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TMI Blog2023 (1) TMI 975X X X X Extracts X X X X X X X X Extracts X X X X ..... d the applicable rate will be CGST @ 9% and SGST @ 9% as per entry no.26 of Notification No.11/2017-Central Tax (Rate) dt.28.06.2017(as amended) and Sl.No,26 of Notification No.11(2)/ CTR/532(d- 14)/2017 vide G.O.(Ms)No.72 dated 29.06.2017 (as amended) respectively. - The facts and circumstances of the instant case are similar and there are no reason to deviate from the decision taken in the order. The Bus body building on the chassis supplied by the customer is a service under SAC 998881, Motor Vehicle and trailer manufacturing services and 18% GST as applicable will be charged accordingly - it is evident that the activity undertaken by the Applicant for bus body building on the chassis supplied by the customer is to be classified as job work. As per Schedule II (3) of the CGST Act 2017, the said activity bus body building on the chassis belonging to the customer by the applicant is supply of services. - TN/35/AAR/2022 - - - Dated:- 30-11-2022 - SHRI. R. GOPALSAMY, I.R.S., AND TMT. N. USHA, MEMBER 1. Any appeal against this Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, under Sub-section (1) of Section 100 of Ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uires from the customers for building a bus body on the chassis belonging to the customers on job work basis. On receipt of enquiry from customers, Applicant will provide the quotation according to the specification given by the customer. The customers will hand over the chassis purchased by them at the Applicant's yard for fabricating the bus body. As per the Customer's choice, Applicant fabricates and fixes the bus body on the customers supplied/ owned chassis. Then, the Bus body fixed on Customer supplied chassis is offered for inspection. If any deviations are found, they are rectified immediately. Thus, the fully built bus body mounted on customer chassis is delivered to customer. 2.1 Further, the Applicant submitted, inter alia, that as per SI.No.3 of Schedule II to the COST Act, 2017, any treatment or process which is applied to another person's goods is a supply of service; that the Board vide Circular No.52/26/2018-GST, dated 09.08.2018 had clarified that the principal activity i.e. the activity of bus body building on the chassis by the customer is a service and will attract GST @ 18%. The SAC Code is 998881 - Motor vehicle and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ateswara Travels (Customer)-document no. MV 15524220000137 dated 05.05.2022 ii. Copy of quotation dated 07.04.2022 by Applicant to M/s Venkateswara Travels iii. Copy of Tax invoice-document no. RCB-23 dated 28.05.2022 3.2 Another Personal Hearing was held on 18.11.2022, as there was a change in constitution of Members. In this Personal Hearing which was conducted virtually, the AR reiterated the submissions already made and explained the process briefly. On being queried whether any SCN has been issued and the documents accompanying Chassis transferred from principal to the Applicant, AR said that he will check and reply shortly. Later, vide mail dated 22.11.2022, AR submitted that that they have not received any Show Cause Notice till date and that purchase invoice is the document which is received along with chassis. 4.0 The State jurisdictional authority, the Assistant Commissioner (ST), Karur-1 Assessment Circle vide their Ref.No.Re.515/2022/A1, dated 24.05.2022 has submitted that there are no proceedings pending against the applicant. They had further submitted their comments on the subject which can be summarized as under: The activity of bus body buil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be construed accordingly. 6.2 As per Schedule II, Clause (3) of the CGST Act which specifies certain activities to be treated as supply of goods or supply of services, ''any treatment or process which is applied to another person's goods is a supply of services . 6.3 Explanation to Section 143 of CGST Act, 2017 provides that; For the purpose of job work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job worker . 6.4 In the instant case, it is observed that the bus body is fabricated and mounted by the Applicant on the chassis owned and supplied by the customer. After completing the work, it is delivered back to the customer, charging a lump sum amount as Job Work Charges. The ownership of the chassis remains with their customers and will not be transferred to the Applicant at any point of time. The consideration is received only towards fabrication services besides some materials involved in the course of fabrication. 6.5. We find that in the case of M/s. Anamallais Engineering (P) Ltd, decided by AAR Tamil Nadu, vide Order No.27/ARA/2021 Dated 30.07.2021, it was held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicable will be charged accordingly. 6.7 Hence, the instant case falls in the situation spelt in Para 12.2 (b) of the Circular cited supra, and therefore Bus body building on the chassis supplied by the customer is a service under SAC 998881 - Motor Vehicle and trailer manufacturing services and 18% GST as applicable will be charged accordingly. 6.8 In view of the above discussions, it is evident that the activity undertaken by the Applicant for bus body building on the chassis supplied by the customer is to be classified as job work. As per Schedule II (3) of the CGST Act 2017, the said activity bus body building on the chassis belonging to the customer by the applicant is supply of services. 6.9. Having decided the type of supply and the relevant SAC, the rate of supply is to be determined. The rate as per Entry No. 26 of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended) is S.No. Chapter, Section or Heading Description of Service Rate (Percent) Condition 26 9988 (Manufacturing services on physical inputs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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