9911796707
TMI Blog2019 (3) TMI 1849X X X X Extracts X X X X X X X X Extracts X X X X ..... s of mining of Boulder in the State of Haryana. The product is classifiable under Tariff Heading 2517 and are leviable to GST on their supply at the rate of 5%. 1.3 That the applicant has been granted a mining lease for extracting "Stone along with associated minor minerals" at village "Pichopa Kalan", Distt. Bhiwani, Haryana by the State Government on various terms and conditions as per the LOI and Lease deed (Annexure-3 & 4). 1.4 That further in accordance with the part-III ("Covenants of the Lessee") in para 3(a) of the Lease deed it has been agreed that the bid amount of Rs. 26 crore shall become "annual dead rent" as amount agreed to be paid by lessee and the rate of same shall increase depending upon the terms of auction. Further, 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it. Accordingly, the applicant has framed the following questions: a. What is the classification of service provided in accordance with Notification No. 11/2017-CT (Rate) dated 28.06.2017 read with annexure attached to it, by the State of Haryana to M/s. Sainik Mining And Allied Services Ltd., for which royalty is being paid? Whether said service can be classified under 9973 specifically under 997337 as Licensing services for the right to use minerals including its exploration and evaluation or as any other service? b. What is the rate of GST on given services provided by State of Haryana to M/S Sainik Mining and Allied Services Ltd. for which royalty is being paid? 2. Record of Personal Hearing: 2.1 Personal hearing in the case was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant by the state government. d. That royalty is being paid to the government on the basis of a specific return named MMP1. That in the given MMP1, the quantity of mineral extracted and removed is being mentioned and royalty is being paid on said basis only. Thus, is evident from the said definition and procedure also that royalty is being charged by the state government for transfer of right to use minerals. e. That now with the amendment in entry for the HSN 9973 the clause (viia) has been added and clause (viii) has been amended as the service is not in relation to the renting of property, but since it still belongs to HSN 9973 and the exact classification of service is 997337, thus it shall classify as either transfer of right ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cil and collected in such manner as may be prescribed and shall be paid by the taxable person. 3.2 The term "services" has been defined under section 2(102). "Services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged. 3.3 That in exercise of power conferred under Section 9(1) of the CGST Act 2017, Notification No. 11/2017-CT (Rate) dated 28.06.2017 has been issued which notifies the Central Tax, on Intra-State supplies of service description along with Tariff Heading in accordance with the scheme of classif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or transport of goods 2.5 Provided that credit of input tax charged on goods (other than on ships vessels including bulk carriers and tankers) has not been taken [please refer to Explanation No.(iv)] (viia) leasing or renting of goods Same rate of central tax as applicable on supply of like goods involving transfer of title in goods - (viii) leasing or rental services with or without operator, other than (i), (ii),(iii),(iv),(v),(vi),(vii)and (viia) above 9 - h. As is evident from above, that the service in question is "licensing services for right to use minerals" and not "leasing or renting of goods" and thus is not covered under Sr. No.17 (viia). Therefore, it would fall under the residual entry at Sr. No. 17 (viii). Being so, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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