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TMI Blog2023 (12) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... isha, would amount to rendering of service by way of job work as defined under Section 2(68)of the Central Goods and Service Tax Act, 2017 ("CGST Act") and Odisha Goods and Service Tax Act, 2017 ("OGST Act"). (ii) If, yes, then the said re-gasification service by way of job work classifiable under Entry (id) of Heading No. 9988 of SI. No. 26 of Notification No. 11/2017-CT (Rate) dated 28.06.2017 as amended vide Notification No. 20/2019-CT (Rate) dated 30.09.2019 and eligible for GST at the rate of 12%? 1.1 At the outset, we would like to make it clear that the provisions of both the CGST Act and the OGST 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 provision under the OGST Act. 2.0 Submission of the Applicant 2.1 The Applicant owns and operates a Liquefied Natural Gas (LNG) re-gasification terminal (hereinafter referred to as 'Terminal') at Dhamra in Bhadrak district of Odisha. Applicant provides re-gasification services to its Customers including Gail India Limited Odisha (GSTN 21AAACG1209J2Z7), GAIL India Limited, Utta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular No. 126/45/2019-GST [F. No. 354/150/2019-TRU] dated 22.11.2019 has clarified the scope of entry No. (id) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended by Notification No. 20/2019-Central Tax (Rate) dated 30.09.2019). In terms of the said clarification, entry at item (id) covers 'job work' services as defined in Section 2(68) of CGST Act, 2017, that is services by way of treatment or processing undertaken by a person on goods belonging to another registered person and the same is exigible to GST@12% ( SGST 6% + CGST 6%). Relevant extract of the said Circular No. 126/45/2019-GST [F. No. 354/150/2019-TRU] dated 22.11.2019 has been quoted by the Applicant in its statement submitted along with application for advance ruling. 2.5 Referring to the aforesaid classification of the CBIC, the Applicant has also stated that there is a clear demarcation between scope of the entries at item (id) and item (iv) under heading 9988 of Notification No. 11/2017- Central Tax (Rate) dated 28-6-2017. Entry at item (id) covers only job work services as defined in section 2(68) of CGST Act, 2017, that is, services by way of treatment or processing undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicability of a Notification issued under the provisions of the GST Act, 2017. We, therefore, observe that the issue before us is squarely covered under Section 97(2) of the CGST Act, 2017 and therefore we admit the application for consideration. 4.1 The main issue involved in this case is whether the applicant's activity of providing service of re-gasification of Liquified Natural Gas (LNG, under Chapter Heading - 27111100) owned by its customers (Who are registered under GST Act) to convert to Re-gasified LNG by raising the temperature of the received LNG in its plant at Dhamara and sending/delivering the RLNG back to its customers through pipelines (as per Job Work Service agreement), would amount to rendering of service of "Job Work" within the meaning of Section 2(68) of the CGST Act, 2017 and the OGST Act, 2017. If yes, then whether the said service of regasification by way of job work is classifiable under entry (id) of Heading No 9988 at SI. No. 26 of Notification No. 11/2017-CT (Rate) dated 28.06.2017, as amended vide Notification No. 20/2019- CT (Rate) dtd. 30.09.2019 and chargeable to GST @ 12% (SGST 6% and CGST 6%). 4.2 In this regard, we need to discuss the defi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... First Schedule to the Customs Tariff Act, 1975 (51 of 1975); (g) all products falling under Chapter 23 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), except dog and cat food put up for retail sale falling under tariff item 2309 1000 of the said Chapter; (i) manufacture of handicraft goods. Explanation.-The expression "handicraft goods" shall have the same meaning as assigned to it in the notification No. 32/2017 -Central Tax, dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 1158(E), dated the 15th September, 2017 as amended from time to time.] 2.5 - (ia) Services by way of job work in relation to- (a) manufacture of umbrella; (b) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6 per cent] 6 - (ib) Services by way of job work in relation to diamonds falling under Chapter 71 in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975); 0.75 - (ic) Services by way of job work in relation to bus body building. [Explanation.- For the purposes of this entry, the term ''bus body building" shall include building of body on ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mined. The entries at items (id) and (iv) under heading 9988 read as under: (3) (4) (5) (id) Services by way of job work other than (i), (ia), (ib) and (ic) above; 6 - (iv) Manufacturing services on physical inputs (goods) owned by others, other than (i), (ia), (ib), (ic), (id), (ii), (iia) and (iii) above. 9 - 3. Job work has been defined in CGST Act as under. "Job work means any treatment or processing undertaken by a person on goods belonging to another registered person and the expression 'job worker' shall be construed accordingly." , 4. In view of the above, it may be seen that there is a clear demarcation between scope of the entries at item (id) and item (iv) under heading 9988 of Notification No. 11/2017-Central Tax (Rate) dated 28-06-2017. Entry at item (id) covers only job work services as defined in section 2 (68) of CGST Act, 2017, that is, services by way of treatment or processing undertaken by a person on goods belonging to another registered person. On the other hand, the entry at item (iv) specifically excludes the services covered by entry at item (id), and therefore, covers only such services which are carried out on physical inputs (goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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