18% GST leviable on vehicle body building and mounting on chassis: AAAR

Case Details: Appellate Authority for Advance Ruling, Uttar Pradesh Adithya Automotive Applications (P.) Ltd., In re - [2022] 136 taxmann.com 336 (AAAR-UTTAR PRADESH)

Judiciary and Counsel Details

• • Ajay Dixit and Smt. Ministhy S., Member

Facts of the Case

The appellant was engaged in body building and mounting of body on chassis of different models of Tippers, Tankers, Trucks and Trailers provided by principal. It filed an application for advance ruling to determine taxability of body building activity on the chassis provided by the principal. The Authority for Advance Ruling held that 18% GST would not be applicable on body building activity on chassis provided by principal. It filed appeal against the order.

AAR Held

The Appellate Authority for Advance Ruling observed that the appellant was carrying on body building process on physical inputs i.e. chassis owned by the principal. The Circular No. 38/12/2018 dated 26-3-2018 has clarified that the job worker, in addition to the goods received from the principal, can use his own goods for providing the services of job work. In the instant case the chassis delivered to the Appellant would remain in temporarily possession only for certain time to carry out the process of job work as per direction of the principal. Therefore, body building and mounting of body on the chassis supplied by the Principal by collecting job work charges for such fabrication work would be taxable at 18%.

Case Review

• • Adithya Automotive Applications (P.) Ltd., In re [Advance Ruling No. UPADRG 82/2021, dated 30-6-2021] (paras 14 and 15) reversed.