TaxTMI 
TaxTMI 
2024 (3) TMI 671
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.... ruling have changed. 4. In 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. KK Processors, No. 9, SIDCO Womens Industrial Estate, Karuppur, Salem-636 012 (hereinafter called as 'the Applicant') who are engaged in the business of Enameled Copper Wire, are registered under GST with GSTIN: 33AAVFK6262D1Z6. Now they are....
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....ng wire is used and the old wire is sold in scraps. The reason behind this is that reprocessed copper cannot be used in winding wire. • In order to overcome the above problem, they have planned to convert scrap into Anode and from Anode to Cathode and from Cathode to Rod and from Rod to wire and from wire to Enameled wire. Though this process amounts to just reworking or reprocessing the scrap and reusing it for winding, it has to be done in lot for cost effectiveness. So they have planned to first buy scraps, convert them in bulk, keep it in their stores, where the customers can get their old wires replaced with the reprocessed wires, which will help them to cut the cost and it will also help in saving natural resources. • The reason for collection of scrap as enamel wire is the purity of Copper, because after removing the upper covered enamel, the purity of copper remains at 99.90%, which can be directly used in manufacturing of Anode, from which other processes can be easily done. If copper scraps are brought from the market, the quality of the scrap will not be as good as scraps from Enamel Wire, and this we can save the cost for both the end user as w....
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....this connection, the applicant is dealing with both Goods and service, but the predominant supply is goods. It is seen form the description of the applicant that the nature of business is purely dealt with goods viz., manufacture of winding wire with copper scraps. The usage of mobile app will not alter the nature of business dealt by the applicant. The nature of business is different from Swiggy, Zomoto and others where they will not handle any goods but providing service through app by way of transport. (ii) But in this case the applicant is providing goods at the nearest centers (Hub) to the users through app. Therefore, the nature of business cannot be considered as pure service providers. Hence, the nature of supply is composite supply and the principal supply is Motors. (iii) It was also stated that no proceedings are pending in their office for adjudication with reference to the question raised by the application under Advance Ruling. 5. The Joint Commissioner (ST), Intelligence, Salem, has also remarked that no proceedings are pending in their jurisdiction. 6. The jurisdictional Central authority has not furnished any reply in this regard, and it is ....
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....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 jurisdictional tax officers. 9.2 From the submissions made at the time of filing the application, it is seen that the applicant had sought an advance ruling, on the following aspects, viz.,- 1) Whether the activity amounts to sale of goods or service 2) If it is Service, what is the Tax Structure 3) If it is sale of goods, what is the Tax Structure. 4) Does it come under composite supply. 5) If RCM is applicable on the purchase old Copper Scraps from the Motor Mechanics, then what is the Tax rate. 6) If RCM is applicable, can they take Input Tax Credit on the RCM paid. 7) Clarify the Tax Structure and the related procedures and documents to be followed for the movement of goods from Hub to Factory to Hub. 8) What is the HSN code / SAC code to be followed. 9.3 Prima facie, it is observed that the query at Sl. No. 7 which seeks clarity on the documents/procedures to be followed for the movement of goods from Hub to Factory and back to Hub doe....
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....t had further reiterated that they are not repairing the same copper, but are replacing it with already converted copper Enameled Wire from Scraps, whereby it becomes clear that the processing activity is not undertaken by the applicant on 'Job-work' basis by the applicant. 'Job Work' has been defined under Section 2(68) of the CGST Act, 2017, as below :- "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 10.4 Therefore, it becomes clear that the proposed business model of the applicant does not fall within the category of job-work', owing to the following reasons:- (i) the finished enameled copper wire that the customer receives is not made of the very same copper scrap given by the customer. (ii) the applicant do not undertake the activity on a job-work' basis, as the title of the copper scrap does not vest with the customer, once the same is handed over to the applicant, (iii) to be a job-worker, the applicant should carry out a treatment or process on the goods belonging to another registered person, whereas the cust....
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....ing wire of copper serves a specific purpose of insulation, as the enamel coating forms an electrical insulation film in order to provide thermal and chemical resistant properties. Therefore, we are of the opinion that enameled winding wire of copper which operates as an insulated electric conductor merits classification under chapter sub-heading 8544 11 10 of the GST Tariff which attracts IGST at 18%, or CGST at 9% plus SGST at 9%, as the rate of tax. 10.7 The applicant under query No. 4 had enquired whether the transaction in question comes under 'Composite Supply? It is seen that 'Composite Supply' has been defined under Section 2(30) of the CGST Act, as follows:- "(30) 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 ....
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....tax on Reverse; Charge Mechanism on the purchase of goods or service from unregistered person. However, exemption from such RCM liability was given if total value of such purchases (aggregate from all unregistered persons) in a day was Rs. 5000 or less, vide Notification No. 8/2017-Central Tax (Rate) dated 28.06.2017. Later from 13.10.2017 onwards, the exemption from RCM on purchase from unregistered persons was extended without the capping of Rs. 5000, vide Notification No. 38/2017-Central Tax (Rate) dated 13.10.2017. Effective w.e.f. 01.02.2019, the provisions of Section 9(4) of CGST Act, 2017 was entirely reworded through CGST (Amendment) Act, 2018, as follows,- "(4) The Government may, on the recommendations of the Council, by notification, specify a class of registered persons who shall, in respect of supply of specified categories of goods or services or both received from an unregistered supplier, pay the tax on reverse charge basis as the recipient of such supply of goods or services or both, and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to such supply of goods or services or both." ....