Levy of GST— The Deputy Commissioner of Central Tax, filed an appeal in case of M/s. Shilpa Medicare Limited, against the Advance Ruling. The appeal is filed contending the Ruling passed by the Authority for Advance Ruling.

The main issue of contention is whether the transfer of business of M/s. Shilpa Medicare Limited unit, Vizianagaram, Andhra Pradesh-531162 vide GST No.37AADCS8788F1ZR, to M/s. Shilpa Medicare Limited, Bengaluru, Karnataka - 562117, vide GST No.29AADCS8788F1ZO, is a supply of goods or services or both. The AAR has taken the stance that the activity is a going concern and classified it to be a supply of service, whereas the appellant contested it as supply of goods.

In the instant case, there is no evidence of “change in the constitution of the registered person”. A change in the constitution would envisage a change from say a proprietorship entity to a Partnership or a Company, or from a Partnership to a Company; or change in the constitution of the Shareholders, etc. There is no such thing happening in this case. M/s. Shilpa Medicare Limited, Vizianagaram is one and the same entity as M/s. Shilpa Medicare Limited, Bangalore, Karnataka. There is no change in the constitution of the entity as required under Section 18 (3) of the CGST Act and therefore the provisions for transfer of ITC under Section 18 (3) would not be permissible in this case.

Held that— The ruling of the AAR is set aside and the transaction under question is 'supply of goods' and taxable accordingly as per the prevailing provisions of the CGST/APGST Act, 2017. Further, M/s. Shilpa Medicare Limited, Vizianagaram are not entitled to file Form ITC-02 for transfer of ITC to their Bangalore Unit in the State of Karnataka.