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TMI Blog2018 (9) TMI 975X X X X Extracts X X X X X X X X Extracts X X X X ..... GS (under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) The present application has been filed under section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as the CGST Act and MGST Act ] by Sterlite Technologies Limited, the applicant, seeking an advance ruling in respect of the following questions :- 1.1. Whether the Applicant is required to separately discharge GST on the excess length of OF although the cost of such excess length is already included in the price charged to independent customers? 1.2 Whether the Applicant is required to separately discharge GST on the excess length of OF although the cost of such excess length is already included in the price charged to distinct persons in terms of Schedule I provisions? 1.3 If GST is not payable separately on the excess length, whether the Company is required to reverse proportionate credit to the extent of supply such excess length? At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... being manufactured and winded around a spool moves at a higher velocity and identifying the exact length is a technical challenge, b. Precautionary measures: - The loose ends of the OF are vulnerable to damages and loss of necessary characteristics. Thus, if the Of is manufactured and winded up in exact length, any damage to the loose ends would render entire length OF in the spool unusable owing to shortfall in maintaining standard length. 6. To overcome these practical challenges whilst ensuring that of manufactured by STL retains its minimum required length, each lot of OF is manufactured and supplied with marginally surplus length (e.g. 1-2 meter surplus length in a spool that ought to contain Of in multiples of 2.1 kilometre in length). The practice to manufacture and supply of in excess length is a standard practice across industry and all the supplies being made (both to STL's unit in Rakholi and Dadra as well as third party customers). 7. Usable length of OF (in multiples of 2.1 km/4.2 km) which is mentioned on the invoice (which the customer has placed an order and agreed to pay) is considered as 'usable quantity' whereas the actually supplied qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the standard price charged to the customers. Without going into the detailed submissions of the applicant we find that the department has opposed the admission of the application under section 98 of the GST Act statin that the question raised in the application is already pending before the department as an Anti-Evasion investigation is already underway against the applicant on the same issue. 04. CONTENTION AND OBJECr10NS TO ADMISSION OF THE APPLICATION- AS PER THE CONCERNED OFFICER The jurisdictional Officer Assistant Commissioner (Preventive) GST Central Excise, Aurangabad, vide letter dated 1 2th July, 2018 has submitted factual details before this authority about the investigation being undertaken by them on the same issue as raised by the applicant in their Advance Ruling Application. However the full facts and details of the investigation are not being reproduced here for the sake of confidentiality of investigation proceedings. However only relevant paras with respect to initiation of proceedings is reproduced below:- At the outset it is to submit that the issues for determination raised by the taxpayer has been placed before Authority of Advance R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been placed before Authority of Advance Ruling, only after initiation of investigation by the preventive officers of GST Commissionerate, Aurangabad on the basis of searches conducted on 02.04.2018 and 03.04.2018 and consequent follow-up actions conducted by the department including statements of the key persons recorded under Section 70 of the CGST Act, 2017. In this connection, your attention is invited towards proviso to Section 98 of the CGST Act, 2017, (similar provision has been given in proviso to Section 98 of the Maharashtra GST Act, 2017), wherein it is specifically provided that the Authority for Advance Ruling shall not admit the application where the question raised in the application is already pending or decided in any proceedings in the case of an applicant under any of the provisions of this Act . In view of the express provisions given in the CGST Act, 2017 and Maharashtra GST Act, 2017, the application submitted by the taxpayer before the Authority for Advance Ruling, shall not be entertained and deserved to be rejected outrightly at the admission stage only. Further, the taxpayers is required to declare before Authority of Advance Ruling, in pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... logies Ltd (GSTIN 27AAEC58719BIZC) has applied in form GST ARA 01 for Advance Ruling under section 98 (CGST ACT 2017) before Hon. Authority for Advance Ruling, Maharashtra, Mumbai on 19th June 2018. The hearing is scheduled for acceptance or rejection of said application, on 17/07/2018. Being the Jurisdictional officer (DGST-AUR-VAT-E003.Aurangabad) I am directed to attend for primary hearing and represent the case with Legal submission. In this regard the Taxpayer, M/S Sterlite Technologies Ltd (GSTIN 27AAEC58719BlZC) was communicated and asked to attend to this office, with relevant record. In response, Mr. Sonwane Revnath Sudhakar (Associate Manager) Indirect laxation, Sterlite Technologies Ltd. Aurangabad, attended on 03/07/2018 and briefed about the case. During the hearing, Mr. Sonware submitted that their Waluj Shendra manufacturing units were searched by the Central GST office Aurangabad during 2/4/2018 to 3/4/2018. Mr. Sonwane explained about the Manufacturing process of optic fiber and optic fiber cable. He also explained the issue of mis-declaring the quantity of goods by under declaring the same in the invoices issued. As, Mr. Sonwane Associate Manager of Ster ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with respect to admission or rejection of application. As requested opportunity to present their side of the case was granted to CGST Commissionerate, Aurangabad wherein Sh. Sandeep Vaichal Supt. Appeared on 28.08.2018 and made written submissions and stated that the department is investigating the matter on the same issue for which advance ruling application is made by the applicant. 05. OBSERVATIONS We have gone through the facts of the case and the written submissions made by both, the applicant and the departmental authority. We find that 1. The Company is registered person under GST Act and engaged in manufacturing of products which inter alia includes preform, Optic Fibre ( OF ) and Optic Fibre Cable ( OFC ). The optical fibre (OF) as manufactured by the Applicant is supplied to its units located in Rakholi and Dadra as well as to third party customers on payment of appropriate GST. Such OF is then further used for manufacture of OFC. 2. The applicant submitted that supply of usable length of OF (in multiples of 2.1 km/4.2 km) which is mentioned on the invoice (which the customer has placed an order and agreed to pay) is considered as 'usable quantity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of searches conducted on 02.04.2018 and 03.04.2018, have also been undertaken in the form of follow-up actions the department including statements of the key persons recorded under Section 70 of the CGST Act, 2017. 7. We find that the applicant in their oral submissions before this authority has admitted to initiation of these proceedings against them by the department and have not denied initiation of these proceedings. However in their oral and written submissions their only contentions is that no proceedings for denial of admission of the ARA application can be stated to be initiated against them until Show Cause Notice in this respect has been issued to them. 8. However the contentions of the applicant are not sustainable in view of there being no difference with regard to the fact that searches were conducted against the applicant on 02.04.2018 and 03.04.2018 on the same issue as raised in the application and consequent follow up actions against them have also been conducted by the department as part of the investigations including recording of statements of key persons under Section 70 of the GST Act, 2017. 9. The contention of the applicant that no proceedings c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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