Advance Ruling— Section 97 of CGST Act— In the instant case, the applicant is engaged in design, engineering, fabrication and supply of Pneumatic Coveying System (PCS). PCS is used for transportation of material through pipes from one location to another using air/gas pressure for moving the goods. PCS is inter alia constituted of various equipments such as Air Compressors, Rotary Valves, Pipes, Filers and Heat Exchangers.

The applicant supplies the imported components to customers on High Sea Sale (HSS) basis under a HSS contract which is executed while the goods are on high seas i.e. in transit before crossing the customs frontiers of India. Customers clear the imported goods from customs after payment of applicable import duties and GST. Applicant raises invoice to customers towards such supply of domestic components and for imported components on HSS basis in INR.

The applicant has sought advance ruling on following question—

Whether supply of components of Pneumatic Conveying system by the applicant to its customers on High Sea Sales basis will be treated neither as supply of goods nor as supply of service by virtue of entry 8 to Schedule III of CGST Act.

Held that— The current application is not covered within the scope of Section 97 of the CGST Act, 2017 as such the same is not covered under the ambit of Authority for Advance Ruling. As the questions raised do not fall within the mandate of Authority for Advance Ruling, the application is therefore disposed of as such.