Page 170 - GSTL_7th May 2020_Vol 36_Part 1

128 GST LAW TIMES [ Vol. 36
4.4 In view of the above, the Jurisdictional Commissionerate has opin-
ioned that as per sub-section (1) of Section 17 of the CGST Act, 2017, the appli-
cant is not entitled to take credit of input tax charged in respect of above-
mentioned expenses as the same is not used in furtherance of their business.
5. We also find that the applicant is engaged in supply of port services
to various clients. Said expenses are for providing common facilities to their em-
ployees within the residential colony and the same are not relates to furtherance
of their business/output service i.e. “Port Service”. It is very clear from the pro-
visions of sub-section (1) of Section 16 and sub-section (1) of Section 17 of the
CGST Act, 2017, that a registered person is entitled to take credit of input tax
charged on supply of goods or services or both to him which are used or intend-
ed to be used in the course or furtherance of his business only. In view of the
above, the applicant is not entitled to take credit of input tax charged in respect
of above-mentioned expenses as the same is not used in furtherance of their
business.
6. In view of the foregoing, we rule as under -
RULING
Question 1 : Whether “input tax credit” with respect to specific ex-
penses as mentioned in point 3 incurred by Deendayal
Port Trust for maintaining its employees is available or
not?
Answer 1 : The applicant is not entitled to take credit of input tax
charged in respect of above-mentioned expenses, as the
same is not used in the course or furtherance of his busi-
ness.
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2020 (36) G.S.T.L. 128 (A.A.R. - GST - Guj.)
BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
GUJARAT
S/Shri G.C. Jain and R.B. Mankodi, Members
IN RE : FLINT GROUP INDIA PRIVATE LIMITED
Advance Ruling No. GUJ/GAAR/R/2019/22, dated 20-9-2019 in Application
No. Advance Ruling/SGST & CGST/2018/AR/20
Technical Varnish/Medium - Liquid used in printing ink of packaging
material and also sold as independent product to printing industries - As such,
‘Technical Varnish’/‘Medium’ and ‘Printing ink’ having separate identity and,
hence, both are distinct products - “Technical Varnishes”/“Medium” manufac-
tured as an intermediate product and supplied by applicant merit classifica-
tion under Heading 3208 of GST Tariff in terms of HSN Explanatory Notes
which includes “Varnishes” but excludes ‘Printing inks’. [paras 8.1, 10.3, 10.4,
11.1]
Classification of goods - HSN Explanatory Notes - Safe guide to re-
solve dispute on tariff classification is internationally accepted nomenclature

GST LAW TIMES  7th May 2020  170