Page 163 - GSTL_26th March 2020_Vol 34_Part 4

2020 ] IN RE : YKK INDIA PVT. LTD. 673
(b) GST charged by the Contractor for hiring of cars for transpor-
tation of employees?
Comments of the concerned officer U/s. 98(1) of the CGST/HGST Act, 2012
7. The Deputy Excise & Taxation Commissioner (S.T.), Rewari, vide let-
ter Ref. No. SPL-1/ETO (W-4), dated 18-6-2018, submitted the requisite com-
ments on both the above questions raised by the applicant, as under :
The dealer is entitled to take credit of GST charged by the contractor on
hiring of buses and cars to the Applicant which are used for transporta-
tion of its employees to the factories. It is submitted that the dealer is reg-
istered person engaged in the business of supply of final products which
are taxable under the Act. Further, for the purpose of supply of the said
final products, the dealer has employed various employees who work in
various shifts at the said factories and it is for transportation of the said
employees that the Applicant has contracted with the contractors for
supply of buses. Thus the dealer is eligible to take credit of GST paid to
the said contractors firm whom the buses are hired for transportation of
employees. However, he submitted that Section 17(5) is a non obstante
clause to the enabling provisions of granting inputs tax credit specified
in Section 16(1) of the Act. Thus, reading of non obstante clause in Section
17 discloses that an exception has been made to the provisions of grant-
ing of input tax credit by specifying situations where such credit shall
not be available to the registered person under Section 16 of the Act.
Thus, the dealer is not eligible to claim Input Tax Credit in respect of
“Rent a Cab” as per provisions of Section 17(5)(b)(iii) of the Act.
Decision of Advance Ruling Authority
8. Advance Ruling under Section 98 of the CGST/ HGST Act, 2017 was
pronounced as under :
8.1 The applicant is not eligible to take input tax credit on :
(a) GST charged by the Contractor for hiring of buses for transportation
of employees?
(b) GST charged by the Contractor for hiring of cars for transportation
of employees?
8.2 The restriction on “Rent-a-Cab” service specified in Section
17(5)(b)(iii) is applicable to input tax credit on :
(a) GST charged by the Contractor for hiring of buses for transportation
of employees?
(b) GST charged by the Contractor for hiring of cars for transportation
of employees?
Submissions made in the Appeal, by the Appellant :
9. The Appellant made the following written submissions in the Ap-
peal :
Impugned Advance Ruling is in gross violation of principles of natural
justice :
(a) The impugned ruling is based on extraneous considerations
and without disclosing the contents of the comments filed by
the Department to the Application of the Appellant. There-
fore, the advance ruling has been passed in violation of the
GST LAW TIMES  26th March 2020  259