Case Law Details
In re Ratan Projects & Engineering Co Private Limited (GST AAR West Bangal)
The Applicant is stated to be a manufacturer of cable tray, angel ladder tray etc, which are mainly used for electrical works. The Applicant sends steel structures for galvanising to a job worker along with furnace oil, zinc, nickel that are to be consumed in the galvanising process. He seeks a ruling whether dispatch of those consumable materials is to be treated as supply from the principal to the job worker if they are not returned within the time allowed under section 143(1)(a) of the GST Act. An advance ruling is admissible on this issue under section 97(2)(g) of the GST Act.
Held- Return of the galvanised goods to the Applicant satisfies the condition of receiving back the inputs in accordance with section 143(1 )(a) of the GST Act. As the goods like furnace oil, zinc etc – consumed in the process of galvanising – are inseparable from the galvanised goods, they should not be treated as supply in terms of section 143(3) of the GST Act, provided they have been entirely used up in the process of galvanising.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, WEST BANGAL
1. Admissibility of the Application
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