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TMI Blog2019 (3) TMI 1408X X X X Extracts X X X X X X X X Extracts X X X X ..... s Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such Appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed there under, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 The Applicant is stated to be engaged in repairing and servicing of transformers owned by WBSEDCL. He seeks a ruling on whether the said repair/se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, WBSEDCL reimburses the expense on account of transport, fire and burglary insurance. 2.2 The Applicant argues that repair/servicing of transformers is job-work as defined under section 2(68) of the GST Act, and should to be treated as supply of service in terms of para 3 of Schedule II to the GST Act. 2.3 The Applicant refers to Notification No. 5050-F(Y) dated 16/08/2017 of the Government of West Bengal. It has clarified that works involving supply of taxable goods along with labour to any movable property (e.g. servicing of motor vehicles with motor parts, AMC for computers or AC machines or generator, repair of furniture etc.) are composite supplies, as the supply of goods and labour are naturally bundled and made in conjunction wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... involves transfer of property in goods. The Applicant's contribution is, therefore, not limited to labour and skill done with the help of his own tools, gadgets or machinery. In his own admission, supply of goods constitutes major portion of the value of the supply. The process is not, therefore, job work, as defined under section 2(68) of the GST Act. 3.3 Para 6(a) of Schedule II of the GST Act refers to works contract as a composite supply. Although limited to immovable properties only, the activity of repairing is included in the definition of works contract under section 2(119) of the GST Act. In fact, repairing was treated as works contract under both Service Tax and Value Added Tax, and the treatment under the GST Act differs only s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for the treatment or process for maintenance and removal of the defects from the transformers that belong to WBSEDCL. The predominant element of the supply, therefore, is not transfer of title to the goods, but service in terms of para 3 of Schedule II to the GST Act, and supply of spare parts is ancillary to such supply. The service so supplied is classifiable under SAC 998719, being repair of transformers, and taxable under Sl No. 25(ii) of the Rate Notification, as amended from time to time. In view of the foregoing, we rule as under. RULING Repairing and servicing of transformers owned by another person is not job work as defined under section 2(68) of the GST Act. It is composite supply unless the contract specifies that the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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