Page 191 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : SAFSET AGENCIES PVT. LTD. 429
6 Collectibles and HSN Code Chapter 49
Memorabilia Applicable rate In absence of spe-
Whether appellant can dis- cific details AAR
charge the tax liability on dif- did not answer to
ference between sales price the query posed
and purchase price consider- by them
ing painting as second hand
goods following Rule 32(5) of
CGST Rules, 2017
Collectible Books HSN Code If it is the form of
Applicable rate printed books,
Whether appellant can dis- newspapers, pic-
charge the tax liability on dif- tures etc. it will
ference between sales price fall under various
and purchase price consider- sub-headings of
ing painting as second hand Chapter 49 of GST.
goods following Rule 32(5) of In absence of spe-
CGST Rules, 2017 cific details AAR
did not answer to
the query posed
by them
7 Antique Books HSN Code In absence of spe-
Applicable rate cific details AAR
Whether appellant can dis- did not answer to
charge the tax liability on dif- the query posed
ference between sales price by them
and purchase price consider-
ing painting as second hand
goods following Rule 32(5) of
CGST Rules, 2017

46. The applicant has stated that apart from buying paintings from in-
dividual art collectors, appellant also procures paintings from other art dealers
and directly from painters. The applicant also purchases paintings, collectibles
and antiques from other art dealers. The applicant accepts the ruling of the AAR
on old cars/old jewelry/old watches in toto. In the above table, which is classi-
fied into 9 items, the appellant has accepted the verdict of the AAR as far as the
HSN code classification and applicable tax rate is concerned of all of the com-
modities except collectibles and memorabilia (Item No. 6) and Collectible books
(Item No. 7). Though AAR has not given any decision on the classification as
well as applicability of Rule 32(5) on the above two categories, i.e. Item No. 6 and
7, the appellant has expressed his wish not to contend the issue of classification
(HSN code). Therefore, we have to decide in all of the above 9 items, the limited
issue of the applicability of Rule 32(5) of the CGST Rules.
47. The applicant has filed an appeal before the AAAR contending that
Rule 32(5) is applicable to Paintings bought from individual art collec-
tors/Antique watches/Antique Jewelry/Collectibles are purchased from indi-

GST LAW TIMES  16th July 2020  191