AI Drafter 
TaxTMI 
TaxTMI 
2022 (10) TMI 791
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....for fooding of live-stocks. The applicant has received order to manufacture Chaff Cutting Machines. In this industry such machines are sold as such and also parts of such machines are also sold separately. In case of huge contact of manufacturing of Chaff Cutter Machine. Such machines are manufactured in parts and such parts are delivered as and when manufactured and assembled in purchaser's location. For ease of transportation also various parts of Chaff Cutting Machine are supplied separately and then assembled in purchaser's location. 2. Proceedings Under Section 98 of CGST/PGST Act: In this regard personal hearings were held on 27.06.2019 and 11.02.2022 before the Advance Ruling Authority, Punjab. Non appeared on behalf of....
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....to save manufacturing cost and assembled in purchaser location? 4. What is the classification and rate of Goods and Services Tax for Chaff Cutter Machine, which is supplied in parts for ease of transportation and to save manufacturing cost and different invoice is issued for different parts but contract is for supplying full machine? 5. Whether parts of Chaff cutter machine can be delivered with delivery Challan if there is contract is for supplying full machine and final invoice can be issued on completion of supply of full machine? 4. ELIGIBILITY OF THE APPLICATION FOR ADVANCE RULING The Section 97(2) of the Central Goods and Services Tax Act, 2017, read with Section 97(2) of the Punjab Goods and Services Tax Act, ....
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....tinig machine is covered under the HSN 8433 and rate of Tax is 12%. 2. The Chaff cutting machine is used for cutting of Chaff, hay and other agriculture produces and same are used for fooding of livestocks. 3. In HSN 8433 grass cutting and hay cutting machine are classified and purpose of Chaff cutting machine are same as machines classified in HSN 8433. Therefore chaff cutting machine should be classified in HSN 8433.. View of Applicant on Question No 2: 1. The Parts of Chaff Cutting machine is covered under 8433 and rate of Tax is 12%. 2. The Parts of Chaff cutting machine are also supplied sepreatly if demanded by any coustmer the HSN 8433 and rate of Tax is 12%same is affixed with their exist....
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....ies in respect of which tax invoice shall be issued, with in such time and in such manner as may be prescribed: And section 31 sub section (4) reads as under: In case of continuous supply of goods, where successive statement of accounts or successive payments are involved, the invoice shall be issued before or at the time of each such statement is issued or, as the case may be, each such payment is received. And Proviso of sub section 2 of section 16 read as under: Provided that where the goods against an invoice are received in lots or installments, registered person shall be entitled to take credit upon receipt of the last lot or installment. By combined reading of section12, 31 and 16 It can b....
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....the Board, For consigner may issue delivery Challan, serially numbered not exceeding sixteen characters, in one or multiple series, In lieu of invoice at the time of removal of goods for transportation. 4. The supply is not of parts of machine but supply is of full machine therefore parts of machine can be delivered with delivery challan as per Rule 55. 6. SUBMISSIONS BY THE JURISDICTIONAL AUTHORITY: - The jurisdictional Assistant Commissioner CGST Division, Batala vide letter no. 1/560615/2022, dated 10.02.2012 furnished their comments wherein they inter alia submitted as under: - 1. What is the classification and rate of Goods and Services Tax for Chaff Cutter Machine, which is used in cutting of chaff, ha....
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....ifferent invoice is issued for different parts but contract is for supplying full machine?. The rate of GST for Chaff Cutting Machine is 12% falling under heading 8433. Further, rate of GST for parts of Chaff Cutting Machine is also 12%. The party's view that as per sub section 2 of section 16, the time of supply is at the time of delivery of full machine and not on delivery of parts of such machine or time of receipt of payments whichever is earlier as provided under section 12 and section 31 of the Act are not acceptable as proviso under sub section 2 of section 16 lays down the condition for availment of input tax credit on the receiver of goods and do not exempt outward supplier from payment of duty in respect of clearance ....