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TMI Blog2020 (5) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... on the issues raised by the applicant before this authority, 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/12/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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gricultural produce i.e., Cotton is usually brought to the society by the agriculturist to effect sale through auction; According to the societies by law definition 14 (2) every member of the society 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. The society does not issue any Tax Invoice, contemplated under the CGST/SGST Act 2017. They obtain no right of disposal over the goods, and the power to pass a valid title over the goods. They only play the role of bringing together the seller and the buyer (i.e., the supplier and the recipient) together and conduct bids. Hence the society is not liable for payment of tax on reverse charge mechanism for rendering service to the agricultural produce; The merchants, who are registered persons, directly purchase the goods(cotton) from the agriculturist through auction are liable for payment of tax under Reverse Charge Mechanism The society only reimburses the sale proceeds paid to the agriculturists ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter. The state GST officer appeared and gave a written submission stating that the services by the applicant is an auctioneering service as per CBIC Circular 31 dated 04/09/2018. The applicant requested another PH to submit linked sale purchase documents, bye laws and APMC Act and the license granted by the local APMC by the applicant. 3.2 The State Jurisdictional Authority vide their letter Roc.No.1271/2019 A2 dated 05.11.2019 has furnished their comments in detail on the issues raised by the applicant 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ural Producers and 4. The merchants (Registered person) who directly purchase cotton from the society which is 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/ sate involved in the process of auction of agricultural produce (cotton) conducted by the Namakkal 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 appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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