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2019 (10) TMI 800 - AAR - GSTClassification of services - rate of tax - Works contract services - services provided to Electricity Supply Companies (wholly owned Government of Karnataka undertakings) by way of construction, erection, commissioning, installation, completion, etc. - entry 3(vi)(a) to Notification No.8/2017 - Integrated Tax (Rate). HELD THAT:- The Electricity Distribution Companies are involved in selling of electricity to the consumers and are collecting consideration and electrical energy is considered as “goods”. Hence the Electricity Distribution Companies are involved in the sale of goods or in general, supply of goods to the consumers for consideration. From the definition of business, it is clear that any activity of trade, commerce, manufacture, etc or any other similar activity is included in the definition of business and it is immaterial whether it is done for a pecuniary benefit, and any activity done in connection with or incidental or ancillary to such activity is also included in the scope of “business”. The Electricity Distribution Companies are involved in the supply of goods as already explained and hence they are involved in the business of supplying goods. They also receive consideration for the supply of electricity. The predominant activity of the Electricity Distribution Companies is to supply Electricity and the works executed by the applicant are used for this only predominant activity and hence are original works meant predominantly for use for commerce, industry, or any other business or profession - hence, the contracts in question do not satisfy the fourth condition required for them to be covered under the Entry No.3(vij(a) of Notification No.11/2017 - Central Tax (Rate) as amended from time to time.
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