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TMI Blog2019 (4) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... all forms of supply of goods and / or services such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to the made for a consideration by a person in the course or furtherance of business. Similarly a taxable supply means a supply of goods and / or services which is chargeable to goods and service Tax under the GST Act. The activities carried by the Applicant regarding supply of tax paid motor vehicles on monthly lease rent plus Goods Service Tax as applicable to their customer under a proper agreement properly satisfies the conditions laid down under Section 17(5) (a) (i) (A) before the amendment and under subsection 5(a)(A) after the amendment to make it eligible for availment of input tax credit on motor vehicle for the Tax paid by it while acquiring the said vehicles. ITC allowed. - Case No. 25/2018 Order No. 02/2019 - - - Dated:- 18-2-2019 - RAJIV AGRAWAL AND MANOJ KUMAR CHOUBEY, MEMBER Present on behalf of applicant: Shree Krishnkant Singh, Manager PROCEEDINGS (Under sub-section (4) of Section 98 of Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods Service Tax Act, 2017) 1. The presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with amendments. Such vehicle must be registered for Commercial use and Permit holder as per section 66 under Motor Vehicle Act, 1988. 6. RECORD OF PERSONAL HEARING: 6.1 Shree Krishnkant Singh, Manager of the applicant for personal hearing the submissions already made in the application. The Applicant states that 6.2.1 The applicant is providing Goods Transport Agency Services and is charging GST on outward supply of goods transport agency service @ 12 %. 6.2.2 The inward supply of the goods and services on which full ITC is being claimed by the applicant is as under : (i) Maintenance Repair service Bills- Maintenance repairing service is being used for smooth running of vehicles meant for providing GTA service. (ii) Spare accessories Bills - Goods purchased for maintenance of vehicles. 6.3. Statement containing the applicant's interpretation of law and / or facts, as the case may be, in respect of the aforesaid question(s) (i.e. applicant's view point and submissions on which the advance ruling is sought). As per Section 16(1) of CGST Act, every registered person shall subject to such conditions and restrictions as may be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of their business. 6.4. Hence, the conditions prescribed under Section 17(5) (a) (i) (A) applicable to its case are fully satisfied making them entitled for credit. 7. DISCUSSIONS AND FINDINGS: 7.1 We have carefully considered the submissions made by the applicant in the application, the pleadings on behalf of the Applicant made during the course of personal hearing. We find that the issue raised in the Application is squarely covered under Section 97(2)(d) of the CGST Act 2017 being a matter related to 'admissibility of input tax credit paid or deemed to have been paid', and the applicant has complied with the all the requirements for filing this application as laid down under the law. We therefore admit the application for consideration on merits. 7.2 We find that the Applicant is basically registered with GSTN for providing 'Goods Transport Service' and admittedly discharging GST liability on such services @12% Adv. availing input tax credit (hereinafter referred to as ITC). The Applicant has recently purchased cars and the same have been provided to various Companies on lease rent under a lease agreement. The applicant has expressly purchased s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain circumstances, the Input Tax Credit is not available. These exceptional situations are enumerated in the Sub Section 5(a) after the amendment and sub section 5(a)(i) and (ii) before the amendment. In the present case before us is that the Applicant is providing cars on Lease Rent to their customers for carrying passengers and hence not covered by the exception as provided in clause (B) and (C) of sub section 5(a) after the amendment and in clause (B) and (C) of sub section5(a)(i) before the amendment as well as in Sub section 5 (a) (ii) of Section 17 before the amendment. The sub section 5 (a) (i) reads as for making following taxable supplies namely and sub section 5(a)(A) after the amendment /5(a)(i) (A) before the amendment, reads as further supply of such vehicles or conveyances . 7.6 The words taxable supply further supply finding a place in the said subsections are of great importance here and therefore we find it necessary to draw the attention towards their literal and legal meanings in the GST regime. The term supply has been categorically defined under Section 7(1)(a) of the CGST Act 2017 which reads as under- Section 7. Scope of Supply :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ? The above mentioned sub section mentions about making of further supply of such vehicles or conveyance and hence the deciding factor would be the term further supply . We observe that the term further supply has not been defined in the Act, therefore one has to go by definition of supply which is the very plinth of GST law. The term 'further' prefixed to 'supply' is merely in the form of adverb and does not differentiate it from 'Supply' by any stretch of imagination. 7.10 In the light of the facts as discussed in details in previous paras, the activities carried by the Applicant regarding supply of tax paid motor vehicles on monthly lease rent plus Goods Service Tax as applicable to their customer under a proper agreement properly satisfies the conditions laid down under Section 17(5) (a) (i) (A) before the amendment and under subsection 5(a)(A) after the amendment to make it eligible for availment of input tax credit on motor vehicle for the Tax paid by it while acquiring the said vehicles. 7.11 We also find it necessary to mention here that the cars, which the applicant intends to lease, or has already leased, should be registered wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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