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2019 (7) TMI 815 - AAR - GSTLevy of GST - Asset Transfer - work of shifting & raising of transmission lines owned by RVPNL by NHAI in the course of widening, modification & diversification of its highways after completion of this work - HELD THAT:- The applicant is a Central Government entity whose primary work is building roads and bridges. Shifting, dismantling and raising of transmission lines is done by the applicant as and when required for safe electrical clearances during the widening of the National Highways, which is an ancillary to its main work. In the process of the activity, nowhere any assets are transferred to the applicant and therefore ownership lies with the RVPNL. It is merely an activity where just shifting of power transmission towers/ lines is done to widening of the National highways. Liability of GST - if there is an ‘Asset transfer’ which is a Supply under GST, then who is liable to pay GST? - HELD THAT:- The assets created by the applicant being an immovable property does not fall under the definition of goods as mentioned in the GST Act, 2017 - the element of consideration is not involved in the activity and therefore the said activity is not a supply under the Section 7 of GST Act, 2017. Levy of GST - exemption vide Entry 4 of Notification no. 12/2017- Central Tax (rate) dated 28.06.2017 - HELD THAT:- While going through the above provision of Schedule II, it provides a transfer of business assets where goods form part of the assets. As the constructed power transmission lines are not goods as explained above, the said schedule is not applicable - in relation to definition of goods, supply and consideration under GST act, 2017 we find that assets constructed by the applicant do not fall under category of goods, thus no supply is involved. Therefore, the applicability of GST does not arise.
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