Page 14 - GSTL_16th July 2020_Vol. 38_Part 3

xii GST LAW TIMES [ Vol. 38
Merchant Trade transaction (Contd.)
payable at the time of importation of goods into India - Accordingly, GST
not payable in respect of goods procured from vendor located outside
India, where the goods so purchased not brought into India and where,
Bill of Entry/import declarations are not being filed with respect to
goods so procured - Section 2(10) of Integrated Goods and Services Tax
Act, 2017 - Section 3 of Customs Tariff Act, 1975 - Sections 12 and 15 of
Customs Act, 1962 — In Re : Sterlite Technologies Ltd. (A.A.R. - GST - Guj.) ....... 323
— Outward supply from place of vendor to customer - Taxability under GST
- Applicant selling goods for a consideration in the course or furtherance
of business - Goods supplied to overseas buyers as declared by the
applicant and as such place of supply outside India - Further, supplier,
i.e., applicant declared the principal place of business within India and
issues the invoices for sale of such goods and as such the transaction
tantamount to ‘ inter-State supply’ under Section 7(5) of Central Goods
and Services Tax Act, 2017 - Goods not physically available in Indian
territory, hence neither exempted nor covered under export of services -
Applicable GST payable on goods sold to customer located outside India,
where goods shipped directly from vendor’s premises (located outside
India) to the customer’s premises — In Re : Sterlite Technologies Ltd. (A.A.R. - GST
- Guj.) ......................................... 323
Mining - Support service to mining - Applicant tasked to extract 2 lakh MT
of Serpentine/Green Marble from mine site - Applicant required under
agreement to deploy some earthmoving vehicles and manpower at
mining site - Non-achievement of per day target making applicant liable
for penalty - Applicant entitled to sole consideration of ` 400 per ton
extracted - Applicant not owning mining lease and having no ownership
over minerals extracted - Sole focus of agreement being achievement of
extraction of mineral targets and not construction of infrastructure at site
- Infrastructure developed by applicant as per its requirement and not as
condition under agreement - Supply of manpower and vehicles by
applicant was for its own benefit - These supplies cannot be categorized
as independent supplies made to leaseholder - That applicant
purchase/lease land in nearby in case target fixed by not achieved not
relevant - Applicant providing support to leaseholder - Activity
amounted to service even though minerals extracted were goods -
Activity not works contract as no creation of immovable property and
then transfer of property in goods - Ownership of property and minerals
was with leaseholder - Applicant providing support services to mining -
Activity covered under SAC 998622 and attracted GST @ 18% (CGST 9%
+ SGST 9%) in terms of Notification No. 11/2017-C.T. (Rate) (as
amended) — In Re : KSC Buildcon Pvt. Ltd. (A.A.R. - GST - Raj.) ............. 413
Movement of goods from one country to another in a transaction by India
based trader, taxability thereof - See under MERCHANT TRADE
TRANSACTION ................................... 323
Municipality’s Bank Account - Freezing thereof by GST Authorities not
sustainable - Since municipality is engaged in several activities that
involve general public, not proper for said authorities to freeze Bank
account - Impugned order set aside - Bank shall permit operation of
Municipality’s bank account as is routinely done - Section 78 of Central
Goods and Services Tax Act, 2017 - Article 226 of Constitution of India —
Municipal Secretary, Mavelikara Municipality, Mavelikara v. State of Kerala (Ker.) ....... 322
GST LAW TIMES  16th July 2020  14