TaxTMI 
TaxTMI 
2024 (3) TMI 43
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....n terms of Section 104 of the Act, where the Authority finds that advance ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1) of Section 101 has been obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the applicant as if such ruling had never been made. 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. M/s. Oerlikon Friction Systems (India) Private Limited, KI 7 & K 18, SIPCOT Industrial Park, Thandalam, Sripcrumbudur Taluk, Irungattukottai, Tamil Nadu, Kancheepuram 602117 (hereinafter called as 'the Applicant') are registered under the GST Acts with GSTIN: 33AAACE3968....
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....aken by them amounts to supply of services in terms of Sl. No. 3 of Schedule II of the CGST Act, which states that the activity of treatment or process which is applied to another person's goods is treated as a supply of services. * Further, Explanatory notes under Chapter 99 for supply of services provides description of services and corresponding classification; Heading 9988 covers manufacturing services on physical inputs owned by others and further at the six digit level, their activity fits into the description given under 998873 * Job work is defined under Section 2(68) of the CGST Act, 2017 and their activity is as per the definition; Further CBIC vide circular No. 38/12/2018-GST dated 26.03.2018 has clarified that job worker in addition to the goods received from the principal can also use his own goods for providing the services of job work, and hence usage of carbon strips, imported by them, on the metal component sent by the customer will not alter the nature of the services. * They rely on the ruling of the Advance Authority of Kerala in the case of Estcra Polyers - 209 (23) GSTL 481 (AAR-GST), which is in their favour. * There are two supplies involved in t....
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....n 02.11.2023. Shri Sunil Kumar, Consultant, who is the Authorized Representative of the Applicant appeared for the hearing and he reiterated the submissions made in their application. The Members requested the AR to submit sample copy of agreement executed by them with their customers and also a writeup about the end-use of the product sent back by the Applicant. Further to this, the Applicant vide their letter dated 09.1 1.2023 submitted technical write-up about the activity carried out by them for tier I manufacturers and also the stated that they are tier II manufacturers for M/s Tata Motors, M/s Mahindra & Mahindra and M/s Toyota Motors. The Applicant vide their email dated 17.11.2023 stated that they do not have any job work agreement but have only purchase order and sales order, wherein terms and conditions are mentioned. DISCUSSION AND FINDINGS: 5.1. We have carefully considered the submissions made by the Applicant in their application, submissions made during the personal hearing and the comments furnished by the Centre and State Tax jurisdictional Officers. 5.2 In terms of Section 97(2) of the CGST/TNGST Act, questions on which advance ruling is sought under the Act, f....
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....ing covers manufacturing services, the output is not owned by the unit providing this service. Therefore, the value of the services in this Heading is based on the service fee paid, not the value of the goods manufactured. Thus, we find that the subject activity undertaken by the Applicant is a supply of service falling under SAC 9988. 5.4 The next point for consideration is whether the said activity would fall under the term job work'. This term is defined under Section 2(68) of CGST Act, 2017, which states that - "job work' means any treatment or process undertaken by a person on goods belonging to another registered person and the expression job worker' shall be construed accordingly." From the above, it is clearly evident that the activity undertaken by the Applicant is a job work, as the Synchronizer core belongs to their customer, throughout the entire process, as stated by them. 5.5. Further, CBIC vide Circular No. 38/12/2018-GST dated 26.03.2018, has issued clarification on issues related to job work, wherein it was stated that- 5. Scope/ ambit of job work: Doubts have been raised on the scope of job work and whether any inputs, other than the goods pr....
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.... customer and the resultant product, after the job work being done, is sent back by the Applicant to their customers. The carbon strips are not sent separately under an invoice to treat that as a supply of goods. 6.2 On perusal of the copy of the invoices submitted by the Applicant, we find that the Applicant has mentioned in the item description as 'Synchronizer ring' falling under CTH 8708 and a taxable value mentioned therein. The mere look of the tax invoice gives an impression as supply of goods. However, it was explained by the Applicant that the value includes the value of the carbon strips, job charges and a profit. Also, from the submissions made by the Applicant, specifically mentioning that the question of supply of Synchronizer Core or 'Carbon friction lining bonded Synchronizer Ring' by the Applicant to the customer docs not arise, makes it clear that they are doing only job work on the goods belonging to their customer. We find that this claim of the Applicant is well supported by their Sales order and Purchase invoice. Thus, we find that it is not correct to mention in the item description as 'Synchronizer Ring' and the relevant CTH in their ....