TMI Blog2020 (6) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... ortation of the currency for the purpose of cash replenishment in ATMs operated by the Appellant s clients are being regulated by RBI in the capacity of the Regulatory Authority, the guidelines of which have to be mandatorily complied with by the Appellant for carrying out their activities. Therefore, the compliance of the guidelines issued by the RBI will not detract the subject money from being goods. Further, non- applicability of the RBI guidelines on the goods other than money is quite obvious, as the RBI is the regulatory authority only in the matter related to the money and not for all the goods. Hence, such arguments, put forth by the Respondent is erroneous and absurd, and do not merit to be considered. Input tax credit - HELD THAT:- Now, when it has been established that money, transported by the Appellant in the cash -carry vans, can be considered as goods, ITC in respect of the cash carry vans used for the transportation of cash will be available to the Appellant in accordance with provisions of section 17 (5) (a)(ii) of the CGST Act, 2017. - MAH/AAAR/SS-RJ/04A/2018-19 - - - Dated:- 31-10-2019 - SMT. SUNGITA SHARMA, AND SHRI RAJIV JALOTA, MEMBER PROCEEDINGS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after considering various submissions made by the Appellant. In view of the aforesaid Hon ble Bombay High Court Order, we set out to decide the subject-question asked by the Appellant vide the advance ruling application, filed by them before the Advance Ruling Authority, and which was eventually referred to us in terms of section 98(5) of the CGST Act, 2017. At the outset, we will reproduce the relevant facts of the case below. BRIEF FACTS OF THE CASE 1. The Appellant is having cash management network pan India. During the course of providing the cash management services, the appellant is engaged in the following activities: Providing ATMs and installing the same at various locations across India. Managing cash circulation through transporting cash from currency chest to bank branches. Cash pick-up and delivery from and to dedicated banks. 2. Such transportation of cash is done through the security vans popularly known as cash carry vans . The appellant purchases raw motor vehicles and requisite fabrication, get them converted to cash carry vans. The appellant also pays GST on fabrication. For this purpose, the appellant purchases motor vehic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash carry van, as scrap after its usage, held a taxable supply, whether Input Tax Credit is available to CMS Info Systems Limited on purchase of such motor vehicles i.e. cash carry vans which are used for cash management business and supplied, post usage, as scrap, there was difference in opinion on this particular issue between two members of the Advance Ruling Authority. Therefore, the matter was referred to the Appellate Authority for Advance Ruling for giving the appropriate ruling in this regard. GROUNDS OF APPEAL 7. The Appellant submitted that they were lawfully eligible and entitled for input tax credit of the GST paid on standard motor vehicle and also GST paid on the fabrication of the vehicles to suit the need for cash carrying vehicle. 8. According to Section 17(5)(a) of CGST Act, 2017, input tax credit on motor vehicles and other conveyance is not available; however, the exception has been carved out inter-alia to the motor vehicles and other conveyances used for transportation of goods. In other words, if the motor vehicles and conveyance is used for transportation of goods, input tax credit on motor vehicles is available. The relevant portion of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as consideration to settle the obligation or exchange with Indian legal tender of another denomination would be considered as money . 12. In the instant case, the currency transported by the appellant is for the purpose of carrying out the business of maintaining ATMs by the Appellant and hence, the Appellant are not using the same as a consideration for settling of any obligation. The job assigned to the appellant is for the transportation of currency to the desired destination as per their customer banks and while carrying out the activity of transportation, the said currency is plain goods for the Appellants and cannot be used/ is not used in exchange of other Indian legal tender of another denomination. 13. In other words, although in general understanding, what is being transported by the appellants is currency or cash or money, from the Appellant s point of view or for the appellant, what is transported is goods and not money as the said goods being transported would not serve the same purpose of money as in the normal circumstances the money in hands of a person would serve i.e. for the payment of purchases/settlement of dues/discharge of debts etc.; 14. It i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and anything (other than equipment ordinarily used with the vehicle) carried by a vehicle except living persons, but does not include luggage or personal effects carried in a motor car or in a trailer attached to a motor car or the personal luggage of passengers travelling in the vehicle; (14) goods carriage means any motor vehicle constructed or adapted for use solely for the carriage of goods, or any motor vehicle not so constructed or adapted when used for the carriage of goods; (47) transport vehicle means a public service vehicle, a goods carriage, an educational institutions bus or a private service vehicle; 20. Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017 at Sr. No. 117 provides full exemption for Rupee notes when sold to Reserve Bank of India falling under chapter/heading 48/4907 would also substantiate the Appellants claim that currency is covered under goods . 21. The certificate of registration and also certificate of fitness issued by the Motor Vehicle Department of Govt. of Maharashtra certifying cash carrying vans to be a goods carrier and goods vehicle also support the Appellant stand. 22. From the certificate of registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the goods as claimed by the appellant, as it is a special purpose vehicle which is deployed to collect the currency under the security guards with arms and with 2 supervisors as per the Guidelines of Reserve Bank of India letter dated 06 th April, 2018. 29. The appellant transports and manages the money which is different from goods even in the eyes of the banking industry and RBI. It is because of this reason that the RBI has prescribed special safeguards specifically for the money . The fact that these safeguards are prescribed by the RBI are not applicable to goods clearly establishes that RBI considers the money as different from goods. Similarly, in the eyes of the banking industry also the money is not goods. Therefore, in the context of the situation in which the appellant is working, money cannot be considered as goods . Accordingly, only because the definition of goods under the CGST Act, 2017, contains the phrase unless the context otherwise requires does not mean that, the context of the appellant requires a definition of goods is different from one as prescribed in the CGST Act,2017. 30. The appellant contention that provision of Motor Vehicle Act a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered as goods as envisaged under section 2(52) of the CGST Act, 2017, accordingly, the ITC of the GST paid on the purchase and fabrication of the said carriage vehicles would not be available to the Appellant. However, pursuance to the Hon ble Bombay High Court Order dated 09.07.2019 = 2019 (7) TMI 615 - BOMBAY HIGH COURT vide which we were directed to reconsider the case under the light of all the submissions made by the Appellant. The Hon ble High Court vide the aforesaid order has observed the following flaws in the impugned AAAR Order dated 06.08.2018 = 2018 (8) TMI 977 - APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA : (i) It was observed by the Hon ble High Court that the impugned AAAR Order has not dealt with the Appellant s principal submissions, wherein it was contended that the money transported by the Appellant with the aid of cash carry vans would stand covered by the definition of goods , provided under section 2(52) of the GST Act so long as the same is not used as a legal tender as have been stipulated under the definition of the money provided under section 2(75) of the GST Act. (ii) It was also observed by the Hon ble High Court that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wise requires, - . By placing reliance on the said clause of the definition section, they emphasized that the meaning assigned to `money provided under section 2(75) of the CGST Act, 2017 needs to be understood in the context of the services provided by them. They have also referred to the Rule 138(14) of the CGST Rules, 2017, which provides the list of the goods, which do not require the e-way bills for their movement or transportation by the motor vehicles from one place to the another. In the aforesaid rules, currency has been specified as one of those goods, which do not require e-way bill for their transportation from one place to another. 38. On careful consideration of the aforesaid submissions and facts of the case, placed before us, we are inclined to concur with the Appellant s contention as to what is being transported by them in the cash-carry vans is not the money but the goods for them, as they cannot use such money for any purpose, whatsoever. This fact is also emanating from the Clause 2.7 of the agreement entered between the Appellant (referred in the Agreement as COMPANY ) and its client Canbank Computer Services Ltd. (CCSL), which is being reproduced herein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, this proposition is also supported by the rule 138 (14) and its Annexures prescribed under CGST Rules, 2017, relied upon by the Appellant to establish that the money has been included in the Annexure along side the other goods specified therein, which will not require any E-way Bill for their movement or transportation by motorised conveyances by from one place to the another. It is to be mentioned that Rule 138 (14) of the CGST Rules, 2017 specifies those goods, which do not require E-way Bills for their transportation. On perusal of the said rules, it is clearly evident that only goods are mentioned therein as well as in the annexure thereto. Among those goods, one of the items mentioned in the annexure bearing the heading Description of Goods is money , which clearly indicates that the legislature has considered money as goods , when money is being transported from one place to another. By applying the above interpretation in the present fact and circumstances of the case in hand, it can decisively be inferred that money under question is nothing but goods. 42. Further, the Revenue s contention, wherein they argued that since the Appellant is using special purpose ve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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