Page 101 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : INTERNATIONAL FLOWER AUCTION BANGALORE LTD. 611
serial number. - It is clear from Section 2(5) of Central Goods and Services Tax Act,
2017 that there are several kinds of mercantile agents, such as broker, factor, commission
agent, Auctioneer, del creder agent, arhatia, etc. The common factor is that all the above
types of mercantile agents carry on the business of supply or receipt of goods and services
on behalf of another person. However, the nature of activities done by each of the agents
mentioned above are different. Nature of activities done by an auctioneer and a commis-
sion agent are fundamentally different even though both perform their functions on be-
half of the principal. [paras 17, 18, 19, 20, 21, 23]
Appeal allowed
CASES CITED
Authorised Officer v. S. Naganatha Ayyar — Order of Supreme Court
— Referred .................................................................................................................................... [Para 10.2]
T.V. Abdul Nazar v. P.K. Mohammed Kutty
— 1985 (7) TMI 381 - Kerala High Court — Referred ............................................................ [Para 10.2]
DEPARTMENTAL CLARIFICATION CITED
C.B.I. & C. Circular No. 57/31/2018-GST, dated 4-9-2018 ................................................................ [Para 18]
REPRESENTED BY : Smt. Sashi Krishna, Superintendent of CGST,
Authorized Representative, for the Assessee.
[Order]. - Proceedings : At the outset we would like to make it clear that
the provisions of CGST Act, 2017 and SGST Act, 2017 are in pari materia and have
the same provisions in like matter and differ from each other only on a few spe-
cific provisions. Therefore, unless a mention is particularly made to such dissimi-
lar provisions, a reference to the CGST Act would also mean reference to the cor-
responding similar provisions in the KGST Act.
2. The present appeal has been filed under Section 100 of the Central
Goods and Services Tax Act, 2017 and Karnataka Goods and Services Tax Act,
2017 (hereinafter referred to as CGST Act, 2017 and SGST Act, 2017) by the
Commissioner of Central Tax, Bangalore North Commissionerate, (hereinafter
referred to as Appellant) against the Advance Ruling No. KAR/ADRG 87/2019,
dated 26th Sept., 2019 [2019 (30) G.S.T.L. 366 (A.A.R. - GST)].
Brief facts of the case :
3. M/s. International Flower Auction Bangalore Limited, having
GSTIN 29AABCI2041M2ZI, (hereinafter referred to as ‘Respondent Company’) is
a joint venture company of private and public shareholders established with a
prime objective to auction high quality cut flowers of various flower crops on a
daily basis. The respondent company is engaged in facilitating growers to auc-
tion their flowers at its platform and buyers would come in person and check
quality and bid. The growers and the buyers are registered as members with the
respondent company. The growers bring flowers to the premises of the respond-
ent company and the same would be placed in lots and samples would be identi-
fied. The buyers would verify the lot and they would make their bids. The lowest
rate at which the goods could be sold i.e. minimum price is fixed by the grow-
er/supplier and the maximum price is fixed by the respondent company consid-
ering the demand for flowers.
4. The respondent company has deployed “Dutch Auction” System in
which the Digital Auction Clock runs in the decreasing order and the price per
stem reduces from maximum to minimum. The unsold flowers would be reauc-
tioned on the next day after completing the auction of that day’s flowers. Even

GST LAW TIMES  26th March 2020  197