TMI Blog2020 (3) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... ime) which attracts GST @ 18% - thus, service in question shall fall under residual Entry 17(viii) of the said notification which attract GST @ 18% as on date. The Haryana Advance Ruling Authority in M/s. Pioneer Partners [2018 (9) TMI 1477 - AUTHORITY FOR ADVANCE RULING, HARYANA] has categorically held that the service in question does not fall at Serial No. 17(i) to (v) of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 (amended from time to time) but fall at residual Entry No. 17(viii) of the said notification. The Haryana Advance Ruling Authority has passed the Ruling on the issue in hand on 29-6-2018 and the relevant provisions of Serial No. 17 of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 (amended from time to time) - However, the advance ruling dated 29-62018 passed by the Haryana Advance Ruling Authority in the case of M/s. Pioneer Partners was according to the provisions relevant during the period in terms of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, however with the amendment in the said notification on 31-12-2018, the said advance ruling has no relevance as on date to the issue in hand. - Ruling No. 04/2019-20, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Accordingly opportunity of personal hearing was granted to the applicant on 14-5-2019. Shri K.S. Rana (Advocate), on behalf of the applicant appeared for personal hearing on the said date and reiterated the submissions already filed with the application. He also stated that ruling of Haryana Chhattisgarh to be taken on record. He further stated that it should be taxed @ 5% instead of 18% charged by GMVN. Ms. Preeti Manral, Deputy Commissioner, SGST-Dehradun, concerned officer appointed by the State Authority, was also present during the hearing proceedings. 6 . From the record submitted by the applicant we find that applicant is registered in Uttarakhand with GSTIN Bearing No. 05AGJPS2381PIZR. Before proceeding in the present case, we would first go through the submissions filed by the applicant and the same is summarized as under : (i) services for the right to use minerals including its exploration and evaluation as per Serial No. 257 of annexure appended to Notification No. 11/2017-Central Tax (Rate) included in group 99733 under Heading 9973, hence it attracts the same rate of tax as on supply of like goods involving transfer of title in goods as per Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government of Uttarakhand had allotted specified areas to GMVN to extract accessory minerals (sand, gravel, boulders) from the same and are to pay prescribed fees to the Government of Uttarakhand for the said allotted work. GMVN further allots the said work in particular specified area to the applicant and for that GMVN charging and collecting consideration in the form of money from the applicant and: GMVN is paying prescribed fees as royalty to the Uttarakhand Government from the said consideration. (A.3) In this context relevant legal provisions are extracted below : Annexure appended to Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017 : S. No. Chapter, Section, Heading or Group Service Code (Tariff) Service Description 1 2 3 4 232 Heading 9973 Leasing or rental services with or without operator 233 Group 99731 Leasing or rental services concerning machinery and equipment with or with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he corresponding entry in column (4), subject to the conditions as specified in the corresponding entry in column (5) of the said Table - S. No. Chapter, Section or Heading Description of Service Rate (per cent.) Condition 1 2 3 4 5 17 Heading 9973 (Leasing or rental services, with or without operator) (i) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of goods other than Information Technology software. 6 - (ii) Temporary or permanent transfer or permitting the use or enjoyment of Intellectual Property (IP) right in respect of Information Technology software. 9 - (iii) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. Same rate of cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (via) above 9 - (C.2) On perusal of aforesaid table, we find that description of service i.e. Licensing services for the right to use minerals including its exploration and evaluation undertaken by the GMVN does not cover under Serial No. 17(i) to 17 (via) of the said notification, therefore the service in question falls at residual Entry (viii) of Serial No. 17 of said Notification which attract GST @ 18% [9% CGST + 9% SGST] as on date. Accordingly we observe that the rate of GST shall be 18% on said services provided by GMVN to the applicant for which royalty is being paid. 9. The applicant has also furnished Advance Ruling passed by Haryana Chhattisgarh Authorities in support of their contention. In this context we perused the said Rulings and find that one of the issues involved in the said cases pertains to the issue in hand i.e. rate of GST applicable on. the said service namely Licensing services for the right to use minerals including its exploration and evaluation . We also find that Chhattisgarh Advance Ruling Authority has passed the order dated 22-2-2019 [2019 (24) G.S.T.L. 465 (A.A.R. - GST)] on the issue in han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lectual Property (IP) right in respect of Information Technology software. 9 - (iii) Transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration. Same rate of central tax as on supply of like goods involving transfer of title in goods (iv) Any transfer of right in goods or of undivided share in goods without the transfer of title thereof. Same rate of central tax as on supply of like goods involving transfer of title in goods (v) Leasing of aircrafts by an operator for operating scheduled air transport service or scheduled air cargo service by way of transaction covered by clause (f) paragraph 5 of Schedule II of the Central Goods and Services Act, 2017. Explanation.- (a) operator means a person, organization or enterprise engaged in or offering to engage in aircraft operations; (b) scheduled air transport service means an air transport service undertaken between the same two or more pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e find that the advance ruling dated 29-62018 passed by the Haryana Advance Ruling Authority in the case of M/s. Pioneer Partners was according to the provisions relevant during the period in terms of Notification No. 11/2017-Central Tax (Rate), dated 28-6-2017, however with the amendment in the said notification on 31-12-2018, the said advance ruling has no relevance as on date to the issue in hand. But it is settled position that the service in question does not fall at Serial No. 17(i) to 17(v) of the said notification. We further observe that the service in question is also not covered at Serial No. 17(vi) to 17(viia) of the said notification. In this context, our view gets further strengthened on pursuing the order dated 25-3-2019 passed by Rajasthan Advance Ruling Authority on the same issue in the case of M/s. Wolkem Industries Ltd [2019 (24) G.S.T.L. 484 (A.A.R. - GST)I. wherein it was held that service in question falls at (viii) of Serial No. 17 of Notification No. 11/2017 (as amended from time to time) which attracts GST @ 18% (9% CGST+ 9% SGST). Thus we observe that service in question shall fall under residual Entry 17(viii) of the said notification which attract GST @ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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