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TMI Blog2018 (8) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... ad with rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01. They also enclosed copy of challan for Rs. 5,000/- bearing CIN number SBIN18012900060485 dated 11.01.2018. 2. The Applicant is engaged in supply of non-alcoholic beverages to SEZ units using coffee vending machines and undertakes the following types of transactions: (a) The applicant installs beverage vending machines inside SEZ premises, prepares beverages using the vending machines & its ingredients, supplies to SEZ units which are consumed by the employees of SEZ units and charge the SEZ units based on number of cups of beverages supplied. (Cuppage billing) (b) The applicant installs beverage vending machines inside SEZ premises, supplies beverage ingredients ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its using coffee vending machines is in the nature of zero rated supply as defined under Section 16 of the IGST Act 2017 ?" PERSONAL HEARING:/PROCEEDINGS HELD ON 30.01.2018. 3. The Applicant submitted power of attorney, issued by Sri. Jayraj C Hubli, Director, M/s Coffee Day Global Ltd., authorizing Sri S Vishnumurthy, Chartered Accountant to represent the applicant before the Authority for Advance Ruling in connection with the instant application for Advance Ruling. 4. The authorized representative Sri. S Vishnumurthy, Chartered Accountant appeared for personal hearing proceedings and submitted written arguments inter alia stating as under : (a) The instant application is in respect of issues relating to classification of goods & se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined under Section 16 of the IGST Act'2017?" 7. The various terms and related discussion in the context of the question are dealt as follows. 7.1 Zero-rated supply as defined in Section 16(1) of the IGST Act, 2017, means any of the following supplies of goods or services or both namely:- (a) export of goods or services or both; or (b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. 7.2 Further Special Economic Zone shall, in terms of Section 2(19) of IGST Act,2017, have the meaning as assigned to it in clause (za) of Section 2 of the Special Economic Zones Act, 2005 (28 of 2005). This Act provides for the establishment, development and management of the Special Economic Zo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d charge the SEZ units based on number of cups of beverages supplied. (Cuppage billing). In the second type of transaction the applicant installs beverage vending machines inside SEZ premises, supplies beverage ingredients to the SEZ units and bills based on the quantity of ingredients supplied. SEZ units prepare the beverages themselves using the vending machines and serve them to its employees. There will not be any consideration for the usage of vending machine by the SEZ units. 8.2 The applicants'contention is that any supply of goods or services to SEZ units is zero-rated and interprets that the phrase 'any supply'would cover everything, including beverages and ingredients for beverages. 8.3 The applicant has used the ter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eveloper or SEZ Unit. Therefore the litmus test for any supply to be termed as zero-rated supply is to ascertain essentially whether it is for authorized operations or not. 8.6 In this regard we consider it relevant to dwell in the provisions of Rule 89 of the CGST Rules, 2017. It reads as under. Rule 89. Application for refund of tax, interest, penalty, fees or any other amount.-(1) Any person, except the persons covered under notification issued under section 55, claiming refund of any tax, interest, penalty, fees or any other amount paid by him, other than refund of integrated tax paid on goods exported out of India, may file an application electronically in FORM GST RFD-01through the common portal, either directly or through a Facilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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