Page 152 - GSTL_26th March 2020_Vol 34_Part 4

662 GST LAW TIMES [ Vol. 34
Act. Further to the earlier, henceforth for the purposes of this Advance Ruling,
the expression ‘GST Act’ would mean CGST Act and MGST Act.
2. Facts and contention - As per the applicant :
The submissions made by the applicant is as under :-
2.1 Mr. Mayank Jain (Applicant), registered under GST Laws, has en-
tered into contract with M/s. Laxmi Kattha Udhyog Pvt. Ltd. a company regis-
tered in NEPAL for providing Cargo Handling Services for its goods imported
into Nepal from Vietnam.
2.2 As per the terms of agreement, applicant is required to monitor the
loading, inspection of quality of the goods, weight inspection, at the source des-
tination, monitor shipping from Vietnam to Nepal.
2.3 The goods are imported to Nepal through sea route via Vishakha-
patnam/Kolkata Port. Since NEPAL is land locked country, it has entered into
Treaty of Transit with India for freedom of transit including permanent access to
and from the sea to promote international trade. The bilateral Treaty of Transit
and its Protocol and Memorandum prescribe in detail the cargo clearance proce-
dures, customs processing of documents, mode of transport, transit route, border
entry points and duty insurance requirements.
2.4 The goods are shipped from Vietnam Port to Vishakhapat-
nam/Kolkata. On arrival the goods are sealed by the Nepal custom officer at
Vishakhapatnam port by an electronic lock and directly sent to Nepal borders for
further action. On arrival in Nepal border, the custom officers open the Electron-
ic lock and clear the shipment. Though the goods enter into India but as per the
Treaty the Traffic-in-transit shall be exempt from Customs duty and from all
transit duties and charges.
2.5 The applicant is required to coordinate with the agencies at Cus-
toms station at port for its clearance for further transhipment. Further, the appli-
cant assists the company at border check post of Nepal for its onward movement
to the factory of company. Thus services are provided by applicant at the Cus-
toms station at port and at border check post of both the source and destination
countries. For the services so provided, the company pays the applicant fees in
foreign currency or its equivalent currency in INR.
2.6 The applicant has reproduced the provisions of Section 2(6) of the
IGST Act and submitted that all the conditions mentioned therein are satisfied by
them and therefore the services proposed to be rendered by the applicant would
be covered under the definition of “Zero-Rated Supply”.
3. Contention - As per the jurisdictional officer :
The submissions made by the jurisdictional officer are as under :-
3.1 It is submitted that the applicant satisfied all the conditions pertain-
ing to Export of Services as per Section 2(6) of the Integrated Goods & Services
Tax Act, 2017.
3.2 The payment for services rendered by the applicant will be received
in equivalent INR and they have not submitted any documentary proof whether
the RBI has allowed payment in Indian currency.
4. Hearing :
Preliminary hearing in the matter was held on 2-1-2020. Mr. Mayank
Jain, Proprietor and Mr. Milind Patel, CA, appeared and requested for admission
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