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2022 (3) TMI 1150 - AAR - GSTClassification of supply - supply of EPABX system along with its installation and commissioning to Railways - The EPABX works like an exchange - taxable at 12% rate of Goods and Services Tax or not - applicability of Entry no. 3(v) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT:- The EPABX system comes into existence by assembly and connection of various goods/components, wherein transfer of property of such goods is involved in the execution of said contracts. It is noted that EPABX system once installed cannot be taken to market in as such condition. It would be required to be dismantled and disassembled in parts and components. In the process of dismantling, some parts of the EPABX system such as cables, connectors may even be damaged/ may not be usable again. Thus, an installed and commissioned EAPBX system becomes an immovable property and thereby its supply with installation and commissioning is Works Contract Service supply. It is apt to refer to CBEC Order No. 58/1/2002-Cx dated 15-1-2002 issued for the purpose of uniformity in connection with classification of goods erected and installed at site. This said CBEC order was issued in wake of plethora of judgments appear to have created some confusion with the assessing officers, the matter was examined by the Board (CBEC) in consultation with the Solicitor General of India and the matter was clarified vide said Order and the relevant extract is reproduced and it is held that its rationale and concept are relevant under GST scheme of law also. The subject supply pertains to Railways as it is for supply in railway office. As per Section 2(31)(d) Railways Act, 1989, railway includes all offices and any other works constructed for the purpose of, or in connection with, railway - The subject supplies of EPABX system for Railways is covered at entry No. 3 (v) of Notification No. 11/2017-CT (R) dated 28-6-17, as amended, and liable to 12% GST.
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