Page 182 - GSTL_6th August 2020_Vol 39_Part 1

108 GST LAW TIMES [ Vol. 39
ty for Advance Ruling in MRF Tyres reported at 2019-TIOL-61-AAAR-GST =
2019 (27) G.S.T.L. 578 (App. A.A.R. - GST) as well as on the Circular No.
122/3/2010, dated 30-4-2010 issued under the erstwhile service tax laws, where-
in it was clarified that if there is a reduction in the amount mentioned in the in-
voice/bill/challan and discounted payment is being made, then the same shall
be considered as final payment towards the service. Reliance is also placed on
Circular No. 877/15/2008-CX, dated 17-11-2008.
1 2.11 Hence applicant has concluded that the dealers/recipients are not
required to reverse the credit in case of a post-sale discount provided by the ap-
plicant. Accordingly, the applicant can issue commercial credit notes without the
GST component to its dealers.
2.12 Applicant has also cited Circular No. 92/11/2019-GST, dated 7-3-
2019 to state that in cases where the conditions under Section 15(3)(b)(ii) cannot
be satisfied, applicant can issue commercial credit notes for the same.
2.13 Further submissions states that once the applicant has not claimed
any refund or deduction in the value of the tax payable, the entire tax has been
paid to the exchequer. Therefore, there is no revenue implication in the instant
case.
3. Contention - As per the jurisdictional officer :
In reply to the first question, the jurisdictional officer has submitted that
the applicant is not fulfilling the condition as per Section 15(3)(b)(ii) because
there being several dealers to whom post-sales discounts are offered, it is not
possible for the applicant to ascertain whether ITC as is attributable to the dis-
count on the basis of document issued by the supplier has been reversed by the
recipient of the supply.
In reply to the second question the jurisdictional officer has submitted
that the applicant can issue the commercial note to his customers.
4. Hearing
Preliminary hearing in the matter was held on 17-12-2019. Sh. Bharat
Raichandani, Advocate along with Sh. V.R. Inamdar, Sr. Manager appeared, and
requested for admission of the application. Jurisdictional Officer Sh. R.R. Pedne-
kar, Dy. Commr. of S.T. (E-614), LTU-2, Mumbai also appeared and made writ-
ten submissions.
The application was admitted and called for final hearing on 6-2-2020.
Sh. Bharat Raichandani, Advocate along with Sh. V.R. Inamdar, Sr. Manager,
appeared, made oral and written submissions. Jurisdictional Officer Sh. R.R.
Pednekar, Dy. Commr. of S.T. (E-614), LTU-2, Mumbai also appeared. We heard
both the sides.
5. Observations and findings :
5.1 We have gone through the facts of the case, documents on record
and submissions made by the applicant as well as the jurisdictional office.
5.2 We find that applicant is registered person under GST Act. The first
query of the applicant is :- “Whether their dealer is required to reverse input tax credit
proportionate to the reduction in the value of supply?”
5.2.1 This authority is governed by the provisions of Chapter XVII of
CGST Act & the relevant Sections 95 to 98, 102, 103, 104 and 105. As per Section
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1 Paragraph number as per official text.
GST LAW TIMES  6th August 2020  182