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TMI Blog2021 (4) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... condition. Nowhere in the agreement the works order were offered to M/s. NBCC(India) Ltd. differently for different works and also there is no such conditions made in the agreement to make separate invoices for separate works. The agreement clearly speaks that the project was awarded on turnkey basis. The turnkey project works executed by M/s. NBCC (India) Ltd. is an works contract in terms of clause 119 of Section 2 of CGST/OGST Act, 2017 and ought to be treated as a composite supply as per clause 30 of the Section 2 of CGST/OGST Act. Composite supply works contract are treated as a supply of service under Schedule II para 6 of the CGST/OGST Act - the decision of the Authority for Advance Ruling that the works contract entrusted to Applicant M/s. NBCC (India) Ltd. cannot be termed as composite supply, cannot be accepted. - 02/ODISHA-AAAR/Appeal/2020-21 - - - Dated:- 19-3-2021 - SHRI R. MANGA BABU, AND SHRI SUSHIL KUMAR LOHANI, MEMBER Present for the Applicant (P.H. attended through Video Conference) 1. Sri Tarun Kumar Agarwalla, C.A. BRIEF FACTS OF THE CASE: 1.0. M/s NBCC (INDIA) Limited, Plot No. G/1, NBCC Imperia, New Govt Colony, Press Chhak, Bhu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Applicant company, then whether it would be covered under 3 (vi)(a) of the said notification as the construction work is predominantly for use other than for commerce, industry or any other business of profession. Ans: Replied at para 4.10 2.5. Alternatively, whether the construction services related to sewerage project falls under clause (iii) of serial no 3 (classification code 9954) of the table in the Notification No. 11/2017-Central Tax(Rate) dated the 28th June, 2017. Ans : Yes. 2.6. Or otherwise if the works contract service is not covered under clause (vi) or clause (iii) of entry 3 of the aforesaid notification, in the facts and circumstances of the Applicant company, then what will be applicable clause under entry no. 3 and what would be the rate of GST? Ans : Replied at 4.2, 4.6 to 4.10 3.0. Aggrieved by the above mentioned ruling of the Authority for Advance Ruling, Odisha, the Applicant M/s.NBCC(India) Ltd. filed an appeal on dt.23.12.2020 before the Odisha Appellate Authority for Advance Ruling. The Applicant has paid the requisite fees of ₹ 20,000/-(₹ 10000/- CGST+₹ 10000/- SGST) through e payment in ICICI Bank L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have been entrusted to the Applicant would not make it entitled to be categorized as composite supply, particularly in terms of Section 2(30) of the CGST Act, 2017. The Applicant has been engaged as a Project Management consultancy, for which the Applicant shall be paid agency charges of 5.5% in addition to attract cost of the work. The Authority for Advance Ruling vide para 4.6 of their order, have held that, above PMC service are to be treated as Pure Service shall not qualify for concessional rate of tax as envisaged under Sl.No.3(vi) to the Notification No. 11/2017-Central Tax (rate) dt.28.06.2017. Accordingly, the Authority for Advance Ruling, finally under Para 4.10 of the order have concluded that the works entrusted to the Applicant by IIT, Bhubaneswar under contract/agreement dt.02.05.2016 cannot be termed as composite supply. 6.1. The definition of composite supply is defined in CGST/SGST Act, 2017 under Clause 30 of the Section 2, which is reproduced below; 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or part of project under Sl.No.3 of exemption notification no. 11/2017-C.T. (Rate), it is automatically construed that Authority for Advance Ruling has accepted the service as composite supply service. The service mentioned under Notification No. 11/2017-C.T. (Rate) dt.28.06.2017 of Sl.No.3 (Heading 9954) from (ii) to (vii) is only composite supply. As the Authority for Advance Ruling has extended the benefits of the concessional rate of tax specified in the notification for the major part of the work of the project, it automatically implies that they have accepted the works/services, which is rendered by M/s. NBCC (India) Ltd. to IIT, Bhubaneswar as composite supply of works contract. But under para 4.10, the Authority for Advance Ruling has held that works contract entrusted the Applicant by IIT, Bhubaneswar under contract agreement dt.02.05.2016 cannot be termed as composite supply. The above decision/observation clearly contradicts to the observation made under para 4.7. Moreover, the Authority for Advance Ruling under para 4.10 of the order has not cited cogent reasons to substantiate their findings. 6.5. On perusal of the copy of the agreement made between IIT, Bhubanesw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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