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TMI Blog2021 (4) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... e (Development and Warehousing) Corporations Act, 1956, later repealed by the Warehousing Corporation Act, 1962, having Central Warehousing Corporation and the Government of Karnataka as shareholders, in equal proportions. Further they also submitted that they are engaged in the following activities. a. To acquire and/or build godowns and/or warehouses within the State of Karnataka. b. To run Warehouses in the State of Karnataka for the storage of Agricultural Produce, seeds, manures, Fertilizers, Agriculture implements and other notified commodities. c. To arrange facilities for handling and transport, loading and unloading of agricultural produce, seeds, manures, fertilizers etc., to and from various railheads to corporation's godowns; and supervise all these activities being carried out by handling & Transport contractors (H&T Contractors). d. To arrange for disinfestation services on behalf of farmers, government offices, public libraries, etc., e. To lease/rent out space on per square feet or any other basis to other corporations/agencies for storage of food grains, oil, fertilizers. Branded good, etc., 3. The applicant provides the services, in relation to faci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of gunnies, jute twine package etc., which may be purchased by the corporation if not supplied by the depositor. b. Supervisory Charges on bills of H & T contractors and other incidental expenses incurred on behalf of the depositor at the rate 8% has to be paid by the depositor i.e. FCI 31. The H&T work is entrusted to the contractors who are appointed on the basis of tenders called and finalized as per Karnataka Transparency in Public Procurement Act. The work will be done by the Contractor, on the basis of agreement entered into with him by the Karnataka State Warehousing Corporation. Rates and other terms and conditions agreed to, with the contractor shall remain in force for the period and centers agreed to. Once the contractor is appointed the depositor shall have "NO SAY" regarding rates etc., and shall have to reimburse the charges for different operations along with supervisory charges. Adhoc rates may also be fixed by Karnataka State Warehousing Corporation for all unscheduled operations." 7. Applicant's Interpretation of Law : The applicant contends as under: 7.1 The Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 has notified that the Support serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in their application. 9. FINDINGS & DISCUSSION: 9.1 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the KGST Act. 9.2 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Sri. Vijay Singh A R, Chartered Accountant and Sri. Chandrashekhar S Hegde, General Manager (Finance) of the applicant company during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 9.3 The applicant submitted that they provide "Storage and Warehousing" services to the depositors such as FCI, for storing the agricultural produce. The applicant, at the request of FCI, undertakes the handling & transportation of the goods to be warehoused or to be removed, through the H&T contractors, and claims the actual charges plus 8% of the said charges (supervision charges) for having supervised the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the instant case, the applicant has furnished the copy of letter No E-4 (20)/02/Stg.VII/Vol.III dated 09.08.2004, issued by the recipient FCI, on the basis of Ministry of Consumer Affair, Food & Public Distribution's letter No.6-21/2003 SG dated 27.07.2004, wherein at para 1(c) it is communicated that the supervisory charges have been increased from 5% to 8% w.e.f. 01.04.2004, payable by FCI to CWC and the said rates have been extended to the SWCs (applicant is one of the SWC) subject to certain conditions, at para 4 of the said letter. A contract is an agreement between two or more parties and can be either written or oral. An oral contract is an agreement made with spoken words and either no writing or only partially written and is just as valid as a written agreement. The existence of a contract requires the factual elements of (i) an offer, (ii) an acceptance of that offer which results in a meeting of the minds, (iii) a promise to perform, (iv) a valuable consideration, (v) a time or event when performance must be made (meet commitments), (vi) terms and conditions for performance including fulfilling promises and (vii) performance. In the instant case the letter of FC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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