TMI Blog2018 (5) TMI 1701X X X X Extracts X X X X X X X X Extracts X X X X ..... te, the place of supply shall be the location of the goods at the time when movement of the goods terminates for delivery to the recipient, or moved to the site for assembly or installation. The First Contract is no contract at all unless tied up with the Second Contract. The two promises – supply of the goods and their transportation to the Contractee’s site are, therefore, not separately enforceable in the present context. The supplies of goods and services of transportation etc are, therefore, naturally bundled. Supply of goods, packed and transported with insurance, is a composite supply and supply of goods is the principal supply. The illustration being part of the Section, supplies as that of the applicant’s should be construed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charged for these services at a pre-fixed rate, irrespective of the actual cost incurred. However, the Contractee is unwilling to bear the cost of GST on such services provided to them by the Applicant through various Service Suppliers. The Applicant, hence, wants a Ruling regarding the taxability of these services supplied by them. Advance Ruling is admissible on this question under section 97 (2)(a) (e) of the CGST/ WBGST Act, 2017 (hereinafter referred to as the GST Act ). The officer concerned, in his written response, raises no objection to admission of the application. The Application is, therefore, admitted. 2. As per point no. 14 in Form GST ARA 01 submitted by the Applicant, the question on which Advance Ruling is require ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services of a GTA. In his written submission the Applicant admits that he is not transporting the goods, but hiring the service of a transport agency. Similarly, he is not providing the insurance service, but buying such services from an insurance service provider. The Applicant is, therefore, the recipient of such services and not a supplier thereof. The question of the Applicant providing transportation service etc, therefore, does not arise. Hence the Exemption Notification is not applicable to the Applicant. 5. Before deciding the issue of taxability of the consideration payable under the Second Contract for inland/local transportation and ancillary services like in-transit insurance, the two contracts referred to above need to be ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and delivery. It, therefore, does not amount to a contract for supply of goods unless tied up with the Second Contract. In other words, the First Contract has no leg to stand on unless supported by the Second Contract. It is no contract at all unless tied up with the Second Contract. 10. The Contractee is aware of such interdependence of the two contracts. Although he awards the contract under two separate NOAs, Clause 3.2 of both of the NOAs makes it abundantly clear that Notwithstanding the break-up of the Contract Price, the Contract shall, at all times, be construed as a single source responsibility Contract and any breach in any part of the Contract shall be treated as a breach of the entire Contract. It is further elabo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the award of work under two separate Contracts in the aforesaid manner, you shall be overall responsible to ensure the execution of both the Contracts to achieve successful completion and taking over of the Goods under the package by the Purchaser as per the requirements stipulated in the Bidding Documents. It is expressly understood and agreed by you that any default or breach under the First Contract shall automatically be deemed as a default or breach of this Second Contract also and vice-versa, and any such default or breach or occurrence giving us a right to terminate the First Contract , either in full or in part, and/or recover damages there under, shall give us an absolute right to terminate this Contract, at your risk, cost ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... First Contract (supply of goods) as the time when the goods have been transported to the Contractee s site under the Second Contract. In other words, the First Contract cannot be performed satisfactorily unless the goods have been delivered to the Contractee s site in terms of the Second Contract. Moreover, the discussion in paragraph no. 8 above settles that the First Contract is no contract at all unless tied up with the Second Contract. The two promises supply of the goods and their transportation to the Contractee s site are, therefore, not separately enforceable in the present context. The supplies of goods and services of transportation etc are, therefore, naturally bundled. The recipient has not contracted for ex-factory supply o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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