2018 (6) TMI 464 - AAR - GST

Scientific Instrument Supplies to Research Institution Denied Concessional Tax Rates Under Specific Notification Requirements

Tax Authority Ruling: Research Institution Supply CaseThe SC ruled that the applicant's scientific and technical instrument supplies to a government ... Concessional rate of tax - public funded research institution under the administrative control of the Department of Space - scientific and technical instruments, apparatus, equipment - accessories, parts and consumables - certificate from the Head of the Institution at the time of supply - supply to specified institutions subject to conditions in notificationConcessional rate of tax - public funded research institution under the administrative control of the Department of Space - scientific and technical instruments, apparatus, equipment - accessories, parts and consumables - certificate from the Head of the Institution at the time of supply - Applicability of the concessional rate under Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 to supplies made to Satish Dhawan Space Centre (SHAR). - HELD THAT: - The Authority examined the certificates produced by the applicant and accepted that Satish Dhawan Space Centre (SHAR) is a public funded research institution under the administrative control of the Department of Space, and thus falls within the category of institutions envisaged by the notification. The notification grants concessional rates only for goods specified in the notification's column describing eligible items (notably: scientific and technical instruments, apparatus and equipment; accessories, parts and consumables; computer software; prototypes), and then only when supplied to the specified institutions subject to the prescribed certification conditions at the time of supply. The applicant furnished the list of goods it proposes to supply; on comparison with the items enumerated in the notification, those goods do not fall within the categories listed in the notification's column of eligible goods. Consequently the statutory prerequisite linking eligible goods to eligible institutions is not satisfied for the listed supplies.The supplies intended to be made to SHAR are not covered by Notification No. 45/2017 and therefore the concessional rate is not applicable.Final Conclusion: The Authority rules that although SHAR is an eligible public funded research institution under the Department of Space, the goods proposed to be supplied by the applicant are not items covered by the notification; accordingly the concessional rate under Notification No. 45/2017-Central Tax (Rate) (and corresponding notification) does not apply to those supplies. Issues:- Eligibility for concessional tax rate on supplies made to a specific institution.Analysis:The case involved an application seeking an advance ruling on the adoptability of a notification to supplies made to a specific institution. The applicant, engaged in supplying scientific and technical instruments, inquired about the eligibility for concessional tax rates for supplies to a research institution. The application was forwarded to jurisdictional officers for remarks as per the relevant Act. A personal hearing was conducted where the applicant's representative submitted necessary documents related to the supplies intended for the institution.The ruling authority examined the application and the certificates issued by the institution to which supplies were intended. The institution was identified as a public funded research institution under the administrative control of the Department of Space, Government of India. The authority referred to a specific notification providing concessional rates for goods supplied to such institutions and outlined the conditions for eligibility. However, upon reviewing the list of goods intended for supply by the applicant, it was found that they did not fall under the categories specified in the notification for concessional rates.Therefore, after a thorough examination of the issue, the ruling was delivered stating that the goods intended for supply by the applicant to the institution were not covered under the relevant notification, and hence, the concessional tax rate was deemed not applicable to the supplies in question.