Page 184 - GSTL_16th July 2020_Vol. 38_Part 3

422 GST LAW TIMES [ Vol. 38
the provisions of both the CGST Act and the MGST Act are the same except for
certain provisions. Therefore, unless a mention is specifically made to such dis-
similar provisions, a reference to the CGST Act would also mean a reference to
the same provisions under the MGST Act.
The present appeal has been filed under Section 100 of the Central Goods
and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act,
2017 (hereinafter referred to as “the CGST Act and MGST Act”) by Safset Agen-
cies Pvt. Ltd. (hereinafter referred to as the “Appellant”) against the Advance
Ruling No. GST-ARA-86/2018-19/B-7, dated 15-1-2019 [2019 (26) G.S.T.L. 351
(A.A.R. - GST - Mah.)].
Brief facts of the case
1. This Appeal is being filed by Safset Agencies Private Limited (Asta-
guru.com) against Ruling No. GST-ARA-86/2018-19/B-7, dated 15-1-2019 pro-
nounced by Maharashtra Authority for Advance Ruling (“AAR”). The said order
was served to appellant on 14-6-2019 through e-mail.
2. Applicant, having Goods and Services Tax (“GST”) Registration No.
27AABCS9352H1Z4.
3. Appellant is a dealer dealing in various goods such as paintings, vin-
tage collectibles, sculptures, classic miniatures paintings, fine writing instru-
ments, vintage timepieces, celebrity memorabilia, aristocratic jewellery and vin-
tage cars.
4. Appellant usually procures the abovementioned goods on approval
basis from unregistered as well as registered persons (“sellers”). Appellant dis-
plays all such goods on its website and conducts the auction sale in respect of
such goods. The goods are sold to the highest bidder in the auction.
5. The standard business process of Appellant is as under :
(i) Intending seller and Appellant sign an ‘on approval contract’
wherein intending seller agrees to sell his goods to the appellant on
approval basis at mutually agreed price.
(ii) On receipt of goods on approval and being satisfied with quality
and authenticity of the goods, Appellant uploads the details of
goods for on line auction.
(iii) The goods remain in the possession of Appellant during the mutu-
ally agreed period of approval. Appellant has right to retain or re-
turn the goods during the approval period. Either approval is
granted by Appellant within 6 months from the date on which it re-
ceives the said goods and purchases the same at mutually agreed
price or returns the said goods to the intending seller.
(iv) After conveying the approval and confirming purchase of goods,
Appellant sells the goods to buyer (highest bidder) in auction.
(v) Appellant issues the sales invoice to the buyers.
(vi) Ownership of auctioned goods is transferred from Appellant to
buyer on issuance of invoice by Appellant.
6. The appellant deals in painting, old jewelry, cars, watches, memora-
bilia/collectibles and antiques. Appellant is predominantly a dealer in personal
effects (second-hand or used goods) procured or bought from users or collectors.
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