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TMI Blog2013 (6) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... such Central Sales-tax is not levied on stock transfer of goods. Thus eligible for exemption from the payment of SAD under Notification No. 45/2005. X X X X Extracts X X X X X X X X Extracts X X X X ..... d May 16, 2005? The Revenue has contended as noted below: The Applicant has submitted a copy of Chart prepared by them and countersigned by Company Secretaries M/s. V.K. Chaudhary & Co. (CP No.4548) indicating 13.94% holdings by M/s. GE Pacific Pte. Ltd. Singapore and balance 86.06% holdings by M/s. GE Energy Europe BV Netherlands which are intermediate holding Companies of M/s. GE Holdings Luxembourg & Co. Sarl, Luxembourg. However as per Balance Sheet for 2010-11 as submitted by Applicant vide their letter dated 3.8.2012, the ultimate Holding Company is General Electric Company USA . In this regard the Applicant has not submitted any other documentary evidence. It appears that the copy of Memorandum and Articles of Association also do not have any provision in this regard. The Applicant has sought the clarification as to whether the stock transfer by the Applicant from the SEZ/FTWZ Unit to its DTA Unit would be eligible for exemption from the payment of SAD under Notification No. 45/2005 Cus dated May 16, 2005? In this regard it is stated that as per present practice, the benefit of said notification is being extended to all Units in FTWZ-Arshiya including their Clients subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 at SEEPZ, SEZ Mumbai, the committee has approved the proposal for setting up FTWZ Unit of the Applicant in FTWZ-Arshiya, Panvel. The Applicant has not submitted any evidence that the goods in question are not exempted from payment of CST/VAT. Further the goods mentioned in Application are not figuring in the goods mentioned in minutes of Approval Committee meeting as above. As per existing SEZ Act 2005 and SEZ Rules 2006, there is no specific provision for transfer of goods by way of stock transfer to a DTA Unit, however it is presumed that the same is covered under clearance to DTA Units. As far as a Free Trade and Warehousing Zone (FTWZ)( which is different from a SEZ, is concerned, the process of formulation of separate FTWZ rules is going on and all the issues related with trading and warehousing will be dealt with which are not dealt in the existing SEZ rules. Therefore, it appears that it would be a pre-mature stage for an interpretation by Authority for Advance Rulings as the exemption under notification 45/2005-cus itself is based on the interpretation of Act and Rules. It is also clear from the text of the notification "clearance from SEZ in accordance with SEZ Act 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplying with the proviso thereof. The notification 114/2003 has no co-relation with the present notification and the benefit of any notification is dependent on fulfillment of the conditions of the notification. Accordingly the respondent revenue has prayed for rejecting the application both on the grounds non-maintainability and also on merits. The applicant has filed its rebuttal to the grounds raised by the respondent. It has been inter-alia stated as follows: According to the department, the Applicant has filed a chart (certified by the Company Secretary) indicating that M/s. GE Pacific Pte Limited, Singapore (GE Singapore) and M/s. GE Energy Europe BV Netherlands (GE Netherlands) are intermediate holding companies of the Applicant and which in turn are wholly owned subsidiaries of M/s GE Holdings Luxembourg & Co. Sarl, Luxembourg ('GE Luxembourg'). However, the Balance sheet of the Applicant provides that GE Electric Company USA ('GE USA') is an ultimate holding company of the Applicant. According to the department, no other documentary evidence has been provided to prove the status of the Applicant. The Applicant submitted that GE USA is an ultimate holding company of al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the goods stock transferred by the Applicant from the FTWZ to its unit located in the DTA subject to the conditions mentioned in the Notification. The department has sought for an evidence to prove that the goods cleared by the Applicant are not exempted from the payment of VAT/CST or an undertaking that the goods cleared from the FTWZ unit are not exempted from the payment of VAT. The Applicant submits that in Para 4 to 6 and 12 to 15 of the Application, the Applicant has already submitted that the goods cleared from their FTWZ Unit are not exempted from the payment of VAT/CST neither under the SEZ Act nor under the VAT/CST laws. As already stated above, the parts and components of wind operated electricity generators (as listed above) are not exempted by the Maharashtra Government from the payment of the value added tax and are subject to VAT @ 5%. Further, the Maharashtra Government has not issued any order to exempt sale of goods stock transferred by the Applicant. Further, even the department could not produce any evidence to show that the goods cleared by the Applicant are exempted from the payment of VAT/CST. The Applicant submitted vide Para 4 to 6 of Annexure I an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2005 Cus dated May 16, 2005?" According the applicant the goods are sent by way of stock transfer from the SEZ unit to its DTA unit. The position is crystal clear that Notification No. 45/2005 Cus exempts all goods cleared from the SEZ and brought to any of the place in India from the SAD levied thereon under Section 3(5) of the Tariff Act. However, when such goods are sold in domestic tariff area and are exempted by the State Government from the payment of sales-tax or VAT such exemption is not available. The applicant makes a positive statement that such goods when sold in domestic tariff area are not exempted by the State Government from payment of sales-tax or VAT. It is pointed out that under serials 82 and 103 of the Schedule C of MAVT Act the parts and components of wind operated electricity generators are subject to tax @ 5%. It is conceded position that goods imported by the applicant are not exempted by the State Government from the payment of VAT. It is to be noted that in case of stock transfer two persons are not involved, as the stock transfer is between the units of same legal entity. It is not a "sale" as defined under Section 2(24) of the MAVT Act, The inevitab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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