TMI Blog2019 (7) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... he consideration received by the applicant will be towards the manufacturing of the bus body on the chassis supplied by the Principal. GST Law does not distinguish between raw material, finished goods and semi-finished goods. It talks about input and Capital goods. Even Semi-finished goods or intermediate are goods and in turn Input by the Principal or by the worker - So the argument of the applicant that the nature of the work stated in the application should be falls under job work is tenable under the provision of the Law. Whether the activity of building, fabricating and mounting of the bus body by the applicant on the chassis provided by the Principle will result in supply of goods under HSN 8707 or supply of services under HSN 9988 taxable @ 18% irrespective of end use by the principle who shall effect the sale of Bus? - HELD THAT:- The activity and question raised before us has been suitably clarified and dealt with Circular no. 52/26/2018-GST issued by Government of India, Ministry of Finance, Department of Revenue dated 9 th August,2018 wherein it is clarified that the supply made is that of bus, and accordingly supply would attract GST @28%. In the case as ment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carrying out the body building on the chassis on delivery challan. The Applicant shall procure various goods such as metal sheets, plywood, seats, glasses, alluminium sections etc. as inputs for fabricating the bus body besides fabrication services. Once the Bus body is built and mounted on the chassis by the Applicant, the vehicle will be sent back to the OEMs/customers after raising tax invoice towards body building charges on which GST will be charged separately. 3.3 The applicant will claim the credit of GST paid on the material used as input against output liability of GST on body building activity carried out by it. The consideration received by the applicant will be towards the manufacturing of the bus body on the chassis supplied by the Principal. 3.4 In view of the above activity done by the applicant, the applicant has approached the Authority seeking ruling on the question given below: 4. QUESTIONS RAISED BEFORE THE AUTHORITHY:- The following questions have been posted before the Authority:- In the Application the question raised by the Applicant as whether the activity of building and mounting of the body by the applicant o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion work. 6.4 It was further submitted that the ownership of the chasis will not be transferred at any stage by the owner of the chassis and body built thereon will be in the nature of job work covered by entry no. 26(ii) of SAC 99881 taxable @18% on the invoice raised by the job worker using own inputs in the fabrication process on the chassis received from the principal. 6.5 The Applicant reproduced the relevant provision of the Act in support of his submission which are as follow:- i) As per section 2(68) of the CGST and SGST Act, the term 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) Para 3 of the Schedule II of the CGST Act, specifies certain activities to be treated as supply of goods or supply of services - Any treatment or process which is applied to another person s goods is a supply of service. iii) Explanation to section 143 of the CGST/SGST Act, 2017 also provides that For the purpose of job work, input includes intermediate goods arising from any treatment or process carried out o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In support of the argument the applicant stated that aforesaid circular was followed by the GOA Authority of Advance Ruling in the case of M/s. Automobile Corporation of Goa Limited vide its order no. GOA/GAAR/1 dated 21.08.2018 = 2018 (10) TMI 1044 - AUTHORITY FOR ADVANCE RULING, GOA wherein it was Ruled as under :- The Activity of building and mounting of the body on the chassis provided by the principal under FOC challan will result in supply of services under HSN 9988 and hence, should be taxed @18 in GST. Thus in view of aforesaid clarification issued by CBIC vide circular no. 52/26/2018- GST dated 09.08.2018, the advance ruling is sought by the applicant regarding taxability of Body Building activity to be carried on by the applicant. 7. DISCUSSIONS AND FINDINGS: 7.1 We have carefully considered the submissions made by the applicant in the application and during time of personal hearing. 7.2 First of all we have to look upon the nature of work to be done by the applicant as per the submission the applicant intends to execute a contract of fabrication of bus body to be mounted on the chassis of the contractee. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... COURT , addition or application of items by job worker would not detract from the nature and character of his work. 7.7 GST Law does not distinguish between raw material, finished goods and semi-finished goods. It talks about input and Capital goods. Even Semi-finished goods or intermediate are goods and in turn Input by the Principal or by the worker. 7.8 So the argument of the applicant that the nature of the work stated in the application should be falls under job work is tenable under the provision of the Law. 7.9 Now we come to the question raised by the Applicant as whether the activity of building, fabricating and mounting of the bus body by the applicant on the chassis provided by the Principle will result in supply of goods under HSN 8707 or supply of services under HSN 9988 taxable @ 18% irrespective of end use by the principle who shall effect the sale of Bus. 7.10 We Find that the activity and question raised before us has been suitably clarified and dealt with Circular no. 52/26/2018-GST issued by Government of India, Ministry of Finance, Department of Revenue dated 9 th August,2018. 7.11 The following Paras of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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