TMI Blog2021 (11) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... tute a composite supply - the supply made by the applicant against the purchase order of the Integrated Coach Factory is a mixed supply and the rate of tax applicable is the highest rate of tax applicable to the particular goods constituting the mixed supply. Applying principle of Noscitur a sociis it is seen from the purchase order none of the goods supply fall under this entry. They are also not essential component without which the whole cannot function. Therefore the supplies made under the referred purchase order to Integrated Coach Factory, Chennai do not fall under entry 8607. Contract with Krishna Bhagya Jala Nigam Limited, Narayanpur Division, Hunasagi Taluk, Yadgir District in the State of Karnataka - HELD THAT:- The applicant has entered into a contract with Krishna Bhagya Jala Nigam Limited, Narayanpur Division, Hunasagi Taluk, Yadgir District in the State of Karnataka. Whereas the application is dated.28-05-2018 the contract is much later to the application i.e., 12-10-2018. Further the place of supply falls outside the State of Telangana and hence this authority cannot decide the matter. Request for clarification as to whether the scope of work can be trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment will be released for complete rake set and not for part supplies (Annexure D) The applicant is desirous of ascertaining whether their supplies made for the above purchase order amounts to composite supply or mixed supply. Further they have also entered into a contract with Krishna Bhagya Jala Nigam Limited for Design, manufacturing, supply, installation, operation and maintenance of Phase-II of SCADA and GIS based automation, for NLBC, SBC, JBC, MBC IBC canal network systems including maintenance of the system for 5 years after commissioning of the scheme on turnkey basis. The applicant is desirous of clarification as to whether the scope of work can be treated as supply of goods or works contract services and also request for the applicable rate of tax for the same. Hence this application Dt.28-05-2018. 5. Questions raised: 1. That based on the above facts they need clarification regarding their supplies as to whether they comes under composite supply or mixed supply or normal individual supply under provisions of GST Act as per purchase order. 2. Further they sought clarification as to whether all these items which are related to Locomotive parts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tive parts, a clarification may be issued as to whether all these goods fall under a single HSN code 8607 as locomotive parts by applying the end user test irrespective of the product/item description. 4. That a clarification is requested on the rate of tax applicable for these types of contracts from Indian Railways / Other type of contracts. 5. That they are executing a contract for M/s. KBJNL for design, manufacturing, supply, installation, operation and maintenance of phase 2 of SCADA and GIS based automation. They request clarification as to whether the scope of work can be treated as supply of goods or works contract services and also request for the applicable rate of tax for the same. 7. Discussion Findings: The applicant is seeking clarification on two different supplies made by them. These are discussed separately as follows: A. Queries related to Railways and Metros: As seen from the purchase orders Integrated Coach Factory, Chennai the purchase order is for set of goods enumerated in the Schedule-I / Schedule-II. The price is all inclusive and at Annexure-B HSN codes and applicable GST rates are also given. The terms of payment in Annexure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d supply is a bundled supply is not a bundled supply where the goods / services though supplied together are distinct and separately identifiable. However a supply can be a mixed supply only if it is a single price. The Hon ble High Court of Kerala in the case of Abott Health Care Pvt. Ltd., (2020) 74 GSTR 37 (Kerala) held that a composite supply must take into account supplies as affected at a given point in time on as is where is basis. Therefore a naturally bundled supply should possess the following attributes (as mentioned in Education Guide on Taxation of Services published by CBE C on 20.06.2012 at Para 9.2.4 ): a. There is a single price or the customer pays the same amount, no matter how much of the package they actually receive or use. b. The elements are normally advertised as a package. c. The different elements are not available separately d. The different elements are integral to one overall supply - if one or more is removed, the nature of supply would be affected. Further the illustration in the definition clarifies the context of composite supply. As seen from the illustration the supply of service i.e., insurance and goods go a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith Krishna Bhagya Jala Nigam Limited, Narayanpur Division, Hunasagi Taluk, Yadgir District in the State of Karnataka. Whereas the application is dated.28-05-2018 the contract is much later to the application i.e., 12-10-2018. Further the place of supply falls outside the State of Telangana and hence this authority cannot decide the matter. 8. In view of the above discussion, the questions raised by the applicant are clarified as below: Advance Ruling Question Raised Advance Ruling Issued 1. That based on the above facts they need clarification regarding their supplies as to whether they comes under composite supply or mixed supply or normal individual supply under provisions of GST Act as per purchase order. Mixed supply. 2. Further they sought clarification as to whether all these items which are related to Locomotive parts can be classified under a single HSN Code of 8607 as Locomotive parts considering the end usage of the product irrespective of product / item description. They raised a 3rd question at the time of hearing regarding a contract entered by them ..... X X X X Extracts X X X X X X X X Extracts X X X X
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