TaxTMI 
TaxTMI 
2019 (9) TMI 824
X X X X Extracts X X X X
X X X X Extracts X X X X
.... respect of the following questions: a) Is it legally correct to infer that the service of "logging" and its components described before do not attract any SGST under the CGST Act, 2017? If not, what is the correct position by law? b) In case the trees have grown from "plants" not planted by the Karnataka Forest Department, but that which grew by natural regeneration but were nurtured, managed and protected by the Karnataka Forest Department, does the same nil rate of SGST and CGST apply to them too? If not, what would be the rate? c) In case of sale of forest produce or any other goods belonging to Karnataka Forest Department, where the buyer is registered or is based in and transports the goods to outside the State of Karnataka, what should be charged under the CGST Act, 2017, (A) SGST and CGST, or (B) IGST? d) In case of sale of forest produce or any other goods belonging to Karnataka Forest Department, where the buyer is registered or is based outside the State of Karnataka, but uses the goods within the State of Karnataka, what should be charged under the CGST Act, 2017? (A) SGST and CGST, or (B) IGST? 3. The applicant furnished some facts relevant to the stated activ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y related to production of any agricultural produce including cultivation, harvesting, threshing, plant protection or testing; (b) Supply of farm labour; (c) Processes carried out at an agricultural farm including tending, pruning, cutting, harvesting, drying, cleaning, trimming, sun drying, fumigating, curing, sorting, grading, cooling, or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market; (d) Renting or leasing of agro machinery or vacant land with or without a structure incidental to its use; (e) Loading, unloading, packing, storage or warehousing of agricultural produce; (f) Agricultural extension services; (g) Services by any Agricultural Produce Marketing Committee or Board or services provided by a commission agent for sale or purchase of agricultural produce (ii) Services by way of pre-conditioning, pre-cooling, ripening, waxing, retail packing, labelling of fruits and vegetables which do not change or alter the essential characteristics of the said fruits or vegetables. (iii) Carrying out an intermediary production process as job work in relation ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ty Conservator of Forests, Bangalore Urban Division, Karnataka Forest Department, appeared and stated that the "Logging" work is done only by the Government Agencies which are State Government Corporations like KSFIC, which is a company registered under the Company Act and they charge the Department on job work basis. They have maintained that all trees are owned by the Forest Department as per the Land Revenue Act, 1976. 5. FINDINGS & DISCUSSION: 5.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by the Deputy Conservator of Forests, during the personal hearing. We have also considered the issues involved on which advance ruling is sought by the applicant and relevant facts of the issue involved. 5.2 The Applicant, filed the instant application dated 03.03.2018 seeking advance ruling on the questions mentioned at para 2 supra. The Applicant contends that the activity of logging means the harvest of plants that have been cultivated on land, grown big & mature enough to be used as fuel or raw material; logging is an agricultural operation; falls under the heading 9986 and therefore in terms of entry....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct 1963 respectively as under: (20) "timber" includes trees when they have fallen or have been felled, and all wood whether cut up or sawn or fashioned or hollowed out for any purpose or not; (21) "tree" includes palms, bamboos, stumps, brushwood and canes; 5.7 In view of the above, it is clearly evident that the activity of "Logging" does not yield agricultural produce and hence is not covered under entry number 24 of the Notification No. 11/2017 - Central Tax (Rate) dated 28th June 2017, effective from 01.07.2017. 5.8 Further the activity of "Logging" also does not fall under the support services to forestry. The term "forestry", in terms of oxford dictionary, means "The science or practice of planting, managing, and caring for forests" In the instant case the nature of work done by the Corporation i.e. the services received by the applicant are not related to the management of forest i.e planting, managing, caring, in relation to cultivation of plants, but are of felling of trees and converting them into a marketable timber or firewood. It is an intermediary operation in the conversion of wood to timber and firewood and hence is not covered under the explanation given to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ivery of goods. The persons participating in the auction are aware of the condition that the transfer of title to goods is happening at the depot and they have to take possession of the goods at that place. The supply gets completed the moment the goods are delivered to the purchaser and the purchaser applies and obtains permit from the Forest department later to transport the goods to his place or any place, on which the Forest department has no control or conditions. In view of all the above reasons and specifically since the delivery is given in the place of depot itself, as per section 10, the place of supply is Karnataka. 5.12 Also, as per of sub-section (1) of section 10, the stress is on the words "supply" and "movement of goods". If the movement of goods is involved within the supply contract then it, then clause (a) is attracted and the place of supply would be the place where the movement of goods terminates for delivery to the recipient. The words clearly say that the there must be termination of movement and delivery to the recipient is a subsequent action. In the pertinent case, it is seen that the goods are delivered to the buyer and the supply transaction is complet....