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2019 (4) TMI 1623 - AAR - GSTExemption from CGST/SGST - freight charges recovered by the Applicant from the customer without issuance of consignment note - applicability of rate notification entry Sr. 18 of notf.12/2017 - HELD THAT:- The First Contract includes on shore ex works supply of all equipment’s and materials. The scope of the works includes testing and supply of Cable Package required for Successful commissioning of VSC based HVDC Terminal and DC XLPE cable system. The second contract includes on shore services i.e. all Other activities like transportation, insurance and all incidental services, installation, training required to be performed for complete execution of the VSC based HVDC Terminal and DC XLPE Cable package. The scope of the work includes transportation, insurance and other incidental services. It is apparent that the First Contract cannot be executed independent of the Second Contract. There cannot be any ‘supply of goods’ without a place of supply. As the goods to be supplied under the First Contract involves movement and/or installation at the site, the place of supply shall be the location of the goods at the time when movement of the goods terminates for delivery to the recipient or moved to the site for assembly or installation refer to Section 10(1)(a)and (d) of the IGST Act, 2017). The First Contract however does not include the provision and cost of such transportation and delivery. It, therefore, does not amount to a contract for ‘supply of goods’ unless tied up with the Second Contract. The First Contract has ‘no leg’ unless supported by the Second Contract. It is no contract at all unless tied up with the Second Contract. Composite nature of the contract is clear from the facts that first Contract cannot be performed satisfactorily unless the goods have been transported and delivered to the contractee’s site. The two contracts for supply of the goods and allied services are not separately enforceable. The recipient has not contracted for ex-factory supply of materials, but for the composite supply, namely Works Contract for Supply, for 320 KV, 2X1000MW VSC based HVDC Terminals and DC XLPE Cable system. From the conjoined and harmonious reading of various clauses of first contract and second contact, it Can be safely concluded that the agreement for setting up for + 320KV, 2 X 1000MW VSC based HVDC Terminals and DC XLPE Cable system between Pugalur and North Trichur associated with HVDC Bipole link between Western region (Raigarh, Chhattisgarh) and Southern region (Pugalur, Tamil Nadu-North Trichur, Kerala) Specification No: CC-CS/698-SR2/HVDC-3249/7/G10/R International Competitive Bidding Project is a single indivisible contract. As the contract consists of two or more taxable supplies of goods and services and their combination, is a composite supply as defined u/s 2(30) of the GST Act. Exemption from CGST and SGST not available.
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