9911796707
TMI Blog2023 (12) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... ian Oil Corporation Limited, Odisha (GSTN 21AAACI1681G1Z1). It is noted that LNG is goods classified at HSN 2711. Further, it is found that the processed goods (RLNG) is to be supplied back to the customers of the Applicant within one year (as declared by the Applicant). So, all the pre-requisites are apparently satisfied for an activity to be 'Job work'. Government Circular No. 126/45/2019-GST dated 2211-19 has clarified this issue beyond any doubt. Hence, the subject activity of conversion of LNG to RLNG merits to be covered at entry 'id' of Heading 9988 at SI. No. 26 of Notification No. 11/2017-CT (rate) dated 28.06.2017 as amended. - SRI GOPAL KRISHNA PATI, IRS, AND SRI P.K. MOHANTY, OFS(SS), MEMBER Present for the Applicant in the Personal Hearing : Anil Chauhan, AS Subject: M/s. Dhamra LNG Terminal Private Limited (herein after referred to as the 'Applicant') having principal place of business at Dhamra Port Company Limited, Dhamra, Bhadrak, Odisha, 756171 a registered Company bearing GSTIN 21AAFCD2856B1ZD has filed an application for advance ruling under Section 97 of CGST Act, 2017 and Section 97 of the OGST Act, 2017 in FORM GST A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the scope of the re-gasification services as per said agreement encompasses the following activities: i. The Applicant receives LNG (owned and imported by Customer), un-loaded from LNG ship at the Custody transfer point. Special types of pipes are used to transfer LNG from the ships to the storage tanks on the terminal. The LNG gas is received at an extremely low temperature (-160 C) while transferring to the tanks. ii. The LNG passes through the pipelines that joins the arms to the special cryogenic tanks and is stored inside the tanks at a temperature of -160 C. iii. Re-gasification is the process of converting LNG gas from liquid state to gaseous state. For re-gasification, LNG stored in the tanks is passed through Shell and Tube Vaporisers (STV) in tubes. STV contains heated glycol water which is at higher temperature than LNG and thus increases the temperature of the LNG in the tubes and converts LNG into RLNG. During extreme winters, Submerged Combustion Vaporisers (SCV) are also used for converting LNG into RLNG. The SCV is composed of warm water tank where a stainless-steel tube bundle is submerged. The water of tank is directly heated from a submerged combu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J3Z2), Indian oil Corporation Limited, Odisha (GSTN 21AAACI1681G1Z1). In view of the clarification issued by CBIC vide Circular No. 126/45/2019-GST dated 22.11.2019, Applicant understands that the subject activity of re-gasification of LNG (of chapter heading 2711) owned by its GST registered customer/s, is covered under entry (id) of Heading 9988 at Sr. No. 26 of Notification No. 11/2017-CT (Rate) dated 28.06.2017 (as amended) and is liable to CGST at 6%. 3.0 The personal hearing was fixed on 19.06.2023 under due intimation to the Applicant, the jurisdictional officer of State GST jurisdictional officer of Central GST (intimated through their respective Commissionerates along with a copy of application and the written submission of the Applicant). The Applicant, through its representative Shri Anil Chauhan, Authorized Signatory appeared for personal hearing. Shri Chauhan re-iterated the submissions already furnished along with application for advance ruling. The Revenue has neither submitted its comments nor appeared for personal hearing. 3.1 During personal hearing the Applicant was asked to submit sample copies of invoice format of job work services. Tolling agreement wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the subject activity of conversion of LNG into RLNG is a process undertaken by the Applicant on LNG belonging to other GST Registered persons, namely Gail India Limited Odisha (GSTN 21AAACG1209J2Z7), GAIL India Limited, Uttar Pradesh (GSTN 09AAACG1209J3ZS), GAIL India Limited, Madhya Pradesh (GSTN 23AAACG1209J4Z1 / 23AAACG1209J3Z2), Indian Oil Corporation Limited, Odisha (GSTN 21AAACI1681G1Z1). We note that LNG is goods classified at HSN 2711. Further, we find that the processed goods (RLNG) is to be supplied back to the customers of the Applicant within one year (as declared by the Applicant). So, all the pre-requisites are apparently satisfied for an activity to be 'Job work'. 4.4 Heading 9988 at Sr. No. 26 of Notification No. 11/2017-CT (Rate) dated 28.06.2017 (as amended), provides rate applicable to description of services mentioned against the said heading. Relevant extract of the said Notification is reproduced herein. SI.No. Chapter, Section or Heading Description of Service Rate (Percent) Condition 26 Heading 9988 (Manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 - (id) Services by way of job work other than (i), (ia), (ib), (ic) and (ica) above; 6 - (ii) Services by way of any treatment or process on goods belonging to another person, in relation to (a) printing of newspapers; (b) printing of books (including Braille books), journals and periodicals. 74[(c) printing of all goods falling under Chapter 48 or 49, which attract CGST @ 2.5 per cent or Nil.] 2.5 - (iia) Services by way of any treatment or process on goods belonging to another person, in relation to printing of all goods falling under Chapter 48 or 49, which attract CGST @ 6 per cent. 6 - (iii) Tailoring services 2.5 - (iv) Manufacturing services on physical inputs (goods) owned by others, other than [(i), (ia), (ib), (ic), (ica), (id), (ii), (iia) and (iii)] above. 9 - 4.5 Towards the Applicant's claim that CBIC, vide Ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices 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) which are owned by persons other than those registered under the CGST Act . 4.6 We find that the aforesaid Government Circular No. 126/45/2019-GST dated 2211-19 has clarified this issue beyond any doubt. Hence, we hold that subject activity of conversion of LNG to RLNG merits to be covered at entry 'id' of Heading 9988 at SI. No. 26 of Notification No. 11/2017-CT (rate) dated 28.06.2017. as amended. 5.0 We, therefore, issue the Ruling: RULING 6.0 The Applicant's activity of re-gasification of LNG owned by its GST registered customers amounts to rendering of service by way of Job Work and merits to be covered at entry 'id' of Heading 9988 at SI. No. 26 of Notification No. 11/2017-CT (rate) dated 28.06.2017, as amended and as such is liable to GST at 12%. 7.0 The Applicant or jurisdictional officer, if aggrieved by the ruling, may appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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