AI Drafter - (New and Powerful) 
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter. 
TaxTMI 
TaxTMI 
2023 (1) TMI 976
X X X X Extracts X X X X
X X X X Extracts X X X X
....s or circumstances supporting the original advance ruling have changed. 4. Advance Ruling obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab-initio in accordance with Section 104 of the Act. 5. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. 1. M/s. Zuha Leather Private Limited, No. 22, V.V. Koil Street, Periamet, Chennai 600 003. (hereinafter called as the 'Applicant') is registered under GST Acts with GSTIN 33AAACZ2099M1ZW. The Applicant has filed an application in Form GST ARA - 01 under section 97 of the Central Goods and services Tax and the Tamilnadu Goods and Services Tax Act, 2017, seeking advance ruling on the following question; Whether the activity of tanning, with chemical consumpt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....54/150/2019-TRU], dated 22-11-2019 which clarified and distinguished job work service pertaining to goods of registered and unregistered persons. 3.1 Therefore, though the Applicant is clear that the activity falls under job work service, ambiguity arises due to transfer chemicals in the contract of tanning, which has significant value (being 60% to 70%) in the contract price and further with higher rate of tariff under GST. Hence, Applicant requires clarification whether the activity of the Applicant falls within the definition of Job work under section 2(68) of CGST Act. 3.2 The Applicant had furnished the following rulings in their support: • In the case of M/s. CCE, MUMBAI-V_v. SHAKTI INSULATED WIRES LTD. [2010] 1 taxmann.com 883 (Mumbai - CESTAT) it was held that it was job work even if job worker puts own inputs and later recovered the cost of inputs from principal manufacturer. • In the case of M/s Madura Coats Ltd. v. Collector of Central Excise (1980 E.L.T.582) [Cal HC], it was held that "a work does not cease to be a job work simply because the job worker supplies some additional articles which do not constitute a substantial part of the ma....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... which was conducted virtually, the AR reiterated the submissions already made and explained the process briefly. On being queried whether any SCN has been issued and the documents accompanying the leathers transferred by the Principal to the Applicant, the Applicant submitted copies of e-way bill (e-way bill no. 761146585647, 771146583082, 571188324748) showing the transfer of leather from Principal to the Applicant and e-way bill (e-way bill no. 511188533010, 591188947004, 551189201808, 531192199198) showing the clearance of finished leather back to the Principal. 4.3. Flow chart for Processing submitted by the Applicant is shown hereunder: ZUHA LEATHER PVT.LTD., VANIYAMBADI. PROCESS FLOW DIAGRAM FOR GARMENTS LEATHER (COW WET BLUE TO FINISH -JOB WORK) ZLPL/PFD/01/0 Rev:02 01.06.2020 1 WET BLUE LEATHER ARRIVAL ¯ 2 ASSORTMENT ¯ 3 STORAGE JOB WORK ORDER>JOB CARD->ISSUING-->PROCESS ROUTE CARD ¯ 4 SAMMYING ¯ 5 WET SHAVING ¯ 6 TRIMMING ¯ 7 DYEING ¯ 8 SETTING ¯ 9 REVERSIBLE SETTING ¯ 10 VACCUM ¯ 11 HOOKING ¯ 12 MOLISA STACKING ¯ ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... person and the expression "job worker" shall be construed accordingly". 6.3 The basic issue before this authority is whether the activity or process carried out by the applicant on the goods received from its client, amounts to job work or it is supply of services (being activity of tanning) and goods (being tanning chemicals transferred in the course of tanning) to be regarded as composite supply. 6.4 As per Section 2(30) of CGST Act, 'Composite Supply' is defined hereunder: The Applicant has further contented that; "Composite Supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Illustration: Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply;" 6.5 In the instant case, on perusal of the invoices of job work and flowchart of the process submitted by the Applicant, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ufacturing services on physical inputs (goods) owned by other are as under: HEADING 9988 : MANUFACTURING SERVICES ON PHYSICAL INPUTS (GOODS) OWNED BY OTHERS : Chapter, Section, Heading, Group or Service Code (Tariff) Description of Goods CGST SGST/UTGST IGST Condition (1) (2) (3) (4) (5) (6) Heading 9988 (Manufacturing services on physical inputs (goods) owned by others) (i) Services by way of job work in relation to- (a) ............... (b) ............... (c) ............... (da) ............... (e) processing of hides, skins and leather falling under Chapter 41 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); (ea) manufacture of leather goods or footwear falling under Chapter 42 or 64 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) respectively; (f) ............... (g) ............... (h) ............... (i) ............... 2.5 2.5 5 - (ia) to (ic) 6 6 12 (id) Services by way of job work other than (i), (ia), (ib) and (ic) above; (ii) to (iia) &nb....