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TMI Blog2019 (7) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to claim refund for zero rated supply i.e.; exports? 3. If at all taxable, whether the tax will be levied as intra-state or interstate supply? Vide their additional submissions their questions have been reframed as under:- 1. The advance ruling is sought to confirm whether this supply will fall under Schedule III of CGST Act? 2. The advance ruling is sought to confirm whether the supply will be termed as Exports of Goods. If No, then what will be the supply, whether Intra State or Inter State and which Tax will be levied CGST and SGST or IGST? 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 except for certain provisions. Therefore, unless a mention is specifically made to any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, the expression 'GST Act' would mean CGST Act and MGST Act. 2. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- "Brief Fact of case: Wilhelmsen Maritime Services Pvt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign port can be done in three following ways: 1. The goods can be delivered from the Bonded Warehouse by paying the Duty: Steps: 1. WMSPL receives the order from the customer. 2. Based on the order WMSPL check if the vessel is not on foreign run/ or if vessel's present port of call is not within 90 Kms radius from the Bonded warehouse. 3. WMSPL prepares the Delivery note and Invoice to file it with customs. 4. WMSPL pays the applicable duty as per the value mentioned in the invoice. 5. Customs issues a Bill of Entry Document and out of charge document. 6. After the clearance of documents, WMSPL collects the goods from the warehouse and the delivers the goods to the vessel. 7. WMSPL files the Shipping bill at the relevant port. 8. WMSPL delivers the goods on board and obtains vessel's acknowledgment on delivery note. II. The goods can be delivered from the Non-Bonded Warehouse by paying the Duty: Steps: 1. WMSPL receives the order from the customer. 2. WMSPL prepare the Delivery note and Invoice to file it in customs. 3. WMSPL files the Shipping bill at the relevant port. 4. WMSPL delivers the goods on board and obtains vessel's acknowle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riations and cognate expressions, means taking out of India to a place outside India. The definition under the IGST Act & the Customs Act is the same, except for the fact that word goods is not used in Customs Act. * Section 87 of the Indian Customs Act, 1962 : Imported stores may be consumed on board a Foreign-going vessel or aircraft. Any imported stores on board a vessel or aircraft (other than stores to which section 90 applies) may, without payment of duty, be consumed thereon as stores during the period such vessel or aircraft is a foreign-going vessel or aircraft. * Section 88(a) of the Indian Customs Act, 1962: for the words "exported to any place outside India" or the word "exported", wherever they occur], the words Taken on board any foreign going vessel or aircraft as stores" shall be substituted. * Section 69 of the Customs Act provides for clearance of warehoused goods for export and Chapter X of the Customs Act provides for drawback on re-export of duty paid goods or imported materials used in manufacture of goods which are exported. By virtue of section 88 of the Customs Act, the benefit of section 69 and Chapter X has been extended to stores which are taken on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess of supply : The delivery of goods to foreign going vessel can be done in following 2 ways, A. Supply directly from Bonded Warehouse (shipping bill is filed for supply of goods on board Vessel) 1. Once received order from customer, WSS check item wise INBOND BOE number. 2. Prepare CHECKLIST for shipping bill. 3. Send Checklist of shipping bill to WSS for approval once it is approved then we have to file and generate shipping bill number. 4. Submit docs into customs for clearance along with request letter. 5. Coordinate with vessel agent for vessel detail (for ETA, ETB and ETD). 6. We have to arrange seal truck for taking forwarding and passing of shipping bill as per vessel planning. 7. Give one Delivery note and Order confirmation copy to driver to get receiving copy from vessel agent or vessel depends on order. 8. Give one DN copy to warehouse for record purpose 9. Submit I acknowledged DN copy to customs, for closure of the Bond Entry. Question(s) on which advance ruling is required "The advance ruling is sought to confirm whether this supply will fall under Schedule III of CGST Act". B. Supply of goods from non-bonded warehouse or from bonded warehou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated supply i.e. exports? Q.3) If at all taxable, whether the tax will be levied as intra-state or interstate supply? Submission of this office with respect to the queries raised by WMSPL is as follows Q 1) Whether the delivery of goods to the owner of the ship proceeding to foreign port at this Indian port is an "export of goods" as per the sec. 16 of the IGST Act 2017? 1. With respect to question 1, this office submits as below : i. Taxable territory is defined in Sec. 2(109) as territory to which the provisions of this Act apply. Non Taxable Territory is defined in Sec. 2(79) as territory outside the taxable territory. As per Sec. 1(2) of CGST Act, the Act extends to the whole of India and as per Sec. I (2) of MGST Act it extends to whole of State of Maharashtra. India has been defined under section 2(56) as : "(56) "India" means the territory of India as referred to in article 1 of the Constitution, its territorial waters, seabed and sub-soil underlying such waters, continental shelf, exclusive economic zone or any other maritime zone as referred to in the Territorial Waters, Continental Shelf Exclusive Economic Zone and other Maritime Zones Act, 1976, and the air spa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any provisions of other laws such as Customs Act or Central Excise Act, for affecting the applicability of the MGST Act, CGST Act and IGST Acts not warrant exemption to be applied to supplies liable to tax under such laws. If exemption or non-applicability of laws of the MGST Act, CGST Act & IGST Acts are to be claimed, the same must be found in the said MGST Act, CGST Act &IGST Acts and not outside. vi) Proviso to Section 5(1) of IGST nor Sec. 3 of Custom Tariff Act 1975 does not in any manner establish the transactions of ship chandelier to be export nor it is correct to say that exemption under Custom Act can be said to be ipso make supply by applicant exempt from GST levy. Hence in no case the sale by the applicant to ship stationed in Indian port, may or may not be destined to Foreign port can qualify as export of goods. Q.2) WMSPL has w.e.f. 1.7.2017 levied and paid GST under protest on all its "Maritime products" supplies . If the supply is exports as per section 16 than, will WMSPL will be liable to claim refund for zero rated supply i.e. exports? 2) As discussed in with respect to question 1, the answer to question 2 is negative. Q3) If at all taxable, whether the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th, the applicant as well as the jurisdictional office. The applicant, registered under the GST Act, imports and supplies goods like "Marine Products", which are required for the ship's maintenance, consumption etc. Applicant imports the aforesaid Marine Products from its parent company formerly known as Wilhelmsen Ships Service AS, Oslo (W SS AS) situated abroad. The goods so procured from out of India are stored either at Bonded warehouses or Non-Bonded Warehouses. The applicant sells these imported goods from the warehouses to its customer viz. Owner or Operator of the ship proceeding to a foreign port & invoices the owner/operator of the ship. Delivery of the goods is given at the vessels on board at the Indian Port & consideration for the supply is received in foreign convertible exchange. The Owner of the ship does not have any place of business in India. The methods for the supply of goods to the boat vessels either from Bonded or Non bonded warehouse are stated by the applicant in their submissions. Considering the facts of the transactions and procedure followed to deliver the goods on board a vessel, applicant has reframed their questions before this authority and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other person, by endorsement of documents of title to the goods, after the goods have been dispatched from the port of origin located outside India but before clearance for home consumption. Explanation 1: For the purposes of paragraph 2, the term "court" includes District Court, High Court and Supreme Court. Explanation 2: For the purposes of paragraph 8, the expression "warehoused goods" shall have the same meaning as assigned to it in the Customs Act, 1962. We find that Schedule III of CGST Act, is listing activities or transactions which shall be treated neither as a supply of goods nor supply of services. Clause 8(a) of the Schedule mentions "Supply of warehoused goods to any person before clearance for home consumption". In the subject case the supply of warehoused goods is of two types, namely; 1. Clearance from Bonded Warehouses to the vessels, and 2. Clearance from Non-Bonded Warehouses to the vessels. A Bonded Warehouses is a customs-controlled warehouse for the retention of imported goods until the duty owed is paid. A bonded warehouse is a secured area in which dutiable goods may be stored, without payment of duty. It may be managed by the state or by priva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings, we find that this question is not covered under the purview of Section 97 of the CGST Act, 2017. Hence we hold the subject application is not maintainable in this respect and cannot be entertained and therefore no opinion is given by us since the matter is beyond the purview of this Authority. 06. In view of the extensive deliberations as held hereinabove, we pass an order as follows: ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA-136/2018-19/B-71 Mumbai, dt. 15-06-2019 For reasons as discussed in the body of the order, the questions are answered thus - Ques. No. 1 - "The advance ruling is sought to confirm whether this supply will fall under Schedule III of CGST Act". Answer - In view of the discussions made above, supply from Bonded warehouse will fall under Schedule III of CGST Act "and exempted from GST and supply from Non-Bonded warehouse will not fall under Schedule III of CGST Act "and therefore not exempted from GST. Ques. No. 2. - "The advance ruling is sought to confirm whether the supply will be termed as Exports of Goods. If No, then what will be the supply, whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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