Page 115 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : AUTOMATIVE COMPONENTS TECHNOLOGY INDIA PVT. LTD. 625
laration and in the ‘Tool Ownership Certifacte’, it is stated that the moulds and
tools shall upon completion of the cycle life of the moulds be disposed of in the
premises of such parts manufacturer as may be agreed in the future between the
parties/approval of Nissan Motors India Pvt. Ltd. The applicant has not fur-
nished the agreement between the parties stating that the same is not traceable
and has further stated that the modus of transaction is evidenced from the Pur-
chase Order, Invoice, Tool Ownership Certificate, etc. described above. From the
documents and averments of the applicant, the transaction involved requiring
the clarification by the applicant is that the title in the moulds got manufactured
by the applicant are transferred to the applicant and thereupon to the applicants’
vendor by way of declaration and against invoice indicating the consideration for
the moulds. The moulds/tools remain with the manufacturer for manufacturing
the parts, i.e., the moulds are supplied free of cost to the parts manufacturer and
it is stated that the cost of the moulds are not amortised in the parts cost.
6.3 Having seen the factual position, the relevant statutory provisions
are examined as under. Supply is defined under Section 7 of the CGST Act, 2017
and the same is reproduced below for reference :
7. (1) For the purposes of this Act, the expression “supply“ includes -
(a) all forms of supply of goods or services or both such as sale,
transfer, barter, exchange, licence, rental, lease or disposal
made or agreed to be made for a consideration by a person in
the course or furtherance of business;
(b) import of services for a consideration whether or not in the
course or furtherance of business; and
(c) the activities specified in Schedule I, made or agreed to be
made without a consideration;
(1A) where certain activities or transactions constitute a supply in accord-
ance with the provisions of sub-section (1), they shall be treated either as
supply of goods or supply of services as referred to in Schedule II.;
Schedule II determines the list of activities to be considered as supply of
goods/Services and Entry Sl. No. 1 is as follows :
1. Transfer
(a) any transfer of the title in goods is a supply of goods;
From the above, it is evident that ‘transfer of the title in goods’ is supply of
goods. In the case at hand there is transfer in title of moulds for a consideration
and the supply is in the course of business therefore, the same constitutes supply
of goods and GST is liable to be paid on such supply.
7. In view of the above, we rule as under :
Ruling
(1) GST is applicable on the transfer of title in moulds from the appli-
cant to the Indian buyer
(2) The question is not answered as the same is not in the ambit of this
authority as per Section 97(2) of the Act.

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GST LAW TIMES  26th March 2020  211