TaxTMI 
TaxTMI 
2022 (3) TMI 488
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....y M/s Platinum Motocorp LLP, Manesar (hereinafter referred to as the "Appellant") against the Advance Ruling No. HAR/HAAR/R/2018-19/40 dated 01.03.2019. A copy of order dated 01.03.2019 of the Advance Ruling Authority was received by the appellant on 13.09.2019 and the appeal has been filed on 11.10.2019 which is within time. BRIEF FACTS OF THE CASE: The Facts of the case, as available from 'Facts and Issues of Ruling' in the Appeal submitted vide FORM 'GST ARA-02' by M/s Platinum Motocorp LLP, are that the Applicant is registered in GST at Gurugram as a Central Government (CBIC - Central Board of Indirect Taxes & Customs) administered taxpayer and is an authorised Dealer of Maruti Suzuki India Limited. The Appli....
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....G by Advance Ruling Authority (AAR): The Advance Ruling Authority (AAR) gave following Rulings on the abovementioned Questions: "RULING: So in the light of above discussion the Ruling of the Authority on the questions raised in the application is as under:- "The Goods and Services Tax paid on the purchase of demo vehicles cannot be availed as Input Tax Credit and set off against output tax payable under the GST. No Input Tax Credit can be availed on the ancillary Input Services such as Insurance and Repair & Maintenance in respect of above-mentioned vehicles." In the Discussion & Findings portion of the Order, the Advance Ruling Authority had found/ noted the following:- "A close scrutiny o....
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....rchased for further supply. The Appellant also purchases demo cars for furtherance of business and after use as demo cars for 2 years the same is sold in market and applicable GST is paid on that; • Appellant's contention is supported by an Advance Ruling dated 26.09.2018 issued by Kerala Authority for Advance Ruling wherein the Authority has held that the negative clause is not applicable; • That, vehicles were always intended to be further supply by the Appellant after specified use; No time limit has been prescribed under CGST Act for further supply of vehicles. RECORDS OF PERSONAL HEARING: The personal hearing in the case was conducted on 24.03.2021. Sh. Deepak Juneja, Advocate appeared before the Mem....
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....#39;capital goods'. Section 16 of CGST Act provides that a recipient Taxpayer is entitled to take the ITC if it has in possession of the duly issued invoices and the goods or services have been received and are intended for furtherance of business. As discussed above certain restriction have been imposed on ITC availment in respect of the goods and services in Section 17(5). One such restriction expressly mentioned under Section 17(5)(g) viz-, "(g) goods or services or both used for personal consumption." It can be inferred that sub-Section 17(5)(g) restricts ITC on the Motor Vehicles as these are potential items of personal/non-business use. However, to arrive at the actual legislative intent i.e. whether the exclusion of said....
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.... of general insurance services in respect of such motor vehicles, vessels or aircraft insured by him;] As may be seen, a plain reading of this Sub-section indicates the legislative intent clearly that when used for other than the intended purposes, the ITC cannot be allowed on the Motor Vehicles of seating capacity up to 13 persons. The intended purposes are also limited i.e. numbered only three, viz.:- • further supply of such motor vehicles; or • transportation of passengers; or • imparting training on driving such motor vehicles. As mentioned supra, the Demo Vehicles in respect of which the Question about admissibility of ITC has been raised for Advance Ruling, have been used, have been ....