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TMI Blog2020 (5) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... hority, the Central Tax authorities have initiated proceedings and the same is pending before the Jurisdictional authority at the time of filing of this application - The applicant has also accepted this fact during the personal hearing, though they have not mentioned the same in the application (S1.No. 17). The application is not admitted and rejected under first proviso to Section 98 (2) of the CGST/TNGST Act 2017, as the issues on which Advance Ruling is sought by the applicant is already pending before the appropriate authority. - TN/11/AAR/2020 - - - Dated:- 27-2-2020 - MS. MANASA GANGOTRI KATA, IRS, AND THIRU KURINJISELVAAN V.S., M.SC. (AGRI.), M.B.A., MEMBER Note: Any appeal against this Advance Ruling order shall lie before the Tamil Nadu State Appellate Authority for Advance Rulings, Chennai as under Sub Section (1) of CGST Act / TNGST Act 2017, within 30 days from the date on the ruling sought to be appealed is communicated. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sually brought to the society to effect sale through auction; According to the societies by law definition 14 (2) every member shall be entitled to the services available to the member of the society and such service shall be rendered to him by the society; The society only plays the role of an auctioneer on commission basis and function on the lines of middlemen, not liable to collect or pay tax. They do not issue any Tax Invoice, Contemplated under the CGST/SGST Act 2017. The society obtains no right of disposal over the goods, and the power to pass a valid title over the goods. It only plays the role of bringing together the seller and the buyer (i.e., the supplier and the recipient) together and conducts bids. Hence in this type of transaction the society is neither a taxable supplier nor the recipient of taxable goods liable for payment of tax on reverse charge mechanism; The society only reimburses the sale proceeds paid to the agriculturists from the merchants who directly purchases from farmers. The society collects godown rent, insurance, handling charges and interest from the merchants for delayed payments of sale proceeds and such collections are not to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd hence not exempt. The applicant requested another PH to submit linked sale 8s purchase documents, bye-laws, APMC Act and license. They also stated that they are authorised by local APMC which they would submit. 3.2 The State Jurisdictional Authority vide their letter Roc.No. 563/2019 A4 dated 05.11.2019 has furnished their comments in detail on the issues raised by the applicant and has concluded that while the definition of agent includes commission agent, auctioneer among other things, the exemption in the notification has been provided only for commission agents and not auctioneers or agents in general; thus the society is neither an agent nor an APMC and may be classified as providing Auctioneering Services under SAC 9961. 3.3 The Central Jurisdictional Authority vide their letter dated 07.12.2019 submitted that the applicant receives raw cotton from agriculturalist and they are registered under GST, hence as per Notification No.04/2017-CT(rate) dated 28.06.2017 as amended they are liable for payment of GST under Reverse Charge Mechanism w.e.f. 15.11.2017 and also the applicant are not coming under the definition of Commission agent for availing exemption under Sl. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liable to tax 5.1 We have carefully examined the submissions of the applicant and the comments furnished by the State/Central Jurisdictional Officer. The applicant has filed this application seeking advance ruling on the following questions: 1) Whether there is any purchase/sale involved in the process of auction of agricultural produce (cotton) conducted by the Rasipuram Agricultural Producers Co-operative Marketing Society? 2) Whether our Society is liable to pay tax under Reverse Charge Mechanism in the capacity of being an auctioneer? 3) Whether service tax payable on receipt of Commission, Godown rent, Interest, in respect of service provided to agricultural produce? 4) Whether or not the merchants (Registered person) who directly purchase cotton from the agriculturist through auction conducted by the society is liable to pay tax on the basis of Reverse Charge Mechanism? 5.2 It is seen from the comments furnished by Central Tax Officer vide letters dated 12.12.2019 27.02.2020, that proceedings has been initiated in respect of the applicant on the issues raised by them before this authority and statements have been recorded as per Section 70 of CGST ..... 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