Page 26 - GSTL_ 28th May 2020_Vol 36_Part 4

J86 GST LAW TIMES [ Vol. 36
without input tax credit benefit vide Notification No. 11/2017-C.T.
(Rate), dated 28-6-2017 as amended by Notification No. 46/2017-
C.T. (Rate), dated 14-11-2017.
• The DGGI officers conducted a simultaneous search operation at
Mumbai and Pune on 5-2-2019 and seized certain vital documents
which include a list of Naturals franchisees along with the copy of
agreements entered by KOTI and copy of the advance ruling filed
by the franchisees but never filed by KOTI.
• On 5-2-2019, the DGGI officers recorded the statement of Mr. Girish
Pai, one of the Directors of KOTI and authorized signatory.
• On 11-2-2019, the DGGI officers recorded a statement of Mr. Shrini-
vas R. Kamath, a whole time Director of KOTI as well as KNRPL.
• During the investigation, it was gathered that Creative IT India Pri-
vate Limited are the supplier of spectrum software to KOTI and its
franchisees.
• On 26-4-2019, the DGGI Officers recorded a statement of Sr. Manag-
er of Creative IT India Private Limited.
• It has been confirmed that the respondent is under obligation to use
the billing software supplied by KOTI through Creative IT Private
Limited which contained classification of ‘supply’ of ice cream
made by the respondent and GST rate to be applied. The same can-
not be changed by the respondent or any of the franchisees of KOTI.
• The franchisees have to follow the dictates of the franchisor.
• In the meanwhile, the respondent made an application on 25-2-2019
before the Authority for Advance Ruling, Maharashtra on the issue
of whether the supply of ice cream made by it from retail outlet
would be treated as supply of ‘goods’ or ‘services’ or a ‘composite
supply’.
• DGGI was not aware of the application made by the respondent be-
fore the Authority for Advance Ruling.
• The investigations carried out by DGGI officers were also not made
known to the State Tax Authorities and hence they did not make a
mention in the objections in this regard before the Authority for
Advance Ruling.
• The investigation was started on 5-2-2019, even before the filing of
application for advance ruling by the respondent on 25-2-2019.
• During the investigation DGGI officers recorded statements of Mr.
Virendra Mutha, a common partner of the respondent on 10-5-2019
and 2-7-2019.
• In his statement Mr. Mutha accepted that he was aware of the ongo-
ing investigations of DGGI against KOTI; the decision was taken to
file an application before the Authority for Advance Ruling through
a common consultant Mr. Chirag Mehta but the relevant facts about
DGGI investigations was not incorporated in the application made
before the Authority for Advance Ruling.
• It is admitted by Mr. Mutha that they have melted ice creams re-
ceived in tubs of 0.5 kg. meant of retail sale, but they scooped and
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