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TMI Blog2019 (11) TMI 1715X X X X Extracts X X X X X X X X Extracts X X X X ..... ct" respectively] by M/s Bhaktawar Mal Kamra & Sons, Shop No. 109, New Grain Market, Mandi Dabwali, District, Sirsa [hereinafter referred to as the "Appellant"] against the Advance Ruling No. HAR/HAAR/R/2018-19/10, dated 30.08.2018. A copy of order dated 30.08.2018 of the Advance Ruling Authority was received by the appellant on 05.12.2018 and the appeal has been filed on 07.01.2019, which is in time. Brief Facts of the case: The appellant namely M/s Bhaktawar Mal Kamra & Sons, Shop No. 109, New Grain Market, Mandi Dabwali, District Sirsa is a proprietorship firm. The Appellant is engaged in the business of providing services of commission agent in respect of agricultural produce at Mandi Dabwali, Sirsa. The Appellant had sought Advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by some other Acts will make that person liable for registration because that invoice will be considered as his turnover which is against the law and established practice. 4. It is an established fact that commission agents only account for the commission as his income and value of goods do not form the part of his turnover. The appellant has placed reliance on circular No. 452, dated 17.03.1986 by the Central Board of Direct Taxes which had clearly defined the relation of Kachha Arhtiya and established that turnover of Kachha Arhtiya is only his commission and not the goods supplied by the agent on behalf of farmer. 5. While issuing the Advance Ruling, the Ld. AAR had over-sighted the principle of composite supply. Even if for the sake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commission agent (Kachha Arhtiya). The appellant has contended that the advance ruling authority has wrongly treated the turnover made by the principal as turnover made by the commission agent thereby making him liable for registration. In support of this he has referred to the circular dated 04.09.2018 issued by the CBIC wherein the term agent has been clarified showing that a commission agent who issues invoice is covered under the category provided in schedule 1 and else not. The appellant has argued that the provisions of CGST/HGST Act and the definition of turnover as contained therein, nowhere prescribe that the person transferring the property in goods through issue of forms prescribed by some other Acts will make that person liabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght a ruling on whether commission agent, providing services in relation to sale or purchase of agriculture produce, is liable to obtain registration and whether the commission agent is liable for tax under reverse charge mechanism on services provided in sale of raw cotton vide notification No. 121/ST-2, dated 14.11.2017 issued under Haryana Goods and Services Tax Act, 2017 read with corresponding notification No. 43/2017, dated 14.11.2017 issued under the Central Goods and Services Tax Act, 2017. Clause (vii) of Section 24 of the CGST/HGST Act provides that a person who, whether as an agent or otherwise, makes taxable supply of goods or services or both on behalf of other taxable persons, are compulsorily required to obtain registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the term 'agent', as contained in sub Section (5) of Section 2 of the CGST Act, is corresponding to the representative character identified in the definition of agent under the Indian Contract Act, 1872. The said circular further clarifies that a key ingredient for determining whether the agent is wearing the representative hat and is supplying or receiving goods on behalf of the principal would be whether invoice for further supply or goods on behalf of the principal is being issued by the agent or not. Since, a commission agent 'Kachha Arhtiya' supplies goods to the buyers against 'Form I' as prescribed under the APMC Act of the State, vide which the titled of goods is passed on to the buyer against an agreed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erse charge basis by any registered person as the recipient of supply. The advance ruling authority in view of above provisions has rightly observed that a commission agent who becomes liable for registration under Section 22(1) of the Acts ibid, shall also become liable to pay tax on supply of raw cotton by an agriculturist on reverse charge basis being a registered person. The Advance Ruling Authority has observed in relation to a 'Pucca Arhtiya' i.e. a commission agent, who does not inform his constituent as to the third party with whom he has entered into a contract himself as the recipient of goods, has a personal interest of his own when he enters into a transaction in as much as he can also supply his own goods to the princ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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