TMI Blog2021 (8) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... er is a supply under SAC 998881-motor Vehicle and trailer manufacturing services - applicable rate will be GST will be 18% as per entry no.26 of N/N. 11/2017-Central Tax (Rate) dt. 28.06.2017 (as amended) and SI.No.26 of Notification No.II(2)/CTR/532(d-14)/2017 vide G.O. (Ms) No. 72 dated 29.06.2017(as amended) respectively. - TN/27/AAR/2021 - - - Dated:- 30-7-2021 - THIRU SENTHILVELAVAN B., I.R.S AND TMT. T. PADMAVATHI., MEMBER Note: Any appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. --------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cross bearers . This way the entire bus floor structure is mounted on the chassis from the front end to the rear. Meanwhile the Left Hand structure is fabricated by using rectangular tubes, formed sections, angles etc., by welding as per drawings. In the same way bus body sub assemblies such as RH structure, roof structures, rear structures, foot steps are fabricated as per drawings. All the above sub assemblies are brought and placed on the floor one by one on its respective positions and welded. Now the bus body skeleton is formed. This mild steel structure is given a coat of anti corrosive paint so that bus body skeleton is ready for next stage assembly. (ii) GP Coils, GP Sheets, SS Sheets, Plywood are cut to the sizes as per the drawings. Front fascia is fabricated as per design customer's choice. Rear shape panels are formed. This cut panels are fixed on bus body skeleton on exterior to form outer protective skin and interior to give finish look of bus interior. Fixing of all this panels by welding, revetting, bolting and pasting. Doors for driver, emergency exit, passenger entry / exit, fabricated as per drawings are fixed with the body. Thus shape of the Bus Bod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey have relied upon the ruling by Goa Authority for Advance Ruling vide order no GOA/GAAR/10f 2017-18/2018-19/1929 dated 28.1.21.8.2018 in the case of Automobile Corporation of Goa Limited which considered the same issue i.e whether the activity of building and mounting of body on the chassis supplied by the customer will result in supply of goods under HSN 8707 or supply of service under HSN9988?. It was held that it is supply of service under SAC 9988 and will attract 18% GST They have also referred to the ruling of the Authority of Advance Ruling -Madhya Pradesh (GST) order in the case of Rohan Coach Builders (GST AAR Madhya Pradesh wherein the Applicant procures various goods such as metal sheets, plywood, seats, glasses, aluminium sections etc. as inputs for fabricating the bus body besides fabrication services. Once the Bus body is built and mounted on the chassis by the Applicant, the vehicle will be sent back to the OEMs/customers after raising tax invoice towards body building charges. At no stage the ownership of the chassis will be transferred by the OEMs to the Applicant. The applicant will claim the credit of GST paid on the material used as input against outp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing held on 16.07.2021, they submitted the following documents on 23.0.2021 for consideration;- 1. Quotation No. AE:2021:0184 dated 03.03.2021 given to M/s Soundararaja Vidyalaya School with specification 2. Price finalisation letter No. AEPL:2021:0197 dated 18.03.2021 3. Work Order-Job No. WA0181 4. Chassis purchase invoice No. VMPL-2021-0488 dated 23.03.2021 issued by M/s Vetri Motors, Madurai. 5. Letter dated 23.03.2021 received from M/s Soundararaja Vidyalaya for handing over the Chassis. 6. Chassis Inward register 7. Taxable invoice No. 10502/00001 dated 30.04.2021. 4.1 The applicant is under the administrative control of the State Jurisdiction. The State jurisdictional authority, Assistant commissioner (ST) Pollachi (East) Circle vide their letter Ref. No. 143/2021/A4 dated 21.04.2021 has submitted that there are no proceedings pending in the case of the applicant. 4.2 To ascertain the nature of the activity undertaken by the applicant, the Jurisdictional authority was asked to physically verify the facts and report vide notice datedl6.07.2021. They vide their letter dated 29.07.2021 reported that a verification was conducted and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their new TATA LPO 1618/57 5L bearing engine no. 51GDICR20BYX503177 and Chassis no. MAT789014M5B01803 for constructing a bus body over the same as per the specifications in the above-mentioned work order. 3. For this work, applicant raises a tax invoice 10502/00001 dt. 25.03.2021 for the charges with the description, Manufacturing services on physical inputs (Goods) owned by others . 7.4 The applicant contends that the activity qualifies as job work and therefore it is a supply of services under Goods and Service Tax Act. The relevant portions of CGST Act 2017 related to Job work are extracted for reference.- Section 2(68) of the CGST Act 2017 defines job work as 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 construed accordingly; Definition of goods under Section 2(52) is as follows: goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tomer for the value of the bus. b) Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work). 12.3 In the above context, it is hereby 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 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. From the above discussions, it is found that the situation spelt in Para 12.2(b) of the above clarification is applicable to the case in hand and therefore bus body building on the chassis supplied by the customer is a supply under SAC 998881-motor Vehicle and trailer manufacturing services. 8. Having decided the type of supply and the relevant SAC, the rate of supply is to be determined. The rate is S.No Chapter, Section or Heading Description of Service ..... X X X X Extracts X X X X X X X X Extracts X X X X
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