No GST Exemption on Services by way of Loading and Unloading of Imported Unprocessed "Toor" and "whole pulses" and "Black Matpe": AAR [Read Order]

The West Bengal Authority for Advance Ruling (AAR) observed that Goods and Service Tax (GST) Exemption is not available on services by way of loading and unloading of imported unprocessed "toor" and "whole pulses" and "black matpe".

Sona Ship Management Private Ltd, the applicant is engaged in stevedoring and cargo handling in the Kolkata Dock Complex and is specialized in handling cargo such as food grain, fertilizers, coal, iron ore, break bulk/project cargo, etc.

The applicant submitted that he is engaged in stevedoring and cargo handling in the Kolkata Dock Complex for the past 30 years and is specialized in handling cargo such as food grain, fertilizers, coal, iron ore, break bulk/project cargo, etc.

It is submitted that the applicant had to engage the Calcutta Dock Labour Board (CDLB) for bringing in the imported pulses as the said pulses were imported by using smaller ships directly to Kolkata Dock. Accordingly, in terms of the Dock Workers (Regulation of Employment) Act, 1948 the applicant availed the manpower services for unloading the said imported goods.

According to the applicant, the services received from CDLB and subsequently provided by him to the importer for unloading of unprocessed (i.e., straight from the fields of foreign land) black matpe and toor whole pulse is covered under Entry No. 54(e) of the exemption Notification No. 12/2017-Central Tax (Rate) dated 28-6-2017.

It was contended that no such activities are being carried out by him that alters the essential characteristics of the yellow toor dal & black matpe. Therefore the goods can be regarded as „agricultural produce‟ and services relating to unloading of the aforesaid goods is exempted from payment of tax.

A Two-Member Bench of the Authority comprising Sarthak Saxena and Joyjit Banik observed that any services supplied for loading and unloading as supplied by the applicant after the goods left the primary market do not qualify for exemption under serial number 54 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.

The authority held that the “Services by way of loading and unloading of imported unprocessed “toor” and “whole pulses” and “black matpe” as involved in the instant case does not qualify for exemption under serial number 54(e) of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.”

To Read the full text of the Order CLICK HERE

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