Home Case Index All Cases GST GST + AAR GST - 2019 (3) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 835 - AUTHORITY FOR ADVANCE RULINGS, UTTARAKHANDClassification of supply - composite supply or not - works contract or not - supply of solar rooftop power plant along with design, erection, commissioning & installation - supply of solar irrigation water pumping systems along with design, erection, commissioning & installation - rate of GST - Held that:- The definition of “work contract’ is concerned with the immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved and thus question arises whether the said supply would be treated as immovable or not - we have gone through the pictures provided by the applicant and find that to erect the plant/system in question a concrete platform is required and with the help of nuts and bolts the supplies in question are erected on the said platform. In the present case we find that attachment of the plant/system in question with the help of nuts and bolts to a platform/foundation intended to provide stability to the working of the plant/system and prevent vibration/wobble free operation does not qualify for being described as attached to the earth under any one of the three clauses extracted above. That is because attachment of the plant to the foundation is not comparable or synonymous to trees and shrubs rooted in earth. The supplies in question cannot be termed as immovable property for the following reasons: (i) The plants/ systems in question are not per se immovable property; (ii) Such plants/systems cannot be said to be “attached to the earth” within the meaning of that expression as defined in Section 3 of the Transfer of Property Act; (ii) The fixing of the plants/ systems to a platform/foundation is meant only to give stability to the plant/ system and keep its operation vibration free and (iv) The setting up of the plant/ system itself is not intended to be permanent at a given place. Thus the supplies under consideration are out of the ambit of “work contract” service in as much as the question of immovable property does not arise - the supply of goods along with design, erection, commissioning & installation of the same while supply of “solar rooftop power plant and solar irrigation water pumping systems” shall be treated as ‘composite supply’ and the 70% of the gross value shall be the value of supply of said goods attracting 5% GST rate and the remaining portion (30%) of the aggregate value shall be the value of supply of taxable service attracting GST rate in terms of Notification No. 27/2018-Central Tax (Rate) dated 31.12.2018.
|