Page 180 - GSTL_7th May 2020_Vol 36_Part 1

138 GST LAW TIMES [ Vol. 36
Point 1 :
As per telephonic information given by the taxpayer M/s. Moksh
Agarbatti Co., the manufacturing activity is carried out by them at
their Bengaluru unit. Further, they added that their Ahmedabad
unit is godown/depot where no manufacturing activity is being
carried out. They also informed that the Ahmedabad unit is in ex-
istence since last two years and they were registered with VAT de-
partment, however they further added that they were not registered
with Central Excise or Service Tax Department.
Point 2 :
As mentioned earlier, the tax payer was not registered with Central
Excise or Service tax department, as per records of this office, no
such issue appears pending or decided in any proceedings in the
case of the applicant.
Point 3 :
The credit shall not be available to the applicant (M/s. Moksha
Agarbatti) in case of question 1 to 3 (mentioned at Sr. No. 14 of the
application of the applicant) as per Section 17(5)(h) of the Central
Goods and Service Tax Act, 2017.
Similarly, the credit shall not be available in case of question 4(mentioned at Sr.
No. 14 of the application of the applicant) as per Section 17(5)(a) of the Central
Goods & Service Tax Act, 2017.
4. We have gone through the submission of the Applicant and also the
comments given by the jurisdictional Commissionerate in the matter.
4.1 Section 17(5)(h) of the Central Goods and Service Tax Act, 2017 is
reproduced below :
“Apportionment of credit and blocked credits. - (1) Where the goods or
services or both are used by the registered person partly for the purpose of
any business and partly for other purposes, the amount of credit shall be
restricted to so much of the input tax as is attributable to the purposes of his
business.
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(5) Notwithstanding anything contained in sub-section (1) of Section 16
and sub-section (1) of Section 18, input tax credit shall not be available in
respect of the following, namely :-
(a) motor vehicles for transportation of persons having approved
seating capacity of not more than thirteen persons (including
the driver), except when they are used for making the follow-
ing taxable supplies, namely :-
(A) ------
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…………
(b) the following supply of goods or services or both -
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GST LAW TIMES  7th May 2020  180