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2023 (12) TMI 660 - AAR - GSTExemption from CGST - recognized Unit Run Canteen - goods sold to authorized customers - similar exemption available under State GST also or not - eligibility to claim refund of CGST and SGST paid on goods purchased till date. Whether the applicant being a recognized Unit Run Canteen be exempted from levying CGST on goods sold by it to authorized customers? - N/N. 6/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT - N/N. 6/2017-Central Tax (Rate) dated 28.06.2017 which clearly specifies that the CSD i.e. Canteen Stores Department, Unit Run Canteens of the CSD and the authorized customers of CSD are under the Ministry of Defence, Government of India. It is an admitted fact that the applicant is a subsidiary canteen of the Central Police Force Canteen System (CPFCS), under the Ministry of Home Affairs, Government of India, formed in terms of permission granted vide letter No. DA-VII/SC-CP/2013 dated 28.11.2013. Further, para 4(h) of the said letter specifies that VAT as applicable in conformity with orders of State Government will be paid unless specifically exempted by notification of concerned State Government . Furthermore, the Central Police Force Canteen System (CPFCS) does not mention/use the terms 'Canteen Stores Department, Unit Run Canteens of the CSD and the authorized customers of CSD' in the aforesaid letter dated 28.11.2013. Thus the applicant is not covered under the Unit Run Canteen as they are a subsidiary canteen of CPF canteen under the Ministry of Home Affairs. Therefore the applicant is not entitled to claim the exemption provided under the Notification No. 7/2017-Central Tax (Rate) dated 28.06.2017. Whether similar exemption can be availed under State GST also? - HELD THAT - The applicant is not entitled for exemption provided under the Notification No. 7/2017-Central Tax (Rate) dated 28.06.2017. Since similar exemptions are issued by State GST on subject issues, it is found that the applicant is not entitled for any exemption even under the Notification issued by the State GST. Is the applicant eligible to claim refund of CGST and SGST paid by it on goods purchased till date? - HELD THAT - It is evident from above that the Notification No. 6/2017-Central Tax(Rate) dated 28.06.2017, specifies that the Canteen Stores Department under the Ministry of Defence, as a person who shall be entitled to claim refund of fifty percent of the applicable central tax paid by it on all inward supplies of goods received by it for the purpose of subsequent supply of such goods to the Unit Run canteens of the CSD or to the authorized customers - In view of the foregoing it is very clear that the notification is applicable only to the Canteen Stores Department under the Ministry of Defence, and not to any other Canteen Stores. In the instant case, the applicant canteen is formed under the orders of Ministry of Home Affairs and thus the notification No. 6/2017-Central Tax (Rate) dated 28.06.2017 is not applicable to the applicant and thereby they are not entitled to claim the benefit of the said notification.
Issues involved:
The judgment involves determining whether the applicant, a subsidiary canteen of the Central Police Force Canteen System, is exempt from levying CGST on goods sold to authorized customers, whether a similar exemption can be availed under State GST, and if the applicant is eligible to claim a refund of CGST and SGST paid on goods purchased. Exemption from CGST: The applicant claimed to be a recognized Unit Run Canteen and sought exemption from levying CGST on goods sold to authorized customers. The Notification No. 07/2017-Central Tax (Rate) dated 28.06.2017 exempts supplies of goods by the Canteen Stores Department to Unit Run Canteens and authorized customers. However, the applicant is not covered under the Unit Run Canteen as they are a subsidiary canteen of CPF canteen under the Ministry of Home Affairs, not the Ministry of Defence, and therefore not entitled to the exemption provided. Exemption under State GST: Since the applicant is not entitled to the exemption under CGST, a similar exemption under State GST is also not applicable to them. The applicant does not meet the criteria for exemption provided in the Notification No. 07/2017-Central Tax (Rate) dated 28.06.2017. Refund of CGST and SGST: The applicant sought a ruling on the eligibility to claim a refund of CGST and SGST paid on goods purchased. However, the Notification No. 6/2017-Central Tax (Rate) dated 28.06.2017 specifies that the refund of fifty percent of applicable central tax paid is only applicable to the Canteen Stores Department under the Ministry of Defence, not to other canteens. As the applicant is formed under the Ministry of Home Affairs, they are not entitled to claim the refund under this notification. This ruling concludes that the applicant is not covered under Unit Run Canteen, not entitled to any similar exemption under State GST, and not eligible to claim a refund of CGST and SGST paid on goods purchased till date.
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