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TMI Blog2020 (3) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... the rice miller is availing benefit of enhanced period for the delivery of milled rice and it had an obligation under contract to provide the milled goods within specified period and to pay interest in case of delay in delivery of goods and (c) the applicant is tolerating an act of delay in delivery of milled rice by the rice millers and is charging interest (holding charges) on the same and not taking any legal recourse for the specific performance of the contract. The interest charged by the applicant for delay in delivery of milled rice as per the time prescribed in the contract is a supply of service under Para 5 (e) of Schedule II of Central Goods and Services Act 2017 - service agreeing to the obligation to refrain from an act, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e remedies otherwise available, and in particular the assessment of damage in the event of the breach of the obligation in the question. 1.6 Indian contract Act, 1872 deals with liquidated damages in Section 73 and 74 of the said Act. Accordingly, these are reproduced below: Section 73 When a contract has been broken, the party who suffers by such breach is entitled to receive, from the party who has broken the contract, compensation for any loss or damage caused to him thereby, which naturally arose in the usual course of things from such breach, or which the parties knew, when they made the contract, to be likely to result from the breach of it. Section 74 When a contract has been broken, if a sum is named i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivery of goods. c. There must be a toleration of act. The applicant is tolerating an act of delay in delivery of goods and not taking any legal recourse for the specific performance of the contract. d. In the opinion of the applicant, it is a taxable supply. 2. Question on which Advance Ruling is required: (a) Whether interest charged for delay in delivery of goods is taxable under Section 9 of CGST Act, 2017 or HGST Act, 2017 or exempt under Section 11 of CGST Act, 2017 or HGST Act, 2017. (b) What is the HSN Code of the service mentioned in Para (a) supra? 3. Discussion and Findings: In order to determine whether the interest charged for delay in delivery of goods is taxable under Section 9 of CGST Act, 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplier, who is not registered, to a registered person shall be paid by such person on reverse charge basis as the recipient and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. (5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services: Provided that wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o for the purpose of clarifying the scope or applicability of any notification issued under sub-section (1) or order issued under sub-section (2), insert an explanation in such notification or order, as the case may be, by notification at any time within one year of issue of the notification under sub-section (1) or order under sub-section (2), and every such explanation shall have effect as if it had always been the part of the first such notification or order, as the case may be. Explanation :- For the purposes of this section, where an exemption in respect of any goods or services or both from the whole or part of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of such certificate from such authority, from any of the following, namely:- (i) an architect registered with the Council of Architecture constituted under the Architects Act, 1972; or (ii) a chartered engineer registered with the Institution of Engineers (India); or (iii) a licensed surveyor of the respective local body of the city or town or village or development or planning authority; (2) the expression construction includes additions, alterations, replacements or remodelling of any existing civil structure; (c) temporary transfer or permitting the use or enjoyment of any intellectual property right; (d) development, design, programming, customisation, adaptation, upgradation, enhancement, implementatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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