Case Law Details
In re Sravanti Lahiri (GST AAR West Bengal)
1.1 At the outset, we would like to make it clear that the Central Goods and Services Tax Act, 2017(the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017(the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression „GST Act‟ would mean the CGST Act and the WBGST Act both.
1.2 The fact of the case as it appears from the submission made by the applicant in FORM GST ARA-01 is that the applicant intends to process sea food items (frozen) like prawn and fish in rented plant and will supply the items to industrial units for their consumption. According to the applicant, such supply of processed sea food in „industrial pack-not for retail sale‟ is exempted from payment of tax under the GST Act.
1.3 The applicant submits that supply of sea food (frozen), prawn & fish to industrial or institutional customers under rule 2 (buck) of Legal Metrology (Packed Commodities) rules, 2011 and not for retail sale as declared under provisions of Legal Metrology (Packed Commodities) Rules, 2011 (LMR). These packages are not “pre- packed and labelled” as defined under Notification 01/2017 Central Tax (Rate) dated 28.06.2017. The applicant contention is that supply of sea food items (frozen) like prawn and fish in industrial or institutional customers are exempted under GST as per notification no 7/2022 CTR dated 13/07/2022 read with Rule 3 of Legal Metrology (Packed Commodities) Rules, 2011 (LMR), as amended, and coupled with FAQ issued by CBIC vide F no.-190354/172/2022-TRU dated 17/07/2022.
1.4 In light of aforesaid circumstances, the applicant has filed this application under sub section (1) of section 97 of the GST Act and the rules made there under seeking an advance ruling as to whether the supply of processed sea food (frozen) like prawn and fish to industrial or institutional customers in „industrial pack-not for retail sale‟ is taxable or exempted.
1.5 As per sub-section (2) of section 97 of the GST Act, the question on which the advance ruling is sought under this Act, shall be in respect of, —
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or both;
(d) admissibility of input tax credit of tax paid or deemed to have been paid;
(e) determination of the liability to pay tax on any goods or services or both;
(f) whether applicant is required to be registered;
(g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term.
1.6 The question on which advance ruling is sought by the applicant is found to be covered under clause (e) of sub-section (2) of section 97 of the GST Act.
1.7 The officer from the revenue (CGST & CX) has expressed his view as under:
As per S.I. No 7 of FAQ issued vide F. No. 190354/172/2022 TRU dated 17.07.2022, the supply of packaged commodity for consumption by industrial consumer or institutional consumer is excluded from the purview of the Legal Metrology Act by virtue of rule 3(c) of chapter II of Legal Metrological (Package Commodities) Rules, 2011. Therefore, if supplied in such manner as to attract exclusion provided under the said rule 3(c), it will not be considered as pre packaged and labelled for the purposes of GST levy. Hence, if supply of the subject commodity meets the above given conditions, it will not be subjected to GST. In all other cases, it will attract 5% GST.
1.8 The applicant was allowed an opportunity for personal hearing scheduled to be heard on 11.12.2024. None appeared on the appointed day. Thereafter, two further opportunities, suo moto, have been allowed to the applicant to appear for personal hearing on 14.01.2025 and 18.02.2025 respectively which have duly been communicated to the applicant. However, the applicant has neither appeared on any of the appointed dates nor has filed any petition seeking further time. No reason for non-appearance, whatsoever, has also been shown by the applicant. We are therefore of the view that the applicant is not interested to appear before this authority and to produce relevant documents in support of her submission made in the application in FORM GST ARA-01 to obtain an advance ruling.
1.9 As a result, we proceed to dispose of the application ex parte. We are satisfied that the applicant has been provided sufficient opportunities of being heard. The officer concerned from the revenue, relying on the FAQ issued vide F. No. 190354/172/2022 TRU dated 17.07.2022, has opined that the goods in question is exempted subject to fulfilment of certain conditions. Otherwise it would attract tax @ 5%. However, in absence of any submission supported by documentary evidences on behalf of the applicant, we are unable to decide whether the applicant supplies the goods in such manner as to attract exclusion provided under the said rule 3(c) of the Legal Metrological (Package Commodities) Rules, 2011. We therefore refrain to pronounce any ruling.
