TMI Blog2019 (5) TMI 1399X X X X Extracts X X X X X X X X Extracts X X X X ..... , its creation is not for propagating any business or commercial interests of IWAI. IWAI is facilitating the vision of Government of India s Jal Marg Vikas Project for creating infrastructure for economic development of the country. The Appellant is supplying works contract services to IWAI, a government entity, for an original work that is meant for infrastructural development of waterways of India and is not meant for commerce and business. It therefore satisfies the conditions laid down under Serial No. 3 (vi) (a) of the Rate Notification. The amendment to Serial No. 3(vi) of Notification No. 11/2017-CT (Rate) dated 28/06/2017, brought about by Notification No. 24/2017-CT (Rate) dated 21/09/2017 and 31/2017-CT (rate) dated 13/10/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ti-modal IWT terminal at Haldia, West Bengal on EPC (Engineering, Procurement, Construction) basis. 3. The Appellant sought an advance ruling under section 97 of the West Bengal Goods and Services Tax Act, 2017/ the Central Goods and Services Tax Act, 2017, (hereinafter collectively referred to as the GST Act ) on the following question: (a) Applicability of Notification No. 24/2017-CT (Rate) dated 21/09/2017 and 31/2017-CT (Rate) dated 13/10/2017. (b) What rate at which GST should be charged on the works contract service supplied for construction of the a multi-modal terminal at Haldia, West Bengal. 4. The West Bengal Authority for Advance Ruling (hereinafter referred to as the WBAAR) pronounced its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al facility being developed under the contract is not predominantly for use for commerce, industry or any other business or profession but for the development of waterways and propagating an environment friendly and cost effective mode of water transport. The WBAAR erroneously interpreted the objective of the project. (iii) The WBAAR erred in its findings that the statutory fee collected by IWAI is not credited to the Consolidated Fund of India and is, therefore, not revenue but proceeds from business as defined under Section 7) of the GST Act. In this regard, the Appellant submits that the Ministry of Shipping vide its letter No. G-20017/7/2013-IWT dated 06.12.2013 gave direction that all the internal resources generated by IW ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hearing the Appellant reiterated the points as stated in Grounds of Appeal. The Respondent stated that the activities of the IWAI are for commercial purposes. 7. The matter is examined and written and oral submissions made before us are considered. 8. It has already been established by the WBAAR in its ruling that IWAI, is a Government Entity. So the moot question is whether or not the civil structures created by the Appellant are meant for commerce, industry, or any other business or profession. 9. It is clear from the very nature of the project that it creates infrastructure for commercial utilization of the national waterway. Though the Multi-modal IWT Terminal will facilitate commerce and business in and arou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
