Appellate Orders

Whether M/s. Sikka Ports & Terminals Limited, is entitled to avail Input Tax Credit (‘ITC’) on services procured for the operation and maintenance of Diving Support Vehicle owned by them and used by it for supplying port and terminal handling services? 

2. Whether the M/s. Sikka Ports & Terminals Limited, is entitled to avail Input Tax Credit (‘ITC’) on services procured for hiring, and for operation and maintenance of Security Patrol Vessel used by it for supplying port and terminal handling services?

Whether GNAL is entitled to claim ITC of the GST paid on the services provided by GACL in the form of agreeing to surrender/relinquish its right on leasehold property in favour of GNAL?

The applicant wishes to know the admissibility of input tax credit (ITC) of GST paid on the procurement of plant and machines [mentioned in para 3- above) including the services of installation and commissioning the same in terms of the provisions of section 16 and 17 of the CGST Act, 2017.”

Under which Chapter, Tariff Heading and HSN, the different varieties of Flours i.e. Gota Flour, Khaman Flour, Dalwada Flour, Dahiwada Flour, Dhokla Flour, Idli Flour and Dosa Flour manufactured and supplied by applicant will attract CGST/SGST?

"In view of the foregoing, we made the following order. 

(i) We set aside the impugned ruling given vide UP ADRG-43/2024 dated 20-02-2024 passed by the authority for Advance Ruling against the Appellant. 

(ii) The Supply of Gift cards/Vouchers/pre-paid Vouchers are taxable as supply of Goods and the time of supply shall be decided as per Section 12(4) of the CGST Act, 2017. 

(iii) We hold that GST is applicable on the commission/discount earned in the trading of Vouchers/Coupons by the appellant and the time of supply will be the time when the Vouchers/Coupons are traded or sold. The value of service shall be the margin between the buying and selling price of the Vouchers/Coupons.

The Ruling Pronounced by the AAR that the ITC is not admissible on the Rotary Parking System desired to be installed by the applicant in advanced ruling No. 07/ARA/2024 dated 30.04.2024 is upheld and accordingly, the appeal filed by the appellant was dismissed

"In view of the foregoing, we made the following order. (i) We set aside the impugned ruling given vide UP ADRG-01/2024 dated 15-04-2024 passed by the authority for Advance Ruling against the Appellant. (ii) We hold that appropriate chapter heading for the product proposed to be manufactured is 1517 90 90 and appropriate rate of GST applicable is @ 5 %

The Ruling Pronounced by the AAR in Advance Ruling No. 125 /AAR / 2023 dated 20.12.2023 stands modified to the extent that only the actual value in monetary terms extended to the employee concerned in the course of or in relation to employment, qualifies as a 'perquisite', and it squarely falls within the ambit of entry No.1 of Schedule III of the CGST/TNGST Acts, 2017. Whereas, the car lease amount recovered in actual terms by the appellant-company while extending the facility of car to its employees, cannot be considered as a 'perquisite' and accordingly taxes under GST are applicable on the same, as it does not get covered under the entry No.1 of Schedule III of the CGST/TNGST Acts, 2017

The AAAR held that the preliminary objections raised by the Respondent against the appeals filed by the department against the Advance Ruling dated 16.06.2022 are not sustainable and the appeals are maintainable and deserve to be decided on merits. The Respondent is, therefore, hereby requested to make submissions on merits and appear for personal hearing as and when fixed. ( This order has been passed for deciding the maintainability of the appeal in compliance of Hon'ble High Court of Rajasthan Order dated 22.09.2022 in DB civil W.P. No. 14009/2022 )

The AAAR held that selling of old used iron scrap, used lead acid batteries, old used Aluminium utensils & other Aluminium Scrap, old & used brass utensils and other scrap, used old steel utensils scrap, old used scrap of copper, used waste plastic bags & used plastic PET bottles etc are not covered under the Margin Scheme notified under Rule 32(5) of the CGST Rules, 2017 and as the goods are not qualified as second hand goods, thus, the benefit is neither available for intra state supply of goods nor inter-state supply of goods.