TaxTMI 
TaxTMI 
2024 (10) TMI 433
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....f material facts or misrepresentation of facts. shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the 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 Kailash Vahan Private Limited S.No. 391A/1, 3-6, 393, Walajabad Sunguvarchatram Road, Kattavakkam, Kancheepuram, Tamil Nadu-631604, thereinafter called as 'the Applicant') is engaged in body building activity on JOB WORK Basis, on Chassis owned and supplied by the Customer / Principal (Who may be independent customer who buy chassis from OEM and send for body building or it can be by OEM i.e. Manufacturer of chassis who sends for body building activity), to make it as fully Body built vehicle for Truck / Tipper / Dumper application (Which are for carrying goods) and which body built vehicle" will also be owned by the principal....
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....ds under CH 8707, though such body is being built on chassis owned by customer is indeed a job work activity attracting levy of 18% as "Supply of Services, since the said complete body-built vehicle is also owned by the customer who also owns the chassis and hence, by this application before the Hon'ble Advance Ruling authority Applicant seeks ruling to treat the said body building activity as Supply of Services attracting 18% GST. 4.3. The applicant submits that the chassis manufacturer i.e OEM's also intend to place order on the applicant and have such body building activity of the chassis owned by them so that complete body built vehicle owned by them is supplied to them after the applicant carries out job work activity of body building on the chassis owned by them, but OEM's are insisting on seeking advance ruling before they send their chassis for such body building activity. That presently, applicant is only supplying body to such OEM's as supply of body under CH-8707 paying 28% GST, but once the present advance ruling application is decided, the applicant would like to build the body on the chassis supplied by OEM's as well, regarding the body building activity as job wor....
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....ses [8707] also attract 28% GST. In this context, it is mentioned that the services of bus body fabrication on job work basis attracts 18% GST on such service. Thus, fabrication of buses may involve the following two situations: a) Bus body builder builds a bus, working on the chassis owned by him and supplies the built-up bus to the customer, and charges the customer for the value of the bus. b) Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work). 12.3 In the above context, it is hereby clarified that in case as mentioned at Para 12.2(a) above, the supply made is that of bus, and accordingly supply would attract GST @28%. In the case as mentioned at Para 12.2(b) above, fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and 18% GST as applicable will be charged accordingly." 4.6. The applicant submitted that vide Notification No. 26/2019-Central Tax (Rate) dated 22nd November, 2019 and explanation provided states as - ....
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....s is based on the explanatory notes to the UNCPC 998881 MOTOR VEHICLE AND TRAILER MANUFACTURING SERVICES This service code includes motor vehicle manufacturing services, trailers and semi-trailer manufacturing services and motor vehicle parts and accessories manufacturing services Notification No. 11/2017-Central Tax Rate F.No. 354/117/2017-TRU Dated 28th June, 2017-Annexure giving Classification Annexure : Scheme of Classification of Services S.No. Chapter, Section, Heading or Group Service Code (Tariff) Service Description (1) (2) (3) (4) 534 Group 99888 Transport equipment manufacturing services 535 998881 Motor vehicle and trailer manufacturing services 4.9 The applicant submitted that the they are seeking advance ruling on the core issue as to whether the classification of body building activity on the chassis (meant for carrying goods) owned and provided by the principal (who is ether independent customer who buy the chassis from OEM and send for body building or Chassis sent by OEM i.e. manufacturer of chassis who sends for body building activity) could be regarded as 'job work" as "Supply of ....
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.... 28 (AAR. - GST - Pun.) 6. New Grand Auto Body Works Advance Ruling NO. KER/145/2021, decided on 1-8-2022-(2022) 1 CENTAX 291 (AAR. - - Ker.) 7. Sanghi Brothers (Indore) Private Limited - Order No. 06/2019, dated 3-5-2019-2019 (27) G.S.T.L 136 (AAR. - GST) 8. Automobile Corporation of Goa Limited Order NO. GOA/ GARR /1 of 2017-18/2018-19 1929 dtd. 21.08.2018 2018 (18) G.S.T.L. 359 (A.A.R. GST). 5.1 The applicant is under the administrative control of State. The concerned authorities of the Centre and State were addressed to report if there are any pending proceedings against the applicant on the issues raised by the applicant in the ARA application and for comments on the issues raised. 5.2 The concerned Central authority vide letter GEXCOM/TECH/GST/ 2315/2023-TECH dated 27.07.2023, informed there is no pending proceeding on the applicant under any of the provisions of the GST Act, 2017. Further the Central Authority stated that as per para 12 of CBIC Circular No. 52/26/2018-GST dated 9th August 2018, the CBIC had clarified the applicability of GST on job work services, in respect of "Body building activity carried out on chassis for Bus" and reques....
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....it is regarded as '"job work activity" and "Supply of Services", whether the correct applicable rate of GST, will be at 18 % (9 + 9) as applicable under Sri. No. 26 (ic) or will it be 18 % (9 + 9) as applicable under Srl. No. 26 (iv). Remarks: Not applicable. Qr. 3. Or will the activity or body building carried out on chassis belonging to and Supplied by Principal, is to be regarded as "Supply of goods" falling under 8707 - as "Bodies (including cabs), for the motor vehicles or headings 8701 to 8705", attracting % (CGST @ 14% + SGST @ 14%) as per Sl. No. 169 or Schedule-IV to the Notification No. 1/2017-C.T. dated 28-6-2017. Remarks: The taxpayer has doing supply of Goods falling under HSN code 8707 at 28% In respect of this question, submit that the Definition in section 2 (68) says 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. In this issue, the tax payer has doing body building on chassis supplied by the principal that means, the chassis is provided by the Principal, and the body is built on by the tax payer.....
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....The Applicant is before us seeking Advance ruling on the following questions; 1) Whether Applicant can consider the said body building activity as "job work activity and regard it as "Supply of Services" falling under SAC Code - 998881 "Motor vehicle and trailer manufacturing services "(as per Notification No. 11/2077-CT (Rate), dated 28.6.2017 Sl. No.535). 2) If it is regarded as "job Work activity" and "Supply of Services, whether the correct applicable rate of GST, will be at 18 % (9 +9) as applicable under Sri. No. 26 (ic) or will it be 18% (9+9) as applicable under Sl. No.26 (iv) 3) Or will the activity of body building carried out on Chassis belonging to and Supplied by Principal is to be regarded as Supply of goods failing under 8707 as "Bodies (including cabs), for the motor vehicles of headings 8701 to 8705" attracting 28 % (CGST@ 14% + SGST as per Sl. No. 169 of Schedule IV to the Notification No. 1/2017-CT (R) dt. 28.06.2017. 7.3. We find that the applicant submits that they are engaged in the field of fabrication and truck body building, wherein independent private customer, buy chassis from Chassis manufacturer (also referred to as OEM's),....
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....s supply of motor vehicle or job work' was one of the item covered under the circular. The relevant extract of the circular pertaining to bus body building is reproduced below; "12.1 Applicable GST rate for bus body building activity: Representations have been received seeking clarifications on GST rates on the activity of bus body building. The doubts have arisen on account of the fact that while GST applicable on job work services is 18%, the supply of motor vehicles attracts GST @ 28%. 12.2 Buses [motor vehicles for the transport of ten or more persons, including the driver] fall under headings 8702 and attract 28% GST. Further, chassis fitted with engines [8705] and whole bodies (including cabs) for buses [8707] also attract 28% GST. In this context, it is mentioned that the services of bus body fabrication on job work basis attracts 18% GST on such service. Thus, fabrication of buses may involve the following two situations: a) Bus body builder builds a bus, working on the chassis owned by him and supplies the built-up bus to the customer, and charges the customer for the value of the bus. b) Bus body builder builds body on chassis provided ....
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....he individual private customer who buys the chassis from OEM and provide the same to the applicant for body building is registered under GST or not, the provisions of law enumerated in the preceding paras make a clear demarcation between the supply of body building activity made to GST registered persons and the supply of body building activity made to GST I-in-registered persons. Whereas the bus body building on chassis owned by GST registered customer is Job work, the bus body building on chassis owned by un-registered customer does not amount to job work. As per the definition of Job Work provided under Section 2 (68) of CGST Act 2017, "job work" means any treatment or process undertaken by a person on goods belonging to another registered persons and the expression "job worker" shall be construed accordingly. Hence, in as much as the treatment or process is undertaken on the goods belonging to un-registered person the same does not qualify to be job work. 7.12. We find that the above position has also been clarified under Circular No. 126/45/2019-GST dated 22.11.2019 and the relevant text of the clarification is as follows: 4. In view of the above, it may be seen th....