9911796707
TMI Blog2019 (7) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... eference to such a similar provision under the CGST or MP GST Act would be mentioned as being under the GST Act. 3. BRIEF FACTS OF THE CASE: 3.1 The Applicant is registered with the Department having GSTIN 23AABFR5884Q1ZJ for Office/Sale Office, Factory/Manufacturing. 3.2 M/s. Rohan Coach Builders, intends to execute a contract of fabrication of bus body to be mounted on the chassis of the contractee. As per the term of the contract chassis of a bus will be delivered by the OEMs (Principal) for the purpose of carrying out the body building on the chassis on delivery challan. The Applicant shall procure various goods such as metal sheets, plywood, seats, glasses, alluminium sections etc. as inputs for fabricating the bus body besides fabrication services. Once the Bus body is built and mounted on the chassis by the Applicant, the vehicle will be sent back to the OEMs/customers after raising tax invoice towards body building charges on which GST will be charged separately. 3.3 The applicant will claim the credit of GST paid on the material used as input against output liability of GST on body building activity carried out by it. The consideration received by the applicant will be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, an authorized dealer of "Eicher", the manufacturer of chassis are annexed for kind perusal. The applicant has requested for advance ruling only in relation to fabrication of bus body on the chassis to be supplied by the OEMs(Principal) on delivery challan or any other owner of the chassis on which bus body will be fabricated by collecting job work charges including inputs required for such fabrication work. 6.4 It was further submitted that the ownership of the chasis will not be transferred at any stage by the owner of the chassis and body built thereon will be in the nature of "job work" covered by entry no. 26(ii) of SAC 99881 taxable @18% on the invoice raised by the job worker using own inputs in the fabrication process on the chassis received from the principal. 6.5 The Applicant reproduced the relevant provision of the Act in support of his submission which are as follow:- i) As per section 2(68) of the CGST and SGST Act, the term job work means "any treatment or process undertaken by a person on goods belonging to another registered person and the expression 'job worker' shall be construed accordingly." ii) Para 3 of the Schedule II of the CGST Act, specifies cert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply would attract GST @ 28%. In a case as mentioned at Para 12.2(b) above, fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and 18% GST as applicable will be charged accordingly. 6.10 In support of the argument the applicant stated that aforesaid circular was followed by the GOA Authority of Advance Ruling in the case of M/s. Automobile Corporation of Goa Limited vide its order no. GOA/GAAR/1 dated 21.08.2018 = 2018 (10) TMI 1044 - AUTHORITY FOR ADVANCE RULING, GOA wherein it was Ruled as under :- "The Activity of building and mounting of the body on the chassis provided by the principal under FOC challan will result in supply of services under HSN 9988 and hence, should be taxed @18 in GST." Thus in view of aforesaid clarification issued by CBIC vide circular no. 52/26/2018- GST dated 09.08.2018, the advance ruling is sought by the applicant regarding taxability of Body Building activity to be carried on by the applicant. 7. DISCUSSIONS AND FINDINGS: 7.1 We have carefully considered the submissions made by the applicant in the application and during time of personal hearing. 7.2 Firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us body on the chassis supplied by the Principal. 7.6 It has been held in the case of Prestige Engineering (India) Ltd. Vs. CCE on Merut [1994 (73) ELT 497(SC)] = 1994 (9) TMI 66 - SUPREME COURT, addition or application of items by job worker would not detract from the nature and character of his work. 7.7 GST Law does not distinguish between raw material, finished goods and semi-finished goods. It talks about input and Capital goods. Even Semi-finished goods or intermediate are goods and in turn 'Input' by the Principal or by the worker. 7.8 So the argument of the applicant that the nature of the work stated in the application should be falls under "job work" is tenable under the provision of the Law. 7.9 Now we come to the question raised by the Applicant as whether the activity of building, fabricating and mounting of the bus body by the applicant on the chassis provided by the Principle will result in supply of goods under HSN 8707 or supply of services under HSN 9988 taxable @ 18% irrespective of end use by the principle who shall effect the sale of Bus. 7.10 We Find that the activity and question raised before us has been suitably clarified and dealt with Circular no. 52 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 04/2018 dated 30.06.2018 = 2018 (8) TMI 284 - AUTHORITY FOR ADVANCE RULINGS, MADHYA PRADESH based on the then existing provisions and issued at that time, the circulars issued and the arguments and materials supplied by the applicant in that case.
8. RULING
(Under section 98 of Central Goods and Services Tax Act, 2017 and the Madhya Pradesh Goods and Services Tax Act, 2017)
8.1 In respect of the question raised by the applicant we hold that on fabrication of bus body on the chassis to be supplied by the OEMs(Principal) on delivery challan or any other owner of the chassis on which bus body will be fabricated by collecting job work charges including inputs required for such fabrication work and in no case the ownership of the chassis will be transferred by Principal to the applicant will be taxable under SAC 998881 - "Motor vehicle and trailer manufacturing services" and under entry no. 26(ii) as "Manufacturing services on physical inputs (goods) owned by other" it is taxable @18%(9% under CGST and 9% under SGST Act).
8.2. This ruling is valid subject to the provisions under section 103(2) until and unless declared void under Section 104(1) of the GST Act. X X X X Extracts X X X X X X X X Extracts X X X X
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