TMI Blog2020 (10) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... f of NRL. HELD THAT:- A strip of land extending over more than a hundred kilometre is not a fixed establishment in terms of section 2(7) of the IGST Act. Location of the recipient in the present context cannot, therefore, be determined by applying the provisions under section 2(14) (b) or (c) of the IGST Act. NRL being registered and resident of India, the location of the recipient of the service shall be in India in terms of section 2(14)(d) of the IGST Act - The place of supply of the service should, therefore, be determined in terms of proviso to section 12(3)(a) of the IGST Act for carrying out the construction work of immovable property. It shall be in India, being the location of the recipient - The applicant s service will not, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 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 thereunder, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 The Government of India and The Government of Bangladesh have signed a Memorandum of Understanding for construction of an oil pipeline from Siliguri in India to the depot of the Bangladesh Petroleum Corporation (hereinafter BPC) at Parbatipur in Bangladesh. The work will be monitored by Ministry of External Affairs (hereinafter called MEA ), Government of India, which has engaged M/s Numaligarh Refinery Ltd (hereinafter called NRL ) as the imple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bject to the admissibility of the application. The application is, therefore, admitted. 2. Submissions of the Applicant 2.1 The applicant submits that the ultimate recipient of its service is BPC located in Bangladesh. NRL is merely an intermediary working on behalf of MEA. The recipient being located in Bangladesh and the place of supply being outside India, the applicant s service is export as defined under section 2(6) of the Integrated Goods and Services Act, 2017 (hereinafter IGST Act). 2.2 In its reply to the submissions of the concerned officer from the revenue, the applicant states that it is supplying works contract service. It contests the revenue s view that NRL is the recipient of the service. Without prejudice to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licant s supply as export in terms of 2(6) of the IGST Act, therefore, does not arise. 3.2 It follows that the applicant is eligible for taking credit of the input tax on the goods or services procured in India for the construction of the pipeline in Bangladesh subject to the conditions laid down in section 16 17 of GST Act. 3.3 The applicant is eligible to claim the input tax credit on the goods or services procured in Bangladesh if it pays GST on such inward supplies. The question does not arise as the applicant admittedly uses such procurement for executing the works contract in Bangladesh, and such goods and services do not cross the customs frontier of India and do not attract IGST. 3.4 As the service of the applicant is adm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... export under the GST Act. 4.6 This Authority agrees with the submissions of the revenue, as discussed in para no. 3.2 to 3.3 above, which follows once the applicant s supply of works contract service is adjudged a supply within the territory of India. 4.7 Although a public sector undertaking NRL is not a Govt Entity as defined in clause 4(x) of the Rate Notification (direct Govt participation in equity is less than 90% in NRL). The concessional rate in terms of Entry No. 3(iii)(c) of the Rate Notification is, therefore, unavailable. It will, therefore, be taxable @ 18% under Entry No. 3(xii) of the Rate Notification. Based on the above discussion, we rule as under, RULING (i) The applicant s supply is works contract serv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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