TaxTMI 
TaxTMI 
2019 (7) TMI 1280
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....s per section 16 then, will WMSPL will be liable to claim refund for zero rated supply i.e.; exports? 3. If at all taxable, whether the tax will be levied as intra-state or interstate supply? Vide their additional submissions their questions have been reframed as under:- 1. The advance ruling is sought to confirm whether this supply will fall under Schedule III of CGST Act? 2. The advance ruling is sought to confirm whether the supply will be termed as Exports of Goods. If No, then what will be the supply, whether Intra State or Inter State and which Tax will be levied CGST and SGST or IGST? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be see....
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....ehouse or Non-Bonded Warehouse and supply the same to ship proceeding to a foreign port from the Indian Sea-ports. The facts of this transaction are mentioned below: Delivery of goods to ship proceeding to a foreign port can be done in three following ways: 1. The goods can be delivered from the Bonded Warehouse by paying the Duty: Steps: 1. WMSPL receives the order from the customer. 2. Based on the order WMSPL check if the vessel is not on foreign run/ or if vessel's present port of call is not within 90 Kms radius from the Bonded warehouse. 3. WMSPL prepares the Delivery note and Invoice to file it with customs. 4. WMSPL pays the applicable duty as per the value mentioned in the invoice. 5. Customs issues a Bill of Entry Document and out of charge document. 6. After the clearance of documents, WMSPL collects the goods from the warehouse and the delivers the goods to the vessel. 7. WMSPL files the Shipping bill at the relevant port. 8. WMSPL delivers the goods on board and obtains vessel's acknowledgment on delivery note. II. The goods can be delivered from the Non-Bonded Warehouse by payi....
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....of IGST Act, The place of supply of goods- (a) Imported into India shall be the location of the importer; (b) Exported from India shall be the location outside India. 2. Relevant definition and provisions under Customs and Excise Law: • Definition of exports - Customs; The definition of export under the Customs Act is referred to in Sec. 2(18) as per which "export", with its grammatical variations and cognate expressions, means taking out of India to a place outside India. The definition under the IGST Act & the Customs Act is the same, except for the fact that word goods is not used in Customs Act. • Section 87 of the Indian Customs Act, 1962 : Imported stores may be consumed on board a Foreign-going vessel or aircraft. Any imported stores on board a vessel or aircraft (other than stores to which section 90 applies) may, without payment of duty, be consumed thereon as stores during the period such vessel or aircraft is a foreign-going vessel or aircraft. • Section 88(a) of the Indian Customs Act, 1962: for the words "exported to any place outside India" or the word "exported", wherever they occur], the words Taken on boar....
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....ost guard ships, will be treated as "exports". Additional submission given by the applicant: In reference to Hearing dated 07/06/2019, please note below additional details required and questions are reframed, so earlier questions submitted may be ignored for this proceedings. Nature of Purchase : WSS imports the goods from the foreign countries. Where are these imported goods stored : Imported goods are stored in (1) Bonded Warehouse and (2) Non-bonded warehouse after clearance for home consumption Process of supply : The delivery of goods to foreign going vessel can be done in following 2 ways, A. Supply directly from Bonded Warehouse (shipping bill is filed for supply of goods on board Vessel) 1. Once received order from customer, WSS check item wise INBOND BOE number. 2. Prepare CHECKLIST for shipping bill. 3. Send Checklist of shipping bill to WSS for approval once it is approved then we have to file and generate shipping bill number. 4. Submit docs into customs for clearance along with request letter. 5. Coordinate with vessel agent for vessel detail (for ETA, ETB and ETD). 6. We have to arrange seal truck....
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....ALER IN SHORT Parents Company Purchase Sale (Outside India) ←WMSPL→ Sale to owner / operator of ship Proceeding for foreign port. Delivery of goods on board i.e. Indian port. WMSPL is seeking an advance ruling or the applicability of GST & raised following queries:- Q. 1) Whether the delivery of goods to the owner of the ship proceeding to foreign port at this Indian port is an "export of goods" as per the sec. 16 of the IGST Act 2017? Q. 2) WMSPL has w.e.f. 1.7.2017 levied and paid GST under protest on all its "Maritime products" supplies. If the supply is exports as per section 16 than, will WMSPL will be liable to claim refund for zero rated supply i.e. exports? Q.3) If at all taxable, whether the tax will be levied as intra-state or interstate supply? Submission of this office with respect to the queries raised by WMSPL is as follows Q 1) Whether the delivery of goods to the owner of the ship proceeding to foreign port at this Indian port is an "export of goods" as per the sec. 16 of the IGST Act 2017? 1. With respect to question 1, this office submits as below : i. Taxable territory is defined in Sec. 2(109)....
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.... to the present situation. iii) Also, the recent judgement of Honourable Bombay Court in Radhasons International in STR 52/2009 decided on 8.2.2019 = 2019 (2) TMI 551 - BOMBAY HIGH COURT has held that when the bill of entry for warehouse is filed in the course of import is over and any sale thereafter, cannot be treated as sale in course of import. iv) Order dt 27.03.2018 Delhi Authority for Advance Ruling has held that supply of goods to the international passengers going abroad from retail outlet situated in Security Hold Area of IGI Airport cannot be treated as export and taxable person is liable for GST. v) The MGST Act, CGST Act and IGST Acts are collectively codes in themselves and it is not permissible to borrow any provisions of other laws such as Customs Act or Central Excise Act, for affecting the applicability of the MGST Act, CGST Act and IGST Acts not warrant exemption to be applied to supplies liable to tax under such laws. If exemption or non-applicability of laws of the MGST Act, CGST Act & IGST Acts are to be claimed, the same must be found in the said MGST Act, CGST Act &IGST Acts and not outside. vi) Proviso to Section 5(1) of IGST nor Sec. 3 of Custo....
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....r that, transaction in question will be intra-state supply and CGST and SGST will be levied." 04. HEARING Preliminary hearing in the matter was held on 09.04.2019. Sh. Pranav Mehta, C.A. appeared and requested for admission of their application. Jurisdictional Officer Sh. Mangesh More, State Tax Officer (C-815) Mumbai also appeared. The application was admitted and called for final hearing on 07.06.2019. Sh. Pranav Mehta, C.A appeared, made oral & written submissions. Jurisdictional Officer Smt. Gitanjali Temgire, Dy. Commissioner of S.T.,(E-629) LTU-3, Mumbai appeared and made both, oral and written submissions. We heard both the parties. 05. OSERVATIONS AND FINDINGS: We have gone through the facts of the case, documents on record and written submissions made by both, the applicant as well as the jurisdictional office. The applicant, registered under the GST Act, imports and supplies goods like "Marine Products", which are required for the ship's maintenance, consumption etc. Applicant imports the aforesaid Marine Products from its parent company formerly known as Wilhelmsen Ships Service AS, Oslo (W SS AS) situated abroad. The goods so procured from out of I....
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....ns of the Constitution in that capacity; or (c) the duties performed by any person as a Chairperson or a Member or a Director in a body established by the Central Government or a State Government or local authority and who is not deemed as an employee before the commencement of this clause. 4. Services of funeral, burial, crematorium or mortuary including transportation of the deceased. 5. Sale of land and, subject to clause (b) of paragraph 5 of Schedule II, sale of building. 6. Actionable claims, other than lottery, betting and gambling, 7. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India. 8. (a) Supply of warehoused goods to any person before clearance for home consumption; (b) Supply of goods by the consignee to any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption. Explanation 1: For the purposes of paragraph 2, the term "court" includes District Court, High Court and Supreme Court.....
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....y of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid (e) Determination of the liability to pay tax on any goods or services or both (f) Whether the applicant is required to be registered (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term. In the present case on the basis of the arguments made by them and scrutiny of records submitted by the applicant and the arguments put forth by them, we find that their main question is whether the transaction effected in the present case can be considered as exports. On proper and detailed examination of full facts as put by the applicant at the time of the hearings, we find that this question is not covered under the purview of Section 97 of the CGST Act, 2017. Hence we hold the subject application is not maintainable in this respect and cannot be entertained and therefore no opinion is given by ....