TaxTMI 
TaxTMI 
2022 (4) TMI 400
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....tions prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant company is a flour miller, engaged in providing services of crushing wheat provided by the State Government, into fortified atta which in turn is supplied by the State Government through Public Distribution System. It is submitted that the ownership of wheat or atta is never transferred to the applicant company. 1.3 The applicant has made this application under sub section (1) of section 97 the GST Act and the rules made there under raising following ....
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....t specifies that the out turn ratio of atta will be minimum of 95% per quintal of wheat allowing refraction of 1% for cleaning and 4% for de-branning to the maximum. The refraction and bran generated in the process of conversion of wheat into flour, is not collected by the State Government and there is no mention of the fate of these waste products anywhere in the contract. The applicant submits further that if the State Government however, asks for the bran and refraction any time then he has no right whatsoever to retain the products. 2.4 The applicant submits that he is only engaged in the processing/ crushing of wheat into atta which involves mixing some ingredients as stated earlier which are incidental to the process of conversion of wheat into fortified atta. The applicant also incurs expenses towards purchases of the said ingredients and packaging material as referred to in the contract. 2.5 The applicant submits that during the process of conversion of wheat into atta, by duly mixing the ingredients mentioned in para 2.1 above, two types of wastes are generated, namely bran and refraction which are retained by him and sold in the open market at the prevailing market ....
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....cation No. 11/2017- Central Tax (Rate) dated 28.06.2017). Combined reading of the definition of job-work [section 2(68), 2(94), 22, 24, 25 and section 51] makes it clear that a person registered only for the purpose of deduction of tax under section 51 of the CGST Act is also a registered person for the purposes of the said entry No. 26, and thus said supply to such person is also entitled for 5% rate. 2.11 The applicant further submits that section 15 of the GST Act states that the value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply. 2.12 The applicant also submits that Rule 27 of the Central Goods & Services Tax Rules, 2017 and West Bengal Goods & Services Tax Rules, 2017 (hereinafter collectively referred to as Rules) prescribes valuation rules for value of supply of goods or services where the consideration is not wholly in money. The said Rule 27 is reiterated as follows: "Where the supply of goods or services is for a consi....
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....y the applicant is true and correct. 3.2 If the value of goods exceeds 25% of the value of the composite supply, the rate of GST applicable on this supply is 5% (as per circular no 153/09/2021-GST dated 17th June, 2021). Further in order to determine whether exemption is available or not, the following calculation is required to be done a) Component of Goods in value of supply divided by value of supply, then multiple by 100. From the submission of the applicant it is found that components of Goods is packing charges received which is Rs. 50/- and value of supply is Rs. 179.48/-. Hence, the ratio comes to 50/179.48x100=27.86%. Since the components of goods in the composite supply exceeds 25% of the value of supply therefore, the rate of GST applicable on this supply is 5%. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorised representatives of the applicant during the course of personal hearing. We have also considered the submission made by the officer concerned from the Revenue. 4.2 The issue involved in the instant case, as we find, is to determine whether the instant supply shall ....
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....le on the said supply In this regard, it is submitted that the Writ Petition vide W.P.A. No. 11423 of 2020 under Article 226 of the Constitution of India, was filed challenging the legality of the summons issued by DGGI. In the same petition, a question regarding the rate of GST being 5% or 18% was put forth. It is submitted that the matter with respect to GST rate being 5% or 18% is not under dispute after the circular no. 153/09/2021- GST dated 17.06.2021 was issued by CBIC. Also, the applicant has not posed this question before the Authority for Advance Ruling. Hence, the question regarding disallowance of the application under the first proviso of section 98(2) does not arise. • It is also submitted that the disallowance pertains to application where the question asked in the application is pending or decided 'under any of the Act'. It is important to note that a writ petition filed before the High Court is by virtue of the power given to High Courts vide Article 226 of Constitution of India. Hence, the matter pending before the High Court is in accordance with the Constitution of India and therefore it cannot be termed as a proceeding under any of the pro....
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.... aforesaid entry, the same shall be taxable @ 5% as it has been clarified in Circular No. 153/09/2021-GST dated the 17th June, 2021. 4.10 Now we find that the Hon'ble High Court at Calcutta on 02.02.2021, in the matter of the applicant (WPA No.11423 of 2020) has observed that "After hearing the parties and considering the materials on record, it appears that the core issue in this petition relates to the dispute as to the classification of the entry under which the transaction made by the petitioner no.1 with the State of West Bengal will fall." 4.11 In the said order, the Hon'ble High Court has further observed as follows: According to the State GST authorities, the transaction can either fall under serial no.3A of Chapter 99 wherein the imposition of service tax is 'nil' or under entry 26 of Heading 9988 wherein the maximum levy is 5% comprising of 2.5% under SGST and 2.5% under CGST. The maximum of 5% has been realised from the petitioner no.1, according to the State authorities. The Central GST authorities, however, contend that the transaction comes within Entry No.26 under Heading 9988 of Notification No.11/2017 wherein imposition of GST has to be at t....