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TMI Blog2021 (1) TMI 1097X X X X Extracts X X X X X X X X Extracts X X X X ..... * The issue raised by M/s Jeet & Jeet Glass and Chem. P. Ltd., F-75 A, Road No.1 C (5), VKI Area, Jaipur-(hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) given as under: - a. Classification of goods and /or services or both * Further, the applicant being a registered person (GSTIN is 08AAACJ4816C1ZX as per the declaration given by him in Form ARA-01) the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the applicant is admitted to pronounce advance ruling. A. SUBMISSION AND INTERPRETATION OF THE APPLICANT: 1. 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 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 car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vice category 9988; 6. that 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. that when the applicant approached their Range /divisional office on the matter, applicant was advised to seek a ruling from the Authority for Advance Ruling 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng certain material that was consumed during the process of job work)." The first situation being the supply of goods attracts GST 28% and the second situation being the supply of service attracts GST g 18%. But, pending the decision by the AAR, applicant continues to discharge @28% tax under the "Goods" classification under chapter heading 87; 12. that the following rulings are relied upon in this regard:- a) In re Tata Marcopolo Motors Ltd 2019 27 GSTL AAR GST 283 (Karnataka) = 2019 (7) TMI 618 - AUTHORITY FOR ADVANCE RULING, KARNATAKA b) In re Sanghi Bus (Indore) put. Ltd. 2019 27 GSTL 136 GST AAR M.P. = 2019 (7) TMI 45 - AUTHORITY FOR ADVANCE RULING, MADHYA PRADESH 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 pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he jurisdictional officer i.e. the Deputy Commissioner, CGST Division A, CP 21,22,23 Road No. 1D, VKI Industrial Area, Jaipur, Rajasthan has submitted his comments vide letter dated 26.05.2020 which are reproduced as under-: Point :- 1 On examination of the application and relevant documents, it is observed that the applicant is engaged in manufacturing of Bullet proof glass, 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 Army and Police. 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above provisions of law and clarification by the CBIC, the activity of building body with bullet proof steel, glass etc. on the chassis supplied by the OEMs(principal) on delivery challan or any other owner of the chassis on which bullet proofing will be fabricated by collecting job work charges including inputs required for such fabrication work and in no case the ownership of the chassis will 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work on the chassis owned/ supplied by the HQ Northern Command for body building would attract only tax of 18% and not 28% and hence in respect of the work done for which payment was made, excess tax of Rs. 81,24,442 (in respect of the applicant's work being done on the 2.5 Ton vehicles) has been charged by the applicant. The audit observation in substance 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereby clarified that in case as mentioned at Para 12.2(a) above, the supply made is that of bus, and accordingly supply would attract GST @ 28%. In the instant case as mentioned at Para 12.2 (b) above, fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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