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2023 (4) TMI 302 - AAAR - GSTClassification of services - rate of tax - services provided by appellant (sub-contractors) to the main contractor pertaining to the irrigation, construction and maintenance works to the irrigation department, State of Gujarat - taxable a tax rate of 12% GST or 18% GST? - time limit for filing appeal - HELD THAT:- There is a prohibition imposed by the main Contractor on the sub-contractor M/s Radhe Construction from further subcontracting the work allotted to them, without the consent of the main contractor. The appellant has also not produced any evidence to show that they were appointed by M/s Radhe Construction after obtaining the consent of the main contractor. On further verification of the EPC contract dated 08.03.2019 awarded by the Irrigation Department to the main contractor, it is seen that the main contractor has sub contracted only a part of the main contract to M/s Radhe Construction who in turn had engaged the appellant for further execution of the services as per the work order issued in the name of the appellant. Further, in the work order dated 05.09.2019 of M/s Radhe Construction, it is seen that at point No. 5. M/s Radhe Construction has mentioned that they would be paying applicable GST @18% in addition to the other prices mentioned in work Order. This would seem to suggest that the sub-contractor i.e M/s Radhe Construction was aware that further sub-contracting this work would be appropriately leviable to GST @18% and not eligible for the concessional rate of GST@12% - the contention of the appellant that they are covered under the provisions 3(iii) and 3(ix) of the amended Notification No. 11/2017-CT(Rate) is highly misplaced. The contention of the appellant need not be agreed that they are eligible for the concessional rate of GST @12% in terms of Notification No. 20/2017-CT(Rate) dated 22.08.2017 and Notification No. 1/2018-CT(R) dated 25.01.2018 as the activity undertaken by the appellant is not covered Sr. No. 3(iii) or under 3(ix) of the Notification No. 11/2017-CT(R) as amended and agree with the findings of the Gujarat Authority for Advance Ruling that the supply made by the appellant is not covered under entry No. 3(iii) or 3(ix) of Notification No. 11/2017-CT(R) dated 28.06.2017, as amended. The appellant is liable to discharge tax rate CGST @9% and GGST@9% under Entry No 3(ii) of Notification No. 11/2017-CT(R) dated 28.06.2017 further amended vide Entry No.3(xii) of Notification ibid as amended. Appeal rejected.
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