9911796707
TMI Blog2022 (10) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... icant has received order to manufacture Chaff Cutting Machines. In this industry such machines are sold as such and also parts of such machines are also sold separately. In case of huge contact of manufacturing of Chaff Cutter Machine. Such machines are manufactured in parts and such parts are delivered as and when manufactured and assembled in purchaser's location. For ease of transportation also various parts of Chaff Cutting Machine are supplied separately and then assembled in purchaser's location. 2. Proceedings Under Section 98 of CGST/PGST Act: In this regard personal hearings were held on 27.06.2019 and 11.02.2022 before the Advance Ruling Authority, Punjab. Non appeared on behalf of the applicant. A written reply on 09.02 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. What is the classification and rate of Goods and Services Tax for Chaff Cutter Machine, which is supplied in parts for ease of transportation and to save manufacturing cost and different invoice is issued for different parts but contract is for supplying full machine? 5. Whether parts of Chaff cutter machine can be delivered with delivery Challan if there is contract is for supplying full machine and final invoice can be issued on completion of supply of full machine? 4. ELIGIBILITY OF THE APPLICATION FOR ADVANCE RULING The Section 97(2) of the Central Goods and Services Tax Act, 2017, read with Section 97(2) of the Punjab Goods and Services Tax Act, 2017, provides for the issues on which advance ruling can be sought. 97(2) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture produces and same are used for fooding of livestocks. 3. In HSN 8433 grass cutting and hay cutting machine are classified and purpose of Chaff cutting machine are same as machines classified in HSN 8433. Therefore chaff cutting machine should be classified in HSN 8433.. View of Applicant on Question No 2: 1. The Parts of Chaff Cutting machine is covered under 8433 and rate of Tax is 12%. 2. The Parts of Chaff cutting machine are also supplied sepreatly if demanded by any coustmer the HSN 8433 and rate of Tax is 12%same is affixed with their existing Chaff Cutting Machine. 3. In HSN 8433 parts of grass cutting and hay cutting machine are classified and purpose of parts of Chaff cutting machine are same as machines classified i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments are involved, the invoice shall be issued before or at the time of each such statement is issued or, as the case may be, each such payment is received. And Proviso of sub section 2 of section 16 read as under: Provided that where the goods against an invoice are received in lots or installments, registered person shall be entitled to take credit upon receipt of the last lot or installment. By combined reading of section12, 31 and 16 It can be concluded that time of supply is at the time of delivery of full machine and not on delivery of parts of such machine or time of receipt of payment whichever is earlier. View of Applicant on Question No 4: 1. The Chaff Cutting Machine should be classified and charged at the rate app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HE JURISDICTIONAL AUTHORITY: - The jurisdictional Assistant Commissioner CGST Division, Batala vide letter no. 1/560615/2022, dated 10.02.2012 furnished their comments wherein they inter alia submitted as under: - 1. What is the classification and rate of Goods and Services Tax for Chaff Cutter Machine, which is used in cutting of chaff, hay and agriculture produce for fodder of live stocks? The Chaff Cutting machine is covered under the HSN 8433 and rate of Tax is 12%. 2. What is the classification and rate of Goods and Services Tax for Parts of Chaff Cutter Machine. The names of parts are Wheel, Handle and stand. Such parts are assembled to manufacture Chaff Cutter Machine,? The Parts of Chaff Cutting machine is covered under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arlier as provided under section 12 and section 31 of the Act are not acceptable as proviso under sub section 2 of section 16 lays down the condition for availment of input tax credit on the receiver of goods and do not exempt outward supplier from payment of duty in respect of clearance of machinery in full or parts thereof under section 31. 5. Whether parts of Chaff cutter machine can be delivered with delivery Challan if there is contract is for supplying full machine and final invoice can be issued on completion of supply of full machine? The party's view that parts of machine can be delivered on delivery challan and invoice should be raised after delivery of full machine is not acceptable. Party has referred Rule 55 of Central Go ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
