TMI Blog2019 (3) TMI 1408X X X X Extracts X X X X X X X X Extracts X X X X ..... or the supply of the spare parts, but 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. - Case Number 04 of 2019 Order No. 47/WBAAR/2018-19 - - - Dated:- 26-3-2019 - SHRI SYDNEY D SILVA, AND SHRI PARTHASARATHI DEY, MEMBER (Constituted under section 96 of the West Bengal Goods and Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entation required for transportation of goods. However, the other questions that the Applicant has raised involve classification of the supply for the purpose of ascertaining entries specified under notifications on applicable tax rate. These questions are, therefore, admissible for advance ruling under section 97 (a) (b) of the GST Act. 1.3 The Applicant states that the questions raised in the Application have neither been decided by nor are pending before any authority under any provision of the GST Act. The officer concerned from the Revenue has raised no objection to the admission of the Application. 1.4 The Application is, therefore, admitted. 2. Submissions of the Applicant 2.1 The Applicant, according to the Applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that repair/servicing of transformers is a composite supply, where the pre-dominant nature of the contract remains that of service , classifiable as under SAC 9987, and taxable under Sl No. 25(ii) of Notification No. 11/2017 CT (Rate) dated 28/06/2017 (corresponding State Notification No. 1135 FT dated 28/06/2017), as amended from time to time, and hereinafter collectively called the Rate Notification. 3. Observations Findings of the Authority 3.1. Job work has been defined under section 2(68) of the GST Act as any treatment or process undertaken by a person on goods belonging to another registered person. Rule 2(h) of the Cenvat Credit Rules, 2004 defines job work as processing or working upon raw materials or semi-finishe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the supply remains a composite supply. The principal supply, however, depends upon the dominant element of the composite supply. 3.4 In this connection, attention may be drawn to the order dated 19/12/2018 of Maharashtra AAR in Cummins India Ltd. = 2019 (3) TMI 656 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA . While examining the nature of the supply in annual maintenance contracts (hereinafter AMC), the AAR correctly points out that the predominant intention in such AMC is to provide maintenance service for the proper upkeep of the machines belonging to the clients. Hence supply of maintenance service is the dominant intention of the contracts and can be considered as the principal supply . 3.5 Repairing and servicing of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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