TMI Blog2019 (11) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... view of SAC 9997 and is chargeable at the rate of 18% GST - the Transportation services fall under the SAC 9965 and is chargeable to tax @12% but if supplier does not avail Input tax credit the GST Rate would be 5%. - Case Number 15/2019 and Order Number 14/2019 - - - Dated:- 25-9-2019 - RAJIV AGRAWAL AND MANOJ KUMAR CHOUBEY, MEMBER Present on behalf of applicant Shree Neeraj Agrawal and Shree Sanchit Agrawal,CA PROCEEDINGS (Under sub-section (4) of Section 98 of Central Goods and Service Tax Act, 2017 and the Madhya Pradesh Goods Service Tax Act, 2017) 1. The present application has been filed u/s 97 of the Central Goods and Services Act,2017 and MP Goods and services Act, 2017 (hereina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n inputs forms part of cost of generation of electricity. The electricity so generated is supplied to Madhya Pradesh Power Management Company Limited (MPPMCL) at rates determined by Madhya Pradesh Electricity Regulatory Commission (MPERC). These rates include cost of generation and reasonable return on capital. The electricity is further supplied to Distribution Companies who supply it to end consumers. Thus any increase in rate of GST on inputs directly impacts the amount billed to end customers. 3.4 For generation of electricity from thermal plants it purchases coal mainly from Coal India Limited and its subsidiaries such as WCL, SECL, NCL etc. The coal so purchased under Fuel Supply Agreements (FSA) is transported to various the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll attract individual rates of 18% and 12% respectively. However, if the transporter is not availing input tax credit then the applicable rate will be 5%. If company is liable to pay tax under Reverse Charge than the rate of GST would be 5%. 6. RECORD OF PERSONAL HEARING: 6.1 Shree Neeraj Agrawal, CA and Shree Sanchit Agrawal, CA authorized by the applicant, appeared for personal hearing and reiterated the submissions already made in the application. He reiterated the facts submitted along with the application. The Applicant states that - 6.2 MPPGCL is purchasing Run-of-Mine (RoM) coal from South Eastern Coalfields Limited for its STPS and SSTPP units. 6.3 It has placed work orders for coal transporta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration; and 6.7 Composite Supply: Section 2(30) of CGST Act 2017 (30) composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; 6.8 Mixed Supply: Section 2 (74) mixed supply means two or more individual supplies of goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. 6.9 Principal Supply: Section 2 (90) principal supply me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility to pay tax. We, therefore observe that the issue before us is squarely covered under section 97(2)(a) of the Act and therefore we admit the application for consideration. 7.3 We have given a careful consideration to the arguments adduced by the applicant and the counsel at the time of personal hearing. The applicant has argued that the services of coal beneficiation and transportation are two different services although supplied together by the supplier. The services do not fall under the purview of composite supply or mixed supply under CGST Act 2017. 7.4 Having duly considered the arguments put forth by the applicant, we are satisfied that both the services are independent of each other. The price charged by the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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