TMI Blog2019 (2) TMI 1999X X X X Extracts X X X X X X X X Extracts X X X X ..... MEA to NHPC up to the stage of PWD it is an exempt supply between one government entity to other govt entity. In the present case, M/s NHPC had raised a specific query as to whether they need to pay GST on reverse charge to PWD and to that extent, the ruling was that they are not required to do so. Whether the taxability on provision of works contract will be applicable on the works contract allotted by PWD is not an issue raised in the advance ruling application, Hence, we refrain from going into specifics of the same, thus, without going into the merits, since there was no taxability till the stage of PWD on account of entry 9c of notification 12/2017 as amended time to time, so discussions and findings of the Learned AAR on this issue become irrelevant and hence infructuous and need to be set aside. - UK/AAAR/05/2018-19 - - - Dated:- 27-2-2019 - SHRI S.H HASAN AND SMT. SOWJANYA, SGST MEMBER Concerned Officer : Smt. Preeti Manral (DC Tax Review State Tax) Party Represented by : Sh. J.C. Pant Sr. Manager (Law) ORDER (Proceedings under Section 101 of the Central Goods and Service Tax Act, 2017 and Uttarakhand Goods and Service Tax Act, 2017) The pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate Authority for Advance Ruling for the state of Uttarakhand (Goods Service Tax), has filed the instant appeal on the following grounds: 1. That, the impugned order passed by Advance Ruling Authority suffers from factual inaccuracies, legal impropriety and is based on wrong conjectures and surmises. 2. National Hydro Project Corporation in short NHPC Limited is a Government of India Enterprises primarily incorporated in the year 1975 with an objective to plan, promote and organise an integrated and efficient development of hydroelectric power in all aspects. Later on NHPC expanded its objects to include development of power in all aspects through conventional and non-conventional sources in India and abroad. 3. In the pre-sent case, MEA has entrusted the project to NHPC, which in fact, is the case of delegation of Work from Superior Government Organ i.e. Ministry to another Government Organ i.e Implementing Agency . [Both MEA and NHPC are the parts/organs of Central Government]. This delegation of project has been misconstrued by AAR as AWARD of WORK CONTRACT and has thus misconstrued the NHPC as a Contractor and MEA as a Contractee, which is not the factua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors and all such sub-contractors shall also be 'covered under the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. In such a scenario, all contractors shall be exempted from the purview of GST and no question of 12% or 5% tax rate on contractors working for government department will ever arise. 7. That, in page 8 of the impugned order, Authority for Advance Ruling has held that The supply of service by M/s NHPC to Ministry of External Affairs, Govt.. of India is exempted, therefore, sub-letting of the same is also exempted . This conclusion derived by the order of AAR that the TPS, NHPC is a principal contractor and PWD as a sub-contractor of NHPC is providing exempt works contract services to Government is grossly wrong. In the instant case, NHPC does not stand in the position of a contractor in relation to MEA rather it's in the role of an implementing agency of MEA. Further, the notion of assuming PWD as contractor/sub-contractor of MEA or NHPC is also wrong. PWD by virtue of MoU becomes the partner of NHPC for implementation of project work. Hence, although 0% GST is applicable on both NHPC/PWD, contract awarded by NHPC/PWD as contractee to any contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the form of work contract by the sub-contractor will also come in the purview of exempted or 0% fails the test of strict interpretation of tax law. Thus, such extrapolations stand incorrect in the eyes of law. 10. It is further stated that the interpretation of the order exempts whole chain of supply here. That, exempting the whole chain of contractors and sub-contractors in instant case, is incorrect and against the law. Advance Ruling has a limited implication and is legally binding only on the applicant who has sought it. However, precedence may be taken in other cases to claim exemption in all the contracts awarded by PWD. PERSONAL HEARING An opportunity for personal hearing was granted to the appellant {Mrs Preeti Manral, Deputy Commissioner (Tax Review), State Tax, Dehradun} and the same was attended by her on 13.02.2019. During the course of the personal hearing Mrs. Preeti Manral reiterated the points covered in the grounds of appeal filed with the Appellate Authority vide Appeal No. UKGSTARA03/05/30.11.2018. Shri J.C. Pant, Sr. Manager (Law), appealed for personal hearing and reiterated the points made before the Advance Ruling Authority, Uttarakhand. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at since the M/s NHPC is providing Works Contract service which is exempted under notification. No. 12/2017-CT(R) dated 28.06.2017, so all the subsequent sub contracts will be also exempted. Here, we would like to make it clear that AAR ruling has a limited implication and is legally binding only on the applicant who has sought it and is specific to the questions raised by the applicant. Nothing should be read into except what has been categorically ruled in such an order. In the present case, M/s NHPC had raised a specific query as to whether they need to pay GST on reverse charge to PWD and to that extent, the ruling was that they are not required to do so. Whether the taxability on provision of works contract will be applicable on the works contract allotted by PWD is not an issue raised in the advance ruling application, Hence, we refrain from going into specifics of the same, thus, without going into the merits, we are of the view that since there was no taxability till the stage of PWD on account of entry 9c of notification 12/2017 as amended time to time, so discussions and findings of the Learned AAR on this issue become irrelevant and hence infructuous and need to be set a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
