Page 19 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] INDEX - 23rd April, 2020 xvii
forward charge mechanism - Section 2(5) of Central Goods and Services
Tax Act, 2017 - Section 2(13) of Integrated Goods and Services Tax Act,
2017 — In Re : Fom Aluminium Machines Pvt. Ltd. (A.A.R. - GST - Kar.) .......... 420
Interpretation of statutes - Invocation of larger period of limitation -
Intention on part of assessee to evade payment of tax to be gathered from
contents of show cause notice or any other attendant circumstances -
Same to depend on facts and circumstances of each case and no straight
jacket formula prescribed in this regard - Also, initial burden on revenue
to establish or prove that ingredients prescribed under proviso to sub-
section (1) of Section 73 of Finance Act, 1994, present - In absence of
which, invoking of extended period of limitation to be impermissible -
Section 73 of Finance Act, 1994 — Commr. of Service Tax, Bangalore-I v. Karnataka
Udyog Mitra (Kar.) ................................... 382
— Invocation of larger period of limitation - Until and unless show cause
notice not alleging wilful misstatement or suppression of fact on part of
assessee, non-payment of tax not to fall within definition of ‘wilful
misstatement’ or ‘suppression of fact’, so as to attract extended period of
limitation as indicated in proviso to sub-section (1) of Section 73 of
Finance Act, 1994 - Section 73 of Finance Act, 1994 — Commr. of Service Tax,
Bangalore-I v. Karnataka Udyog Mitra (Kar.) ........................ 382
Job work - Generation of electricity - Whether prime raw material of job
worker i.e., steam coal, not inputs for principal for its final product, i.e.,
steel - Coal proposed to be sent by principal to job work to be supplied
back in form of electricity, which in turn are used by principal to
manufacture its final products i.e. steel - Generation of power is one of
business activities of principal in terms of its memorandum of association
and coal used for such business activities would be qualified as input for
principal - Electricity can be generated on job work basis - Coal, despite
being consumed in process of the generation of electricity, thereby
becoming irretrievable, will not preclude proposed arrangement from
being job work transaction - Certificate of Cost Accountant testifying that
coal and other inputs constitutes a major cost i.e. more than 95% of the
total cost of materials that are required for generation of power, whereas
cost towards water and air would not exceed 0.5% of cost of inputs -
Additions of minor materials by job worker (such as air and water) not to
alter nature and character of underlying transaction - Such would still be
considered as a job work transaction - Contention that no bar on the
involvement of third person in the transportation of inputs from
principal to job worker and vice versa, sustainable - Presence of, and
dependency on third party regulator i.e. MSEDCL during transmission of
electricity generated in proposed job worker’s premises would not
detract proposed arrangement from being job work - Proposed
arrangement of supply of coal or any other inputs by principal to job
worker for generation of electricity to be construed as job work - No GST
will be leviable on this supply - Job work charges payable to job worker
by principal to be subjected to GST in terms of the provisions laid out in
Notification No. 11/2017-C.T. (Rate) as amended - Observations of
Appellate Authority For Advance Ruling in 2018 (14) G.S.T.L. 571 (App.
A.A.R. - GST) repelled and revised - Decision of Authority for Advance
Ruling in 2018 (13) G.S.T.L. 92 (A.A.R. - GST) reversed - Sections 2(48)
and 143 of Central Goods and Services Tax Act, 2017 — In Re : JSW Energy
Limited (App. A.A.R. - GST - Mah.) ............................ 456

GST LAW TIMES  23rd April 2020  139