TaxTMI 
TaxTMI 
TaxTMI 
2021 (8) TMI 892
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....'GST Act would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- for SGST and Rs. 5,000/- for CGST towards the fee for Advance Ruling. The concerned jurisdictional officer also raised no objection to the admission of the application. The application is therefore, admitted 4. Brief facts of the case: M/s Deccan Transcon Leasing Private Limited (DTLPL) are Non-vessel owner container carriers/ Operators (NVOCC) who arc based in India but lease containers from suppliers outside the country and in turn use it in transportation of bulk chemicals The applicant entered into a lease purchase agreement from M/s. Tankspan Leasing Limited (TLL) on 28.08.2018. In terms of this agreement the applicant pays lease rentals every month and he is entitled for the purchase of the container during the period of lease or at the end of the lease period by paying the agreed rate. The applicant submits that they have recognized the tank containers and assets in the books of account from the inception of the le....
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....titled to purchase the tank upon payment of pre agreed price mentioned therein and the lease rentals paid adjusted against the purchase price. That the applicant recognised these containers as asset in his books of account from the inception of the lease due to the certainty of acquisition at a future date. Therefore the applicant averred that the transaction is one for purchase of goods and not for lease service. Further they averred that such goods have never entered the territory of the country and therefore do not attract any tax under CGST/IGST Acts. The applicant relied on Mohit minerals Vs UOI (2020) 33 GSTL 321 (GUJ) wherein it was held that the transaction occurring totally outside India is not liable for GST in India. 5. Questions raised: Based on the facts mentioned hereinafter, the applicant sought Advance Ruling on the following issues:- 1. Is GST liable to be paid on leasing of tank containers taken form a supplier i.e., lessor who is located outside India and the tank containers do not reach India? As it is finance lease, it is supply of goods and tank containers do not reach the Indian Territory. 6. Personal Hearing: The Authorised representatives of the uni....
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.... inform that the constitution has been amended to include Entry 12A in the Article 366 which enables levy of tax on supply of goods & services except on alcoholic liquor for human consumption. Further the definition of goods in the Section 2(d) of the CST Act is amended to include only petroleum and liquor and Section 2(g) has to be applied only to the goods enumerated in Section 2(d). Therefore sales tax under CST Act can be levied only on these goods whereas tax on supply of goods and services is levied under CGST/SGST and IGST Acts. Hence the above argument of the applicant is not sustainable in light of the amendments to the constitution of India and the concomitant amendments to the GST and VAT Acts. ii. Further under Accounting Standard-19 of Accounting Standards of India the Ieased Asset will be shown in the books of lessee and this does not alter the nature of a lease transaction. However the question remains whether the applicant is recipient of goods & services under the GST Act which will be discussed below. iii. The applicant argues that the transaction made by him falls under Entry 1(c) of Schedule 11 to Section 7 of the CGST Act. The said Entry declares a specific ....
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....ssor. The relevant terms and conditions in the lease agreement are as under:- a. "The Title of the Agreement is named as Lease Purchase Agreement" b. In the agreement, it is stated that in consideration of terms and covenants.............lessor agrees to lease to the lessee and the lessee agrees to hire from lessor... tank containers identified (Para A of the agreement). c. The term of the lease shall commence...on the date of delivery of lessee of such container and shall continue for each container for a minimum period of 5/2 years (Para B of the agreement). d. The lessee shall pay an amount at a daily rate of US $ 10.20 per container. At the expiry of term of lease purchase, ...and that no event of default has occurred, the lessee shall purchase all such containers on lease. ... Upon such receipt of payment by lessor from lessee for full payment for the term of lease, such title of ownership shall pass to lessee (Para C of the agreement). e. Upon expiration of the minimum lease purchase term or expiration of lease purchase term .. where the lessee has not purchased the containers in accordance in Para C or termination due to default of the lease purchase terms, the les....