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TMI Blog2023 (2) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... resented with the following prayers: (i) quash the Order number KAR/AAAR/11/2021-22 dated December 22, 2021 passed by the Karnataka Appellate Authority for Advance Ruling; (ii) issue a suitable writ, order or direction as this Hon'ble Court may deem fit and proper to the Respondents to make suitable provisions in reference to the underlying subject of this writ; (iii) to pass such other orders, directions and writs as this Hon'ble High Court may deem fit in the facts and circumstances of the case, and in the interests of Justice, including the costs of this writ petition. 2. Heard Shri. G. Shivadass, learned Senior Advocate for the assessee and Shri. Jeevan J. Neeralgi, learned AGA for the Revenue. 3. Briefly stated the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Authority has affirmed the order passed by the Advance Ruling Authority. Feeling aggrieved, the assessee has presented this writ petition. 6. Shri. G. Shivadass, learned Senior Advocate for the assessee submitted that: * the RBI [Reserve Bank of India] has issued a master direction [DPSS.CO.PD.No.1164/02.14.006/2017-18] on issuance and operation of PPIs. Para 9.1(i)(g) of the direction specifically recognizes the PPIs for the purchase of goods and services. The vouchers involved in this case are PPIs which do not disclose the goods and services at the time of issuance; * since the goods are not identifiable at the time of issuance, as per Section 12(4)(b) of the CGST Act, 2017, the time of supply shall be the date of redemp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yan Jewellers and his customers. Therefore, on facts, the principle is not applicable to the case on hand. 9. We have carefully considered rival contention and perused the records. 10. Undisputed facts of the case are, assessee is a Company engaged in the transaction of procuring PPIs of Gift Vouchers, Cash Back Vouchers and E-Vouchers from the issuers and supplying them to its clients for specified face value. The clients issue them to their employees in the form of incentive or to other beneficiaries under promotional schemes for use as consideration for purchase of goods or services or both as specified therein. Assessee receives orders for supply of evouchers wherein the assessee sources e-vouchers for such clients as per the orders r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the terms and conditions of use of such instrument." 15. Shri. Shivadass's contention is, 'vouchers' are recognised by the RBI as 'payment instrument' to be accepted as consideration or part consideration for supply of goods and services. However, the vouchers themselves cannot be treated as 'goods or services' for the purpose of levy of GST. When the vouchers do not have any intrinsic value and they represent the value of future goods or services to be redeemed, the levy of tax on the vouchers is without authority of law and it also amounts to multiple levy of taxes. 16. The definition of 'vouchers' as defined under the CGST Act, makes it clear that vouchers are mere instruments accepted as consideration for supply of goods or servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he underlying good(s) or service(s). Voucher per se is neither a goods not a service. It is a means of payment of consideration." (Emphasis Supplied) 21. It is not in dispute that the vouchers involved in the instant petition are semi-closed PPIs in which the goods or services to be redeemed are not identified at the time of issuance. Vouchers are distributed to its employees or the customers which can be redeemed by them. These PPIs do not permit cash withdrawal, irrespective of whether they are issued by banks or non-banking Companies and they can be issued only with the prior approval of RBI. 22. In substance the transaction between the assessee and his clients is procurement of printed forms and their delivery. The printed forms ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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