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2018 (12) TMI 533 - AAR - GSTExemption from GST - supply of transportation services - The Applicant is engaged in the work of Supply, Laying and Terminating of 220kV U/G cables package to the recipient. - Sl. no. 18 of the Notification No. 12/2017 - Central Tax (Rate) dated 28th June, 2017 - composite supply or not - Held that:- In the present application the applicant has stated and claimed that that they are engaged in the work of supply, laying and terminating of 220 KV U/G cables package to the recipient and the engagement comprises of two separate agreements with respect to supply of goods and services - also, the applicant in their application has clearly stated that each of the contracts referred above consists of a ‘Cross Fall Breach Clause’ deeming any breach in either of the contract would be a breach of the other contract as well and would provide the recipient with an adsolute right to terminate both the contracts or claim damages. The applicant is not transporting the goods but is hiring the services of a GTA to undertake the transportation of goods by road & is claiming to be discharging GST liability under Reverse Charge Mechanism and in such a situation he is a recipient of such service and is not a supplier thereof. The first contract referred to above includes ex-works supply of all equipments and materials which includes testing and supply of cable package required for successful commissioning - the second contract consists of all other activities required to be performed for commissioning of the project which also includes transportation, insurance, etc. Thus, it is concluded that as per the first and second contracts referred above there is no doubt that both these contracts consisting of cross fall breach provisions are in the nature of ‘Composite supply of Works Contract’ which is a service & would be taxable@ 18% in terms of Sr. No. 3(11) of Notification No. 11/2017-Central tax (Rate) dated 28.06.2017 & artificial bifurcation of contracts & scope of work as claimed by the applicant to go out of the scope of correct tax liability is not legal and proper. Ruling:- The supply of transportation services, rendered by the Applicant, will not be exempt from the levy of GST in terms of Sl. no. 18 of the Notification No. 12/2017 - Central Tax (Rate) dated 28th June, 2017
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