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TMI Blog2021 (6) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... institutions, research institutions, universities, Indian Institute of Technology, departments and laboratories of the Central and State Government, basis the 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, Mah ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 23.07.1996 as amended by Notification No. 43/2017-Cus dated 30.06.2017, using their IEC. In such cases commercial invoices are issued by the Applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 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 is made only to Notification No. 51/96-Cus dated 23.07.1996. 2.19 Notification No. 45/2017-C.T.(Rate), Notification No. 45/2017-S.T.(Rate) and Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pired, 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 Notifications. 2.27 It is a settled principle of law that the language of the Notification has to be read strictly and there is no scope to add conditions which are not prescribed under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, 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, Indian Institute of Technology, departments and laboratories of the Central and State Government (hereinafter referred to as the "said institutions"), on the basis of the certificates which have been appended along with this application. 5.2 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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) (2) (3) (4) 1. Public funded research institution other than a hospital or a University or an Indian Institute of Technology or Indian Institute of Science, Bangalore or a National Institute Technology/ Regional Engineering College (a) Scientific and technical instruments, apparatus, equipment (including computers); (b) accessories, parts, consumables thereof; (c). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Exemption No. 36 [Notification No.51/96-Customs dated 23.7.1996 as amended by Notification Nos. 93/96, 19/97, 28/98, 20/00, 24/02, 28/03, 24/07, 24/14, 43/17] provides exemption to research equipments imported by public funded research institutions or a university or an IIT or Indian Institute of Science, Bangalore (IIS) or Regional Engineering College (REC), non-commercial institutions etc, from so much of that portion of the duty of customs leviable thereon which is specified in the said First Schedule as is in excess of the amount calculated @ 5% ad valorem and from the whole of the Integrated Tax (IGST) leviable thereon, under sub-section (7) of Section 3 of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary 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 goods are supplied, are registered with the DSIR. However they have submitted such certificate only in a few of cases. Hence we will restrict the detailed discussion only in such cases. Another condition to be satisfied as per the said Sr. No. 2 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. This according, to the applicant's submissions are provided to them. However, corresponding documentary evidence has been submitted only in a couple of cases. 5.8.3 As per Sr. No 3 of Notification 45/2017, when the said goods are supplied to Departments and laboratori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 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 mentioned in the relevant notifications (including submissions of proper certificates issue by the proper authorities), as discussed above, they will be eligible for concessional rate of 5% GST only with effect from the date of issue of the said notifications, i.e. 14.11.2017. 5.12 One of the important conditions mentioned in column 4 of the said notifications is, regarding production of certificates. Applicant has contended that even certificates issued, mentioning the Erstwhile Central Excise Notifications, should be considered as valid certificates under the GST Act. During the hearings, the applicant informed that customers were refusing to issue the certificates mentioning the relev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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