TMI Blog2021 (1) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... by the customer (army/police) are supplied to the applicant and these vehicles have either metal (partial or full) or partially metal and partially Tarpaulin covered cargo compartments. The applicant for the purpose of bullet proofing of these vehicles, first of all removes the existing metal/ tarpaulin cover on the rear cargo compartment making the cargo compartment completely naked so to say except the flooring part. At this stage the vehicle resembles a chassis virtually and for all practical purposes so that the body can be built on the cargo portion as per the specific requirement of the customer with bullet proof steel, glass, and other fixtures to stack the weapons, seating for the personnel to be carried, providing firing ports, turrets etc. On the driver cabin, bullet proof windshield with bullet proof steel frame is fixed, driver cabin doors are fixed with bullet proof glass and bullet proof steel sheets on existing front body. In addition, bullet proofing of the engine compartment and fuel tank are also to be done. In view of Circular bearing No. 52/26/2018-GST, dated 09.08.2018, it is concluded and clear that the activity of job work consisting of fabrication incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lass, bullet proof Vehicles, Lectern etc in their factory. Besides, applicant is also undertaking armouring by body building on the chassis of vehicles supplied by the customers mainly the army/police etc. using bullet proof steel and glass. Vehicles of 2.5Ton or higher capacity owned by the customer (army/police) are supplied to the applicant and these vehicles have either metal (partial or full) or partially metal and partially Tarpaulin covered cargo compartments. Photograph of the vehicles supplied by the customer have been submitted; 2. that for the purpose of bullet proofing of these vehicles, applicant first of all removes the existing metal/ tarpaulin cover on the rear cargo compartment making the cargo compartment completely naked so to say except the flooring part. At this stage the vehicle resembles a chassis virtually and for all practical purposes so that the body can be built on the cargo portion as per the specific requirement of the customer with bullet proof steel, glass, and other fixtures to stack the weapons, seating for the personnel to be carried, providing firing ports, turrets etc. On the driver cabin, bullet proof windshield with bullet proof steel frame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g as that is the proper way out provided by the Act; 8. that the vehicles are owned and supplied free of cost to the applicant for the purpose of body building with bullet proof steel sheets / glass in addition to providing bullet proof wind shied glass in the driver cabin, bullet proof steel cover for the engine and fuel tank. The photograph of the bullet proof body built vehicle clearly shows that a substantial part of the work is nothing but body building on the chassis of the vehicles. By pulling down the tarpaulin and partial metal portion of the cargo compartment, the motor vehicle supplied is first stripped to the level of the chassis. The service heading No. 9988 covers manufacturing services on physical inputs (goods) owned by others) as services by way of job work in relation to body building on chassis of any vehicle falling under chapter 87 of the First Schedule to the Customs Tariff Act, 1975; 9. that the principal/essential supply is thus body building on the chassis supplied by the customer even if the whole work is treated as a composite supply as substantial work in terms of the value and quantity of the bullet proof steel and glass used is on the body built ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ESH c) In re Rohan Coach Builders 2019 26 GSTL 525 (AAR GST M.P.) = 2019 (7) TMI 41 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH d) Automobile Corpn. Of Goa Ltd. 2018 18 GSTL 359 (AAR GST), Goa = 2018 (10) TMI 1044 - AUTHORITY FOR ADVANCE RULING, GOA e) In re Kondoly Auto craft India Pvt. Ltd. 2019 26 GSTL 525 AAR GST (MP) = 2019 (4) TMI 110 - AUTHORITY FOR ADVANCE RULINGS, KERALA Thus, the advance ruling above cited fully support the stand of the applicant that the activity of building body with bullet proof steel, glass etc. amounts to supply of service under the head job work under service head 9988 and therefore the prayer of the applicant is that the AAR be pleased to confirm in its Ruling that the activity of body building with bullet proof steel glass and other fitments on chassis of vehicles supplied by the customer (who are the owners of the chassis) would merit classification under service head SAC 9988 (ic) and accordingly would attract tax of 18 (9%+9%). In respect of supplies already made charging 28% GST (14% +14%) under goods classification 8707, only the customer is entitled to file a refund application as the tax has been borne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of cost to the applicant for the purpose of body building with bullet proof steel sheets/ glass in addition to providing bullet proof with shield glass in driver cabin, bullet proof steel cover for engine and fuel tank. After acceptance of tender, supply order has been issued to the applicant by the Army Hqrs. and applicant started executing the work as per the supply order/ specification given to them by charging 28% (CGST+SGST or IGST) by classifying the work under the 'goods' namely under the goods tariff heading no. 87079000. This tariff heading 8707 reads as follows: 8707 : Bodies including cabins for motor vehicles of heading 8701 to 8705 87071000 : For vehicles of heading 8703 87079000 : For others Statutory provisions in this regard are: (i) Section 2(68) of CGST Act, 2017, the term job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression 'job worker shall be constituted accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be transferred by principal to the applicant, amounts to supply of service under the head job work service under chapter 9988 (ic) vide Notification 20/2019-Central Tax (Rate) dated 30.09.2019 vide which the principal notification 11/2017- Central Tax (Rate) dated 28.06.2017 was amended which is as under (ic) Service by way of job work in relation to bus body building is 9% CGST POINT:- 2 It is submitted that as per Section 97 of CGST/ SGST Act, 2017, Advance Ruling can be obtained regarding taxability, classification, rate of tax, exemption notification, determination of time and value of supply, ITC and Registration etc. under GST for supply of goods and Service. Since the issue related to refund is not covered under the provisions/ ambit of AAR, no comment is being offered for the point. E. FINDINGS, ANALYSIS CONCLUSION: 1. We have considered the submissions in their application and during the personal hearing made by the applicant, we observe that, the applicant is engaged in the manufacture of Bullet proof glass, bullet proof Vehicles, Lectern etc. in their factory. Besides, applicant is also undertaking armouring by body building on the chassis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce was that the activity of body building on the chassis owned and supplied by the Northern Command 56 APO would be classifiable as supply of service under service category 9988. 6. As a consequence, the customer has written to the applicant that the applicant has wrongly charged GST at 28% whereas GST @ of only 18% should have been charged and thus are seeking from the applicant refund of excess GST charged from them as pointed out by their audit department. Since the order is to be completed in phases, the applicant, though charged 28% (for 79 vehicles completed till date), the customer released the payment @ 18% (for 25 vehicles from the supplied 79 vehicles), and remaining 54 vehicles were paid @ 28%. 7. We find that, the Job Work as defined under Section 2(68) has been considered a Supply of Service. That, the Schedule-II of CGST Act, 2017 and Explanation to Section 143 of the Act ibid also supports the same. The relevant portion of the said sections and schedule is as under- Section 2 (68), the term job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression 'job worker' shall be const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on as service, and 18% GST as applicable will be charged accordingly. In view of the Para 7 and above excerpts of Circular, it is concluded and clear that the activity of job work consisting of fabrication including of bullet proof work done on chassis provided by the Principal (ownership of which always remains with Principal) is a supply of Service attracting GST @ 18%. 9. Further it is observed that as per Section 97 (2) of CGST Act, 2017, Advance Ruling can be obtained only regarding taxability, classification, rate of tax, exemption notification, determination of time and value of supply, ITC and Registration etc. under GST for supply of goods and Services. Since, the applicant has sought ruling on issue of refund of tax which is outside the purview/scope of this Authority as defined under Section 97(2) of the act ibid. F. In view of the foregoing, we rule as follows: - RULING 1. The activity carried out by the applicant by making bullet proof body building (in addition to fixing bullet proof windshield glass, bullet proofing of engine and fuel tank) on the motor vehicles (2.5 Ton capacity) of Chapter heading 87 of the Customs Tariff Act, 1975, supplied ..... X X X X Extracts X X X X X X X X Extracts X X X X
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