Page 29 - GSTL_3rd September 2020_Vol 40_Part 1

2020 ] INPUT TAX CREDIT ON CASH CARRY VANS J11
After HC’s order to hear and decide on the matter, the AAAR concurred
with the company’s submission that what is being transported is not the ‘money’
but ‘goods’, as they cannot use it for any purpose and hence, the same cannot be
used as legal tender at any stage of the performance of the services rendered by
them. Therefore, it inferred that the subject money transported in cash carry vans
by them, ceases to be anything except goods under the factual matrix.
The AAAR thus concurred with asseesee’s contentions and allowed in-
put tax credit on purchase and fabrication of cash carry vans, a specially de-
signed vehicle for transportation of cash/currency in terms of RBI guidelines.
The AAAR considered money as goods and not legal tender (other goods) for
purpose of transportation and its nature being goods while being transported.
Department’s contention that money be treated differently from other goods was
held to be devoid of any merit and hence not tenable, being erroneous and ab-
surd.
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[Continued from page J6]

Under the emergent circumstances, it is of utmost importance to ascer-
tain in every particular case, the basis and the nature of the contract entered into
by the director with the company. In this respect, another bout of confusion may
crop up regarding determination of exact nature of contract of engagement of
directors. It can be said that the instant circular has served the intended purpose
to some extent, however, the role of agreement or contract entered into between
the company and the director, would be focal point or the churning pot in decid-
ing the nature of exact relationship and consequently, the treatment the relation-
ship should be given under the GST law.
In conclusion, it is hoped that the instant circular would bring in much
required clarity on the issue, at the same time the trade and industry should act
responsibly in deciding the issue of taxability with due care and caution in order
to avoid flooding of disputes in the days to come.
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GST LAW TIMES  3rd September 2020  45