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TMI Blog2024 (7) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... vironment and promotion of the ecological aspect or Social forestry or farm forestry . Therefore, Abhivahan Shulk has neither any connection with Urban forestry, protection of the environment and promotion of the ecological aspect [functions entrusted and as specified under SI. No. 8 to municipalities in the Eleventh Schedule read with Article 243W oi the Constitution of India] nor with Social forestry and farm forestry [functions entrusted and as specified under SI No 6 to Panchayats in the twelfth Schedule read with Article 243G of the Constitution of India] - the said Abhivahan permission shulk paid by the appellant is not eligible for NII. rate of GST, as provided under SI No. 4 5 of Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017. Whether each transaction of Abhivahan Shulk, being less than Rs. 5000/- per transaction, is exempt under SI. No. 9 of the Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017, as it is not covered by the definition of continuous supply of service u/s 2 (33) of the CGST Act 2017? - HELD THAT:- The appellant is a power generating company. The main raw material for generation of power is coal. The coal mines are situated in a fore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding GSTIN 2AADCC5772F1ZW. The main raw material for generation of power is coal A coal mine was allotted to company by the Ministry of Coal. GOI for extraction of coal to be used in generation of power The production from coal mine commenced from 01-12-2019 Coal mines are situated in a forest area, therefore, a levy of Rs. 15 per ton is payable to the Forest Department (as per the Forest Act and a notification issued vide F No. F06-02/2014/10-2 dated 30.06.2015 read with Chhattisgarh Abhivahan (Vanopaj) Niyam, 2001) for issuance of transit pass as clearance of the Coal which is called "Abhivahan Shulk." The amount payable to the Forest department is on 'per ton basis' and transit pass was issued on 'per vehicle basis' A vehicle normally consists of 12 to 30 tonnes of coal, thus per vehicle charges i e Abhivahan Shulk is normall', less than Rs 500/- per transit pass Considering the above. M's CSPGCL is of the opinion that no GST is payable on the "Abhivahan Shulk" collected by the Government of Chhattisgarh, under the provision of RCM. 3.2 In this backdrop, M/S CSPGCL. had applied for advance ruling on 21.01.2021 before the AAR, Chhattisgarh on the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s appeal dated 04.09 2021 under Section 100 of the CGGST Act, 2017, on the following grounds:- (i) The Authority for Advance ruling erred in holding that the amount paid by them to the Forest department of Chattisgarh as "Abhivahan Shulk" for obtaining permission for transit of coal from the forest area, is liable to GST at the applicable rate and is not liable to NIL rate of tax provided under SI. No. 4 and 5 of the Notification No. 12/2017-Central tax (Rate), dated 28.06.2017, being not covered under the functions envisaged under Article 243G and 243 W of the Constitution of India without appreciating the facts of the case. (ii) The Authority for Advance ruling also erred in holding that the applicant is not eligible for NIL rate of tax on the said Abhivahan Shulk provided under SI No 9 of the Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 unjustifiably. 6. Questions raised before the AAAR:- (i) Whether amount paid to the Forest Department as Abhivahan Permission Shulk is liable to be taxed under GST or exempt as per the SI. No. 4 and 5 of the Notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 being in the nature of pure sendee and same is used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines having bearing on the issue in hand and raised by the appellant, we proceed to decide the case in accordance with the law 8.2 Further, during the hearings, the appellant was asked to submit the evidences such as Abhivahan Shulk slip, invoices raised in the matter and copy of any notification, available, if any. But despite giving a reasonable time they have failed to submit Abhivahan Shulk slip and invoice raised by the forest department. Now, therefore, we have carefully gone through the submissions made by the appellant in his application as well as the submissions made at the time of personal hearing. The appellant has requested for advance ruling on two different issues which are mentioned in Sr No (i) & (ii) of the Para No. 6 above and discussed as under 8.3 The appellant is a power generating company for which main raw material i.e., coal is extracted from a coal mine, situated in a forest area. The appellant is required to pay Rs. 15/- per ton to the Forest Department for issue of transit pass which is called 'Abhivahan Shulk'. The appellant contended that the amount paid to the Forest department as Abhivahan permission shulk is exempted under GST as per the S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of India in relation to the matters listed in the Twelfth Schedule are reproduced herein below: "…………….. …………….. 7. Fire 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally ..................." 8.5 We have also gone through the provisions of Chhattisgarh Abhivahan (Vanopaj) Niyam, 2001 and Indian Forest Act. 1927. As per Section 2 (4) & (6A) of the Indian Forest Act, 1927 as amended provides that all produces from the mines, if extracted from forest land or transported through forest area shall be called forest produce. As per Rule 3 of Chhattisgarh Transit (Forest Produce) Rules, 2001, a transit pass is mandatory for transportation of any forest produce from forest land and is issued by Forest Department after payment of prescribed transit fee. 8.6 We find that these rules grams the authority/power to forest department to demand transit fees or Abhivahan Shulk from individuals for removal of forest produce and from vehicles used for transporting such forest produce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 28.06.2017 reads as under: G.S R...(E).-In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (2) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely:- Table: SI. No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 9 Chapter 99 Services provided by Central Government, State Government, Union territory or a local authority where the consideration for such services does not exceed five thousand rupees: Provided that nothing contained in this entry shall appl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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