TMI Blog2022 (5) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... d and installed which also establishes the fact that the applicant has been awarded the contract to replace the existing sleepers only - Further, nowhere in the work order, it has been mentioned that the work is related to additions and alterations to abandoned or damaged structures that are required to make them workable. The instant composite supply of works contract cannot be considered as original work in terms of definition given in clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. - Case Number 21 of 2021 Order number 01/WBAAR/2022-23 - - - Dated:- 7-4-2022 - Mr. Brajesh Kumar Singh, and Mr. Joyjit Banik, member Preamble Applicant s representative heard : Mr. Nirmal Kumar Chowdhury, Authorized Advocate A person within the ambit of Section 100 (1) of the Central Goods and Services Tax Act, 2017 or West Bengal Goods and Services Tax Act, 2017 (hereinafter collectively called the GST Act ), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Tax Act, 2017, within a period of thirty days from the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to Railways? 1.4 The aforesaid question on which the advance ruling is sought for is found to be covered under clause (b) sub-section (2) of section 97 of the GST Act. 1.5 The applicant states that the question raised in the application has neither been decided by nor is pending before any authority under any provision of the GST Act. 1.6 The officer concerned from the revenue has raised no objection to the admission of the application. 1.7 The application is, therefore, admitted. 2. Submission of the Applicant 2.1 The applicant submits that the work undisputedly is pertaining to Railways. The work involves dismantling of existing bridge timber/steel channel sleepers and fabrication, manufacture and supply of galvanized H-Beam Steel Sleepers made out of materials as per specification. The said works contract is being carried out by way of construction, erection, commissioning or installation of original works. Since it is not a case of completely new construction and the work is not in the nature of repair and maintenance, the instant work can only be considered under the category of original works. The applicant is dismantling the existing bridge timber/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 22.08.2017. However, at the insistence of the Railway Authorities, the applicant subsequently has charged balance tax amount calculated @ 18% by way of debit/credit note though the applicant doesn t accept the same. 2.5 The applicant submits that the term original works has been defined in clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 which reads as under: original works means- all new constructions; (i) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; (ii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise; In this instant case the work executed by the applicant is original work and squarely covered by the aforesaid definition. The applicant dismantled the existing bridge timber/steel channel sleeper on bridge including removal of all fittings of sleeper and removing footpath, tie bar lacing/angle lacing etc. including leading and stacking at the nearest bridge and removal of bearing plates from the release bridge sleeper after dismantling the same. The applicant has also under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... * * * * * * * * * * * 12 4.4 In the instant case, the supply is admittedly found to be made against the contract awarded by East Coast Railways, Khurda Road Division, Orissa i.e., there is no dispute that the supply is pertaining to railways. It, therefore, appears that in order to get covered under the aforesaid entry No. 3(v) (a), the supply which is made in pursuance to the contract further needs to satisfy the following conditions: (i) The supply would be a composite supply of works contract as defined in clause (119) of section 2 of the GST Act; (ii) The supply would be by way of construction, erection, commissioning or installation of original works; (emphasis supplied) 4.5 Clause (119) of section 2 of the GST Act speaks that works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. 4.6 The scope of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant has been awarded the contract to replace the existing sleepers only. 4.11 Further, nowhere in the work order, it has been mentioned that the work is related to additions and alterations to abandoned or damaged structures that are required to make them workable. 4.12 We are therefore of the view that the instant composite supply of works contract cannot be considered as original work in terms of definition given in clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. In view of the above discussions, we rule as under: RULING Question : Whether dismantling of existing sleeper fixing and/or installation of new (H-Bean Steel sleepers) is amounting to execution of original work and would attract IGST @12% in terms of Notification No. 20/2017-Integrated Tax (Rate) dated 22.08.2017? Answer : The instant supply is found to be a composite supply of works contract as defined in clause (119) of section 2 of the GST Act but the supply cannot be regarded as composite supply of original work as defined in clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The instant supply, therefore, shall not be covered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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