Applicant cannot be treated as fair price shop if not supplying to ration card holders: AAR

In re Provat Kumar Kundu (GST AAR West Bengal)

We now proceed to decide whether an agent can be regarded as a fair price shop or not. It appears that a fair price shop is licensed to sell public distribution commodities against ration documents (refer: Para 2.13) i.e., a fair price shop supplies S. K. Oil, along with other public distribution commodities, to the ration card holders only.

The applicant, on the other hand, procures S.K.Oil from the Oil Marketing Company (Indian Oil Corporation Limited, in the given case of the applicant) and supplies the same to the dealers who in turn supplies it to the consumers i.e., the ration card holders. The Sub-Divisional Controller, Food & Supplies, Ranaghat issues delivery orders to the applicant for supply of S.K.Oil, which inter alia contains (i) Name of the S.K.Oil Retailer and (ii) Name of the tagged FPS Dealer.

In the light of the aforesaid facts, we are of the view that the applicant cannot be regarded as a ^„fair price shop’. Since the entry serial number 11A of Notification No. 1498-FT dated 22.08.2017 [Central Notification No. 21/2017-Central Tax (Rate) dated 22.08.2017] specifically refers supply of services provided by Fair Price Shops (FPS) and the applicant doesn’t qualify to be a ^„fair price shop’, we refrain to discuss on applicability of the other aspects of the supply as referred to in the said entry i.e., (i) whether the applicant is supplying services to State Government or (ii) whether the applicant receives consideration in the form of commission or margin.

FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, WEST BENGAL

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