TaxTMI 
TaxTMI 
2025 (7) TMI 385
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....rk model, wherein the LNG supplied by the applicant is worked upon by PLL & thereafter transferred back to the applicant in RLNG form for which the applicant pays the required charges. 4. PLL had earlier sought an advance ruling before GAAR [Gujarat Authority for Advance Ruling] who vide its order No. GUJ/GAAR/R/40/2021 dated 11.8.2021, held that PLL's activity of re-gasification of LNG, owned by its GST registered customers amounts to rendering of job work & merits to be covered under serial No. 26(id) of heading 9988 of notification No. 11/2017-CT(Rate) dated 28.6.2017, as amended & is liable to CGST @ 6%. 5. The applicant has also entered into an agreement [Agreement for subletting dated 18.11.2021] with M/s GAIL (India) Ltd [for short -GAIL]. In terms of this agreement viz • the responsibility of re-gasification is on the applicant in respect of the LNG owned by GAIL; • the re-gasification shall be undertaken by PLL at their facility, on the direction of the applicant; • it shall be the obligation of GAIL to deliver LNG to PLL at the custody transfer point; • the applicant's obligation inter alia includes causing PLL to ....
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....(278) ELT 581 SC. • that they would also like to rely on the case of Ratan Melting & Wire Industries 2008 (12) STR 416 SC; • they would like to rely on their own ruling 2018 (19) GSTL 119, and the ruling of Maharashtra AAAR in the case of JSW Energy Ltd Order No. MAH/AAAR/SS-RJ/01A/19-20 dtd 13.1.2020. 7. In view of the foregoing, the applicant has raised the following questions seeking a ruling, viz [i] Whether the applicant's activity of providing service of regasification of LNG owned by GAIL/others would amount to rendering of service by way of job work within the meaning of section 2(68) of CGST Act, 2017 & GGST? [ii] If yes, then whether the said service of re-gasification by way of job work be classifiable under serial no. 26(id) of heading no. 9988 of notification No. 11/2017-CT (R) dated 28.6.2017 as amended & be chargeable to GST @ 12%? 8. Personal hearing was granted on 03.01.2025 and 8.4.2025 wherein Shri Onkar Sharma, appeared on behalf of the applicant and reiterated the facts as stated in the application. He submitted additional submissions comprising relevant provisions, copies of notification No. 11/2017-CT(Rate), G....
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....n diamonds,] falling under chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975);] (d) Printing of books (including Braille books), journals & periodicals; [(da) printing of all goods falling under chapter 48 or 49 which attract CGST @ 2.5% or Nil;] (e) and (ea) .... (f) all food & food products falling under chapters 1 to 22 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); (g) all products falling under chapter 23 in the first schedule to the Customs Tariff Act, 1975 (51 of 1975), except dog and cat food put up for retail sale falling under tariff item 23091000 of the said chapter; (h) ... (i) Manufacture of handicraft goods. Explanation.-The expression 'handicraft goods' shall have the same meaning as assigned to it in notification No. 32/2017-CT, dated 15.9.2017, published in the Gazette of India, extraordinary, Part II, section 3. 2.5 - (ia) Services by way of job work in relation to- (a) manufacture of umbrella; (b) printing of all goods falling under chapter 48 or 49 which attract CGST @ 6% 6 - ....
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....Oil and Natural Gas Corporation Ltd, GAIL (India) Ltd and BPCL to undertake, inter alia import of LNG into India, development of facilities for receiving, regasification & sale of regasified LNG to consumers in India and to regasify LNG imported by any other person into India. 3. OBLIGATIONS 3.1 BPCL's Obligation (a) From the commencement date and during the term BPCL shall deliver LNG to PLL at the Custody Transfer point, receive RLNG at the delivery point & pay for regasification or for its Pay for if not used Obligation, in accordance with and subject to the terms and condition of this agreement. (b) For the avoidance of doubt, BPCL agrees and undertakes that in addition to the payment of the fixed facility charges & regasification charges, BPCL shall make necessary arrangements at its own cost & expense, for the delivery of LNG from the Loading port to the Unloading port & for evacuation of RING from the delivery point. (c) ... (d) Parties agree that BPCL may, with prior written consent of PLL, anytime prior to finalization of Annual Programme in accordance with Article 5.3.1(c), nominate any of its affiliates to use the reg....
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....e applicant is before us seeking a ruling as to whether their activity of providing service of regasification of LNG owned by GAIL/others would amount to rendering of service by way of job work within the meaning of section 2(68) of CGST Act, 2017. The applicant states that what they are undertaking is a back-to-back job work arrangement wherein they ensure that PLL being their job worker, undertakes re-gasification activity for GAIL. 15. The other averments made by the applicant is that they are responsible for ensuring that PLL undertakes the job work; that GAIL pays applicant job work charges; that the title of LNG and RLNG always remain with GAIL & never gets transferred to BPCL or PLL; that the applicant raises tax invoices, and therefore the service rendered, should fall within the ambit of 'job work' as defined supra. 16. The applicant has also relied upon two circulars. We find that circular dated 26.3.2018 has clarified on issues related to job work. The relevant extract of the circular is reproduced below for ease of reference viz Circular No. 38/12/2008 dated 26.3.2018 [relevant extracts] 2. As per clause (68) of section 2 of the CGST Act, 2017, "job wo....
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....the quantity and description of goods being sent. The same process may be repeated for subsequent movement of the goods to other job workers. 17. The next clarification vide its circular No. 126/45/2019-GST dated 22.11.2019, relied upon is regarding scope of notification entry at item (id) related to 'job work', under heading 9988 of notification No. 11/2017-CT (Rate) dated 28.6.2017. The relevant extracts of which are as under: 4. In view of the above, it may be seen that there is a clear demarcation between scope of the entries at item (id) and item (iv) under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017. Entry at item (id) covers only job work services as defined in section 2 (68) of CGST Act, 2017, that is, services by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, the entry at item (iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods) which are owned by persons other than those registered under the CGST Act. 18. Now in terms of section 2(68) of the CGS....