The West Bengal Authority for Advance Ruling (AAR) noted that on the services of loading and unloading of imported unprocessed “Toor” and “Whole Pulses” and “Black Matpe”, Goods and Services (GST) is not exempted.
The applicant, Sona Ship Management Pvt. Ltd. is in the business of stevedoring and cargo handling for the past 30 years in the Kolkata Dock Complex. Cargoes like food grain, fertilisers, coal, iron ore, break/project cargo, etc., are handled by the applicant.
The applicant submitted that he had to join the Calcutta Dock Labour Board (CDLB) to involve in the business of bringing in the imported pulses since the said pulses were imported through smaller ships directly to Kolkata Dock. For that reason, in accordance with the Dock Workers (Regulation of Employment) Act, 1948 the applicant employed the manpower services for unloading the aforesaid imported goods.
As per the applicant, the services offered by the CDLB and services offered by him afterwards to the importer for unloading of unprocessed (i.e., directly from the fields of foreign land) “Black Matpe”, “Toor”, “Whole Pulses” are included under Entry No. 54(e) of the exemption Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017.
It was argued that there is no such activity exercised by the applicant that modifies the essential characteristics of the Yellow Tool Dal & Black Matpe. Therefore, the goods can be considered “agricultural produce” and services concerning unloading of the aforesaid goods are exempted from tax payment.
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A two-member bench comprising Sarthak Saxena and Joyjit Banik of the Authority noted that any services provided for loading and unloading by the applicant after the goods in question left the primary market are not subject to an exemption under serial no. 54 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
The authority ruled that the services provided for the purpose of loading and unloading imported unprocessed “Toor” “Whole Pulses” and “Black Matpe” as included in the instant case do not count for GST exemption under serial no. 54(e) of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.
| Name of the applicant | Sona Ship Management Private Ltd |
| Citation | WBAAR 05 of 2023 |
| Date | 30.05.2023 |
| The applicant’s representative heard | Ms Neha Agarwal, C.A |
| West Bengal AAR | Read Order |
