TMI Blog2020 (2) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... essential for research purposes and will be used for stated purpose only and that, the said goods shall not be or sold by the institution for a period of five years from the date of installation - The said notification requires the said certificate to be issued to the supplier, who in the subject case, is the distributor and not the applicant. Thus it is clear that the applicant does not satisfy the conditions of the said Notification No. 45/2017 - thus, the applicant cannot sell their product to their dealers / distributors by charging GST @ 5.00% as per Notification Nos. 45/2017 - C.T. (Rate) 47/2017 S.T. (Rate), both dated 14.11.2017. Can a certificate issued by the end user (scientific research organization) mentioning the name or the manufacturer (WE in this case) the name of the seller (our distributor) be held valid to enable the applicant to invoice their product to their dealer at concessional rate of GST @ 5.%? - HELD THAT:- In the instant case, the question raised by the applicant is not pertaining to any of the matters mentioned in Section 97 (2) of the GST Act - Section 97(2), which encompasses the questions, for the ruling by this Authority does not deal with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic research. 2.2 Applicant is selling all their products through distributors network and issue invoices to distributors at the normal rate of GST @ 18.00% because, the distributors or channel partners are not engaged in scientific research of any type, in any manner. The distributors are only engaged in trading of the subject goods and in some cases they sell the same to certain notified institutions engaged in the scientific research, at a concessional rate of GST at 5.00%. Applicant has submitted that they should be permitted to sell their products to distributors at the concessional rate of 5.00% because the end use of the product sold, is exclusively for scientific research and for this, a certificate can be obtained from the end user institution to this effect. Hence applicant is seeking clarification as to whether they can sell their products to dealer / distributor by charging GST@ 5.00% as per Notification Nos. 45/2017 47/2017, where the end user (a scientific research organization) issues a certificate clearly mentioning the distributors name as well as Manufactured by and applicant s name. The applicant is of the opinion that they can invoice the goods to their d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dmission of their application. Jurisdictional Officer, Sh. Shashikant Bhasgauri, Supdt., Mumbai Central Commissionerate of CGST Central Excise, also appeared. The application was admitted and called for final hearing on 17.12.2019. Sh. Madhav Deodhar, Manager (Finance Accounts) Authorized Representative appeared, made oral and written submissions. Jurisdictional Officer Sh. Shashikant Bhasgauri, Supdt., also appeared and made submissions. 05. OBSERVATIONS AND FINDINGS: 5.1 We have gone through the facts of the case, documents on record and submissions made by both, the applicant as well as the jurisdictional office. 5.2 The issue before us is whether the applicant, who is a manufacturer of laboratory medical equipment like Autoclaves, Incubators, Rotary Vacuum Evaporators, etc., and supplies the same to their distributors who are not engaged in scientific research of any type, are eligible for concessional rate of GST under Notification No. 45/2017 - C.T. (Rate) dated 14.11.2017 and Notification No. 47/2017 S.T. (Rate) dated 14.11.2017. 5.3 The provisions of Notification No. 45/2017-C.T. (Rate) dated, 14.11.2017 and Notification No. 47/2017-I.T. (Rate) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartment to the supplier at the lime of supply of the specified goods; or (b) an institution registered with the Government of India in the Department of Scientific and Research and such institution produces a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union territory in concerned department to the supplier at the time of supply of the specified goods; (ii) The institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution, in each case, certifying that the said goods are required for research purposes only; (iii) In the case of supply of live animals for experimental purposes, the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution that the live animals are required for research purposes and enclose a no objection certificate issued by the Committee for the Purpose of Control and Supervision of Experiments on Animals 2. Research institution, other than a hospital ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and enclose a no objection certificate issued by the Committee for the Purpose of Control and Supervision of Experiments on Animals. 4. Regional Cancer Centre (Cancer Institute) (a) Scientific and technical instruments, apparatus, equipment (including computers); (b) accessories, parts, consumables and live animals (experimental purpose); (c) Computer software, Compact Disc-Read Only Memory(CD-ROM), recorded magnetic tapes, microfilms, microfiches. (i) The goods are supplied to the Regional Cancer Centre registered with the Government of India, in the Department of Scientific and Research and such institution produces a certificate from an officer not below the rank of the Deputy Secretary to the Government of India or the Deputy Secretary to the State Government or the Deputy Secretary in the Union territory in concerned department to the supplier at the time of supply of the specified goods; (ii) the institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution, in each case, certifying that the said goods are required for research p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r are engaged in the scientific research. The goods are supplied to their distributors only. The applicant has submitted that the end-user institutions, to whom goods are supplied by their distributors, are mainly included in Sr. No. 2 of Notification No. 45/2017-C.T. (Rate) dated 14.11.2017. In respect of institutions mentioned at Sr. No. 2, the said notification clearly states that the said institutions should be registered with the Government of India in the Department of Scientific and Research, which- (i) produces, at the time of supply, a certificate to the supplier, from the head of the institution, in each case, certifying that the said goods are essential for research purposes and will be used for stated purpose only and that, the said goods shall not be or sold by the institution for a period of five years from the date of installation. 5.7 The said notification requires the said certificate to be issued to the supplier, who in the subject case, is the distributor and not the applicant. Thus it is clear that the applicant does not satisfy the conditions of the said Notification No. 45/2017, mentioned above. 5.8 In view of the above, we hold that the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
