TaxTMI 
TaxTMI 
2019 (10) TMI 753
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....e etc., operate from aforesaid Aquarelle India office. The applicant had taken the said premise on lease with effect from 01.07.2011 till 30.06.2022 with a lock in period of first three years. The applicant wishes to vacate the said premises in the near future and intend to hand over the possession of the premises to the owner along with fixtures to the building. 3. The applicant submitted that these fixtures cannot be dismantled on vacating the premises and these fastened assets would be handed over to the building owner in "as is where is' condition without any consideration charged for the assets handed over. They provided the list of assets which would be left over during handing over of the possession in an annexure to the application. The applicant states that these assets were capitalized in the books of accounts before the introduction of Goods and Services Tax Act i.e., 1st July 2017 and no credit of CENVAT or VAT was availed in the earlier regimes. 4. In view of the above applicant has sought advance ruling in respect of the following questions: 1. Whether disposing off assets (no CENVAT/VAT Credit was taken) fastened to the building on delivering posse....
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....• by or under the directions of the person carrying on the business Therefore, in the opinion of the applicant the said assets were put to use in the pre-GST regime without availment of CENVAT/VAT credit, the disposal of such assets in the GST regime should not amount to supply and hence not liable to GST. The applicant further submitted that treating such transactions as "Supply" considering the essence of the provisions stated in Schedule II of CGST Act 2017 might lead to double taxation, which goes against the very spirit of the GST Law. 7. Further the applicant, with regard to second question, submitted that in case the aforesaid transaction is treated as supply, it is important to ascertain the value on which GST is to be discharged. 7.1 In line with the Rule 27 of the CGST Rules 2017 the value of such capital goods shall be the open market value and the Rule 27 narrated as under. a) be the open market value b) If the open market value is not available under clause (a), be the sum total of consideration in money and any such further amount in money as is equivalent to the consideration not in money, if such amount is known at the time of sup....
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....WITHOUT CONSIDERATION" 1. Permanent transfer or disposal of business assets where input tax credit has been availed on such assets." The same is examined and observed that in the instant case there is a permanent transfer of business assets and admittedly they are capitalised before the advent of the GST Act and no input tax credit is claimed under the earlier law. Further, there is no claim of input tax credit, under the present GST Law. Hence, the transaction is not covered under the entry no.1 of the Schedule I to the Central Goods and Services Tax Act and hence not covered under the clause (c) of sub-section (1) of section 7. 8.5 The entry 4(a) of Schedule II to the Central Goods and Services Act, 2017 which is related to the "activities or transactions to be treated as supply of goods or supply of services" is examined, which reads as under "4. Transfer of business assets (a) where goods forming part of the assets of a business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply ....
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.... to be made for a consideration by a person in the course or furtherance of business are covered under the scope of supply as per-Clause (a) of section 7(1) of the CGST Act. Admittedly there is a transfer of assets in the course or furtherance of business. The applicant states that this transaction would not be for any consideration. The term "consideration" is defined in clause (31) of section 2 of the CGST Act and it reads as under- "(31) "consideration" in relation to the supply of goods or services or both includes - (a) any payment made or to be made, whether in money or otherwise, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government; (b) the monetary value of any act or forbearance, in respect of, in response to, or for the inducement of, the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: Provided that a deposit given in respect of the su....
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.... of the CGST Rules, 2017 reads as under: "27. Value of supply of goods or services where the consideration is not wholly in money. - Where the supply of goods or services is for a consideration not wholly in money, the value of the supply shall, - (a) be the open market value of such supply; (b) if the open market value is not available under clause (a), be the sum total of consideration in money and any such further amount in money as is equivalent to the consideration not in money, if such amount is known at the time of supply; (c) if the value of supply is not determinable under clause (a) or clause (b), be the value of supply of goods or services or both of like kind and quality; (d) if the value is not determinable under clause (a) or clause (b) or clause (c), be the sum total of consideration in money and such further amount in money that is equivalent to consideration not in money as determined by the application of rule 30 or rule 31 in that order." 10.2 Rule 30 of the CGST Rules 2017 reads as under: "30. Value of supply of goods or services or both based on cost.- Where the value of a supply of goods or services or b....