TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 385
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....pplicant 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 receive LNG at the custody transfer point, undertake re-gasification for GAIL & tender deli....
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....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), GRI, circulars dated 26.3.2018 and 22.11.2019 and further also relied upon the following * Dharma LNG Terminal P Ltd 2023 (12) TMI 889 (AAR-Odi). * Vac Met Corporation Ltd 1985 (8) TMI 71 (SC). * Alisha Gruh Udhyog 2021 (12) TMI 165 AAAG Guj. * JSW Energy Ltd 2020 (6) TMI 704 (AAAR-Mah). ....
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....oms 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 - (ib) Services by way of job work in relation to diamonds falling under chapter 71 in the first schedule to CTA '75 0.75 - (ic) Services by way of job work in relation to bus body building; Explanation.-For the purposes of this entry, the term 'bus body building' shall include building a body on chassis of any vehicle falling under chapter 87 in the first schedule to Customs Tariff Act, 1975;] 9 - (ica) Services by way of job....
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....d 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 regasification services to be provided by PLL, for a specified period of time & for a specified quantity during a contract year, at its sole risk and expense. Provided that, notwithstanding the allowance of use of Regasification Services by its Affiliate, BPCL shall at all times remain liable to PLL for all its obligation under this Agreement and shall indemnify PLL against any and all claims, losses & expenses arising from the use of Regasification services by BPCL's affiliate. 12. PRICE 12.2 Fixed Facility Charge Fixed facility charges shall mean the charges payable by BPCL for capacity reservation in PLL's fac....
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....CL 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 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. The registered person on whose goods (inputs or capital goods) job work is performed is called the "Principal" for the purposes of section 143 of the CGST Act. The said section which encapsulates the provisions related to job work, provides that the registered principal may, without payment of tax, send inputs or capital goods to a job worker for job work and, if required, from there subsequently to another job worker and so on. Subsequently, on completion of the job work (by the last job worker), the principal shall either bri....
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....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 CGST Act, 2017, an activity can be held to be within the ambit of "job work" if [a] treatment/process has to be undertaken and [b] the goods should be belonging to another registered person. What therefore, needs to be verified is whether the applicant fulfils these two conditions. While examining this, what is significant is that * BPCL shall pay to PLL for regasification or for its pay for if not used obligation; * that in addition to payment of the fixed facility charges & regasification charges BPCL shall make necessary arrangements . * that BPCL may with prior written consent of PLL anytime prior to finalization of the annual program in accordance with Article 5.3.1(c), nominate any of its Affiliates to use the Regasi....