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2018 (6) TMI 621 - AAR - GSTAdmissibility of Advance Ruling Application - High Seas Sales - place of supply - Whether the authority is within jurisdiction to admit application especially on the issue of place of supply ? - Whether the issue is related to Customs or is related to Goods and Services Tax? - Held that - The applicant is well aware that the issue is related to place of supply - the question raised in the application for advance ruling pertains to the Customs domain and not to the Goods and Services Tax domain. This fact is bolstered by the proviso to sub-section (1) of Section 5 of the IGST Act, 2017. It is also observed that the Central Board of Excise and Customs has issued Circular No. 33/2017-Cus dated 01.08.2017, on the issue of High Sea Sales. Thus, the issue of High Sea Sale falls in the domain of Customs and not under the Goods and Services Tax. The application for advance ruling is therefore rejected without going into the merits of the case, on the issue of lack of jurisdiction, at the stage of admission.
Issues:
1. Jurisdiction of the Advance Ruling Authority to admit the application, especially regarding the 'place of supply.' 2. Determining whether the issue pertains to Customs or Goods and Services Tax. Jurisdiction Issue Analysis: The application for advance ruling by M/s. Pon Pure Chemical India Pvt. Ltd. raised concerns about the authority's jurisdiction to admit the application, particularly regarding the 'place of supply.' The Central Goods and Services Tax Act, 2017, and Gujarat Goods and Services Tax Act, 2017, empower the Advance Ruling Authority to decide specific issues outlined in Section 97(2) of the Acts. These issues include the classification of goods or services, applicability of notifications, determination of supply time and value, input tax credit admissibility, tax liability determination, registration necessity, and identifying supply actions. Notably, the Acts restrict the Authority to decide only on the earmarked issues under Section 97(2), limiting its jurisdiction. High Sea Sales Taxability Analysis: The taxability of High Sea Sales necessitates determining the occurrence of such sales before imported goods cross the Customs frontier. The definition of 'import of goods' under the Integrated Goods and Services Tax Act, 2017, involves bringing goods into India from outside. The determination of import and High Sea Sales hinges on factual inquiries regarding the goods' location and when they are considered to enter India. These determinations fall under the IGST Act, 2017, specifically Section 7 for 'place of supply.' However, as 'place of supply' is not covered under Section 97(2) of the Acts, the Authority lacks jurisdiction to address the raised questions. Customs vs. GST Domain Analysis: The applicant acknowledged that the issue at hand is related to the 'place of supply,' emphasizing its connection to the GST domain. However, it was found that the question raised pertains to the Customs domain rather than the Goods and Services Tax domain. The proviso to Section 5(1) of the IGST Act, 2017, highlights that integrated tax on imported goods follows Customs Tariff Act provisions. Additionally, Circular No. 33/2017-Cus by the Central Board of Excise and Customs addresses High Sea Sales, further indicating that such issues fall under Customs jurisdiction. Consequently, the application was rejected based on the lack of jurisdiction, without delving into the case's merits, at the admission stage. Conclusion: The Advance Ruling Authority rejected the application from M/s. Pon Pure Chemical India Private Limited under Section 98(2) of the CGST Act, 2017, and the GGST Act, 2017, due to the lack of jurisdiction, as the issues raised were deemed to fall within the Customs domain rather than the purview of Goods and Services Tax.
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