TMI Blog2020 (3) TMI 242X X X X Extracts X X X X X X X X Extracts X X X X ..... for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s. Automative Components Technology India Private Limited, Plot No.3/39 B, Sri Nagar, Thodukkadu (Post), Mannur Kootu Road, Sriperumbudur District, Thiruvallur, Tamil Nadu-602105 (hereinafter referred to as the Applicant or ACTI ) is registered under GST vide GSTIN 33AANFP5828N1ZM. The Applicant has sought Advance Ruling on the following questions: 1. Whether GST will be applicable on the transfer of title in moulds from applicant to Indian buyer? 2. If yes, whether the Indian buyer would be eligible to take credit of the GST paid to the applicant fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me from Thailand) would not make the said transaction liable to GST under Section 5 of the IGST Act read with Section 7(5)(a) of Integrated Goods and Services Tax Act 2017 and thereby not required to charge IGST on the moulds sold to the Indian buyer. 2.2 As per the applicant s interpretation of law, the transaction between them and the Indian buyer for transfer of title of moulds is not liable to IGST as the same extends beyond territorial jurisdiction. In the present case, as mentioned above, the transaction results in transfer of title in the goods from the foreign supplier to ACTI and thereafter from ACTI to the Indian buyer. However the possession is retained by the foreign supplier which is permissible contractually and the Sale of Goods Act also recognizes that goods may be retained by the seller after the sale. To determine the nature /character of the supply as an intrastate or interstate supply it is important to determine Supplier and Place of supply Supplier. As the moulds are supplied by the Applicant to the Indian buyer, by way of transfer in title, the Applicant is said to be the Supplier . With regard to place of supply, section 10(1)(c) would get attracted in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action is deemed to be an inter-state supply and if the same is made liable to GST then it should be deemed that such goods have been received from perspective and the credit should accordingly be made available to him. 3.1 The applicant was extended an opportunity of personal hearing on 18.06.2019. However, they did not appear for the hearing. The applicant was extended another opportunity on 23.07.2019 for which the applicant sought adjournment by three weeks vide their letter dated 10.07.2019. The applicant was accordingly extended an opportunity of personal hearing on 28.08.2019. The authorised representative of the applicant appeared for personal hearing on 28.08.2019 and furnished a written submission. They submitted the tool utilization certificate which states that the tools are used for Nissan Motors India Private limited/Renault Nissan Automative India Pvt Limited/ Renault India Pvt Limited. They stated that they will submit details of all transactions between them and the recipient in respect of the mould tools and parts involved. They also stated that they will clarify the reason for use of tools for third party. They also stated that they will send all purchase orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mould shall be the exclusive property of NMIPL. No such taxable event had occurred in the VAT/ excise regime and thus no invoices/documents were raised by the applicant The cost of the mould has not been amortized in the present transaction. The price of the manufactured mould/tools has been received by the applicant by raising a separate invoice The mould/tool shall be disposed off in the premises of MSC Thailand as may be agreed in the future and no consideration shall be received by the applicant nor NMIPL after the lifecycle of the mould/tool as it attributes no value. The agreement is not traceable by the applicant nor NMIPL due to change in the management and the earlier staff members are not currently employed with the applicant and NMIPL. However, there are no changes in the modus of transaction as evident from the documents viz., Purchase Order, Invoice, tool ownership certificate, etc. 4. The applicant is under the administrative control of State. The said jurisdictional authority was addressed to report if there are any pending proceedings in the applicant s case on the issues raised by the applicant in the ARA application and for comments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. The Act limits the Advance Ruling Authority to decide the issues earmarked for it under Section 97(2) and no other issue can be decided by the Advance Ruling Authority. Of the above questions on which ruling is sought by the applicant, the question at (2) relates to eligibility to credit of tax paid by them at their buyers end. The eligibility to credit of input tax paid by the applicant alone is covered under clause (d) of Section 97(2) above and the eligibility at the buyers hand when raised by an applicant do not fall under any of the category specified under Section 97(2) of the Act and therefore not within the ambit of this authority. This position was explained during the personal hearing also. The First Question relating to whether GST is applicable on a transaction is within the ambit of this authority and is taken up for consideration. 6.1 In the case at hand, the applicant is undert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Ltd. The applicant has not furnished the agreement between the parties stating that the same is not traceable and has further stated that the modus of transaction is evidenced from the Purchase Order, Invoice, Tool Ownership Certificate, etc described above. From the documents and averments of the applicant, the transaction involved requiring the clarification by the applicant is that the title in the moulds got manufactured by the applicant are transferred to the applicant and thereupon to the applicants vendor by way of declaration and against invoice indicating the consideration for the moulds. The moulds/tools remains with the manufacturer for manufacturing the parts, i.e., the moulds are supplied free of cost to the parts manufacturer and it is stated that the cost of the moulds are not amortised in the parts cost. 6.3 Having seen the factual position, the relevant statutory provisions are examined as under. Supply is defined under Section 7 of the CGST Act 2017 and the same is reproduced below for 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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