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TMI Blog2023 (4) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... e original advance ruling have changed. 4. Advance Ruling obtained by the applicant by fraud or suppression of material facts or misrepresentation of facts, shall render such ruling to be void ab initio in accordance with Section 104 of the Act. 5. The provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. 1. The applicant submitted a copy of challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules 2017 and SGST Rules 2017. 2.1 The Applicant, as Lessor to provide Warehouse to Lessee on rental basis to store Agricultural produce, ie Frunits & Vegetables. 2.2 The Lessee Purchases these Fruits & Vegetables from Farmers and Traders directly and stores the same in the Warehouse of Lessor. 2.3 Later, the Lessee packs these Fruits & Vegetables without any further processing as such for Sale. 2.4 On interpretati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vate Limited, the Lessee, copy of invoices issued by the Lessee to their customers and copy of invoice issued by the applicant to the Lessee. The Invoice No. 8/22-23 dated 28.07.2022 issued by the applicant to M/s 63 Ideas Infolabs Private Limited with the service description "Rental or Leasing services involving own or leased non-residential property rent for the month of August 2022" without charging any amount towards GST. The copy of invoices issued by M/s 63 Ideas Infolabs Private Limited, the Lessee, to their customers indicates supply of various vegetables without GST. 3.3 The Lease Agreement dated 14.03.2022, inter alia, states that the Lessee is engaged in the business of wholesale trade of fresh fruits, vegetables and other products has approached the Lessor / applicant with a request to grant lease to use and occupy schedule property against payment of agreed monthly rent during the lease period. The Lessee shall be entitled to make use of the schedule property for buy/sale of fresh fruits, vegetables and other related purpose and for any lawful business without any restriction. It is specifically agreed between the parties that the Lessee shall be entitled to assign, u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leasing of immovable property and does not fall within the ambit of storage services for claiming exemption under Sl. No. 24(e) of Notification No. 11/2017 C.T. (Rate) dated 28.06.2017. 4.3 Accordingly, the jurisdictional authority opines that applicant is providing renting of immovable property service in terms of clause (a) of para. 5 of Schedule II to GST Act, 2017 and attract GST @ 18% under SAC 9972 as per residuary entry at Sl. No. 16 of Notification No. 11/2017 C.T (Rate) dated 28.06.2017. 5. The State Tax Officer vide letter Rc. No. 164/2022/A4 dated 18.05.2022 stated that no pending proceedings against M/s Samco Logistics LLP on the issue raised by the applicant. 6.1 We have carefully considered the submissions made by the applicant in the advance ruling application, the additional submissions made during the personal hearings and the comments furnished by the Centre and State Tax Authorities. The applicant filed advance ruling application for determination of the liability to pay tax on service and to ascertain the applicability of notification issued under the Act, within the meaning of that term as per Section 97(2)(e) and 97(2)(b) of GST Act, 2017. We also take cog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l' rate of GST and if different view is taken, he requested to state the rate of GST and SAC. 8.1 For ease of reference, the relevant entries of Notification No. 11/2017 C.T (Rate and 12/2017 C.T (Rate) are reproduced below; Notification No. 11/2017 I.T (Rate) dated 28.06.2017 entry No. 24(e) is as follows; Sl.No. Chapter /Heading /Sub heading/ Tariff item Description of Goods 24. Heading 9986 (Support services to agriculture, hunting, forestry, fishing, mining and utilities) (i) Support services to agriculture, forestry, fishing, animal husbandry. Explanation. - -Support services to agriculture, forestry, fishing, animal husbandry mean - (i) Services relating to cultivation of plants and rearing of all life forms of animals, except the rearing of horses, for food, fibre, fuel, raw material or other similar products or agricultural produce by way of- (a) . . . (e) loading, unloading, packing, storage or warehousing of agricultural produce; Notification No. 12/2017 I.T (Rate) dated 28.06.2017 entry No. 54(e) is as follows; Sl.No. Chapter Heading /Sub-heading / Tariff item Description of Goods 54 heading 9986 Services relating to cultivation of plants and r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the entry 'Rental or leasing services involving own or leased non-residential property' classifiable under SAC 997212 and it attracts GST @ 18% vide entry Sl.No. 16(iii) of Notification No. 11/2017 C.T (Rate) dated 28.06.2017. 8.8 The activities of the applicant and Lessee is not covered under any of the activities specified under entries 24 (e) of Notification No. 11/2017 C.T (Rate) and 54 (e) of Notification No. 12/2017 C.T (Rate) dated 28.06.2017. 8.9 The applicant had relied upon the decision of AAR, Andhra Pradesh on an AR application filed by M/ S S S V K Cold Storage Private Limited wherein it was ruled that storage and warehousing service of agricultural produce to farmers and traders falls under SAC 9986 and exempted under entry No. 54 (e) of Notification No. 12/2017 C.T (Rate) dated 28.06.2017. The said ruling was given under facts different from the facts of the applicant under consideration. In the present application, the applicant has rented the warehouse to the Lessee for storing agricultural produce for trading activity, whereas in the ruling relied by the applicant, the applicant is rendering service of storing and warehousing of agricultural produce co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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