Page 18 - GSTL_16th July 2020_Vol. 38_Part 3

xvi GST LAW TIMES [ Vol. 38
VALUATION (GST) :
— Second hand goods - Margin scheme - Whether Rule 32(5) of Central
Goods and Services Tax Rules, 2017 will apply to be decided
independently of fitment of product - Nothing in Rule 32(5) ibid to make
it inapplicable to valuable or precious objects or objects having antique
value - Term ‘second-hand and used’ to be given its ordinary meaning -
Antique pieces also second-hand and used by people before they come in
the market - Paintings are bought by appellant from individual art
collectors presupposes that art collectors bought it second-hand or used
and then sold it to appellant - Nothing to show that appellant has bought
paintings from the artists themselves - No grounds to say that they are
not second-hand or used - All categories : valuable paintings, antique
watches, antique jewelry, and antique books though falling under
category of valuable goods, are at same time also ‘second hand or used
goods’ - Benefit of Rule 32(5) ibid cannot be denied on such goods -
Sufficient information not placed before Authority for Advance Rulings
in respect of collectibles/memorabilia and collectible books and no
specific explanation given as to difference between antique book and
collectible books - Authority correct in not giving any ruling in respect to
these items — In Re : Safset Agencies Pvt. Ltd. (App. A.A.R. - GST - Mah.) ......... 421
VALUATION (SERVICE TAX) :
— Exclusion of value of goods and materials sold by service provider to
service recipient in terms of Notification No. 12/2003-S.T. - Value of
material and chemicals consumed in photography service - Sale element
of those contracts which are covered by six sub-clauses of clause (29A) of
Article 366 of Constitution of India are separable and may be subjected to
sales tax by States under Entry 54 of List II - Photography service having
both elements of goods and services covered under works contract - In
works contract involving transfer of property attracted provisions
contained in Article 366(29A) ibid - In execution of works contract
involving transfer of property even in some other form than in goods, tax
on such sale or purchase of goods leviable - No question of applying
dominant nature after 46th Amendment - Sale tax leviable on
Photographic paper and consumables and their value not includible in
value of Photography service for purpose of Service Tax - Value of
Photography service to be determined in isolation of cost of goods such
as photography paper, consumables and chemicals with which image
was printed, negatives and other material which had “goods” component
liable to sales tax - Term ‘sale’ appearing in exemption Notification No.
12/2003-S.T. also include “deemed sale” as defined by Article
366(29A)(b) ibid - Section 67 of Finance Act, 1994 — Agrawal Colour Advance
Photo System v. Commissioner of C. Ex. (M.P.) ....................... 298
Works contract - Taxability of Construction, supply, installation and
commissioning of a Dairy Plant - See under COMPOSITE SUPPLY ...... 343
Writ jurisdiction - Alternative remedy availability - Seizure in contravention
of law - Since entire proceedings of detention of vehicle and seizure of
goods were in contravention of law, relegating petitioners to alternative
appeal remedy would not be proper, legal and justified - Writ jurisdiction
invocable - Article 226 of Constitution of India — K.P. Sugandh Ltd. v. State of
Chhattisgarh (Chhattisgarh) ................................ 317

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