TaxTMI 
TaxTMI 
TaxTMI 
2020 (5) TMI 218
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....ions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. S.607 The Namakkal Agricultural Producers Co-operative Marketing Society Ltd., Namakkal District, 637001 (hereinafter referred as 'Applicant' or 'Society') is registered as a cooperative society under the Tamilnadu Co-operative Societies Act and Rules, regulated and governed by the Department of Cooperation of the Government of Tamilnadu. They are registered under the GST Ac....
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....ollows: * The taxable goods involved in auction sale is agricultural produce i.e. cotton; * The absolute ownership and title to goods is vested with the producers i.e. agriculturists, till it is delivered to the merchants; * The said agricultural produce i.e., Cotton is usually brought to the society by the agriculturist to effect sale through auction; According to the societies by law definition 14 (2) every member of the society shall be entitled to the services available to the member of the society and such service shall be rendered to him by the society; * The society only plays the role of an auctioneer on commission basis and function on the lines of middlemen, not liable to collect or pay tax. The society does not issue any ....
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.... and interest on late payment is also exempted at their hands as per the central and state notifications. They have claimed that they act as a pure agent as per Rule 33 of CGST Rules 2017. The applicant has also referred to the TamilNadu Government letter No.21542/CM1/99-3, Co-operation, Food and Consumer Protection Department dated 15.09.1999, The Principal Commissioner and Commissioner of Commercial Taxes in Letter No.D/Dis.Acts.cell III/73893/99 dated 16.08.2000, wherein it is clarified that Co-operative marketing societies do not come within the meaning of the term "dealer" under Section 2(g) of TNGST act 1959. They have also referred / relied on ratio of decisions in the following case laws to substantiate their contention * T.C. cas....
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....mission agents and not auctioneers or agents in general; thus the society is neither an agent nor an APMC and may be classified as providing "Auctioneering Services" under SAC 9961. 3.3 The Central Jurisdictional Authority vide their letter dated 07.12.2019 submitted that the applicant receives raw cotton from agriculturalist and they are registered under GST, hence as per Notification No.04/2017 CT(rate) dated 28.06.2017 as amended they are liable for payment of GST under Reverse Charge Mechanism w.e.f 15.11.2017 and also the applicant are not coming under the definition of "Commission agent" for availing exemption under SI.No.54(g) of Notification 12/2017 CT (Rate). They also submitted that the merchants are not liable to pay GST on reve....
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....issioner, Salem Commissionerate requesting to clarify whether the investigations undertaken by them are on the issues raised in the ARA application. In response to the above, the Central Jurisdictional authority vide letter C.No.IV/06/95/2019-HPU dated 27.02.2020 submitted that investigation is being undertaken by them on the following issues mentioned by the applicant in their ARA application: 1. Purchase/Sale involved in the process of auction of agricultural produce (cotton) 2. Society is liable to pay tax under Reverse Charge Mechanism 3. Tax Payable on commission, Godown Rent, Interest in respect of service Provided to Agricultural Producers and 4. The merchants (Registered person) who directly purchase cotton from the society ....
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....after hearing the applicant or his authorised representative and the concerned officer or his authorised representative, by order, either admit or reject the application: Provided that the Authority shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act Provided further that no application shall be rejected under this sub-section unless an opportunity of hearing has been given to the applicant Provided also that where the application is rejected. the reasons for such rejection shall be specified in the order. As per the first proviso to Section 98(2) of CGST/TNGST Act 2017 the authority shall not ....