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TMI Blog2019 (4) TMI 1499X X X X Extracts X X X X X X X X Extracts X X X X ..... on (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s Innovative Textile Limited, B-8, PH-I, SIDCUL Industrial Area, Sitarganj, Udham Singh Nagar, Uttarakhand seeking an advance ruling on whether "Business Transfer Agreement" as a going concern on slump sale basis is exempted from the levy of GST in terms of serial no. 2 of the Notification No. 12/2017-CcntraI Tax (Rate) dated 28.06.2017 (herein after referred to as "said notification"). 2. Advance Ruling under GST means a decision provided by the authority or the appellate authority to an applicant on matters or on questions specified in sub section (2) of section 97 or sub section (1) of section 100 in relation to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is covered under serial no. 2 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 and is therefore exempted from GST. He has nothing more to add. 6. From the record we find that applicant is registered in Uttarakhand with GSTIN bearing no. 05AAAC10473J1ZS. The submissions of the applicant are summarized as under: (i) That the applicant is seller and is carrying on the business of manufacturing of textile yarns, fabrics and garments. (ii) That the applicant intends to sell their on going business of manufacturing, marketing and sale of textile yarn and fabrics from the textile manufacturing facility situated at Plot No. B-8, Ph-l, SIDCUL Industrial Park, Sitarganj, Udham Singh Nagar, Uttrakhand to M/s. S.D. Polytech ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis is exempted from the levy of GST in terms of serial no. 2 of the Notification No. 12/2017-CentraI Tax (Rate) dated 28.06.2017. To appreciate the legal position in this regard we reproduce the relevant portion of the said Notification as under: Notification No. 12/2017-Centra1 Tax (Rate) dated 28.06.2017 G.S.R......(E).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g, marketing and sale of textile yarn and fabrics manufactured in the Sitarganj facility including without limitation to any of the assets, liabilities, permits and employees etc; d. "Sitarganj facility" shall mean the textile manufacturing facility situated at B-8, PH-1 SIDCUL Industrial Park, Sitarganj e. "Transfer" means the completion of each and all the steps required for transfer of Sitarganj Business from the seller to the purchaser in a running state and as a going concern on slump sale basis with all assets and f. The seller shall hand over the physical possession and the transfer will get completed on the registry of land; g. The parties shall take all steps and measures required to the end and intent that the purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a licence to book maker in such club; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities; 7.5 From the above definition of the "business" we find that the acquisition of goods/services for commencement of is covered under the said definition. We observe that a transfer of a as a going concern is the sale of a business including assets. In terms of financial transaction 'going concern' has the meaning that at the point in time to which the description applies, the business is live or operating and has all parts and features necessary to keep it in operation. We further find that internationally accepted guidelines (applicable t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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