Advance Ruling disallowing Exemption for Loading, Unloading Services in Wheat Import Unsustainable

Naga Ltd. Vs Puducherry Authority for Advance Ruling (Madras High Court)

Madras High Court held that Advance Ruling holding that services of loading, unloading, packing etc., rendered in relation to the wheat imported is not entitled to exemption in terms of S.No.54(e) of Notification No.12/2017 is unsustainable.

Facts-

The petitioner sought for an Advance Ruling u/s. 97 of CGST Act, seeking clarification on whether the services relating to loading, unloading, packing, storage or warehousing rendered by 2^nd respondent in respect of wheat imported by the petitioner is exempted under S.No.54(e) of the Notification No.12/2017-CT dated 28.06.2017. The application filed by the petitioner was rejected by the Tamil Nadu Authority for Advance Ruling on the ground of lack of jurisdiction as only a supplier on whom incidence of tax lies can seek an Advance Ruling as per Section 95(a) of the CGST Act and the petitioner being a recipient of services cannot maintain the application u/s. 97 of CGST Act.

Thereafter, the 2^nd respondent i.e., supplier in the contract with the petitioner filed an application for Advance Ruling dated 02.01.2019 in relation to the applicability of the above Exemption Notification with regard to the services rendered to the petitioner. The 1^st respondent passed the impugned order ruling that the services are not entitled to exemption on the ground that the imported wheat with regard to which the services were rendered was not meant for the primary market but instead meant / intended to be used by the petitioner at its factory for further processing of the wheat imported into atta, maida and sooji. Aggrieved by the impugned order, the petitioner has filed the present writ petition.

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