TMI Blog2020 (3) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... (zs) of Notification No. 12/2017- Central Tax (Rate) dated 28/06/2017, as amended? - HELD THAT:- The Applicant s supply is not in the nature of repair and maintenance of an existing structure, but a new construction. It involves installation, erection and commissioning of a network of interlinked equipment and structures attached to earth. It is, therefore, original work within the meaning of clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017, as amended. Whether supply to RVNL qualifies as a supply pertaining to railways, including monorail and metro? - HELD THAT:- SCADA, in the context of the Applicant s supply to RVNL, is the system that controls and monitors the electrical network of the metro, enabling the operator to issue suitable commands to be followed in the operation of the metro. Using the SCADA interface, the operator sends instructions to the Remote Terminal Unit, which accordingly controls the signals, lights and other electrical equipment of the metro. It is, therefore, a power supply and distribution network installed for the purpose of the operation of the metro. It, therefore, is a supply pertaining to railways, including metro, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... text of a metro corridor, SCADA, according to the Applicant, describes a system that controls and monitors the electrical network of the metro system and provides updated data in graphical and other forms of analysis. It also enables the operator to issue suitable commands to be followed in the operation of the metro (refer to para 14 of Annexure A of the Application). Using the SCADA interface, the operator sends instructions to the Remote Terminal Unit (R T U), which accordingly controls the signals, lights and other electrical equipment of the metro. 2.2 The Applicant refers to letter no. RVNL/KOL/EL/Metro/07/SCADA/1225 dated 22/08/2019 of RVNL awarding the contract for the supply referred to above. Scope of the supply is specified therein as below. 1. Supply, erection and commissioning of RTUs, 2. Supply, laying and connecting of the control cables from RTU to equipment, 3. Supply, erection and commissioning of UPS and batteries for RTU 4. Supply and installation of slave clocks and antenna, 5. Modification of software at OCC to accommodate new RTUs and installation of software in RTUs at Baranagar and Dakshineswar, 6. System check, testin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rulings at different states. 2.5 The Applicant submits that the works contract referred to above is original work within the meaning of clause 2 (zs) (ii) of Notification No. 12/2017 - Central Tax (Rate) dated 28/06/2017, as amended. In support of its argument, the Applicant refers to the ruling of the Authority for Advance Rulings, New Delhi, in the matter of Hyundai Rotem Company [(2016) 46 STR 801 (AAR)] = 2016 (5) TMI 455 - AUTHORITY FOR ADVANCE RULINGS under the service tax regime. 2.6 The Applicant finally submits that the supply of the above composite supply of works contract as original work to RVNL qualifies as a supply to railways and, therefore, eligible for GST under Entry 3 (v) (a) of the Rate Notification. 3. Submission of the Revenue 3.1 The concerned officer from the Revenue agrees that the Applicant s supply is a works contract and qualifies to be called original work . However, he submits that such a supply is taxable under Entry No. 3 (v) of the Rate Notification only if it is supplied to a government entity. He does not offer further comment in this regard. 4. Observations and findings of the Bench 4.1 According to Seria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefits to arise out of the land, and things attached to the earth, or permanently fastened to anything attached to the earth. Section 3 of the Transfer of Property Act, 1882 simply provides that unless there is something repugnant in the subject or context immovable property does not include standing timber, growing crops or grass. The Section, however, defines the term attached to the earth to mean (a) rooted in the earth, as in the case of trees and shrubs, (b) embedded in the earth, as in the case of walls or buildings, and (c) attached to what is so embedded for permanent beneficial enjoyment of that to which it is attached The essential character of immovable property , as emerges from the above discussion and relevant to the present context is that it is attached to the earth, or permanently fastened to anything attached to the earth, or forming pan of the land and not agreed to be severed before supply or under a contract of supply. 4.5 In Triveni Engineering Industries Ltd [(2000) 120 ELT 273 (SC)] = 2000 (8) TMI 86 - SUPREME COURT the apex court observes that while determining whether an article is permanently fastened to anyth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the GST Act. It now needs to be ascertained whether the Applicant s supply is original work within the meaning of clause 2 (zs) of Notification No. 12/2017- Central Tax (Rate) dated 28/06/2017, as amended. 4.8 Original work, as defined under clause 2 (zs) of Notification No. 12/2017-CentraI Tax (Rate) dated 28/06/2017, means all new constructions involving (i) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable, and (ii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise. The Applicant s supply is not in the nature of repair and maintenance of an existing structure, but a new construction. As already discussed, it involves installation, erection and commissioning of a network of interlinked equipment and structures attached to earth. It is, therefore, original work within the meaning of clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017, as amended. The only issue that is left for examination is whether supply to RVNL qualifies as a supply pertaining to railways, including monorail and metro. 4.9 T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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