Page 185 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : SAFSET AGENCIES PVT. LTD. 423
7. There are different practices prevailing in the trade as to classifica-
tion, valuation and applicable GST rates on goods dealt in by the appellant.
Appellant had filed an application before the AAR seeking a ruling on
classification, valuation and applicable GST rates on goods dealt by the Appel-
lant. The purpose of appellant going for advance ruling was to have absolute
clarity as to its tax obligation.
Appellant sought advance ruling in respect of determination of classifi-
cation, valuation and GST rates applicable to various goods dealt with by it.
8. AAR admitted the appellant’s application in preliminary hearing
held on 28-11-2018.
9. AAR passed Order No. GST-ARA-86/2018-19/B-7 on 15-1-2019
specifying the classification, valuation and applicable GST rates on goods dealt
by the Appellant.
10. The gist of points on which advance ruling was sought by the Ap-
pellant and the ruling thereon given by Honorable AAR is as under :

Sr. Description of Goods Advance Ruling Sought by Ruling by AAR
No. the Appellant on
1. Paintings bought from HSN Code 9701
individual art collectors Applicable Rates 12%
Whether Appellant can dis- Rule 32(5) is not
charge the tax liability on applicable.
difference between sales and Appellant to pay
purchase price considering tax at 12% on the
painting as second hand sale value of the
goods following Rule 32(5) of paintings.
the CGST Rules, 2017.
2. Old cars HSN Code 8703
Applicable Rates 18% provided
conditions men-
tioned in Notifica-
tion No. 8/2018-
C.T. (R), dated
25-1-2018 are
complied with
Whether Appellant can dis- Rule 32(5) is appli-
charge the tax liability on cable subject to the
difference between sales and conditions of the
purchase price considering Notification No.
old cars as second hand 8/2018, dated
goods following Rule 32(5) of 25-1-2018 are
the CGST Rules, 2017. complied with.

GST LAW TIMES  16th July 2020  185