The activity of reshelling of old sugar mill rollers is treatable as a repair/maintenance service under SAC 9987 and attracts 12% GST.
Classification of Service- The present application has been filed by the applicant seeking an advance ruling in respect of the following questions.
1. The activity of reshelling of old sugar mill rollers whether is treatable as a job work service under SAC 9988 or is treatable as a repair/maintenance service under SAC 9987?
2. Whether the said activity of reshelling of old sugar mill rollers will attract 12% GST in terms of clause (id) of Sr. No.26 of Notification No.11/2017-CT(R), dt.28.06.2017 or will continue to attract 18% GST as earlier?
In the subject case there is no processing of raw material nor is there an emergence of a new product. What comes in is sugar mill roller and what goes out is the same thing. Further, Job work is just a process undertaken by a job worker on goods belonging to a principal and may or may not amount to manufacture. Further, a job worker may or may not use some portion of his material.
Held that- we hold that the subject activity of re shelling old and worn out and unusable sugar mill rollers is an activity of repair and squarely falls under SAC 9987. Since the said activity of reshelling of old sugar mill rollers is neither manufacturing nor job work, it will continue to attract 18% GST and not 12% GST in terms of clause (id) of Sr. No.26 of Notification No.11/2017-CT(R), dt.28.06.2017.
The activity of reshelling of old sugar mill rollers is treatable as a repair/maintenance service under SAC 9987 and attracts 12% GST.
Classification of Service- The present application has been filed by the applicant seeking an advance ruling in respect of the following questions.
1. The activity of reshelling of old sugar mill rollers whether is treatable as a job work service under SAC 9988 or is treatable as a repair/maintenance service under SAC 9987?
2. Whether the said activity of reshelling of old sugar mill rollers will attract 12% GST in terms of clause (id) of Sr. No.26 of Notification No.11/2017-CT(R), dt.28.06.2017 or will continue to attract 18% GST as earlier?
In the subject case there is no processing of raw material nor is there an emergence of a new product. What comes in is sugar mill roller and what goes out is the same thing. Further, Job work is just a process undertaken by a job worker on goods belonging to a principal and may or may not amount to manufacture. Further, a job worker may or may not use some portion of his material.
Held that- we hold that the subject activity of re shelling old and worn out and unusable sugar mill rollers is an activity of repair and squarely falls under SAC 9987. Since the said activity of reshelling of old sugar mill rollers is neither manufacturing nor job work, it will continue to attract 18% GST and not 12% GST in terms of clause (id) of Sr. No.26 of Notification No.11/2017-CT(R), dt.28.06.2017.