Applicant: M/s. Hilti Manufacturing India Pvt. Ltd.
AAR No. GUJ/GAAAR/APPEAL/2022/21
Authority: Gujarat Appellate Authority for Advance Ruling Goods and Services Tax
Order passed on: 27.09.2022
The Appellant herein has filed the appeal against the Advance Ruling No. GUJ/GAAR/R/26/2021 dated 09.07.2021. The Appellant have been granted approval from the Development Commissioner (KASEZ) to operate as an 100% Export Oriented Unit (EOU). The Foreign client provides products to the appellant for R & D purposes. The appellant carries out research and submits report to the clients.
The questions raised in advance ruling was regarding applicability of IGST or CGST and SGST on services provided by the applicant to the entities located outside India and whether is it eligible to be treated as ‘zero rated supply’ under section 16 of the IGST Act, 2017. The Gujrat Authority for Advance Ruling observed that the place of supply for services shall be the location where the services are actually performed i.e., the location of appellant and gave the ruling that the services do not merit to be covered under Section 13(2) of the IGST Act and the services are liable to CGST and SGST.
Aggrieved by the aforesaid advance ruling, the appellant filed this appeal and submitted that the goods sent by the client are getting consumed and no goods are sent back by the appellant to the foreign client.
However, the Appellant has mentioned wrong facts before the Authority for Advance Ruling and the correct facts are that the goods on which R & D carried out are manufactured in India by the appellant and the detailed report is provided to the foreign client after carrying out testing.
Judgment: Since, the appellant has now presented new facts which weren’t placed before the Authority for Advance Ruling and the ruling given by the Authority is based on different facts, the advance ruling given is not valid. The case is remanded back to the Gujarat Authority for Advance Ruling to issue necessary ruling after hearing the appellant afresh.
The complete order can be downloaded from this link: https://commercialtax.gujarat.gov.in/vatwebsite/download/cir_noti/advance_Ruling_Pdf/AAAR/21%20Hilti%20Manufacturing%20India%20Pvt%20Ltd.pdf
