Case Law Details
In re Seshadri Srikanth (The I.L.E.CO) (GST AAR Tamilnadu)
Applicability of a notification issued under the provisions of the Act. Whether supply of scientific and technical instruments, apparatus,
We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, submissions/Additional submissions made during personal hearing. We take on record, the email dated 07.12.2022 of the Applicant wherein he has requested for permission to withdraw the application as the said Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 has been rescinded and that they no longer require clarification. Their CFO, Shri. SriHari, also stated in the personal hearing held on 08.12.2022 that they had applied for ruling on doubt regarding the applicability of Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 which deals with the concessional rate of GST at 5% for supply of Scientific and technical instruments, apparatus and equipment to certain research institutions with certain conditions. But, since the said Notification itself has been rescinded w.e.f. 18.7.2022 vide Notification No. 1 1/2022-C.T (Rate) dated 13.7.2022, the Applicant requested for permission to withdraw the ARA application filed by them. Hence, as the Applicant has requested for withdrawal of their Advance Ruling Application, the application is treated as withdrawn without going into the merits or detailed facts of the case.
FULL TEXT OF THE ORDER OF AUTHORITY FOR ADVANCE RULING, TAMILNADU
1. M/s. The I.L.E Co, No. 59, MKN Road, Guindy, Chennai 32 is a proprietorship concern (hereinafter called as the ‘Applicant’) registered under GST Act with GSTIN 33AGQPS1310R1ZY. The Applicant has filed an application in Form GST ARA – 01 under section 97 of the Central Goods and services Tax and the Tamilnadu Goods and Services Tax Act, 2017, seeking Advance Ruling on the following question;
Whether supply of scientific and technical instruments, apparatus, equipment to their customer M/S Mahesh Value Products Pvt. Ltd. is eligible for concessional rate of GST @5% as per the Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 ?
2.0. The Applicant is registered under the provisions of GST law with GST1N: 33AAACZ2099M1ZW. Their principal place of business is located at Chennai.
2.1. The Applicant is basically a trader/wholesale distributor of scientific and technical instruments, apparatus, equipment proposing to supply scientific and technical instruments to customer having certificate from Department of Scientific and Industrial research in recognition of its In-house R&D Unit. The Applicant has stated that the Head of Institute of Department of Scientific and Industrial research of their customer is willing to provide at the time of supply, a certificate to the Applicant, certifying that the said goods are essential for research purposes and will be used for stated purpose only. Further, the goods supplied shall not be transferred or sold by the institution for a period of five years from the date of installation.
2.2. The Applicant had submitted, interalia, that as per Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 concessional rate of GST at 5% is applicable to certain research institutions on supply of specified goods like scientific and technical instruments. apparatus and equipments, if the specified conditions are met. The specified conditions are as under:
1) The institution is registered with the GOI in the Department of Scientific and research which—
(i) Produces, at the time of supply, a certificate to the supplier from the head of the institution, in each case, certifying that the said goods are essential for research purposes and will be used for stated purpose only;
(ii)……
2) The goods falling under (1) above shall not be transferred or sold by the institution for a period of five years from the date of installation.
2.3. Therefore, according to the Applicant:
i) their customer falls under the category -‘Research institution, other than a hospital’
ii) they are proposing to supply Scientific and technical instruments, apparatus, equipment which are eligible as per the specified Notification.
iii) their customer is having certificate from Department of Scientific and Industrial research in recognition of its In-house R&D Unit and that the Head of the Institute is willing to provide at the time of supply, a certificate to us certifying that the goods are essential for research purposes and will be used for stated purpose only; the goods supplied shall not be transferred or sold by the institution for a period of five years from the date of installation. Since all the conditions required as per the specified Notification were met, they can supply at a later date at the concessional rate of GST.
3.0 Personal hearing was held in digital platform on 17.08.2022. The Authorized Representative (AR) of the Applicant, Shri. Prabakar, Chartered Accountant, appeared for the hearing virtually The AR reiterated the submissions made in their application. In response to the query as to whether the application is for specific goods supplied to specific customer, the AR stated that application is for supply of specific goods to the institution registered as per Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 qualifying of concessional GST of 5%; that they already supplied goods under three invoices against Purchase order issued by the approved institution. The Applicant was asked to furnish the following documents.
1. Copy of invoice issued to customer
2. Copy of Purchase Order received from customer.
3. Copy of RC and other declaration mandated under concessional Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017
3.1 Subsequently, the Applicant submitted the following documents which were received on 22.08.2022.
i. Copy of DSIR Certificate
ii. Utilization certificate for the 3 supplies made
iii. Purchase order copies
iv. Invoice copies issued to customer.
3.2 Another Personal Hearing was held on 08.12.2022, as there was a change in the constitution of Members. In this Personal Hearing which was conducted virtually, Shri. Sril-Iari CFO of the Company (Authorised Representative) appeared for the hearing virtually and stated that they have applied for ruling on applicability of Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 ; as the said Notification has been rescinded in July 2022, they arc withdrawing the AAR application.
3.3 Shri. S. Srikanth, Proprietor of M/s Co had sent a email dated 07.12.2022 stating as follows:
“We had filed application for advance ruling regarding a query related to Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 which deals with concessional rate of GST at 5% for supply of Scientific and technical instruments, apparatus and equipment to certain research institutions. However, the said notification has been rescinded vide Notification No. 1 1/2022-C.T (Rate) dated 13.7.2022 with effect from 18/07/2022. Since, the relevant notification has been rescinded, we no longer require clarification for the same. Hence, we request you to allow us to withdraw the application.”
4.0 We have carefully examined the statement of facts, supporting documents filed by the Applicant along with application, submissions/Additional submissions made during personal hearing. We take on record, the email dated 07.12.2022 of the Applicant wherein he has requested for permission to withdraw the application as the said Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 has been rescinded and that they no longer require clarification. Their CFO, Shri. SriHari, also stated in the personal hearing held on 08.12.2022 that they had applied for ruling on doubt regarding the applicability of Notification No. 45/2017-Central Tax (Rate) dated 14.11.2017 which deals with the concessional rate of GST at 5% for supply of Scientific and technical instruments, apparatus and equipment to certain research institutions with certain conditions. But, since the said Notification itself has been rescinded w.e.f. 18.7.2022 vide Notification No. 1 1/2022-C.T (Rate) dated 13.7.2022, the Applicant requested for permission to withdraw the ARA application filed by them. Hence, as the Applicant has requested for withdrawal of their Advance Ruling Application, the application is treated as withdrawn without going into the merits or detailed facts of the case.
5.0 In view of the above, we rule as under:
RULING
The ARA Application SI.No.28/2022/ARA filed by the Applicant seeking Advance Ruling is disposed as withdrawn as per the request of the Applicant.
