Page 201 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : ATTICA GOLD PVT. LTD. 447
scheme is to avoid double taxation as the goods, having once borne
the incidence of tax, re-enter the supply and the economic supply
chain.
(h) The applicant states that the term “second hand goods” as per Rule
32(5) of CGST Rules would mean used goods as such or after such
minor processing which does not change the nature of goods and
where no input tax has been availed on purchase of such goods.
(i) Second hand things are not new and have been owned by
someone else (Collins Dictionary)
(ii) Having had a previous owner; not new (English Oxford Dic-
tionary)
Rule 32(5) of CGST Rules clearly and unambiguously applies to
person dealing in second hand goods. As stated in facts of the case,
applicant is dealing in old jewellery.
(i) The applicant states that it is settled jurisprudence principle that
when the words of a statute is clear, plain and unambiguous, i.e.
they are reasonable susceptible to only one meaning, the courts are
bound to give effect to that meaning irrespective of consequences.
Moreover, if the words of the statute are in themselves precise and
unambiguous, then no more can be necessary than to expound
those words in their natural and ordinary sense. This rule of inter-
pretation is followed in plethora of judgments. A few of the judg-
ments are as under :
(i) Nelson Motis v. Union of India (AIR 1992 SC 1981)
(ii) Gurudevantt VKSSS Maryadit v. State of Maharashtra (AIR 2001
SC 1980)
(iii) Swedish Match AB v. Securities and Exchange Board of India (AIR
2004 SC 4219)
(iv) Government of Andhra Pradesh v. Road Rollers Owners Welfare
Association [2004 (6) SCC 210]
(j) The applicant, as said in the earlier paragraphs, quotes the ruling is-
sued by the Maharashtra Advance Ruling Authority in support of
his contentions.
4. Sri Muniraju P.R., Chartered Accountant and duly authorised repre-
sentative of the above concern appeared and made the following submissions :
(a) That the applicant is involved in the purchase and sale of second
hand jewellery and no conversion is made using the above materi-
als. Further he stated that the applicant is only cleaning and polish-
ing the old used second hand jewellery and selling the same as
such.
(b) He also brought to the notice that a press release issued bearing
date 13-7-2017 captioned “Further Clarification on tax in reverse
charge on gold ornaments’. The contents are reproduced and the
same reads as under :
“In the GST master class held on 13-7-2017, in one of the
replies given to an on-the-spot question, it was informed that
purchase of old gold jewellery by a jeweller from a consumer
will be subject to GST @ 3% under reverse charge mechanism in
GST LAW TIMES  21st May 2020  201