Page 113 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : AUTOMATIVE COMPONENTS TECHNOLOGY INDIA PVT. LTD. 623
 The mould/tool shall be disposed of in the premises of MSC Thai-
land as may be agreed in the future and no consideration shall be
received by the applicant nor NMIPL after the lifecycle of the
mould/tool as it attributes no value.
 The agreement is not traceable by the applicant nor NMIPL due to
change in the management and the earlier staff members are not
currently employed with the applicant and NMIPL. However, there
are no changes in the modus of transaction as evident from the doc-
uments viz., Purchase Order, Invoice, tool ownership certificate, etc.
4. The applicant is under the administrative control of State. The said
jurisdictional authority was addressed to report if there are any pending pro-
ceedings in the applicant’s case on the issues raised by the applicant in the ARA
application and for comments on the issues raised. The said authority did not
furnish any report and also has not furnished any comments. Hence, it is con-
strued that there is no proceedings pending in the case of the applicant on the
questions seeking Advance Ruling before us.
5.1 We have carefully considered the various submissions made by the
applicant. We find that the applicant is engaged in the supply of automotive
components. They have stated that they agree to supply certain parts, including
moulds to Indian company located in the State of Tamil Nadu, for which they
place an order for manufacturing the said parts and moulds on a Thailand com-
pany. The parts manufactured are physically imported, while the moulds devel-
oped are retained in Thailand and are not physically imported into India, but the
ownership in the mould is transferred from the foreign supplier to the Applicant
and from the applicant to the Indian buyer by raising of separate invoices. In
view of the above the applicant has raised the following questions :
(1) Whether GST will be applicable on the transfer of title in moulds
from applicant to Indian buyer?
(2) If yes, whether the Indian buyer would be eligible to take credit of
the GST paid to the applicant for said purchase?
5.2 The definition of ‘advance Ruling’ under Section 95(a) of
CGST/TNGST Act is given below for ease of reference -
(a) “advance ruling “ means a decision provided by the Authority or the
Appellate Authority to an applicant on matters or on questions specified in
sub-section (2) of Section 97 or sub-section (1) of Section 100, in relation to
the supply of goods or services or both being undertaken or proposed to be
undertaken by the applicant;
Section 97(2) of the CGST Act/Tamil Nadu GST Act (TNGST) gives the scope of
Advance Ruling Authority, i.e., the question on which the Advance Ruling can
be sought. For ease of reference, the section is reproduced as under :
97(2) The question on which the advance ruling is sought under this Act,
shall be in respect of, -
(a) classification of any goods or services or both;
(b) applicability of a notification issued under the provisions of this Act;
(c) determination of time and value of supply of goods or services or
both;

GST LAW TIMES  26th March 2020  209