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TMI Blog2018 (11) TMI 607X X X X Extracts X X X X X X X X Extracts X X X X ..... s the final component could not have been manufactured. Ruling:- The amortised cost of tools which are re-supplied back to the applicant free of cost shall be added to the value of the components while calculating the value of the components supplied as per the Section 15 of the CGST / SGST / IGST Act 2017. - AAR No. KAR ADRG 24/2018 - - - Dated:- 25-10-2018 - SRI. HARISH DHARNIA, AND DR. RAVI PRASAD M.P. MEMBER Represented by: Sri S.Ramaswamy, Chief Commercial Officer ORDER UNDER SUB-SECTION (4) OF SECTION 98 OF CENTRAL GOODS AND SERVICE TAX ACT, 2017 AND UNDER SUB-SECTION (4) OF SECTION 98 OF KARNATAKA GOODS AND SERVICES TAX ACT, 2017 1. M/s Nash Industries (I) Pvt Ltd, (called as the Applicant hereinafter), 236- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read with rule 27 of the CGST law. However, he stated that the customers are of the view that the amortization cost is not includible to arrive at the value for the purpose of GST unlike the erstwhile Central Excise Law. In the absence of clarity on the matter, the applicant preferred the ruling. c. He stated that the it appears that the valuation provisions under the CGST Law is the same as that provided in the erstwhile Central Excise Law. Therefore, the applicant is of the view that the cost of amortization is to be added to the value of the goods supplied for the purpose of payment of GST. In this regard, he referred to the decision of the Hon ble High Court in the case of TATA Johnson Controls Automotive Ltd v/s State of Mahara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient of the supply and not included in the price actually paid or payable for the goods or service or both. (c) . . . . . . . (d) . . . . . . . (e) . . . . . . . (4) Where the value of the supply of goods or services or both cannot be determined under sub-section (1), the same shall be determined in such manner as may be prescribed. Rule 27: Value of supply of goods or services where the consideration is not wholly in money: (a) be the open market value of such supply (b) If the open market value is not available under clause (a), be the sum total of consideration in money and any such further amount in money as is equivalent to the consideration not in money, if such amount is known at the time of suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = 2017 (8) TMI 344 - BOMBAY HIGH COURT 2. GSTAMP Automotive India Pvt Ltd v/s Commissioner of Central Excise reported in 2017 GSTL 337 (Tri) = 2017 (7) TMI 889 - CESTAT MUMBAI 3. Lear Automotive India Pvt Ltd v/s Commissioner reported in 2014 ELT 65 (Tri) = 2013 (12) TMI 1453 - CESTAT AHMEDABAD 4. FINDINGS DISCUSSION: 4.1 The transaction of the applicant is verified and found that there are two supplies involved in the entire activity. First the applicant, once he gets the order for specialized components, manufactures the tools specifically required for the job and invoices it to the recipients. This is the first supply. The applicant has to collect the tax as applicable on the tools and the recipient beco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply of goods or services or both shall be transaction value, which is the price actually paid or payable for the said supply of goods or services or both when the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply Therefore, the transaction value carried out at an arms length, constitutes the value of supply. Further, Section 15(2) of the CGST Act provides for the inclusion of several other related / relevant amounts in the value of taxable supply. We consider Section 15(2)(b) of CGST Act 2017 to be relevant to the facts of this case and analyze the same. 4.4 Section 15(2)(b) of the CGST Act 2017 reads as follows: any amount that the supplier is liable to pay in rela ..... X X X X Extracts X X X X X X X X Extracts X X X X
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