Court :
Tamil Nadu AAR
Brief :
The Tamil Nadu AAR, in the matter of M/s. Sunwoda Electronic India Private Limited [Advance Ruling No. 06/ARA/2024 dated April 30, 2024], has held that sale of goods from third-party free trade warehousing zone ("3P FTWZ") on 'as is where is' basis to bonded warehouse under Manufacturing and Other Operations in Warehouse Regulations ("MOOWR") are not liable to GST as the same is covered under Clause 8(a) of Schedule III of the CGST Act, which reads as "Supply of warehoused goods to any person before clearance for home consumption".
Citation :
Advance Ruling No. 06/ARA/2024 dated April 30, 2024
The Tamil Nadu AAR, in the matter of M/s. Sunwoda Electronic India Private Limited[Advance Ruling No. 06/ARA/2024 dated April 30, 2024], has held that sale of goods from third-party free trade warehousing zone ("3P FTWZ") on 'as is where is' basis to bonded warehouse under Manufacturing and Other Operations in Warehouse Regulations ("MOOWR") are not liable to GST as the same is covered under Clause 8(a) of Schedule III of the CGST Act, which reads as "Supply of warehoused goods to any person before clearance for home consumption".
M/s. Sunwoda Electronic India Private Limited ("the Applicant") are engaged in the business of importing and trading Portable Lithium System Batteries classifiable under 85076000. Further, the Applicant entered into a warehousing agreement with M/s. DHL Supply Chain India (P) Ltd. ("the third party") for storage of imported goods in the 3P FTWZ.
The applicant furthermore has entered into a contract with an Original Equipment Manufacturer ("OEM") licensed under Section 65 of the Customs Act, 1956 ("the Customs Act") read with MOOWR regulations for supply of imported portable lithium system batteries.
The goods are sold to the OEM's MOOWR unit while lying in 3P FTWZ and are cleared under Bond by the OEM's MOOWR's unit on need basis.
Therefore, the Applicant has preferred the present Advance Ruling to obtain confirmation on whether GST is leviable on the sale of goods warehoused in 3P FTWZ on "as is where is" basis to customer who clear the same to bonded warehouse under the MOOWR Scheme.
Whether GST is leviable on the sale of goods warehoused in 3P FTWZ on 'as is where is' basis to a customer who clears the same to Bonded Warehouse under MOOWR scheme?
The Tamil Nadu AAR, in Advance Ruling No. 06/ARA/2024 held as under:
OFFICIAL JUDGMENT COPY HAS BEEN ATTACHED