Home Case Index All Cases GST GST + AAR GST - 2022 (5) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (5) TMI 1493 - AAR - GSTClassification of services - rate of tax - works contract - supply of goods or services or both pertaining to Railways based on order received from M/S. RITES Ltd. (on behalf of SECL) for construction of railway infrastructure facilities for the proposed feeder line of East West Rail Corridor within the leasehold boundary' of project for coal evacuation through Rail at Gevra Opencast of Gevera Area of SECL - applicability of Sl. No.3(xii) Notification No 11/2017-CT(Rate) dated 28/06/2017 - HELD THAT:- In the instant case under consideration, the applicant has submitted the copy of letter of acceptance dated 25.10.2021 issued by RITES LIMITED addressed to the applicant, for and behalf of SECL vide e-Tender No. 31 /OT/SECL-Gevra Cast/CiviI/ & P.Way /PKG-lI/21 dated 1.3.2021. Besides this from the submissions as put forth by the applicant it is seen from the said letter of acceptance issued on 25.10.2021 that RITES LIMITED for and on behalf of South Eastern Coalfields Limited, (SECL), Gevra has awarded to the applicant the work of "Earthwork in formation, minor bridges, P. Way Linking work including supply of Track Ballast, PSC sleepers, P.Way Fittings, Points and Crossings, Drain, Road, FOB Geotechnical investigation etc. in connection with the proposed feeder line of East West Rail Corridor within the lease hold boundary of Project for coal evacuation through rail at Gevra Opencast of Gevra Area of SECL". SAC 995421 covers 'General Construction services of highways, streets, roads, railways, airfield runways, bridges and tunnels' which by their very nature relates to work of civil engineering and there exists all plausible reasons to link the same to the aforementioned work awarded to the applicant by RITES LIMITED. Therefore, the instant supply of the applicant gets aptly covered under SAC 9954 in general and more specifically under 995421. Thus, the basic requirement for eligibility tö the said exemption as provided under S.no. 3(v) of Notification No. 1 1/2017 Central Tax (Rate) dated 28.06.2017 as amended, of getting covered under SAC 995421 stands fulfilled. Whether the instant supply is a Composite supply? - HELD THAT:- There exist all reasonable grounds to hold that natural bundle of supply of goods and services are present and are supplied in conjunction with each other in the ordinary course of business. The supply thereof is construed to be made when the entire supply is made. Thus, we come to the considered conclusion that the second criterion of '"composite supply" stands fulfilled in the case in hand. Works Contract, essential for availing the claimed exemption as provided under S.No. 3(v)(a) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended, vide Notification 01/2018 Central Tax (Rate) dated 25.01.2018 or not - HELD THAT:- In the present case under consideration, the letter of acceptance supra dated 25.10.2021 furnished by the applicant, issued by RITES to substantiate their claim of exemption supra only provides a peripheral aspect and indicates towards the outline description of the works and the activity to be undertaken by the applicant. The other aspects of the property as required for categorizing the same under the definition of 'Works Contract' is a prerequisite and can in no way be ignored with. Under GST, only those defined works carried out on any immovable property is covered under 'Works Contract' - without substantial evidence of the works contracted/undertaken like related diagrams /plans / schedules/ Pictures/ detailed write-up on the works, etc., it is practically impossible for this authority to conclude or for that matter to hold that the works as is forthcoming form the "letter of acceptance", undertaken is 'Works Contract' per se, as per Section 2(119) of CGST Act, 2017. The benefit of the entry at Sl.no. 3(v)(a) would be eligible to M/S Triveni Engicons Private Limited Flat No.- 3, B-BIock, Mehta Bhawao, First Floor, Kalindi Kunj, Sarangarh Road, Raigarh, Chhattisgarh, 496001 [GSTlN-22AABCT4589RIZN], the applicant, subject to the fact that the works undertaken by them are 'Works Contract' as per Section 2(119) of the Act and if so the applicable GST would be @ 1 2% effective from 25.0.2018.
|