TMI Blog2018 (12) TMI 1226X X X X Extracts X X X X X X X X Extracts X X X X ..... ng from being included in the definition of ‘railways’ has repeatedly come up for judicial scrutiny. The courts generally held that the phrase ‘public carriage of passengers or goods’ cannot be construed in such manner as to exclude from the ambit of ‘railways’ the sidings built and owned by organizations other than the government. DVC, a public sector undertaking, is the owner of the railway siding being built. It is meant for carriage of coal and oil fuel to RTPS. The purpose of the carriage of goods is, therefore, not recreation, but producing public goods like electricity. It is, therefore, not excluded under section 2(31)(ii) of the Railways Act, 1989 - The construction of the private siding that the Applicant refers to, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Application states that Damodar Valley Corporation (hereinafter referred to as DVC ) has appointed the Applicant as Project Management Consultant for construction of railway infrastructure, including commissioning of the railway system to handle coal and oil fuel traffic of Raghunathpur Thermal Power Station (hereinafter RTPS). The scope of work includes awarding contracts on behalf of DVC for construction of railway infrastructure. The work includes construction of a private siding between Joychandipahar and Bero stations in Adra division of SE Railway, enabling carriage of coal and oil fuel to RTPS. The Applicant is responsible for passing the bills of the vendors and contractors after necessary scrutiny, and making the payments from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vers only a portion of the total project but can be relied upon as a specimen of the nature of the work being executed. 4. According to Serial No. 3(v)(a) of Notification No. 11/2017 CT (Rate) dated 28/06/2017, as amended from time to time, the composite supply of works contract as defined under section 2(119) of the GST Act, supplied by way of construction, erection, commissioning, or installation of original works pertaining to railways, including monorail and metro, is taxable @ 12%. Original work, as defined under para 2(zs) of Notification No. 12/2017-CT (Rate) dated 28/06/2017, means all new construction involving (i) all types of additions and alterations to abandoned or damaged structures on land that are required to make them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unicipal area; and (ii) Lines of rails built in any exhibition ground, fair, park, or any other place solely for the purpose of recreation. The Railways Act, 1989, distinguishes between, but covers, Government Railway under section 2(20) and Non-Government Railway under section 2(25) of the Act. It, therefore, includes scope for railways under both Government and private administrations. 5. It is evident from the above discussion that the scope of work, as outlined in the Applicant s agreement with DVC, is that of works contract, as defined under section 2(119) of the GST Act, fit to be called an original work within the meaning ascribed to the term in para 2(zs) of Notification No. 12/2017-CT (Rate) dated 28/06/2017, and per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... han specifically provided under section 2(31)(ii) of the Railways Act, 1989. DVC a public sector undertaking - is the owner of the railway siding being built. It is meant for carriage of coal and oil fuel to RTPS. The purpose of the carriage of goods is, therefore, not recreation, but producing public goods like electricity. It is, therefore, not excluded under section 2(31)(ii) of the Railways Act, 1989. The construction of the private siding that the Applicant refers to, therefore, pertains to railways . In view of the foregoing, we rule as under RULING Construction of a private railway siding for carriage of coal and oil fuel to Raghunathpur TPS, as described in the agreement between the Applicant and DVC, is a compos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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