Page 112 - GSTL_26th March 2020_Vol 34_Part 4

622 GST LAW TIMES [ Vol. 34
they will clarify the reason for use of tools for third party. They also stated that
they will send all purchase order/MOU agreements for supply of the
moulds/rigs and parts manufactured out of these moulds between the applicant
and the recipient. They also stated that they will submit the details of disposal of
such moulds in the past and any agreements/documentation with the recipient.
They further undertook to submit details of how the supply of these moulds
were dealt with under Central Excise. They requested time of 3 weeks and re-
quested for another hearing after submission of documents. In the written sub-
missions furnished by the applicant, they had furnished :
(i) Sample invoice raised by the applicant for supply of tools and
moulds to Nissan Motor India Pvt. Ltd. (NMIPL)
(ii) Declaration
(iii) Tool ownership certificate issued by the applicant to NMIPL
(iv) Pictures of name plate affixed in the tools and moulds indicating it
is property of NMIPL
(v) Brief Submissions
(vi) Copy of AAR rulings, Maharashtra in r/o INA Bearings India (P)
Ltd.
3.2 As per the applicant request another opportunity of hearing was ex-
tended and the authorised representative was heard on 26-9-2019. The author-
ized representative of the applicant submitted a written submission by the appli-
cant clarifying the question raised in the previous hearing. They also submitted
purchase order for the tools in which advance ruling is sought. It was conveyed
that the second question raised by the applicant which is on the availment of in-
put tax credit by the buyer cannot be answered as not in the purview of Advance
Ruling.
3.3 In the written submissions, it is stated as follows :
 M/s. Nissan Motors India Pvt. Ltd. [in short NMIPL] had placed an
order for manufacture of tool/mould basis which the applicant has
placed an order for manufacturing the same with MSC Thailand.
 The “Tool Ownership Certificate’ is issued by the applicant on
NMIPL as transfer of title in ownership of tools on payment of con-
sideration. The tools shall be property of NMIPL only.
 NMIPL have allowed utilization of tool/mould for manufacturing
parts which are commonly used among vehicles manufactured by
NMIPL, Renault Nissan Automative India Pvt. Ltd., Renault India
Pvt. Ltd. Thus, the ‘Tool Ownership Certificate’ states that the tools
shall be used exclusively for production of parts for
NMIPL/RNAIPL/RIPL.
 There is no supply of mould by the applicant to RNAIPL or RIPL in
the transaction. The mould shall be the exclusive property of
NMIPL.
 No such taxable event had occurred in the VAT/excise regime and
thus no invoices/documents were raised by the applicant.
 The cost of the mould has not been amortized in the present trans-
action. The price of the manufactured mould/tools has been re-
ceived by the applicant by raising a separate invoice.
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