Remanded

AAAR/AP/01(GST)/2018 of M/s Fairmacs Ship Store Pvt. Ltd.

GST AAAR31 May 2018AAAR/AP/01(GST)/2018

Case brief

AI extract

What is this about?

This order disposed of an appeal against an Advance Ruling by remanding the matter to the Authority for a fresh ruling on whether the appellant's transactions qualify for VAT exemption. The court found a new issue raised in the appeal had not been placed before the Authority.

What did the court decide?

Matter remanded back to the Advance Ruling Authority to decide whether the transactions fall under export (zero-rated) or not.

AAAR/AP/01(GST)/2018 of M/s Fairmacs Ship Store Pvt. Ltd. — GST and Indirect Tax | GST AAAR (2018)

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.TE AUTHORITY^{FOR ADVANCERULING} BEFORE^{THE APP} For the Stote f Andhro Prodesh^{(Goodsond Service Tox)} (Office ot O/o^{Chief C} issionerofCentrolTox&Customs,lstFloor'GSTBhowon' Port Arecr, potnom, Andhrcr Prodesh -^530035)

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Present:

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Sri. Y.S SHAHRAWAT,^{(Member)(Centrollox)}

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YAMALA RAO,^{(Member)(Siote Tox)}

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The 31st doY^{of MoY201i3}

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Order /AAR/AP/^{0l (GI}T)/2018} ln plicoiion No.AAR/0^{I (GST)/201 B}

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M/s Foirmocs^{ShipStores; Privote Limlted} (GSTIN: 3TAAACFI^{406C I ZC)}

Sri. K.V.G.L.N^Sos

Dote of

ORDER:

L M/s Foirmocs^S rStoresPrivoteLirnite<j,GSTIN:I37AAACFl406ClZC, ferred os on^{oppellcrnt),ore engoged in operotions of} (hereinofter olso speciol wore edworehousingoflSoodslikecosmetics,ioiletries,food actioneries^{ond cigorette:, etc', oll the soid goods ore} products like c imported from^f ign countries ondtlso^{from the units estoblishedby the} r6s locoled^{in Speci'clEconomlcZones ond keeps the} foreign monuf some in cus'toms house ond^{mokes suPP|Y to-}

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Oceon^{going merchontvesselson foreign run'} lndion Novol^ShiPs lndionCoostGuordlship:;orfromtheirouthorizedogents.

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2' The oppellont hod filed on opplicotion before the Appellote Auihority for Advonce Ruling, in Form GST ARA-02, d,:ted 06.03.20lg, for review of the rt.,tii..g possed by the Advonce Ruring Authority, vide ruring no.AAR/Ap/or(GSTI 2017 ,doled 25th Jon 20 I 8,

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The issues on which the oppellont filed opplicotion before the Advonce Ruling Authority ore os follows:

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(i) Whether they ore exempted from tox under GST on their outword supplies mode to oceon going merchont vessels on foreign run, lndion Novol Ships ond lndion Coost Guord Ships or not?

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(ii) lf of oll they ore lioble for GST on threir outwcrrd supplies whether they con collect ihe GST from the recipient for the goods nomely;

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. Ocecln going merchont vessels on foreign run.

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. lndion Novol Ships

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. lndion coost Guord Ships or from iheir outhorized ogenls.

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The Advonce Ruling Authority, ofter coreful considerotion, hod ruled obove question os follows:

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(i) The oppliconf ore nol exem pted from to:< un<Jer GST on their outword supp/ies mode lo oceon going merchont vesse/s on foreign run, lndion novol Ships ond lndion Coosl Guord Ships.

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(ii) Ihe opplicont con co//ecf /he opplicoble GS7 from their cusfomers, in cose it is not exporfs, however, in cose of exporls the c>ption /ies wiih fhe oppliconl bosed on monner of exporfs, i.e. whether they intend lo expo rt under bond or on poyment of tox.

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Aggrieved to the ruling the Appellont filed oppeol before this outhority. tt is further submitted thot the Advonce Ruling Authority observed in the ruling thol in poro 5.1 os under.

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/.n.1,^{*9 hoY"-.observed thot, of best some of tlre suppliesof opplicontmoy foll} - under the definition of 'exports' which is corrsidered o zero roted supply, however ,,

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the some is not within the prerogotive of preseni opplicotion.

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The oppellont pleoded thcrt ihe ARA hos not r:lorified whcrt ore the tronsoctions thot foll under zero roted on the ground thot some is not wiihin the prerogotive of preseni opplicotion. lt is olso mentioned thol the Advonce Ruling nlthority hos not considered the Circulor .No 21131163 Cus.lV, Doted 17rn Aug liOO. ffrey submitted thottheoboveobservotionoftheARAisnotcorreffiw.

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Further, they hove requested to decide 'whethe.r the tronsociions mode by the oppellont folls under export (zero roted) or not.' , which is not o pleo before the Advonce Ruling Authority.

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A Oersonol^{heoring is colled for on 29th MaY 2O18' Sri' K'V'G'L'N Sostry' outhorized} rcpi.esentotive^{of oppellont hos oppeoredbeforethis outhority ond submlttedthe} focts of the^{tronsoctions ond requestedto crorify whetherthe tronsociionfolls under} 'expori' or not.

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The opplicont hos^{roisedo new issue for clorificotion,which wos not plocedbefore} the Advonce Ruling^{Authority,i.e. to decldewlretherthe tronsoctionsore export} (zero roted) or not. Hence,^{we direct the ArlvonceRuling Authority to issue} r. Accordingly, the^{motteris remonded bock to Advonce} Ruling AuthoritY.

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Sd/ (YS Shohrowot)
Sd/-(J Syomolo Roo )
Chief Commissioner (Centrol Toxes)
Chief Commissioner (Stote Ioxes)
Member
Member
lli.<>.f .b.oll

AAAR/AP/01(GST)/2018 of M/s Fairmacs Ship Store Pvt. Ltd.

Case brief

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AAAR/AP/01(GST)/2018 of M/s Fairmacs Ship Store Pvt. Ltd.

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