Appeal allowed; impugned order quashed as regulator failed to prove nexus or manipulative scheme; sale genuine - s.12A(a)-(c), Regs 3(a)-(d),4(1),4(2)...
Appellant's ring-back tone service held OIDAR, taxable domestically for 01.07.2012-31.07.2016; liability confirmed, penalties vacated, remanded for re...
AAR held that transportation of empty containers by rail is not covered by Entry 9(iv) of Notif. No. 11/2017-CT(R) as that entry applies to transport of goods in containers, not to the movement of containers themselves. Empty containers qualify as "goods" and, in absence of a specific entry, their rail transport falls under the residual Entry 9(i). Accordingly, GST is leviable at 5% under Entry 9(i). The query on legal and tax implications of charging 5% instead of 12% was not answered, as the applicable rate was determined to be 5%. AAR further held that the supplier must mandatorily forgo ITC in terms of the condition attached to Entry 9(i).
AAR held that transportation of empty containers by rail is not covered by Entry 9(iv) of Notif. No. 11/2017-CT(R) as that entry applies to transport of goods in containers, not to the movement of containers themselves. Empty containers qualify as "goods" and, in absence of a specific entry, their rail transport falls under the residual Entry 9(i). Accordingly, GST is leviable at 5% under Entry 9(i). The query on legal and tax implications of charging 5% instead of 12% was not answered, as the applicable rate was determined to be 5%. AAR further held that the supplier must mandatorily forgo ITC in terms of the condition attached to Entry 9(i).
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