TMI Blog2021 (11) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... registered warehouse from where the goods shall be further moved to the Port, Inland Container Deport, Airport or Land Customs Station. In case the merchant exporter procures goods from different registered suppliers, the merchant exporter should move such supplies to the registered warehouse, aggregate such procured goods at the warehouse and should move the goods to the Port, Inland Container Depot, Airport or Land Customs Station from where the goods are exported. In the instant case, the applicant supplies HDPE drums by raising the invoice under Billed to Merchant Exporter and shipped to the manufacturer of the ethyl alcohol. Thus, the impugned goods are not moved directly to the Port, Inland Container Deport, Airport or Land Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and delivers the same, as per the merchant exporter s direction, to the premises of the chemical manufacturer, who manufactures ethyl alcohol and packs the same in the said HDPE drums and the merchant exporter exports the said ethyl alcohol packed in said HDPE drums, within the stipulated time. In this regard, the applicant sought advance ruling in respect of the following question: Whether they are liable for 0.1% concessional rate of tax under Notification No. 41/2017-IT (Rate) on supply of HDPE Drums for use by the manufacturer of Ethyl Alcohol in his factory for packing his manufactured goods and supply to merchant exporter? 4. Admissibility of the application: The question is about applicability of a notification issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nst the said invoice and invoice date against which the said drums were supplied by them. These details get automatically updated on the advance IT platform of GST for auto verification. 5.4 The applicant stated that they supply HDPE drums to the said Merchant Exporter which are delivered to the manufacturer of Ethyl Alcohol as per instructions of this merchant exporter. Ethyl Alcohol is then packed in HDPE drums and it gets exported outside India within a specific timeline. The applicant further stated that all other drum manufacturers across the country are supplying drums to merchant exporters at concessional rate following the aforesaid procedure. 5.5 The applicant further stated that the GST authorities have objected that the goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be received by chemical manufacturer in his factory, wherein the goods manufactured by the chemical (i.e. Ethyl Alcohol) manufacturer would be packed in the drums supplied by the applicant herein and thereafter such goods contained in drums would be exported by Merchant Exporter. PERSONAL HEARING PROCEEDINGS HELD ON 07.10.2021 7. Shri Girish, Employee and Duly Authorised Representative of the applicant appeared for personal hearing proceedings and reiterated the facts narrated in their application. FINDINGS DISCUSSION 8. At the outset we would like to make it clear that the provisions of CGST Act, 2017 and the KGST Act, 2017 are in pari-materia and have the same provisions in like matter and differ from each other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of the Notification supra. In this relation we invite reference to the conditions specifically (vi), (vii) and (viii) of Notification No. 41/2017 - IT (Rate) dated 23.10.2017, which are appended below: XXXX XXXXXXXX (vi) the registered recipient shall move the said goods from place of registered supplier- (a) directly to the Port, Inland Container Depot, Airport or Land Customs Station from where the said goods are to be exported; or (b) directly to a registered warehouse from where the said goods shall be moved to the Port, Inland Container Depot, Airport or Land Customs Station from where the said goods are to be exported: (vii) if the registered recipient intends to aggregate supplies fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods to the Port, Inland Container Depot, Airport or Land Customs Station from where the goods are exported. In the instant case, the applicant supplies HDPE drums by raising the invoice under Billed to Merchant Exporter and shipped to the manufacturer of the ethyl alcohol. Thus, the impugned goods are not moved directly to the Port, Inland Container Deport, Airport or Land Customs Station or to a registered warehouse, which is a pre-condition for availing concessional rate of GST. Therefore, the applicant is not entitled to supply the impugned goods at the concessional rate of GST at 0.1%. 14. In view of the foregoing, we pass the following RULING The applicant is not entitled for 0.1% concessional rate of tax (GST) under Not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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