In re Silgan Dispensing Systems India Private Limited (GST AAR Maharashtra)
The basic issue before us is “whether on transfer of “Machines & moulds (being “capital goods”), from the premises of the job-worker to another job-worker, which were originally received by said job-worker under the erstwhile Central Excise Act, 1944 will constitute as “supply” under GST.”
From the submissions made by the applicant it appears that neither they, nor the first principal manufacturer have carried forward the capital goods into the GST regime by following the procedure prescribed by Section 117 mentioned above. Hence the subject transaction of transferring the capital goods from the first job worker to the second job worker would be an independent and fresh transaction for which the same would be treated as supply of goods and will be liable to tax under the GST Laws.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING MAHARASHTRA
The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and MGST Act”] by SILGAN DISPENSING SYSTEMS INDIA PRIVATE LIMITED the applicant, seeking an advance ruling in respect of the following issue.
whether on transfer of machines & moulds (being ” capital goods”), from the premises of the job-worker to another job-worker, which were originally received by said job-worker under the erstwhile Central Excise Act, 1944 will constitute as “supply” under GST.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the “GST Act”.
02. FACTS AND CONTENTION – AS PER THE APPLICANT
The submissions, as reproduced verbatim, could be seen thus-
STATEMENT OF THE RELEVANT FACTS HAVING A BEARING ON THE QUESTIONS:
That originally machines & moulds were transferred to M/s. Shaily Engineering Plastics limited directly by the supplier of the principal manufacturer namely M/s. MWV India Pvt. Ltd.
That further in August 2017 M/s. MWV India Pvt. Ltd. sold part of business under Slump Sale vide BTA dt. 31.08.2016 to Aphrodite Packaging Solutions Pvt. Ltd including subject item of capital goods. Thereafter, the name of the company was changed to M/s. Silgan Dispensing Systems India Pvt. Ltd. form Aphrodite Packaging Solution Pvt. Ltd. Your reference kindly find attached herewith the Name Change Certificate dated. 13.11.2017 marked as ANNEXURE-I.
That accordingly, the present application is being filed by M/s. Silgan Dispensing Systems India Private Limited (hereinafter referred to as Appellant). That as informed above the principal manufacturer M/s. MWV India Pvt. Ltd. during the period 2012 had sent machines/moulds for job work to M/s. Shaily Engineering Plastics Limited (hereinafter referred to as “job-worker”). Brief description the goods sent is attached herewith marked as ANN-Il.
That subsequently, the Appellant now propose to transfer said machines/moulds under the GST regime from the premises of Shaily Engineering Plastics Limited to another job-worker namely M/s. Vasanth Tools Crafts Pvt. Ltd. (hereinafter referred to as “subsequent job-worker”)
Accordingly, the present Advance Ruling is sought in respect of GST application on said transfer of Machines/moulds to subsequent job-worker.
