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TMI Blog2022 (3) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... (hereinafter referred to as the "Appellant") against the Advance Ruling No. HAR/HAAR/R/2018-19/40 dated 01.03.2019. A copy of order dated 01.03.2019 of the Advance Ruling Authority was received by the appellant on 13.09.2019 and the appeal has been filed on 11.10.2019 which is within time. BRIEF FACTS OF THE CASE: The Facts of the case, as available from 'Facts and Issues of Ruling' in the Appeal submitted vide FORM 'GST ARA-02' by M/s Platinum Motocorp LLP, are that the Applicant is registered in GST at Gurugram as a Central Government (CBIC - Central Board of Indirect Taxes & Customs) administered taxpayer and is an authorised Dealer of Maruti Suzuki India Limited. The Applicant purchases 'Demo Cars' for demon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gave following Rulings on the abovementioned Questions: "RULING: So in the light of above discussion the Ruling of the Authority on the questions raised in the application is as under:- "The Goods and Services Tax paid on the purchase of demo vehicles cannot be availed as Input Tax Credit and set off against output tax payable under the GST. No Input Tax Credit can be availed on the ancillary Input Services such as Insurance and Repair & Maintenance in respect of above-mentioned vehicles." In the Discussion & Findings portion of the Order, the Advance Ruling Authority had found/ noted the following:- "A close scrutiny of Section 17(5)(a) reveals that the term supply has been prefixed by the word further' and due weightage sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble GST is paid on that; * Appellant's contention is supported by an Advance Ruling dated 26.09.2018 issued by Kerala Authority for Advance Ruling wherein the Authority has held that the negative clause is not applicable; * That, vehicles were always intended to be further supply by the Appellant after specified use; No time limit has been prescribed under CGST Act for further supply of vehicles. RECORDS OF PERSONAL HEARING: The personal hearing in the case was conducted on 24.03.2021. Sh. Deepak Juneja, Advocate appeared before the Members of the Appellate Authority for Advance Ruling and emphasized on the submissions already made in the Appeal and no new point was added. DISCUSSIONS AND FINDINGS: As per the Statement of Facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for furtherance of business. As discussed above certain restriction have been imposed on ITC availment in respect of the goods and services in Section 17(5). One such restriction expressly mentioned under Section 17(5)(g) viz-, "(g) goods or services or both used for personal consumption." It can be inferred that sub-Section 17(5)(g) restricts ITC on the Motor Vehicles as these are potential items of personal/non-business use. However, to arrive at the actual legislative intent i.e. whether the exclusion of said motor vehicles is absolute or purely purpose based, the relevant Sub-section may be read which forbids ITC on several goods and services. Section 17(5)(a) disallows availment of ITC in respect of vehicles with seating capacity o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capacity up to 13 persons. The intended purposes are also limited i.e. numbered only three, viz.:- * further supply of such motor vehicles; or * transportation of passengers; or * imparting training on driving such motor vehicles. As mentioned supra, the Demo Vehicles in respect of which the Question about admissibility of ITC has been raised for Advance Ruling, have been used, have been used for the purpose of demonstration before the prospective customers. Then they are sold like second hand goods. The law provides for ITC in case of "further Supply" of said vehicles . But here, first the vehicles are purchased, then they are diverted and used for Demonstration of 2 years or so, and in the first demonstration run it loses the char ..... X X X X Extracts X X X X X X X X Extracts X X X X
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