Home Case Index All Cases GST GST + AAAR GST - 2022 (3) TMI AAAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 1302 - APPELLATE AUTHORITY FOR ADVANCE RULING, TAMILNADUClassification of services - works contract services to TANGEDCO - carrying out retrofitting work for strengthening the NPKRR Maaligai against seismic and wind effect and modification of elevation in TNEB headquarters building at Chennai - applicability of Sl.No.3 item (vi) of the Notification no. 11/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT:- It is evident that the entry is available when the Composite supply of Works contract are made to ‘Government entity’ by way of fitting out, renovation or alteration of a civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession and when such supply is made to a ‘Government entity’, they should have been procured in relation to a work entrusted to it by the Central/State Government or the Local Authority as the case maybe. In the case at hand, the works are undertaken by the appellant to the Headquarters of TANGEDCO Ltd, a commercial company in as much as TANGEDCO is involved in Generation and Distribution of Electricity against fixed Tariff. The words of the entry is clear and excludes the works supplied to Government entity, in respect of a Civil Structure or any other original works meant predominantly for commerce, industry or any other business or profession - there are no reason to disagree with the findings of the LA that the supply cannot be considered as that meant predominantly for use other than commerce, industry, or any other business or professional purposes. In the case at hand, it has been held by the LA that TANGEDCO is a ‘Government Entity’ and therefore there is no difference in the clarification issued by the State Government and the stand held by the LA and the claim that the State Government cannot speak in two voice is void. Based on the clarification received from the Government to the status that TANGEDCO is a Government Entity, the Finance Director has addressed, the Chief Engineers & others to take action to absorb the benefits of GST concessions to ‘Government entity’, which is their own interpretations and not clarification of the State Government and therefore, this contention fails. In the case at hand, the condition imposed for availing the concessional rate at the said entry is unambiguous in as much as it says that the services should have been procured by the Government entity, in relation to a work entrusted to it and the strengthening of the Headquarters building of TANGEDCO is definitely not an activity ‘in relation to’ Generation and Distribution of Electricity’, the work entrusted to it. Therefore, the contentions of the appellant in this regard are rejected. The appeal is disposed off.
|