2018 (5) TMI 1651

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...., Platform Road, Seshadripuram, Bengaluru - 560020 have Filed an application in form GST ARA-01 on 19,12.2017 seeking Advance Ruling under Section 97 of CGST Act, 2017, KGST Act, 2017 & IGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017. They enclosed copy of challan for Rs. 10,000/-bearing CIN number SB1N17122900184487 dated 19-12-2017 towards the applicable fee. 2. The applicant, having three manufacturing units situated at Ramanagara, Hiriyur and Bengaluru [Seshadripuram], intends to sell the unit situated at Hiriyur along with all its fixed assets namely land, building, plant & machinery etc., current assets namely stock & trade receivables etc., and liabilities namely Bank term loans, bank working capital loans, ....

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....ISCUSSION: 5. We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri S. Vishnu Murthy, Chartered Accountant, the authorised representative of the applicant, during the personal hearing. We also considered the questions / issues on which advance rulings have been sought for by the applicant, relevant facts having bearing on the questions / issues raised, the applicant's understanding / interpretation of law in respect of the issue. 6. The Applicant has sought advance ruling on two questions i.e (1) Whether the transaction would amount to supply of goods or supply of services or supply of goods & services?" and (2) "Whether the transaction would cover u....

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....the backdrop of the aforementioned facts of the case it now needs to be determined whether the transaction amounts to supply of goods or supply of services or supply of both goods and services. 7.3.1 Section 7 of the CGST Act, 2017 defines the Scope of Supply, Section 7(1) provides that 'Supply' includes activities such as sale, transfer, barter, exchange etc. made for a consideration in the course or furtherance of business. This implies that the activity undertaken shall be an action which takes place in the course of regular conduct of business, such as sale or it should have the effect of furtherance of the business. Therefore the activity to be called as supply should be such that undertaking that activity shall amount to co....

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.... in part 4(c) of Schedule II it is provided that when the business is transferred as a going concern then it does not amount to supply of goods. It, therefore, becomes clear that such transfer of business does not constitute a supply of goods. 7.3.3 Activities which constitute supply of services are also described in Schedule II, However the transaction involving the transfer of a going concern is not covered under this Schedule- 7.3.4 This analysis further brings us to the Notification, No. 12/2017-Central Tax {Rate] dated 28th June 2017. Column number 3 of the Table in the said Notification gives the description of the services. Serial number 2 of the Notification provides for 'Services by way of transfer of a going concern, as ....