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2022 (3) TMI 1090 - AUTHORITY FOR ADVANCE RULING, GUJARATClassification of supply - composite supply or not - works contract service or not - contract involving supply of equipment / machinery & erection, installation& commissioning services without civil work thereof - supply of equipment / machinery & erection, installation& commissioning services with civil work thereof - applicable rate of GST - test of permanency - HELD THAT:- The equipment are assembled by IDMC at customers premises and are either fitted with foundations/ structures or fitted on foundations/ structures. The functional and operational Cattle Feed Plant in its knocked down, either semi knocked down/ completely knocked down condition loses its identity. Further, it is fact on record that an erected Cattle Feed Plant as such cannot be shifted from one place to another, i.e., to say that all the different equipment, machines parts and accessories, electrical systems are required to be dismantled and then only the equipment can be shifted. On reading the facts, it is found that the test of permanency laid down by the H’ble Apex Court for treating cattle plant as an immovable property has been answered positive in subject case and we hold that subject Plant is an immovable property. The Cattle Feed Plant once installed and commissioned in the premises is transferred to the customer, thereby involving transfer of property. The Plant installation comprises cabling and fastening to earth/ foundation and all the equipment/parts are interlinked to constitute a functioning Plant that it cannot be moved as such without dismantling/ dismembering - The supply hinges on providing a functional and operational cattle feed plant which has passed the test of permanency and thereby an immovable property. The supply interalia involves transfer of property to the customer and the subject supply merits consideration under works contract service. Supply of a functional Cattle Feed Plant, inclusive of its Erection, Installation and Commissioning and related works involved for both the supplies, is Works Contract Service Supply, falling at SAC998732 attracting GST leviability at 18%.
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