9911796707
TMI Blog2024 (10) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Services Tax Act and the Tamil Nadu Goods and Services Tax Act (herein referred to as the 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. M/s Kailash Vahan Private Limited S.No. 391A/1, 3-6, 393, Walajabad Sunguvarchatram Road, Kattavakkam, Kancheepuram, Tamil Nadu-631604, thereinafter called as 'the Applicant') is engaged in body building activity on JOB WORK Basis, on Chassis owned and supplied by the Customer / Principal (Who may be independent customer who buy chassis from OEM and send for body building or it can be by OEM i.e. Manufacturer of chassis who sends for body building activity), to make it as fully Body built vehicle for Truck / Tipper / Dumper application (Which are for carrying goods) and which body built vehicle" will also be owned by the principal, who sends the chassis on FOC basis for job work. They ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omer is indeed a job work activity attracting levy of 18% as "Supply of Services, since the said complete body-built vehicle is also owned by the customer who also owns the chassis and hence, by this application before the Hon'ble Advance Ruling authority Applicant seeks ruling to treat the said body building activity as Supply of Services attracting 18% GST. 4.3. The applicant submits that the chassis manufacturer i.e OEM's also intend to place order on the applicant and have such body building activity of the chassis owned by them so that complete body built vehicle owned by them is supplied to them after the applicant carries out job work activity of body building on the chassis owned by them, but OEM's are insisting on seeking advance ruling before they send their chassis for such body building activity. That presently, applicant is only supplying body to such OEM's as supply of body under CH-8707 paying 28% GST, but once the present advance ruling application is decided, the applicant would like to build the body on the chassis supplied by OEM's as well, regarding the body building activity as job work and supply of services u/s 7 of CGST/TNGST act, 2017 attracting 18% levy o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on such service. Thus, fabrication of buses may involve the following two situations: a) Bus body builder builds a bus, working on the chassis owned by him and supplies the built-up bus to the customer, and charges the customer for the value of the bus. b) Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work). 12.3 In the above context, it is hereby clarified that in case as mentioned at Para 12.2(a) above, the supply made is that of bus, and accordingly supply would attract GST @28%. In the case as mentioned at Para 12.2(b) above, fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and 18% GST as applicable will be charged accordingly." 4.6. The applicant submitted that vide Notification No. 26/2019-Central Tax (Rate) dated 22nd November, 2019 and explanation provided states as - "Explanation- For the purposes of this entry, the term "bus body building" shall include building of body on chassis of any vehicle falling under chapter 87 in the First ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d accessories manufacturing services Notification No. 11/2017-Central Tax Rate F.No. 354/117/2017-TRU Dated 28th June, 2017-Annexure giving Classification Annexure : Scheme of Classification of Services S.No. Chapter, Section, Heading or Group Service Code (Tariff) Service Description (1) (2) (3) (4) 534 Group 99888 Transport equipment manufacturing services 535 998881 Motor vehicle and trailer manufacturing services 4.9 The applicant submitted that the they are seeking advance ruling on the core issue as to whether the classification of body building activity on the chassis (meant for carrying goods) owned and provided by the principal (who is ether independent customer who buy the chassis from OEM and send for body building or Chassis sent by OEM i.e. manufacturer of chassis who sends for body building activity) could be regarded as 'job work" as "Supply of Service" and in terms of Para No. 12.1, 12.2(b) and 12.3 of Circular No. 52/26/2018-GST dated 09.08.2018, as Applicant activity also is akin to the one referred to in the said Circular and by various Advance Ruling on the said issue of body building activity carried on the Chassis supplied by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-18/2018-19 1929 dtd. 21.08.2018 2018 (18) G.S.T.L. 359 (A.A.R. GST). 5.1 The applicant is under the administrative control of State. The concerned authorities of the Centre and State were addressed to report if there are any pending proceedings against the applicant on the issues raised by the applicant in the ARA application and for comments on the issues raised. 5.2 The concerned Central authority vide letter GEXCOM/TECH/GST/ 2315/2023-TECH dated 27.07.2023, informed there is no pending proceeding on the applicant under any of the provisions of the GST Act, 2017. Further the Central Authority stated that as per para 12 of CBIC Circular No. 52/26/2018-GST dated 9th August 2018, the CBIC had clarified the applicability of GST on job work services, in respect of "Body building activity carried out on chassis for Bus" and requested that the advance ruling application be disposed of as per the guidelines given in the above said circular. 5.3 The State jurisdiction Officer viz. the Assistant Commissioner (ST), Kancheepuram Rural Assessment Circle, vide reference No. in Rc. 150/2024/A2, dated: 19.09.2024, states that - "Tvl. Kailash Vahn Private Limited S.No.391A/1, 3-6,393, Wala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der 8707 - as "Bodies (including cabs), for the motor vehicles or headings 8701 to 8705", attracting % (CGST @ 14% + SGST @ 14%) as per Sl. No. 169 or Schedule-IV to the Notification No. 1/2017-C.T. dated 28-6-2017. Remarks: The taxpayer has doing supply of Goods falling under HSN code 8707 at 28% In respect of this question, submit that the Definition in section 2 (68) says that Job work means any treatment or process undertaken by a person on goods belonging to another registered person and the expression "job worker" shall be construed accordingly. In this issue, the tax payer has doing body building on chassis supplied by the principal that means, the chassis is provided by the Principal, and the body is built on by the tax payer. After the body building activity, due end product is arose, which is a fully built vehicle, is a tangible good. The body building process transforms the chassis into a complete vehicle, which can be seen as a manufacturing activity resulting in a new product. Hence it should be classified under this heading (HSN 8707) attracting 28% GST. And also During the body building process, the body builder has control over the materials and the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of GST, will be at 18 % (9 +9) as applicable under Sri. No. 26 (ic) or will it be 18% (9+9) as applicable under Sl. No.26 (iv) 3) Or will the activity of body building carried out on Chassis belonging to and Supplied by Principal is to be regarded as Supply of goods failing under 8707 as "Bodies (including cabs), for the motor vehicles of headings 8701 to 8705" attracting 28 % (CGST@ 14% + SGST as per Sl. No. 169 of Schedule IV to the Notification No. 1/2017-CT (R) dt. 28.06.2017. 7.3. We find that the applicant submits that they are engaged in the field of fabrication and truck body building, wherein independent private customer, buy chassis from Chassis manufacturer (also referred to as OEM's), which is sent to the applicant for the purpose of body building activity of Tipper version Motor vehicle falling under Chapter 87 as complete motor vehicle, which belongs to such customer and the customer owns the chassis and also owns complete body built vehicle and which is also registered in RTO in the name of such independent private customer. The applicant further submits that the chassis manufacturer i.e OEM's also intend to place order on the applicant and have such body buildi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor vehicles for the transport of ten or more persons, including the driver] fall under headings 8702 and attract 28% GST. Further, chassis fitted with engines [8705] and whole bodies (including cabs) for buses [8707] also attract 28% GST. In this context, it is mentioned that the services of bus body fabrication on job work basis attracts 18% GST on such service. Thus, fabrication of buses may involve the following two situations: a) Bus body builder builds a bus, working on the chassis owned by him and supplies the built-up bus to the customer, and charges the customer for the value of the bus. b) Bus body builder builds body on chassis provided by the principal for body building, and charges fabrication charges (including certain material that was consumed during the process of job-work). 12.3 In the above context, it is hereby clarified that in case as mentioned at Para 12.2(a) above, the supply made is that of bus, and accordingly supply would attract GST @28%. In the case as mentioned at Para 12.2(b) above, fabrication of body on chassis provided by the principal (not on account of body builder), the supply would merit classification as service, and 18% GST as applicabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... definition of Job Work provided under Section 2 (68) of CGST Act 2017, "job work" means any treatment or process undertaken by a person on goods belonging to another registered persons and the expression "job worker" shall be construed accordingly. Hence, in as much as the treatment or process is undertaken on the goods belonging to un-registered person the same does not qualify to be job work. 7.12. We find that the above position has also been clarified under Circular No. 126/45/2019-GST dated 22.11.2019 and the relevant text of the clarification is as follows: 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 (g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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