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2022 (5) TMI 632 - AAR - GSTBenefit of lower rate of tax - item wise billing for every product in the Air Handling units independently, can be done or not - naturally bundled supply or not - procurement of higher rate items i.e. 28% from different company and rest of the system (less than 28%) from other company is agreeable? - Section 8 of GST Act - HELD THAT:- As per the application at box 12(b) the nature of the activity undertaken by the applicant involves supply, installation and commissioning of the clean room HVAC project. As seen from the literature pertaining to Cleanrooms, they are specially constructed, environmentally controlled enclosed spaces where the concentration of airborne particles (contaminants) is kept within specified limits. In industry, cleanrooms are used in the manufacturing of electronic hardware such as integrated circuits (ICs) and hard drives. In biotechnology and medicine, cleanrooms are used when it is necessary to ensure an environment free of bacteria, viruses, or other pathogens. Further it is the contention of the applicant that they are bifurcating the purchase order for the components and installation contract. The crux of the issue boils down to whether the contract for installation HVAC clean room system is divisible into one for supply of material and other for service or not. Further whether it is a composite supply or a mixed supply. And in case it is composite supply, then what is the principle supply. In order to answer these questions which are related to the issues raised by the applicant they are requested to produce copies of purchase orders of material and orders for erection contracts - However, they have not produced the copies of purchase order and erection order as promised during the personal hearing till date. In the absence of the key elements to discern the nature of the contract as to whether it is a naturally bundled supply or not their application stands rejected.
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