TaxTMI 
TaxTMI 
TaxTMI 
2022 (4) TMI 1134
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....licant') are registered under GST with GSTIN 33AADCV1880F1ZH. The applicant has sought Advance Ruling on the following questions: 1. Whether GST rate applicable for Job work service in relation to manufacture of Coconut Oil and Coconut De-oiled cake is 5% (CGST- 2.50%; SGST - 2.50%) as per Sl. No. 26 (1) and (g) of Notification No. 11/2017-CT(Rate) dated 28.06.2017 read with Notification No. 31/2017- CT (Rate) dated 13.10.2017. 2. Whether GST rate applicable for Job work service in relation to manufacture of Rice Bran Oil and De-oiled Rice Bran is 5% (CGST - 2.50%; SGST - 2.50%) as per Sl. No. 26 (1) and (g) of Notification No. 11/2017-CT(Rate) dated 28.06.2017 read with Notification No. 31/2017-CT (Rate) dated 13.10.2017. The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1. The applicant has stated that they are engaged in the manufacture of Rice Bran Oil, Coconut oil, De-oiled Rice Bran and also various animal feed ingredients like Copra Cake, Palm Kernel Cake, etc. In addition the....
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....e essential requirements spelt out in Sec 2 (68) of the CGST Act. Hence, they have reiterated that the activity undertaken by them amounts to Job work and for which conversion charges being charged, therefore such activity amounts to supply of services as per the provisions of the GST Law. 2.3 Further they have submitted that the materials received from the Principal Manufacturers by them were subject to certain processes and returned back to the Principal Manufacturer. They realize Job work charges on return of goods so manufactured by them as per Sec 143 of CGST Act. Hence, they are liable to pay GST only on the Job work charges and the rate of GST applicable on such Job work, being supply of services has to be determined accordingly, by virtue of relevant entries in Notification No. 11/2017-CT (Rate) dated 28.06.2017. The applicant has further stated that the Customer is sending Copra Cake to the applicant for extraction of Coconut Oil for a consideration in the form of Job Work after complying with the procedures laid down in Sec 143 of CGST Act. The applicant in the course of conversion of Copra Cake into Coconut Oil / Coconut De-oiled cake they have to naturally undergo cert....
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....an levy GST at 5% [CGST - 2.50%; SGST - 2.50%] on conversion charges / Job work charges levied on the Customers / Principal Manufacturers on such extraction of Coconut Oil in case of Intra-state supply whereas IGST - 5% in case of Inter-state supply under the Heading 998814 - Vegetable and animal oil and fat manufacturing services. They have further submitted that if the same Job work manufacturer is engaged in the manufacturing services on physical inputs owned by others and such services are in relation to manufacture of products falling under Chapter 23 of First Schedule to the Customs Tariff Act, 1975 except dog and cat food put up for retail sale falling under tariff item 23091000 of the said Chapter, then as per Sl. No. 26(g) of Notification No. 11/2017- CT (Rate) dated 28.06.2017 read with Notification No. 31/2017-CT (Rate) dated 13.10.2017, the applicable GST Rate for such job work services will be 5% [CGST- 2.50%; SGST -2.50%] with effect from 13th October 2017. They have relied on the ruling issued by Hon'ble Punjab Authority for Advance Ruling in M/s. Gupta Steel Udyog case [Order No. AAR/ GST/PB/007 dated 21.08.2019] and stated that the cited ruling is squarely appl....
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....t was addressed through the Email Address mentioned in the application to seek their willingness to participate in a virtual Personal Hearing in Digital media. The authorised representative, Shri. J. Balasubramanian, Chartered Accountant, appeared for the hearing virtually on 30.11.2021 and reiterated the written submissions made along with the application. He stated that the applicant undertakes conversion of Coconut Cake and Rice Bran into Coconut Oil, Rice Bran Oil and De-oiled cakes. The activity amounts to manufacture and they undertake the activity as job-work and therefore, the applicable rate is as per Si. No. 26 (f), (g) of Notification No. 11/2017 CT (rate) dated 28.06.2017 as amended. The authorised representative stated that they will furnish in detail the pending cases in respect of the intelligence of the State (i.e) copies of orders/Appeals filed; copies of work order/agreement for job work with the Principal; copies of invoices. 3.2 In furtherance, to the hearing dated 30.11.2021, the applicant vide their letter dated 11.12.2021 submitted that there is no specific proceeding pending before any other Authority under any provisions of the Act and to substantiate the ....
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....cided in any proceedings in the case of an applicant under any of the provisions of the GST Act. The Authorised Representative was, therefore, requested to state his reasoning as to why the Application for Advance Ruling should be entertained even though the proceedings are pending before the Appellate Deputy Commissioner (ST), GST, Madurai 3.4 The applicant vide their letter dated 11.02.2022 stated that there is no specific proceeding pending before any of the Adjudicating Authorities, Appellate Authorities or any other Authority under any provision of the Act and has also submitted the following documents: * Inward & Outward Delivery Challan copies for jobwork(sample copies). * FSSAI Certificate 4.1 The Central Jurisdictional Authority, who has the administrative Jurisdiction over the applicant submitted that in the case Of the applicant, the State authorities of SGST have already made investigations regarding the taxability of the products for which Advance Ruling is sought for. The DGGI, Madurai have also been investigating the taxability of the products and have issued Incident Report (IR) No. 15/2021-GST against the applicant. 4.2 The DGGI, Madurai vide their letter d....
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....ers in the form of extraction of Coconut oil from Copra Cake and extraction of Rice Bran Oil from Rice Bran and so on. For the purpose of the above job work, the Principal Manufacturer sends the copra cake to the Applicant and they process the same for extraction of coconut oil and De-oiled coconut cake. Similarly, they also process and extract Rice Bran Oil and De-oiled rice Bran on job work basis. The entire above job are done in compliance with the Job work procedures laid down in Section 143 of CGST/TNGST Acts. They have sought Advance Ruling on the following questions: i. Whether GST rate applicable for Job work service in relation to manufacture of Coconut Oil and Coconut De-oiled cake is 5% (CGST- 2.50% SGST - 2.50%) as per Sl. No. 26 (f) and (g) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 read with Notification No. 31/2017- CT (Rate) dated 13.10.2017. ii. Whether GST rate applicable for Job work service in relation to manufacture of Rice Bran Oil and De-oiled Rice Bran is 5% (CGST - 2.50%; SGST - 2.50%) as per Sl. No. 26 (f) and (g) of Notification No. 11/2017-CT(Rate) dated 28.06.2017 read with Notification No. 31/2017-CT (Rate) dated 13.10.2017. 6.2 The qu....
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....ities or any other Authority under any provisions of the Act. To support their claim, they enclosed the documents mentioned below: . a. Adjudication Order issued by the State Tax Officer, Madurai for the issues relating to the FY 2017-18, FY 2018-19 and FY 2019-20. b. Appeal filed by the Deputy Commissioner (ST) -- Intelligence, Madurai against the Order issued by the State Tax Officer for the FY 2017-18, FY 2018-19 and FY 2019-20. c. Intimation of Superintendent of CGST & Central Excise, North Range, Madurai with respect to blocking of Electronic, Credit Ledger for irregular availment of ITC d. Recording of Statement in Mahazar, by Directorate General of GST Intelligence, Madurai Regional Unit, Madurai. 7.2 The above documents were verified and found that as per authorization issued, the place of business of the applicant was inspected by the Joint Commissioner (ST) intelligence, Madurai. Further, on verification of the available records and scrutiny of returns of TRAN 1, GSTR 1, GSTR-2A and GSTR -3B for the year 2017-18, 2018-19, 2019-20 a notice was issued to the applicant. On receipt of notice, the applicant has replied that their place of business was inspected by Dep....