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2020 (3) TMI 895 - AAR - GSTWorks contract - composite supply or not - supply to railways - supply involves designing, engineering, manufacturing, site installation, cable laying, erection, testing, commissioning etc. - eligibility for GST under Entry 3 (v) (a) of the Rate Notification - HELD THAT:- Erection and commissioning of SCADA System involves attaching cables and other electrical equipment to the earth with no intention of removing or shifting them in foreseeable future. Moreover, the parts are so interlinked to constitute a functioning SCADA System that none can be moved separately or without causing substantial damage to the goods attached to earth. The moveable character of the goods like cables and other equipment, therefore, becomes extinct. The Applicant’s supply thus amounts to erection and commissioning of an immovable property involving transfer of property in goods in its execution and, therefore, works contract within the meaning of section 2 (119) of the GST Act. Whether the Applicant’s supply is ‘original work’ within the meaning of clause 2 (zs) of Notification No. 12/2017- Central Tax (Rate) dated 28/06/2017, as amended? - HELD THAT:- The Applicant’s supply is not in the nature of repair and maintenance of an existing structure, but a new construction. It involves installation, erection and commissioning of a network of interlinked equipment and structures attached to earth. It is, therefore, ‘original work’ within the meaning of clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017, as amended. Whether supply to RVNL qualifies as a supply pertaining to railways, including monorail and metro? - HELD THAT:- SCADA, in the context of the Applicant’s supply to RVNL, is the system that controls and monitors the electrical network of the metro, enabling the operator to issue suitable commands to be followed in the operation of the metro. Using the SCADA interface, the operator sends instructions to the Remote Terminal Unit, which accordingly controls the signals, lights and other electrical equipment of the metro. It is, therefore, a power supply and distribution network installed for the purpose of the operation of the metro. It, therefore, is a supply pertaining to railways, including metro, as defined under section 2 (31) (c) of the Railways Act, 1989.
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