2023 (9) TMI 124 - AAR - GST

Scope of Advance Ruling application - Exemption under N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 - Composite supply to principal supply of job-work - additional consideration received by the applicant for transporting food grains in the hill areas of Darjeeling - HELD THAT - In spite of allowing sufficient opportunities of being heard, the applicant is not interested to obtain an advance ruling on the issues raised by him vide application made in FORM GST ARA-01. Moreover, in absence of relevant records which are required to be examined to decide the issue involved in the instant case, this authority is not in a position to give an advance ruling. The application is thus disposed of without pronouncement of any ruling.

Summary

Issues involved: The judgment deals with the issues of whether the additional consideration received by the applicant for transporting food grains in the hill areas of Darjeeling would be considered as a 'composite supply' to the principal supply of job work service u/s Section 8 of the GST Act and whether exemption under Serial. No. 3A of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 would be available to the applicant, and whether the additional consideration received by the applicant for transporting food grains in the hill areas of Darjeeling would be considered as a separate supply of transportation service and in that event, whether exemption under Serial. No. 18 or under Serial no. 21 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 would be available to the applicant.

Summary of Judgment:

1. Background and Applicant's Submission:
The applicant, engaged in providing job work service of crushing wheat for the State Government, sought an advance ruling on whether the additional consideration for transporting food grains in Darjeeling constitutes a composite supply or a separate transportation service. The applicant contended that the transportation charges were part of the composite supply and thus eligible for exemption under specific notifications.

2. Applicant's Argument on Composite Supply:
The applicant argued that the transportation charges were included in the 'Transportation & Handling Charges,' forming part of the principal job work service. They claimed that the value of the transportation component was below 25% as per the relevant notification, making them eligible for exemption under Serial. No. 3A.

3. Applicant's Argument on Separate Supply:
Alternatively, the applicant argued that if the transportation charges were considered a separate supply, they should be exempt under Serial. No. 18 as they did not operate as a goods transport agency. Furthermore, they asserted eligibility for exemption under Serial. No. 21 for transportation of food grains as specified in the notification.

4. Hearing and Disposition:
Despite multiple opportunities provided for a hearing, the applicant failed to appear, leading to the disposal of the application without a ruling. The Authority emphasized the importance of relevant records for a proper decision but expressed inability to proceed due to the lack of participation from the applicant.

5. Conclusion:
The judgment highlights the significance of active participation in proceedings and the necessity of relevant documentation for a comprehensive ruling. In this case, the application was disposed of without a ruling due to the applicant's non-appearance and the absence of essential records for examination.