TMI Blog2020 (7) TMI 481X X X X Extracts X X X X X X X X Extracts X X X X ..... services only is intended to be expressly made to a customer - the input credit availed as per the conditions specified in section 16 shall be allowed for discharging the liability towards supply of coal and supply of coal handling and distribution charges respectively. - Case No. 01/2020, Order No. 11/2020 - - - Dated:- 8-6-2020 - SH. VIRENDRA KUMAR JAIN AND SH. MANOJ KUMAR CHOUBEY, MEMBER Present on behalf of applicant : Adv Dr. Arvind Singh Chawla, CA Pramod Shivastava (Group CFO) PROCEEDINGS 1. BRIEF FACTS OF THE CASE: 1.1. M/s Agarwal Coal Corporation Private Limited ( Applicant for brevity) is engaged in business of trading of coal in India and for the same Applicant undertakes purchase of coal from domestic markets as well as imports from overseas. 1.2. On purchase of coal, the Applicant has submitted that GST is paid @ 5% (on intra-state and inter-state supply as the case may be) and on import of coal from overseas market, IGST is paid @ 5%. 1.3. After coal is imported, the coal is stockpiled at port itself at the designated place for subsequent sale to customers. Various services are availed by Applicant at the port during process of procurem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a. Price of supply of coal b. Coal handling and distribution charges 1.11. The Applicant intends to raise invoice on customer(s) for the following: a. Supply of coal with 5% GST in addition b. Coal handling and distribution services with 18% GST in addition 1.12. The Applicant is presently availing input tax credit and will continue to avail the same as follows: a. 5% IGST on import of coal b. 18% on various services availed at port 1.13. The input tax credit so availed is to be utilized for discharging liability of tax on sale of coal and coal and handling charges at the respective rates. 2. QUESTIONS RAISED BEFORE THE AUTHORITY 2.1 Whether the Applicant is liable to discharge tax liability @ 18% on coal handling and distribution charges wherever supply of such services is intended to be made expressly to a customer or will the Applicant be entitled to charge GST at the rate of 5% as applicable on supply of coal? 2.2 Will the applicant be entitled to utilize the input tax credit availed for discharging liability towards supply of coal and supply of coal handling and distribution charges? 03. DEPARTMENT'S VIEW POINT The Jo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch as sale, transfer, barter, exchange, licence, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; (b) import of services for a consideration whether or not in the course or furtherance of business and; (c) the activities specified in Schedule I, made or agreed to be made without a consideration; 4.4. In order to examine the issue regarding rate of tax to be charged on supply, it is necessary to examine; Notification no. 1/2017-Central Tax (Rate) dated 28-Jun-2017 which provides for CGST tax rate of 2.5% on supply of coal with similar rate in SGST, hereby effective rate being 5% (2.5%+2.5%) SI.No. Chapter / Heading / Sub-heading / Tariff item Description of Goods (1) (2) (3) 158 2701 Coal; briquettes, ovoids and similar solid fuels manufactured from coal Notification No. 11/2017-Central Tax (Rate) dated 28-Jun-2018 provides for CGST rate of tax on intra-supply CGST rate with similar rate in SG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods of services or both to him unless,- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation .-For the purposes of this clause, it shall be deemed that the registered person has received the goods or, as the case may be, services- (i) where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documents of title to goods or otherwise; (ii) where the services are provided by the supplier to any person on the direction of and on account of such registered per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplier under sub-section (1) of section 37 till the due date for furnishing the details under sub-section (1) of said section for the month of March, 2019. 4.7. U/s 49(4) of the Act, the amount available in the electronic credit ledger may be used for making any payment towards output tax under this Act or under the Integrated Goods and Services Tax Act in such manner and subject to such conditions and within such time as may be prescribed. Sec 49 of CGST Act, 2017 provides for payment of tax, interest, penalty and other amounts as under: (1) Every deposit made towards tax, interest, penalty, fee or any other amount by a person by internet banking or by using credit or debit cards or National Electronic Fund Transfer or Real Time Gross Settlement or by such other mode and subject to such conditions and restrictions as may be prescribed, shall be credited to the electronic cash ledger of such person to be maintained in such manner as may be prescribed. (2) The input tax credit as self-assessed in the return of a registered person shall be credited to his electronic credit ledger, in accordance with section 41 or section 43A, to be maintained in such manner as m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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