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TMI Blog2022 (7) TMI 601X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of the exporting country but before it enters the territorial waters of the importing country. The taxability on High Sea Sales requires the determination of occurrence of High Sea Sales. As such, the import as well as High Sea Sales is determined on the basis of 'place of supply'. The 'place of supply' is not covered by Section 97(2) of the CGST Act, 2017 at all. So, the ruling on matters concerning 'place of supply' is outside the purview of the Authority for Advance Ruling. The current application is not covered within the scope of Section 97 of the CGST Act, 2017 as such the same is not covered under the ambit of Authority for Advance Ruling. As the questions raised do not fall within the mandate of Auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ract which is executed while the goods are on high seas i.e. in transit before crossing the customs frontiers of India. Customers clear the imported goods from customs after payment of applicable import duties and GST. Applicant raises invoice to customers towards such supply of domestic components and for imported components on HSS basis in INR. 3. The applicant has sought advance ruling on following questions as per Form GST ARA-01 - Whether supply of components of Pneumatic Conveying system by the applicant to its customers on High Sea Sales basis will be treated neither as supply of goods nor as supply of service by virtue of entry 8 to Schedule III of CGST Act. 4. As per declaration given by the applicant in Form ARA-01, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter. The Assistant Commissioner, CGST Division III, Noida forwarded his report vide his letter C.No. V (30) Tech / Misc /Legal/Div III/N/643/2018/114 dated 08.03.2022 wherein following comments were made- (i) as per the facts submitted by the applicant that the components of the PCS imported by the applicant are sold to the customers on HSS basis while such component are on high sea, the activity is squarely covered by the Entry No. 8(b) to Schedule III of CGST Act after the enactment of the CGST (Amendment) Act, 2018 with effect from 01.02.2019 vide which the said entry was inserted in Schedule III only if the goods are sold to the customers in India who will be finally under obligation to discharge import duty alongwith the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in issues mentioned in Section 97 (2) (alto (g), which is elaborated as below: SECTION 97. . (2) The question on which the advance ruling is sought under this Act, shall be in respect of (a) classification of any goods or services or both,. (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Advance Ruling. 14. Further, the question raised in the application for advance ruling falls in Customs domain as high sea sale of goods becomes a part of import transaction of those goods which is taxable in accordance with the provisions of section 3 of Customs Tariff Act, 1975. Moreover, the CBEC had issued a circular No. 33/2017-Cus dated 1.8.2017 wherein it was informed that- 4. GST council has deliberated the levy of Integrated Goods and Service Tax on high sea sales in the case of imported goods. The council has decided that IGST on high sea sale(s) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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