Case Law Details
In re Shilpa Medicare Limited (GST AAR Andhra Pradesh)
From the record we find that the business of the applicant i.e., Shilpa Medicare Limited of Andhra Pradesh unit, as a whole along with the capital assets is being transferred as going concern to Shilpa Medicare Limited of Karnataka Unit for a monetary consideration. The applicant had submitted no documentary evidence proving that the transaction is a going concern except for his categorical declaration in the application as such. Taking into consideration the facts as put forth by the applicant, the following series of observations are made to arrive at a conclusion finally.
Now we look into the issue whether this transaction would constitute a ‘supply’ primarily.
In the instant case the activity of the ‘transfer’ is made for a consideration, but neither in the course of the business nor for the furtherance of the business. A going concern is a onetime affair made where the business is sold including assets in entirety or an independent part thereof. Even though this transaction does not amount to a ‘supply’ as per definition, but qualified to be one under the scope of supply as it is backed by the term ‘includes’ in Section 7(1) of the CGST Act,2017. Thus, in the broadened interpretation of the term ‘includes’, this activity is brought under the scope of supply.
Now we determine whether ‘ongoing concern’ is to be treated as ‘supply of goods’ or ‘supply of services’.
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