellant is that it sells various spiritual products such as books, audio CDs, DVDs, statutes, calendars etc. which are for the advancement of the religious objectives of the Trust. The books are based on the teachings of their Gurudev and the DVDs and CDs contain the religious pravachan, satsang, spiritual songs and bhajan for those who could not be personally present at the event. We have considered the submissions of the appellant. However, we agree with the decision of the advance ruling authority that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained in sub-section (1),- (a) activities or transactions specified in Schedule Ill; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods. The appellant sells goods and services for consideration and its various activities come within the ambit of definition of supply , We have already held forth as how the appellant can be said to be engaged in the business. Therefore, the said supply of spiritual products like books, CDs and DVDs are in the nature of supply in the course of business. It is seen that the Notification No. 12/2017 dt.28 June, 2017 under CGST Act exempts services provided by the en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a is exempted. Further there is entry No.15 of Notification No.12/2017 dt.28.06.2017, where no GST is applicable on activities of public library including those run by charitable or religious trust. What can be seen from the above notifications is that specific exemption from GST is given to charitable institutions registered u/s.12AA of the IT Act, 1961. It can be gathered from the above that the intention of the legislature is to tax all the activities of supply goods and services by charitable trust except those specifically exempted. This is with the background that charitable institutions qua their activities of charity do not lend themselves to any specific concession or exemption from the definition of supply or business or taxable person . The very fact that certain services have been carved out and given out a special treatment makes it clear that all trade and commerce transaction of selling books, statutes, CDs and DVDs etc. done commercially for consideration come within the broad ambit of business under the CGST Act. In the grounds of appeal, it is contended by the appellant that the ARA has not taken cognizance of the Supreme Court judgment in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X
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