Page 28 - GSTL_3rd September 2020_Vol 40_Part 1

J10 GST LAW TIMES [ Vol. 40
purchased and used for cash management business and supplied post usage as
scrap. They held that input tax credit will not be available to CMS Info Systems
Limited on purchase of motor vehicles i.e. cash carry vans, which are purchased
and used for cash management business and supplied post usage as scrap.
The Appellate Authority for Advance Ruling gave this ruling vide Order
dated 6-8-2018 as reported in 2018 (15) G.S.T.L. 727 (App. A.A.R. - GST).
Before High Court
The company challenged the above impugned AAAR, Maharashtra Or-
der before Bombay High Court [2019 (28) G.S.T.L. 27 (Bom.)]. The AAAR order
was challenged for the flaw in the decision making process i.e. not dealing with
the principal submissions of the petitioners (after recording the same in the im-
pugned order) that the input tax credit would be available in respect of motor
vehicles used for transport of money, in view of the definition of ‘goods’ and
‘money’ in the GST Act.
The Court relied upon JSW Energy Ltd. v. Union of India - 2019 (27)
G.S.T.L. 198 (Bom.), for setting out parameters for exercising writ jurisdiction in
respect of order passed by the AAAR under the GST law. Accordingly, the Court
confirmed itself to the principles of judicial review, which, inter alia, will include
the issue as to whether there has been a failure of natural justice at the appeal
stage, thereby vitiating the decision making process leading to making of the im-
pugned order.
The Court observed that the fundamental submission of the petitioner
before the AAAR was the fact that money would stand covered by the definition
of ‘goods’ under Section 2(52) of the GST Act so long as the same is not used as
legal tender. This was on the basis of the definition of money provided in Section
2(75) of the GST Act. The aforesaid principal submission though recorded, had
not been dealt with at all in the impugned order. Reliance placed in the im-
pugned order upon the press note issued subsequent to a GST Council recom-
mending that input tax credit be allowed in respect of the motor vehicles used
for transportation of money, would not by itself lead to the conclusion that prior
thereto, money was not included within the definition of goods. This has to be
examined in terms of the definition of ‘goods’ and ‘money’ found in GST Act.
The entire issue before the AAAR as raised by the petitioner was whether the
vans/motor vehicles in which the petitioners were transporting cash, would be
money for the purpose of Section 2(52) of the GST Act. This aspect has not been
dealt with in the impugned order dated 6th August, 2018 of the AAAR.
It was therefore, held that the decision making process has not been
complied with by the Authority. It is necessary for the Authority to consider the
submissions made by the parties before it and give its findings in the context of
the submissions made. Ignoring a submission would render the order vulnerable
to judicial review by the Court. The AAAR Order was therefore, set aside and
matter remanded back to the AAAR for fresh disposal after considering the
submissions made by the appellant and give reasoned conclusions.
Before Appellate Advance Ruling Authority (on High Court remand)
On being remanded back to AAAR, Maharashtra, CMS Info System Ltd.’s
issue was once again at the doors of AAAR who has now ruled that input tax
credit in respect of cash carry vans used to transport cash shall be allowed [2020
(38) G.S.T.L. 566 (App. A.A.R. - GST - Mah.)].

GST LAW TIMES  3rd September 2020  44