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2023 (1) TMI 182 - AAR - GSTClassification of services - works contract services - rate of tax - works being undertaken by the applicant for construction of new railway siding at Jhanjra Area, ECL Dist. Paschim Bardhaman, West Bengal against order received from M/s. RITES Ltd. - construction of rail infrastructure facilities - applicability of Sl. No. 3(v)(a) or Sl. No.3(xii) of Notification No 11/2017-Central Tax (Rate) dated 28/06/2017, as amended from time to time. Whether the work being executed by the applicant can be treated as works contract as defined u/s 2(119) of the GST Act? - HELD THAT:- In the case at hand, the letter of acceptance supra dated 02.03.2021 as furnished by the applicant refers the subject of work as “e-Tender No. 07/OT/ECL-JHANJRA/Civil & P. Way/PKG-III/20 dated 30.06.2020 for the work of Construction of Earthwork in Formation, Major & Minor Bridge, ROB, Drain, P.Way Linking work including supply of Track Ballast, P. Way Fittings, Points & Crossings, Derailing Switches etc., Construction of Service Building including Internal Electrification, Installation, Testing & Commissioning of 140MT In-Motion Weigh Bridge and other allied works etc., (Pkg-III) in connection with construction of New Railway siding at Jhanjra Area, ECL, Dist. Paschim Bardhaman, West Bengal” - On due consideration of the nature of works being undertaken by the applicant as detailed in the scope of work, we are of the opinion that the work is in relation to immovable property and certainly involves transfer of property in goods thereby qualifies to be a ‘works contract’ as defined in clause (119) of section 2 of the GST Act. Whether the said work can be considered as ‘original works’? - HELD THAT:- In the instant case the applicant executes construction work in connection of New Railway Sidings at Jhanjha Area of Eastern Coalfield Limited. Thus, we accept the contention of the applicant that the work can be considered as original works as defined in clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Whether the work can be considered as works contract pertaining to railways? - HELD THAT:- In the case of M/s Steadfast Corporation Ltd, Telengana [2016 (9) TMI 50 - AUTHORITY FOR ADVANCE RULINGS], the applicant proposed to take up the activity of construction of Railway Works including sidings for private companies as well as Indian Railways. The Authority for Advance Rulings (Central Excise, Customs and Service Tax) vide order dated 15.07.2016 held that ‘Construction of railway siding for private parties is exempt under Notification No. 25/2012-ST dated 20.06.2012, as amended vide entry No. 14(a) thereof’ - the work executed by the applicant in connection with construction of New Railway siding at Jhanjra Area, ECL pertains to railways.
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