TMI Blog2021 (6) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... e notification of the G.O.I. in the M.O.F. (Department of Revenue), No. 51/96-Customs, dated the 23.07.1996 and is applicable with effect from the 15th November, 2017. As per Sr. No 1 of Notification 45/2017, when the said goods are supplied to public funded research institutions other than a hospital or a university or an HT or an IIS or a National Institute of Technology (NIT)/REC, for availing exemption mentioned therein, the said institution must produce a certificate of registration with DSIR, from an officer not below the rank of the Deputy Secretary in the Union territory in concerned department to the supplier, (in this case, the applicant) at the time of supply of the specified goods - In absence of the necessary certificates/documents having being produced before this authority the applicant is not entitled for exemption as a blanket case. Benefit of N/N. 45/2017 - HELD THAT:- As per Sr. No 3 of Notification 45/2017, when the said goods are supplied to Departments and laboratories of the Central Government and State Governments, the said departments/laboratories must produce, at the time of supply, a certificate to the applicant from the Head of such Institution, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certificates appended herewith ? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression GST Act would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT A M/s. Thermo Fisher Scientific India Private Limited, the applicant, has submitted, as under:- 2.1 Applicant, situated at Powai, Mumbai, has a customs bonded warehouse license under Section 58 of the Customs Act, 1962 for deposit of imported goods without payment of customs duty and Integrated Goods Services Tax (IGST). 2.2 Applicant also has other non-bonded warehouses located at various locations. Supplies in Maharashtra are undertaken from Toll India Logistics Pvt. Ltd., Bhiwandi, Maharashtra. 2.3 Applicant supplies scientific and technical instruments and equipment (hereinafter referred to as the said goods), to public f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alidity for certain years. Presently, since the said certificates were issued under the old excise regime, the same bear references to the Notifications issued under those regimes. Relevant extract of the Certificate of registration with DSIR provided by CSIR-Institute of Minerals Materials Technology, Bhubaneshwar is reproduced below: This is to certify that CSIR-Institute of Minerals Materials Technology, Bhubaneshwar is registered with the Department of Scientific Industrial Research (DSIR) for purpose of availing customs duty exemption in terms of Notification 51/96-Cus dated 23.07/995 and Central Excise duty exemption in terms of Government Notification No. 10/97-CE dated 01.03.1997. This registration is valid upto 31.08.2021 2.9 Pursuant to the above, Applicant supplies the said goods to the said institutions from their customs bonded warehouse/non-bonded warehouse. 2.10 When supply is from the customs bonded warehouse, goods are transferred to the said institutions, who then file Ex-bond Bill of Entry for clearing the goods from the customs bonded warehouse by paying applicable customs duty and IGST in terms of Notification No. 51/96-Cus dated 23.07.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 2017. 2.16 Based on above facts, Applicant states that, post GST, they will be entitled to supply the said goods to the said institutions, availing exemption under Notification No. 45/2017-C.T. (Rate) and Notification No. 47/2017-I.T. (Rate), both dated 14.11.2017 based on the Certificate of registration with DSIR having reference to the Notifications issued under erstwhile law. 2.17 Prior to implementation of GST, vide Notification No. 51/96-Cus dated 23.07.1996, benefit of reduced rate of applicable customs duty was provided to the said goods supplied to the said institutions subject to conditions stated therein. 2.18 An identical Notification No. 10/97-CE dated 01.03.1997, provided benefit of concessional rate of duty under Central Excise Tariff Act as well. Further, Notification No. 43/2017-Cus dated 30.06.2017 amended Notification No. 51/96-Cus to include the integrated tax paid under Section 3 (7) of the CTA in the benefit granted for reduced rate of duty. There was no amendment to the conditions prescribed under the erstwhile Notification No. 51/96-Cus. Since presently, Applicant only deals with imported goods, for the purpose of subject application reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issued under the CGST/SGST/IGST Acts along with the reference made to the aforesaid Notification No 51/96-Cus. However, since the validity period of earlier certificates have not expired, the DSIR have denied the amendment to the same to include the references to the relevant Notifications issued under the CGST/SGST/1GST Acts. 2.24 Considering the fact that conditions prescribed under all Notifications are the same, production of Certificate of registration with DSIR having reference to the erstwhile Notification No. 51/96-Cus should be considered sufficient compliance for eligibility to avail benefit of the Notifications issued under CGST/SGST and IGST. 2.25 Further, Explanation 2 to Notification No. 47/2017 dated 14.11.2017 as amended explicitly provides exemption would be in line with the notification of the G.O.I. in the M.O.F. (Department of Revenue), No. 51/96-Customs, dated the 23.07.1996 and is applicable with effect from the 15th November, 2017. 2.26 Without prejudice to above submissions, it is submitted that the condition prescribed is registration with the DSIR . There is no requirement that the certificate issued by the DSIR should bear reference to the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Officer was absent. 4.2 Final online e-hearing was held on 08.12.2020. Authorized Representatives of the applicant, Mr. Akash Lodha, Tax Manager, Sh. Mihir Mehta, Ms. Shilpi Jain, and Mr. Prasad Paranjape all of them Advocates, and Shri Shaha Gaurang were present. Jurisdictional officer from Central Tax, Division II, Navi Mumbal was absent today. The Authorized Representatives made oral and written submission and stated that they would be submitting further information in this matter at the earliest. The Jurisdictional officer has not made any written submission. 4.3 The matter was heard. 05. DISCUSSIONS AND FINDINGS: 5.1 We have perused the records on file and gone through the facts of the case and submissions made by the applicant. The limited question asked is whether the Applicant can avail of concessional rate of GST under the provisions of Notification No. 45/2017-C.T. (Rate), Notification No. 45/2017-S.T. (Rate) and Notification No. 47/2017-I.T. (Rate) all dated 14.11.2017 on scientific and technical instruments/equipment (hereinafter referred to as the said goods ), supplied to public funded research institutions, research institutions, universities, Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nos. 45/2017 and 47/2017 issued under the MGST Act, 2017 and the IGST Act, 2017, respectively. The said Notifications contain certain conditions for claiming concessional rate of GST and applicant feels that they are eligible for the same because the conditions of the Notifications are satisfied in the subject transactions. According to the applicant, as per the relevant Notifications, the rate of tax on the subject goods is 2.5 % each, under the GST Act. 5.4 Relevant Notification No. 45/2017-C.T.-(R) dtd. 14.11.2020 is reproduced as under:- Notification No. 45/2017-Central (Rate) In exercise of the powers hereby exempts the goods specified in column (3) of the Table below, from the so much of the central tax leviable thereon .., as in excess of the amount calculated at the rate of 2.5 percent, when supplied to the institutions specified in the corresponding entry in column (2) of the Table, subject to the conditions specified in the corresponding entry in column (4) of the said Table- Sr.No Name of importer Description of goods Conditions (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) accessories, parts, consumables and live animals (experimental purpose); (i) The institution produces, at the time of supply, a certificate to the supplier from the Head of the Institution, in each case, certifying that the said goods are required for research purposes only; (ii) .. Explanation 2. - For the purposes of this notification, exemption would be in line with the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 51/96 Customs, dated the 23rd July, 1996, .. and is applicable with effect from the 15th November, 2017. 5.5 Applicant has not listed the names of institutions to whom they are supplying the said goods. It is therefore assumed that they are supplying only to institutions which find mention in the above said Notification No. 45/2017 under CGST Act and the corresponding Notifications issued under the MGST Act and the IGST Act. 5.6 As per Notification No. 45/2017-C.T.(Rate), exemption given therein, would be in line with Notification No. 51/96 Customs, dated the 23rd July, 1996 and is applicable with effect from the 15th November, 2017. 5.7 General Exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are very clearly mentioned. Only 1 specimen certificate submitted by the applicant, in respect of CSIR-Institute of Minerals Materials Technology mentions their eligibility to exemption under Central Excise Notification No. 10/97-Central Excise dated 01.03.1997. 5.8.1.2 Another condition to be satisfied as per Sr. No. 1 is that the Head of the Institution to whom the supply of the said goods are made, issues a Certificate certifying that goods are required for research purposes only and such certificates, are provided to them by the Head of the Institutions to whom the said goods are supplied according to the applicant s submissions. 5.8.1.4 In absence of the necessary certificates/documents having being produced before this authority we feel that the applicant is not entitled for exemption as a blanket case. We will discuss their eligibility for concessional rate of GST only in respect of the certificates submitted by the applicant. 5.8.2 Exemption as per Sr. No 2 of the said Notification 45/2017 is available only when the said goods are supplied to research institutions other than a hospital. Applicant has submitted that in their case, the institutions to whom the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ificates states that, the concerned institutions are registered with DSIR for the purpose of availing customs duty exemption in terms of Notification 51/96-Cus dated 23.07.1996 and GST exemption under the relevant Notifications. 5.10.2 However, in respect of CSIR-Institute of Minerals Materials Technology, the certificate issued by DSIR very clearly states that CSIR-Institute of Minerals Materials Technology, Bhubaneshwar is registered with the Department of Scientific Industrial Research (DSIR) for purpose of availing customs duty exemption in terms of Notification 51/96-Cus dated 23.07.1995 and Central Excise duty exemption in terms of Government Notification No. 10/97-CE dated 01.03.1997. Thus, the said certificate clearly states that their eligibility to exemption is under Central Excise Notification No. 10/97-C.E. dated 01.03.1997. Since it is clearly stated in the said certificate that the exemption is available only under the Central Excise Notification, the same cannot be extended to the Notifications issued under the GST Acts. 5.11 However, even in cases where the applicant is supplying the said goods to the said institutions and satisfying all the conditions m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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