Case Law Details
In re Kolhapur Foundry and Engineering Cluster (GST AAR Maharashtra)
The question raised by the applicant is ‘The used waste sand which is of the value NIL Refer separate Valuation Certificate by Engineer) will have any impact on Valuation?.’
The jurisdictional officer has submitted that, as regards the second question, value of inward supply does not have direct bearing on the outward value in this case, since the applicant has admitted that the inward supply of the waste sand is at Rs. Nil. As such, there is no impact of inward value on the outward supply. The jurisdictional officer has also submitted that Socio-Ecological parameters in the said case is already taken into account by the system, as 83% of setting cost is born by Central and’ State governments together and hence, may not cause any impact on taxation.
The applicant seeks to know whether the consideration of ‘NIL’ value for the input i.e. used sand, will have any impact on valuation and whether there understanding to consider the ‘Nil’ value of the used waste sand in valuation (no impact) is appropriate. It appears, from the submissions made by the applicant that, the value of input is considered by the applicant to be Nil is probably because they are not paying consideration for receipt of such used sand. We are of the opinion that in cases like in the subject matter, the value of inward supply will always have a bearing on the value of outward supply. In the subject case, the applicant has themselves admitted that the value of input used sand is “NIL” and the same has been accepted by the jurisdictional office also and not disputed.
To surmise, it appears from the applicant’s submissions that their rate of Rs. 2.50 per kg. on output supply of sand has taken into account the valuation of input sand at ‘NIL’ value. In normal situations, in the subject case, if there is a price attached to the input supply of used sand, then it may have a proportionate impact on the rate of outward supply of sand.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
