Page 189 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : SAFSET AGENCIES PVT. LTD. 427
7 and 8 Collectibles Hon’ble AAR did not answer the question raised.
(including Appellant does not wish to contend on points as to
books) HSN Code, Classification and Applicable Tax Rate.
purchased However, the Appellant would like to contest fur-
from ther in respect of applicability of Rule 32(5) of the
individual CGST Rules, 2017.
collectors and
users
9 Antiques Appellant accepts ruling of AAR on this point as to
Books HSN Code, Classification, Applicable Tax Rate.
purchased However, Appellant respectfully disagrees with
from AAR ruling that Rule 32(5) is not applicable and
individual Appellant is obliged to pay tax at 12% of sale value
collectors and of such books.
users. Appellant wish to contest that Rule 32(5) of CGST
Rules, 2017 is applicable to sale of such books and
Appellant is liable to discharge tax on difference
between the sales price and purchase price.

Being aggrieved by unfavorable portion (as stated in remark column of
above table) of ruling of Hon’ble AAR, Appellant is approaching Appellate Au-
thority for Advance Ruling (“AAAR”) for final clarity on all these issues.
14. to 43. * * * * * *
[See text of paras 14 to 43 of this order in GST Council website.]
Personal Hearing
44. A personal Hearing in the matter was conducted on 4-10-2019,
which was attended by Shri Naresh Shah, C.A., representative of the Appellant,
as well as by Shri V.V. Kulkarni, the Jurisdictional Officer and the respondent in
the instant matter, who tendered oral submissions in support of their cases be-
sides reiterating their respective written submissions filed before us.
Discussions and findings
45. We have examined the contention of the appellant. We have also
gone through the written submission presented by them. We have also examined
the contention of the jurisdictional officer. The issue raised in the Advance Rul-
ing can be conceptualized in the following table :-

Sr. Description of goods Advance ruling sought by the Ruling of AAR
No. appellant on
1 Paintings bought from HSN Code 9701
individual art collec- Applicable rate 12%
tors Whether appellant can dis- Rule 32(5) is not
charge the tax liability on dif- applicable.
ference between sales price Appellant to pay
and purchase price consider- tax at 12% on sale
ing painting as second hand value of painting.
goods following Rule 32(5) of
CGST Rules, 2017

GST LAW TIMES  16th July 2020  189